BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  SB 1380|
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                                 THIRD READING


          Bill No:  SB 1380
          Author:   Hancock (D)
          Amended:  4/28/10
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  7-0, 4/21/10
          AYES:  Romero, Huff, Alquist, Hancock, Liu, Simitian,  
            Wyland
          NO VOTE RECORDED:  Maldonado, Price

           SENATE APPROPRIATIONS COMMITTEE  :  10-0, 5/17/10
          AYES:  Kehoe, Cox, Alquist, Corbett, Denham, Leno, Walters,  
            Wolk, Wyland, Yee
          NO VOTE RECORDED:  Price


           SUBJECT  :    Career technical education facilities

           SOURCE  :     Author


           DIGEST  :    This bill adds new requirements and conditions  
          to be met by districts that apply for and receive Career  
          Technical Education Facilities Program (CTEFP) funding, and  
          requires the California Department of Education to review  
          and make recommendations on specified elements of the  
          CTEFP.

           ANALYSIS  :    Existing law establishes the Career Technical  
          Education Facilities Program (CTEFP) as part of the Leroy  
          F. Greene School Facilities Act of 1998 for the purpose of  
          providing funding to qualifying local educational agencies  
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          for constructing new facilities or reconfiguring existing  
          facilities, including purchasing equipment with an average  
          useful life expectancy of at least 10 years, to enhance  
          educational opportunities for pupils in existing high  
          schools.  

          This bill:

          1.Requires school facilities constructed or modernized with  
            specified bond funds set aside for career technical  
            education purposes to be used for career technical  
            education purposes for a minimum of 25 years. 

          2.Requires a school district to provide certification  
            regarding that use to the Office of Public School  
            Construction during the first year of occupation and  
            every five years thereafter.

          3.Requires school districts applying for a career technical  
            grant to include teachers of career technical education  
            and members of the local career technical education  
            advisory committee in the design and planning process  
            leading to the submission of an application that is a  
            request for full funding or a reservation of funds.

          4.Authorizes up to 10 percent of the funds provided for  
            equipment to be used for the purchase of items or  
            equipment with a life expectancy of at least five years.

          5.Requires the School Facilities Planning Division of the  
            California Department of Education to review the  
            reservation of funds aspect of the program, make  
            recommendations to facilitate timely use of state bond  
            funds, and submit the findings and recommendations to the  
            State Allocation Board by December 31, 2011.

           Background

          Proposition 1D  .  AB 127 (Nunez and Perata), Chapter 35,  
          Statutes of 2006, the Kindergarten-University Public  
          Education Facilities Bond Act of 2006, authorized  
          Proposition 1D, a statewide general obligation bond  
          proposal for $10.4 billion.  Proposition 1D, approved by  
          the voters in November 2006, provided $7.3 billion for K-12  







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          education facilities and allocated specified amounts from  
          the sale of these bonds for modernization, new  
          construction, charter schools, career technical education  
          facilities, joint use projects for new construction on  
          severely overcrowded schoolsites, and high performance  
          incentive grants to promote energy efficient designs and  
          materials.  In addition, portions of the amounts allocated  
          for new construction and modernization were authorized for  
          purposes of funding smaller learning communities and high  
          schools and for seismic retrofit projects.
           
          Career Technical Education Facilities Program  .  Proposition  
          1D established the CTEFP within the School Facility Program  
          (SFP) and provided $500 million for school districts and  
          joint powers authorities to construct or modernize  
          facilities and to purchase equipment with an average useful  
          life expectancy of at least 10 years for career technical  
          education programs at existing high schools.  Current law  
          requires a school district to contribute from local  
          resources a dollar amount equal to the amount of the state  
          grant provided and authorizes the contribution to come from  
          private industry groups, the school district, or a joint  
          powers authority.  Local agencies may enter into a loan  
          agreement with the Office of Public School Construction to  
          cover their share of the project costs.  Grants are  
          calculated on a square foot basis, with a maximum of $3  
          million for each new facility and $1.5 million for each  
          modernization project purpose.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions             2010-11             2011-12          
              2012-13             Fund

           25-year minimum use            Reduction in bond pressure    
                            Bond*

          Reporting                                    $50 to $75,  
          one time                           Bond*







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          *Proposition 1D

           SUPPORT  :   (Verified  5/19/10)

          Beaumont Unified School District
          California Business Education Association
          California Space Authority
          Clovis Unified School District
          El Dorado Union High School District
          Rialto Unified School District
          Rocklin Unified School District
          San Dieguito Union High School District
          Sierra County Office of Education
          Tracy Unified School District

          ARGUMENTS IN SUPPORT  :    According to the author's office,  
          this bill addresses some of the concerns about the current  
          career technical education facilities and equipment  
          program.  The author's office believes that "it is  
          important to help set the stage for future School Facility  
          Bonds to ensure that we provide for a substantial  
          facilities and equipment grant for Career Technical  
          Education.  To do so in a thoughtful manner, we must  
          carefully look at the Proposition 1D program to guide how  
          we define the parameters for CTE grants in the future."


          CPM:cm  5/19/2010   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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