SECTIONS 17010-17039.2 - California Statutes

EDUCATION CODE

SECTION 17010-17039.2

17010. The board may construct any project, and may acquire all
property necessary therefor, on any terms and conditions as it may
deem advisable. When any part of the work is to be done or performed
by any public body or the United States jointly or in conjunction
with the board, the portion of the cost of the project to be borne by
the board may be turned over to the government of the United States
or to any other public body, to be expended by it in the acquisition,
construction or completion of the project.

17011. The board may use for the payment of the costs of
acquisition, construction or completion of any project any funds made
available to the board by the State of California or any other funds
provided by the board from any source, to be expended for
accomplishing the purposes set forth in this chapter, together with
the proceeds of bonds issued and sold pursuant to the State School
Building Lease-Purchase Bond Law of 1976.

17012. The board has full charge of the acquisition, construction,
completion, and control of all projects authorized by them and may
proceed with such work forthwith.

17013. Title to all property acquired, constructed, or improved by
the board and the revenues and income therefrom, is in the State of
California. All such property, and the income therefrom are exempt
from all taxation by the State of California or by any county, city
and county, city, district, political subdivision or public
corporation thereof.

17014. (a) The board shall require the school district to make all
necessary repairs, renewals, and replacements to ensure that a
project is at all times kept in good repair, working order, and
condition. All costs incurred for this purpose shall be borne by the
school district.
(b) In order to ensure compliance with subdivision (a) and
encourage applicants to maintain all buildings under their control,
the board shall require the applicant to do all of the following
prior to the approval of a project:
(1) Establish a restricted account within the general fund of the
school district for the exclusive purpose of providing moneys for
regular maintenance and routine repair of school buildings, according
the highest priority to funding for the purpose set forth in
subdivision (a).
(2) Agree to deposit into the account established pursuant to
paragraph (1), in each fiscal year for the term of the lease
agreements of all projects constructed under this chapter, a minimum
amount equal to or greater than 2 percent of the general fund budget
of the applicant district for that fiscal year. This paragraph is
applicable only to the following districts:
(A) High school districts with average daily attendance greater
than 300.
(B) Elementary school districts with average daily attendance
greater than 900.
(C) Unified school districts with average daily attendance greater
than 1,200.
(c) For each project funded after July 1, 1998, the board shall
require the applicant school district governing board to certify, as
part of the annual budget process of the school district and
beginning in the fiscal year in which the project is funded by the
state, that a plan has been prepared for completing major
maintenance, repair, and replacement requirements for the project.
For purposes of this subdivision, the term "major maintenance,
repair, and replacement" means roofing, siding, painting, floor and
window coverings, fixtures, cabinets, heating and cooling systems,
landscaping, fences, and other items designated by the governing
board of the school district. The board shall require the school
district's governing board to certify that the plan includes and is
being implemented as follows:
(1) Identification of the major maintenance, repair, and
replacement needs for the project.
(2) Specification of a schedule for completing the major
maintenance, repair, and replacement needs.
(3) Specification of a current cost estimate for the scheduled
major maintenance, repair, and replacement needs.
(4) Specification of the school district's schedule for funding a
reserve to pay for the scheduled major maintenance, repair, and
replacement needs.
(5) Review of the plan annually, as a part of the annual budget
process of the school district, and update, as needed, the major
maintenance, repair, and replacement needs, the estimates of expected
costs, and any adjustments in funding the reserve.
(6) Availability for public inspection of the original plan, and
all updated versions of the plan, at the office of the superintendent
of the school district during the working hours of the school
district.
(7) Provision in the annual budget of the school district of a
provision that states the total funding available in reserve for
scheduled major maintenance, repair and replacement needs as
specified in the updated plan, and an explanation if this amount is
less than that specified in the updated plan. The reserve shall be
maintained in the restricted account established pursuant to
subdivision (b).
(d) For purposes of this section, "good repair" has the same
meaning as specified in subdivision (d) of Section 17002.

17015. The board shall require the school district to insure
against public liability or property damage in connection with any
project.

17016. (a) The board, by the adoption of rules, may establish
priorities for the construction and leasing of projects to those
school districts the pupils of which will benefit most. The board may
make exceptions from established priorities when it determines that
to do so will benefit the pupils affected.
(b) The board may adopt rules establishing priorities for the
acquisition and leasing of portable classrooms to county
superintendents of schools that will most benefit pupils needing a
county community school. The board shall require each county
superintendent of schools who leases portable classrooms pursuant to
Section 17017.2 to demonstrate that the portable classrooms are
utilized solely for operation of a county community school.

17017. Each school district that desires to lease a project for a
grade level maintained by it, shall submit through its governing
board an application therefor to the board in the form and number of
copies that the board may prescribe. Immediately upon receipt of an
application in the prescribed form accompanied by the required
estimate of cost, a copy thereof shall be transmitted by the board to
the Director of General Services.
Each copy of the application shall be accompanied by a statement
of the estimated cost of the project certified by an architect or
structural engineer, and by layout plans showing the entire
construction project.
Before the board approves an application for a construction
project, it shall establish cost standards for all new construction
included therein. The cost standards shall not exceed typical
comparable new construction by school districts in the same area, or
if there has been no new construction by school districts in the
area, the cost standards shall not exceed the reasonable current cost
of similar construction in the area. The board shall determine such
typical current costs or such reasonable current costs. In applying
cost standards the board shall take into account the size and type of
the construction proposed and may make any deviations that in its
judgment are justified. When a standard has been set by the board to
cover any individual apportionment, no project shall be approved by
the board in excess of the standard, unless the board shall find that
in view of a subsequent increase in building costs an adjustment is
warranted. No contract shall be let for a construction project which
has been approved by the board if the cost exceeds the construction
cost standards fixed by the board under this section for the new
construction.

