Cal. Code Regs. tit. 2 § 1863.23

Current through Register 2024 Notice Reg. No. 41, October 11, 2024
Section 1863.23 - Disposition of Replaced Facilities
(a) Property, real or personal, replaced through an apportionment shall be disposed of pursuant to these regulations in a manner approved by the Executive Officer and the net proceeds therefrom contributed as a reduction of any apportionment pursuant to Education Code Section 16318.

The "net proceeds" shall include only that portion of the proceeds attributable to the buildings replaced where the sale or lease pursuant to (b)(1) or (b)(5) of this regulation involves land not replaced through an apportionment.

Whenever the State's matching ratio has been increased by virtue of any apportionments pursuant to Education Code Sections 16336, 16339, 16339.6 or 16339.7 (supplemental loan), the entire "net proceeds" as determined above shall be applied as a reduction of the apportionments.

(b) For the purposes of Education Code Section 16318, "disposed of" is defined as one of the following:
(1) Sale to others of replaced real property and buildings thereon at market value.
(2) Demolition of the buildings, where no real property has been replaced.
(3) Sale to others at market value of the buildings and physical removal from the site, where no real property has been replaced.
(4) Conversion of the use of the building to other than a "school building" as set forth in Section 39214 or conversion to a recreational or community use for which the building is not a "school building" as defined by Section 39141. Such conversion may be approved by the Executive Officer only upon contribution by the district of a sum to be applied as a reduction of the apportionment of not less than $1.00 for each square foot of building area so converted plus the fair market value of any replaced real property to be retained with the building. Any building so converted shall have posted in a conspicuous place on such building a public notice stating that such building does not meet the structural standards imposed by law for earthquake safety for a school building.
(5) Lease of replaced land and/or improvements at fair market value. Before a lease can be approved, the district must submit and the Executive Officer approve a plan of disposition to be implemented at the expiration or termination of the lease. The plan submitted by the district must be in accordance with (1), (2), (3), or (4) above.
(c) Any school district which has received an apportionment for the replacement of a school building or real property based upon a plan of disposition of the replaced property and has neither complied with such plan nor submitted an alternate plan acceptable to the Executive Officer within 2 years of such apportionment or by March 1, 1978, whichever occurs later, shall be deemed to have elected to dispose of such replaced property pursuant to Regulation 1863.23(b)(4) and shall be required to contribute as a reduction of its apportionment an amount equal to $1.00 for each square foot building area plus the fair market value of any replaced real property to be retained with the building.

Cal. Code Regs. Tit. 2, § 1863.23

1. New subsection (c) filed 4-26-77; effective thirtieth day thereafter (Register 77, No. 18). For prior history, see Register 76, No. 18.
2. Amendment of subsections (a) and (b) and NOTE filed 4-29-77; effective thirtieth day thereafter (Register 77, No. 18).
3. Amendment filed 11-25-77 as an emergency; effective upon filing (Register 77, No. 48).
4. Certificate of Compliance filed 3-1-78 (Register 78, No. 9).

Note: Authority cited: Section 16316, Education Code. Reference: Section 16318 and 16341, Education Code.

1. New subsection (c) filed 4-26-77; effective thirtieth day thereafter (Register 77, No. 18). For prior history, see Register 76, No. 18.
2. Amendment of subsections (a) and (b) and NOTE filed 4-29-77; effective thirtieth day thereafter (Register 77, No. 18).
3. Amendment filed 11-25-77 as an emergency; effective upon filing (Register 77, No. 48).
4. Certificate of Compliance filed 3-1-78 (Register 78, No. 9).