BILL ANALYSIS                                                                                                                                                                                                    �






                          SENATE COMMITTEE ON EDUCATION
                                 Carol Liu, Chair
                            2013-2014 Regular Session
                                         

          BILL NO:       AB 1906
          AUTHOR:        Wilk
          INTRODUCED:    February 19, 2014
          FISCAL COMM:   Yes            HEARING DATE:  June 4, 2014
          URGENCY:       No             CONSULTANT:Kathleen Chavira

           SUBJECT  :  Community College Property.
          
           SUMMARY  

          This bill, until January 1, 2022, expands the definition of  
          "direct costs," for purposes of determining the amount a  
          community college governing board may charge for the use of  
          its facilities or grounds, under the Civic Center Act. 

           BACKGROUND  

          Current law, known as the "Civic Center Act" declares that at  
          every community college there is a civic center where the  
          governing board of the community college district may grant  
          various organizations, clubs, and associations, some of which  
          are specified, the opportunity to engage in supervised  
          recreational activities and meet and discuss subjects  
          pertaining to the interests of the citizens of the  
          communities in which they reside.  

          The community college district governing board is authorized  
          to set terms and conditions for this use of college  
          facilities or grounds, and some conditions are specified in  
          statute. In addition, the governing board is authorized to  
          charge specified organizations and activities an amount not  
          to exceed the costs of opening and closing facilities,  
          providing for a college employee's presence during the  
          facilities use, janitorial services, and utilities, as  
          specified.

          For more general uses, the governing board is authorized to  
          charge an amount not to exceed its "direct costs" or not to  
          exceed "fair rental value" of college facilities and grounds  
          under its control.  







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          Current law defines "direct costs" as costs of supplies,  
          utilities, janitorial services, services of any other  
          district employees, and salaries paid school district  
          employees necessitated by the organization's use of the  
          community college district's facilities/grounds.  Current law  
          defines "fair rental value" as the direct costs to the  
          colleges plus the amortized costs of the facilities or  
          grounds used for the duration of the authorized activity.

          The governing board is required to charge fair rental value  
          in the following specified cases:
                 When the district authorizes the use of college  
               facilities or grounds by any church or religious  
               organization for the conduct of religious services, as  
               specified.

                 In the case of entertainments or meetings where  
               admission is charged or contributions are solicited, and  
               the receipts are not expended for the welfare of the  
               college's students.  (Education Code � 82537- 82548)

           ANALYSIS
           
           This bill  :

          1)   Expands the definition of "direct costs," until January  
               1, 2022, which a community college district is  
               authorized to charge for the use of its facilities and  
               grounds under the Civic Center Act to include:

                    a)             The share of the costs, as  
                    specified, to operate and maintain school  
                    facilities or grounds proportional to the use of  
                    the facilities or grounds by the entity using them.

                    b)             The share of the costs for  
                    maintenance, repair, restoration and refurbishment,  
                    proportional to the use of the facilities (defined  
                    as nonclassroom space) or grounds (defined as  
                    including but not limited to playing fields,  
                    athletic fields, track and field venues, tennis  
                    courts, and outdoor basketball courts) by the  
                    entity using them.








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          2)   Prohibits the application of share of costs to  
               classroom-based programs that operate after school hours  
               including but not limited to after school programs,  
               tutoring programs, or child care programs, or to  
               organizations retained by the college or district to  
               provide instruction or instructional activities to  
               students during school hours. 

          3)   Requires creation of a special fund for deposit of funds  
               collected pursuant to the bill's provisions and  
               prohibits the use of these funds for purposes other than  
               those prescribed under the Civic Center Act.

          4)   Requires the California Community College (CCC)  
               Chancellor's Office to develop, and the Board of  
               Governors (BOG) to adopt, regulations to be used by  
               local governing boards to determine the proportionate  
               share and the specific allowable costs that may be  
               included as direct costs for the bill's purposes.

          5)   Sunsets these provisions on January 1, 2022.

           STAFF COMMENTS  

           1)   Intent of the bill  .  As of January 1, 2013, and until  
               January 1, 2020, school districts are authorized to  
               charge an entity that uses school facilities or grounds,  
               an amount for maintenance, repair, restoration, and   
               refurbishment, proportional to the entity's use of the  
               school facilities or grounds, pursuant to provisions  
               established by SB 1404 (Hancock, Chapter 764, Statutes  
               of  2012). According to the author, it is the intent of  
               this bill to mirror these provisions for California  
               Community Colleges to ensure parity between the school  
               and community college districts.

           2)   Does the argument still hold  ?  The Civic Center Act  
               (Act) was enacted ostensibly to ensure public access to  
               publicly funded facilities for purposes that benefit the  
               community. While current law provides for the recoup of  
               costs related to the use of the buildings/grounds, the  
               transfer of maintenance and repair costs to non-profit  
               and community organizations for their use of these  
               publicly funded facilities was not envisioned by the  







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               Act. SB 1404 (Hancock) was enacted in 2012 in  
               recognition of the state's fiscal condition, and its  
               potential effect on the ability of school districts to  
               meet the original intent of the Act.  The sunset on the  
               provisions of SB 1404 were intended to ensure that the  
               public could continue its use of these publicly funded  
               facilities but, as the state's fiscal condition  
               improved, that the original intent of the Act would  
               ultimately be honored.  

               This bill grants California Community College (CCC)  
               districts the authority to transfer specified costs to  
               non-profit and community organizations until January 1,  
               2022.  Although the sunset date appears to be patterned  
               after the seven years established for K-12 districts,  
               the original intent of the sunset on SB 1404 was to  
               allow flexibility until economic conditions improved.  
               For 2014-15, the Governor and Legislature have proposed,  
               and it appears that the CCC will receive, anywhere  
               between $148 million and $199.3 million for deferred  
               maintenance.  Does the same need to authorize expanded  
               authority to transfer costs for facilities/grounds use  
               still exist?

               If it is the desire of the committee to expand the  
               definition of "direct costs" which a community college  
               may charge for some period of time, rather than stagger  
               the end dates of the expanded authority, and in light of  
               the state's improving fiscal condition, staff recommends  
               the bill be amended to sunset the CCC provisions on  
               January 1, 2020, consistent with the sunset on the K-12  
               school district authority.  

           SUPPORT  

          Chief Executive Officers of the California Community Colleges  

          College of the Canyons
          Kern Community College District
          Los Angeles Community College District
          Napa Valley College
          South Orange County Community College District
          Taft College








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           OPPOSITION

           None received.