BILL ANALYSIS Ó
AB 882
Page 1
Date of Hearing: May 13, 2015
ASSEMBLY COMMITTEE ON EDUCATION
Patrick O'Donnell, Chair
AB 882
Wilk - As Amended May 6, 2015
SUBJECT: School bonds: portable electronic devices.
SUMMARY: Specifies that proceeds from the sale of local bonds
approved by voters after January 1, 2016, authorized and issued
pursuant to Proposition 39 of 2000, may be used to purchase
portable electronic devices only for furnishing and equipping
classrooms and school facilities. Specifically, this bill:
1)Specifies that portable electronic devices purchased with
proceeds from the sale of bonds pursuant to Proposition 39 of
2000 shall only be used for instruction-related purposes in
school facilities and shall not be assigned to individual
students or removed from the schoolsite on a daily basis.
2)Specifies that the term of a bond used for the purposes of
furnishing and equipping of classroom, including, but not
limited to, electronic equipment, shall not exceed 120% of the
average reasonably expected economic life of the furnishings
and equipment.
3)Expresses the intent of the Legislature to ensure that the
proceeds of bond funds issued pursuant to Proposition 39 of
2000 be used consistent with the intent and requirements of
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the act, and expresses the intent of the Legislature to
clarify that portable electronic devices, such as laptops,
tablets, and iPads, may be purchased with Proposition 39 bond
funds only for the equipping of school facilities and be used
for instruction-related purposes in school facilities.
EXISTING LAW:
1)Authorizes, under Section 1 of Article XIII A of the
California Constitution, school districts, community college
districts, or county offices of education to pass a general
obligation (GO) bond by a 55% vote, provided that the local
initiative includes the following accountability measures:
a) A requirement that the proceeds from the sale of the
bonds be used only for the construction, reconstruction,
rehabilitation, or replacement of school facilities,
including the furnishing and equipping of school
facilities, or the acquisition or lease of real property
for school facilities, and not for any other purpose.
b) Provide a list of the specific school facilities
projects to be funded and certification that the school
district board, community college board, or county office
of education (COE) has evaluated safety, class size
reduction, and information technology needs in developing
that list.
c) A requirement that the school district board, community
college board, or COE conduct an annual, independent
performance audit to ensure that the funds have been
expended only on the specific projects listed.
d) A requirement that the school district board, community
college board, or COE conduct an annual, independent
financial audit of the proceeds from the sale of the bonds
until all of those proceeds have been expended for the
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school facilities projects.
2)Authorizes, under Article XVI, Section 18 of the California
Constitution, a school district, community college district or
COE to incur indebtedness in the form of GO bonds for the
construction, reconstruction, rehabilitation, or replacement
of school facilities, including the furnishing and equipping
of school facilities, or the acquisition or lease of real
property for school facilities upon approval of 55% of the
voters.
FISCAL EFFECT: None. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS: Proposition 39. In November, 2000, voters passed
Proposition 39, a Constitutional Amendment which, among others,
give school districts and community colleges the opportunity to
seek approval of a local GO bond based on a 55% vote rather than
a 2/3 vote, provided that the local bond initiative meets
specified accountability measures, including identifying the
list of specific school facilities projects that will be funded
by bond proceeds and the requirement to conduct an annual
independent performance audit and an independent financial
audit.
This bill specifies that local bonds can be used to purchase
portable electronic devices for furnishing and equipping of
school facilities and be used for instructional purposes. The
provision specifying that the devices shall not be removed from
the schoolsite on a daily basis was included to enable students
to take the devices off campus for special projects or for short
term basis.
Furnishing and equipping school facilities. Local educational
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agencies use bond funds to furnish and equip school facilities,
including furniture, such as desks, and equipment, such as
desktop computers. According to the Legislative Counsel,
portable electronic equipment is a type of equipment that is
allowable under Proposition 39. While portable electronic
devices such as the iPads were not in existence when Proposition
39 was passed, they are evolved from desktop computers and as
such, a court would construe Proposition 39 to authorize
portable electronic devices. However, the equipment must be a
part of equipping classrooms and school facilities and be used
in connection with instruction in the classroom. This bill is
consistent with the provisions in Proposition 39 and does not
prohibit the use of Proposition 39 bond proceeds to purchase
technology.
Technology. Many school districts have embarked on new
technology programs, partly in response to the new Common Core
State Standards and the accompanying Smarter Balanced
assessments. The new assessments are computer-based and began
in the 2014-15 school year. In 2013, the Los Angeles Unified
School District (LAUSD) launched the first phase of the Common
Core Technology Project, which provided iPads to 31,000 students
and 1,500 teachers at 47 schools. The iPads are installed with
English and math curriculum and are assigned as personal devices
to pupils, who are allowed to take the devices home. The
district has since suspended the project.
San Diego Unified School District implemented a technology
program several years ago through the passage of two local
bonds. The district upgraded technology in the classrooms and
purchased portable electronic devices. The devices are used in
the classrooms, but the district also allows pupils to take the
devices home and provides internet coverage to families that do
not have access.
Other school districts have purchased other types of portable
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electronic devices, such as the Chromebooks or MacBook Air
laptops. Most school districts are not assigning devices to
each student, and instead are rolling them into classrooms on
carts.
Term of bonds. This bill also specifies that the issuance of
local bonds used to furnish and equip classrooms cannot exceed
120% of the life expectancy of the items being purchased. Under
the Education Code, the term of local bonds cannot exceed 25
years, while bonds issued under the Government Code is no more
than 40 years. State law does not differentiate between bonds
for buildings versus bonds for furnishing and equipping of
facilities. This bill is consistent with federal tax rules to
ensure that taxpayers are not paying long term bonds for items
that have shorter lifespan, and will reduce costs for these
purchases.
Arguments in support. The author states, "? local educational
institutions have been using Prop 39 bond funds to purchase
non-facility related items with much shorter usable life, while
still taking decades to pay them off. One example is the
purchase of thousands of iPads by the Los Angeles Unified School
District in 2013, a cost to the taxpayers of $500 million.
These iPads have an estimated usable life of only 5 years.
Inasmuch as Prop 39 bonds are meant for construction and
modernization of school facilities, they are meant to fund
projects that have a long usable life, and can take decades to
pay off. This measure will protect taxpayer dollars by ensuring
that Prop 39 bond funds are used for the appropriate purposes
and are directed toward projects that have a longer usable life
and are justified in being paid off over a long period of time."
Arguments in opposition. The Riverside County Superintendent of
Schools states, "We believe that if voters are informed of, and
subsequently approve, local bonds that in part may be used to
equip the students in their communities with technology and
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devices that will enhance their educational experience and
provide greater access to the content standards they are
required to learn, school districts should not be precluded from
using bonds as a source of funding."
Author's amendments. The author has requested the Committee to
adopt an amendment striking Section 2 of the bill.
Prior related legislation. AB 1754 (Hagman), introduced last
session, would have been amended to be consistent with the
provisions of this bill if passed by this Committee. The bill
failed on a 3-0 vote.
REGISTERED SUPPORT / OPPOSITION:
Support
California Association of County Treasurers and Tax Collectors
(prior version)
California Association of Realtors (prior version)
Howard Jarvis Taxpayers Association (prior version)
Opposition
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California School Boards Association (prior version)
Coalition for Adequate School Housing (unless amended)
Riverside County Superintendent of Schools
San Diego Unified School District
Analysis Prepared by:Sophia Kwong Kim / ED. / (916) 319-2087