BILL ANALYSIS Ó AB 1557 Page 1 ASSEMBLY THIRD READING AB 1557 (Mathis) As Amended May 11, 2016 Majority vote ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Education |7-0 |O'Donnell, Olsen, | | | | |Kim, McCarty, | | | | |Santiago, Thurmond, | | | | |Weber | | | | | | | | | | | | ------------------------------------------------------------------ SUMMARY: Adds "a recreational youth sports league that charges participants no more than a nominal fee" to the list of organizations subject to the Civic Center Act. Defines a "nominal fee" as an average of no more than $60 per month. FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the Legislative Counsel. COMMENTS: Background. The Civic Center Act requires the AB 1557 Page 2 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. In 2012, SB 1404 (Hancock), Chapter 764, authorized, until AB 1557 Page 3 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 no more than a nominal fee, defined as 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 intended to be covered by the AB 1557 Page 4 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. 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. Analysis Prepared by: Sophia Kwong Kim / ED. / (916) 319-2087 FN: 0002926