17017.1. (a) The West Contra Costa Unified School District shall be
ineligible for any state school facilities funding for a period of
five years from June 30, 1993, or until the date of the final payment
on its entire debt to the state, including both principal and
interest, whichever is later.
Notwithstanding the above, the school district may continue to
receive funding for deferred maintenance activities and for those
purposes specified in subdivision (b).
(b) The State Allocation Board shall approve funding for only
those Richmond Unified School District State School Building
Lease-Purchase Program projects which were approved for Phase II
apportionments on or before April 1, 1993. All West Contra Costa
Unified School District projects may be considered for funding by the
State Allocation Board either in five years or after the complete
repayment of the loan established under Section 41471, whichever is
later.
(c) In the event that the State Allocation Board approves the
replacement of the existing Belding Elementary School with funds
currently allocated for the modernization of the Harry Ells Middle
School and the Samuel Gompers Middle School, that approval shall be
considered allowable exemption under subdivision (b). Authority for
this exemption is repealed on November 1, 1993, if approval of Phase
III construction apportionment for the replacement of the existing
Belding Elementary School has not occurred.
In allowing for the possibility of this exemption, it is not the
intent of the Legislature to interfere in any way with the
decisionmaking authority and process of the State Allocation Board.
It is the intent of the Legislature that a proposal to replace the
existing Belding Elementary School with funds currently allocated to
the modernization of the Harry Ells Middle School and the Samuel
Gompers Middle School be submitted to the State Allocation Board
under its existing procedures and policies. The State Allocation
Board's decision shall be based on the merits of the proposal, not
this exemption authority. Specifically, this subdivision may not be
used as justification for approval of a project to replace the
Belding Elementary School.
(d) Any properties or facilities designated by the school district
to be used for other than school purposes to generate capital to
repay the outstanding debt shall be ineligible for deferred
maintenance funding. Should any facilities receive funding for those
purposes after the enactment of this legislation, and later be
declared available for purposes intended to repay the debt, the value
of state funding received for deferred maintenance at that facility
shall be deducted from ongoing or future deferred maintenance
projects in the district.
If no projects are available for offset of apportionments, the
value of the deferred maintenance performed will be added to the
outstanding loan balance.

17017.2. (a) The board may own, have maintained, and lease portable
classrooms to any county superintendent of schools who provides a
county community school program, as defined in Section 1986. These
portable classrooms shall be adequately equipped to meet the
educational needs of these pupils, including, but not limited to,
sinks and restroom facilities.
(b) The board, with the advice of the Superintendent of Public
Instruction, may have portable classrooms constructed, furnished, or
equipped, and may otherwise require whatever work is necessary to
place portable classrooms for county community schools where needed,
including the acquisition and preparation of sites. The board shall,
in consultation with the Superintendent of Public Instruction,
establish standards for the acquisition of land, with land
acquisition limited to no more than 10,000 square feet per portable
classroom, waivable by the board only as needed to meet local zoning
and land use requirements or health and safety considerations.
(c) A county superintendent of schools who desires to lease
portable classrooms shall have prepared for the board's use
performance specifications for portable classrooms and bids for their
construction that can be solicited from more than one responsible
bidder.
(d) No portable classroom shall be made available to a county
superintendent of schools unless the county superintendent of schools
furnishes evidence, satisfactory to the board, that the county
superintendent of schools has no other facility available for rental,
lease, or purchase in the geographic service area that is
economically or otherwise feasible.
(e) If at any time the board determines that a lessee's need for
particular portable classrooms that were made available to the lessee
pursuant to this chapter has ceased, the board may take possession
of the portable classrooms and may lease them to other county
superintendents of schools or, if there is no longer a need for
portable classrooms, the board may dispose of them to public or
private parties in the manner it deems to be in the best interest of
the state.
(f) This section does not limit the authority of a county
superintendent of schools to provide facilities without assistance
from the board for pupils who are enrolled in a county community
school.

17017.5. (a) The board may approve, in whole or in part, an
application submitted by a school district under Section 17017 or
17020 in an amount not exceeding the amount applied for as the board
may deem appropriate.
(b) The board may, upon approval of the application, in whole or
in part, and subsequently from time to time, make apportionments of
project funding not exceeding in the aggregate the total amount
determined by the board under subdivision (a) for the portion or
portions of the project for which the board determines the district
is ready to proceed. Subsequent to the board's approval of a project,
any requirement imposed by the board that the compliance of the
project with building cost or area standards and related guidelines
adopted by the board be established as a condition of the
apportionment of funds under this chapter shall be satisfied, as to a
project for a self-certifying district, by the certification by the
district of that compliance. In addition, the board shall not require
that estimates of average daily attendance be updated as to that
project more often than once every 12 months subsequent to the board'
s approval of the project. The self-certifying district shall
maintain documentation of the compliance certified pursuant to this
subdivision as may be required by the board, and that compliance
shall be subject to subsequent audit as the board may direct.
(c) Whenever a district files an application, the board shall
require the district to submit to the board and the State Department
of Education a five-year plan for construction and rehabilitation of
school facilities, and to obtain the written approval of the
department that the plan complies with standards that are established
by the department for this purpose to ensure that the applicant
district has adequately anticipated its school facilities needs and
identified funding sources as necessary to meet those needs. The plan
may be adjusted to reflect adjusted growth targets.
(d) The board shall not approve any application under this chapter
after January 1, 1990, unless accompanied by a study examining the
feasibility of implementing in the district a year-round multitrack
educational program that is designed to increase pupil capacity in
the district or in overcrowded high school attendance areas by at
least 20 percent.
(e) The board may waive subdivision (d) or the requirements of
Section 17017.7, or both, if a school district demonstrates that
these requirements will result in a particular educational or
financial hardship to the district. Further, the board shall waive
subdivision (d), if it finds that there is clear hardship to a
district due to declining enrollment or no growth.

