BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1492|
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THIRD READING
Bill No: AB 1492
Author: Evans (D), et al
Amended: 8/29/05 in Senate
Vote: 21
PRIOR VOTES NOT RELEVANT
SUBJECT : Community college property
SOURCE : Author
DIGEST : This bill authorizes the sale-sale back or
lease-leaseback of energy efficient community college
facilities, and authorizes apportionment intercept for the
payment of dept service obligations for bonds or short-term
loans. The overall purpose is to allow the California
Community Colleges to utilize a facilities financing
mechanism that is currently only enjoyed by K-12 school
districts.
Senate Floor Amendments of 8/29/05 delete the previous
version which related to instruction in economics.
ANALYSIS :
Lease-Leaseback . Current law provides that current
requirements relative to the sale or lease of K-12 school
district surplus property do not apply to the sale or lease
of a school district's real property, together with any
personal property located thereon, if all of the following
CONTINUED
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conditions are met:
1. The property is sold or leased for the purpose of
assisting a local governmental agency in obtaining
financing.
2. In the case of a sale, the school district
simultaneously repurchases the same property (sale-sale
back).
3. In the case of a lease, the school district
simultaneously leases back the same property
(lease-leaseback).
4. The Financing proceeds are used solely for capital
outlay purposes.
Apportionment Intercept . K-12 public schools currently
have the option to ask the State Controller to withhold
from apportionments an amount of funds necessary to satisfy
its annual bond payment obligation, as it relates to School
Finance Authority funds. This process, whereby school
funding is diverted to the State Controller, who directly
pays the bond holders, can assist districts in securing
better rates on bonds and loans.
This bill provides that current requirements relative to
the sale or lease of surplus property do not apply to the
sale or lease of community college real property, together
with any personal property located thereon, if all of the
following conditions are met:
1. The property is sold or leased for the purpose of
assisting a local governmental agency in obtaining
financing for a qualified community college facility.
2. In the case of a sale, the community college district
simultaneously repurchases the same property (sale-sale
back).
3. In the case of a lease, the community college district
simultaneously leases back the same property
(lease-leaseback).
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4. The financing proceeds are used solely for capital
outlay relating to a qualified community college
facility.
This bill defines "qualified community college facility" as
real and personal property, improvements and related
facilities that are determined by the governing board of
the community college district to satisfy each of the
following:
1. The Facilities will assist the district in reducing
energy and resource consumption and to operate as energy
and resource efficient buildings, as specified.
2. The facilities are affordable, as specified.
The bill requires, when a community college district enters
into a sale or lease as described above, the district to
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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
NC:cm 8/30/05 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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