BILL NUMBER: SB 1039	CHAPTERED  10/10/99

	CHAPTER   1001
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	PASSED THE SENATE   SEPTEMBER 9, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 3, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 2, 1999
	AMENDED IN SENATE   APRIL 29, 1999
	AMENDED IN SENATE   APRIL 5, 1999

INTRODUCED BY   Senator Johnson
   (Coauthor:  Assembly Member Brewer)

                        FEBRUARY 26, 1999

   An act relating to education, making an appropriation therefor,
and declaring the urgency thereof, to take effect immediately.

      (Approved by Governor October 10, 1999.  Filed with
Secretary of State October 10, 1999.)

   I am signing Senate Bill No. 1039, however I am deleting the
$250,000 General Fund appropriation for Alumnae Resources.
   This bill will allow the Newport-Mesa Unified School District to
submit a placeholder application to the State Allocation Board for
facilities funding from Proposition 1A.
                                                 GRAY DAVIS, Governor


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1039, Johnson.   Education:  school facilities:  funding.
   Under existing law, school districts are required to use funds
derived from the sale of surplus property for capital outlay or for
costs of maintenance of school district property.  The proceeds may
be deposited into the general fund of the school district for any
general fund purpose if the school district governing board and the
State Allocation Board have determined that the district has no
anticipated need for additional sites or building construction for
the 5-year period following the sale or lease of the surplus
property.
   Existing law that was in effect until January 1, 1998, provided an
exception to the above-described provisions and authorized a school
district in Orange County, that was unable to access funds of the
school district deposited into the county treasury as a result of the
financial crisis that led to the filing of a petition for the
declaration of bankruptcy of Orange County, to deposit the proceeds
derived from the sale of surplus property of the district into the
general fund of the district and to expend those proceeds for general
fund purposes.  The law required that the proceeds from the sale of
surplus property first be used to replenish fully any capital outlay
funds or accounts that were lost due to the Orange County financial
crisis.
   Existing law prohibits any school district that deposits the
proceeds from the sale of surplus property pursuant to that provision
from applying for funding for school construction or modernization
within 5 years from the date of the last deposit.
   This bill would authorize any school district that is in Orange
County and that deposited proceeds derived from the sale of surplus
property into the general fund of the school district and used those
proceeds for general fund purposes pursuant to those provisions to
submit a placeholder application for state per-pupil facilities
funding prior to the completion of the 5-year period.
   This bill would, notwithstanding the 5-year waiting period,
authorize the State Allocation Board to approve the district's new
construction and modernization eligibility but would prohibit
approval of state funds until completion of the 5-year period.
   This bill would appropriate $250,000 from the General Fund to the
Superintendent of Public Instruction for the purposes of providing a
grant to Alumnae Resources, a nonprofit organization, for the
purposes of providing job training and education services.
   The bill would declare that it is to take effect immediately as an
urgency statute.
   Appropriation:  yes.


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


  SECTION 1.  (a) Any school district that is in Orange County and
that deposited proceeds derived from the sale of surplus property
into the general fund of the school district and used those proceeds
for general fund purposes pursuant to former Section 1 of Chapter 7
of the 1995 Second Extraordinary Session, may submit a placeholder
application for per-pupil facilities funding pursuant to the Leroy F.
Greene School Facilities Act of 1998 (Chapter 12.5 (commencing with
Section 17070.10) of Part 10 of the Education Code (hereafter the
Greene Act)) prior to the completion of the five-year period set
forth in Section 3 of Chapter 7 of the 1995 Second Extraordinary
Session.
   (b) Notwithstanding the five-year waiting period for state school
facilities funding for school districts as described in subdivision
(a), the State Allocation Board may approve the district's new
construction and modernization eligibility pursuant to Article 2
(commencing with Section 17071.10) and Article 6 (commencing with
Section 17073.10).  Project apportionments pursuant to Sections
17072.20 and 17074.15 may not be approved by the State Allocation
Board before the expiration of the five-year period set forth in
Section 3 of Chapter 7 of the 1995 Second Extraordinary Session.
  SEC. 2.  The sum of two hundred fifty thousand ($250,000) is hereby
appropriated from the General Fund to the Superintendent of Public
Instruction for the purposes of providing a grant to Alumnae
Resources, a nonprofit organization, for the purposes of providing
job training and education services.
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order for school districts in Orange County to be permitted to
submit a placeholder application so that those school districts may
be eligible for state school facilities funding after a five-year
moratorium on funding has ended, it is necessary that this act take
effect immediately.