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Section 17406 Of Article 2. Leasing Property From California Education Code >> Division 1. >> Title 1. >> Part 10.5. >> Chapter 4. >> Article 2.
17406
. (a) (1) Notwithstanding Section 17417, the governing board
of a school district, without advertising for bids, may let, for a
minimum rental of one dollar ($1) a year, to a person, firm, or
corporation real property that belongs to the school district if the
instrument by which this property is let requires the lessee therein
to construct on the demised premises, or provide for the construction
thereon of, a building or buildings for the use of the school
district during the term of the lease, and provides that title to
that building shall vest in the school district at the expiration of
that term. The instrument may provide for the means or methods by
which that title shall vest in the school district before the
expiration of that term, and shall contain other terms and conditions
as the governing board of the school district may deem to be in the
best interest of the school district.
(2) For a public project, as defined in subdivision (c) of Section 22002 of the Public Contract Code, regardless of its funding source, an instrument created pursuant to paragraph (1) shall also require that a person, firm, or corporation that constructs the building, including, but not limited to, the prime contractor and, if used, electrical, mechanical, and plumbing subcontractor, shall be subject to the same prequalification requirements for prospective bidders described in subdivisions (b) to (m), inclusive, of Section 20111.6 of the Public Contract Code, including the requirement for the completion and submission of a standardized prequalification questionnaire and financial statement that is verified under oath and is not a public record.
(b) A rental of property that complies with subdivision (a) as it reads on the day that the lease is entered into shall be deemed to have thereby required the payment of adequate consideration for purposes of Section 6 of Article XVI of the California Constitution.
(c) This section shall remain in effect only until January 1, 2019, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2019, deletes or extends that date.
(2) For a public project, as defined in subdivision (c) of Section 22002 of the Public Contract Code, regardless of its funding source, an instrument created pursuant to paragraph (1) shall also require that a person, firm, or corporation that constructs the building, including, but not limited to, the prime contractor and, if used, electrical, mechanical, and plumbing subcontractor, shall be subject to the same prequalification requirements for prospective bidders described in subdivisions (b) to (m), inclusive, of Section 20111.6 of the Public Contract Code, including the requirement for the completion and submission of a standardized prequalification questionnaire and financial statement that is verified under oath and is not a public record.
(b) A rental of property that complies with subdivision (a) as it reads on the day that the lease is entered into shall be deemed to have thereby required the payment of adequate consideration for purposes of Section 6 of Article XVI of the California Constitution.
(c) This section shall remain in effect only until January 1, 2019, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2019, deletes or extends that date.
