BILL NUMBER: AB 1088 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 6, 2015
AMENDED IN ASSEMBLY APRIL 22, 2015
INTRODUCED BY Assembly Member O'Donnell
FEBRUARY 27, 2015
An act to amend Sections 17070.40, 17072.30, 17072.35, 17074.16,
17074.25, and 17074.26 of, to add Sections 17071.15, 17072.40, and
17073.16 to, to add Part 70 (commencing with Section 101100) to
Division 14 of Title 3 of, to add and repeal Section 17070.44 of, and
to repeal Sections 17070.99, 17071.33, 17071.35, and 17071.40 of,
the Education Code, relating to education facilities, by providing
the funds necessary therefor through an election for the issuance and
sale of bonds of the State of California and for the handling and
disposition of those funds.
LEGISLATIVE COUNSEL'S DIGEST
AB 1088, as amended, O'Donnell. Education facilities: bond act:
Greene Act.
(1) Existing law, the Leroy F. Greene School Facilities Act of
1998, requires the State Allocation Board to allocate to applicant
school districts prescribed per-unhoused-pupil state funding for
construction and modernization of school facilities, including
hardship funding, and supplemental funding for site development and
acquisition.
The act requires, for purposes of determining existing school
building capacity, the calculation to be adjusted as required for
first priority status, as provided, relating to multitrack year-round
schools, and requires, notwithstanding those provisions, the
existing school building capacity for a high school district to be
calculated without regard to multitrack year-round school
considerations.
This bill would repeal that provision.
This bill would require the State Allocation Board
board to convene a workgroup comprised of
representatives of specified entities to recommend changes to the act
that will shorten and streamline the process for construction and
modernization of school facilities. The bill would require the board
to submit a report containing those recommendations to the
Legislature by September 1, 2016.
The bill would authorize the board to require each school district
that elects to participate in a new construction program to
reestablish eligibility, as specified, and to conduct an inventory of
existing facilities for purposes of maintaining a statewide school
facilities inventory.
The bill would delete a provision requiring the board to conduct
an evaluation of the cost of new construction and modernization of
small high schools in conjunction with a specified pilot program.
The bill would state the intent of the Legislature to, commencing
with the proceeds from any bond approved by voters after January 1,
2016, adjust the local match requirements for a new construction
grant based on a school district's ability to raise local revenue.
The bill would, commencing with the proceeds from any bond
approved by voters after January 1, 2016, authorize a grant for new
construction to be used for additional specified purposes.
The bill would require the Office of Public School Construction to
recommend regulations to the State Allocation Board to provide
school districts with flexibility in designing instructional
facilities.
The bill would authorize the board to require each school district
that elects to participate in a modernization program funded by
the proceeds of any bond approved by voters after January 1, 2016,
to reestablish baseline eligibility, as
specified. specified, and to submit information
describing existing facilities for purposes of establishing a
statewide inventory, as specified.
The bill would state the intent of the Legislature to, commencing
with the proceeds from any bond approved by voters after January 1,
2016, adjust the local match requirements for a modernization grant
based on a school district's ability to raise local revenue.
The bill would, commencing with the proceeds from any bond
approved by voters after January 1, 2016, authorize a modernization
apportionment to be used for additional specified purposes.
The bill would require the Office of Public Construction to
provide the board recommendations on the value of allowing school
districts to replace existing facilities on existing schoolsites
under certain conditions.
(2) The California Constitution prohibits the Legislature from
creating a debt or liability that singly or in the aggregate with any
previous debts or liabilities exceeds the sum of $300,000, except by
an act that (A) authorizes the debt for a single object or work
specified in the act, (B) has been passed by a 2/3 vote of all the
Members elected to each house of the Legislature, (C) has been
submitted to the people at a statewide general or primary election,
and (D) has received a majority of all the votes cast for and against
it at that election.
This bill would enact the Kindergarten-University Public Education
Facilities Bond Act of ____ to authorize an unspecified amount of
state general obligation bonds to provide aid to school districts,
county superintendents of schools, county boards of education,
charter schools, the California Community Colleges, the University of
California, the Hastings College of the Law, and the California
State University to construct and modernize education facilities. The
proceeds of these bonds would be deposited in the continuously
appropriated ____ State School Facilities Fund, which this bill would
establish.
The proposed bond act would become operative only if approved by
the voters at an unspecified statewide general election, and the bill
would provide for its submission to the voters at that election.
(3) This bill would specify that certain of its provisions would
become operative only if the Kindergarten-University Public Education
Facilities Bond Act of ____ is approved by the voters at an
unspecified statewide general election.
(4) The This bill would
make conforming and nonsubstantive changes in related provisions of
existing law.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17070.40 of the Education Code is amended to
read:
17070.40. (a) (1) A fund is hereby established in the State
Treasury to be known as the 1998 State School Facilities Fund. All
money in the fund, including any money deposited in that fund from
any source whatsoever, and notwithstanding Section 13340 of the
Government Code, is hereby continuously appropriated without regard
to fiscal years for expenditure pursuant to this chapter.
(2) The board may apportion funds to school districts for the
purposes of this chapter from funds transferred to the 1998 State
School Facilities Fund from any source.
(3) The board may make apportionments in amounts not exceeding
those funds on deposit in the 1998 State School Facilities Fund, and
any amount of bonds authorized by the committee, but not yet sold by
the Treasurer.
(4) The board may make disbursements pursuant to any apportionment
made from any funds in the 1998 State School Facilities Fund,
irrespective of whether there exists at the time of the disbursement
an amount in the 1998 State School Facilities Fund sufficient to
permit payment in full of all apportionments previously made.
