This section allows school districts to lease real estate and buildings and enter into related agreements as needed. It defines key terms such as 'best value,' which means choosing a proposal based on the best combination of price and qualifications. The 'best value score' is a total score given to a proposal based on evaluation factors. 'Building' can refer to multiple structures, remodeled facilities, or necessary utilities and improvements. 'Preconstruction services' include design phase advice to help plan the construction. Lastly, 'site' refers to one or multiple locations and any buildings on them.
(a)CA Education Code § 17400(a) Any school district may enter into leases and agreements relating to real property and buildings to be used by the school district pursuant to this article.
(b)CA Education Code § 17400(b) As used in this article, the following terms have the following meanings:
(1)CA Education Code § 17400(b)(1) “Best value” means a competitive procurement process whereby the selected proposer is selected on the basis of objective criteria for evaluating the qualifications of proposers with the resulting selection representing the best combination of price and qualifications.
(2)CA Education Code § 17400(b)(2) “Best value
score” means the total score awarded to a proposer for all scored evaluation factors.
(3)CA Education Code § 17400(b)(3) “Building” includes each of the following:
(A)CA Education Code § 17400(b)(3)(A) One or more buildings located or to be located on one or more sites.
(B)CA Education Code § 17400(b)(3)(B) The remodeling of any building located on a site to be leased pursuant to this article.
(C)CA Education Code § 17400(b)(3)(C) Onsite and offsite facilities, utilities, or improvements that the governing board of the school district determines are necessary for the proper operation or function of the school facilities to be leased.
(D)CA Education Code § 17400(b)(3)(D) The permanent improvement of school grounds.
(4)CA Education Code § 17400(b)(4) “Preconstruction services” means advice during the design phase including, but not limited to, scheduling, pricing, and phasing to assist the school district to design a more constructible project.
(5)CA Education Code § 17400(b)(5) “Site” includes one or more sites, and also may include any building or buildings located or to be located on a site.
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(Amended by Stats. 2016, Ch. 521, Sec. 1. (AB 2316) Effective January 1, 2017.)
This law states that whenever you see the term "lease or agreement" in this article, it also includes lease-purchase agreements. So, those special types of leases where you might end up owning the property are covered too.
As used in this article “lease or agreement” shall include a lease-purchase agreement.
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(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
Before a school district can lease or make agreements for building a school, it must have a suitable site ready. The district must own the land, have an option to buy it, or be in the process of buying it through eminent domain (taking of private land for public use). They must have court-ordered possession and have met all legal site selection requirements. Additionally, if leasing from a government agency, the lease must initially be for 35 years or have a renewal option extending it to at least 35 years. Approved plans for the building must also be in place.
Before the governing board of a school district enters into a lease or agreement pursuant to this article, it shall have available a site upon which a building to be used by the district may be constructed and shall have complied with the provisions of law relating to the selection and approval of sites, and it shall have prepared and shall have adopted plans and specifications for the building that have been approved pursuant to Sections 17280 to 17316, inclusive. A district has a site available for the purposes of this section under any of the following conditions:
(a)CA Education Code § 17402(a) If it owns a site or if it has an option on a site that allows the school district or the designee of the district to purchase the site. Any school district may acquire and pay for an option containing such a provision.
(b)CA Education Code § 17402(b) If it is acquiring a site by eminent domain proceedings and pursuant to Chapter 6 (commencing with Section 1255.010) of Title 7 of Part 3 of the Code of Civil Procedure, the district has obtained an order for possession of the site, and the entire amount deposited with the court as the probable amount of compensation for the taking has been withdrawn.
(c)CA Education Code § 17402(c) In the case of a district qualifying under Section 17410, if it is leasing a site from a governmental agency pursuant to a lease having an original term of 35 years or more or having an option to renew that, if exercised, would extend the term to at least 35 years.
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(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
If a school district in California signs a lease or agreement, it can last for a maximum of 99 years.
The term of a lease or agreement entered into by a school district pursuant to this article shall not exceed 99 years.
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(Amended by Stats. 2018, Ch. 204, Sec. 1. (AB 1406) Effective January 1, 2019.)
This law states that the rules from Sections 17455 to 17480 do not apply to leases that are made under this specific article.
Sections 17455 to 17480, inclusive, shall not apply to leases made pursuant to this article.
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(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
This law outlines the rules for leasing buildings or structures used for school purposes in California. Any leased building used by a school must comply with specific safety regulations unless it's not considered a 'school building.' Trailer coaches used as classrooms have different rules, including size limits and maximum number of students. Leased structures, called relocatable structures, must be on property owned or controlled by the school district. Buildings leased short-term must adhere to fire alarm standards. Finally, these rules have been in effect since September 30, 1997.
