BILL NUMBER: AB 264	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 2, 2003
	AMENDED IN ASSEMBLY  MAY 8, 2003
	AMENDED IN ASSEMBLY  APRIL 10, 2003

INTRODUCED BY   Assembly Member Mullin
   (Coauthor:  Senator Speier)

                        FEBRUARY 4, 2003

    An act to add Section 17462.7 to, and to add and repeal Section
17462.5 of, the Education Code, relating to public schools.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 264, as amended, Mullin.  Surplus school property:  use of
proceeds.
   (1) Existing law requires that the funds from the sale of surplus
school real property be used for capital outlay or for costs of
maintenance of prescribed school district property.  Existing law
permits a school district to deposit proceeds from a lease of school
district property with an option to purchase in its general fund for
use for any general fund purpose if approved by the State Allocation
Board if certain conditions are met.
   This bill would, notwithstanding contrary provisions of law,
authorize a school district to deposit up to 25% of the proceeds of
the sale of surplus school real property into the school district
general fund for use for any  purpose   one-time
expenditure  of the school district  including, but not
limited to, the costs of temporary employees,  if prescribed
conditions are met, and would preclude that transfer from
disqualifying the school district for prescribed state facilities
funding.  The bill would define "sale," for this purpose, to include
a lease of surplus property with an option to purchase.
   This bill would repeal those provisions on January 1, 2005.
   (2) Existing law authorizes a school district to apply for
hardship state funding for the construction of school facilities
under specified circumstances.
   This bill would require the board to reduce an apportionment of
hardship assistance awarded to a school district by an amount equal
to the amount of any proceeds from the sale of surplus property used
for  operating expenses   a one-time expenditure
 by the district for 5 years following that expenditure.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


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


  SECTION 1.  Section 17462.5 is added to the Education Code, to
read:
   17462.5.  (a) Notwithstanding any other provision of law to the
contrary, including, but not limited to, Section 17462, a school
district may deposit an amount not to exceed 25 percent of the
proceeds of the sale of surplus school real property, excluding any
interest earned thereon, into the school district general fund and
may use those proceeds for any  purpose  
one-time expenditure  of the school district  including, but
not limited to, the costs of temporary employees,  if all of
the following criteria are met:
   (1) The school district has an enrollment of fewer than 11,000
pupils.
   (2) The school district has experienced declining enrollment for
each school year from 1999-2000 to 2002-03, inclusive.
   (3) The proceeds are from the sale of school district real
property that occurred between July 1, 1997, and June 30, 2000,
inclusive.
   (b) Deposit of proceeds in the school district general fund
pursuant to this section does not disqualify the school district from
eligibility for state funding under the Leroy F. Greene School
Facilities Act of 1998 (Chapter 12.5 (commencing with Section
17070.10)) or under Section 17584.
   (c) For the purposes of this section "sale" includes, but is not
limited to, a lease of surplus property with an option to purchase.
   (d) This section shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2005, deletes or extends that
date.
  SEC. 2.  Section 17462.7 is added to the Education Code, to read:
   17462.7.  The board shall reduce an apportionment of hardship
assistance  awarded to a school district pursuant to 
Article 8 (commencing with Section 17075.10) awarded to a
school district  by an amount equal to the amount of any
proceeds from the sale of surplus property used for  the
operating expenses   a one-time expenditure  of the
school district pursuant to Section 17462.5  for  five
years following the expenditure.