BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 2235
          Author:   Buchanan (D), et al.
          Amended:  8/18/14 in Senate
          Vote:     27 - Urgency


           SENATE EDUCATION COMMITTEE  :  5-0, 6/18/14
          AYES:  Liu, Block, Correa, Hancock, Monning
          NO VOTE RECORDED:  Wyland, Huff

           SENATE GOVERNANCE & FINANCE COMMITTEE  :  6-0, 6/25/14
          AYES:  Wolk, Knight, Beall, DeSaulnier, Liu, Walters
          NO VOTE RECORDED:  Hernandez

           SENATE APPROPRIATIONS COMMITTEE  :  5-0, 8/14/14
          AYES:  De León, Hill, Lara, Padilla, Steinberg
          NO VOTE RECORDED:  Walters, Gaines

           ASSEMBLY FLOOR  :  75-0, 5/28/14 - See last page for vote


           SUBJECT  :    Kindergarten-University Public Education Facilities  
          Bond Act of 2014

           SOURCE  :     Author


           DIGEST  :    This bill makes changes to the existing School  
          Facility Program and authorizes the Kindergarten-University  
          Public Education Facilities Bond Act of 2014 to provide for the  
          issuance of $4.3 billion in general obligation (GO) bonds for  
          construction and modernization of education facilities (to  
          become effective only if approved by voters), and requires its  
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          submission to voters at the November 4, 2014, statewide general  
          election.

           ANALYSIS  :    The last statewide GO bond, Proposition 1D was  
          approved by voters in November 2006.  AB 127 (Núñez and Perata,  
          Chapter 35, Statutes of 2006), the Kindergarten-University  
          Public Education Facilities Bond Act of 2006, authorized the  
          $10.4 billion bond proposal, which provided $7.3 billion of this  
          amount for K-12 education facilities and $3.087 billion for  
          higher education facilities.

          Of the $7.3 billion provided  for K-12 education facilities  
          specified amounts from the sale of these bonds were allocated  
          for modernization, new construction, charter schools, career  
          technical education facilities, joint use, projects for new  
          construction on severely overcrowded schoolsites, and high  
          performance incentive grants to promote energy efficient designs  
          and materials.  In addition, portions of the amounts allocated  
          for new construction and modernization were authorized for  
          purposes of funding smaller learning communities and high  
          schools and for seismic retrofit projects.

          Of the amount provided for higher education facilities, $1.5  
          billion was provided for Community College facilities, $890  
          million was provided for the University of California (of which  
          $200 million was provided for capital improvements for medical  
          education programs, with an emphasis on telemedicine) and $690  
          million was provided for the California State University.

          This bill establishes the Kindergarten-University Public  
          Education Facilities Bond Act of 2014 to provide for the  
          issuance of $4.3 billion in GO bonds for construction and  
          modernization of education facilities, to take effect only if  
          approved by voters.  More specifically it:

          1.Requires submission of the Act to voters at the November 4,  
            2014, statewide general election.

          2.Provides for issuance of $4.3 billion as follows:

             A.   Provides $1.23 billion for new construction projects.

             B.   Provides $2.47 billion for modernization school facility  
               projects.

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             C.   Provides $600 million for purposes of education  
               facilities for California's public segments of higher  
               education and of this amount:

                (1)     Provides $200 million for California Community  
                  Colleges.

                (2)     Provides $200 million for the California State  
                  University.

                (3)     Provides $200 million for the University of  
                  California and the Hastings College of Law.

          1.Authorizes the State Allocation Board (SAB) to require a  
            school district that elects to participate in the new  
            construction or modernization program funded by the proceeds  
            of the bond established by the provisions of this bill to  
            reestablish eligibility pursuant to SAB adopted regulations.   
            These recommendations shall propose revisions to any  
            regulations that limit the ability of school districts to use  
            new construction grants to construct instructional space  
            approved by the Department of Education (CDE), as specified.

          2.Requires SAB assign priority for funding under to applicant  
            school districts that demonstrate participation in a  
            community-based effort to coordinate educational,  
            developmental, family, health, and other comprehensive  
            services by engaging in public and private partnerships with  
            local public entities and other nonprofit or private community  
            partners, as specified.

          3.Requires the Office of Public School Construction, in  
            consultation with CDE, to recommend regulations to the SAB  
            that provide school districts with flexibility in designing  
            instructional facilities.

          4.Requires the SAB to require a school district that elects to  
            participate in the new construction program to conduct an  
            inventory of existing facilities and submit this information  
            to the SAB, as prescribed by the SAB for purposes of  
            maintaining a statewide school facilities inventory.

          5.Requires an applicant who receives a new construction grant  

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            ensure that the project incorporates designs and materials  
            that promote the efficient use of energy and water, the  
            maximum use of natural lighting and indoor air quality, the  
            use of recycled materials and materials that emit a minimum of  
            toxic substances, the use of acoustics conducive to teaching  
            and learning, and other characteristics of high performance  
            schools.

          6.Makes various technical changes.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

           Bonds:  $4.3 billion in state GO bond obligations.   
            Substantial state costs, likely in the high hundreds of  
            millions to low billions of dollars, in bond interest over 30  
            years (General Fund).

           Administration:  Substantial new workload for CDE and the  
            Department of General Services.  The level of new work would  
            differ in degree depending on whether the current acknowledged  
            projects remain on the funding list or would have to be  
            reviewed again, the size of the bond, and whether the bond  
            administration program mirrors that of Proposition 1D.  CDE  
            estimates that it could need up to four additional personnel  
            years.   The Department of General Services estimates that its  
            Office of Public School Construction will require 16  
            additional personnel years in 2014-15 and 87 personnel years  
            in 2015-16, and its Division of the State Architect will need  
            up to 10 personnel years.  All of these positions will likely  
            be bond-funded.

