BILL ANALYSIS �
AB 2164
Page 1
ASSEMBLY THIRD READING
AB 2164 (Dickinson)
As Amended April 24, 2012
Majority vote
HIGHER EDUCATION 9-0 APPROPRIATIONS 17-0
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|Ayes:|Block, Olsen, Achadjian, |Ayes:|Fuentes, Harkey, |
| |Brownley, Fong, Galgiani, | |Blumenfield, Bradford, |
| |Lara, Miller, Portantino | |Charles Calderon, Campos, |
| | | |Davis, Donnelly, Gatto, |
| | | |Hall, Hill, Lara, |
| | | |Mitchell, Nielsen, Norby, |
| | | |Solorio, Wagner |
| | | | |
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SUMMARY : Creates an additional exception to a provision
prohibiting funds appropriated for a California Community
College (CCC) capital outlay project from being expended until
the Department of Finance (DOF) and the State Public Works Board
(SPWB) have approved preliminary plans for that project and the
Legislature has provided an appropriation, as specified.
Specifically, this bill :
1)Allows a CCC district to be reimbursed, pursuant to an
appropriation, for district funds previously expended for
preliminary plans, working drawings and/or construction for a
capital outlay project pursuant to:
a) Approval of preliminary plans by the CCC Board of
Governors (BOG), DOF, and the SPWB; and,
b) An appropriation by the Legislature, in the annual
budget bill or related legislation, of funds for one or
more of the following project phases: preliminary plans;
working drawings; construction; equipment. Any amounts to
be reimbursed shall be subject to the Legislature's
determination of the appropriate scope and cost of the
project.
2)Sunsets these provisions on January 1, 2018.
EXISTING LAW prohibits any state agency, including the
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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 : According to the Assembly Appropriations
Committee, no direct fiscal impact. This bill could result in a
reallocation of state funding among CCC capital outlay projects,
but longstanding practice generally has been to consider and to
appropriate funds in the annual budget only for those CCC
projects previously approved by the BOG and proposed by the
governor.
COMMENTS : The author notes that a statewide education bond has
not been authorized by the voters since 2006, and state bond
funds for CCC facilities have either been spent or are otherwise
committed to projects currently in process. Over 80 CCC
projects have been approved by the BOG but are on hold pending a
new state bond. Due to the statutory prohibition against
projects started with local funds being reimbursed by the state,
a CCC district may be reluctant to start a project even though
it has the ability to do so. This bill authorizes CCC districts
to begin projects with local funds and still be eligible for
reimbursement, through an appropriation by the Legislature of
state funds, provided the project has been approved by the BOG,
DOF, and the SPWB.
In support, several CCC districts argue that this proposal will
enable them to fast-track projects critical to their educational
and job training mission, will help jump start their local
economies, and will save the state funds by locking in
construction contracts sooner amidst the current, favorable bid
climate.
Other public entities have used this authority. 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
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 20 X3 (Bass), Chapter 21, Statutes of 2009-10
Third Extraordinary Session, authorized local agencies to use
federal economic stimulus funds to prevent a project from
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stopping without jeopardizing their eligibility to retain their
commitment of bond funds from the state. The Assembly Higher
Education Committee 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.
Analysis Prepared by : Sandra Fried / HIGHER ED. / (916)
319-3960
FN: 0003337