SECTIONS 17000-17009.5 - California Statutes

EDUCATION CODE

SECTION 17000-17009.5

17000. This chapter may be cited as the "Leroy F. Greene State
School Building Lease-Purchase Law of 1976."

17001. (a) The Legislature hereby declares that it is in the
interest of the state and the people thereof for the state to
reconstruct, remodel, or replace existing school buildings that are
educationally inadequate or that do not meet present-day structural
safety requirements, and to acquire new schoolsites and buildings for
the purpose of making them available to local school districts for
the pupils of the public school system, that system being a matter of
general concern inasmuch as the education of the children of the
state is an obligation and function of the state.
(b) In order to expedite the elimination of the use of
nonconforming school buildings that are used or designed to be used
for instructional purposes or intended to be entered by pupils, the
State Allocation Board may establish criteria that considers special
circumstances under which funds may be allocated for the
reconstruction of nonconforming buildings. The funds allocated in
accordance with this section shall not exceed 75 percent of the cost
of facility replacement.
(c) It is the intent of the Legislature that all construction
projects be designed and constructed to maximize the use of
educational technology, as set forth in subdivision (b) of Section
17002.

17002. The following terms wherever used or referred to in this
chapter, shall have the following meanings, respectively, unless a
different meaning appears from the context:
(a) "Apportionment" means a reservation of funds necessary to
finance the cost of any project approved by the board for lease to an
applicant school district.
(b) "Board" means the State Allocation Board.
(c) "Cost of project" includes, but is not limited to, the cost of
all real estate property rights, and easements acquired, and the
cost of developing the site and streets and utilities immediately
adjacent thereto, the cost of construction, reconstruction, or
modernization of buildings and the furnishing and equipping,
including the purchase of educational technology hardware, of those
buildings, the supporting wiring and cabling, and the technological
modernization of existing buildings to support that hardware, the
cost of plans, specifications, surveys, and estimates of costs, and
other expenses that are necessary or incidental to the financing of
the project. For purposes of this section, "educational technology
hardware" includes, but is not limited to, computers, telephones,
televisions, and video recording equipment.
(d) (1) "Good repair" means the facility is maintained in a manner
that assures that it is clean, safe, and functional as determined
pursuant to a school facility inspection and evaluation instrument
developed by the Office of Public School Construction and approved by
the board or a local evaluation instrument that meets the same
criteria. Until the school facility inspection and evaluation
instrument is approved by the board, "good repair" means the facility
is maintained in a manner that assures that it is clean, safe, and
functional as determined by the interim evaluation instrument
developed by the Office of Public School Construction or a local
evaluation instrument that meets the same criteria as the interim
evaluation instrument. The school facility inspection and evaluation
instrument and local evaluation instruments that meet the minimum
criteria of this subdivision shall not require capital enhancements
beyond the standards to which the facility was designed and
constructed. In order to provide that school facilities are reviewed
to be clean, safe, and functional, the school facility inspection and
evaluation instrument and local evaluation instruments shall include
at least the following criteria:
(A) Gas systems and pipes appear and smell safe, functional, and
free of leaks.
(B) Mechanical systems, including heating, ventilation, and
air-conditioning systems, satisfy the following:
(i) Are functional and unobstructed.
(ii) Appear to supply adequate amount of air to all classrooms,
work spaces, and facilities.
(iii) Maintain interior temperatures within normally acceptable
ranges.
(C) Doors and windows are intact, functional, and open, close, and
lock as designed, unless there is a valid reason they should not
function as designed.
(D) Fences and gates are intact, functional, and free of holes and
other conditions that could present a safety hazard to pupils,
staff, or others. Locks and other security hardware function as
designed.
(E) Interior surfaces, including walls, floors, and ceilings, are
free of safety hazards from tears, holes, missing floor and ceiling
tiles, torn carpet, water damage, or other cause. Ceiling tiles are
intact. Surfaces display no evidence of mold or mildew.
(F) Hazardous and flammable materials are stored properly. No
evidence of peeling, chipping, or cracking paint is apparent. No
