BILL ANALYSIS                                                                                                                                                                                                    






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

          BILL NO:       SB 305
          AUTHOR:        Corbett
          AMENDED:       April 13, 2009
          FISCAL COMM:   Yes            HEARING DATE:  April 29, 2009
          URGENCY:       No             CONSULTANT:Kathleen Chavira

           SUBJECT  :  Seismic Mitigation of School Facilities

           SUMMARY  

          This bill establishes in statute (rather than regulation,  
          as is the case under existing law) the specific technical  
          criteria that must be met by a building in order to qualify  
          as a "most vulnerable Category 2 building," and to be  
          eligible for funding under the state Seismic Mitigation  
          Program. 

           BACKGROUND  

          AB 300 (Corbett, Chapter 622, Statutes of 1999) required  
          the Department of General Services (DGS) to conduct a  
          seismic safety inventory of California's K-12 school  
          buildings.  In 2002, DGS and the Division of the State  
          Architect released the report "Seismic Safety Inventory of  
          California Schools."  The report identified 7,537 buildings  
          that were of 12 construction types, collectively known as  
          Category 2 construction that would not perform well in an  
          earthquake.

          Current law establishes the School Facility Program (SFP)  
          under which the state provides general obligation bond  
          funding for various school construction projects, including  
          new construction, modernization, joint-use facilities, and  
          programs to specifically address the construction needs of  
          overcrowded schools, charter schools, and career technical  
          education facilities.  Proposition 1D, (AB 127, Nunez,  
          Chapter 35, Statutes of 2006), passed by voters in November  
          2006, among other things, provided up to $199.5 million for  
          seismic mitigation of school facilities that are the most  
          vulnerable Category 2 buildings (as defined in the report  
          submitted pursuant to AB 300) and that pose an unacceptable  




                                                                SB 305
                                                                Page 2



          risk of injury to students during a seismic event.  

           ANALYSIS
           
          This bill establishes the specific technical criteria which  
          must be met by a building in order to qualify as a "most  
          vulnerable Category 2 building" and to be eligible for  
          funding under the state Seismic Mitigation Program.




           STAFF COMMENTS  

           1)   Similar legislation .  This Committee recently heard SB  
               375 (Hancock) which required the State Allocation  
               Board (SAB), among other things, to review regulations  
               and criteria for funding eligibility and to adopt new  
               regulations for apportioning funds provided under the  
               Seismic Mitigation Program (SMP).  This Committee  
               amended SB 375 to remove these provisions and to allow  
               the SAB the opportunity to fully consider the policy  
               implications of the proposed changes prior to adopting  
               new regulations.  SB 375 passed this Committee by a  
               vote of 7-0 and it is currently awaiting action in the  
               Senate Appropriations Committee.    

           2)   What is the problem  ? The SAB adopted regulations for  
               the implementation of the Seismic Mitigation Program  
               (SMP) which became effective in April 2008.  These  
               regulations establish the specific Category 2  
               construction types, specify ground shaking factor  
               criteria, require building occupancy by students and  
               teachers, and require districts to submit a structural  
               engineering report identifying building deficiencies  
               in order to be eligible for this funding. As of March  
               2009, only two buildings with a total estimated  
               retrofitting cost of $14 million were determined to  
               meet the requirements to qualify for state funding  
               under the SMP.  This bill reduces the ground shaking  
               factor threshold and places this criterion, along with  
               other existing regulatory provisions for determining  
               eligibility for the SMP, in statute, in order to  
               increase the number of districts which may be eligible  
               for this funding. 
           




                                                                SB 305
                                                                Page 3



          3)   Related SAB activity  .   At its March 2009 meeting, the  
               State Allocation Board (SAB), cognizant of the limited  
               participation in the SMP, reviewed several policy  
               options for facilitating the distribution of these  
               funds to eligible districts.  Modification of  
               eligibility criteria, such as ground shaking factors  
               and construction types, were acknowledged as issues  
               that could be addressed via the regulatory process by  
               the SAB.  At its April 2009 meeting, the SAB was  
               presented with extensive analysis of the impact of  
               lowering the ground shaking factor on demand for the  
               SMP funds and staff indicated that while additional  
               analysis was necessary, staff would be prepared to  
               make a recommendation on this matter by the May 2009  
               SAB meeting.  

           4)   Regulation vs. statute  . The regulatory process  
               generally provides the flexibility to an administering  
               agency to modify a program as necessary in response to  
               changing conditions, new information, or other  
               concerns that might arise. What are the consequences  
               of eliminating that flexibility in this case?   Is it  
               prudent to place such technical criteria in statute?   
               Regulations generally undergo extensive review and  
               discussion by districts and other interested parties  
               prior to coming before the SAB.  It appears that such  
               a process has been initiated, and that the change  
               proposed by this bill is already under consideration  
               by the SAB.   Should the statutory change proposed by  
               this bill be advanced without the extensive review and  
               discussion by districts and other interested parties  
               that generally occur prior to the development of  
               regulations for consideration by the State Allocation  
               Board (SAB)?  

           SUPPORT  

          None received.

           OPPOSITION

           None received.