Bill Text: CA AB2316 | 2015-2016 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: School facilities: leasing property.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2016-09-23 - Chaptered by Secretary of State - Chapter 521, Statutes of 2016. [AB2316 Detail]

Download: California-2015-AB2316-Introduced.html

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BILL NUMBER: AB 2316	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member O'Donnell
   (Coauthor: Assembly Member Mullin)

                        FEBRUARY 18, 2016

   An act to amend Section 17406 of the Education Code, relating to
school facilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2316, as introduced, O'Donnell. School facilities: leasing
property.
   Existing law requires the governing board of a school district to
adopt a resolution that, among other things: (1) declares its
intention to enter into a lease or agreement relating to school
property, (2) includes specified information about the property, and
(3) fixes a time for a public meeting of the governing board at which
sealed proposals to enter a lease or agreement with the school
district will be received from any person, firm, or corporation, and
considered by the governing board, as specified.
   Existing law, notwithstanding the provision described above, also
authorizes the governing board of a school district, without
advertising for bids, to lease real property for a minimum rental of
$1 per year if the instrument by which this property is leased
requires the lessee to construct, or provide for the construction of,
a building to be used by the school district and provides that the
title to the building shall vest in the school district at the end of
the lease.
   This bill would delete the language that provides that a school
district governing board is not required to advertise for bids
pursuant to this provision.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 17406 of the Education Code, as amended by
Section 1 of Chapter 214 of the Statutes of 2015, is amended to read:

   17406.  (a) (1) Notwithstanding Section 17417, the governing board
of a school  district, without advertising for bids,
  district  may let, for a minimum rental of one
dollar ($1) a year, to a person, firm, or corporation real property
that belongs to the school district if the instrument by which this
property is let requires the lessee therein to construct on the
demised premises, or provide for the construction thereon of, a
building or buildings for the use of the school district during the
term of the lease, and provides that title to that building shall
vest in the school district at the expiration of that term. The
instrument may provide for the means or methods by which that title
shall vest in the school district before the expiration of that term,
and shall contain other terms and conditions as the governing board
of the school district may deem to be in the best interest of the
school district.
   (2) For a public project, as defined in subdivision (c) of Section
22002 of the Public Contract Code, regardless of its funding source,
an instrument created pursuant to paragraph (1) shall also require
that a person, firm, or corporation that constructs the building,
including, but not limited to, the prime contractor and, if used,
electrical, mechanical, and plumbing subcontractor, shall be subject
to the same prequalification requirements for prospective bidders
described in subdivisions (b) to (m), inclusive, of Section 20111.6
of the Public Contract Code, including the requirement for the
completion and submission of a standardized prequalification
questionnaire and financial statement that is verified under oath and
is not a public record.
   (b) A rental of property that complies with subdivision (a) as it
reads on the day that the lease is entered into shall be deemed to
have thereby required the payment of adequate consideration for
purposes of Section 6 of Article XVI of the California Constitution.
   (c) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date.
  SEC. 2.  Section 17406 of the Education Code, as added by Section 2
of Chapter 408 of the Statutes of 2014, is amended to read:
   17406.  (a) Notwithstanding Section 17417, the governing board of
a school  district, without advertising for bids, 
 district  may let, for a minimum rental of one dollar ($1)
a year, to any person, firm, or corporation any real property that
belongs to the  school  district if the instrument by which
this property is let requires the lessee to construct on the demised
premises, or provide for the construction thereon of, a building or
buildings for the use of the school district during the term of the
lease, and provides that title to that building shall vest in the
school district at the expiration of that term. The instrument may
provide for the means or methods by which that title shall vest in
the school district  prior to   before  the
expiration of that term, and shall contain other terms and
conditions as the governing board  of the school district 
may deem to be in the best interest of the school district.
   (b) Any rental of property that complies with subdivision (a)
shall be deemed to have thereby required the payment of adequate
consideration for purposes of Section 6 of Article XVI of the
California Constitution.
   (c) This section shall become operative on January 1, 2019.