BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 715


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          715 (Daly)


          As Amended  June 23, 2015


          Majority vote


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          |ASSEMBLY:  |72-3  |(May 22, 2015) |SENATE: |38-0  |(June 25, 2015)  |
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          Original Committee Reference:  ED.


          SUMMARY:  Specifies that for the purpose of calculating  
          developer fees levied by school districts for the construction  
          or reconstruction of school facilities, a walkway that is not  
          considered "assessable space" can be covered or uncovered.


          The Senate amendments delete the provision specifying that a  
          detached accessory structure includes a detached bike storage  
          locker.


          FISCAL EFFECT:  None.  This bill is keyed non-fiscal by the  
          Legislative Counsel.


          COMMENTS:  Background.  Prior to the enactment of SB 50  
          (Greene), Chapter 407, Statutes of 1998, which established the  
          School Facility Program (SFP), developers were assessed a  
          mitigation fee of $1.50 per square foot of livable space for  








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          each newly constructed house.  This fee provided a share of the  
          funds needed for the construction of schools to accommodate new  
          pupils expected to be served as a result of the new development.  
           In addition to this fee, local governments also had the  
          authority, confirmed by the courts through litigation popularly  
          known as the Mira, Hart and Murrieta line of cases, to require  
          developers to pay for additional school-related expenses as  
          identified in local environmental impact reports.  


          SB 50 established the current School Facility Program and  
          changed the method for determining the share of school  
          construction costs that developers would pay, which provided  
          consistency in the amount of fees developers pay to build  
          schools to accommodate new developments.  SB 50 suspended the  
          threat of lawsuits and the ability of local governments to deny  
          new developments on the basis of inadequate schools.  


          SB 50 established three levels of fees.  Level I is the  
          mitigation fee based on the square footage of a residential or  
          commercial structure.  SB 50 increased the pre-SB 50 fee from  
          $1.50 to $1.93 per square foot with an inflation adjustment  
          every two years according to the class B construction index as  
          determined by the State Allocation Board, the body that  
          allocates state bond funds and oversees the administration of  
          the SFP, at its January meeting.  The fee is currently at $3.36  
          per square foot for residential construction and $0.54 per  
          square foot for commercial/industrial construction, and is  
          assessed if the district conducts a Justification Study that  
          establishes the connection between the development coming into  
          the district and the assessment of fees to pay for the cost of  
          the facilities needed to house future students.   Levels II and  
          III are based on availability of state bond funds.  The  
          developer fee amounts are based on the state grant levels for  
          Level II and twice the state grant levels for Level III.   


          Assessable space.  SB 50 defined "assessable space" for  
          residential construction as all of the square footage within the  
          perimeter of a residential structure.  SB 50 excluded any  
          carport, walkway, garage, overhang, patio, enclosed patio,  








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          detached accessory structure, or similar area. Current law  
          specifies what is "assessable," not what is "livable" versus  
          "nonliveable."  Current law does not specify what is assessable  
          as the perimeter within an "apartment unit" but the perimeter of  
          a "residential structure."  


          What does this bill do?  This bill, sponsored by the California  
          Apartment Association, makes changes to the areas that are  
          excluded in the calculation of the fees by specifying that a  
          walkway can be covered or uncovered.


          "Assessable space" is determined by a city or county building  
          department and the fee must be determined and paid to a school  
          district before a building permit is issued.  According to the  
          author's office, the intent of the bill is not to expand  
          excluded areas, but to provide some level of clarification and  
          consistency.  Because the law is not specific, building  
          departments throughout the state have different interpretations  
          of what is assessable.    


          Walkways.  Current law specifies that what is assessable  
          includes the area "within" the perimeter of a residential  
          building.  It is up to city or county building departments to  
          determine which areas "within" the perimeters are counted,  
          commonly in accordance with California building standards  
          practices.  While walkways outside an exterior wall or a door  
          are not counted, a hallway or walkway inside a residential  
          structure is counted.  According to the author, this bill is  
          intended to clarify that walkways may be covered or uncovered  
          and is not intended to affect hallways inside the perimeter of a  
          residential building.  


          Financing school facilities.  SB 50 not only standardized the  
          amount and levels of developer fees, this bill also established  
          a funding program that relies on a partnership between the  
          state, through state bond funds; local communities, through  
          local bond funds; and developers, through developer fees.  The  
          last statewide bond was passed in November 2006.  Funds for the  








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          construction of new schools and the modernization of existing  
          facilities were exhausted in 2012.  The Governor, in his 2015-16  
          Budget, proposes to decrease the level of state funding  
          substantially and increase local contributions by adjusting the  
          tax rates for local bonds and modifying developer fees by  
          consolidating the three levels into one fee at a level between  
          Level II and Level III, subject to local negotiation.  School  
          districts express a concern that with the lack of state bond  
          funds, now is not the time to adjust the fees.      


          Analysis Prepared by:                                             
                          Sophia Kwong Kim / ED. / (916) 319-2087  FN:  
          0001086