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HomeEducation CodeCh. 2Art. 3§ 81345 Nonprofit Lease Approval Process

§ 81345 Nonprofit Lease Approval Process

Education Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 81345 Nonprofit Lease Approval Process

Key Takeaways

  • •A school board can decide to work with a nonprofit group to build or lease a building instead of getting bids from companies.
  • •The nonprofit must follow rules: only people the school board approves can be in charge, and any money made must go back to the school, not private people.
  • •The school board must say exactly where the building will be, what it will look like, how much rent they’ll charge (if any), and how long the lease will last.
  • •The nonprofit must hire the cheapest responsible builder for the project, following strict bidding rules.

Example

A community college needs a new science building but doesn’t want to handle construction themselves.

The college board can team up with a nonprofit run by people they approve. The nonprofit builds the science building on college land, using the cheapest good builder they can find. The college pays rent to use the building, but all extra money the nonprofit makes goes back to the college, not private pockets.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 81345 Nonprofit Lease Approval Process

As an alternative to obtaining sealed proposals as required by Sections 81336 and 81344, the governing board, in a public meeting, may adopt a resolution declaring its intention to enter into a lease or agreement pursuant to this article with a nonprofit corporation organized under Part 2 (commencing with Section 5110) of, or Part 3 (commencing with Section 7110) of, Division 2 of Title 1 of the Corporations Code, if the articles of incorporation or bylaws of the nonprofit corporation provide: (1) that no person shall be eligible to serve as a member or director of the corporation except a person initially approved by resolution of the governing board of the community college district, and (2) that no part of the net earnings of the corporation shall inure to the benefit of any member, private shareholder, individual, person, firm or corporation excepting only the district. The resolution shall describe, in a manner that identifies it, the available site upon which the building to be used by the district shall be constructed, shall generally describe the building to be constructed and state that the building shall be constructed pursuant to the plans and specifications adopted by the governing board therefor, shall, if such is the case, state the minimum yearly rental at which the governing board will lease real property belonging to the district upon which the building is to be constructed, and shall state the maximum number of years for which the community college district will lease the building, or building and site, as the case may be. Any building constructed by a nonprofit corporation pursuant to a lease or agreement entered into pursuant to this section shall be constructed under a contract awarded to the lowest responsible bidder pursuant to Sections 20671 to 20675, inclusive, of the Public Contract Code. Section 81350 of this code shall apply to this contract. (Amended by Stats. 1995, Ch. 758, Sec. 115. Effective January 1, 1996.)

Last verified: January 23, 2026

Key Terms

corporationresolutionagreementcontractpropertyshareholderbenefitnet

Related Statutes

  • § 17418 Nonprofit Lease Approval Process
  • § 17430 School District Lease Agreements
  • § 46148 High School Start Times
  • § 69982 Scholarshare Trust Management Powers
  • § 81350 Community College Wage Requirements

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 81345.
View Official Source