Cal. Code Regs. tit. 2 § 1859.90.2

Current through Register 2024 Notice Reg. No. 24, June 14, 2024

Section 1859.90.2 - Priority Funding Process

The priority funding process allows the Board to distribute available funds to districts or charter schools that request, pursuant to (a) or (b) below, as applicable, an Apportionment or an advance release of funds from a Preliminary Apportionment or Preliminary Charter School Apportionment, during specific 30-calendar day filing periods beginning with July 27, 2011 and continuing with the 2nd Wednesday of January and the 2nd Wednesday of July of 2012. Requests submitted during the filing periods described above are valid until the next filing period begins. The specific 30-calendar day filing periods subsequent to 2012 begin with January 9, 2013 and continue with the 2nd Wednesday of May and the 2nd Wednesday of November, each calendar year. Requests submitted during the filing period beginning with January 9, 2013 are valid until June 30, 2013. Requests submitted during a filing period beginning with the 2nd Wednesday of May are valid from July 1 until December 31 of that year. Requests submitted during a filing period beginning with the 2nd Wednesday in November are valid from January 1 until June 30 of the following year. Requests must be physically received by the OPSC by the 30th calendar day of each filing period to be considered valid.

(a) In order to be considered for an Apportionment, approved advance release of design funds from a Preliminary Charter School Apportionment, or approved advance release of environmental hardship site acquisition funds from a Preliminary Apportionment, the district or charter school must provide a priority funding request in the form of a written statement signed by an authorized representative that includes each of the project Application numbers, and the type of Apportionment request (e.g., Apportionment, separate Apportionment for design or site acquisition), within the 30-calendar day filing period, and shall contain the following:

(1) Statement that the request is to convert the unfunded approval to an Apportionment or to receive an approved advance release of funds; and

(2) Acknowledgement that a valid, original signature Form SAB 50-05 must be submitted and physically received by the OPSC within 90 calendar days of Apportionment or approved advance release of funds request, except for a Career Technical Education Facilities Project in (a)(5), and that failure to do so will result in the rescission of the Apportionment or approved advance release of funds request without further Board action; and

(3) Acknowledgement that a Grant Agreement must be submitted pursuant to Section 1859.90.4 and physically received by the OPSC prior to, or concurrently with, the Form SAB 50-05 referenced in (a)(2); and

(4) Acknowledgement that, if the district submits the Form SAB 50-05 on or after July 1, 2013 and is required to submit an LCP third party report, pursuant to Section 1859.97(b), the report will be submitted to the OPSC and the DIR at least 60 days prior to submitting the Form SAB 50-05; and

(5) For those receiving an Apportionment, acknowledgement that by participating in the priority funding process, the district or charter school is waiving its right to the timeline for fund release submittal described in Section 1859.90.

(6) For a Career Technical Education Facilities Project that was granted an unfunded approval without the required CDE plan approval and/or required DSA-approved plans and specifications, the applicant's request must include:

(A) Acknowledgement that the applicant must submit the required approval(s) to the OPSC within 12 months from the date of the Apportionment. If the required submittal(s) is not received within 12 months, the Apportionment shall be rescinded without further Board action pursuant to Section 1859.197(c)(1); and

(B) Acknowledgement that a valid, original signature Form SAB 50-05 must be submitted and physically received by the OPSC within 90 calendar days of the submittal described in (6)(A) and that failure to do so will result in the rescission of the Apportionment without further Board action; and

(C) Acknowledgement that a Grant Agreement must be submitted pursuant to Section 1859.90.4 and physically received by the OPSC prior to, or concurrently with, the Form SAB 50-05 referenced in (a)(6)(B).

(b) In order to be considered for an approved advance release of site acquisition funds from a Preliminary Charter School Apportionment, the district or charter school must provide a priority funding request in the form of a written statement signed by an authorized representative within the 30-calendar day filing period, and shall contain all of the following:

(1) Statement that the request is to convert the advance release of funds to an approved advance release of funds request; and,

(2) Acknowledgement that a valid, original signature Form SAB 50-05 must be submitted and physically received by the OPSC within 180 calendar days of the approved advance release of funds request and that failure to do so will result in the rescission of the approved advance release of funds request without further Board action; and

(3) Acknowledgement that a Grant Agreement must be submitted pursuant to Section 1859.90.4 and physically received by the OPSC prior to, or concurrently with, the Form SAB 50-05 referenced in (b)(2); and

(4) Acknowledgement that it must provide evidence that it has entered into the Charter School Agreements within 90 calendar days of approval of the advance release of funds request and that failure to do so will result in the rescission of the approval without further Board action.