17017.6. Notwithstanding Section 17017.7, the definition of
"substantial enrollment" set forth in that section shall apply only
to elementary and unified school districts. For a high school
district, "substantial enrollment in multitrack year-round schools,"
for the purposes of Section 17017.7, means that at least 30 percent
of the pupils enrolled in the high school district are enrolled in
multitrack year-round schools, or that 40 percent of the pupils
enrolled in public school in kindergarten and grades 1 to 12,
inclusive, within the boundaries of the high school attendance area
for which the school district is applying for new facilities are
enrolled in multitrack year-round schools. In addition, a high school
district shall be deemed to have a substantial enrollment in
multitrack year-round schools for purposes of Section 17017.7 if, at
the option of the district, the entire high school to be constructed
is to operate on a multitrack year-round basis.

17017.7. (a) Notwithstanding any other provision of this chapter,
priority for the approval of project funding for new construction
under this chapter, shall be as follows:
(1) First priority for construction funds shall be given to school
districts with a substantial enrollment in multitrack year-round
schools requesting state funding for 50 percent of the cost of a
project that would be constructed to operate on a multitrack
year-round basis.
(2) Second priority shall be for school districts with a
substantial enrollment in multitrack year-round schools requesting
state funding for the entire cost of a project that would be
constructed to operate on a multitrack year-round basis.
(3) Third priority shall be for school districts without a
substantial enrollment in multitrack year-round schools requesting
state funding for 50 percent of the cost of a project to operate on a
multitrack year-round basis.
(4) Fourth priority shall be for school districts without a
substantial enrollment in multitrack year-round schools requesting
state funding for the entire cost of a project that would be
constructed to operate on a multitrack year-round basis.
(5) Fifth priority shall be for school districts with a
substantial enrollment in multitrack year-round schools requesting
state funding for 50 percent of the cost of a project that would not
operate on a multitrack year-round basis.
(6) Sixth priority shall be for school districts with a
substantial enrollment in multitrack year-round schools requesting
state funding for the entire cost of a project that would not operate
on a multitrack year-round basis.
(b) The board shall not restrict the availability of funding for
construction of multitrack year-round schools, from any funding
source available to the State School Building Lease-Purchase Fund,
but shall make approval of project funding for those projects the
first priority in accordance with this section.
(c) "Substantial enrollment," for the purposes of this section,
means enrollment of at least 30 percent of district pupils in
kindergarten and grades 1 to 6, inclusive, or 40 percent of pupils in
kindergarten and grades 1 to 12, inclusive, in the high school
attendance area for which the school district is applying for new
facilities. The calculation set forth in this subdivision, as to a
self-certifying district, shall be made by the district, in
accordance with any standards governing that calculation that are
adopted by the board. The calculation shall be certified by the
district to the board and used by the board for the purposes of this
section. The self-certifying district shall maintain documentation of
the calculation as may be required by the board, and the calculation
shall be subject to subsequent audit as the board may direct. If a
self-certifying district is found by the board to have materially
misrepresented its pupil enrollment pursuant to this subdivision, the
board may impose either or both of the penalties set forth in
paragraphs (1) and (2) of subdivision (b) of Section 17041.2, in
accordance with that section.
(d) "Multitrack year-round school," for purposes of this section,
means a school for which the applicant district demonstrates that
both of the following criteria are satisfied:
(1) The pupils are divided into three or more groups or tracks,
which rotate attendance so that, for a majority of schooldays during
the school year, at least one group or track is not attending the
school while all other groups or tracks are in attendance.
(2) The operation of the school on a multitrack year-round basis
has resulted in an increase in enrollment capacity.
(e) Notwithstanding any other provision of this section, the State
Allocation Board may continue to implement any year-round school
priority provisions for hardships adopted prior to September 1, 1990.

17017.9. (a) Notwithstanding any other provision of law, a project
shall be accorded, subject to subdivision (b), the priority status
that otherwise is accorded under Section 17017.7 to a project for
which state funding is requested for only 50 percent of the cost, if
all of the following conditions are met:
(1) The applicant district documents to the satisfaction of the
board that it has incurred bonded indebtedness in an amount not less
than 95 percent of the bonding capacity of the district. "Bonded
indebtedness" for the purposes of this section includes, but is not
limited to, funding provided pursuant to Chapter 2.5 (commencing with
Section 53311) of Part 1 of Division 2 of Title 5 of the Government
Code.
(2) The applicant district agrees that up to 95 percent of the
unexpended bonding capacity of the district, existing on or after the
date of the district's first application for project funding
pursuant to this section, shall apply toward the cost of projects.
(3) Either of the following apply:
(A) The applicant district agrees that developer fees imposed
pursuant to Section 17620 shall apply toward the cost of projects for
which the district requests state funding pursuant to this chapter,
not to exceed 50 percent of the cost of any project. Fees needed for
interim housing for capital outlay purposes for modernization and new
construction projects, school district administration capital outlay
projects, and capital outlay projects for transportation needs, are
exempt from this requirement.
(B) The applicant is a school district with an average daily
attendance of 2,500 or less.
(b) An applicant district qualifying for the priority status
described in subdivision (a) as to any project shall continue to be
accorded that status for all subsequent projects under this chapter
until the time that the bonding capacity of the district determined
for purposes of that subdivision increases by 20 percent.
(c) The condition set forth in paragraph (2) of subdivision (a)
shall apply until either the applicant district's eligibility under
this section terminates pursuant to subdivision (b), or funding for
the district is approved and apportioned under this chapter for a
project for which 50 percent or more of the cost is provided by the
district from funding sources other than any state program
administered by the board, whichever occurs first.
(d) Notwithstanding any other provision of law, as to any project
for which priority status is accorded pursuant to subdivision (a),
the estimate of average daily attendance for the applicant district
may be calculated, upon request of the district, in the manner set
forth in subdivision (a) of Section 17040.3.
(e) The board may recalculate program allowances and
apportionments pursuant to this section.