However, no disbursement shall be made from any funds required by law
to be transferred to the General Fund.
(b) (1) A fund is hereby established in the State Treasury to be
known as the 2002 State School Facilities Fund. All money in the
fund, including any money deposited in that fund from any source
whatsoever, and notwithstanding Section 13340 of the Government Code,
is hereby continuously appropriated without regard to fiscal years
for expenditure pursuant to this chapter.
(2) The board may apportion funds to school districts for the
purposes of this chapter from funds transferred to the 2002 State
School Facilities Fund from any source.
(3) The board may make apportionments in amounts not exceeding
those funds on deposit in the 2002 State School Facilities Fund, and
any amount of bonds authorized by the committee, but not yet sold by
the Treasurer.
(4) The board may make disbursements pursuant to any apportionment
made from any funds in the 2002 State School Facilities Fund,
irrespective of whether there exists at the time of the disbursement
an amount in the 2002 State School Facilities Fund sufficient to
permit payment in full of all apportionments previously made.
However, no disbursement shall be made from any funds required by law
to be transferred to the General Fund.
(c) (1) A fund is hereby established in the State Treasury to be
known as the 2004 State School Facilities Fund. All money in the
fund, including any money deposited in that fund from any source
whatsoever, and notwithstanding Section 13340 of the Government Code,
is hereby continuously appropriated without regard to fiscal years
for expenditure pursuant to this chapter.
(2) The board may apportion funds to school districts for the
purposes of this chapter from funds transferred to the 2004 State
School Facilities Fund from any source.
(3) The board may make apportionments in amounts not exceeding
those funds on deposit in the 2004 State School Facilities Fund, and
any amount of bonds authorized by the committee, but not yet sold by
the Treasurer.
(4) The board may make disbursements pursuant to any apportionment
made from any funds in the 2004 State School Facilities Fund,
irrespective of whether there exists at the time of the disbursement
an amount in the 2004 State School Facilities Fund sufficient to
permit payment in full of all apportionments previously made.
However, no disbursement shall be made from any funds required by law
to be transferred to the General Fund.
(d) (1) A fund is hereby established in the State Treasury, to be
known as the 2006 State School Facilities Fund. All money in the
fund, including any money deposited in that fund from any source
whatsoever, and notwithstanding Section 13340 of the Government Code,
is hereby continuously appropriated without regard to fiscal years
for expenditure pursuant to this chapter.
(2) The board may apportion funds to school districts for the
purposes of this chapter from funds transferred to the 2006 State
School Facilities Fund from any source.
(3) The board may make apportionments in amounts not exceeding
those funds on deposit in the 2006 State School Facilities Fund, and
any amount of bonds authorized by the committee, but not yet sold by
the Treasurer.
(4) The board may make disbursements pursuant to any apportionment
made from any funds in the 2006 State School Facilities Fund,
irrespective of whether there exists at the time of the disbursement
an amount in the 2006 State School Facilities Fund sufficient to
permit payment in full of all apportionments previously made.
However, no disbursement shall be made from any funds required by law
to be transferred to the General Fund.
(e) (1) A fund is hereby established in the State Treasury, to be
known as the ____ State School Facilities Fund. All money in the
fund, including any money deposited in that fund from any source
whatsoever, and notwithstanding Section 13340 of the Government Code,
is hereby continuously appropriated without regard to fiscal years
for expenditure pursuant to this chapter.
(2) The board may apportion funds to school districts for the
purposes of this chapter from funds transferred to the ____ State
School Facilities Fund from any source.
(3) The board may make apportionments in amounts not exceeding
those funds on deposit in the ____ State School Facilities Fund, and
any amount of bonds authorized by the committee, but not yet sold by
the Treasurer.
(4) The board may make disbursements pursuant to any apportionment
made from any funds in the ____ State School Facilities Fund,
irrespective of whether there exists at the time of the disbursement
an amount in the ____ State School Facilities Fund sufficient to
permit payment in full of all apportionments previously made.
However, no disbursement shall be made from any funds required by law
to be transferred to the General Fund.
SEC. 2. Section 17070.44 is added to the Education Code, to read:
17070.44. (a) The board shall convene a workgroup comprised of
representatives of the Office of Public School Construction, the
Department of Finance, the Division of the State
Architect, the department, other state agencies, and interested
stakeholders to recommend changes to this chapter that will shorten
and streamline the process for the construction and modernization of
school facilities. The board shall submit a report containing those
recommendations to the Legislature by September 1, 2016.
(b) (1) The report required to be submitted to the Legislature
pursuant to subdivision (a) shall be submitted in compliance with
Section 9795 of the Government Code.
(2) This section shall remain in effect only until January 1,
2021, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2021, deletes or extends
that date.
SEC. 3. Section 17070.99 of the Education Code is repealed.
SEC. 4. Section 17071.15 is added to the Education Code, to read:
17071.15. Notwithstanding Section 17071.10, the board may require
each school district that elects to participate in the new
construction program funded by the proceeds of any bond approved by
voters after January 1, 2016, to do both of the following:
(a) Reestablish eligibility pursuant to regulations adopted by the
board.
(b) Submit information describing existing facilities in the
school district for the purpose of establishing a statewide
inventory, pursuant to regulations adopted by the board.
SEC. 5. Section 17071.33 of the Education Code is repealed.
SEC. 6. Section 17071.35 of the Education Code is repealed.
