AB 2316, as introduced, O'Donnell. School facilities: leasing property.
Existing law requires the governing board of a school district to adopt a resolution that, among other things: (1) declares its intention to enter into a lease or agreement relating to school property, (2) includes specified information about the property, and (3) fixes a time for a public meeting of the governing board at which sealed proposals to enter a lease or agreement with the school district will be received from any person, firm, or corporation, and considered by the governing board, as specified.
Existing law, notwithstanding the provision described above, also authorizes the governing board of a school district, without advertising for bids, to lease real property for a minimum rental of $1 per year if the instrument by which this property is leased requires the lessee to construct, or provide for the construction of, a building to be used by the school district and provides that the title to the building shall vest in the school district at the end of the lease.
This bill would delete the language that provides that a school district governing board is not required to advertise for bids pursuant to this provision.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 17406 of the Education Code, as amended
2by Section 1 of Chapter 214 of the Statutes of 2015, is amended
3to read:
(a) (1) Notwithstanding Section 17417, the governing
5board of a schoolbegin delete district, without advertising for bids,end deletebegin insert districtend insert may
6let, for a minimum rental of one dollar ($1) a year, to a person,
7firm, or corporation real property that belongs to the school district
8if the instrument by which this property is let requires the lessee
9therein to construct on the demised premises, or provide for the
10construction thereon of, a building or buildings for the use of the
11school district during the term of the lease, and provides that title
12to that building shall vest in the school district at the expiration of
13that term. The
instrument may provide for the means or methods
14by which that title shall vest in the school district before the
15expiration of that term, and shall contain other terms and conditions
16as the governing board of the school district may deem to be in
17the best interest of the school district.
18(2) For a public project, as defined in subdivision (c) of Section
1922002 of the Public Contract Code, regardless of its funding source,
20an instrument created pursuant to paragraph (1) shall also require
21that a person, firm, or corporation that constructs the building,
22including, but not limited to, the prime contractor and, if used,
23electrical, mechanical, and plumbing subcontractor, shall be subject
24to the same prequalification requirements for prospective bidders
25described in subdivisions (b) to (m), inclusive, of Section 20111.6
26of the Public Contract Code, including the requirement for the
27completion and submission of a standardized prequalification
28
questionnaire and financial statement that is verified under oath
29and is not a public record.
30(b) A rental of property that complies with subdivision (a) as it
31reads on the day that the lease is entered into shall be deemed to
32have thereby required the payment of adequate consideration for
33purposes of Section 6 of Article XVI of the California Constitution.
P3 1(c) This section shall remain in effect only until January 1, 2019,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2019, deletes or extends that date.
Section 17406 of the Education Code, as added by
5Section 2 of Chapter 408 of the Statutes of 2014, is amended to
6read:
(a) Notwithstanding Section 17417, the governing
8board of a schoolbegin delete district, without advertising for bids,end deletebegin insert districtend insert may
9let, for a minimum rental of one dollar ($1) a year, to any person,
10firm, or corporation any real property that belongs to thebegin insert schoolend insert
11 district if the instrument by which this property is let requires the
12lessee to construct on the demised premises, or provide for the
13construction thereon of, a building or buildings for the use of the
14school district during the term of the lease, and provides that title
15to that
building shall vest in the school district at the expiration of
16that term. The instrument may provide for the means or methods
17by which that title shall vest in the school districtbegin delete prior toend deletebegin insert beforeend insert
18 the expiration of that term, and shall contain other terms and
19conditions as the governing boardbegin insert of the school districtend insert may deem
20to be in the best interest of the school district.
21(b) Any rental of property that complies with subdivision (a)
22shall be deemed to have thereby required the payment of adequate
23consideration for purposes of Section 6 of Article XVI of the
24California Constitution.
25(c) This section shall become operative on January 1, 2019.
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