Any lease or agreement shall be subject to the following requirements:
(a)CA Education Code § 17405(a) A building or structure that is to be used for school purposes shall be subject to the provisions of Article 3 (commencing with Section 17280) and Article 6 (commencing with Section 17365). A building or facility used by a school district under a lease or lease-purchase agreement into which neither pupils nor teachers are required to enter or that would be excluded from the definition of “school building,” as contained in Section 17368, shall not be considered to be a “school building” within the meaning of Section 17283.
(b)CA Education Code § 17405(b) Subdivision (a) shall not apply to trailer coaches used for classrooms or laboratories if the trailer coaches conform to the requirements of Part 2 (commencing with Section 18000) of Division 13 of the Health and Safety Code, and the rules and regulations promulgated thereunder concerning mobilehomes, are not expanded or fitted together with other sections to form one unit greater than 24 feet in width, are used for special educational purposes, and are used by not more than 12 pupils at a time, except that the trailer coaches may be used by not more than 20 pupils at a time for driver training purposes.
(c)CA Education Code § 17405(c) The site on which a leased relocatable structure is located shall be owned by the school district, or shall be under the control of the school district pursuant to a lease or a permit.
“Relocatable structure” is any structure that is designed to be relocated.
(d)CA Education Code § 17405(d) For purposes of interconnection of fire alarms, buildings leased for 24 months or less shall be subject to Section 809 of the Uniform Building Code until applicable regulations proposed by the State Fire Marshal are adopted as part of Title 24 of the California Code of Regulations.
(e)CA Education Code § 17405(e) Notwithstanding any other provision of law, this section shall become operative on September 30, 1997.
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(Amended (as to be added by Stats. 1996, Ch. 277, 2nd text) by Stats. 1997, Ch. 320, Sec. 4. Effective August 18, 1997. As amended, this section initially became operative on September 30, 1997, by Sec. 10 of Ch. 320 (and by its own provisions).)
This law allows school districts to lease their property for as little as $1 per year as long as the lessee agrees to construct a building on the property for the school district's use. The building becomes the property of the school district at the end of the lease. The lease terms must be in the school district's best interest and are considered adequate payment under the California Constitution. This rule will start on July 1, 2027.
(a)CA Education Code § 17406(a) Notwithstanding Section 17417, the governing board of a school district may let, for a minimum rental of one dollar ($1) a year, to any person, firm, or corporation any real property that belongs to the school district if the instrument by which this property is let requires the lessee to construct on the demised premises, or provide for the construction thereon of, a building or buildings for the use of the school district during the term of the lease, and provides that title to that building shall vest in the school district at the expiration of that term. The instrument may provide for the means or methods by which that title shall vest in the school district before the expiration of that term, and shall contain other terms and conditions as the governing board of the school district may deem to be in the best interest of
the school district.
(b)CA Education Code § 17406(b) Any rental of property that complies with subdivision (a) shall be deemed to have thereby required the payment of adequate consideration for purposes of Section 6 of Article XVI of the California Constitution.
(c)CA Education Code § 17406(c) This section shall become operative on July 1, 2027.
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(Amended (as amended by Stats. 2016, Ch. 521, Sec. 3) by Stats. 2021, Ch. 666, Sec. 6. (AB 486) Effective January 1, 2022. Operative July 1, 2027, by its own provisions.)
This law allows school districts in California to lease buildings from a developer, with the option for the district to own the building once the lease ends. The district must seek bids for such agreements through public notice and choose the lowest responsible bidder. There are provisions for the district to own the property before the lease ends if agreed upon. This process has been in effect since January 1, 2019.
(a)CA Education Code § 17407(a) The governing board of any school district may enter into an agreement with any person, firm, or corporation under which that person, firm, or corporation shall construct, or provide for the construction of, a building to be used by the district upon a designated site and lease the building and site to the district. The instrument shall provide that the title to the building and site shall vest in the district at the expiration of the lease, and may provide the means or method by which the title to the building and site shall vest in the district prior to the expiration of the lease, and shall contain other terms and conditions as the governing board of the district deems to be in the best interest of the district.
(b)CA Education Code § 17407(b) The agreement entered into shall be with the lowest responsible bidder who shall give the security that any board requires. The board may reject all bids. For the purpose of securing bids the board shall publish at least once a week for two weeks in some newspaper of general circulation published in the district, or if there is no paper, then in some paper of general circulation circulated in the county, a notice calling for bids, stating the proposed terms of the agreement and the time and place where bids will be opened.
(c)CA Education Code § 17407(c) This section shall become operative on January 1, 2019.
