§ 54241 Local Agency Leaseback Approval

Government Code·California

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Key Takeaways

•A local government can't make a long-term leaseback deal unless they officially approve it first.
•The deal must be approved by a special rule (ordinance) that lets people vote on it if they want.
•This only applies to leaseback deals longer than five years.

Example

A city wants to lease a building to a company for 10 years and then lease it back.

The city must first pass a rule allowing the deal, and people in the city can vote to stop it if they don’t like it.

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

Official Source

View on CA.gov

§ 54241 Local Agency Leaseback Approval

No public leaseback of any local agency shall be entered into until the act of entering into a formal agreement with the public leaseback corporation shall have been approved by such local agency by ordinance which shall state that it is subject to the provisions for referendum applicable to such local agency. This section shall apply only to public leaseback agreements the term of which will exceed five years or more. (Added by Stats. 1972, Ch. 304.)

Last verified: January 22, 2026

Key Terms

agreement ordinance public leaseback corporation property

References

Official text at leginfo.legislature.ca.gov
California Legislature. Government Code. Section 54241.

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Key Takeaways

Example

Key Terms

Related Statutes

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