SB 569 Senate Bill - INTRODUCED

BILL NUMBER: SB 569	INTRODUCED
	BILL TEXT


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  any 
 a  person, firm, or corporation  any  real
property that belongs to the  school  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  of the school district  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)  Any   A    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  any   a
 school district may enter into an agreement with  any
  a  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  school 
district upon a designated site and lease the building and site to
the  school  district. The instrument shall provide that the
title to the building and site shall vest in the  school 
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
 school  district prior to the expiration of the lease, and
shall contain other terms and conditions as the governing board of
the  school  district deems to be in the best interest of
the  school  district.
   (b) The agreement entered into shall be with the lowest
responsible bidder who shall give the security that  any
  a governing  board  of a school district
 requires. The  governing  board  of a school
district  may reject all bids. For the purpose of securing bids
the  governing  board  of a school district  shall
publish at least once a week for two weeks in  some 
 a  newspaper of general circulation published in the 
school  district, or if there is no paper, then in  some
  a  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.