AB 1088: Education facilities: bond act: Greene Act.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2015-05-06
(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 districts 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 districts 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.
(1)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 state the intent of the Legislature to enact legislation that would create the Kindergarten-University Public Education Facilities Bond Act of a year to be determined, a state general obligation bond act that would provide funds to construct and modernize education facilities, to become operative only if approved by the voters at a statewide general election to be determined, and to provide for the submission of the bond act to the voters at that election.
(2)
(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 and requires a school districts ongoing eligibility for new construction to be based, in part, on a calculation of existing school building capacity. 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.
(3)Existing law requires the State Allocation Board and the State Department of Education to conduct specified evaluations related to the construction of small high schools and requires those evaluations to be used to inform the direction of future school facilities construction and related bond measures.
This bill would repeal that provision.
(4)This bill also would delete obsolete provisions and would correct a cross-reference.
This bill would require the State Allocation 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 districts 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 to reestablish eligibility, 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 districts 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 bill would make conforming and nonsubstantive changes in related provisions of existing law.
(1)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 state the intent of the Legislature to enact legislation that would create the Kindergarten-University Public Education Facilities Bond Act of a year to be determined, a state general obligation bond act that would provide funds to construct and modernize education facilities, to become operative only if approved by the voters at a statewide general election to be determined, and to provide for the submission of the bond act to the voters at that election.
(2)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 and requires a school districts ongoing eligibility for new construction to be based, in part, on a calculation of existing school building capacity.
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.
(3)Existing law requires the State Allocation Board and the State Department of Education to conduct specified evaluations related to the construction of small high schools and requires those evaluations to be used to inform the direction of future school facilities construction and related bond measures.
This bill would repeal that provision.
(4)This bill also would delete obsolete provisions and would correct a cross-reference.
(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 districts 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 states 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 districts 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:70.KINDERGARTEN-UNIVERSITY PUBLIC EDUCATION FACILITIES BOND ACT OF ____1.General101100.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.
2.Kindergarten Through Grade 121.Kindergarten Through Grade 12 School Facilities Program Provisions101110.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 ($____) for the modernization of school facilities pursuant to Chapter 12.5 (commencing with Section 17070.10) of Part 10 of Division 1 of Title 1.
(b)School districts may use funds allocated pursuant to paragraph (3) of subdivision (a) only for one or more of the following purposes in accordance with Chapter 12.5 (commencing with Section 17070.10) of Part 10 of Division 1 of Title 1:
(1)The purchase and installation of air-conditioning equipment and insulation materials, and related costs.
(2)Construction projects or the purchase of furniture or equipment designed to increase school security or playground safety.
(3)The identification, assessment, or abatement in school facilities of hazardous asbestos.
(4)Project funding for high-priority roof replacement projects.
(5)Any other modernization of facilities pursuant to Chapter 12.5 (commencing with Section 17070.10) of Part 10 of Division 1 of Title 1.
(c)Funds allocated pursuant to paragraph (1) of subdivision (a) may also be utilized to provide new construction grants for eligible applicant county boards of education under Chapter 12.5 (commencing with Section 17070.10) of Part 10 of Division 1 of Title 1 for funding classrooms for severely handicapped pupils, or for funding classrooms for county community school pupils.
2.Kindergarten Through Grade 12 School Facilities Fiscal Provisions101120.(a)Of the total amount of bonds authorized to be issued and sold pursuant to Chapter 1 (commencing with Section 101000), bonds in the amount of ____ dollars ($____) 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.
3.California Community College Facilities1.General101132.(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.
2.California Community College Program Provisions101133.(a)From the proceeds of bonds issued and sold pursuant to Article 3 (commencing with Section 101134), the sum of ____ dollars ($____) shall be deposited in the ____ California Community College Capital Outlay Bond Fund for the purposes of this article. When appropriated, these funds shall be available for expenditure for the purposes of this article.
(b)The purposes of this article include assisting in meeting the capital outlay financing needs of the California Community Colleges.
(c)Proceeds from the sale of bonds issued and sold for the purposes of this article may be used to fund construction on existing campuses, including the construction of buildings and the acquisition of related fixtures, construction of facilities that may be used by more than one segment of public higher education (intersegmental), the renovation and reconstruction of facilities, site acquisition, the equipping of new, renovated, or reconstructed facilities, which equipment shall have an average useful life of 10 years; and to provide funds for the payment of preconstruction costs, including, but not limited to, preliminary plans and working drawings for facilities of the California Community Colleges.
