Senate Bill No. 569

Introduced by Senator Anderson

February 26, 2015

An act to amend Sections 17406 and 17407 of the Education Code, relating to school facilities.

LEGISLATIVE COUNSEL’S DIGEST

SB 569, as introduced, Anderson. School facilities: construction contracts.

Existing law, until January 1, 2019, authorizes the governing board of a school district 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. Existing law also requires the instrument to provide that the person, firm, or corporation that constructs the building shall comply with specified prequalification requirements.

Existing law also authorizes, until January 1, 2019, the governing board of a school district to enter into an agreement with the lowest responsible bidder to construct, or provide for the construction of, a building to be leased and used by the school district upon a designated site if the instrument provides that the title to the building and site shall vest in the school district at the end of the lease. Existing law requires the agreement to provide that the person, firm, or corporation that constructs the building shall comply with specified prequalification requirements.

This bill would make nonsubstantive changes to these provisions.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 17406 of the Education Code, as amended
by Section 1 of Chapter 408 of the Statutes of 2014, is amended
to read:

17406.  

(a) (1) Notwithstanding Section 17417, the governing
board of a school district, without advertising for bids, may let,
for a minimum rental of one dollar ($1) a year, to begin delete any end delete begin insert a end insert person,
firm, or corporation begin delete any end delete real property that belongs to the begin insert school end insert
district if the instrument by which this property is let requires the
lessee therein to construct on the demised premises, or provide for
the construction thereon of, a building or buildings for the use of
the school district during the term of the lease, and provides that
title to that building shall vest in the school district at the expiration
of that term. The instrument may provide for the means or methods
by which that title shall vest in the school district prior to the
expiration of that term, and shall contain other terms and conditions
as the governing board begin insert of the school district end insert may deem to be in
the best interest of the school district.

(2) If the instrument meets the criteria of subdivision (a) of
Section 20111.6 of the Public Contract Code, the instrument shall
also require that a person, firm, or corporation that constructs the
building, including, but not limited to, the prime contractor and,
if used, electrical, mechanical, and plumbing subcontractor, shall
be subject to the same prequalification requirements for prospective
bidders described in Section 20111.6 of the Public Contract Code,
including the requirement for the completion and submission of a
standardized prequalification questionnaire and financial statement
that is verified under oath and is not a public record.

(b)  begin delete Any end delete begin insert A end insert rental of property that complies with subdivision (a)
as it reads on the day that the lease is entered into shall be deemed
to have thereby required the payment of adequate consideration
for purposes of Section 6 of Article XVI of the California
Constitution.

(c) This section shall remain in effect only until January 1, 2019,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2019, deletes or extends that date.

SEC. 2.  

Section 17407 of the Education Code, as amended by
Section 3 of Chapter 408 of the Statutes of 2014, is amended to
read:

17407.  

(a) The governing board of begin delete any end delete begin insert a end insert school district may
enter into an agreement with begin delete any end delete begin insert a end insert person, firm, or corporation
under which that person, firm, or corporation shall construct, or
provide for the construction of, a building to be used by the begin insert school end insert
district upon a designated site and lease the building and site to
the begin insert school end insert district. The instrument shall provide that the title to
the building and site shall vest in the begin insert school end insert district at the expiration
of the lease, and may provide the means or method by which the
title to the building and site shall vest in the begin insert school end insert district prior
to the expiration of the lease, and shall contain other terms and
conditions as the governing board of the begin insert school end insert district deems to
be in the best interest of the begin insert school end insert district.

(b) The agreement entered into shall be with the lowest
responsible bidder who shall give the security that begin delete any end delete begin insert a governing end insert
board begin insert of a school district end insert requires. The begin insert governing end insert board begin insert of a school
district end insert may reject all bids. For the purpose of securing bids the
begin insert governing end insert board begin insert of a school district end insert shall publish at least once a
week for two weeks in begin delete some end delete begin insert a end insert newspaper of general circulation
published in the begin insert school end insert district, or if there is no paper, then in begin delete some end delete
begin insert a end insert paper of general circulation circulated in the county, a notice
calling for bids, stating the proposed terms of the agreement and
the time and place where bids will be opened.

(c) If the agreement meets the criteria of subdivision (a) of
Section 20111.6 of the Public Contract Code, the agreement shall
also require that a person, firm, or corporation that constructs the
building, including, but not limited to, the prime contractor and,
if used, electrical, mechanical, and plumbing subcontractor, under
this section shall be subject to the same prequalification
requirements for prospective bidders described in Section 20111.6
of the Public Contract Code, including the requirement for the
completion and submission of a standardized prequalification
questionnaire and financial statement that is verified under oath
and is not a public record.

(d) This section shall remain in effect only until January 1, 2019,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2019, deletes or extends that date.