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SB-1017 School facilities: proceeds from sale or lease of surplus property: affordable rental housing facilities.(2019-2020)

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Date Published: 02/14/2020 09:00 PM
SB1017:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 1017


Introduced by Senator Portantino

February 14, 2020


An act to amend Section 17456 of the Education Code, relating to school facilities.


LEGISLATIVE COUNSEL'S DIGEST


SB 1017, as introduced, Portantino. School facilities: proceeds from sale or lease of surplus property: affordable rental housing facilities.
Existing law exempts certain transactions from the requirements that otherwise apply to the sale or lease of real property by a school district if certain conditions are met, including that the financing proceeds obtained by the school district pursuant to the transaction are expended solely for capital outlay purposes, which are defined to include the construction, reconstruction, or renovation of rental housing facilities for school district employees.
This bill would require rental housing facilities for school district employees funded by proceeds realized under this provision to be affordable. The bill would additionally authorize, for the exemption from the requirements that would otherwise apply to this sale or lease and its proceeds, one-time capital expenditures, as specified, the payment of pension obligations of that school district, the placement of funds in the school district’s general fund reserve, and the offset of school district costs for special needs pupils, from financing proceeds obtained from the sale or lease of real property that will be used to construct new affordable rental housing facilities for school district employees.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 17456 of the Education Code is amended to read:

17456.
 Notwithstanding Section 17455, Sections 17455 and 17462.3, the sale by the governing board of a school district of any real property belonging to the school 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 school district and the use of the proceeds of that sale or lease, shall not be subject to any other provision of this chapter, to Article 5 (commencing with Section 17485), 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.
(b) (1) In the case of the sale of school district property pursuant to this section, the school 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 school district property pursuant to this section, the school 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) (1)The financing proceeds obtained by the school district pursuant to the transaction described in this section are expended solely for capital for either or both of the following purposes:
(1) Capital outlay purposes, including the acquisition of real property for intended use as a schoolsite and the construction, reconstruction, and renovation of school facilities.
(2) For any or all of the purposes set forth in subparagraphs (A) to (D), inclusive. This paragraph only applies if the financing proceeds to be used for purposes set forth below are obtained from the sale or lease of real property that will be used to construct new affordable rental housing facilities for school district employees within the meaning of subdivision (d):
(A) One-time capital expenditures. Proceeds to be used under this subparagraph for deferred maintenance shall be placed in a restricted portion of the school district’s general fund.
(B) Payment, from a fund established exclusively for this purpose, of pension obligations of that school district.
(C) Placement in the school district’s general fund reserve.
(D) To offset the school district’s costs for special needs pupils.

(2)

(d) For purposes of this section, the construction, reconstruction, or renovation of affordable rental housing facilities for school district employees constitutes a permissible capital outlay expenditure of the financing proceeds obtained by the school district.