indicators of mold, mildew, or asbestos exposure are evident. There
is no apparent evidence of hazardous materials that may pose a threat
to the health and safety of pupils or staff.
(G) Structures, including posts, beams, supports for portable
classrooms and ramps, and other structural building members appear
intact, secure, and functional as designed. Ceilings and floors are
not sloping or sagging beyond their intended design. There is no
visible evidence of severe cracks, dry rot, mold, or damage that
undermines structural components.
(H) Fire sprinklers, fire extinguishers, emergency alarm systems,
and all emergency equipment and systems appear to be functioning
properly. Fire alarm pull stations are clearly visible. Fire
extinguishers are current and placed in all required areas, including
every classroom and assembly area. Emergency exits are clearly
marked and unobstructed.
(I) Electrical systems, components, and equipment, including
switches, junction boxes, panels, wiring, outlets, and light
fixtures, are securely enclosed, properly covered and guarded from
pupil access, and appear to be working properly.
(J) Lighting appears to be adequate and working properly. Lights
do not flicker, dim, or malfunction, and there is no unusual hum or
noise from light fixtures. Exterior lights onsite appear to be
working properly.
(K) No visible or odorous indicators of pest or vermin infestation
are evident.
(L) Interior and exterior drinking fountains are functional,
accessible, and free of leaks. Drinking fountain water pressure is
adequate. Fountain water is clear and without unusual taste or odor,
and moss, mold, or excessive staining is not evident.
(M) Restrooms and restroom fixtures satisfy the following:
(i) Are functional.
(ii) Appear to be maintained and stocked with supplies regularly.
(iii) Appear to be accessible to pupils during the schoolday.
(iv) Appear to be in compliance with Section 35292.5.
(N) The sanitary sewer system controls odor as designed, displays
no signs of stoppage, backup, or flooding, in the facilities or on
school grounds, and appears to be functioning properly.
(O) Roofs, gutters, roof drains, and downspouts appear to be
functioning properly and are free of visible damage and evidence of
disrepair when observed from the ground inside and outside the
building.
(P) The school grounds do not exhibit signs of drainage problems,
such as visible evidence of flooded areas, eroded soil, water damage
to asphalt playgrounds or parking areas, or clogged storm drain
inlets.
(Q) Playground equipment and exterior fixtures, seating, tables,
and equipment are functional and free of significant cracks, trip
hazards, holes, deterioration that affects functionality or safety,
and other health and safety hazards.
(R) School grounds, fields, walkways, and parking lot surfaces are
free of significant cracks, trip hazards, holes, deterioration that
affects functionality or safety, and other health and safety hazards.
(S) Overall cleanliness of the school grounds, buildings, common
areas, and individual rooms demonstrates that all areas appear to
have been cleaned regularly and are free of accumulated refuse and
unabated graffiti. Restrooms, drinking fountains, and food
preparation or serving areas appear to have been cleaned each day
that the school is in session.
(2) (A) On or before January 1, 2007, the Office of Public School
Construction shall develop the school facility inspection and
evaluation instrument and instructions for users. The school facility
inspection and evaluation instrument and local evaluation
instruments that meet the minimum criteria of this subdivision shall
include a system that will evaluate each facility, based on the
criteria listed in paragraph (1), on a scale of "good," "fair," or
"poor," as developed by the Office of Public School Construction, and
provide an overall summary of the conditions at each school on a
scale of "exemplary," "good," "fair," or "poor."
(B) On or before July 1, 2007, the Office of Public School
Construction, in consultation with county offices of education, shall
define objective criteria for determining the overall summary of the
conditions of schools.
(C) For purposes of this paragraph, "users" means local
educational agencies that participate in either of the programs
established pursuant to this chapter, Chapter 12.5 (commencing with
Section 17070.10), or Section 17582.
(e) "Lease" includes a lease with an option to purchase.
(f) "Project" means the facility being constructed or acquired by
the state for rental to the applicant school district and may include
the reconstruction or modernization of existing buildings,
construction of new buildings, the grading and development of sites,
acquisition of sites therefor and any easements or rights-of-way
pertinent thereto or necessary for its full use including the
development of streets and utilities.
(g) "Property" includes all property, real, personal or mixed,
tangible or intangible, or any interest therein necessary or
desirable for carrying out the purposes of this chapter.

