BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1557


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          ASSEMBLY THIRD READING


          AB  
          1557 (Mathis)


          As Amended  May 11, 2016


          Majority vote


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          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Education       |7-0  |O'Donnell, Olsen,     |                    |
          |                |     |Kim, McCarty,         |                    |
          |                |     |Santiago, Thurmond,   |                    |
          |                |     |Weber                 |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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          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  








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          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  








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          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  








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          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