BILL ANALYSIS                                                                                                                                                                                                    






                         SENATE COMMITTEE ON EDUCATION
                              Gloria Romero, Chair
                           2009-2010 Regular Session
                                        

          BILL NO:       AB 1080
          AUTHOR:        Skinner
          AMENDED:       July 9, 2009
          FISCAL COMM:   No             HEARING DATE:  July 15, 2009
          URGENCY:       No             CONSULTANT:Kathleen Chavira

           NOTE  : This bill was previously heard by this Committee on  
          July 8, 2009, and no vote was taken.  It has since been  
          amended to delete its prior contents and to incorporate  
          staff recommended amendments reflected in the prior  
          analysis.  This analysis has been updated to reflect those  
          amendments.

           SUBJECT  :  Joint Occupancy
          
           SUMMARY  

          This bill expands current law by adding local governmental  
          agencies to the list of entities with which a school  
          district may enter into leases and agreements for joint  
          occupancy of facilities.

           BACKGROUND  

          Current law authorizes any school district to enter into  
          leases and agreements relating to real property and  
          buildings to be used jointly by the district and any  
          private person, firm, or corporation and to be occupied  
          jointly by the district and the prescribed entities.  The  
          district must own a site upon which a building to be used  
          by the district and private person, firm, or corporation is  
          to be constructed and must comply with the provisions of  
          law relating to the selection and approval of sites.  The  
          district is authorized to let any real property it owns to  
          any private person, firm, or corporation and construct a  
          building for the joint use of the school district and the  
          private person, firm, or corporation during the term of  
          such an agreement.  Title to the portion of the building  
          occupied by the private person, firm, or corporation must  
          remain the personal property of the private party during  
          the term of the lease, but title to the portion of the  




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          building to be occupied by the districts must vest in the  
          district. Current law limits the term of such a lease or  
          agreement to no more than 66 years.  The proposal must be  
          submitted to and approved by the State Board of Education  
          prior to entering into any lease or contract under these  
          provisions.  

           ANALYSIS
           
           This bill  expands current law by adding local governmental  
          agencies, as defined in Government Code, to the list of  
          entities with which a school district may enter into leases  
          and agreements for joint occupancy of facilities.

           STAFF COMMENTS  

           1)   Recent amendments  . In a prior version of the bill, the  
               Emery Unified School District would have been  
               explicitly and exclusively granted the authority to  
               enter into a joint-use, joint-ownership agreement with  
               a governmental agency.  This bill was recently amended  
               to respond to concerns raised by this committee that  
               granting this authority to one district created the  
               potential for a unique advantage over other districts  
               when competing for limited joint-use funds. As  
               amended, this bill adds local governmental agencies to  
               existing provisions of law regarding joint occupancy,  
               thereby addressing the needs of the Emery Unified  
               School District while ensuring that no unique  
               authority or advantage is inadvertently granted. 
           
           2)   Why  ?  The author states that this bill is necessary  
               because current law is based on a traditional joint  
               use model, and doesn't allow for stronger  
               co-partnership/ownership and multifaceted use of  
               facilities.  Under joint use provisions, agreements  
               are limited to five-year terms. Joint occupancy  
               provisions authorize leases and agreements for up to  
               66 years, but do not currently include local  
               governmental agencies.  

               According to the author, the City of Emeryville, the  
               Emery Unified School District (District), and the  
               Emeryville Chamber of Commerce have been in  
               partnership developing the Emeryville Center of  
               Community Life (Center) for the past six years.  The  




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               Center is envisioned as a joint occupancy facility  
               providing educational and community oriented services  
               to students and community members throughout the  
               entire day.  Services, programs and facilities are  
               expected to include a 7th through 12th grade middle  
               and high school, an elementary school campus, a  
               district administration building, a health, wellness  
               and social service center, an art workshop and  
               performance space, parenting center, and indoor and  
               outdoor recreation facilities for both students and  
               community members, as well as teen afterschool  
               programs to promote public safety.  According to the  
               author, the Center envisioned will need a facility  
               that allows for the flexibility to integrate school,  
               city, and agency uses, as City and District facilities  
               will be integrated through the physical structure of  
               the Center, with no clear delineation in the building  
               plans between school property and city property.

           3)   Funding  .  It is the desire of the City and the School  
               District that the Center be jointly owned to leverage  
               both city and federal redevelopment funds for the  
               construction of the facility.  According to the  
               co-sponsor, the City of Emeryville, the majority of  
               the funds (60 percent) for construction of the  
               facilities will come from local redevelopment agency  
               funds, local education bond and/or city bond bonds.     
               The District also expects to apply for funds under the  
               School Facility Joint Use Program.

           4)   School Facility Program Joint-Use  .  Under the School  
               Facility Program (SFP), a school district may receive  
               a grant to fund a joint-use project if the district  
               complies with specified requirements.  Proposition 47  
               (2002) and Proposition 55 (2004) each provided $50  
               million for joint use projects.   In addition,  
               Proposition 1D (2006) provided $29 million for  
               joint-use projects.

               Title to all property acquired, constructed or  
               improved with funds made available under the SFP must  
               be held by the school district to which the board  
               grants the funds (Education Code 17070.70).  Although  
               the Emeryville District contends that it meets the  
               requirements for and intends to apply for joint use  
               funds under the School Facility Program for this  




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               project, it is unclear whether the joint occupancy  
               agreement for the facility for which the District  
               intends to apply for funding will meet title  
               requirements and be eligible for SFP joint-use  
               funding.

           SUPPORT  

          None received on this version.

           OPPOSITION

           None received.