(c) If a district or charter school receives an Apportionment or approved advance release of funds request through the priority funding process, the OPSC must receive a valid, original signature copy of the Form SAB 50-05 within the specified time period, pursuant to (a)(2), (a)(6) or (b)(2), as applicable, and a Grant Agreement, pursuant to (a)(3), (a)(6)(C), or (b)(3), as applicable. Upon submittal of the original signature copy of the Form SAB 50-05, if OPSC determines that the Form SAB 50-05 is not valid, the district will have ten business days to amend the Form SAB 50-05 in order to make the Form SAB 50-05 valid. If the OPSC does not receive a valid, original signature copy of the Form SAB 50-05 within the time period:

(1) The priority funding Apportionment or approved advance release of funds request shall be rescinded without further Board action, and

(2) If the Application is not subject to rescission pursuant to Section 1859.90.3(c) as defined in Section 1859.90.3(d), the Application shall return to the Unfunded List (Lack of AB 55 Loans) with a new unfunded approval date that is 90 calendar days from the date of Apportionment or approval of the advance release of funds request.

(d) In the event that the amount of requests received during a specific 30-calendar day filing period exceeds the funds available, the Board shall apportion based on the unfunded approval date and the Application received date up to the available cash from each bond source. Projects that have requested to participate in the priority funding process for which an Apportionment cannot be provided shall retain their date order position on the Unfunded List (Lack of AB 55 Loans). Requests not converted to Apportionments will not be returned to the district or kept by the OPSC.

(e) In the event that unexpected cash proceeds from sources other than bond funds become available for use for priority funding Apportionments, at a public meeting the Board may, based on considerations relevant to the amount of time available to effect a distribution of funds, waive the 30-calendar day filing provision specified in this section for impacted school districts to provide funds more rapidly.

(1) OPSC shall identify and invite impacted school districts to submit a priority funding request that meets all other criteria in (a) above.

(2) Requests submitted under this provision shall be valid from the date the priority funding request is submitted until the end of the regularly scheduled filing period specified above.

(3) Requests submitted under this provision must comply with all other requirements of the priority funding process in this Section and Section 1859.90.3.

(4) Districts may decline to submit a request outside the normal 30-calendar day filing period without consequence. If the option to submit a request is declined, the requirements to participate in the standard 30-calendar day filing periods specified in (a) above remain in effect.

(5) Unexpected cash proceeds from sources other than bond funds include, but are not limited to, the $250 million appropriated from the General Fund to the 2016 State School Facilities Fund as a result of the enactment of Statutes of 2021, Chapter 44, Section 163 (Assembly Bill 130).

(f) For purposes of this section "rescinded" or "rescission" shall mean that the Apportionment or approved advance release of funds request returns to unfunded approval status with a new unfunded approval date, except for (a)(5)(A). The new unfunded approval date will be 90 calendar days from the Apportionment date. The district or charter school will not be required to re-submit the Application and no further Application review will be required.