17002.1. As used in this chapter, construction shall include, but
not be limited to, reconstruction, modernization, and replacement of
facilities, and the performance of deferred maintenance activities on
facilities pursuant to rules and regulations regarding those
activities as may be adopted by the board. Funding for deferred
maintenance activities for a facility may be approved under this
chapter without regard to whether project funding for the
reconstruction, modernization, or replacement of the facility is
prohibited under Section 17021.

17003. The Director of General Services shall administer this
chapter and shall provide such assistance to the board as it may
require.

17004. The State Allocation Board is continued in existence for the
purpose of this chapter. The members of the board and the Members of
the Legislature meeting with the board shall receive no compensation
for their services under this chapter but shall be reimbursed for
their actual and necessary expenses incurred in connection with the
performance of their duties hereunder, to be paid as an
administrative expense referred to herein.

17005. In addition to all other powers and duties as are granted
the board by this chapter, other statute, or the Constitution, the
board shall have power to:
(a) Establish any qualifications not in conflict with other
provisions of this chapter, as it deems will best serve the purposes
of this chapter, for determining the eligibility of school districts
to lease projects under this chapter.
(b) Establish any procedures and policies in connection with the
administration of this chapter as it deems necessary.
(c) Adopt any rules and regulations for the administration of this
chapter, requiring any procedure, forms, and information, as it may
deem necessary.
(d) Construct and control any project.
(e) Fix rates, rents, or other charges for the use of any project
acquired, constructed, rehabilitated, equipped, furnished, or for
services rendered in connection with that project, and to alter,
change, or modify the same at its pleasure, subject to any
contractual obligation that may be entered into by the board with
respect to the fixing of the rates, rents, or charges.

17005.1. On or before June 30, 1981, and on or before June 30 of
each year thereafter, the board shall approve a plan specifying (a)
the amount of funds to be allocated in the forthcoming fiscal year
for the purposes of deferred maintenance activities and (b) the
manner in which such funds shall be allocated to applicant districts.

17005.3. (a) Any school district with an average daily attendance
of less than 2,501 pupils may apply to the board for a loan to cover
the project activities of the first or second phase, as those phases
were defined on July 1, 1993, of a project funded under this chapter.
The loan shall not be utilized for the purchase of real property and
shall be repaid by the school district either through a dedication
of fees or charges levied pursuant to Section 17620 until the loan is
repaid or upon receiving the project funding at the construction
phase, but, in any event, the loan shall be repaid within five years
from the date on which the board makes the loan. In addition to the
other methods of repayment specified in this subdivision, the board
may also notify the Controller if a school district is 90 days late
in making loan repayments, in which case the Controller shall reduce
the apportionments to which the school district is otherwise entitled
under Section 42238 as necessary to recover past due payments and
any current payments.
(b) The board may make loans under this section to the extent that
the board determines that funds are available for that purpose. The
total annual maximum funds that may be loaned under this section is
ten million dollars ($10,000,000) per fiscal year.
(c) The board may make loans under this section only for those
projects and phases that have met all of the eligibility standards of
the board and receive approval for an apportionment, but for which
apportionment funds are not available. In any event, the amount of
the loan shall not exceed the amount that would have been eligible
for apportionment.

