BILL ANALYSIS �
AB 2164
Page 1
Date of Hearing: March 27, 2012
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Marty Block, Chair
AB 2164 (Dickinson) - As Introduced: February 23, 2012
SUBJECT : Community college facilities.
SUMMARY : Authorizes a California Community College (CCC)
district to expend funds for capital outlay working drawings and
construction after receiving final project proposal approval
from the CCC Chancellor's Office (CCCCO), and allows these funds
to be reimbursed through a Legislative appropriation and project
approval from the Department of Finance (DOF) and the State
Public Works Board (SPWB).
EXISTING LAW prohibits any state agency, including the
University of California, the California State University, and
CCC, from expending funds for capital outlay until DOF and SPWB
have approved preliminary plans for the project to be funded
from a capital outlay appropriation.
FISCAL EFFECT : Unknown
COMMENTS : Purpose of this bill . According to the author, the
state has not passed a statewide education bond since 2006.
State funds for CCC facilities have either been spent or are
otherwise committed to projects currently in process. There are
currently over 80 CCC facilities that have been approved by the
CCC Board of Governors (BOG), but have been put "on hold"
pending a state bond. Under current law, because of the
prohibition against projects started by a CCC being reimbursed
after the passage of a statewide bond, a CCC district may have
the ability to use local funding to start a project but is
reluctant to do so. This bill would authorize CCC districts to
begin projects with existing funds and still be eligible for
reimbursement for costs incurred upon the passage of a statewide
bond.
Similar authority . This bill would provide CCC districts with
reimbursements for construction costs similar to authority
currently provided to other local agencies. AB 672 (Bass),
Chapter 463, Statutes of 2009, authorized agencies responsible
for administering Proposition 1B programs to enter agreements
with local agencies, providing an assurance that the funds
AB 2164
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expended for a Proposition 1B transportation project that had
been programmed but for which funds had not yet been allocated
would be eligible for future reimbursement from bond proceeds.
Similarly, AB 20xxx (Bass), Chapter 21, Statutes of 2009,
authorized local agencies to use federal economic stimulus funds
to prevent a project from stopping without jeopardizing their
eligibility to retain their commitment of bond funds from the
state. Committee staff understands that similar practices
through the State Allocation Board authorize K-12 districts to
receive reimbursement from subsequent bond funds for costs
incurred in capital outlay.
BOG approval process . This bill is intended to require projects
eligible for reimbursement to have received Final Project
Proposal (FPP) approval from the CCC BOG. The CCCCO capital
outlay program requires CCC districts to annually submit project
proposals to the CCCCO in two parts; the Initial Project
Proposal (IPP), which requires a three-page concept paper
submitted in July, and the FPP, which requires a complete
proposal with justification and budget detail. After evaluating
IPPs, the CCCCO notifies CCC districts to develop and submit
FPPs. Upon receipt (in February of the following year) and
subsequent review of FPPs, in addition to reviewing CCC
districts five-year capital outlay plans and previously-approved
projects, the CCCCO prepares a preliminary list of "new start"
projects eligible for scope approval by the BOG. The BOG
reviews the list at the July meeting, and once analysis is
complete, the final list is placed as an action item on the
September BOG agenda for project scope approval.
The BOG has adopted priority funding categories to give
preference to projects that meet the following priorities:
Expand campuses appropriately to meet enrollment demands
Modernize aging facilities
Meet the space utilization standards found in the California
Code of Regulations, Title 5
Leverage state funds with local funds to provide facilities at
the least cost to the state
Arguments in support . Several CCC districts support this bill,
arguing that this proposal will enable districts to fast track
projects that are critical to the CCC educational and job
training mission, will help CCC districts jump start their local
economies by putting people to work on construction projects
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that would otherwise not move forward at this time, and save the
state money by allowing CCC districts to lock in construction
contracts at current costs.
Suggested Amendments . Consistent with the author's stated
intent, Committee staff recommends the following amendments:
13332.11(a)(2)(D) Amounts incurred by a community college
district, after the date of final project proposal approval by
the California Community Colleges Board of Governors
Chancellor's Office, for working drawings and construction .
Amounts incurred pursuant to this subparagraph may be reimbursed
pursuant to an appropriation by the Legislature of funds for
preliminary plans, working drawings, and construction and
project approval by the Department of Finance and the State
Public Works Board.
REGISTERED SUPPORT / OPPOSITION :
Support
Antelope Valley Community College District
Chief Executive Officers of the California Community Colleges
Desert Community College District
Los Rios Community College District
Peralta Community College District
San Jose/Evergreen Community College District
South Orange County Community College District
Yosemite Community College District
West Kern Community College District
West Valley-Mission Community College District
Opposition
None on File
Analysis Prepared by : Laura Metune / HIGHER ED. / (916)
319-3960