[Stats. 1999, Chapter 374
(AB 117, Mazzoni)]

Adds Education Code Section 35182.5

This legislation prohibits a governing board from entering into a contract that grants exclusive advertising rights, or grants the right to the exclusive sale of carbonated beverages, throughout the district to a person, business, or corporation unless the governing board has adopted a policy after a public hearing.

The policy must ensure that the district has internal controls in place to protect the integrity of public funds and to ensure that funds raised benefit public education. The contract must be awarded after competitive bidding or issuance of a Request for Proposal.

This legislation also prohibits a school district-subject to various exceptions-from entering into a contract for "electronic products or services" if that contract "requires the dissemination of advertising to pupils." An example of such an arrangement is the Channel One service. Existing contracts remain in effect but cannot be renewed without compliance with new requirements.

The district may enter into the contract if the governing board does all of the following:

• Enters into the contract at a noticed public hearing
• Finds that the electronic products or service in question would be an integral component of the education of pupils
• Finds that the school district cannot afford to provide the electronic product or services unless it contracts to permit dissemination of advertising to pupils
• Provides written notice to the parents or guardians of pupil that the advertising will be used in the classroom or other learning centers 
• Offers the parents the opportunity to request in writing that the pupil not be exposed to the program that contains the advertising. Any request must be honored for the school year in which it is submitted, or longer if specified, but may be withdrawn by the parents or guardian at any time

In addition, this law prohibits a board form entering a contract with a private enterprise "that prohibits a school district employee from disparaging the goods or services of the party contracting with the board." It does, however, provide that a board "may sell advertising, products, or services on a nonexculsive basis." Finally, "a board may post public signs indicating the district's appreciation for the support by a person or business for the district's education program."