BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 405
                                                                  Page  1

          Date of Hearing:   May 3, 2011

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Marty Block, Chair
                    AB 405 (Solorio) - As Amended:  April 6, 2011
           
          SUBJECT  :   Public postsecondary education: joint-use facilities.

           SUMMARY  :   Establishes the California Community College Joint 
          Use Program to support the creation of joint-use facilities on 
          community college campuses.   Specifically,  this bill  :  

          1)Requires the California Community Colleges (CCC) Board of 
            Governors to establish and govern the California Community 
            College Joint Use Program to support the creation of joint-use 
            facilities on CCC campuses, and requires the program:

             a)   Be established upon the availability of funding,

             b)   Align with established facilities regulations,

             c)   Be used exclusively for new or renovated facilities or 
               both, and,

             d)   Be governed by a joint-use agreement between a CCC 
               governing body and a third-party public agency, as 
               specified.

          2)Authorizes a CCC district to enter into a lease or agreement 
            with a K-12 school district.

           EXISTING LAW  :

          1)Authorizes a CCC district to enter into a lease or agreement 
            with a city, county, or city and county for the joint 
            occupancy, or a private education institution for its sole 
            occupancy, of the real property and buildings of the district, 
            as specified, provided the joint occupancy does not interfere 
            with the educational program of any school or class conducted 
            upon the property.  (Education Code � 81420, 81422)

          2)Authorizes the sale of state general obligation bonds to fund 
            CCC facilities, including construction of existing or new 
            campuses, their respective off-campus centers, and joint use 
            and intersegmental facilities.  �AB 127, Nunez and Perata, 








                                                                  AB 405
                                                                  Page  2

            Chapter 35, Statutes of 2006 (EC � 101034.5)]

           FISCAL EFFECT  :   Unknown

           COMMENTS  :    Background  .  CCC districts have the responsibility 
          to maintain, renew, and enlarge the facilities at their 
          institutions on behalf of the students they serve.  In order to 
          accomplish these objectives, the CCC districts are authorized to 
          issue commercial paper and to seek local and state financing for 
          their facilities.  In addition to these local efforts, the 
          state's capital outlay program provides voter-approved statewide 
          general obligation bonds through grants to fund capital outlay 
          projects on CCC campuses.  CCC districts submit projects to the 
          CCC Chancellor's Office to be included in the CCC Capital Outlay 
          Plan, which is submitted to the Legislature for approval as part 
          of the annual budget process.  The CCC Chancellor's office 
          evaluates district projects based on the following funding 
          priorities:

          1)Health and safety: no more than 50% of total available funds.
          2)Growth-instructional space: 50% of remaining funds after 
            funding health and safety projects.
          3)Modernize-instructional space: 25% of remaining funds after 
            funding health and safety projects.
          4)Complete campus:  15% of remaining funds after funding health 
            and safety projects.
          5)Growth-instructional support: 5% of remaining funds after 
            funding health and safety projects.
          6)Modernize-instructional support: 5% of remaining funds after 
            funding health and safety projects.

           Need for this bill  .  According to the author, "The three current 
          joint use facilities programs operated by the Office of Public 
          School Construction and the California Department of Education 
          are only available to projects located on kindergarten to grade 
          12 (K-12) school district campuses.  While K-12 school districts 
          have a dedicated funding stream available to them for joint use 
          projects, community college districts do not.  Additionally, the 
          types of projects that are most conducive to joint use 
          facilities, such as recreation fields and community auditoriums, 
          receive low priority in the traditional Community College state 
          facilities program. Despite growing public interest, with 
          limited financial resources community college districts often 
          cannot finance or build new college facilities that maximize the 
          efficiency offered by joint use projects.  Joint use projects 








                                                                  AB 405
                                                                  Page  3

          create real savings for the state and local communities, 
          benefiting community college districts, cities, schools 
          districts, and taxpayers."

           CCC joint-use facilities  .  CCC districts operate joint-use 
          facilities with numerous municipal and educational entities.  
          The most recent survey (2009) by the CCC Chancellor's Office 
          found that CCC districts operate 59 joint-use facilities, 
          including 20 partnerships with K-12 school districts.

           Bond funds have been expended  .  The last statewide general 
          obligation bond, Proposition 1D, was approved by voters in 
          November 2006.  AB 127, the Kindergarten-University Public 
          Education Facilities Bond Act of 2006, authorized the $10.4 
          billion bond proposal, which provided $7.3 billion of this 
          amount for K-12 education facilities and $3.087 billion for 
          higher education facilities.  Of this amount, $1.5 billion was 
          provided for CCC facilities, $890 million was provided for the 
          University of California, and $690 million was provided for the 
          California State University.  Bond funds are allocated through 
          the budget process in accordance with the segments' five-year 
          capital facility plans.  All Proposition 1D higher education 
          facilities funds have been apportioned.  

           Related legislation  .  AB 822 (Block), which is pending in this 
          Committee, would authorize a higher education general obligation 
          bond.  AB 331 (Brownley), which is pending in the Assembly 
          Education Committee, states legislative intent to authorize a 
          K-University general obligation bond.  AB 220 (Brownley, 2009), 
          which was held in the Senate, would have authorized the 
          Kindergarten-University Public Education Facilities Bond Act of 
          2010, to provide for the issuance of $6.1 billion in general 
          obligation bonds.  SB 271 (Ducheny, 2009), which was held in the 
          Senate Appropriations Committee, would have authorized the 
          Higher Education Facilities Bond Act of 2010 to fund the 
          construction and modernization of higher education facilities.  

           REGISTERED SUPPORT / OPPOSITION :   

           Support 
           
          California Community College League

           Opposition 
           








                                                                  AB 405
                                                                  Page  4

          None on file.

           
          Analysis Prepared by  :    Sandra Fried / HIGHER ED. / (916) 
          319-3960