17005.5. The board may provide a loan to any school district from
the proceeds of the sale of bonds pursuant to the School Facilities
Bond Act of 1992, and the 1992 School Facilities Bond Act, to provide
aid for school districts in accordance with this chapter, when those
proceeds are available in the State School Building Lease-Purchase
Fund. In order to provide a loan, both of the following conditions
shall be met:
(a) The amount of the loan shall not exceed the amount set forth
in legislation enacted that specifies the loan amount.
(b) The loan shall be repaid pursuant to a schedule set forth in
legislation enacted that specifies a loan repayment schedule.

17006. (a) The board shall not enter into any lease with respect to
an application for replacing inadequate school facilities unless it
first has investigated and made a finding, or the governing board of
a self-certifying district, as applicable, first certifies that it
has investigated and made a finding, consistent with guidelines
adopted by the board, that one or both of the following conditions
exists:
(1) It would not be economical or good practice to rehabilitate
those facilities.
(2) The school facilities are inadequate due to their
susceptibility to repeated flooding. The board shall develop and
adopt regulations that define inadequacy of school facilities on the
basis of susceptibility to repeated flooding. The building area of
any facility found to be inadequate pursuant to this subdivision
shall be excluded, for the purposes of any application for the
replacement of any facility, from the calculation under this chapter
of the area of adequate school construction existing in the applicant
school district.
(b) The self-certifying district shall maintain documentation of
each investigation and finding it conducts pursuant to subdivision
(a) as may be required by the board, and the investigation and
finding shall be subject to subsequent audit as the board may direct.
(c) For purposes of this chapter, a "self-certifying district" as
to any project to be funded under this chapter, is an applicant
district that provides 50 percent or more of the cost of the project
from funding sources other than any state program administered by the
board.

17007. The State School Building Finance Committee, created by
Section 15909 and composed of the Governor, Controller, Treasurer,
Director of Finance, and Director of Education, all of whom shall
serve thereon without compensation and a majority of whom shall
constitute a quorum, is continued in existence for the purpose of
this chapter. Two Members of the Senate appointed by the Senate
Committee on Rules, and two Members of the Assembly appointed by the
Speaker, shall meet with and advise the committee to the extent that
the advisory participation is not incompatible with their respective
positions as Members of the Legislature.
For purposes of this chapter the Members of the Legislature shall
constitute an interim investigation committee on the subject of this
chapter and as an interim investigating committee shall have the
powers and duties imposed upon interim investigating committees by
the Joint Rules of the Senate and the Assembly. The Director of
General Services shall provide any assistance to the committee that
it may require. The Attorney General shall be the legal adviser of
the committee.

17008. A fund is hereby created in the State Treasury to be known
as the State School Building Lease-Purchase Fund. All money in the
State School Building Lease-Purchase Fund, including any money
deposited in that fund from any source whatsoever, and
notwithstanding Section 13340 of the Government Code, is hereby
continuously appropriated for expenditure pursuant to this chapter.
The State Allocation Board may apportion funds to school districts
for the purposes of this chapter from funds transferred to the State
School Building Lease-Purchase Fund from any source.

17008.3. (a) The board may establish a revolving loan account
within the State School Building Lease-Purchase Fund, and may
allocate from the fund to that account those amounts it determines to
be necessary for the purposes of this section.
(b) The board may apportion to any school district that submits to
the board a statement of its intent to subsequently file a project
application under this chapter, a loan for the purpose of advance
planning and related administrative costs pursuant to the preparation
of that application. The loan amount shall not exceed 3 percent of
the estimated project cost, as determined pursuant to the building
cost standards established under this chapter.
(c) If, within a period of 24 months following the receipt of any
loan amounts under this section, the project for which those advance
planning funds were provided has not been found by the board to be
qualified for funding under this chapter, the board shall so notify
the Controller, who shall reduce the apportionments to which the
district is otherwise entitled under Section 42238 as necessary to
repay the amount of all loans provided under this section, over such
period of time as the board finds to be reasonable. The Controller
shall transfer the amount of all apportionment reductions imposed
under this subdivision to the revolving loan account established
under this section.
(d) The repayment of loan amounts received under this section by
school districts other than those described under subdivision (c)
shall be accomplished by the withholding, as determined by the board,
of apportionment funds that would be available to the district for
purposes of the project for which the district received funding
approval under this chapter.