17018. In approving applications pursuant to this chapter, the
board shall encourage the design and construction of facilities which
will conserve unreplenishable energy resources by consideration of
alternate design and insulation concepts as well as unconventional
energy sources. In so doing, the board may increase cost allowances
to reflect the difference between conventional and unconventional
concepts when the board is satisfied that the life cycle cost of the
project is not expected to exceed the life cycle cost of a
conventionally designed project.

17018.5. (a) The Legislature intends for the board to encourage
school districts to utilize alternative methods to fund school
facilities.
(b) The board shall approve applications pursuant to the
requirements of this section that request the board to share a
portion of the cost of projects constructed pursuant to the
Mello-Roos Community Facilities Act of 1982, as set forth by Chapter
2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title
5 of the Government Code. The board shall disregard the fact that
structures have been constructed in accordance with that act, and
neither consider nor approve any application for cost sharing until
the time that the applicant school district would have become
eligible for approval of its application during the normal process
established for considering and approving applications.
(c) The board shall approve applications for cost sharing based on
both of the following factors:
(1) Estimates of average daily attendance at the time the
application is considered.
(2) The amount of cost sharing requested.
(d) The costs shared by the board shall be an amount equal to the
cost that would have been allowed for the project had it been
originally approved pursuant to this chapter less 5 percent per year
depreciation, exclusive of land, for each year that the project was
constructed in advance of the application approval, but no more than
the lesser of an amount equal to 75 percent of the allowable cost of
the project or the principal amount of any outstanding callable bonds
and other debts incurred to finance the project under the Mello-Roos
Community Facilities Act of 1982.
(e) If the board utilizes a point system to prioritize
applications for funding, the computation of priorities for an
application pursuant to this section shall be increased by 4 percent
for each year from the date of construction of the project to the
date of approval of the cost-sharing application.

17018.7. (a) Notwithstanding any other provision of law to the
contrary, a school district that has, within the previous 24-month
period, constructed or otherwise acquired school facilities with 100
percent local funding, may apply for funding for the construction of
a gymnasium or multipurpose room on the site where it constructed or
otherwise acquired school facilities with 100 percent local funding.
(b) If the State Allocation Board determines that the schoolsite
does not have adequate gymnasium or multipurpose room facilities, the
board may approve the application pursuant to this section.
(c) For an application approved pursuant to this section, the
board shall grant the school district a credit against its local
matching share requirement of up to 50 percent of the costs of the
project or the total local funds expended by the school district on
any school facilities funded by 100 percent local funds within the
immediately preceding 24-month period, whichever is less.
(d) For an application approved under this section, the project
shall be accorded the priority status that is otherwise accorded
under Section 17017.7 to a project for which state funding is
requested for only 50 percent of the costs.
(e) As used in this section "100 percent local funding" includes
construction or acquisition of a school facility with 40 percent
funding from the general fund of the school district and with the
remainder of the local funding from the sale of surplus school
property.

17019. Before the board approves any project that includes the
acquisition of furniture or equipment, it shall establish current
cost and quality standards for furniture and equipment, including,
but not limited to, educational technology hardware. The standards
shall not exceed the cost and quality of furniture and equipment for
comparable facilities purchased by school districts in the same area.
The standards shall consist of furniture and equipment costs for
each type of classroom or pupil station having different cost
criteria. The standards shall be reviewed quarterly by the board and
adjustments made in accordance with actual current costs. When cost
and quality standards have been adopted by the board, the standards
shall not be exceeded unless a subsequent increase in actual current
costs warrants an adjustment.
Before the board approves a project for the replacement,
reconstruction, or alteration of, or addition to, a school building,
full consideration shall be given to all usable furniture and
equipment existing in the applicant district. The board may approve
all or a portion of the amount applied for.

17019.3. (a) Any applicant school district may contract with a
firm, as defined in Section 4525 of the Government Code, for
construction project management services to assist in the development
or implementation of a project for which the district has applied
for funding under this chapter, subject to the requirement that a
performance bond be required from all building contractors hired to
construct the project in order to ensure the completion of
performance under the contract.
(b) That portion of any contract, as described in subdivision (a),
concerning the final phase of construction of the project, shall be
submitted by the applicant district to the board for approval. If the
board does not approve, reject, or recommend modifications to, that
contract portion within 15 business days after receiving that
contract information, that portion of the contract shall be deemed to
be approved by the board.
(c) From the amount of funding approved by the board under this
chapter for any project, the board shall authorize the expenditure of
funds for the costs of construction project management services
provided to the project, as described in subdivision (a), where the
board finds that the contracting for those services was necessary and
appropriate to the school district's development or implementation
of that project.

17019.5. For a school district having an average daily attendance
of 2,500 or less for the prior fiscal year, the board may approve,
subject to the building cost standards established under this
chapter, a supplemental apportionment up to five thousand five
hundred dollars ($5,500) for any new construction project, and up to
one thousand three hundred twenty dollars ($1,320) for any other
project approved under this chapter, as reimbursement for
administrative expenses incurred by the district in filing the
application for the project. The amount of the supplemental
apportionments shall be adjusted in 1990, and every two years
thereafter, by the board at its January meeting, which adjustment
shall be in an amount equal to the amount of the adjustment for
inflation set forth in the statewide cost index for class D
construction.

