BILL NUMBER: AB 1492 CHAPTERED
BILL TEXT
CHAPTER 363
FILED WITH SECRETARY OF STATE SEPTEMBER 28, 2005
APPROVED BY GOVERNOR SEPTEMBER 28, 2005
PASSED THE ASSEMBLY SEPTEMBER 8, 2005
PASSED THE SENATE SEPTEMBER 7, 2005
AMENDED IN SENATE AUGUST 29, 2005
AMENDED IN SENATE AUGUST 17, 2005
AMENDED IN SENATE JUNE 14, 2005
INTRODUCED BY Assembly Members Evans and Chu
FEBRUARY 22, 2005
An act to add Sections 81383 and 81384 to the Education Code,
relating to community college district property.
LEGISLATIVE COUNSEL'S DIGEST
AB 1492, Evans Community college districts: property: sale or
lease.
Existing law authorizes the governing board of any community
college district to sell or lease, under specified conditions, real
property, as defined, that the community college district owns.
Existing law also requires state and local agencies, including
community college districts, to comply with specified requirements
prior to the disposal of surplus land.
This bill would exclude from provisions governing the construction
of community college facilities and governing the disposal of
property owned by community college districts certain transactions
involving the sale or lease of property owned by a community college
district if the proceeds of these transactions are expended for
capital outlay purposes relating to qualified community college
facilities, as defined, and if the district complies with other
specified conditions.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 81383 is added to the Education Code, to read:
81383. Notwithstanding Section 81360, the sale by the governing
board of any community college district of any real property
belonging to the community college district, or the lease by that
governing board, for a term not exceeding 99 years, of any real
property, together with any personal property located thereon,
belonging to the community college district shall not be subject to
Part 49 (commencing with Section 81000) or to Article 8 (commencing
with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5
of the Government Code, if all of the following conditions are met:
(a) The property is sold or leased to another local governmental
agency, or to a nonprofit corporation that is organized for the
purpose of assisting one or more local governmental agencies in
obtaining financing for a qualified community college facility.
(b) (1) In the case of the sale of community college district
property pursuant to this section, the community college district, as
part of that same sale transaction, simultaneously repurchases the
same property that is the subject of the transaction.
(2) In the case of the lease of community college district
property pursuant to this section, the community college district, as
part of that same lease transaction, simultaneously leases back, for
a term that is not substantially less than the term of that lease,
the same property that is the subject of the transaction.
(c) The financing proceeds obtained by the community college
district pursuant to any transaction described in this section are
expended solely for capital outlay purposes relating to a qualified
community college facility, including the acquisition of real
property for intended use as a site for a qualified community college
facility and the design, planning, acquisition, construction,
reconstruction, and renovation of qualified community college
facilities.
(d) For purposes of this section and Section 81384, the term
"qualified community college facility" means real and personal
property, improvements, and related facilities that are determined in
a resolution of the governing board of the community college
district to satisfy each of the following requirements:
(1) The facilities will (A) assist the community college district
in reducing energy and resource consumption while creating a safer
and healthier learning environment and (B) operate as energy and
resource efficient buildings by taking cost-effective measures
similar to those described in the Green Building Action Plan
promulgated by the Governor for facilities owned, funded or leased by
the state.
(2) The facilities are affordable for the community college
district as set forth in estimated annual summary budgets of the
community college district that include the estimated costs of
financing the facilities during the estimated duration of the
financing demonstrating that the reasonably anticipated expenditures
during each fiscal year shall not exceed the reasonably anticipated
revenues for that fiscal year.
SEC. 2. Section 81384 is added to the Education Code, to read:
81384. When a community college district enters into a sale or
lease of community college district property pursuant to Section
81383, the community college district shall, as a part of the sale
contract or lease, authorize the chancellor and Controller to
withhold from its annual apportionment the amount of funds necessary
to satisfy its annual payment obligation under the sale contract or
lease. The agreement shall include authorization to withhold this
amount and specify the amount to be withheld. The authorization shall
have precedence over other expenditure obligations of the community
college district. The chancellor, directly or through his or her
agent, shall certify the amounts, by district, to the Controller. The
Controller shall withhold the amount so reported for each community
college district and shall, acting on behalf of each community
college district, transfer the appropriate amount from Section B of
the State School Fund to or upon the order of the issuer of bonds (or
the lender on short-term loans) for the purpose of payment of the
debt service obligation for the bonds (or short-term loan) sold for
capital outlay purposes relating to a qualified community college
facility pursuant to Section 81383. Only the annual apportionments of
those community college districts that have authorized the
chancellor and the Controller to act pursuant to this section shall
be affected by this section, and the annual apportionments of all
other community college districts in the state shall remain
unchanged. For purposes of this section, short-term loans shall
include, but are not limited to, loans made by the Pooled Money
Investment Board pursuant to Section 16312 of the Government Code in
connection with the financing of a qualified community college
facility.