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(Repealed (in Sec. 3) and added by Stats. 2014, Ch. 408, Sec. 4. (AB 1581) Effective January 1, 2015. Section operative January 1, 2019, by its own provisions.)
The governing board of a school district in California cannot make agreements for building projects unless the contractor promises that all workers have proper skills and training for their trades. However, there are a few exceptions: if the project is covered by a labor agreement requiring skilled workers, if a previous agreement covers the project since before 2017, or if the contractor and their subcontractors are part of such a labor agreement. A 'project labor agreement' is a specific type of labor contract that ensures all workers are skilled and trained.
(a)CA Education Code § 17407.5(a) The governing board of a school district shall not enter into an agreement pursuant to Section 17406 or 17407 with any entity unless the entity provides to the governing board of the school district an enforceable commitment that the entity and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.
(b)CA Education Code § 17407.5(b) Subdivision (a) shall not apply if any of the following requirements are met:
(1)CA Education Code § 17407.5(b)(1) The
governing board of the school district has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project or contract to use a skilled and trained workforce and the entity agrees to be bound by that project labor agreement.
(2)CA Education Code § 17407.5(b)(2) The project or contract is being performed under the extension or renewal of a project labor agreement that was entered into by the school district prior to January 1, 2017.
(3)CA Education Code § 17407.5(b)(3) The entity has entered into a project labor agreement that will bind the entity and all its subcontractors at every tier performing the project or contract to use a skilled and trained workforce.
(c)CA Education Code § 17407.5(c) For purposes of this section, “project labor agreement” has the same meaning as in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract
Code.
skilled workforce requirements apprenticeable occupation building and construction trades project labor agreement school district contracts subcontractors workforce training governing board agreements labor contracts extension or renewal enforceable commitment Chapter 2.9 compliance Public Contract Code trade skills contract exceptions
(Amended by Stats. 2016, Ch. 774, Sec. 2. (SB 693) Effective January 1, 2017.)
This law says that if a county education authority in California makes an agreement to lease out its property and that lease requires the renter to build a structure on the land for educational use, certain existing conditions from other laws must be followed. This includes agreements by county education boards, offices, or superintendents related to school property.
The requirements of Sections 17406, 17407, and 17407.5 shall apply to any agreement entered into by a county board of education, county office of education, or county superintendent of schools to let to any person, firm, or corporation any real property that belongs to the county office of education or a school district and requires the lessee to construct on the demised premises or provide for the construction of a building thereon for use by the county office of education or a school district.
county board of education county office of education county superintendent of schools lease agreements real property school district property construction requirements lessee obligations building construction educational use buildings
(Added by Stats. 2017, Ch. 125, Sec. 2. (AB 591) Effective January 1, 2018.)
If a school district's governing board plans to enter into a lease or agreement, they must hold an election before or after, unless the lease or agreement does not raise the district's maximum tax rate. In that case, holding an election is not necessary.
The governing board of a school district shall call and hold an election, pursuant to Section 17409 or 17412, before or after entering a lease or agreement, as the case may be, except that if the lease or agreement does not effect an increase in the existing applicable maximum tax rate of the district, the election requirements of this section shall not apply.
school district governing board election lease agreement maximum tax rate hold an election existing tax rate 17409 17412
(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
Before a school district in California can enter a lease or agreement for building or construction projects, it must hold an election. In this election, voters will decide whether the district can purchase land, prepare building plans, and lease sites or buildings. Voters also decide if the district can temporarily increase taxes to fund these projects. The ballot must clearly explain the proposed actions, location, and tax rate increase.
Before entering into a lease or agreement pursuant to this article, the governing board of the district shall call, hold, and conduct an election in the manner provided in Section 42202, except that the ballot used in the election shall contain substantially the words: “Shall the governing board of the ____ District purchase (a site, sites) prepare plans and specifications, [the reference to the site or sites and plans and specifications shall not be included if, prior to calling the election, the governing board of the district has acquired a site or sites or proposes to lease a site or sites and has prepared plans and specifications] and lease (a site and, sites and) (a building, buildings) to be constructed for use by the school district [designating the location of the site or sites on which the building or buildings will be constructed and generally describing the building or buildings], and, for such purposes, shall the maximum tax rate of the district be increased by not to exceed ____, such increase to be in effect in the ____ District for the years 19_ to __, be authorized and the amount of such increase used solely and exclusively for such purposes?”
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(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
This law explains the process for a school district's governing board to hold an election about a tax increase originally approved by voters. If voters say yes again, the board can use the tax to buy or lease land or buildings for school use. The election needs a specific type of ballot. It's all about making sure funds go to what's needed for the district, and any tax raise stays within what voters approved before.