17020. (a) Notwithstanding other provisions of this chapter, in
order to expedite a total school facility a school district may first
apply for a project which includes only the advance purchase of the
land and preparation of plans and specifications. The acquisition of
the site and the plans preparation shall be based on the
justification documents for the total school facility. The school
district may apply for a subsequent project or projects to complete
the total school facility.
(b) Any application filed pursuant to this section shall be
subject to all provisions of this chapter generally applicable to
project applications, to the extent not in conflict with this
section.
(c) Any estimate of average daily attendance made by an applicant
district for the purpose of justifying an application pursuant to
this section may be made for up to and including two years longer
than the period of time permitted by Section 17040.
(d) Beginning in the fifth fiscal year following the fiscal year
in which any apportionment is made to a school district pursuant to
this section, the district shall repay the apportionment, with
interest, in 10 equal annual installments, unless and until the
district has qualified for an apportionment pursuant to an
application for utilization of the site under this chapter. These
repayments shall constitute rent, and shall be in addition to any
other rents or fees for which the district is obligated under Section
17032. The board may waive any obligation of repayment under this
subdivision to the extent that the board finds that the obligation
will result in an extreme hardship upon the district.
(e) The school district may apply for a subsequent project or
projects to complete the total school facility.

17021. No project shall be approved for the reconstruction,
modernization, or replacement of any school building that was
constructed or reconstructed less than 30 years, or, in the case of
any portable classroom, as defined in subdivision (e) of Section
17042.5, less than 20 years, prior to the date of approval of the
project applied for under this chapter.

17021.3. (a) For purposes of this chapter, "modernization" or
"renovation" means any modification of an existing structure, the
costs of which do not exceed 25 percent of the replacement cost of
that structure.
(b) No project shall be approved for the modernization of any
school facility unless and until both of the following are
demonstrated to the satisfaction of the board:
(1) The project will enhance the capacity of the facility to
achieve one or more educational purposes.
(2) The resulting pupil capacity of the facility, as measured in
units of average daily attendance, will equal or exceed 80 percent of
the facility's maximum capacity as determined under the board
standards established under this chapter.
(c) No project shall be approved for the modernization of any
school facility that was constructed less than 30 years prior to the
date of the approval of the project applied for under this chapter.
(d) The State Allocation Board may waive the requirement in
subdivision (c) if the building has been declared by the Office of
the State Architect to be, or is in imminent danger of becoming, a
health or safety hazard to the pupils. This determination may only be
made in the case of a natural disaster, for example, fire, flood, or
earthquakes, or as a result of a determination by a qualified
engineer, and agreed to in writing by the Office of the State
Architect.

17021.4. Notwithstanding the limitation set forth in subdivision
(a) of Section 17021.3, the costs of a modernization or renovation
project funded under this chapter may exceed 25 percent of the
replacement cost of an existing structure where the costs in excess
of that amount are funded by the district exclusively from sources
other than any state program administered by the board. For each
project, the total costs of the modernization or renovation project,
as supplemented pursuant to this section, may not exceed 50 percent
of the replacement cost of the existing structure except to the
extent of those costs funded by the district, from sources other than
any state program administered by the board, that are expended to
conform that structure to current building standards, in which event
the total costs of the project may not exceed 75 percent of the
replacement cost of the structure.

17022. Except as provided in Section 17041, the board shall not
approve any new school facilities for any applicant school district
or county superintendent of schools until it first has made a
determination that the applicant will utilize all existing facilities
and sites to the extent economically and practically feasible. The
board may also require the applicant to explore cooperative efforts
with adjacent districts or, in the case of county superintendents of
schools, with adjacent county superintendents of schools, in order
that all existing or planned facilities in the general area of need
shall be utilized.

17022.7. (a) The funding for any reconstruction project approved by
the board pursuant to this chapter that meets the requirements set
forth in subdivision (b) shall include all of the following, not to
exceed the total cost of the reconstruction project or 75 percent of
the replacement cost of the facility to be reconstructed, whichever
is less:
(1) Twenty-five percent of the replacement cost of the facility.
(2) A funding entitlement to the extent that the reconstruction
will result in an increased capacity of the facility to house pupils,
calculated pursuant to the cost standards for new construction
established by the board under Section 17017.
(3) Any costs incurred by the district as required to ensure that
the facility, as reconstructed, complies with applicable structural
safety standards for school buildings pursuant to Article 3
(commencing with Section 17280) and Article 6 (commencing with
Section 17365) of Chapter 2 of Part 10.5, and Article 7 (commencing
with Section 81130) and Article 8 (commencing with Section 81160) of
Chapter 1 of Part 49.
(b) In order to qualify for the funding entitlement set forth in
subdivision (a), a school district reconstruction project shall be
required to meet all of the following conditions:
(1) The facility to be reconstructed is at least 30 years old as
of the date the application is filed.
(2) The cost of the reconstruction project exceeds 25 percent of
the replacement cost of the facility.
(3) The reconstruction will result in an increased capacity of the
facility to house pupils.
(c) No reconstruction project shall be approved under this chapter
for which the total cost exceeds 75 percent of the replacement cost
of the facility to be reconstructed.

17023. Nothing contained in this chapter shall be construed as
changing the powers and duties of the Department of Education or the
Department of General Services in respect to schoolsites and the
construction of school buildings as contained in Chapter 1
(commencing with Section 17211) and Chapter 2 (commencing with
Section 17251) of Part 10.5.

