BILL NUMBER: AB 1240 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Davis
FEBRUARY 27, 2009
An act to amend Sections 81332, 81373, and 81523 of, and to repeal
Section 81371 of, the Education Code, relating to community
colleges.
LEGISLATIVE COUNSEL'S DIGEST
AB 1240, as introduced, Davis. Community colleges: leasing of
buildings: sale of district property.
(1) Existing law allows the governing board of a community college
district to enter into an agreement with another entity whereby that
entity will construct a building to be used and leased by the
district. Existing law requires the agreement to vest title to the
building in the district at, or before, the expiration of the lease.
Before entering into this type of agreement, existing law requires
that the district have a site available upon which the building may
be constructed, that the district has complied with provisions of
existing law relating to the selection and approval of the site, and
has prepared and adopted plans for the building to be constructed on
the site. Existing law provides that a district has a site available
for the construction of a building if it either owns the site or has
an option which allows the district to purchase the site.
This bill would delete provisions providing that a site is
available for construction of a building if the district has an
option on the property.
(2) Existing law allows the district to lease temporary-use
buildings. Existing law provides that any lease of a temporary-use
building that is for more than a total of three years, or is under a
lease-purchase contract, is subject to compliance with existing law
providing for the construction of school buildings under the
supervision of the Department of General Services pursuant to
specified standards.
This bill would extend this exception from a total of 3 years to 5
years, and would delete the provision regarding lease-purchase
contracts. This bill would allow the district to enter into a lease
for up to a total of 5 years without being subject to compliance with
the above provisions of existing law regarding building standards.
(3) Existing law allows the governing board of a community college
district to sell or lease any real property belonging to the
district. Existing law requires the district to call for oral bids
before accepting any written proposals to sell or lease district
property. Existing law requires the board to accept an oral bid if it
exceeds the highest written proposal by 5%.
This bill would repeal the provisions requiring the district to
call for oral bids.
(4) Existing law provides that if the property is sold on a higher
oral bid, 1/2 of the commission is to be paid to the broker who
submitted the highest written proposal, and 1/2 of the commission is
to be paid to the to the broker who procured the actual purchaser.
This bill would delete provisions requiring the district to split
the commission between the broker procuring the highest written
proposal and the broker procuring the actual purchaser in the event
of a sale on a higher oral bid. This bill would require the full
commission to be paid to the broker procuring the purchaser.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 81332 of the Education Code is amended to read:
81332. Before the governing board of a community college district
enters into a lease or agreement pursuant to this article, it shall
have available a site upon which a building to be used by the
district may be constructed and shall have complied with the
provisions of law relating to the selection and approval of sites,
and it shall have prepared and shall have adopted plans and
specifications for such building which have been approved pursuant to
Article 7 (commencing with Section 81130) of Chapter 1 of Part 49. A
district has a site available for the purposes of this section if it
owns a site or if it has an option on a site which allows
the community college district or the designee of the district to
purchase the site. Any community college district may acquire and pay
for an option containing such a provision .
SEC. 2. Section 81371 of the Education Code is repealed.
81371. Before accepting any written proposal, the board shall
call for oral bids. If, upon the call for oral bidding, any
responsible person offers to purchase the property or to lease the
property, as the case may be, upon the terms and conditions specified
in the resolution, for a price or rental exceeding by at least 5
percent, the highest written proposal, after deducting the
commission, if any, to be paid a licensed real estate broker in
connection therewith, then the oral bid which is the highest after
deducting any commission to be paid a licensed real estate broker, in
connection therewith, which is made by a responsible person, shall
be finally accepted. Final acceptance shall not be made, however,
until the oral bid is reduced to writing and signed by the offeror.
SEC. 3. Section 81373 of the Education Code is amended to read:
81373. In the event of a sale on a higher oral bid
to a purchaser procured by a licensed real estate broker
, other than the broker who submitted the highest written
proposal, and who is qualified as provided in Section
81367, the board shall allow a commission on the full amount for
which the sale is confirmed. One-half of the commission on
the amount of the highest written proposal shall be paid to the
broker who submitted it, and the balance of the commission on the
purchase price to the broker who procured the purchaser to whom the
sale was confirmed.
SEC. 4. Section 81523 of the Education Code is amended to read:
81523. (a) The governing board of a community college district
may lease temporary-use buildings for a term extending to the
expected duration of use by the district.
(b) Any lease agreement or contract entered into pursuant to this
section shall be initiated by resolution authorizing such action and
prescribing the terms thereof adopted by vote of a majority of the
members of the governing board.
(c) A governing board of a community college district shall not
enter into a lease pursuant to subdivision (a), unless the resolution
adopted pursuant to subdivision (b) has been published in a
newspaper published in the district and having a general circulation
there; or if there is no such newspaper, then in a newspaper having a
general circulation in the district; or if there is no such
newspaper, then in a newspaper having a general circulation in a
county in which the district or any part thereof is situated. Notice
shall be published no less than once a week for three weeks prior to
the execution of the lease by the board.
(d) Any temporary-use building in which students are expected to
enter and which is leased under one, or successive leases, for a
total time in excess of three five
years , or under a lease-purchase contract, shall be
is subject to the provisions of
Article 7 (commencing with Section 81130) and Article 8
(commencing with Section 81160) of Chapter 1 of this part.