SECTIONS 41470-41474 - California Statutes

EDUCATION CODE

SECTION 41470-41474

41470. Notwithstanding any other provision of law, the West Contra
Costa Unified School District is authorized to lease, rent, sell, or
otherwise utilize, excess school district real properties and
facilities, the proceeds of which shall be used for the exclusive and
sole purpose of repaying specified loans from the General Fund.
Those properties may include the properties identified by prior
resolution of the Richmond Unified School District. No real
properties upon which state funds have been expended for acquisition
or construction of new, or renovation of existing, structures for
which an encumbrance to the state is currently in effect, may be used
for this purpose. Any proposed utilization of school district
properties or facilities shall be specified in a general district
plan that is part of the financial recovery plan developed by the
district pursuant to Section 41327.

41471. (a) The loan obligations to which this chapter applies are
as follows:
(1) The loan of nine million five hundred twenty-five thousand
dollars ($9,525,000) made to the Richmond Unified School District
from the General Fund as an emergency apportionment pursuant to
Chapter 171 of the Statutes of 1990, less any principal payments made
prior to enactment of this bill.
(2) The loan of nineteen million dollars ($19,000,000) to the
Richmond Unified School District, made pursuant to the May 2, 1991,
order of the Superior Court of Contra Costa County.
(3) Interest charges through January 31, 1993, at the rates
established by the initial loan agreements or legislation, as
reflected in the repayment schedule specified in paragraph (b) of
Section 41472. Interest charges beginning February 1, 1993, apply at
a rate equal to the daily investment rate of the Pooled Money
Investment Account on January 1, 1993.
(b) The loans specified in paragraphs (1) and (2) of subdivision
(a) are hereby consolidated into one outstanding debt in the amount
of twenty-eight million five hundred twenty-five thousand dollars
($28,525,000), less any principal payments made prior to enactment of
this bill.

41472. (a) The school district may prepay its loan obligation
without incurring any prepayment penalties.
(b) (1) The minimum payment on the consolidated debt shall be
determined according to the following payment schedule:

Payment
Due Date Amount
2/1/93 $ 0
2/1/94 0
2/1/95 5,570,443
2/1/96 1,870,443
2/1/97 1,870,443
2/1/98 5,570,443
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(2) The debt remaining after the school district's 1998 payment
shall be repaid as a straight-line loan amortized over a 20-year
term. This amount shall be repaid by the school district, plus
interest calculated at a rate equal to the rate earned by the Pooled
Money Investment Account on the date the act that adds this paragraph
is chaptered, for a period not to exceed 20 years.
(c) If payment is not made within 60 days after the scheduled
date, the Controller shall pay the defaulted loan payment of
principal and interest by withholding that amount from the next
available payment that would otherwise be made to the county
treasurer on behalf of the district pursuant to Section 14041 of the
Education Code. However, subject to the approval of the Department of
Finance, the amount withheld may be in monthly amounts as determined
by an agreement between the West Contra Costa Unified School
District and the Controller during the period beginning with the next
available apportionment through the month preceding the next
scheduled payment.
(d) The Director of the Department of Finance may, upon the
request of the Superintendent of Public Instruction, amend the
payment schedule set forth in subdivision (b) if the director
concludes that the amendment is warranted and is in the best
interests of both the state and the West Contra Costa Unified School
District education program. Upon that determination, the director
shall notify the Joint Legislative Budget Committee that the payment
schedule will be changed on the date that is 90 days from the date of
notification if the Legislature is in session, unless the Joint
Legislative Budget Committee takes appropriate action to preclude
that change. If the 90-day period ends during a recess of the
Legislature or while the Legislature is not in session, the 90-day
period shall be extended until the Legislature reconvenes. Amendments
to the repayment schedule shall defer the unpaid portion of a
repayment of the earliest fiscal year in which no other repayment is
scheduled. Interest shall accrue on the unpaid portion of a repayment
from the scheduled due date until the time the payment is actually
made. The interest charge shall be the same rate as specified in
Section 41471.
(e) If the district is able to sell properties in advance of any
of the obligations contained in the schedule set forth in subdivision
(b), the scheduled interest cost shall be reduced in accordance with
any prepayments that are made. If the repayment schedule is amended
pursuant to subdivision (d), all proceeds from any properties sold in
advance of any of the obligations shall be used as prepayment on the
schedule.

41473. Any and all provisions of statute that impose a condition on
the sale, use, or transfer of public agency lands and properties as
they would apply to the actions of the West Contra Costa Unified
School District, including, but not limited to, Sections 17732 and
39363, pertaining to the use of schoolsite sale proceeds, and Section
39363.5 and Section 54222 of the Government Code pertaining to
priority offerings of public lands for public purposes, are hereby
waived until the loans identified in this article are repaid. This
waiver authority does not extend to any real properties upon which
state funds have been expended for acquisition or construction of
new, or renovation of existing, structures for which an encumbrance
to the state is currently in effect.

41474. Notwithstanding Sections 41471 and 41472, the school
district may submit a request to the Director of Finance to have the
interest rate on the remaining outstanding balance of its emergency
apportionments changed to reflect the investment rate of the Pooled
Money Investment Account as reported by the State Controller's office
for the immediately preceding fiscal year. Upon receipt of the
request, the Director of Finance shall change the interest rate
pursuant to this section. A change in the interest rate does not
change other terms of the repayment schedule.