School facilities: lease-leaseback contracts: contractor relief.

Existing law, until January 1, 2019, authorizes the governing board of a school district, without advertising for bids, to lease real property owned by the school district for a minimum rental of $1 per year if the instrument by which this property is leased requires the lessee to construct, or provide for the construction of, a building to be used by the school district during the term of the lease and provides that the title to the building shall vest in the school district at the end of the lease. This bill would provide that when a project for the construction, alteration, repair, or improvement of any structure, building, or other improvement of any kind that was leased through an instrument pursuant to the provisions described above before July 1, 2015, and that instrument is later determined to be invalid, the contractor who entered into the contract with the school district is entitled to be paid the reasonable cost of the labor, equipment, materials, and services furnished by the contractor before the date of the determination, subject to specified conditions. This bill would declare that it is to take effect immediately as an urgency statute.