BILL NUMBER: AB 1748	ENROLLED
	BILL TEXT

	PASSED THE SENATE  JUNE 25, 2012
	PASSED THE ASSEMBLY  APRIL 12, 2012

INTRODUCED BY   Assembly Member Fong

                        FEBRUARY 17, 2012

   An act to amend Section 81378.1 of the Education Code, relating to
community colleges.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1748, Fong. California Community Colleges: fair market value of
leases.
   Existing law establishes the California Community Colleges, under
the administration of the Board of Governors of the California
Community Colleges, as one of the segments of public postsecondary
education in this state. Existing law establishes community college
districts, administered by a governing board, throughout the state.
Existing law authorizes the governing board of a community college
district to let, in the name of the district, specified property not
needed for academic activities, and prohibits the fair market value
of that lease from exceeding $25,000 per year, as certified by the
governing board.
   This bill would remove the requirement that the lease not exceed
$25,000 per year.


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

  SECTION 1.  Section 81378.1 of the Education Code is amended to
read:
   81378.1.  (a) The governing board of a community college district
may, without complying with any other provision of this article, let
in the name of the district any buildings, grounds, or space therein,
together with any personal property located thereon, not needed for
academic activities, upon the terms and conditions agreed upon by the
governing board and the lessee for a period of more than five days
but less than five years, as determined by the governing board.
Before executing the lease, the governing board shall include in an
agenda of a meeting of the board open to the public a description of
the proposed lease and an explanation of the methodology used to
establish the lease rate and for determining the fair market value of
the lease.
   (b) The governing board shall give public notice before taking any
action pursuant to subdivision (a). The notice shall include a
description of the governing board's intended action. The notice
shall be printed once a week for three successive weeks prior to the
board meeting described in subdivision (a) in a newspaper of general
circulation that is published at least once a week.
   (c) The governing board shall include, as a condition in any
agreement to let any buildings, grounds, or space therein, together
with any personal property located thereon, a provision that the
agreement shall be subject to renegotiation and may be rescinded
after 60 days' notice to the lessee if the governing board determines
at any time during the term of the agreement that the buildings,
grounds, or space therein subject to the agreement are needed for
academic activities. Any revenue derived pursuant to the agreement
shall be retained for the exclusive use of the community college
district whose buildings, grounds, or space therein are the basis of
the agreement and shall be used to supplement, but not supplant, any
state funding. Any buildings, grounds, or space therein, let by the
district shall be included as space actually available for use by the
college in any calculations related to any plan for capital
construction submitted to the board of governors pursuant to Chapter
4 (commencing with Section 81800), or any other law.
   (d) The authority of a governing board under this section does not
apply to the letting of an entire campus.
   (e) The use of any buildings, grounds, or space therein, together
with any personal property located thereon, let by the governing
board pursuant to this section shall be consistent with all
applicable zoning ordinances and regulations.