BILL NUMBER: AB 1240	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 23, 2009
	AMENDED IN ASSEMBLY  APRIL 29, 2009

INTRODUCED BY   Assembly Member Davis

                        FEBRUARY 27, 2009

   An act to amend Sections  81332 and 81373  
81361, 81367, 81370, 81372, and 81375  of, to add Section
81523.5 to, and to repeal  Section 81371  
Sections 81371 and 81373  of, the Education Code, relating to
community colleges.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1240, as amended, 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) 
    (1)  Existing law allows the  governing board of a
Community College  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 allow the Los Angeles Community College District
to lease a temporary use building  that is 50,000 square-feet or
less  for up to a total of 5 years without being subject to
compliance with the above provisions of existing law regarding
building standards. The bill would provide that this provision would
not apply to leases with an effective date or effective renewal date
that is after January 1, 2015.
   This bill would make a  Legislative  
legislative  declaration regarding the need for a special
statute regarding the Los Angeles Community College District.

   (3) 
    (2)  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   relating to  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. 
   SECTION 1.    Section 81361 of the  
Education Code   is amended to read: 
   81361.  The governing board of  any   a 
community college district  which   that 
has by majority vote established a standard rate or rates for the
lease pursuant to this article of its real property may by majority
vote delegate to  such   an  officer or
employee as the governing board may designate, the power to enter
into leases, for and in behalf of the district, of any real property
of the district, with respect to which real property the district has
received only one sealed proposal  which   that
 conforms with the existing standard rate or rates, from a
responsible bidder  and no oral bid which would meet the
requirements of Section 81371  .
   SEC. 2.    Section 81367 of the   Education
Code   is amended to read: 
   81367.  If, in the discretion of the board, it is advisable to
offer to pay a commission to a licensed real estate broker who is
instrumental in obtaining any proposal, the commission shall be
specified in the resolution. No commission shall be paid unless there
is contained in or with the sealed proposal  or stated in or
with the oral bid, which   that  is finally
accepted  ,  the name of the licensed real estate
broker to whom it is to be paid, and the amount or rate thereof. Any
commission shall, however, be paid only out of money received by the
board from the sale or rental of the real property.
   SEC. 3.    Section 81370 of the   Education
Code   is amended to read: 
   81370.  (a) At the time and place fixed in the resolution for the
meeting of the governing body, all sealed proposals  which
  that  have been received shall, in public
session, be opened, examined, and declared by the board. Except as
provided in subdivision (b), of the proposals submitted 
which   that  conform to all terms and conditions
specified in the resolution of intention to sell or to lease and
 which  that  are made by responsible
bidders, the  sealed  proposal  which  
that  is the highest, after deducting therefrom the commission,
if any, to be paid a licensed real estate broker in connection
therewith, shall be finally accepted, unless  a higher oral
bid is accepted or  the board rejects all  of these
 bids.
   (b) Notwithstanding subdivision (a), the governing board of any
community college district may apply to the Board of Governors of the
California Community Colleges for a waiver of the requirement that
the governing board accept the highest responsible bid for the sale
or lease of real property. The board of governors may grant a waiver
pursuant to this subdivision if it determines that the waiver is in
the best interests of the community college district.
   SEC. 2.   SEC. 4.   Section 81371 of the
Education Code is repealed. 
  SEC. 3.    Section 81373 of the Education Code is
amended to read:
   81373.  In the event of a sale to a purchaser procured by a
licensed real estate broker who is qualified as provided in Section
81367, the board shall allow a commission on the full amount for
which the sale is confirmed. 
   SEC. 5.    Section 81372 of the   Education
Code   is amended to read: 
   81372.   (a)    The governing board by majority
vote may adopt a rule delegating to an officer or employee of the
district the authority to perform the duties required to be performed
by the governing board under  Sections  
Section  81370  and 81371  . If  such
  a delegation  rule is adopted  pursuant to
this subdivision  , the resolution required in Section 81365
shall specify, in lieu of the public meeting of the governing board
to be held at its regular place of meeting, the place at which the
designated officer or employee will receive and open sealed proposals
to purchase or lease  and will call for oral bids 
. 
   All 
    (b)     All  other provisions of this
article not in conflict with the delegation of this authority are
applicable. However, the final acceptance of a bid, or rejection of
all bids, shall be made by the governing board at a public meeting.
   SEC. 6.    Section 81373 of the   Education
Code   is repealed.  
   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. 7.    Section 81375 of the   Education
Code   is amended to read: 
   81375.  The governing body may at the session, if it deems
 such action to be   it would be  for the
best public interest, reject any and all bids  , either
written or oral  , and withdraw the property from sale or
lease.
   SEC. 4.   SEC. 8.   Section 81523.5 is
added to the Education Code, to read:
   81523.5.  (a) Notwithstanding subdivision (d) of Section 81523, in
order to adequately assess long-term site viability, any temporary
use building  that is 50,000 square feet   or less 
which the Los Angeles Community College District leases under one,
or successive leases, for a total time of five years or less, and in
which students or faculty are expected to enter, shall be exempt from
the provisions of Article 7 (commencing with Section 81130) and
Article 8 (commencing with Section 81160) of Chapter 1  of
this part  .
   (b) This section does not apply to a lease with an effective date
or effective renewal date that is on or after January 1, 2015.
   SEC. 5.   SEC. 9.   The Legislature
finds and declares that due to unique circumstances regarding the Los
Angeles Community College District, a general statute cannot be made
applicable within the meaning of Section 16 of Article IV of the
California Constitution.