Cal. Code Regs. tit. 2 § 1860.16

Current through Register 2024 Notice Reg. No. 41, October 11, 2024

Section 1860.16 - Fund Release Process

OPSC will release State funds that have been Apportioned by the Board pursuant to Sections 1860.9, 1860.10, 1860.10.2, 1860.10.3 and 1860.12 when the following requirements have been satisfied:

(a) For an advance fund release for design costs, 40 percent of the grant determined in 1860.9(a) or 25 percent of the grant determined in 1860.12(a) will be released once an executed design, or design and site, Grant Agreement, as required by Section 1860.17, has been received by OPSC.

(b) For an advance fund release for two percent site other costs, funds will be released once an executed site, or design and site, Grant Agreement, as required by Section 1860.17, has been received by OPSC.

(c) For an advance fund release for site acquisition costs, other than two percent site other, funds will be released once an executed site, or design and site, Grant Agreement, as required by Section 1860.17, has been received by OPSC and the following requirements have been met:

(1) The School District has entered escrow for the site.

(2) There has been a final appraisal of the site.

(3) The School District received either contingent or final site approval from the California Department of Education.

(4) A complete Form SAB 70-02 has been received by OPSC.

(d) For New Construction Grant or Retrofit Grant funding, all unreleased funds will be released once an executed full grant agreement, as required by Section 1860.17, has been received by OPSC and the following requirements have been met:

(1) The School District's applicable matching share has already been deposited or expended by the School District for the project, unless the School District meets the requirements for Financial Hardship pursuant to Section 1860.14.

(2) The School District has entered into a binding contract(s) for at least 90 percent of the building construction activities for the project.

(3) The plans and specifications applicable to the state funded project have been approved by DSA.

(4) If the project includes site acquisition, there has been a final appraisal of the site, the site received written final approval by CDE and the School District has entered escrow for the site.

(5) A complete Form SAB 70-02 has been received by OPSC.

(e) For New Construction Grant or Retrofit Grant funding, without a request for an advance release of funds pursuant to Sections 1860.7(a) and 1860.7(c), a complete Fund Release Request (Form SAB 70-02) with all required approvals must be submitted within 18 months of the first Apportionment. If a complete Form SAB 70-02 is not received within 18 months of the first Apportionment, the Apportionment shall be rescinded without further board action.

(f) For an Apportionment received pursuant to Section 1860.7(b) and 1860.7(d), where submittal of the necessary CDE plan approval and/or DSA-approved plans and specifications were not required at the time the Board granted an Apportionment, the School District has up to 18 months to submit the required approvals and a complete Fund Release Request (Form SAB 70-02) from the date of the first Apportionment. The School District may submit in writing other evidence satisfactory to the Board of circumstances beyond the control of the School District that precludes the School District from submitting the required CDE plan approval, DSA-approved plans and specifications, and a complete Form SAB 70-02 within 18 months from the date of the first Apportionment. If the required submittals or other evidence in writing are not received within 18 months of the first Apportionment, the Apportionment shall be rescinded and the Full-Day Kindergarten Facilities Grant will return to the Program for reallocation without further Board action.

(1) School Districts submitting other evidence shall have up to three years from the date of the first Apportionment to submit the required approvals and a complete Fund Release Authorization (Form SAB 70-02). This shall not extend the deadline in Section 1860.18.

(g) Subject to available funds, site acquisition grants shall be adjusted based on actual costs prior to the release of funds.

(h) Prior to fund release, OPSC will verify that the School District has included multilevel classrooms in the plans for the project, if multilevel funding was requested.

(i) Financial hardship approval status by OPSC for a design and/or site advance will apply to any subsequent funding phases for the project(s) during the same application filing round, as established in Section 1860.6.

Cal. Code Regs. Tit. 2, § 1860.16

Note: Authority cited: Sections 17375(c) and 17375(h), Education Code. Reference: Section 17375(c), Education Code.

1. New section filed 12-14-2018 as an emergency; operative 12/14/2018 (Register 2018, No. 50). A Certificate of Compliance must be transmitted to OAL by 6-12-2019 or emergency language will be repealed by operation of law on the following day.
2. Certificate of Compliance as to 12-14-2018 order transmitted to OAL 6-11-2019 and filed 7/17/2019 (Register 2019, No. 29).
3. Amendment of subsections (e)-(f) filed 1-19-2021 as an emergency; operative 1-19-2021 (Register 2021, No. 4). Emergency expiration extended 60 days (Executive Order N-40-20) plus an additional 60 days (Executive Order N-71-20). A Certificate of Compliance must be transmitted to OAL by 11-16-2021 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 1-19-2021 order transmitted to OAL 7-1-2021 and filed 8/13/2021 (Register 2021, No. 33).
5. Amendment of Note filed 3-21-2022 as an emergency; operative 3/21/2022 (Register 2022, No. 12). A Certificate of Compliance must be transmitted to OAL by 9-19-2022 or emergency language will be repealed by operation of law on the following day.
6. Certificate of Compliance as to 3-21-2022 order transmitted to OAL 9-16-2022 and filed 10-27-2022; amendments effective 10/27/2022 pursuant to Government Code section 11343.4(b)(3) (Register 2022, No. 43).
7. Amendment of subsections (d)(2) and (e)-(f) and new subsection (f)(1) filed 6-3-2024; operative 10/1/2024 (Register 2024, No. 23).