SECTIONS 17076.10-17076.11 - California Statutes

EDUCATION CODE

SECTION 17076.10-17076.11

17076.10. (a) A school district that has received any funds
pursuant to this chapter shall submit a summary report of expenditure
of state funds and of district matching funds annually until all
state funds and district matching funds are expended, and shall then
submit a final report to the board. The board may require an audit of
these reports or other district records to ensure that all funds
received pursuant to this chapter are expended in accordance with
program requirements.
(b) If the board finds that a participating school district has
made no substantial progress towards increasing its pupil capacity or
modernizing its facilities within 18 months of the receipt of any
funding pursuant to this chapter, the board shall rescind the
apportionment in an amount equal to the unexpended funds.
(c) (1) If the board, after the review of expenditures or audit
has been conducted pursuant to subdivision (a), determines that a
school district failed to expend funds in accordance with this
chapter, the department shall notify the school district of the
amount that must be repaid to the 1998 State School Facilities Fund,
the 2002 State School Facilities Fund, or the 2004 State School
Facilities Fund, as the case may be, within 60 days. If the school
district fails to make the required payment within 60 days, the
department shall notify the Controller and the school district in
writing, and the Controller shall deduct an amount equal to the
amount received by the school district under this subdivision, from
the school district's next principal apportionment or apportionments
of state funds to the school district, other than basic aid
apportionments required by Section 6 of Article IX of the California
Constitution. Any amounts obtained by the Controller shall be
deposited into the 1998 State School Facilities Fund, the 2002 State
School Facilities Fund, or the 2004 State School Facilities Fund, as
appropriate.
(2) Notwithstanding paragraph (1), if the board determines that
repayment of the full liability within 60 days after the board action
would constitute a severe financial hardship, as defined by the
board, for the school district, the board shall approve a plan of
equal annual payments over a period of up to five years. The plan
shall include interest on each year's outstanding balance at the rate
earned on the state's Pooled Money Investment Account during that
year. The Controller shall withhold amounts, other than basic aid
apportionments required by Section 6 of Article IX of the California
Constitution, pursuant to the plan.
(d) If a school district has received an apportionment, but has
not met the criteria to have funds released pursuant to Section
17072.32 or 17074.15 within a period established by the board, but
not to exceed 18 months, the board shall rescind the apportionment
and deny the district's application.

17076.11. Any school district using funds allocated pursuant to
this chapter for the construction or modernization of a school
building, shall have a participation goal of at least 3 percent, per
year, of the overall dollar amount expended each year by the school
district, for disabled veteran business enterprises.