BILL NUMBER: AB 2434	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 26, 2012

INTRODUCED BY   Assembly Member Block

                        FEBRUARY 24, 2012

   An act to amend Section 17463.7 of the Education Code, relating to
school districts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2434, as amended, Block. School districts: surplus school
property.
   Existing law, until January 1, 2014, authorizes a school district
that meets prescribed requirements to deposit the proceeds from the
sale of surplus school property, together with any personal property
located on that property, purchased entirely with local funds, into
the general fund of the school district and to use those proceeds for
any one-time general fund purpose.
   This bill would extend the operation of this provision to January
1,  2019   2016, and would make a conforming
change with respect to a certain final report  .
   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 17463.7 of the Education Code is amended to
read:
   17463.7.  (a) Notwithstanding any other law, a school district may
deposit the proceeds from the sale of surplus real property,
together with any personal property located on the property,
purchased entirely with local funds, into the general fund of the
school district, and may use the proceeds for any one-time general
fund purpose. If the purchase of the property was made using the
proceeds of a local general obligation bond or revenue derived from
developer fees, the amount of the proceeds of the transaction that
may be deposited into the general fund of the school district may not
exceed the percentage computed by the difference between the
purchase price of the property and the proceeds from the transaction,
divided by the amount of the proceeds of the transaction. For
 the  purposes of this section, proceeds of the
transaction means either of the following, as appropriate:
   (1) The amount realized from the sale of property after reasonable
expenses related to the sale.
   (2) For a transaction that does not result in a lump-sum payment
of the proceeds of the transaction, the proceeds of the transaction
shall be calculated as the net present value of the future cashflow
generated by the transaction.
   (b) The State Allocation Board shall reduce an apportionment of
hardship assistance awarded to the particular school district
pursuant to Article 8 (commencing with Section 17075.10) by an amount
equal to the amount of the sale of surplus real property used for a
one-time expenditure of the school district pursuant to this section.

   (c) If the school district exercises the authority granted
pursuant to this section, the school district is ineligible for
hardship funding from the State School Deferred Maintenance Fund
under Section 17587 for five years after the date proceeds are
deposited into the general fund pursuant to this section.
   (d) Before a school district exercises the authority granted
pursuant to this section, the governing board of the school district
shall first submit to the State Allocation Board documents certifying
the following:
   (1) The school district has no major deferred maintenance
requirements not covered by existing capital outlay resources.
   (2) The sale of real property pursuant to this section does not
violate the provisions of a local bond act.
   (3) The real property is not suitable to meet projected school
construction needs for the next 10 years.
   (e) Before the school district exercises the authority granted
pursuant to this section, the governing board of the school district,
at a regularly scheduled meeting, shall present a plan for expending
one-time resources pursuant to this section. The plan shall identify
the source and use of the funds and describe the reasons why the
expenditure will not result in ongoing fiscal obligations for the
school district.
   (f) The Office of Public School Construction shall submit an
interim and a final report to the State Allocation Board and the
budget, education policy, and fiscal committees of the Legislature
that identifies the school districts that have exercised the
authority granted by this section, the amount of proceeds involved,
and the purpose for which those proceeds were used. The interim
report shall be submitted by January 1, 2011, and the final report by
January 1,  2019   2016  .
   (g) This section shall remain in effect only until January 1,
 2019   2016  , and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1,  2019   2016  , deletes or
extends that date.