3.California Community College Fiscal Provisions101134.(a)Of the total amount of bonds authorized to be issued and sold pursuant to Chapter 1 (commencing with Section 101100), bonds in the total amount of ____ dollars ($____), 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 XIIIB of the California Constitution, the disbursement of these proceeds is not subject to the limitations imposed by that article.
4.University Facilities1.General101140.(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 offcampus 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.
2.Program Provisions Applicable to the University of California and the Hastings College of the Law101141.(a)From the proceeds of bonds issued and sold pursuant to Article 4 (commencing with Section 101150), the sum of ____ dollars ($____) shall be deposited in the ____ University Capital Outlay Bond Fund for the purposes of this article. When appropriated, these funds shall be available for expenditure for the purposes of this article.
(b)The purposes of this article include assisting in meeting the capital outlay financing needs of the University of California and the Hastings College of the Law.
(c)Proceeds from the sale of bonds issued and sold for the purposes of this article may be used to fund construction on existing campuses, including the construction of buildings and the acquisition of related fixtures, construction of facilities that may be used by more than one segment of public higher education (intersegmental), the renovation and reconstruction of facilities, site acquisition, the equipping of new, renovated, or reconstructed facilities, which equipment shall have an average useful life of 10 years; and to provide funds for the payment of preconstruction costs, including, but not limited to, preliminary plans and working drawings for facilities of the University of California and the Hastings College of the Law.
3.Program Provisions Applicable to the California State University101142.(a)From the proceeds of bonds issued and sold pursuant to Article 4 (commencing with Section 101150), the sum of ____ dollars ($____) 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.
4.University Fiscal Provisions101150.(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 XIIIB 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.
It is the intent of the Legislature to enact legislation that would create the Kindergarten-University Public Education Facilities Bond Act of ____, to become operative only if approved by the voters at the ____ statewide general election, and to provide for the submission of the bond act to the voters at that election. It is also the intent of the Legislature that the bond act, if approved by the voters at that election, would provide for the issuance of ____ ($____) of state general obligation bonds to provide aid to school districts, county superintendents of schools, county boards of education, the California Community Colleges, the California State University, and the University of California, including the Hastings College of the Law, to construct and modernize education facilities.
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 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. 2.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. 3.SEC. 5.Section 17071.33 of the Education Code is repealed.SEC. 4.SEC. 6.Section 17071.35 of the Education Code is repealed.SEC. 5.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)This section is operative January 1, 2008.
(b)It is the intent of the Legislature to adjust the local match requirements for a new construction grant based on a school districts 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 only include the 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. A grant for new construction may also be used to acquire
(2)The costs of acquiring an existing government or privately owned building, or a privately financed school building, and for the necessary costs of converting the government or privately owned building for public school use. A grant for new construction may also be used for the
(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 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 baseline eligibility for each schoolsite 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 states 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 districts 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. 6.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:70.KINDERGARTEN-UNIVERSITY PUBLIC EDUCATION FACILITIES BOND ACT OF ____1.General101100.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.
2.Kindergarten Through Grade 121.Kindergarten Through Grade 12 School Facilities Program Provisions101110.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.
2.Kindergarten Through Grade 12 School Facilities Fiscal Provisions101120.(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.
3.California Community College Facilities1.General101132.(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.
2.California Community College Program Provisions101133.(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.
3.California Community College Fiscal Provisions101134.(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 XIIIB of the California Constitution, the disbursement of these proceeds is not subject to the limitations imposed by that article.
4.University Facilities1.General101140.(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 offcampus 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.
2.Program Provisions Applicable to the University of California and the Hastings College of Law101141.(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.
3.Program Provisions Applicable to the California State University101142.(a)From the proceeds of bonds issued and sold pursuant to Article 4 (commencing with Section 101150), the sum of ____ dollars ($____) shall be deposited in the ____ University Capital Outlay Bond Fund for the purposes of this article. When appropriated, these funds shall be available for expenditure for the purposes of this article.