SEC. 7. Section 17071.40 of the Education Code is repealed.
SEC. 8. Section 17072.30 of the Education Code is amended to read:
17072.30. (a) Subject to the availability of funds, and to the
determination of priority pursuant to Section 17072.25, if
applicable, the board shall apportion funds to an eligible school
district only upon the approval of the project by the Department of
General Services pursuant to the Field Act, as defined in Section
17281, and certification by the school district that the required 50
percent matching funds from local sources have been expended by the
district for the project, or have been deposited in the county fund,
or will be expended by the district by the time the project is
completed, in an amount at least equal to the proposed apportionment
pursuant to this chapter, prior to release of the state funds.
(b) It is the intent of the Legislature to adjust the local match
requirements for a new construction grant based on a school district'
s ability to raise local revenue, commencing with the proceeds from
any bond approved by voters after January 1, 2016.
SEC. 9. Section 17072.35 of the Education Code is amended to read:
17072.35. (a) A grant for new construction may be used for any
and all costs necessary to adequately house new pupils in any
approved project, and those costs may include only the following:
(1) The cost of design, engineering, testing, inspection, plan
checking, construction management, site acquisition and development,
evaluation and response action costs relating to hazardous substances
at a new or existing schoolsite, demolition, construction,
acquisition and installation of portable classrooms, landscaping,
necessary utility costs, utility connections and other fees,
equipment including telecommunication equipment to increase school
security, furnishings, and the upgrading of electrical systems or the
wiring or cabling of classrooms in order to accommodate educational
technology.
(2) The costs of acquiring an existing government or privately
owned building, or a privately financed school building, and
necessary costs of converting the government or privately owned
building for public school use.
(3) The costs of designs and materials that promote the efficient
use of energy and water, the maximum use of natural lighting and
indoor air quality, the use of recycled materials and materials that
emit a minimum of toxic substances, the use of acoustics conducive to
teaching and learning, and other characteristics of high
performance high-performance schools.
(b) Commencing with proceeds from any bond approved by voters
after January 1, 2016, in addition to the purposes identified in
subdivision (a), a grant for new construction may be used for the
construction of any of the following:
(1) Career technical education facilities.
(2) Joint use facilities.
(3) Preschool facilities located at a schoolsite.
SEC. 10. Section 17072.40 is added to the Education Code, to read:
17072.40. The Office of Public School Construction, in
consultation with the department, shall recommend to the board
regulations that will provide school districts with flexibility in
designing instructional facilities.
SEC. 11. Section 17073.16 is added to the Education Code, to read:
17073.16. The board may require each school district that elects
to participate in the modernization program funded by the proceeds of
any bond approved by voters after January 1, 2016, to
reestablish do both of the following:
(a) Reestablish baseline
eligibility for each schoolsite pursuant to regulations adopted by
the board.
(b) Submit information describing existing facilities in the
school district for the purpose of establishing a statewide
inventory, pursuant to regulations adopted by the board.
SEC. 12. Section 17074.16 of the Education Code is amended to
read:
17074.16. (a) The board shall release disbursements to school
districts with approved applications for modernization, to the extent
state funds are available for the state's 60-percent share, and the
school district has provided its 40-percent local match. Subject to
the availability of funds, the board shall apportion funds to an
eligible school district only upon the approval of the project by the
Department of General Services pursuant to the Field Act, as defined
in Section 17281, including, but not limited to, a project that
complies with the Field Act by complying with Section 17280.5, and
evidence that the certification by the school district that the
required 40-percent matching funds from local sources have been
expended by the district for the project, or have been deposited in
the county fund or will be expended by the district by the time of
completion of the project, and evidence that the district has entered
into a binding contract for the completion of that project. If state
funds are insufficient to fund all qualifying school districts, the
board shall fund all qualifying school districts in the order in
which the application for funding was approved by the board.
(b) This section shall apply only to an application that was filed
after April 29, 2002.
(c) It is the intent of the Legislature to adjust the local match
requirements for a modernization grant based on a school district's
ability to raise local revenue, commencing with the proceeds from any
bond approved by voters after January 1, 2016.
SEC. 13. Section 17074.25 of the Education Code is amended to
read:
17074.25. (a) A modernization apportionment may be used for an
improvement to extend the useful life of, or to enhance the physical
environment of, the school. The improvement may only include the cost
of design, engineering, testing, inspection, plan checking,
construction management, demolition, construction, the replacement of
portable classrooms, necessary utility costs, utility connection and
other fees, the purchase and installation of air-conditioning
equipment and insulation materials and related costs, furniture and
equipment, including telecommunication equipment to increase school
security, fire safety improvements, playground safety improvements,
the identification, assessment, or abatement of hazardous asbestos,
seismic safety improvements, and the upgrading of electrical systems
or the wiring or cabling of classrooms in order to accommodate
educational technology. A modernization grant may not be used for
costs associated with acquisition and development of real property or
for routine maintenance and repair.
(b) A modernization apportionment may also be used for the cost of
designs and materials that promote the efficient use of energy and
water, the maximum use of natural lighting and indoor air quality,
the use of recycled materials and materials that emit a minimum of
toxic substances, the use of acoustics conducive to teaching and
learning, and other characteristics of high-performance schools.
(c) Commencing with proceeds from any bond approved by voters
after January 1, 2016, in addition to the purposes identified in
subdivisions (a) and (b), a modernization apportionment may be used
for any of the following:
(1) Rehabilitating existing career technical education facilities.
(2) Seismic retrofits.
