BILL ANALYSIS �
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THIRD READING
Bill No: AB 1664
Author: Hagman (R)
Amended: 4/22/14 in Assembly
Vote: 21
SENATE EDUCATION COMMITTEE : 7-0, 6/18/14
AYES: Liu, Wyland, Block, Correa, Hancock, Huff, Monning
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 76-0, 5/27/14 - See last page for vote
SUBJECT : School facilities: sale or lease of real property
SOURCE : Author
DIGEST : This bill modifies the Naylor Act to authorize a
school district to offer open-space property to a school
district, county office of education or a governmental entity
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
purchased, constructed, modernized, or made improvements on the
property using state bond funds, and makes other related and
conforming changes.
ANALYSIS : Existing law establishes the School Facility
Program (SFP) under which the state provides general obligation
bond funding for various school construction projects.
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Existing law authorizes, until January 1, 2016, a school
district to deposit the proceeds from the sale of surplus real
property, together with any personal property located on the
property, purchased entirely with local funds into the general
fund of the school district and authorizes the school district
to use the proceeds for any one-time general fund purpose.
Existing law authorizes the State Allocation Board (SAB) to
establish a program that requires a school district, county
office of education, or charter school that sells real property
to return any state funds that were provided to purchase the
property or on which improvements were constructed if the real
property was purchased, or the improvements were constructed or
modernized on the real property within 10 years before the real
property is sold, and if the proceeds from the sale of the real
property are not sold to a charter school, school district,
county office of education or an agency that will use the
property exclusively for the delivery of child care and
development services.
Existing law, 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. Until, July 1, 2016, 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 requires that the cost not exceed the cost of
acquisition, adjusted by a cost of living factor, plus the cost
of any improvements made to open-space portion of the property.
Under these provisions, the entity that purchases or leases the
property is required to maintain the property for playground,
playing field, or other outdoor recreational and open-space
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uses.
This bill:
1. Modifies the Naylor Act to authorize a school district to
offer open-space property to a school district, county office
of education or a governmental entity 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 purchased,
constructed, modernized, or made improvements on the property
using state bond funds.
2. Continues to require, under the Naylor Act, that until July
1, 2016, a school district first offer a school site for sale
or lease to a charter school that has submitted a written
request to the district to be notified of surplus property
offered for sale or lease, and that at the time of the offer
has projections of at least 80 units of in-district average
daily attendance for the following fiscal year.
3. Makes a clarifying and conforming cross reference to
provisions regarding the return of state bond funds if a
county office of education, school district, or charter
school sells real property that was purchased, constructed
upon or modernized using state bond funds within the prior 10
years.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/27/14)
California Charter Schools Association Advocates
Riverside County of Education
OPPOSITION : (Verified 6/27/14)
Coalition for Adequate School Housing
ARGUMENTS IN SUPPORT : 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
recently enacted legislation, AB 308 (Hagman, Chapter 93,
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Statute of 2013). According to the author's office, a school
district complying with the Naylor Act by selling open-space
property to a city, county, or park authority will be required,
under provisions established by AB 308, to return the amount
received from state bond funds, if the property is sold within
10 years after receipt of state bond funds. This bill makes
conforming changes to Naylor Act provisions within the Education
Code to authorize a school district to sell the property to
another local educational agency or a child care and development
agency, prior to offering the property to the entities specified
under the Naylor Act. With these changes, the property could
remain with an educational institution and the school district
will not be required to return state bond funds.
ARGUMENTS IN OPPOSITION : The Coalition for Adequate School
Housing opposes this bill and writes, "This bill would add
school districts, county offices of education, and child care
agencies as specified public entities to which surplus property
must first be offered. Presumably the bill intends to achieve
consistency with the provisions of AB 308, regarding the return
of state SFP dollars used to purchase a site that is sold within
ten years of purchase.
"Our opposition is based on our assertion that school districts
are adequately able to manage their assets under the current
statute. Current Education Code and Government Code provisions
regarding disposition and prioritization of surplus properties
by K-12 school districts are complex and can cause confusion.
However, we do not believe AB 308 and the Naylor Act are in
conflict, and we caution against adding to statutory complexity
by making further changes."
ASSEMBLY FLOOR : 76-0, 5/27/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez,
Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,
Maienschein, Mansoor, Medina, Melendez, Mullin, Muratsuchi,
Nazarian, Nestande, Olsen, Pan, Perea, John A. P�rez, V.
Manuel P�rez, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas,
Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk,
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Williams, Yamada, Atkins
NO VOTE RECORDED: Patterson, Quirk-Silva, Skinner, Vacancy
PQ:d 7/2/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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