(a)CA Education Code § 17410(a) If, at an election held pursuant to Section 17409, or the predecessor to that section, a majority of the electors voting on the proposition voted “Yes,” the governing board may call an election pursuant to this section.
Before entering into one or more leases or agreements pursuant to this section and this article, the governing board of the district shall call, hold, and conduct an election in the manner provided in Section 42202 of the Education Code, as it existed on December 31, 1979, except that the ballot used in the election shall contain substantially the words: “Shall the governing board of the ____ District purchase (a site, sites) prepare plans and specifications [the reference to the site or sites and plans and specifications shall not be included if, prior to calling the election, the governing board of the district has acquired a site or sites or proposes to lease a site or sites or has prepared plans and specifications] and lease (a site, sites) and (a building, buildings) to be constructed for use by the school district (designating the location of the site or sites on which the building or buildings will be constructed and generally describing the building or buildings) and for those purposes, shall the tax rate increase authorized on [the date of the original election], be used solely and exclusively for those purposes in addition to those approved by the majority of electors at the election held pursuant to Section 17409, or the predecessor to that section, on [the date of the original election]?”
If, at the election held pursuant to this section, a majority of the electors voting on the proposition vote “Yes,” the governing board may proceed pursuant to this article to use that previously authorized tax increase for the purpose or purposes authorized under that election.
(b)CA Education Code § 17410(b) It is the intent of the Legislature, in enacting this section, to permit the levy of a tax to the extent authorized at an election held pursuant to Section 17409, or the predecessor to that section, as modified to permit the proceeds of that tax to be expended for the purposes authorized at the election held pursuant to subdivision (a).
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(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
If a school district plans to lease multiple buildings and presents this to voters in an election, they can include a note in the ballot measure that allows them to lease fewer buildings than initially proposed. If they decide not to lease some buildings later, this won't break any promises to the voters.
The governing board of the district, if the district proposes at an election held pursuant to Section 17409 to lease more than one building, may include in the ballot measure used in the election a statement that the district reserves the right to lease less than all of the proposed buildings designated in the ballot measure. If such a statement is included in the ballot measure, the governing board may at any time thereafter determine to not lease one or more of the buildings included in the ballot measure, and such determination shall not breach any obligation of the district to the voters of the district.
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(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
If there's an election as mentioned in Section 17409 or 17413, it has to be held at the same time as a statewide primary, general election, or on a specified election date according to another section of the Elections Code.
An election held pursuant to Section 17409 or Section 17413 shall be held in conjunction with either a statewide primary or general election, or an election date specified in Section 1000 of the Elections Code.
statewide primary general election election date Section 1000 Section 17409 Section 17413 Elections Code held in conjunction specified election date
(Amended by Stats. 2006, Ch. 588, Sec. 5. Effective January 1, 2007.)
This law allows a school district's governing board to call for an election to decide whether the district can lease a building or site for school use, rather than using another election process mentioned in a different section. After reviewing proposals or adopting a resolution, they can quickly move forward with this plan. The election follows specific rules, and the ballot will ask voters if they agree to leasing a site or building and potentially increasing the district's tax rate for funding this project, specifying the location, description, and cost.
In lieu of calling an election pursuant to Section 17409, the governing board of a school district may call an election pursuant to this section. Within 10 days after the governing board has opened the proposals pursuant to Section 17417 or has adopted a resolution pursuant to Section 17418 it may accept a proposal, if proceeding under Section 17417, and execute the lease or agreement, and immediately thereafter call an election pursuant to this section.
The governing board of the district shall call, hold, and conduct an election in the manner provided in Section 42202, except that the ballot used in the election shall contain substantially the words: “Shall the governing board of the ____ District lease [a site (sites) and] a building [buildings] to be constructed for use by the school district [designating the location of the site or sites on which the building or buildings will be constructed, and generally describing the building or buildings and the cost thereof], and, for such purposes, shall the maximum tax rate of the district be increased by not to exceed ____, such increase to be in effect in the ____ District for the years 19__ to ____, be authorized and the amount of such increase used solely and exclusively for such purposes?”
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(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
If most people vote 'Yes' in certain elections, the governing board can move forward with the actions outlined in this article.
If, at the election held pursuant to Section 17409 or Section 17413, a majority of the electors voting on the proposition vote “Yes,” the governing board may proceed pursuant to this article.
election majority vote electors proposition governing board Section 17409 Section 17413 proceed voting outcome Yes vote board authority election result proceed with actions
(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
This law is about what happens when part of a school district is moved to another district, especially if the original district had planned to raise property taxes to pay for a lease on a building or site. If part of a district is transferred to another district after voters approved a tax increase for these purposes, the new district must pick up its fair share of any outstanding payments. This share is calculated based on the property value of the area that was transferred compared to the whole original district. This rule only applies if the transfer of district territory happens after this law was enacted.