(b)The purposes of this article include assisting in meeting the capital outlay financing needs of the California State University.
(c)Proceeds from the sale of bonds issued and sold for the purposes of this article may be used to fund construction on existing campuses, including the construction of buildings and the acquisition of related fixtures, construction of facilities that may be used by more than one segment of public higher education (intersegmental), the renovation and reconstruction of facilities, site acquisition, the equipping of new, renovated, or reconstructed facilities, which equipment shall have an average useful life of 10 years; and to provide funds for the payment of preconstruction costs, including, but not limited to, preliminary plans and working drawings for facilities of the California State University.
4.University Fiscal Provisions101150.(a)Of the total amount of bonds authorized to be issued and sold pursuant to Chapter 1 (commencing with Section 101100), bonds in the amount of ____ dollars ($____), 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 XIIIB 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.
It is the intent of the Legislature to enact legislation that would create the Kindergarten-University Public Education Facilities Bond Act of ____, to become operative only if approved by the voters at the ____ statewide general election, and to provide for the submission of the bond act to the voters at that election. It is also the intent of the Legislature that the bond act, if approved by the voters at that election, would provide for the issuance of ____ ($____) of state general obligation bonds to provide aid to school districts, county superintendents of schools, county boards of education, the California Community Colleges, the California State University, and the University of California, including the Hastings College of the Law, to construct and modernize education facilities.
SEC. 2.Section 17070.99 of the Education Code is repealed.17070.99.(a)The board shall conduct an evaluation on the cost of new construction and modernization of small high schools in conjunction with the pilot program established pursuant to subdivision (c) of Section 17072.10, as it read on January 1, 2005.
(b)The State Department of Education shall conduct an evaluation that focuses on pupil outcomes, including, but not limited to, academic achievement and college attendance rates, at the small high schools constructed pursuant to subdivision (c) of Section 17072.10, as it read on January 1, 2005, and on the reasons school districts do not currently opt to build small high schools.
(c)The evaluations required pursuant to subdivisions (a) and (b) shall be completed no later than two years after the opening of the last small high school constructed pursuant to subdivision (c) of Section 17072.10, as it read on January 1, 2005.
(d)The evaluations conducted pursuant to subdivisions (a) and (b) shall be used to inform the direction of future school facilities construction and related bond measures.
SEC. 3.Section 17071.33 of the Education Code is repealed.17071.33.(a)For the purposes of determining existing school building capacity, the calculation shall be adjusted as required for first priority status pursuant to Section 17017.7 as that calculation would have been made under the policies of the board in effect immediately preceding September 1, 1998.
(b)Notwithstanding subdivision (a), with respect to a high school district, the existing school building capacity shall be calculated without regard to multitrack year-round school considerations.
SEC. 4.Section 17071.35 of the Education Code is repealed.17071.35.Notwithstanding any other provisions of law, the maximum school building capacity for each applicant district shall be increased by the number of pupils reported by the Superintendent of Public Instruction for that grade level pursuant to Section 42268. This adjustment shall be calculated on the basis, at the districts option, of either the district as a whole or the appropriate attendance area.
SEC. 5.Section 17071.40 of the Education Code is repealed.17071.40.Each school on a year-round, multitrack calendar that has a density of 200 or more pupils enrolled per acre, that is located in a school district with 40 percent of its pupils attending multitrack, year-round schools shall be exempted from the increase in school building capacity required by Section 17071.35. Nothing in this section shall be construed as exempting the school from the requirements of Section 17071.33.
SEC. 6.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 17074.14 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.