17008.5. The board may approve projects and make apportionments in
amounts not exceeding those funds on deposit in the State School
Building Lease-Purchase Fund plus any amount of bonds authorized by
the State School Building Finance Committee but not yet sold by the
Treasurer.
Disbursements may be made under any apportionment made from any
funds in the State School Building Lease-Purchase Fund, irrespective
of whether there exists at the time of the disbursement a sufficient
amount in the State School Building Lease-Purchase Fund to permit
payment in full of all apportionments previously made. However, no
disbursement shall be made from any funds required by law to be
transferred to the General Fund.

17009. (a) The county superintendent of schools or county office of
education shall be eligible to receive any funds from the portion of
the proceeds of the sale of any state bonds that are set aside for
the construction, reconstruction, or modernization of, or deferred
maintenance on facilities to house special education pupils who are
defined as severely handicapped and eligible pursuant to Section
17047.
(b) Subdivision (a) is only applicable if the county
superintendent of schools or county office of education has filed
with the State Allocation Board a regionalized facility plan, as
developed and approved by the State Department of Education, that
covers the county or special education local planning agency area of
responsibility.

17009.3. The board may not approve any projects pursuant to this
chapter on and after November 4, 1998.

17009.5. (a) Except as set forth in Section 17052, on and after
November 4, 1998, the board shall only approve and fund school
facilities construction projects pursuant to Chapter 12.5 (commencing
with Section 17070.10).
(b) A school district with a first priority project that has
received a construction approval by the Department of General
Services, Division of the State Architect, or a joint-use project
approval by the board, prior to November 4, 1998, for growth or
modernization pursuant to this chapter shall receive funding pursuant
to this chapter for all unfunded approved project costs as it would
have received under this chapter, and the increased capacity assigned
to the project shall be included in calculating the district's
capacity pursuant to Chapter 12.5 (commencing with Section 17070.10).
Funds received for projects described in this subdivision shall
constitute the state's final and full contribution to these projects.
The board shall not consider additional project funding except when
otherwise authorized under Chapter 12.5 (commencing with Section
17070.10).
(c) A school district with a second priority project that has
received a construction approval by the Department of General
Services, Division of the State Architect prior to November 4, 1998,
for growth or modernization pursuant to this chapter shall elect to
do either of the following:
(1) Withdraw the application under this chapter, submit an initial
report and application pursuant to Chapter 12.5 (commencing with
Section 17070.10), and receive per pupil allocations as set forth in
Chapter 12.5 (commencing with Section 17070.10). If the district
withdraws the application, any funds previously allocated under this
chapter for the project shall be offset from the first grant to the
district under Chapter 12.5 (commencing with Section 17070.10).
(2) Convert the second priority project approved under this
chapter to a first priority status and receive funds in accordance
with this chapter.
(d) Notwithstanding priorities established pursuant to Chapter
12.5 (commencing with Section 17070.10), projects authorized for
funding as set forth in this section shall be funded by the board
pursuant to this chapter prior to funding other projects pursuant to
Chapter 12.5 (commencing with Section 17070.10).
(e) For purposes of funding priority for modernization grants
under Chapter 12.5 (commencing with Section 17070.10), a district
that applies under subdivision (b) or paragraph (1) of subdivision
(c) shall retain its original project approval date.
(f) Notwithstanding Section 17017.1, West Contra Costa Unified
School District shall be eligible for state facilities funds
beginning November 4, 1998.
(g) The State Allocation Board shall adopt regulations to ensure
that an appropriate offset is made from funds approved pursuant to
this chapter, for funds awarded to school districts pursuant to
Chapter 12 (commencing with Section 17000) prior to November 4, 1998.