Page 15 - Surplus Checklist

initiates between June 29, 2020, and July 1, 2024, the proceeds from the sale or lease
transaction that are received after June 30, 2024, are still considered proceeds that can be
deposited in accordance with this section. (Ed. Code § 17463.7.)

Effective as of October 2, 2013, the Legislature authorized the State Allocation Board (SAB)
to establish a program requiring school districts to return state school facilities funding to the
State if the school district sells surplus property that was purchased, modernized, or
improved using that funding, and the following conditions are met:

The property is not being sold to a charter school, another school district, a county office
of education, or any agency that will use the property exclusively for the delivery of child
care and development services.

The proceeds from the sale will not be used for capital outlay.

The property was purchased, or the improvements were constructed or modernized,
within 10 years before the property is sold. (Ed. Code §17462.3.)

The SAB has since established such a program by adopting sections 1700-1702 of Title 2 of
the California Code of Regulations.

X. Use of Proceeds of Lease with No Option to Purchase
There are no statutory limitations on the use of proceeds from a lease of surplus property if
the lease does not include an option to purchase.

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LozanoSmith.com Checklist for Sale or Lease of School District Surplus Property 14