(3) Rehabilitating an existing facility for use by a preschool
located at an existing schoolsite.
(d) (1) The Legislature finds and declares that the state has an
aging and deteriorating school facilities inventory and in certain
circumstances it would be prudent to replace those facilities rather
than to expend state and local modernization bond funds.
(2) The Office of Public School Construction shall provide to the
board recommendations on the value of allowing school districts to
replace existing facilities on existing schoolsites under certain
conditions.
SEC. 14. Section 17074.26 of the Education Code is amended to
read:
17074.26. The board shall adopt regulations to adjust the
per-pupil amounts set forth in Section 17074.10 for modernization
projects for school buildings that are 50 years old or older based
upon the higher costs associated with modernizing older buildings.
SEC. 15. Part 70 (commencing with Section 101100) is added to
Division 14 of Title 3 of the Education Code, to read:
PART 70. KINDERGARTEN-UNIVERSITY PUBLIC EDUCATION FACILITIES
BOND ACT OF ____
CHAPTER 1. GENERAL
101100. This part shall be known and may be cited as the
Kindergarten-University Public Education Facilities Bond Act of ____.
101101. The incorporation of, or reference to, any provision of
California statutory law in this part includes all acts amendatory
thereof and supplementary thereto.
101102. (a) Bonds in the total amount of ____ dollars ($____),
not including the amount of any refunding bonds issued in accordance
with Sections 101130, 101139, and 101159, or so much thereof as is
necessary, may be issued and sold to provide a fund to be used for
carrying out the purposes expressed in this part and to reimburse the
General Obligation Bond Expense Revolving Fund pursuant to Section
16724.5 of the Government Code. The bonds, when sold, shall be and
constitute a valid and binding obligation of the State of California,
and the full faith and credit of the State of California is hereby
pledged for the punctual payment of the principal of, and interest
on, the bonds as the principal and interest become due and payable.
(b) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the State School Building Finance Committee established
by Section 15909 or the Higher Education Facilities Finance
Committee established pursuant to Section 67353, as the case may be,
at any different times necessary to service expenditures required by
the apportionments.
CHAPTER 2. KINDERGARTEN THROUGH GRADE 12
Article 1. Kindergarten Through Grade 12 School Facilities
Program Provisions
101110. The proceeds of bonds issued and sold pursuant to Article
2 (commencing with Section 101120) shall be deposited in the ____
State School Facilities Fund established in the State Treasury under
subdivision (e) of Section 17070.40 and shall be allocated by the
State Allocation Board pursuant to this chapter.
101111. All moneys deposited in the ____ State School Facilities
Fund for the purposes of this chapter shall be available to provide
aid to school districts, county superintendents of schools, and
county boards of education of the state in accordance with the Leroy
F. Greene School Facilities Act of 1998 (Chapter 12.5 (commencing
with Section 17070.10) of Part 10 of Division 1 of Title 1), as set
forth in Section 101112, to provide funds to repay any money advanced
or loaned to the ____ State School Facilities Fund under any act of
the Legislature, together with interest provided for in that act, and
to reimburse the General Obligation Bond Expense Revolving Fund
pursuant to Section 16724.5 of the Government Code.
101112. (a) The proceeds from the sale of bonds, issued and sold
for the purposes of this chapter, shall be allocated in accordance
with the following schedule:
(1) The amount of ____ dollars ($____) for new construction of
school facilities of applicant school districts under Chapter 12.5
(commencing with Section 17070.10) of Part 10 of Division 1 of Title
1.
(2) The amount of ____ dollars ($____) shall be available for
providing school facilities to charter schools pursuant to Article 12
(commencing with Section 17078.52) of Chapter 12.5 of Part 10 of
Division 1 of Title 1.
(3) The amount of ____ dollars ($____) for the modernization of
school facilities pursuant to Chapter 12.5 (commencing with Section
17070.10) of Part 10 of Division 1 of Title 1.
(b) School districts may use funds allocated pursuant to paragraph
(3) of subdivision (a) only for one or more of the following
purposes in accordance with Chapter 12.5 (commencing with Section
17070.10) of Part 10 of Division 1 of Title 1:
(1) The purchase and installation of air-conditioning equipment
and insulation materials, and related costs.
(2) Construction projects or the purchase of furniture or
equipment designed to increase school security or playground safety.
(3) The identification, assessment, or abatement in school
facilities of hazardous asbestos.
(4) Project funding for high-priority roof replacement projects.
(5) Any other modernization of facilities pursuant to Chapter 12.5
(commencing with Section 17070.10) of Part 10 of Division 1 of Title
1.
(c) Funds allocated pursuant to paragraph (1) of subdivision (a)
may also be utilized to provide new construction grants for eligible
applicant county boards of education under Chapter 12.5 (commencing
with Section 17070.10) of Part 10 of Division 1 of Title 1 for
funding classrooms for severely handicapped pupils, or for funding
classrooms for county community school pupils.
Article 2. Kindergarten Through Grade 12 School Facilities
Fiscal Provisions
101120. (a) Of the total amount of bonds authorized to be issued
and sold pursuant to Chapter 1 (commencing with Section 101000),
bonds in the amount of ____ dollars ($____) not including the amount
of any refunding bonds issued in accordance with Section 101130, or
so much thereof as is necessary, may be issued and sold to provide a
fund to be used for carrying out the purposes expressed in this
chapter and to reimburse the General Obligation Bond Expense
Revolving Fund pursuant to Section 16724.5 of the Government Code.
