1. (a) Require the applicant declare any local funds available for applicant contribution from any of the following sources:

   1. (1) Developer Fees
   2. (2) Certificates of Participation
   3. (3) Local General Obligation Bonds, Mello-Roos Bonds and School Facility Improvement District Bonds
   4. (4) Contribution from private industry groups or joint powers authority

   5. (5) Any other Capital Facility funding

      Upon apportionment, the OPSC will prepare a loan agreement on behalf of the Board for the applicant.

2. (b) The loan agreement shall stipulate the following:

   1. (1) The loan term shall be set at ten years with a one-time extension of five years if the applicant is in a severe hardship condition as evidenced by at least one of the following criteria:

      1. (A) For a school district or county office of education, the district or county office of education is listed on the current CDE List of Negative and Qualified Certifications of School Districts and County Offices of Education.
      2. (B) For a school district or county office of education, the amount due to the State for one or more projects would cause the district or county office of education to be listed on the CDE List of Negative and Qualified Certifications of School Districts and County Offices of Education report. Where the financial condition of a school district is involved, the county office of education must submit a letter to the OPSC on behalf of its representative school districts for consideration substantiating that the repayment will place the district on the CDE List of Negative and Qualified Certifications of School Districts and County Offices of Education. Where the financial condition of a county office of education is involved, the CDE must submit a letter to the OPSC on behalf of the county office of education for consideration substantiating that the repayment will place the county office of education on the CDE List of Negative and Qualified Certifications of School Districts and County Offices of Education.
      3. (C) For a joint powers authority, the amount due to the State for one or more projects would cause the joint powers authority severe financial hardship. The joint powers authority's authorizing agencies must submit a letter to the OPSC on behalf of the joint powers authority for consideration substantiating that the repayment may result in the joint powers authority being unable to meet its financial obligations for the current or subsequent two fiscal years.
   2. (2) The loan agreement shall include interest on the unpaid principal balance at the same rate as that charged by the Pooled Money Investment Board. The interest rate will be set on the date that the project funding apportionment is approved by the Board.
   3. (3) Interest starts accruing on the fund release date.
   4. (4) The first payment is due no later than two years from the fund release date.
   5. (5) Should the district default on the loan payments, the OPSC will initiate collection procedures from the School Fund Apportionment pursuant to Education Code Section 17076.10(c).

Any funding provided by these regulations, including funding as prescribed in Sections 1859.71.6 and 1859.77.4, shall require an applicant matching share contribution on a dollar-for-dollar basis. The applicant matching share may come from any source including, but not limited to, private industry groups, school districts, county offices of education, and joint powers authorities. Notwithstanding local fund sources previously identified in this paragraph, a grant recipient's local match shall not include funding from any state or federal sources that provide funding for Career Technical Education including, but not limited to the Career Technical Education Incentive Grant Program, the Career Technical Education Pathways Trust Program, the Career Technical Education Initiative and the Perkins Federal Career and Technical Education Grant Program.

If the applicant's available matching share does not equal the grant amount or the matching share is not immediately available, a loan may be made to the applicant. The amount of the loan shall be determined by compliance with (a) below. If the need for a loan is substantiated, it shall be paid over time through loan payments authorized by the Board.

Note: Authority cited: Sections 17070.35, 17078.72(k) and 17078.72(l), Education Code. Reference: Sections 17076.10 and 17078.72, Education Code.

History

1. New section filed 7-13-2007 as an emergency; operative 7-13-2007 (Register 2007, No. 28). Pursuant to Education Code section 17078.72(k) a Certificate of Compliance must be transmitted to OAL by 7-14-2008 or emergency language will be repealed by operation of law on the following day.

2. Editorial correction of History 1 (Register 2007, No. 52).

3. Certificate of Compliance as to 7-13-2007 order transmitted to OAL 3-18-2008 and filed 4-29-2008 (Register 2008, No. 18).

4. Amendment of first paragraph and Note filed 10-23-2012; operative 10-23-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 43).

5. Amendment of first paragraph filed 11-27-2017 as an emergency; operative 11-27-2017 (Register 2017, No. 48). A Certificate of Compliance must be transmitted to OAL by 5-29-2018 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 11-27-2017 order transmitted to OAL 5-21-2018 and filed 6-21-2018 (Register 2018, No. 25).

7. Amendment of subsection (b)(1) and new subsections (b)(1)(A)-(C) filed 1-24-2019; operative 1-24-2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 4).