AB 1903 Would Prohibit Districts from Levying Level III Developer Fees

[author: Constantine Baranoff, Meghan Covert Russell]

AB 1903 (Buchanan and Hagman), as proposed, would suspend the ability of school districts to levy Level III developer fees. The bill is scheduled to be heard on Wednesday, June 20 in the Senate Education Committee.

Existing law enables districts to levy fees/charges against construction in the district for purposes of funding the construction or reconstruction of school facilities; these are known as Level I or Level II fees. Current law permits districts to increase the levy if state funds for new school facility construction are not available; this is known as Level III fees. Level III fees were intended to provide a safety net for districts by allowing districts to raise funds for construction even if state bond moneys were not available.

However, AB 1903 would immediately, if passed, suspend the Level III provisions of the law. AB 1903 has the potential of preventing school districts from raising additional revenue for school construction projects where the state comes up short. Districts would still be able to charge Level I and Level II fees, but would not be able to breach the gap of state funding by implementing Level III fees.

The text of AB 1903 is available here.