Whenever the electors of a school district, at an election held pursuant to Section 17409 or 17413, have approved an increase in the maximum tax rate of the district for the purpose of enabling the district to enter into a lease or agreement for a site or building, or both, and before the lease or agreement is entered into, or during the term of the lease or agreement, territory is taken from the district and annexed to or included in another district by any means, the acquiring district shall automatically assume and shall pay to the district from which the territory is transferred a proportionate share of any remaining payments due under the lease or agreement, as the payments become due, for so long as the lease or agreement runs.
The acquiring district’s proportionate share shall be in the ratio which the total assessed valuation of taxable property in the transferred territory bore to the total assessed valuation of taxable property in the whole district from which the territory is transferred for the year immediately preceding the date on which the transfer became effective for all purposes.
This section shall be applicable only with respect to transfers of school district territory which become effective for all purposes after the effective date of enactment of this section, and shall be applicable whether the election under Section 17409 or 17413 occurred prior to or after the effective date of this section.
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(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
If a school district's governing board does not finalize a lease agreement within three years after voters approve a tax rate increase for a project, the tax rate authorization is void. However, if legal challenges regarding the election, competitive bidding, or environmental compliance arise, this deadline is extended until three years after the legal issues are resolved. This rule only applies to larger school districts with over 65,000 students as of the 1975-76 school year.
(a)CA Education Code § 17416(a) Unless the time allowed for the governing board to enter into the lease agreement is extended pursuant to subdivision (b), if the governing board of the district fails to enter into a lease pursuant to this article within three years after an election, held pursuant to Section 17409, at which a majority of the votes cast favors the proposition submitted, the authorization for an increase in the maximum tax rate shall become void.
(b)CA Education Code § 17416(b) If litigation is filed challenging in any way the election held pursuant to Section 17409 or the competitive bidding proceedings or contract for the construction of the building to be used by the district; compliance with the California Environmental Quality Act; or the validity of or the proceedings for the issuance of any bonds, notes, warrants, or other evidences of indebtedness of a nonprofit corporation to be sold to finance construction of the building, the authorization for an increase in the maximum tax rate shall not become void because of the failure of the governing board to enter into a lease pursuant to this article until three years after the date upon which this subdivision becomes effective.
This subdivision shall apply only to school districts which had an average daily attendance of 65,000 or more in the 1975–76 fiscal year.
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(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
When a school district in California wants to lease a site for a building, the governing board must hold a public meeting and pass a resolution detailing their plans. This includes identifying the site, describing the building, and setting terms for the lease, such as minimum rent and lease duration. They announce a public meeting to open sealed bids, where they will choose the proposal that offers the lowest rent, provided it meets all requirements. However, they don't have to make a decision the same day the bids are opened.
After the governing board of a school district has complied with Section 17402, it shall, in a regular open meeting, adopt a resolution declaring its intention to enter into a lease or agreement pursuant to this article. The resolution shall describe, in any manner to identify it, the available site upon which the building to be used by the district shall be constructed, shall generally describe the building to be constructed and state that the building shall be constructed pursuant to the plans and specifications adopted by the governing board therefor, shall, if that is the case, state the minimum yearly rental at which the governing board will lease real property belonging to the district upon which the building is to be constructed, and shall state the maximum number of years for which the school district will lease the building or site and building, as the case may be, and shall state that the proposals submitted therefor shall designate the amount of rental, which shall be annual, semiannual, or monthly, to be paid by the school district for the use of the building, or building and site, as the case may be. The resolution shall fix a time, not less than three weeks thereafter for a public meeting of the governing board to be held at its regular place of meeting, at which sealed proposals to enter a lease or agreement with the school district will be received from any person, firm, or corporation, and considered by the governing board. Notice thereof shall be given in the manner provided in Section 17469.
At the time and place fixed in the resolution for the meeting of the governing body, all sealed proposals which have been received shall, in public session, be opened, examined, and declared by the board. Of the proposals submitted which conform to all terms and conditions specified in the resolution of intention to enter a lease or agreement and which are made by responsible bidders, the proposal which calls for the lowest rental shall be finally accepted, or the board shall reject all bids. The board is not required to accept a proposal, or else reject all bids, on the same day as that in which the proposals are opened.
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(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
This law allows a school district's governing board, instead of using sealed proposals, to adopt a resolution to enter a lease or agreement with a nonprofit public benefit corporation. This nonprofit must be organized under specific laws and ensure that its members or directors are approved by the school district and that profits don't benefit private individuals, but only the school district. The resolution must describe the site and building to be constructed, mention rental terms, and state the lease duration. Any building constructed must follow a competitive bidding process to find the lowest responsible bidder.