The bonds, when sold, shall be and constitute a valid and binding
obligation of the State of California, and the full faith and credit
of the State of California is hereby pledged for the punctual payment
of the principal of, and interest on, the bonds as the principal and
interest become due and payable.
(b) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the State School Building Finance Committee established
pursuant to Section 15909 at any different times necessary to
service expenditures required by the apportionments.
101121. The State School Building Finance Committee, established
by Section 15909 and composed of the Governor, the Controller, the
Treasurer, the Director of Finance, and the Superintendent, or their
designated representatives, all of whom shall serve thereon without
compensation, and a majority of whom shall constitute a quorum, is
continued in existence for the purpose of this chapter. The Treasurer
shall serve as chairperson of the committee. Two Members of the
Senate appointed by the Senate Committee on Rules, and two Members of
the Assembly appointed by the Speaker of the Assembly, shall meet
with and provide advice to the committee to the extent that the
advisory participation is not incompatible with their respective
positions as Members of the Legislature. For the purposes of this
chapter, the Members of the Legislature shall constitute an interim
investigating committee on the subject of this chapter and, as that
committee, shall have the powers granted to, and duties imposed upon,
those committees by the Joint Rules of the Senate and the Assembly.
The Director of Finance shall provide assistance to the committee as
it may require. The Attorney General of the state is the legal
adviser of the committee.
101122. (a) The bonds authorized by this chapter shall be
prepared, executed, issued, sold, paid, and redeemed as provided in
the State General Obligation Bond Law (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code), and all of the provisions of that law, except Section 16727 of
the Government Code to the extent that it conflicts with this part,
apply to the bonds and to this chapter and are hereby incorporated
into this chapter as though set forth in full within this chapter.
(b) For purposes of the State General Obligation Bond Law, the
State Allocation Board is designated the "board" for purposes of
administering the ____ State School Facilities Fund.
101123. (a) Upon request of the State Allocation Board, the State
School Building Finance Committee shall determine whether or not it
is necessary or desirable to issue bonds authorized pursuant to this
chapter in order to fund the apportionments and, if so, the amount of
bonds to be issued and sold. Successive issues of bonds may be
authorized and sold to fund those apportionments progressively, and
it is not necessary that all of the bonds authorized to be issued be
sold at any one time.
(b) A request of the State Allocation Board pursuant to
subdivision (a) shall be supported by a statement of the
apportionments made and to be made for the purposes described in
Sections 101111 and 101112.
101124. There shall be collected each year and in the same manner
and at the same time as other state revenue is collected, in
addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year. It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act that is necessary to collect that additional sum.
101125. Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this chapter, an amount that will equal
the total of the following:
(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this chapter, as the
principal and interest become due and payable.
(b) The sum necessary to carry out Section 101128, appropriated
without regard to fiscal years.
101126. The State Allocation Board may request the Pooled Money
Investment Board to make a loan from the Pooled Money Investment
Account or any other approved form of interim financing, in
accordance with Section 16312 of the Government Code, for the purpose
of carrying out this chapter. The amount of the request shall not
exceed the amount of the unsold bonds that the committee, by
resolution, has authorized to be sold for the purpose of carrying out
this chapter. The board shall execute any documents required by the
Pooled Money Investment Board to obtain and repay the loan. Any
amounts loaned shall be deposited in the fund to be allocated by the
board in accordance with this chapter.
101127. Notwithstanding any other provision of this chapter, or
of the State General Obligation Bond Law, if the Treasurer sells
bonds pursuant to this chapter that include a bond counsel opinion to
the effect that the interest on the bonds is excluded from gross
income for federal tax purposes, subject to designated conditions,
the Treasurer may maintain separate accounts for the investment of
bond proceeds and for the investment earnings on those proceeds. The
Treasurer may use or direct the use of those proceeds or earnings
to pay any rebate, penalty, or
other payment required under federal law or take any other action
with respect to the investment and use of those bond proceeds
required or desirable under federal law to maintain the tax-exempt
status of those bonds and to obtain any other advantage under federal
law on behalf of the funds of this state.
101128. For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds that
have been authorized by the State School Building Finance Committee
to be sold for the purpose of carrying out this chapter. Any amounts
withdrawn shall be deposited in the ____ State School Facilities Fund
consistent with this chapter. Any money made available under this
section shall be returned to the General Fund, plus an amount equal
to the interest that the money would have earned in the Pooled Money
Investment Account, from proceeds received from the sale of bonds for
the purpose of carrying out this chapter.
101129. All money deposited in the ____ State School Facilities
Fund that is derived from premium and accrued interest on bonds sold
shall be reserved in the fund and shall be available for transfer to
the General Fund as a credit to expenditures for bond interest.
101130. The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of Chapter 4 of Part 3 of Division 4
of Title 2 of the Government Code, which is a part of the State
General Obligation Bond Law. Approval by the voters of the state for
the issuance of the bonds described in this chapter includes the
approval of the issuance of any bonds issued to refund any bonds
originally issued under this chapter or any previously issued
refunding bonds.
101131. The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this chapter are
not "proceeds of taxes" as that term is used in Article XIII B of
the California Constitution, the disbursement of these proceeds is
not subject to the limitations imposed by that article.
CHAPTER 3. CALIFORNIA COMMUNITY COLLEGE FACILITIES
Article 1. General
101132. (a) The ____ California Community College Capital Outlay
Bond Fund is hereby established in the State Treasury for deposit of
funds from the proceeds of bonds issued and sold for the purposes of
this chapter.