17024. (a) The board shall not authorize the selection of any
schoolsite, or a contract for the construction of any new school
building, or for any addition to, or alteration of, any existing
building, for lease-purchase to any school district, unless the
applicant district has obtained the written approval of the State
Department of Education that the site selection, and the building
plans and specifications, comply with the standards adopted by the
department pursuant to subdivisions (b) and (c), respectively, of
Section 17251.
(b) A self-certifying district shall comply with subdivision (a)
by certifying to the State Department of Education and the board that
the site selection, and the building plans and specifications,
comply with the standards adopted by the department pursuant to
subdivisions (b) and (c), respectively, of Section 17251. The
self-certifying district shall maintain documentation of the
determinations made pursuant to this subdivision as required by the
board. Those determinations shall be subject to subsequent audit by
the State Department of Education in accordance with this section.
(c) The State Department of Education shall conduct random audits
of the information certified by self-certifying districts pursuant to
subdivision (b), using generally accepted auditing principles, at
any time to ensure compliance with the law.
(d) If any information certified by a self-certifying district
pursuant to subdivision (b) is found by the department to contain any
material inaccuracy, the department shall so notify the board. The
board shall thereupon impose both of the following penalties:
(1) Pursuant to a repayment schedule approved by the board of no
more than five years, the district shall repay to the board, for
deposit in the State School Building Lease-Purchase Fund, an amount
equal to the amount of project funding allocated under this chapter
to acquire any site that was selected in material violation of the
standards adopted by the department pursuant to subdivision (b) of
Section 17251, together with interest at the rate paid on moneys in
the Pooled Money Investment Account or at the highest rate of
interest for the most recent issue of state general obligation bonds
as established pursuant to Chapter 4 (commencing with Section 16720)
of Part 3 of Division 4 of Title 2 of the Government Code, whichever
is greater. The amount of any repayment owing under this paragraph
for any fiscal year, which is not repaid otherwise by the district,
shall be withheld by the board from any project funding that
otherwise would be allocated to that district under this chapter in
that fiscal year. As to any repayment obligation remaining for that
fiscal year, the board shall notify the Superintendent of Public
Instruction, who shall withhold the amount of that remaining
obligation from the apportionments to be made to the district from
the State School Fund in that fiscal year.
(2) The board shall prohibit the district from exercising the
self-certifying authority under subdivision (b) under any subsequent
applications for project funding for a period of up to five years
following the date of the finding of a material inaccuracy, or until
the district's repayment of the entire amount owing under paragraph
(1), whichever occurs later.
(e) Any school district against which the board imposed the
penalties under paragraphs (1) and (2) of subdivision (d) may submit
for binding determination by an arbitrator the issue of whether the
penalties imposed are disproportionate to the inaccuracy certified by
the district. Except as otherwise provided by this chapter, the
procedure governing the arbitration shall be as set forth in Title 9
(commencing with Section 1280) of Part 3 of the Code of Civil
Procedure.
(f) It is the intent of the Legislature that audits as described
in this section not interfere with the application and construction
process under this chapter unless one or more violations are
discovered.

17024.5. Upon request of any school district, the State Department
of Education shall provide assistance in the evaluation and
utilization of existing school facilities and the justification of
the need for schoolsites, new facilities, and the rehabilitation or
replacement of existing facilities, in accordance with board
regulations.

17025. (a) The board shall not authorize a contract for the
construction of any new school, or for the addition to, or
reconstruction or alteration of, any existing building, for
lease-purchase to any school district unless the applicant district
has submitted plans therefor to the Department of General Services
and obtained the written approval of the department pursuant to
Article 3 (commencing with Section 17280) of Chapter 3 of Part 10.5.
(b) The board, or the self-certifying district, as applicable,
shall certify the compliance of a project with Sections 17212,
17212.5, and 17213, with Division 13 (commencing with Section 21000)
of the Public Resources Code, and with any other law that applies to
that project, but may require documentation of compliance only as to
requirements that are applicable under this chapter. Notwithstanding
any other law, for purposes of Division 13 (commencing with Section
21000) of the Public Resources Code, the applicant district shall be
deemed to be the "lead agency" with regard to any project funded for
that district under this chapter.

17029. (a) The board shall authorize the applicant school district
to act as its agent in the performance of acts specifically approved
by the board and all acts required pursuant to Article 3 (commencing
with Section 17280) of Chapter 3 of Part 10.5. That authorization
shall include, but is not limited to, the selection of schoolsites,
the securing of appraisals, the contracting for architectural
services, the advertisement for construction bids and the entering
into of contracts therefor and the purchase of furniture and
equipment.
(b) If, pursuant to the authority granted under subdivision (a), a
self-certifying district submits to the board two or more
independent appraisals and certifies to the board that the appraisals
were performed by appraisers licensed or certified in accordance
with Part 3 (commencing with Section 11300) of Division 4 of the
Business and Professions Code and were obtained in accordance with
standards and procedures imposed by the board for that purpose, the
district shall not be required to document its compliance with those
standards and procedures except as specified in Section 17041.2. In
addition, the board shall use any of those appraisals, including an
appraisal that is not the highest bid appraisal, for the purposes of
this section, except that the board may substitute, for the results
of those appraisals, the results of one or more independent
appraisals, which may include an appraisal performed by the
Department of General Services, obtained by the board for that
purpose.
(c) If, pursuant to the authority granted under subdivision (a),
any bid reported to the board by a self-certifying district as the
lowest responsible bid for a construction contract does not exceed
the cost limit established by the board for that purpose, and the
district certifies to the board that the bid was obtained in
accordance with standards and procedures imposed by the board for
that purpose, the district shall not be required to document its
compliance with those standards and procedures except as specified in
Section 17041.2.

