BILL NUMBER: SB 1488	CHAPTERED  09/29/06

	CHAPTER  661
	FILED WITH SECRETARY OF STATE  SEPTEMBER 29, 2006
	APPROVED BY GOVERNOR  SEPTEMBER 29, 2006
	PASSED THE SENATE  AUGUST 29, 2006
	PASSED THE ASSEMBLY  AUGUST 23, 2006
	AMENDED IN ASSEMBLY  JUNE 20, 2006
	AMENDED IN SENATE  MAY 10, 2006

INTRODUCED BY   Senator Hollingsworth

                        FEBRUARY 23, 2006

   An act to amend Section 17463.6 of the Education Code, relating to
school property.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1488, Hollingsworth  Surplus school property: use of proceeds.
   Existing law, notwithstanding any other law, and subject to
specified limitations, authorizes the Santee School District and the
Capistrano Unified School District to sell certain surplus real and
personal property, as specified, to deposit the proceeds into the
general fund of the school district or the county office of
education, and to use the proceeds from that transaction for any
one-time general fund purpose. Existing law repeals those provisions
on January 1, 2007.
   This bill would, in addition, grant that authority to the Valley
Center-Pauma Unified School District. The bill would also extend the
repeal date for those provisions to January 1, 2010.
   This bill would declare that, due to the special circumstances
uniquely applicable to the Valley Center-Pauma Unified School
District, a general statute cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution,
and the enactment of a special statute is therefore necessary.


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


  SECTION 1.  Section 17463.6 of the Education Code is amended to
read:
   17463.6.  (a) Notwithstanding any other law, the Santee School
District, the Valley Center-Pauma Unified School District, and the
Capistrano Unified School District may sell surplus real property,
together with any personal property located thereon, purchased
entirely with local funds, to any nonprofit, for profit, or
governmental entity and may deposit the proceeds thereof into the
general fund of the school district or county office of education;
and may use the proceeds from the sale for any one-time general fund
purpose. If the purchase of the property was made using the proceeds
of a general obligation bond act or revenue derived from developer
fees, the amount of the proceeds of the transaction that may be
deposited into the general fund of the school district or county
office of education may not exceed the percentage computed by the
difference between the purchase price of the property and the
proceeds from the transaction, divided by the amount of the proceeds
of the transaction. For the purposes of this section, proceeds of the
transaction means either of the following, as appropriate:
   (1) The amount realized from the sale of property after reasonable
expenses related to the sale.
   (2) For any transaction that does not result in a lump-sum payment
of the proceeds of the transaction, the proceeds of the transaction
shall be calculated as the net present value of the future cashflow
generated by the transaction.
   (b) The State Allocation Board shall reduce an apportionment of
hardship assistance awarded to the Santee School District, the Valley
Center-Pauma Unified School District, or the Capistrano Unified
School District pursuant to Article 8 (commencing with Section
17075.10) by an amount equal to the amount of the sale of surplus
real property used for a one-time expenditure of the school district
pursuant to this section.
   (c) If the Santee School District, the Valley Center-Pauma Unified
School District, or the Capistrano Unified School District exercises
the authority granted pursuant to this section, the district is
ineligible for hardship funding from the State School Deferred
Maintenance Fund under Section 17587 for five years after the date of
sale.
   (d) Before the Santee School District, the Valley Center-Pauma
Unified School District, or the Capistrano Unified School District
exercises the authority granted pursuant to this section, the
governing board of the school district shall first submit to the
State Allocation Board documents certifying the following:
   (1) The school district has no major deferred maintenance
requirements not covered by existing capital outlay resources.
   (2) The sale of real property pursuant to this section does not
violate any provisions of a local bond act.
   (3) The real property is not suitable to meet any projected school
construction need for the next 10 years.
   (e) Before the Santee School District, the Valley Center-Pauma
Unified School District, or the Capistrano Unified School District
exercises the authority granted pursuant to this section, the
governing board of the school district shall at a regularly scheduled
meeting present a plan for expending one-time resources pursuant to
this section. The plan shall identify the source and use of the funds
and describe the reasons why the expenditure will not result in
ongoing fiscal obligations for the school district.
   (f) This section is repealed on January 1, 2010, unless a later
enacted statute that becomes operative on or before January 1, 2010,
deletes or extends the date on which it is repealed.
  SEC. 2.  The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of the unique financial circumstances of the Valley
Center-Paumas Unified School District.