BILL ANALYSIS �
AB 1664
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ASSEMBLY THIRD READING
AB 1664 (Hagman)
As Amended April 22, 2014
Majority vote
EDUCATION 7-0 APPROPRIATIONS 17-0
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|Ayes:|Buchanan, Olsen, Ch�vez, |Ayes:|Gatto, Bigelow, |
| |Gonzalez, Nazarian, | |Bocanegra, Bradford, Ian |
| |Weber, Williams | |Calderon, Campos, |
| | | |Donnelly, Eggman, Gomez, |
| | | |Holden, Jones, Linder, |
| | | |Pan, Quirk, |
| | | |Ridley-Thomas, Wagner, |
| | | |Weber |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Authorizes a school district to offer to sell or lease
property to another school district, a county office of education
(COE), or a governmental agency that provides child care and
development services, prior to selling or leasing a schoolsite to a
city, park or recreation district, or any regional park authority,
if a charter school has not accepted an offer to purchase or lease a
schoolsite and if the schoolsite was purchased with or modernized
with, or on which improvements were constructed that were funded
with, any moneys from a state school facilities funding program
(SFP). This bill also makes technical, conforming amendments.
FISCAL EFFECT : According to the Assembly Appropriations Committee,
negligible fiscal impact.
COMMENTS : The construction and modernization of public kindergarten
through grade 12 (K-12) facilities are funded by a combination of
state and local general obligation (G.O.) bonds, local assessments,
and developer's fees. Since the inception of the SFP in 1998,
voters have approved $35.4 billion in state G.O. bonds for K-12
schools.
The SFP provides 50% of eligible state education bond funds for the
construction of new schools and 60% for the modernization of school
facilities. Districts considered "financial hardship districts"
receive up to 100% of eligible grant funds. The SFP also provides
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funds to acquire schoolsites and supplemental funds for specified
purposes, such as for meeting fire code, for multilevel
construction, hazardous waste removal, and others.
Existing law requires school districts to establish routine
facilities accounts and deferred maintenance accounts, and requires
proceeds from the sale of property to stay in capital facilities or
maintenance funds to ensure that districts protect and maintain
their facilities. School districts can also sell surplus property
and use the funds for one-time general fund expenditures under
specified conditions.
When selling or leasing surplus property, school districts are
required to first offer, until July 1, 2016, the property to a
charter school with at least 80 units of average daily attendance.
After charter schools, there are a number of separate provisions
that specify priorities for selling or leasing real property,
including offering the real property to an entity that will use the
property for the delivery of child care and development services,
park or recreational purposes, or offer the property for sale or
lease at fair market value to specified entities, including state
and local governments and agencies.
Existing law, under Education Code Section 17489, commonly known as
the "Naylor Act," requires a school district to offer any or all
portion of property used for a school playground, playing field or
other outdoor recreational purposes and open space, to the following
entities in order of priority:
1)A charter school.
2)Any city within which the land is located.
3)Any park or recreation district within which the land is located.
4)Any regional park authority having jurisdiction within the area in
which the land is located.
5)Any county within which the land may be situated.
Existing law prohibits the cost from exceeding the cost of
acquisition, adjusted by a cost of living factor, plus the cost of
any improvements made to the open-space portion of the property.
The entity that purchases or leases the property must maintain the
property for playground, playing field, or other outdoor
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recreational and open-space uses.
This bill inserts in the Naylor Act the authority for a school
district to offer open-space property to a school district, COE or a
governmental agency that provides child care and development
services, prior to offering the property to a city, park or
recreation district, regional park authority or a county, if the
school district had constructed, modernized, or made improvements on
the property using state bond funds.
According to the author's office, this bill is intended to prevent
school districts complying with the Naylor Act from having to return
state bond funds pursuant to legislation, AB 308 (Hagman), Chapter
496, Statutes of 2013, enacted last year.
AB 308 authorizes the State Allocation Board, a 10 member board that
allocates and administers the SFP and state bond funds, to establish
a process whereby a school district, COE or a charter school that
sells real property that was purchased with, modernized with, or on
which improvements were constructed that were funded with, any state
bond funds within 10 years before the property is sold, must return
the portion received from the state, if the funds are not used for
capital outlay purposes. Property sold to a charter school, a
school district, a COE or an agency that will use the property for
child care and development services is exempted from the requirement
to return funds to the state.
According to the author, a school district complying with the Naylor
Act by selling open-space property to a city, county, or park
authority would be required to return the amount received from state
bond funds, if the property is sold within 10 years after receipt of
state bond funds. By authorizing school districts to sell the
property to another local educational agency or a governmental
agency that provides child care and development services prior to
offering the property to the entities specified under the Naylor
Act, the property would remain with an educational institution and
the school district would not be required to return state bond
funds. If the property is sold or leased to one of the entities
prescribed in the bill, the entities would be required to maintain
the property as open space, consistent with the Naylor Act.
Analysis Prepared by : Sophia Kwong Kim / ED. / (916) 319-2087
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