School facilities: leasing real property.

Plain English Breakdown

The official source material does not provide specific details on the impact or usage of the bill after its extension period, nor does it explicitly mention the inclusion of specific subcontractors as a requirement for all projects.

School Facilities: Leasing Real Property

This law extends until July 1, 2027, the current rule allowing school districts to lease land for $1 per year if the person leasing it builds a new school building that will become the property of the district at the end of the lease.

What This Bill Does

• Extends until July 1, 2027, the current rule allowing school districts to lease real property for $1 per year if the lessee agrees to build a new building that will eventually belong to the district at the end of the lease.
• Requires school districts to use a competitive process when choosing who gets to build and own the construction project temporarily.
• Allows school districts to hire pre-construction services before getting approval from certain state departments.

Who It Names or Affects

• School district governing boards
• People or companies leasing real property for schools

Terms To Know

Competitive solicitation process

A way to choose the best offer from people who want to do a job, like building a school.

Subcontractors

Smaller companies that work for bigger construction firms on specific parts of a project.

Limits and Unknowns

• The bill does not specify what happens after January 1, 2028.
• It is unclear how many school districts will use this extended rule before it ends.

Official Summary Text

AB 2067, as introduced, Patel.
School facilities: leasing real property.
Existing law requires the governing board of a school district to adopt a resolution that, among other things: (1) declares its intention to enter into a lease or agreement relating to school property, (2) includes specified information about the property, and (3) fixes a time for a public meeting of the governing board of the school district at which sealed proposals to enter a lease or agreement with the school district will be received from any person, firm, or corporation, and considered by the governing board of the school district, as specified.
Existing law, notwithstanding those provisions, and until July 1, 2027, authorizes the governing board of a school district to lease real property for a minimum rental of $1 per year if the instrument by which this property is leased requires the lessee to construct, or provide for the construction
of, a building to be used by the school district and requires the title to the building to vest in the school district at the end of the lease. Existing law requires the instrument created pursuant to these provisions to be awarded based on a competitive solicitation process to the proposer providing the best value to the school district, as specified. Existing law authorizes a school district, for purposes of using preconstruction services, to enter into an instrument before written approval is obtained from the Department of General Services’ Division of the State Architect under specified circumstances. Existing law authorizes a school district to identify specific types of subcontractors required to be included in a proposal, and imposes specified other procedural requirements on awarding construction subcontracts of a certain value.
This bill would extend the operation of those provisions by 5 years by instead making the provisions described above inoperative
on July 1, 2027, and repealing them as of January 1, 2028.

Current Bill Text

Download Bill PDF