SECTIONS 54240-54245 - California Statutes

GOVERNMENT CODE

SECTION 54240-54245

54240. As used in this article:
(a) "Local agency" means any county, city, city and county, public
district, public entity or authority or other public or municipal
corporation other than the federal government or any federal
department or agency, this state, an adjoining state, any state
department or agency or any school district in the state.
(b) "Public leaseback" means any lease, sublease, contract or
other agreement involving land or buildings, structures, or other
facilities which are permanently attached to land, where the
agreement is made directly or indirectly between the local agency and
a public leaseback corporation, if the proceeds of the agreement
provided by the local agency will be used in whole or in part by such
public leaseback corporation for payment of principal of or interest
on its bonds, notes or other evidences of indebtedness.
(c) "Public leaseback corporation" means any public or private
corporation, or nonprofit corporation, or any public retirement
system which has the authority to assist a local agency and which
acquires or constructs or finances or arranges for the acquisition or
construction of land, buildings, structures, or other facilities
which are permanently attached to land for public leaseback.

54241. No public leaseback of any local agency shall be entered
into until the act of entering into a formal agreement with the
public leaseback corporation shall have been approved by such local
agency by ordinance which shall state that it is subject to the
provisions for referendum applicable to such local agency. This
section shall apply only to public leaseback agreements the term of
which will exceed five years or more.

54242. Any ordinance subject to referendum under Section 54241
shall be published after adoption as required by law for ordinances
of the local agency generally, or, if there is no publication
requirement applicable to the ordinance, then once pursuant to the
provisions of Sections 6040 through 6044 within 15 days after the
adoption of the ordinance.
If a local agency does not otherwise have statutory power to enact
an ordinance pursuant to Section 54241, the governing body of the
local agency is authorized to introduce and enact the ordinance at
any regular or adjourned regular meeting by the approving votes of a
majority of all of its members. If ordinances of a local agency are
not otherwise subject to referendum, then (1) the governing body of
the local agency may refer any ordinance enacted pursuant to Section
54241 to the electors of the local agency in the same manner as the
board of supervisors of a county may refer county questions pursuant
to Section 9140 of the Elections Code, and (2) the electors of the
local agency shall have the right to petition for referendum on the
ordinance in the same manner and subject to the same rules as are set
forth in Sections 9141 to 9145, inclusive, of the Elections Code,
except that all computations referred to in those sections and
officers of the county mentioned in those sections shall be construed
to refer to comparable computations and officers of the local
agency. If the governing board of a local agency is an elected board
the electors of the local agency for the purposes of this section
shall be the electors of the territory entitled to vote at elections
for members of the governing board. If a local agency does not have
an elected governing board, the electors residing within the
boundaries of the local agency who would be qualified to vote for
candidates for Governor at any gubernatorial election shall be the
electors of the local agency for the purposes of this section.

54243. In the event an ordinance enacted pursuant to Section 54241
authorizing a local agency to enter into a public leaseback is
subjected to a successful referendum election or is repealed or
rescinded by a local agency, no ordinance authorizing the local
agency to enter into a public leaseback for the same or substantially
the same purpose shall be passed by that local agency for a period
of one year from the date of such referendum, repeal or rescission.

54244. Section 54241 shall not apply to any public leaseback which
is executed prior to the effective date of Section 54241.

54245. If any one or more local or public agencies shall, prior to
the effective date of Section 54241, have taken formal action to
implement any one or more projects to be acquired or constructed
pursuant to a public leaseback, Section 54241 shall not apply to the
subsequent execution by such local or public agency of such public
leaseback relating to any such project. Formal action to implement
any one or more projects shall include any of the following actions:
(a) The incurring of liability of five thousand dollars ($5,000)
or more for a substantial portion of an architectural or engineering
contract or other contract relating to a project;
(b) The acquisition of land or improvements for the project;
(c) The making of a contribution totaling five thousand dollars
($5,000) or more toward the leaseback project.