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Legal Resources | Education Code |  EC  17463.8  

Sale or Lease of Real Property; Oak Grove Elementary School District   

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(a) Notwithstanding any other provision of law, the Oak Grove Elementary School District may sell surplus real property, together with any personal property located thereon, purchased entirely with local funds, and may deposit the proceeds thereof into the general fund of the school district or county office of education, and may use the proceeds from the sale for any one-time general fund purpose. If the purchase of the property was made using the proceeds of a local general obligation bond act or revenue derived from developer fees, the amount of the proceeds of the transaction that may be deposited into the general fund of the school district or county office of education may not exceed the percentage computed by the difference between the purchase price of the property and the proceeds from the transaction, divided by the amount of the proceeds of the transaction. For the purposes of this section, "proceeds of the transaction" means either of the following, as appropriate:

(1) The amount realized from the sale of property after reasonable expenses related to the sale.

(2) For any transaction that does not result in a lump-sum payment of the proceeds of the transaction, the proceeds of the transaction shall be calculated as the net present value of the future cashflow generated by the transaction.

(b) The State Allocation Board shall reduce the amount of hardship assistance awarded pursuant to Article 8 (commencing with Section 17075.10) to a school district that exercises the authority granted pursuant to this section by an amount equal to the amount of the proceeds of the sale of surplus real property used for a one-time expenditure of the school district pursuant to this section.

(c) If a school district exercises the authority granted pursuant to this section, the school district is ineligible for hardship funding from the State School Deferred Maintenance Fund under Section 17587 for five years after the date of sale.

(d) Before a school district exercises the authority granted pursuant to this section, the governing board of the school district shall first certify all of the following to the State Allocation Board:

(1) The school district has no major deferred maintenance requirements not covered by existing capital outlay resources.

(2) The sale of real property pursuant to this section does not violate any provisions of a local general obligation bond act.

(3) The real property is not suitable to meet any projected school construction need for the next 10 years.

(e) Before a school district exercises the authority granted pursuant to this section, the governing board of the school district shall at a regularly scheduled meeting present a plan for expending one-time resources pursuant to this section. The plan shall identify the source and use of the funds and describe the reasons why the expenditure will not result in ongoing fiscal obligations for the school district.

(f) For purposes of this section, "one-time general fund purpose" means a nonrecurring cost payable from the general or special funds of a local educational agency, not including ongoing expenditures for the purposes of funding employee salaries and benefits or ongoing and sustained program operations and services.

(g) This section shall become inoperative on January 1, 2010, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2010, deletes or extends the dates on which it becomes inoperative and is repealed.

(Added by Stats. 2006, Ch. 269, Sec. 1.)

Reference:

Education Code 17075.10

Education Code 17587