(a)CA Education Code § 17418(a) As an alternative to obtaining sealed proposals as required by Sections 17407 and 17417, the governing board may, in a public meeting, adopt a resolution declaring its intention to enter into a lease or agreement pursuant to this article with a nonprofit public benefit corporation organized under the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code) if the articles of incorporation or bylaws of the nonprofit public benefit corporation provide both of the following:
(1)CA Education Code § 17418(a)(1) That no person shall be eligible to serve as a member or director of the corporation except a person initially approved by resolution of the governing board of the school district.
(2)CA Education Code § 17418(a)(2) That no part of the net earnings of the corporation shall inure to the benefit of any member, private shareholder, individual, person, firm or corporation excepting only the school district.
(b)CA Education Code § 17418(b) The resolution adopted by the governing board shall do all of the following:
(1)CA Education Code § 17418(b)(1) Describe, in a manner to identify it, the available site upon which the building to be used by the district shall be constructed.
(2)CA Education Code § 17418(b)(2) Generally describe the building to be constructed and state that the building shall be constructed pursuant to the plans and specifications adopted by the governing board therefor.
(3)CA Education Code § 17418(b)(3) If that is the case, state the minimum yearly rental at which the governing board will lease real property belonging to the district upon which the building is to be constructed.
(4)CA Education Code § 17418(b)(4) State the maximum number of years for which the school district will lease the building, or building and site, as the case may be.
(c)CA Education Code § 17418(c) Any building constructed by a nonprofit public benefit corporation pursuant to a lease or agreement entered into pursuant to this section shall be constructed under a contract awarded to the lowest responsible bidder pursuant to Article 42 (commencing with Section 20670) of Part 3 of Division 2 of the Public Contract Code. Section 17424 applies to the contract.
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(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
This law states that when a nonprofit corporation wants to sell bonds or other financial instruments to fund building construction, these sales must follow specific rules found in another part of the Government Code.
Any bonds, notes, warrants, or other evidences of indebtedness to be issued by a nonprofit corporation to finance the construction of a building pursuant to a lease or agreement entered into pursuant to Section 17418 shall be sold pursuant to Chapter 10 (commencing with Section 5800) of Division 6 of Title 1 of the Government Code.
nonprofit corporation financing evidences of indebtedness construction of a building lease agreement sale of bonds notes warrants Section 17418 Government Code Chapter 10 Division 6 Title 1
(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
This law states that the bonds, notes, and other forms of debt mentioned in Section 17419, along with any similar debts issued to refinance them, are not subject to taxes in the state. However, they are still subject to inheritance, gift, and franchise taxes.
All bonds, notes, warrants or other evidences of indebtedness referred to in Section 17419 and the interest thereon, and all bonds, notes, warrants, or other evidences of indebtedness issued to refinance any bonds, notes, warrants, or other evidences of indebtedness referred to in Section 17419 and the interest thereon, are exempt from all taxation in the state other than inheritance, gift and franchise taxes.
tax exemption bonds notes warrants indebtedness refinance inheritance tax gift tax franchise tax Section 17419
(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
This law says that if a building is built for a school district, it must follow certain rules and regulations listed between Sections 17280 and 17313.
Any building constructed for the use of a school district pursuant to this article is subject to Sections 17280 to 17313, inclusive.
school buildings construction requirements school district use regulations compliance Sections 17280 to 17313 school facilities educational buildings building standards school district buildings construction regulations education construction guidelines
(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
This law states that half of the remaining payments a school district would owe for using a building or site under any lease agreements will count as outstanding debt. This applies if the leases were completed in full.
For the purposes of Sections 15102 and 15106 and Chapter 6 (commencing with Section 16000) of Part 10, 50 percent of any remaining payments for use of the building or site and building which would become due from the district under any leases and agreements entered into by the district pursuant to this article, if the leases and agreements were to run their full term, shall be considered outstanding bonded indebtedness.
outstanding bonded indebtedness lease agreements school district payments remaining payments building use payments site use payments lease term facility leases school district obligations bond debt calculation payment obligations debt consideration building site agreements
(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
This law states that a school district in California cannot lease a building or site if the cost of future rental payments and any existing debt exceeds a certain percentage of the district's taxable property value. Specifically, this threshold is 7.5% for elementary and high school districts, and 12.5% for unified school districts. The district's taxable property value is calculated without considering exemptions like business inventories or homeowner tax reductions.