(b) The Higher Education Facilities Finance Committee established
pursuant to Section 67353 is hereby authorized to create a debt or
debts, liability or liabilities, of the State of California pursuant
to this chapter for the purpose of providing funds to aid the
California Community Colleges.
Article 2. California Community College Program Provisions
101133. (a) From the proceeds of bonds issued and sold pursuant
to Article 3 (commencing with Section 101134), the sum of ____
dollars ($____) shall be deposited in the ____ California Community
College Capital Outlay Bond Fund for the purposes of this article.
When appropriated, these funds shall be available for expenditure for
the purposes of this article.
(b) The purposes of this article include assisting in meeting the
capital outlay financing needs of the California Community Colleges.
(c) Proceeds from the sale of bonds issued and sold for the
purposes of this article may be used to fund construction on existing
campuses, including the construction of buildings and the
acquisition of related fixtures, construction of facilities that may
be used by more than one segment of public higher education
(intersegmental), the renovation and reconstruction of facilities,
site acquisition, the equipping of new, renovated, or reconstructed
facilities, which equipment shall have an average useful life of 10
years; and to provide funds for the payment of preconstruction costs,
including, but not limited to, preliminary plans and working
drawings for facilities of the California Community Colleges.
Article 3. California Community College Fiscal Provisions
101134. (a) Of the total amount of bonds authorized to be issued
and sold pursuant to Chapter 1 (commencing with Section 101100),
bonds in the total amount of ____ dollars ($____), not including the
amount of any refunding bonds issued in accordance with Section
101139, or so much thereof as is necessary, may be issued and sold to
provide a fund to be used for carrying out the purposes expressed in
this chapter and to reimburse the General Obligation Bond Expense
Revolving Fund pursuant to Section 16724.5 of the Government Code.
The bonds, when sold, shall be and constitute a valid and binding
obligation of the State of California, and the full faith and credit
of the State of California is hereby pledged for the punctual payment
of the principal of, and interest on, the bonds as the principal and
interest become due and payable.
(b) It is the intent of the Legislature that the California
Community Colleges annually consider, as part of their annual capital
outlay planning process, the inclusion of facilities that may be
used by more than one segment of public higher education
(intersegmental), and, that on or before May 15 of each year, those
entities report their findings to the budget committees of each house
of the Legislature.
(c) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the Higher Education Facilities Finance Committee
established pursuant to Section 67353 at any different times
necessary to service expenditures required by the apportionments.
101134.5. (a) The bonds authorized by this chapter shall be
prepared, executed, issued, sold, paid, and redeemed as provided in
the State General Obligation Bond Law (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code), and all of the provisions of that law, except Section 16727 of
the Government Code to the extent that it conflicts with this part,
apply to the bonds and to this chapter and are hereby incorporated
into this chapter as though set forth in full within this chapter.
(b) For the purposes of the State General Obligation Bond Law,
each state agency administering an appropriation of the ____
Community College Capital Outlay Bond Fund is designated as the
"board" for projects funded pursuant to this chapter.
(c) The proceeds of the bonds issued and sold pursuant to this
chapter shall be available for the purpose of funding aid to the
California Community Colleges for the construction on existing or new
campuses, and their respective off-campus centers and joint use and
intersegmental facilities, as set forth in this chapter.
101135. The Higher Education Facilities Finance Committee
established pursuant to Section 67353 shall authorize the issuance of
bonds under this chapter only to the extent necessary to fund the
apportionments for the purposes described in this chapter that are
expressly authorized by the Legislature in the annual Budget Act.
Pursuant to that legislative direction, the committee shall determine
whether or not it is necessary or desirable to issue bonds
authorized pursuant to this chapter in order to carry out the
purposes described in this chapter and, if so, the amount of bonds to
be issued and sold. Successive issues of bonds may be authorized and
sold to carry out those actions progressively, and it is not
necessary that all of the bonds authorized to be issued be sold at
any one time.
101135.5. There shall be collected each year and in the same
manner and at the same time as other state revenue is collected, in
addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year. It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act which is necessary to collect that additional sum.
101136. Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this chapter, an amount that will equal
the total of the following:
(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this chapter, as the
principal and interest become due and payable.
(b) The sum necessary to carry out Section 101137.5, appropriated
without regard to fiscal years.
101136.5. The board, as defined in subdivision (b) of Section
101134.5, may request the Pooled Money Investment Board to make a
loan from the Pooled Money Investment Account or any other approved
form of interim financing, in accordance with Section 16312 of the
Government Code, for the purpose of carrying out this chapter. The
amount of the request shall not exceed the amount of the unsold bonds
that the committee, by resolution, has authorized to be sold for the
purpose of carrying out this chapter. The board, as defined in
subdivision (b) of Section 101134.5, shall execute any documents
required by the Pooled Money Investment Board to obtain and repay the
loan. Any amounts loaned shall be deposited in the fund to be
allocated by the board in accordance with this chapter.
101137. Notwithstanding any other provision of this chapter, or
of the State General Obligation Bond Law, if the Treasurer sells
bonds pursuant to this chapter that include a bond counsel opinion to
the effect that the interest on the bonds is excluded from gross
income for federal tax purposes, subject to designated conditions,
the Treasurer may maintain separate accounts for the investment of
bond proceeds and for the investment earnings on those proceeds. The
Treasurer may use or direct the use of those proceeds or earnings to
pay any rebate, penalty, or other payment required under federal law
or take any other action with respect to the investment and use of
those bond proceeds required or desirable under federal law to
maintain the tax-exempt status of those bonds and to obtain any other
advantage under federal law on behalf of the funds of this state.