17029.5. Notwithstanding any other provisions of this chapter, the
funding by the board of contracts entered into by a school district
pursuant to this chapter shall not, in itself, make the board liable
for any tort, breach of contract, or any other action for damages
caused by a school district arising from those contracts. These
contracts include, but are not limited to, contracts between the
school district and its construction contractors, construction
managers, architects, or engineers. The school district shall be
liable for all torts, breaches of contract, or any other actions for
damages caused by the school district.

17030. (a) In expending funds for any project under this chapter, a
school district acts as an agent of the state and all sites
purchased and improved, all equipment purchased, and all buildings
constructed, altered or added to through the expenditure of funds
apportioned under this chapter, are declared to be, and are, the
property of the state.
(b) The Director of General Services shall file with the county
recorder of the county in which any site purchased or improved
through the expenditure of funds under this chapter is located a
certificate, properly acknowledged, indicating the state's interest
in real property of the district by virtue of this section, without
the necessity of particularizing the real property. The recorder
shall record and index the certificate in the same manner as
abstracts of judgments and the certificate shall constitute
constructive notice of the state's interest in the particular real
property affected. The certificate shall, as to any party thereafter
acquiring real property or any interest therein in the county from
the school district, have the same force, effect and priority as if
it had been a judgment lien imposed upon real property which was not
exempt from execution. That effect shall commence upon recordation
and shall continue until the certificate is discharged or released as
provided herein.
(c) Upon request, the Director of General Services shall issue
either of the following:
(1) A release of the state's interest in any real property or a
portion thereof that the district has been authorized by the board to
dispose of under Section 17039, provided that delivery of such
release may be subject to such conditions as may be prescribed by the
board to protect the state's interest.
(2) A disclaimer of the state's interest in any real property or a
portion thereof of the district, the disposition of which the board
is not required to consent to under the terms of Section 17039,
provided that the delivery of such disclaimer may be subject to such
conditions as the board deems appropriate to protect the interest of
the state, including conditions relating to the amount of
consideration to be received from the disposition where the board
asserts an interest in the proceeds of such disposition under other
provisions of this chapter. The release or disclaimer shall
conclusively protect any third party relying upon the same and shall
be acknowledged to permit recordation by the county recorder.
(d) Upon payment by the district of all amounts required to be
paid by it, or on its behalf, to the state under this chapter, each
of the following shall occur:
(1) The Director of General Services shall file with the county
recorder a release of any certificate, which release shall be
recorded and indexed in the same index as the certificate.
(2) The title to personal property purchased by the school
district with funds apportioned under this chapter shall revert
thereto without further action by the state.

17030.2. Notwithstanding any other provision to the contrary, all
lease agreements shall terminate 40 years from the date of execution
and title to the property covered therein shall revert to the
district as though full payment had been made.

17030.3. Notwithstanding any other provision of this chapter, any
project funded under this chapter that involves only the
identification, assessment, or abatement of hazardous asbestos in
school facilities shall not be subject to Section 17014 or 17032, nor
shall that funding cause the transfer to the state of title or any
other property interest in the subject facilities.

17030.5. Notwithstanding any provision to the contrary, no funds
authorized by any act for the purpose of this chapter may be expended
for any purpose without specific authorization from the board or its
designated representatives.

17030.6. From any moneys in the State School Building
Lease-Purchase Fund, the board shall make available to the Director
of General Services such amounts as it determines necessary to
provide the assistance, pursuant to this chapter, required by Section
15504 of the Government Code.

17031. The applicant district, acting as agent for the state, shall
comply with all laws pertaining to the construction, reconstruction,
or alteration of, or addition to school buildings.

17032. The board shall fix rents for all projects acquired and may
change the rents from time to time as may be needed provided the
rents shall not in any year exceed the sum of the following:
(a) One dollar ($1).
(b) Any interest earned on funds in the county school
lease-purchase fund for the district.
(c) Any unencumbered bond funds of the district, exclusive of
funds that are used by the district to fund a project pursuant to
Section 17040.2.
(d) The net proceeds from the sale or lease of any school
buildings or land no longer needed for school purposes, exclusive of
proceeds that are used for capital outlay expenditures for school
construction that conforms to building area standards established
under this chapter, for revenue purposes under a joint venture as
authorized by Section 17032.3.