           Ballot costs:  Likely $1.6 million - $2 million (General Fund)  
            for a 16-page supplemental ballot.  That cost may potentially  
            be reduced if other measures are included in the supplemental  
            ballot.

           SUPPORT  :   (Verified  8/21/14)

          Superintendent of Public Instruction Tom Torlakson
          BSK Associates
          Butte County Office of Education

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          Cabrillo Community College
          California Apartment Association
          California Association of School Business Officials
          California Association of Sheet Metal and Air Conditioning  
          Contractors' National Association
          California Association of Suburban School Districts
          California Building Industry Association
          California Chamber of Commerce
          California Federation of Teachers
          California School Boards Association
          California School Employees Association
          California State Association of Electrical Workers
          California State Pipe Trades Council
          California State PTA
          California State University
          California Teachers Association
          California Workforce Association
          Central Valley Education Coalition
          Central Valley Higher Education Consortium
          Chaffey Community College District
          Chico Unified School District
          Citrus College
          City of Dublin
          Coalition for Adequate School Housing
          College of the Desert
          College of the Redwoods
          Community College Facility Coalition
          Community College League of California
          Contra Costa County Office of Education
          County School Facilities Consortium
          Dougherty + Dougherty Architects LLP
          El Dorado County Office of Education
          Elk Grove Unified School District
          Foothill-De Anza Community College District
          Fresno Unified School District
          Glendale Community College District
          Higgin + Cartozian Architects, Inc.
          Imperial County Office of Education
          John Swett Unified School District
          Kern Community College District
          Kern County Superintendent of Schools
          KNA Consulting Engineers
          Lake Tahoe Community College
          Long Beach Community College District

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          Los Angeles Community College District
          Los Angeles County Office of Education
          Los Angeles County Superintendent of Schools
          Los Angeles Unified School District
          Los Rios Community College District
          MAAS Companies, Inc.
          Madera County Office of Education
          Martinez Unified School District
          Merced Community College District
          Merced County Office of Education
          Monterey County Office of Education
          Monterey Peninsula Community College District
          Napa County Office of Education 
          Orange County Business Council
          Palm Springs Unified School District
          Palos Verdes Peninsula Unified School District
          Paramount Unified School District
          Pasadena City College
          Peralta Community College District
          PlaceWorks
          PMSM Architects
          Public Advocates
          Rainforth Grau Architects
          Rancho Santiago Community College District
          Regional Asthma Management and Prevention
          RGM and Associates
          Rio Hondo Community College District
          Riverside Community College District
          Riverside County Superintendent of Schools
          San Benito County Office of Education
          San Bernardino Community College District
          San Bernardino County District Advocates for Better Schools
          San Diego County Superintendent of Schools Dr. Randy Ward
          San Diego Unified School District
          San Francisco Unified School District
          San Leandro Unified School District
          San Luis Obispo County Office of Education
          Santa Ana Unified School District
          Santa Barbara County Office of Education 
          Santa Clara County Office of Education 
          Santa Clarita Community College District
          Santa Cruz County Office of Education 
          Saramark, Inc.
          School Air

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          School Employers Association of California
          School Energy Coalition
          Sierra College
          Siskiyou Joint Community College District
          Small School Districts' Association
          Solano Community College District
          Sonoma County Office of Education
          South Orange County Community College District
          St. Helena Unified School District
          State Building and Construction Trades Council, AFL-CIO
          State Center Community College District
          Stockton Unified School District
          Terraphase Engineering, Inc.
          Tracy Unified School District
          Twin Rivers Unified School District
          University of California
          Visalia Unified School District
          West Hills Community College District
          West Kern Community College District
          Western States Council of Sheet Metal Workers
          William S. Hart Union High School District
          Wiseburn School District
          Yosemite Community College District
          Yuba Community College District

           ARGUMENTS IN SUPPORT  :    According to the author, this bill is  
          necessary because, despite declining enrollment in some  
          districts, there is projected future pupil enrollment growth in  
          many districts and we will need new schools to house those  
          students.  In addition, school districts are working to  
          rehabilitate aging facilities to ensure they are safe and  
          updated.  Bond funds are not only critical and beneficial to  
          schools; they are beneficial to the economy, as these  
          infrastructure dollars will generate thousands of  
          construction-related jobs.  According to the author, while prior  
          bond authorizations have proposed funding for a number of  
          special grant programs, this bill, in an effort to keep the  
          bonds at a low to moderate level, proposes to fund only the  
          basic programs of new construction, modernization, and charter  
          schools.

           ASSEMBLY FLOOR  :  75-0, 5/28/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  

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            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dababneh, Daly, Dickinson, Eggman, Fong, Fox, Beth Gaines,  
            Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray, Grove,  
            Hagman, Hall, Harkey, Roger Hernández, Holden, Jones,  
            Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,  
            Medina, Melendez, Mullin, Muratsuchi, Nazarian, Nestande,  
            Olsen, Pan, Patterson, Perea, John A. Pérez, V. Manuel Pérez,  
            Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Salas,  
            Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski,  
            Wilk, Williams, Yamada, Atkins
          NO VOTE RECORDED:  Dahle, Donnelly, Frazier, Mansoor, Vacancy


          PQ:e  8/21/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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