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Bid Thresholds Raised For 2023

According to the California Department of Education Office of Financial Accountability and Information Services, pursuant to Public Contract Code section 20111(a), the bid threshold for K-12 school district purchases of equipment, materials, supplies, and services (except construction services) has been adjusted to $109,300, effective January 1, 2023.

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Piggyback Contracts for Modular Components Are Ineligible for State Funding

Last month, the State Allocation Board (SAB) affirmed its position that school districts and county offices of education must competitively bid contracts to acquire modular building components for installation on a permanent foundation, and that “piggybacking” may not be used.

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Governor Newsom's Executive Order Regarding Economic Sanctions on Russia Creates Confusion for Local Agencies

On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 in response to Russia's invasion of Ukraine.

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Attorney General Takes Hardline Position on Permissible Use of School Bond Premium

On May 19, 2022, the California Attorney General (AG) published Opinion No. 14-202, stating that premium generated from the sale of school district general obligation bonds cannot be used for any purpose other than to pay debt service on the bonds.

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Emotional Distress Damages Unavailable in Section 504 Actions

On April 28, 2022, the United States Supreme Court narrowed the scope of damages available under Section 504 of the Rehabilitation Act of 1973 (Section 504), ruling that emotional distress damages are not recoverable in private actions to enforce Section 504 and other similar Spending Clause antidiscrimination statutes, including the Affordable Care Act (ACA), Title VI, and Title IX.

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Level I Developer Fee Raised, and Important New Requirements to Adopt Justification Studies and School Facilities Needs Analysis

In each even calendar year, the State Allocation Board (SAB) adopts an inflationary increase to what is commonly known as the “Level 1” school impact fee.  At its meeting on February 23, 2022, the SAB increased the statutory Level 1 fees by 17.45 percent, to $4.79 per square foot for residential construction and $0.78 per square foot for commercial construction.

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