BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 174
                                                                  Page  1

          Date of Hearing:   April 29, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                 AB 174 (Carter) - As Introduced:  January 29, 2009 

          Policy Committee:                               
          EducationVote:10-0
                                           Natural Resources                
                                                             9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill requires the county committee on school district  
          organizations to be the lead agency for the purposes of the  
          California Environmental Quality Act (CEQA) for each school  
          district reorganization petition it considers (if all districts  
          are located in the same county), unless the State Board of  
          Education (SBE) is the designated the lead agency, as specified.  
           Specifically, this bill:

          1)Requires the county superintendent of schools of the affected  
            counties to determine, by mutual agreement, which county  
            committee is designated as the lead agency for purposes of the  
            CEQA.  If an agreement is not attained within 30 days, this  
            measure requires the county committee that has the greatest  
            number of pupils under its jurisdiction affected by the  
            reorganization to be the lead agency for purposes of CEQA.  

          2)Requires the 120 day period for approving or disapproving  
            reorganization petitions to begin after certification of an  
            environmental impact report, approval of a negative  
            declaration, or a determination that the project is exempt  
            from CEQA.  

          3)Authorizes a county committee to approve a petition to form  
            one or more school districts, if the following conditions are  
            met: (a) each county superintendent of schools with  
            jurisdiction over the affected school district elects to grant  
            approval authority to the county committee on school district  
            reorganization and the county committee chooses to except this  








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            authority; (b) the governing board of each of the affected  
            school districts consents to the petition; and (c) the  
            secretary of the county committee designated as the lead  
            agency for purposes of CEQA enters into an agreement on behalf  
            of the county committee for any or all of the affected school  
            districts to share the costs of complying with CEQA.  

          4)Requires a school district reorganization petition that meets  
            the conditions described in #3 above, but is not approved by  
            the county committee, to be transmitted and heard by the SBE.   
            This measure further requires the SBE to be the lead agency  
            for CEQA is this instance, including a petition disapproved by  
            the county committee after determining the project is exempt  
            from CEQA, as specified.  

           FISCAL EFFECT  

          Potential, reimbursable mandated costs to the county  
          superintendent of schools, likely less than $50,000 annually, to  
          be designated as the lead agency for the purposes of CEQA  
          requirements.  The State Department of Education (SDE) estimates  
          it has incurred $335,000 GF in CEQA-related costs since 2004.   
          Of this amount, approximately $300,000 is related to a single  
          controversial petition to split an existing school district.   
          Likewise, because this bill requires the CSS to bear the burden  
          of CEQA costs, there will be GF administrative savings to SDE.  

           COMMENTS  

           1)Purpose  .  Existing law contains various provisions for the  
            organization and reorganization of school districts and  
            provides for a county committee to approve or disapprove  
            various aspects of the reorganization, as specified.  

            According to the SDE, it has processed 85 school district  
            reorganization proposals within the past 12 years.  Of these  
            proposals, 49 were unification proposals, 25 were proposals to  
            split existing districts, and 24 were consolidations of  
            existing high school districts into one unified district.  

            AB 780 (Cogdill), Chapter 652, Statutes of 2004, established a  
            three county pilot program that required the county committee  
            to pay the costs of compliance with CEQA provisions in the  
            case of school district reorganizations that transfer  
            territory and unification petitions.  For all other district  








                                                                  AB 174
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            reorganization petitions, CEQA costs are paid by SDE.  

            The Superintendent of Public Instruction (SPI), the sponsor of  
            the bill, argues that the current school district  
            reorganization process is costly and time consuming at the  
            state level, which leads to delays at the local level.  The  
            SPI states, "County committees review unification proposals  
            carefully before making a recommendation regarding the  
            unification to SBE.  This review includes public hearings and  
            analysis of the same conditions that are considered by the  
            SBE.  Although many unifications are locally controversial  
            (i.e., one or more districts are proposed for unification), a  
            number of unifications are supported by all parties as well as  
            by the county committee.  The SBE has never disapproved a  
            unification proposal that was supported by all affected  
            districts and the county committee."

            This bill authorizes a county committee to approve a petition  
            for school district reorganization under certain conditions.   
            This measure also requires the county committee to be  
            designated the lead agency for the purposes of CEQA.  

           2)CEQA  requires local lead agencies to certify the completion of  
            an environmental impact report on a project they intend to  
            carry out or approve that may have a significant adverse  
            effect on the environment. The local lead agency may approve a  
            negative declaration, if it finds that the project will not  
            have a significant adverse effect, and may approve a mitigated  
            negative declaration if it finds that project revisions would  
            avoid or mitigate the effect. 

           3)Previous legislation  .  AB 2243 (Carter) was vetoed in  
            September 2008, with the following "generic" veto message: 
           
             "The historic delay in passing the 2008-2009 State Budget has  
            forced me to prioritize the bills sent to my desk at the end  
            of the year's legislative session. Given the delay, I am only  
            signing bills that are the highest priority for California.  
            This bill does not meet that standard and I cannot sign it at  
            this time." 

           Analysis Prepared by :    Kimberly Rodriguez / APPR. / (916)  
          319-2081