|
Date
|
Status
|
|---|---|
| Feb 27, 2015 | Introduced. To print. |
| Mar 1, 2015 | From printer. May be heard in committee March 31. |
| Mar 2, 2015 | Read first time. |
| Mar 19, 2015 | Referred to Com. on ED. |
| Apr 22, 2015 | From committee chair, with author's amendments: Amend, and re-refer to Com. on ED. Read second time and amended. |
| Apr 23, 2015 | Re-referred to Com. on ED. |
| May 5, 2015 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (April 29). |
| May 6, 2015 | Read second time and amended. |
| May 7, 2015 | Re-referred to Com. on APPR. |
| Jan 31, 2016 | Died pursuant to Article IV, Sec. 10(c) of the Constitution. |
| Feb 1, 2016 | From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. |
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Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Apr 29, 2015 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Education |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Association Of California School Administrators | * Indeterminate | Apr 29, 2015 |
| Association Of California School Administrators | * Support | Apr 29, 2015 |
| California Association Of School Business Officials | * Indeterminate | Apr 29, 2015 |
| California Association Of School Business Officials | * Support | Apr 29, 2015 |
| California Association Of Suburban School Districts | * Indeterminate | Apr 29, 2015 |
| California Association Of Suburban School Districts | * Support | Apr 29, 2015 |
| California Community Colleges Board of Governors | ** Support | Apr 29, 2015 |
| California Community Colleges Chancellors Office, | * Indeterminate | Apr 29, 2015 |
| California School Boards Association | ** Support | Apr 29, 2015 |
| Community College Facility Coalition | ** Support | Apr 29, 2015 |
| Community College League of California | * Indeterminate | Apr 29, 2015 |
| County School Facilities Consortium | * Indeterminate | Apr 29, 2015 |
| County School Facilities Consortium | * Support | Apr 29, 2015 |
| Early Edge California | * Indeterminate | Apr 29, 2015 |
| Infill Builders Federation | * Indeterminate | Apr 29, 2015 |
| Kern Community College District | ** Support | Apr 29, 2015 |
| Los Angeles Community College District | ** Support | Apr 29, 2015 |
| Los Angeles Unified School District | ** Support | Apr 29, 2015 |
| Los Rios Community College District | ** Support | Apr 29, 2015 |
| Mt. San Jacinto Community College District | ** Support | Apr 29, 2015 |
| Pasadena Community College District | ** Support | Apr 29, 2015 |
| Peralta Community College District | ** Support | Apr 29, 2015 |
| Rio Hondo Community College District | ** Support | Apr 29, 2015 |
| San Bernardino Community College District | ** Support | Apr 29, 2015 |
| San Diego Community College District | ** Support | Apr 29, 2015 |
| San Francisco Community College District | ** Support | Apr 29, 2015 |
| Santa Clara County Office Of Education | * Indeterminate | Apr 29, 2015 |
| South Orange County Community College District | ** Support | Apr 29, 2015 |
| State Building & Construction Trades Council Of California | * Indeterminate | Apr 29, 2015 |
| University of California | ** Support | Apr 29, 2015 |
| West Kern Community College District | ** Support | Apr 29, 2015 |
| Yuba Community College District | ** Support | Apr 29, 2015 |
AB 1088
Page 10
Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON EDUCATION
Patrick O'Donnell, Chair
AB 1088
(O'Donnell) – As Amended April 22, 2015
SUBJECT: Education facilities: bond act: Greene Act
SUMMARY: Places the Kindergarten-University Public Education Facilities Bond Act on an unspecified statewide general election, to be operative only if approved by voters at the unspecified statewide general election. Makes changes to the School Facility Program (SFP). Specifically, this bill:
Establishes the ___ State School Facilities Fund and authorizes the State Allocation Board (SAB) to apportion funds to school districts from funds transferred to the ___ State School Facilities Fund from any source for the purposes specified in the SFP.
Authorizes an unspecified amount of general obligation (G.O.) school facilities bond to be placed on an unspecified statewide general election and specifies the funds to be allocated as follows:
An unspecified amount for kindergarten through grade 12 (K-12) allocated to the following programs:
New Construction;
Modernization; and,
Charter School Facilities Program.
An unspecified amount for higher education facilities allocated to the following:
California Community Colleges (CCC);
University of California (UC) and the Hastings College of Law; and,
California State University (CSU).
Establishes the ___ California Community College Capital Outlay Bond Fund and authorizes the deposit of funds from the proceeds of bonds issued and sold pursuant to this bill to be deposited into the fund for the purposes of construction; renovation and reconstruction of CCC facilities; site acquisition; the equipping of new, renovated or reconstructed facilities; and to provide funds for the payment of preconstruction costs, including, but not limited to, preliminary plans and working drawings for CCC facilities.