17032.3. (a) Any school district for which one or more projects has
been funded under this chapter may, pursuant to written agreement
with any other public or private person or entity, utilize any school
buildings, land, or other real property interest that the governing
board determines is not needed for school purposes, and will not be
needed for school purposes within the next 30 years, in a joint
venture with that person or entity to generate revenues for school
facilities purposes, pursuant to the following conditions:
(1) The district has developed a school district asset utilization
plan, setting forth the information required under subdivision (b),
which plan has been the subject of a public hearing, and the
governing board of the district has made the finding that the
implementation of the plan will benefit the district.
(2) Prior to the execution by the school district governing board
of any agreement regarding the utilization of the school buildings or
land, or both, under a joint venture pursuant to this section, the
school district asset utilization plan has been submitted for, and
has received, the review and approval of the State Allocation Board.
No later than 90 days after the receipt of the plan, the board shall
determine whether to approve the plan, which approval shall be
granted if the board finds the plan to comply with this section.
(3) Once every three years after the approval of any plan pursuant
to paragraph (2), the school district shall update the plan with
information regarding the disposition of the revenues received by the
district from the utilization of the school buildings or land, or
both, under the joint venture, including the effect of those revenues
upon the school facility needs for which the district may otherwise
be eligible under this chapter or under any other school facilities
program administered by the board, together with such other
information as the board may require, and shall resubmit the plan to
the board for its review and approval. In the event that the board
refuses to approve the plan on the basis that the district is no
longer in substantial compliance with this section, the surplus
school buildings or land, or both, utilized under the joint venture
shall no longer be exempt from the rental requirements of Section
17032.
(4) Pursuant to a school district asset utilization plan approved
under this section, the school district may utilize school buildings
or land, or both, in a joint venture, the revenues from which shall
be placed by the district in a separate fund. The principal and
interest from that separate fund may be expended by the district only
for the following school facilities purposes, as authorized under
the approved plan, in accordance with the pupil loading and cost
standards established pursuant to this chapter: the acquisition of
land, new construction, reconstruction, modernization,
rehabilitation, and deferred maintenance.
(b) For purposes of this section, a school district asset
utilization plan shall include, but not necessarily be limited to,
all of the following:
(1) A specific description of the surplus school buildings or
land, or both, to be utilized under the joint venture.
(2) The identification of the current educational uses of the
surplus school buildings or land, or both, and of the educational
uses proposed under the joint venture.
(3) The identification of the current noneducational uses of the
surplus school buildings or land, or both, and of the noneducational
uses proposed under the joint venture, and a specific assessment of
the compatibility of those uses with any applicable general or
specific governmental land use plans and with applicable zoning
restrictions.
(4) A description of the prospective economic benefits to be
derived by the district from the joint venture.
(5) A description of the prospective educational benefits to be
derived by the district from the joint venture.
(6) A comprehensive description of the joint venture, including,
but not limited to, a description of the intended means of financing
the joint venture.
(7) A plan for the disposition of the revenues received by the
district from the joint venture.

17032.5. (a) The board shall establish the annual rent and
conditions to be met by the lessee of a portable classroom leased
pursuant to Section 17717.2 and shall require lessees to undertake
all necessary maintenance, repairs, renewals, and replacements to
ensure that a project is at all times kept in good repair, working
order, and condition. All costs incurred for this purpose shall be
borne by the lessee.
(b) For purposes of this section, "good repair" has the same
meaning as specified in subdivision (d) of Section 17002.

17033. Rent, charges, and fees collected in error may be refunded
by the board in accordance with regulations prescribed by the board.

17034. A county school lease-purchase fund is hereby created in the
county treasury within each county for each school district project
in the county.

17035. The board may from time to time authorize the Controller to
transfer any funds that the board may deem necessary from the State
School Building Lease-Purchase Fund established for a given project
to the corresponding county school lease-purchase fund in the county
treasury.

17036. (a) Except as provided in subdivision (b), funds may be
expended from the county school lease-purchase fund by the applicant
school district only when specifically authorized by the board for
either direct project costs or reimbursements.
(b) Upon specific authorization by the board, applicant school
districts may be reimbursed from the county school lease-purchase
fund for expenditures, or commitments therefor, made prior to the
approval of a project by the board, subject to all of the following
conditions:
(1) The expenditures or commitments were made in accordance with
the terms of the approval of a project.
(2) The expenditures or commitments were made not more than four
years prior to the approval of a project.
(3) The expenditures or commitments do not include any cost
incurred for construction of a project.

17038. The board shall require school districts to insure at their
own expense for the benefit of the state, all sites, equipment and
buildings which are, under Section 17030, the property of the state,
against such risks and in such amounts as the board may deem
necessary to protect the interests of the state. No project funds
shall be used to pay the premiums on such insurance. All payments
resulting from claims made against said insurance shall be made
payable to and retained by the board. Funds so received shall be
utilized by the board for repair or replacement of the facilities for
which claim was made. In no event may the amounts expended from such
funds for such repair or replacement exceed the payments received.

17039. (a) Not more than one hundred fifty million dollars
($150,000,000) of the moneys authorized by the State School Building
Lease-Purchase Bond Law of 1982 (Sec. 34, Ch. 552, Stats. 1995) shall
be reserved for the reconstruction or modernization of facilities
within the meaning of this chapter.
(b) For purposes of this section, the State Allocation Board shall
establish a separate priority system which shall be based on the
following factors and any other factors which the board determines
are appropriate:
(1) Structural condition and age of the building.
(2) Percentage of pupils affected in the district or attendance
area.
(3) Degree of utilization of eligible buildings.
(4) Other building code deficiencies, such as health, safety, or
electrical problems.

17039.1. Not more than two hundred million dollars ($200,000,000)
of the moneys authorized by the State School Building Lease-Purchase
Bond Law of 1982 (Sec. 34, Ch. 552, Stats. 1995) shall be reserved
for the reconstruction or modernization of facilities within the
meaning of this chapter.

17039.2. Of the moneys reserved for the rehabilitation or
modernization of facilities pursuant to Section 17039.1, the board
may reserve not more than twenty-five million dollars ($25,000,000)
for apportionments to school districts that the board has determined
to be in severe need of the apportionment. In addition, of the moneys
reserved for the reconstruction or modernization of facilities
pursuant to Section 17696.96 of the Greene-Hughes School Building
Lease-Purchase Bond Law of 1986 (Sec. 34, Ch. 552, Stats. 1995), the
board may reserve up to and including 10 percent for this purpose. In
either event, the apportionment shall be for purposes of site
acquisition and the construction of school facilities for schoolsites
that meet one or more of the conditions established by the board,
which shall include, but are not limited to, the following:
(a) The schoolsite is not less than 30 years of age.
(b) The schoolsite has accommodated a significant increase in
enrollment during the last 10-year period.
(c) Enrollment increases have been accommodated by placing
relocatable structures on the schoolsite without expanding the
schoolsite.
(d) The schoolsite has inadequate playground space for its
enrollment.
(e) The schoolsite has inadequate meal facilities, and those
facilities are used for more than three times the number of pupils
for which the facilities were originally designed.