Section 15710 Of Article 1. General Provisions From California Education Code >> Division 1. >> Title 1. >> Part 10. >> Chapter 4. >> Article 1.
15710
. Where a district is required by a contract entered into
between itself and a general construction contractor to obtain, at
its own expense, insurance covering risks incurred during any
construction for which an apportionment has been made, the cost
thereof may be paid directly to said district out of the Public
School Building Loan Fund.
It is the intent and purpose of this section to provide for
reimbursement to school districts for any builders' risk insurance
that may have been furnished and paid for by the districts in
connection with approved apportionments from the Public School
Building Loan Fund from the time of the effective date of Chapter
1389 of the Statutes of 1949.
The Legislature in adopting this section expressly recognizes that
eligible school districts in making provision for builders' risk
insurance during the period of construction of new buildings has
provided a saving for the taxpayers of the district, and also has
reduced the amount which otherwise would have been paid out of the
Public School Building Loan Fund to the district if the cost of the
builders' risk insurance had been borne by the contractor with the
district. For this reason the Legislature hereby finds, determines,
and declares that the adoption of this section having an effect
retroactive to the effective date of Chapter 1389 of the Statutes of
1949 is therefore lawful, proper, and represents the saving of public
funds for a lawful and public purpose.
The Controller of the State of California is hereby authorized and
directed to cancel and annul any claims or demands against the
school district arising out of, or in any way connected with, claims
for reimbursement from the school districts to the Public School
Building Loan Fund arising out of the direct purchase of builders'
risk insurance on any construction by any school district under an
approved application by the board.