BILL ANALYSIS �
AB 1748
Page 1
ASSEMBLY THIRD READING
AB 1748 (Fong)
As Introduced February 17, 2012
Majority vote
HIGHER EDUCATION 9-0
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|Ayes:|Block, Olsen, Achadjian, | | |
| |Brownley, Fong, Galgiani, | | |
| |Lara, Miller, Portantino | | |
| | | | |
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SUMMARY : Removes the limitation that the fair market value of
specified short-term leases not exceed $25,000 annually, for
California Community College (CCC) district buildings or space
not being used for educational purposes.
EXISTING LAW exempts certain lease arrangements from the general
provisions regarding the lease and sale of CCC district
property, including CCC district property that is not needed for
educational activities, if it is leased for a period of more
than five days but less than five years and the fair market
value of the lease does not exceed $25,000 annually. CCC
district governing boards seeking to enter into the
aforementioned negotiated lease are required to include the
proposed lease and methodology used to determine the value of
the lease as an agenda item in a public meeting, and provide one
week public notice before taking action on the lease agreement.
FISCAL EFFECT : Unknown. This bill has been keyed non-fiscal by
the Legislative Counsel.
COMMENTS : This bill authorizes CCC districts to enter into
negotiated short-term lease agreements for property not needed
for educational purposes and generate fair market value for that
property, not subject to the $25,000 annual limitation.
Existing law authorizes CCC districts to enter into leases for
longer-terms or greater than $25,000 annually but requires a
public bid process that accepts the highest responsible bid.
The author argues that the current cap of $25,000 on short-term
leases was put into place almost 20 years ago and does not take
into account differences in property value throughout the state
AB 1748
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or increase in value over time. Further, multiple years of
budget cuts and increasing demand for higher education have left
CCC districts needing to maximize alternative revenue sources.
By relieving CCC districts of the $25,000 cap on short-term
leases this bill will provide districts greater ability to
increase revenues through leasing unused buildings and space.
Analysis Prepared by : Laura Metune / HIGHER ED. / (916)
319-3960
FN: 0003206