Legislative Update: Hearings Are Underway & CCFC Bill Positions

We are at the point in the legislative process where the Legislature is reviewing hundreds of bills in their respective policy committees. They are working toward a deadline of April 26, when bills with a potential state fiscal impact must pass out of policy committees in the first house. See below for an update on a number of bills that may impact community college facilities, as well as a brief update on the FY 2024-25 state budget conversations.

SB 984 (Wahab) – PLAs for State-Funded Projects

SB 984 requires a Project Labor Agreement (PLA) for “major state construction projects” advertised for bid on or after July 1, 2025 at several state agencies. This requirement would apply to community college projects that are funded by state bonds. The PLA must have community benefit goals such as hiring local workers, women, and people from underrepresented and disadvantaged groups. The bill specifies that the PLA requirement applies to projects over $35 million, however it is unclear if this provision applies to community college projects, meaning the PLA requirement could apply to all community college projects funded by state bonds, regardless of cost. CCFC adopted an “Oppose Unless Amended” position on SB 984, requesting an amendment to remove community colleges from the bill. We are concerned that this requirement could inhibit the participation of some colleges from the state capital outlay program. Additionally, it appears these requirements would apply to student housing projects that go out for bid on or after July 1, 2025 if they are funded by the new state Lease Revenue Bond program.

The bill was scheduled to be heard in the Senate Governmental Organization Committee on April 9; however, we have been told that major amendments are in development and the bill’s hearing has been postponed. CCFC remains hopeful that community colleges will be removed from the bill as part of these revisions.

SB 986 (Seyarto) – State and Local Ballot Label Language

SB 986 requires the ballot label for state and local bond measures to include a specific fiscal impact statement that identifies the principal and interest on the bonds and the annual payment amount. This would be done with a specific 27-word (or more) statement and would be in addition to the fiscal disclosure information that is already required by AB 195 (chaptered 2017), which requires local bonds to state the rate, duration, and amount expected to be raised annually for a proposed tax measure. CCFC had significant concerns with this bill, which could exacerbate voter confusion about bond measures and would reduce the space available to explain how bond proceeds would be used to benefit the community. The bill failed to pass out of the Senate Elections and Constitutional Amendments Committee, receiving only 1 aye vote. Therefore, it is not moving forward at this time.

SB 1374 (Becker) – Energy Generation for Customers with Multiple Meters

SB 1374 addresses inequities in the Net Billing Tariff Aggregation that make it difficult for energy generation projects to pencil out. Currently, based on a recent Public Utilities Commission (PUC) action, non-residential customers (including community colleges) with multiple meters have to sell the power they generate back to the utility at low prices and immediately buy it back at higher retail prices. SB 1374 requires the PUC to update its tariffs for non-residential utility customers with multiple meters to give credit for self-consumption similar to the tariff for residential/single meter customers. The bill is pending in the Senate Energy, Utilities and Communications Committee, though it faces concerns from the committee chair, investor-owned utilities, and others. CCFC supports SB 1374.

AB 2192 (Juan Carrillo) – CUPCCAA Bid Limits

AB 2192 updates the CUPCCAA bid limits, which are set in statute and may be adjusted every five years based on a recommendation from the California Uniform Construction Cost Accounting Commission (Commission). AB 2192 proposes the following changes:

• Force Account limit – increase from $60,000 to $70,000
• Informal bid limit – increase from $200,000 to $220,000
• Create a new limit for projects performed by negotiated contract or by purchase order at $100,000 (currently these are subject to the Force Account limit)

AB 2192 also expands the Commission’s authority to review potential violations when an “interested party presents evidence,” allowing the Commission to review potential violations related to bid splitting or exceeding the CUPCCAA bid limits. AB 2192 also adds “installation” to the definition of a public project under CUPCCAA. AB 2192 does not provide details on what this proceeding would look like, such as whether the local agency would be able to address the Commission to provide an explanation of its contracting decisions. AB 2192 is pending in the Assembly Local Government Committee. CCFC is neutral on AB 2192.

