BILL ANALYSIS Ó AB 1557 Page 1 Date of Hearing: May 4, 2016 ASSEMBLY COMMITTEE ON EDUCATION Patrick O'Donnell, Chair AB 1557 (Mathis) - As Amended April 26, 2016 SUBJECT: School facilities: use by nonprofit youth organizations SUMMARY: Adds "a recreational youth sports league that charges participants an average of no more than $60 per month" to the list of organizations subject to the Civic Center Act. EXISTING LAW: 1)Establishes the Civic Center Act at each public school facility and grounds where school-based organizations and councils, parent teacher associations, external and community organizations may engage in supervised recreational activities and hold meetings. Authorizes the governing board of a school district to grant the use of school facilities or grounds upon the terms and conditions the governing board deems proper for various purposes. (Education Code (EC) Section 38131) 2)Requires the governing board of a school district to authorize the use of any school facilities or grounds under its control to nonprofit organizations, and clubs or associations organized to promote youth and school activities, including, but limited to: 1) Girl Scouts, Boy Scouts, Camp Fire, Inc.; AB 1557 Page 2 2) parent-teachers' associations; and 3) school-community advisory council. Authorizes the governing board to charge an amount not to exceed its direct costs for use of its school facilities based on an adopted policy specifying which activities shall be charged a fee. (EC Section 38134(a)) 3)Requires the governing board to charge an amount at least equal to the district's direct costs for use of school facilities or grounds by a church or religious denomination and fair rental value for entertainments or meetings where admission fees are charged or contributions are solicited and the net receipts are not expended for the welfare of the pupils of the district or for charitable purposes. (EC Section 38134(d)(e)) 4)Defines "fair rental value" as direct costs to the school district plus the amortized costs of the school facilities or grounds used for the duration of the activity authorized. (EC Section 38134(g)) 5)Defines "direct costs" as those costs of supplies, utilities, janitorial services, services of any other district employees, and salaries paid school district employees necessitated by the organization's use of the school facilities and grounds of the district. (EC Section 38134) 6)Until January 1, 2020, authorizes the governing board of a school district to charge the share of the costs for maintenance, repair, restoration, and refurbishment, proportional to the use of nonclassroom space and grounds, defined as playing fields, athletic fields, track and field venues, tennis courts, and outdoor basketball courts. (EC Section 38134(g)) FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the Legislative Counsel. AB 1557 Page 3 COMMENTS: Background. The Civic Center Act requires the governing board of a school district to authorize the use of any school facilities or grounds under its control to nonprofit organizations, and clubs or associations organized to promote youth and school activities, including, but limited to, the Girl Scouts, Boy Scouts, Camp Fire, Inc., parent-teachers' associations; and a school-community advisory council. Existing law also authorizes a school district to charge a fee for the use of facilities or ground. Governing boards are required to adopt a policy specifying the type of activities that require a fee; however, existing law also specify parameters, including: 1)A governing board may charge an organization using the facilities or grounds for youth sports league activities an amount not to exceed the district's direct costs; 2)A governing board must charge a religious organization or church an amount at least equal to the district's direct costs for use of facilities or grounds for religious service; and, 3)A governing board must charge fair rental value in the case of entertainments or meetings where admission fees are charged or contributions are solicited and the net receipts are not expended for the welfare of the pupils or for charitable purposes. "Direct costs" is defined as the share of the costs of supplies, utilities, janitorial services, and salaries of district employees required to facilitate an organization's use of the facilities or grounds. "Fair rental value" is defined as the school district's direct costs plus the amortized costs of school facilities or grounds. AB 1557 Page 4 In 2012, SB 1404 (Hancock), Chapter 764, Statutes of 2012, authorized, until January 1, 2020, school districts to charge a proportional amount for the maintenance, repair, restoration and refurbishment for the use of non-classroom space and school grounds, defined as playing fields, athletic fields, track and field venues, tennis courts, and outdoor basketball courts, in addition to the school district's direct costs. SB 1404 exempted classroom-based programs that operate after school, including, but not limited to, after school programs, tutoring programs or child care programs, and organizations serving pupil populations during the core school day from the maintenance fee. Purpose of the bill. According to the author, "Non-profit after school programs have been closing their doors due to the over burdensome costs of renting school facilities - some schools charging up to $3,000 per use of their field." Under current law, classroom-based programs that operate after school, including after school programs, are exempted from the additional maintenance fee for the use of athletic fields, playing fields, etc. Current law, however, allows school districts to charge fair rental value for gatherings where a fee is charged and the proceeds are not used for the welfare of the pupils of the school district or for charitable purposes. It is unclear whether the programs cited by the author were charged direct costs or fair rental value. This bill will make it clear that a recreational youth sports league that charges participants an average of no more than $60 per month are to be assessed direct costs rather than fair rental value. This does not mean that the fee is a monthly charge - only that the fee is equivalent to an average of no more than $60 per month. For example, a recreational youth league that charges a flat fee of $240 and lasts four months will meet the definition of nominal fee, but a fee of $240 for three months will not. The fee is used to differentiate between sports league that are local and community-based and those that are competitive. According to the author's office, the programs AB 1557 Page 5 intended to be covered by the bill are programs that are run by volunteers, are local, do not pay coaches, and may be affiliated with local high schools. They charge only a nominal fee to pay for necessities, such as uniforms, equipment, facilities, snack bars, and trophies, compared with competitive sports teams that may charge thousands for participation, pay coaches, and travel outside a region for competitions. Staff recommends an amendment to define "an average of no more than $60 per month" as a "nominal fee." Replace the language in the bill with the following: "A recreational youth sports league that charges participants a nominal fee. "Nominal fee" means an average of no more than sixty dollars ($60) per month." Prior related legislation. SB 1404 (Hancock), Chapter 764, Statutes of 2012, authorizes, until January 1, 2020, school districts to charge a proportional amount for the maintenance, repair, restoration and refurbishment for the use of non-classroom space and school grounds, defined as playing fields, athletic fields, track and field venues, tennis courts, and outdoor basketball courts, in addition to the school district's direct costs. REGISTERED SUPPORT / OPPOSITION: Support American Youth Soccer Organization (prior version) AB 1557 Page 6 California Alternative Payment Program Association (prior version) California College and University Police Chiefs Association (prior version) California State Alliance of YMCAs (prior version) California State PTA (prior version) Opposition Association of California School Administrators (prior version) Los Angeles Unified School District (prior version) Small School Districts' Association Analysis Prepared by:Sophia Kwong Kim / ED. / (916) 319-2087 AB 1557 Page 7