Cal. Code Regs. Tit. 2, § 1859.90.2

1. Renumbering of former section 1859.90.1 to new section 1859.90.2 filed 6-24-2010 as an emergency; operative 6-24-2010 (Register 2010, No. 26). A Certificate of Compliance must be transmitted to OAL by 12-21-2010 or emergency language will be repealed by operation of law on the following day.
2. Renumbering of former section 1859.90.2 to new section 1859.90.3 and new section 1859.90.2 filed 10-29-2010 as an emergency; operative 10-29-2010 (Register 2010, No. 44). A Certificate of Compliance must be transmitted to OAL by 4-27-2011 or emergency language will be repealed by operation of law on the following day.
3. Certificate of Compliance as to 6-24-2010 order transmitted to OAL 11-1-2010 and filed 12-16-2010 (Register 2010, No. 51).
4. Certificate of Compliance as to 10-29-2010 order transmitted to OAL 3-10-2011 and filed 4-21-2011 (Register 2011, No. 16).
5. Amendment filed 4-28-2011 as an emergency; operative 4-28-2011 (Register 2011, No. 17). A Certificate of Compliance must be transmitted to OAL by 10-25-2011 or emergency language will be repealed by operation of law on the following day.
6. Amendment of section heading, first paragraph and subsections (a) and (a)(4), new penultimate paragraph and amendment of last paragraph filed 7-27-2011 as an emergency; operative 7-27-2011 (Register 2011, No. 30). A Certificate of Compliance must be transmitted to OAL by 1-23-2012 or emergency language will be repealed by operation of law on the following day.
7. Certificate of Compliance as to 4-28-2011 order transmitted to OAL 8-10-2011 and filed 9-21-2011 (Register 2011, No. 38).
8. Certificate of Compliance as to 7-27-2011 order transmitted to OAL 11-10-2011 and filed 12-21-2011 (Register 2011, No. 51).
9. Amendment filed 12-6-2012; operative 12-6-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 49).
10. New subsections (a)(2) and (a)(4) and subsection renumbering filed 12-31-2012 as an emergency; operative 12-31-2012 (Register 2013, No. 1). A Certificate of Compliance must be transmitted to OAL by 7-1-2013 or emergency language will be repealed by operation of law on the following day.
11. Repealer of second and third paragraphs, new subsections (c)-(c)(2), subsection relettering and amendment of newly designated subsections (d)-(e) filed 3-25-2013 as an emergency; operative 3-25-2013 (Register 2013, No. 13). A Certificate of Compliance must be transmitted to OAL by 9-23-2013 or emergency language will be repealed by operation of law on the following day.
12. Editorial correction of subsections (a)-(a)(4) (Register 2013, No. 23).
13. Certificate of Compliance as to 12-31-2012 order transmitted to OAL 5-17-2013 and filed 6-25-2013 (Register 2013, No. 26).
14. Certificate of Compliance as to 3-25-2013 order transmitted to OAL 7-25-2013 and filed 8-23-2013 (Register 2013, No. 34).
15. Amendment filed 8-19-2014; operative 10-1-2014 (Register 2014, No. 34).
16. New subsection (a)(3), subsection renumbering, amendment of newly designated subsection (a)(6)(B), new subsections (a)(6)(C) and (b)(3), subsection renumbering and amendment of subsection (c) filed 9-20-2017 as an emergency; operative 9-20-2017 (Register 2017, No. 38). A Certificate of Compliance must be transmitted to OAL by 3-19-2018 or emergency language will be repealed by operation of law on the following day.
17. Certificate of Compliance as to 9-20-2017 order transmitted to OAL 3-15-2018 and filed 4-23-2018 (Register 2018, No. 17).
18. New subsections (e)-(e)(5), subsection relettering and amendment of NOTE filed 10-28-2021 as an emergency; operative 10-28-2021 (Register 2021, No. 44). A Certificate of Compliance must be transmitted to OAL by 4-26-2022 or emergency language will be repealed by operation of law on the following day.
19. Certificate of Compliance as to 10-28-2021 order, including further amendment of subsection (e), transmitted to OAL 3-17-2022 and filed 4-14-2022; amendments operative 4-14-2022 pursuant to Government Code section 11343.4(b)(3) (Register 2022, No. 15).
20. Amendment of subsection (a)(5) filed 11-7-2022 as an emergency; operative 11-7-2022 (Register 2022, No. 45). A Certificate of Compliance must be transmitted to OAL by 5-8-2023 or emergency language will be repealed by operation of law on the following day.
21. Certificate of Compliance as to 11-7-2022 order transmitted to OAL 5-3-2023 and filed 6-13-2023 (Register 2023, No. 24).

Note: Authority cited: Section 17070.35, Education Code. Reference: Sections 17070.41, 17071.75, 17072.12, 17072.30, 17073.10, 17074.16, 17076.10, 17077.40, 17077.42 and 17077.45, Education Code.