SB 1091 (Menjivar) – Schoolyard Greening Projects

SB 1091 eases path of travel upgrade requirements for “school ground greening projects” which are defined as a project that uses “nature-based solutions and improves pupil or student well-being or learning, or pupil play, and improves the community ecological health and climate resilience.” SB 1091 builds upon a mechanism used by SB 515 (chaptered in 2023), which eased path of travel requirements for free-standing, open-sided pre-check shade structures, limiting the cost of complying to 20% of the adjusted construction cost of the project for projects over the valuation threshold. SB 1091 applies this same cap on access upgrade compliance costs to school ground greening projects on K-12 and community college sites, such as removing impervious pavement and replacing it with soil, trees, native or climate-adapted plantings, supporting outdoor education, or a stormwater project to manage runoff from a school building. The bill was passed by the Senate Education Committee and is pending in the Senate Appropriations Committee. CCFC is neutral on SB 1091.

SB 1325 (Durazo) – Best Value Procurement

SB 1325 permits a state or local agency to use best value procurement for the purchase of equipment with a base value of $250,000 or more. SB 1325 specifies that best value is a “process by which a contract award is determined by objective criteria related to price, quality, and other qualifications” including but not limited to:

• Product performance, productivity, and safety standards
• The supplier’s ability to perform the contract requirements
• Environmental benefits, including the reduction of greenhouse gas emissions
• Community benefits
• Job quality benefits, as determined by a “high road jobs plan policy”

SB 1325 is intended to simplify the confusing patchwork of best value authorizations for state and local agencies, allowing for consideration of values such as high-quality job creation. The author indicates that she is pursuing this bill because “A commitment to climate equity means a commitment to workers.” SB 1325 was passed by the Senate Governmental Organization Committee on April 9 and is pending in the Senate Local Government Committee. CCFC is neutral on SB 1325.

Student Housing Legislation

While the Governor and Legislature are still developing the details of the state Lease Revenue Bond program for projects authorized by the Higher Education Student Housing Grant Program, there are a number of bills that have been introduced that pertain to student housing.

AB 1818 (Jackson) – Student Overnight Parking on Campus

AB 1818 is a reintroduction of a concept from AB 302 (Berman, 2019), which stalled in the Legislature. AB 1818 requires community colleges to allow overnight parking in a campus-owned or controlled parking lot or structure by a student attending its campus. The college may not cite the student if the student uses the vehicle as housing, and the student has a valid parking permit issued by the campus. CCFC does not have a formal position on this bill at this time but does have concerns about the impacts to facilities, such as access to restrooms/showers, maintenance, security, and more. The bill is pending in the Assembly Higher Education Committee, amid concerns from multiple community college organizations.

Data Collection Bills

Policymakers have introduced multiple bills that would increase data collection and reporting requirements related to student housing. AB 2707 (Fong) would require the Legislative Analyst’s Office to study and submit a report to the Legislature by January 1, 2026 to identify issues and barriers to securing housing for students ages 25 and older and those with dependents. AB 2567 (Mathis) would amend existing annual student housing data reporting to specify how many students in each category are veterans. Both bills were recently passed by the Assembly Higher Education Committee. CCFC is neutral on these bills.

A Note on the State Budget

The Legislature is expected to vote on an Early Action Budget Package on Thursday, April 11. This package includes $17.3 billion in budget solutions, representing approximately two-thirds of the budget solutions proposed by the Governor in his January budget for FY 2024-25. The package does not include any items of major significance for community colleges. The package minimizes cuts to core programs such as education, health, and social services, though it warns of probable cuts in those areas at the June budget. The Legislature is taking this step now on the “easy” items so that it can focus over the coming weeks on the “hard” decisions and consider ways to address the structural deficit in future years. The Legislature indicates that this action, plus planned reserve withdrawals, will reduce the remaining budget shortfall to between $9 billion and $24 billion, though negative tax revenue news could worsen this.

Rebekah Kalleen
CCFC Executive Director