No district shall enter into any lease or agreement pursuant to this article if at the time 50 percent of any remaining rental payments for use of the building or site and building which would become due from the district pursuant to this article, including the lease or agreement to be entered into, if the leases and agreements were to run their full term, plus the total amount of district bonded indebtedness outstanding at the time, shall exceed 7.5 percent for elementary school districts and high school districts and 12.5 percent for unified school districts of the taxable property of the district as shown by the last equalized assessment of the county or counties in which the district is located. For the purpose of this section, the taxable property of the district shall be determined upon the basis that the district’s assessed value has not been reduced by the exemption of the assessed value of business inventories in the district or reduced by the homeowners’ property tax exemption.
lease agreements rental payments bonded indebtedness elementary school district high school district unified school district taxable property assessment property tax exemption business inventories district debt limits financial thresholds equalized assessment county assessment district funding limits
(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
This law requires the school district's governing board to find out the usual daily wage rates for different types of workers from the Department of Industrial Relations when planning a construction project. They must include these wages and overtime rates in any construction agreements. If a worker does more than 8 hours in a day, they must be paid at least one and a half times their regular pay for the extra hours. Although specific holidays aren't mentioned, any recognized by relevant labor agreements must have these wages applied too. The board can also add other requirements they think are important to the agreements.
The governing board of the school district shall obtain the general prevailing rate of per diem wages from the Director of the Department of Industrial Relations for each craft, classification or type of workman needed for the construction of the building and shall specify in the resolution and in the notice, required by Section 17417, or in the resolution required by Section 17418 and in the lease or agreement made pursuant to this article, what the general prevailing rate of per diem wages and the general prevailing rate for holiday and overtime work in the locality is for each craft, classification or type of workmen needed for the construction of the building. The holidays upon which such rate shall be paid need not be specified by the governing board, but shall be all holidays recognized in the collective bargaining agreement applicable to the particular craft, classification or type of workmen employed on the project.
Any agreement or lease entered into pursuant to this article shall require that such general prevailing rates will be paid. It shall also require that work performed by any workman employed upon the project in excess of eight hours during any one calendar day shall be permitted only upon compensation for all hours worked in excess of eight hours per day at not less than 11/2 times the basic rate of pay. There may also be included in leases or agreements entered into pursuant to this article any other requirements with respect to matters related to the subject of this section which the governing board deems necessary or desirable.
governing board prevailing wage rates per diem wages Director of the Department of Industrial Relations construction of the building holiday pay overtime compensation work in excess of eight hours collective bargaining agreement lease agreements compensation requirements project workers hourly wage policies employment agreements wage compliance
(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
This law clarifies that the rules in this particular article take priority over any other conflicting laws. This means if there's a disagreement between this article and another law, this article is the one that must be followed.
The provisions of this article prevail over any provisions of law which conflict therewith.
article precedence conflicting laws priority rules prevail overriding provisions legal conflicts supersede regulation authority interpretation of conflicts law hierarchy
(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
This law confirms and validates any actions taken by a school district before this section was enacted, especially regarding increasing the district's maximum tax rate or leasing buildings for district use. If voters approved these actions in an election, the decisions are legally binding. The validation does not apply to matters currently being contested in court or deemed illegal in previous rulings. For districts that held elections before this law's enactment, the older laws will dictate contract terms concerning leasing and bonds, not the new provisions.
All acts and proceedings taken prior to the effective date of the enactment of this section, by or on behalf of any district under this article, or under color of this article, for the authorization of an increase in the maximum tax rate of the district and for the leasing of a building or buildings for the purposes of the district are hereby confirmed, ratified, validated, and declared legally effective. This shall include all acts and proceedings of the governing board of the district and of any person, public officer, board, or agency, heretofore done or taken upon the question of the authorization of the tax rate increase or the leasing. Whenever an election has been called and held prior to the effective date of the enactment of this section, for the purpose of submitting to the voters of any district the question of an increase in the maximum tax rate of the district and for the leasing of a building or buildings for the purposes of the district, the election and all proceedings attendant thereon are hereby confirmed, ratified, validated, and declared to be legally effective for all purposes, and the tax rate increase, if authorized by the required vote and in accordance with the proceedings heretofore taken, shall be a legal and valid authorization, in accordance with its terms, and any tax heretofore or hereafter levied pursuant to that authorization shall be legal and valid. The foregoing provisions of this section shall operate to supply any legislative authorization that may be necessary to validate the acts and proceedings heretofore taken which the Legislature could have supplied or provided for in this article. The foregoing provisions of this section shall be limited to the validation of acts and proceedings to the extent to which the same can be effectuated under the California and United States Constitutions. The foregoing provisions of this section shall not operate to confirm, ratify, validate, or legalize any act, proceeding, or other matter the legality of which is being contested or inquired into in any legal proceeding now pending and undetermined or which may be pending and undetermined during the period of 30 days from and after the effective date of this section, and shall not operate to confirm, ratify, validate, or legalize any act, proceeding, or other matter which has heretofore been determined in any legal proceeding to be illegal, void, or ineffective.