1. Renumbering of former section 1859.90.1 to new section 1859.90.2 filed 6-24-2010 as an emergency; operative 6-24-2010 (Register 2010, No. 26). A Certificate of Compliance must be transmitted to OAL by 12-21-2010 or emergency language will be repealed by operation of law on the following day.
2. Renumbering of former section 1859.90.2 to new section 1859.90.3 and new section 1859.90.2 filed 10-29-2010 as an emergency; operative 10-29-2010 (Register 2010, No. 44). A Certificate of Compliance must be transmitted to OAL by 4-27-2011 or emergency language will be repealed by operation of law on the following day.
3. Certificate of Compliance as to 6-24-2010 order transmitted to OAL 11-1-2010 and filed 12-16-2010 (Register 2010, No. 51).
4. Certificate of Compliance as to 10-29-2010 order transmitted to OAL 3-10-2011 and filed 4-21-2011 (Register 2011, No. 16).
5. Amendment filed 4-28-2011 as an emergency; operative 4-28-2011 (Register 2011, No. 17). A Certificate of Compliance must be transmitted to OAL by 10-25-2011 or emergency language will be repealed by operation of law on the following day.
6. Amendment of section heading, first paragraph and subsections (a) and (a)(4), new penultimate paragraph and amendment of last paragraph filed 7-27-2011 as an emergency; operative 7-27-2011 (Register 2011, No. 30). A Certificate of Compliance must be transmitted to OAL by 1-23-2012 or emergency language will be repealed by operation of law on the following day.
7. Certificate of Compliance as to 4-28-2011 order transmitted to OAL 8-10-2011 and filed 9-21-2011 (Register 2011, No. 38).
8. Certificate of Compliance as to 7-27-2011 order transmitted to OAL 11-10-2011 and filed 12-21-2011 (Register 2011, No. 51).
9. Amendment filed 12-6-2012; operative 12-6-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 49).
10. New subsections (a)(2) and (a)(4) and subsection renumbering filed 12-31-2012 as an emergency; operative 12-31-2012 (Register 2013, No. 1). A Certificate of Compliance must be transmitted to OAL by 7-1-2013 or emergency language will be repealed by operation of law on the following day.
11. Repealer of second and third paragraphs, new subsections (c)-(c)(2), subsection relettering and amendment of newly designated subsections (d)-(e) filed 3-25-2013 as an emergency; operative 3-25-2013 (Register 2013, No. 13). A Certificate of Compliance must be transmitted to OAL by 9-23-2013 or emergency language will be repealed by operation of law on the following day.
12. Editorial correction of subsections (a)-(a)(4) (Register 2013, No. 23).
13. Certificate of Compliance as to 12-31-2012 order transmitted to OAL 5-17-2013 and filed 6-25-2013 (Register 2013, No. 26).
14. Certificate of Compliance as to 3-25-2013 order transmitted to OAL 7-25-2013 and filed 8-23-2013 (Register 2013, No. 34).
15. Amendment filed 8-19-2014; operative 10/1/2014 (Register 2014, No. 34).
16. New subsection (a)(3), subsection renumbering, amendment of newly designated subsection (a)(6)(B), new subsections (a)(6)(C) and (b)(3), subsection renumbering and amendment of subsection (c) filed 9-20-2017 as an emergency; operative 9-20-2017 (Register 2017, No. 38). A Certificate of Compliance must be transmitted to OAL by 3-19-2018 or emergency language will be repealed by operation of law on the following day.
17. Certificate of Compliance as to 9-20-2017 order transmitted to OAL 3-15-2018 and filed 4/23/2018 (Register 2018, No. 17).
18. New subsections (e)-(e)(5), subsection relettering and amendment of Note filed 10-28-2021 as an emergency; operative 10/28/2021 (Register 2021, No. 44). A Certificate of Compliance must be transmitted to OAL by 4-26-2022 or emergency language will be repealed by operation of law on the following day.
19. Certificate of Compliance as to 10-28-2021 order, including further amendment of subsection (e), transmitted to OAL 3-17-2022 and filed 4-14-2022; amendments operative 4/14/2022 pursuant to Government Code section 11343.4(b)(3) (Register 2022, No. 15).
20. Amendment of subsection (a)(5) filed 11-7-2022 as an emergency; operative 11/7/2022 (Register 2022, No. 45). A Certificate of Compliance must be transmitted to OAL by 5-8-2023 or emergency language will be repealed by operation of law on the following day.
21. Certificate of Compliance as to 11-7-2022 order transmitted to OAL 5-3-2023 and filed 6/13/2023 (Register 2023, No. 24).