BILL NUMBER: AB 1622 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 16, 2012
INTRODUCED BY Assembly Member Eng
FEBRUARY 8, 2012
An act to add Section 17463.8 to the Education Code, relating to
school property.
LEGISLATIVE COUNSEL'S DIGEST
AB 1622, as amended, Eng. School property: San Marino Unified
School District.
Existing law requires the funds derived from the sale of surplus
property to be used for capital outlay or for costs of maintenance of
school district property that the governing board of the school
district determines will not recur within a 5-year period. Existing
law authorizes the proceeds from a lease of school district property
with an option to purchase to be deposited into a restricted fund for
the routine repair of school district facilities, as
defined, for up to a 5-year period. Existing law, in addition,
authorizes the proceeds from the sale or lease with option to
purchase to be deposited in the general fund of the school
district if the school district governing board and the State
Allocation Board determine that the school district has no
anticipated need for additional sites or building construction for
the 10-year period following the sale or lease with option to
purchase, and the school district has no major deferred
maintenance requirements and requires those proceeds to be used for
one-time expenditures, and prohibits their use for ongoing
expenditures, including, but not limited to, salaries and other
general operating expenses.
Existing law, notwithstanding the provisions above and until
January 1, 2014 , authorizes a school district to deposit the
proceeds from the sale of surplus real property, together with any
personal property located on the property, purchased entirely with
local funds, into the general fund of the school district and to use
the proceeds for any one-time general fund purpose.
This bill would authorize the San Marino Unified School District
to sell the site of the former Stoneman Elementary School to the City
of San Marino and use deposit the
proceeds from the sale for school district education
programs , together with any personal property located
on the property, purchased entirely with local funds, into the
general fund of the school district and to use the proceeds for any
one-time general fund purpose. Before exercising this authority, the
school district would be required to submit documents containing
certain certifications to the State Allocation Board .
This bill would make legislative findings and declarations as to
the necessity of a special statute for the City of San Marino and the
San Marino Unified School District.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) The Education Code generally restricts a school district's use
of proceeds received from the sale of surplus property to capital
outlay purposes or maintenance that will not recur within a five-year
period unless the Legislature grants exceptions for specific
transactions.
(b) In March 2011, the City of San Marino entered into a 99-year
lease agreement with the San Marino Unified School District for the
site of the former Stoneman Elementary School. The school district
has not used the site as an elementary school since 1983. Instead,
the site has been used primarily, and exclusively in recent years, by
the City of San Marino for recreation classes, preschool, child
care, and other such programs. Currently, an estimated 12,000 people,
almost equivalent to the population of the City of San Marino,
participate in activities through, or that are scheduled as a result
of, the city's use of the Stoneman facility.
(c) The 99-year lease agreement between the City of San Marino and
the San Marino Unified School District for the Stoneman property is
widely considered a strategic step to simultaneously maintain the
Stoneman site as a community resource for residents of the City of
San Marino and surrounding areas and provide needed funds for public
education for pupils who attend schools in the district.
(d) The lease agreement provides that if the San Marino Unified
School District is able to convey title to the city, the school
district will receive from the city one million dollars ($1,000,000)
to be used for general fund public education purposes, as well as
accelerated payment of the amounts that would otherwise be payable as
lease payments, provided that the school district is able to obtain
a provision of law permitting that use.
(e) This sale would provide the City of San Marino with the
assurance of title that would enable the city to move forward in the
future with additional use and development of the Stoneman property
for recreational and other facilities that would substantially
benefit the San Marino Unified School District and secure the use of
the property for critical community services. Conveyance of title to
the City of San Marino would create the opportunity for the long-term
development of the site into a community center and recreation
complex, which has received the endorsement of the school district
because public school pupils would be the beneficiaries of the
facilities, as would residents of the area.
(f) The proposed sale has received unanimous support and approval
from the governing board of the San Marino Unified School District,
the City Council of San Marino, and numerous other community groups.
(g) The proposed sale would allow the City of San Marino to take
title to, and allow for the development of, the Stoneman site for the
substantial benefit of the community and would provide the San
Marino Unified School District with needed funds for its education
programs.
SEC. 2. Section 17463.8 is added to the Education Code, to read:
17463.8. (a) Notwithstanding any other law,
the San Marino Unified School District may sell the site of the
former Stoneman Elementary School to the City of San Marino and
use the proceeds from the sale for its education programs.
deposit the proceeds from the sale of the
real property, together with any personal property located on the
property, purchased entirely with local funds, into the general fund
of the school district and may use the proceeds for any one-time
general fund purposes. If the purchase of the property was
made using the proceeds of a local general obligation bond 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 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 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 a 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 San Marino Unified School District
pursuant to Article 8 (commencing with Section 17075.10) of Chapter
12.5 of Part 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 San Marino Unified School District exercises the
authority granted pursuant to this section, the school district is
ineligible for hardship funding from the State School Deferred
Maintenance Fund under Section 17587 for five years after the date
proceeds are deposited into the general fund pursuant to this
section.
(d) Before the San Marino 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 the provisions of a local bond act.
(3) The real property is not suitable to meet projected school
construction needs for the next 10 years.
(e) Before the San Marino Unified School District exercises the
authority granted pursuant to this section, the governing board of
the school district at a regularly scheduled meeting shall 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.
SEC. 3. 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 needs of the City of San Marino and the San
Marino Unified School District regarding the property to be sold.