Copyright© 1999 by School Services of California, Inc.
Utility/Capital Facility Fees Legislation Vetoed
AB 1657 (introduced by Committee on Utilities and Commerce) was a bill that could have substantially altered or increased the amount of fees community colleges pay to public utility agencies.
The legislation would have established a procedure for notification by public electric utility companies to affected school districts, county offices of education, community colleges, and all state agencies, for the imposition of a new capital facilities fee or the increase of an existing capital facilities fee. The intent of this measure was to impose prospective 120-day statute of limitations for initiating a judicial challenge to these fees.
In his veto message, the Governor indicated that AB 1657 does more than accomplish those stated purposes. Unfortunately, the bill would have also established two new statute of limitations in the Public Utilities Code relating to the imposition of utility fees and charges on the entire school community, K-12 schools, and higher education for other than electric service. The fiscal impact to the entire education community could have been over $100 million, and substantially more for state agencies.
The Governor did express a willingness to sign this measure next year if appropriate changes are made and returned to his desk.
-- Arnold Bray