101137.5. (a) For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds that
have been authorized by the Higher Education Facilities Finance
Committee to be sold for the purpose of carrying out this chapter.
Any amounts withdrawn shall be deposited in the ____ California
Community College Capital Outlay Bond Fund consistent with this
chapter. Any money made available under this section shall be
returned to the General Fund, plus an amount equal to the interest
that the money would have earned in the Pooled Money Investment
Account, from proceeds received from the sale of bonds for the
purpose of carrying out this chapter.
(b) Any request forwarded to the Legislature and the Department of
Finance for funds from this bond issue for expenditure for the
purposes described in this chapter by the California Community
Colleges shall be accompanied by the five-year capital outlay plan
that reflects the needs and priorities of the community college
system and is prioritized on a statewide basis. Requests shall
include a schedule that prioritizes the seismic retrofitting needed
to significantly reduce, in the judgment of the particular college,
seismic hazards in buildings identified as high priority by the
college.
101138. All money deposited in the ____ California Community
College Capital Outlay Bond Fund that is derived from premium and
accrued interest on bonds sold shall be reserved in the fund and
shall be available for transfer to the General Fund as a credit to
expenditures for bond interest.
101139. The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of Chapter 4 of Part 3 of Division 4
of Title 2 of the Government Code, which is a part of the State
General Obligation Bond Law. Approval by the voters of the state for
the issuance of the bonds described in this chapter includes the
approval of the issuance of any bonds issued to refund any bonds
originally issued under this chapter or any previously issued
refunding bonds.
101139.5. The Legislature hereby finds and declares that,
inasmuch as the proceeds from the sale of bonds authorized by this
chapter are not "proceeds of taxes" as that term is used in Article
XIII B of the California Constitution, the disbursement of these
proceeds is not subject to the limitations imposed by that article.
CHAPTER 4. UNIVERSITY FACILITIES
Article 1. General
101140. (a) The system of public universities in this state
includes the University of California, the Hastings College of the
Law, and the California State University, and their respective
off-campus centers.
(b) The ____ University Capital Outlay Bond Fund is hereby
established in the State Treasury for deposit of funds from the
proceeds of bonds issued and sold for the purposes of this chapter.
(c) The Higher Education Facilities Finance Committee established
pursuant to Section 67353 is hereby authorized to create a debt or
debts, liability or liabilities, of the State of California pursuant
to this chapter for the purpose of providing funds to aid the
University of California, the Hastings College of the Law, and the
California State University.
Article 2. Program Provisions Applicable to the University of
California and the Hastings College of the Law
101141. (a) From the proceeds of bonds issued and sold pursuant
to Article 4 (commencing with Section 101150), the sum of ____
dollars ($____) shall be deposited in the ____ University Capital
Outlay Bond Fund for the purposes of this article. When appropriated,
these funds shall be available for expenditure for the purposes of
this article.
(b) The purposes of this article include assisting in meeting the
capital outlay financing needs of the University of California and
the Hastings College of the Law.
(c) Proceeds from the sale of bonds issued and sold for the
purposes of this article may be used to fund construction on existing
campuses, including the construction of buildings and the
acquisition of related fixtures, construction of facilities that may
be used by more than one segment of public higher education
(intersegmental), the renovation and reconstruction of facilities,
site acquisition, the equipping of new, renovated, or reconstructed
facilities, which equipment shall have an average useful life of 10
years; and to provide funds for the payment of preconstruction costs,
including, but not limited to, preliminary plans and working
drawings for facilities of the University of California and the
Hastings College of the Law.
Article 3. Program Provisions Applicable to the California
State University
101142. (a) From the proceeds of bonds issued and sold pursuant
to Article 4 (commencing with Section 101150), the sum of ____
dollars ($____) shall be deposited in the ____ University Capital
Outlay Bond Fund for the purposes of this article. When appropriated,
these funds shall be available for expenditure for the purposes of
this article.
(b) The purposes of this article include assisting in meeting the
capital outlay financing needs of the California State University.
(c) Proceeds from the sale of bonds issued and sold for the
purposes of this article may be used to fund construction on existing
campuses, including the construction of buildings and the
acquisition of related fixtures, construction of facilities that may
be used by more than one segment of public higher education
(intersegmental), the renovation and reconstruction of facilities,
site acquisition, the equipping of new, renovated, or reconstructed
facilities, which equipment shall have an average useful life of 10
years; and to provide funds for the payment of preconstruction costs,
including, but not limited to, preliminary plans and working
drawings for facilities of the California State University.
Article 4. University Fiscal Provisions
101150. (a) Of the total amount of bonds authorized to be issued
and sold pursuant to Chapter 1 (commencing with Section 101100),
bonds in the amount of ____ dollars ($____), not including the amount
of any refunding bonds issued in accordance with Section 101159, or
so much thereof as is necessary, may be issued and sold to provide a
fund to be used for carrying out the purposes expressed in this
chapter and to reimburse the General Obligation Bond Expense
Revolving Fund pursuant to Section 16724.5 of the Government Code.
The bonds, when sold, shall be and constitute a valid and binding
obligation of the State of California, and the full faith and credit
of the State of California is hereby pledged for the punctual payment
of the principal of, and interest on, the bonds as the principal and
interest become due and payable.
(b) It is the intent of the Legislature that the University of
California and the California State University annually consider, as
part of their annual capital outlay planning process, the inclusion
of facilities that may be used by more than one segment of public
higher education (intersegmental), and, that on or before May 15 of
each year, those entities report their findings to the budget
committees of each house of the Legislature.