In any school district in which an election was called and held prior to the effective date of this section in which the voters of the district authorized an increase in the maximum tax rate of the district and the leasing of a building or buildings for the purposes of the district, the law in effect at the date of the school district election shall govern the terms of the lease, the terms of the sale of related bonds, notes, and warrants, and the school district’s maximum bonded indebtedness, and Section 17423 shall not be applicable to the school district’s entry into any lease or agreement authorized at an election called and held prior to the effective date of this section.
district tax rate increase building lease authorization school district election validation of proceedings legally effective actions governing board acts tax rate election district bonded indebtedness ratified and confirmed lease terms pending legal proceedings California Constitution United States Constitution illegal proceedings exception Section 17423
(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
This law says that if community school students are in leased buildings that don't meet certain regulatory standards, they're considered 'unhoused' when it comes to deciding who gets portable classrooms first. Essentially, schools in non-compliant leased spaces get priority for these portable classrooms.
The State Allocation Board shall consider community school pupils housed in leased facilities that do not conform to the requirements of Part 2 (commencing with Section 2-101), Part 3 (commencing with Section 3-089-1), Part 4 (commencing with Section 4-403), and Part 5 (commencing with Section 5-102), of Title 24 of the California Code of Regulations as unhoused for the purposes of determining priority for the leasing of portable classrooms pursuant to Chapter 14 (commencing with Section 17085) of Part 10.
community school pupils leased facilities unhoused portable classrooms State Allocation Board priority determination building compliance Title 24 regulations leased school buildings California community schools educational facilities classroom leasing student housing priorities
(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
This law explains that a school district's governing board can lease or buy property in a neighboring school district for things like garages or warehouses. They have the same rights to sell that property as they would if it were within their own district. However, they can't use eminent domain to seize the property, and any purchases must be approved by the governing board of the district where the property is located.
The governing board of a school district may lease property in an adjoining school district for garage, warehouse, or other utility purposes or may purchase property in an adjoining school district for those purposes and may dispose of the property in the same manner as property within the boundary of the district is purchased and disposed of.
The power of eminent domain shall not be applicable and the acquisitions by purchase shall be subject to the approval of the governing board of the school district in which the property is located.
school district leasing adjoining school district property purchase utility purposes eminent domain exclusion property disposal governing board approval neighboring school district garage property warehouse property property acquisition leasing authority school district property management
(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
This law section applies to certain school districts in California where voters have approved an increase in the maximum tax rate specifically to lease school facilities. It allows these school districts to lease a school building from a California nonprofit organization using funds from this tax increase. The price that the nonprofit pays to buy the school must not be more than the actual cost of building it, including interest paid on any borrowed money for construction. An independent accountant must confirm these costs and the nonprofit can rely on this verification. Districts that have approved such tax increases before this law took effect can also use these lease provisions.
(a)CA Education Code § 17429(a) This section shall apply only to a school district in which the electorate authorizes an increase in the maximum tax rate of the district pursuant to this article for the lease of one or more schools, and there exists at the time of the election on a site owned by the district a school facility not owned by the district meeting all of the requirements of Article 3 (commencing with Section 17280) of this chapter, which site and school facility are designated and described in the ballot proposition approved by the voters.
(b)CA Education Code § 17429(b) Notwithstanding any other law, a school district may lease from a California nonprofit corporation an existing school and may pay rentals therefor from funds derived from the increase in the maximum tax rate approved by the voters at an election. The purchase price of the school paid by the nonprofit corporation to the owners of the school shall not exceed the actual audited cost of construction thereof including actual interest paid on money borrowed to finance such construction. Prior to the purchase of the school by the nonprofit corporation, an independent certified public accountant shall be retained by the school district to verify the actual cost of construction and any interest paid to finance the construction, and the nonprofit corporation may conclusively rely upon any certificate or opinion setting forth the actual cost of construction and the interest prepared by the independent certified public accountant.
(c)CA Education Code § 17429(c) A school district, the electorate of which, prior to the effective date of this section, authorized an increase in the maximum tax rate in the manner, for the purposes, and under the circumstances specified in subdivision (a), may avail itself of the authority afforded by subdivision (b).
school district tax increase lease school facility California nonprofit corporation funding from tax rate increase actual audited cost of construction verify construction costs electorate approval independent certified public accountant site owned by district ballot proposition rentals from tax funds interest on borrowed money pre-election school facility nonprofit purchase price voter authorization
(Added by Stats. 1996, Ch. 277, Sec. 3. Effective January 1, 1997. Operative January 1, 1998.)
