Return of Real Property Sale Proceeds (AB 308)

About this Service

Assembly Bill 308, Chapter 496, Statutes of 2013, established Education Code Section 17462.3.  This statute provided the State Allocation Board (SAB) the option to establish a program that would require a school district, county office of education, or a charter school that sells real property that was purchased with or modernized with, or on which improvements were constructed, to return moneys received through a state school facilities funding program.

At the June 2014 meeting, the SAB approved regulations to require the return of proceeds from the sale of real property under the following conditions:

• The local education agency received an Apportionment from the SAB for a project on the site within 10 years from the date the property is sold; and,
• The property was not sold to a charter school pursuant to Education Code Section 17457.5, a school district, a county office of education, or an agency that will use the property exclusively for the delivery of child care and development services pursuant to Education Code Section 17458; and

• The proceeds from the sale of the real property were not used for capital outlay; and

• The sale of the property must be reported to the Office of Public School Construction within 90 calendars from the sale of the property; and,
• The local education agency must return the moneys to the SAB within 90 calendar days of the SAB’s finding.