(c) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the Higher Education Facilities Finance Committee
established pursuant to Section 67353 at any different times
necessary to service expenditures required by the apportionments.
101151. (a) The bonds authorized by this chapter shall be
prepared, executed, issued, sold, paid, and redeemed as provided in
the State General Obligation Bond Law (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code), and all of the provisions of that law, except Section 16727 of
the Government Code to the extent that it conflicts with this part,
apply to the bonds and to this chapter and are hereby incorporated
into this chapter as though set forth in full within this chapter.
(b) For the purposes of the State General Obligation Bond Law,
each state agency administering an appropriation of the ____
University Capital Outlay Bond Fund is designated as the "board" for
projects funded pursuant to this chapter.
(c) The proceeds of the bonds issued and sold pursuant to this
chapter shall be available for the purpose of funding aid to the
University of California, the Hastings College of the Law, and the
California State University, for the construction on existing or new
campuses, and their respective off-campus centers and joint use and
intersegmental facilities, as set forth in this chapter.
101152. The Higher Education Facilities Finance Committee
established pursuant to Section 67353 shall authorize the issuance of
bonds under this chapter only to the extent necessary to fund the
apportionments for the purposes described in this chapter that are
expressly authorized by the Legislature in the annual Budget Act.
Pursuant to that legislative direction, the committee shall determine
whether or not it is necessary or desirable to issue bonds
authorized pursuant to this chapter in order to carry out the
purposes described in this chapter and, if so, the amount of bonds to
be issued and sold. Successive issues of bonds may be authorized and
sold to carry out those actions progressively, and it is not
necessary that all of the bonds authorized to be issued be sold at
any one time.
101153. There shall be collected each year and in the same manner
and at the same time as other state revenue is collected, in
addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year. It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act which is necessary to collect that additional sum.
101154. Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this chapter, an amount that will equal
the total of the following:
(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this chapter, as the
principal and interest become due and payable.
(b) The sum necessary to carry out Section 101157, appropriated
without regard to fiscal years.
101155. The board, as defined in subdivision (b) of Section
101151, may request the Pooled Money Investment Board to make a loan
from the Pooled Money Investment Account or any other approved form
of interim financing, in accordance with Section 16312 of the
Government Code, for the purpose of carrying out this chapter. The
amount of the request shall not exceed the amount of the unsold bonds
that the committee, by resolution, has authorized to be sold for the
purpose of carrying out this chapter. The board, as defined in
subdivision (b) of Section 101151, shall execute any documents
required by the Pooled Money Investment Board to obtain and repay the
loan. Any amounts loaned shall be deposited in the fund to be
allocated by the board in accordance with this chapter.
101156. Notwithstanding any other provision of this chapter, or
of the State General Obligation Bond Law, if the Treasurer sells
bonds pursuant to this chapter that include a bond counsel opinion to
the effect that the interest on the bonds is excluded from gross
income for federal tax purposes, subject to designated conditions,
the Treasurer may maintain separate accounts for the investment of
bond proceeds and for the investment earnings on those proceeds. The
Treasurer may use or direct the use of those proceeds or earnings to
pay any rebate, penalty, or other payment required under federal law
or take any other action with respect to the investment and use of
those bond proceeds required or desirable under federal law to
maintain the tax-exempt status of those bonds and to obtain any other
advantage under federal law on behalf of the funds of this state.
101157. (a) For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds that
have been authorized by the Higher Education Facilities Finance
Committee to be sold for the purpose of carrying out this chapter.
Any amounts withdrawn shall be deposited in the ____ University
Capital Outlay Bond Fund consistent with this chapter. Any money made
available under this section shall be returned to the General Fund,
plus an amount equal to the interest that the money would have earned
in the Pooled Money Investment Account, from proceeds received from
the sale of bonds for the purpose of carrying out this chapter.
(b) Any request forwarded to the Legislature and the Department of
Finance for funds from this bond issue for expenditure for the
purposes described in this chapter by the University of California,
the Hastings College of the Law, or the California State University
shall be accompanied by the five-year capital outlay plan. Requests
forwarded by a university or college shall include a schedule that
prioritizes the seismic retrofitting needed to significantly reduce,
in the judgment of the particular university or college, seismic
hazards in buildings identified as high priority by the university or
college.
101158. All money deposited in the ____ University Capital Outlay
Bond Fund that is derived from premium and accrued interest on bonds
sold shall be reserved in the fund and shall be available for
transfer to the General Fund as a credit to expenditures for bond
interest.
101159. The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of Chapter 4 of Part 3 of Division 4
of Title 2 of the Government Code, which is a part of the State
General Obligation Bond Law. Approval by the voters of the state for
the issuance of the bonds described in this chapter includes the
approval of the issuance of any bonds issued to refund any bonds
originally issued under this chapter or any previously issued
refunding bonds.
101160. The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this chapter are
not "proceeds of taxes" as that term is used in Article XIII B of
the California Constitution, the disbursement of these proceeds is
not subject to the limitations imposed by that article.
SEC. 16. The Secretary of State shall submit Section 15 of this
act to the voters at the ____ statewide general election.
SEC. 17. The provisions of this act are severable. If any
provision of this act or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application.
SEC. 18. Section 1 and Sections 3 to 15, inclusive, of this act
shall become operative only if the voters approve the
Kindergarten-University Public Education Facilities Bond Act of ____,
as set forth in Section 15 of this act.