Establishes the ___ University Capital Outlay Bond Fund and authorizes the deposit of funds from the proceeds of bonds issued and sold pursuant to this bill to be deposited into the fund for the purposes of construction; renovation and reconstruction of facilities; site acquisition; the equipping of new, renovated or reconstructed facilities; and to provide funds for the payment of preconstruction costs, including, but not limited to, preliminary plans and working drawings for facilities of the UC, CSU, and Hastings College of Law.
Makes the following changes to the SFP:
Requires the SAB to convene a workgroup comprised of representatives of the Office of Public School Construction (OPSC), the Department of Finance (DOF), the Division of State Architect (DSA), the California Department of Education (CDE), other state agencies, and interested stakeholders to recommend changes to the SFP that will shorten and streamline the process for the construction and modernization of school facilities. Requires the SAB to submit a report with recommendations to the Legislature by September 1, 2016.
Strikes an obsolete provision requiring the SAB to conduct an evaluation on the costs of new construction and modernization of small high schools.
Authorizes the SAB to require the following:
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 reestablish eligibility pursuant to regulations adopted by the SAB; and,
Submit information describing existing facilities in the school district for the purpose of establishing a statewide inventory pursuant to regulations adopted by the SAB.
Repeals the provisions that do the following:
Requires, for the purpose of determining existing school building capacity, the calculation to be adjusted for first priority status as that calculation would have been made under the policies of the SAB in effected immediately preceding September 1, 1998.
Requires the maximum school building capacity for each applicant district be increased by the number of pupils reported by the Superintendent of Public Instruction (SPI) as excess capacity as a result of participation in the Year-Round School Grant Program. Repeals the requirement that the adjustment be calculated on the basis, at the district's option, of either the district as a whole or the appropriate attendance area.
Requires each school on a multitrack year-round calendar that has a density of 200 or more pupils enrolled per acre that is located in a school district with 40 percent of its pupils attending multitrack year-round schools be exempted from the increase in school building capacity required by Education Code (EC) Section 17071.35.
Expresses the intent of the Legislature to adjust the local match requirements for a new construction or modernization grant based on a school district's ability to raise local revenue, beginning with the proceeds from any bond approved by voters after January 1, 2016.
Authorizes, beginning with the proceeds from any bond approved by voters after January 1, 2016, a new construction grant to be used for career technical education (CTE) facilities, joint use facilities, and preschool facilities located at a schoolsite.
Requires the OPSC, in consultation with the CDE, to recommend to the SAB regulations that will provide school districts with flexibility in designing instructional facilities.
Authorizes the SAB to 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 baseline eligibility for each schoolsite pursuant to regulations adopted by the SAB.
Expresses 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, beginning with the proceeds from any bond approved by voters after January 1, 2016.
Authorizes, beginning with the proceeds from any bonds approved by voters after January 1, 2016, a modernization grant to be used for rehabilitating CTE facilities, seismic retrofits, and rehabilitating existing facility for use by a preschool located at an existing schoolsite.
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. Requires the OPSC to provide to the SAB recommendations on the value of allowing school districts to replace existing facilities on existing schoolsite.
EXISTING LAW:
Requires, under the Leroy F. Greene School Facilities Act of 1998, the SAB 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.
Provides that a school district's ongoing eligibility for new construction funding is determined by making calculations related to certain factors, including, but not limited to, enrollment projections by utilizing a cohort survival enrollment projection system, the number of students that may be adequately housed in the existing school building capacity of the district, and increases or decreases in enrollment resulting from receipt of funding from the Year-Round School Grant Program.
Provides that a school district is eligible to receive an apportionment for the modernization of a permanent school building that is more than 25 years old or a portable classroom that is at least 20 years old. A school district is eligible to receive an additional apportionment for modernization of a permanent school building every 25 years after the date of the previous apportionment or a portable classroom every 20 years after the previous apportionment.
FISCAL EFFECT: Unknown
COMMENTS: Background. The construction and rehabilitation of public kindergarten through grade 12 (K-12) facilities are funded by a combination of state and local G.O. bonds, developer's fees and local assessments such as Mello Roos community facilities districts. The New Construction program requires a 50% match from local educational agencies (LEAs), unless the LEA qualifies for financial hardship, which pays up to 100% of project costs. Modernization funds are awarded at 60% with a 40% match. Since the inception of the SFP in 1998, voters have approved $35.4 billion in state G.O. bonds for K-12 schools.
Ballot |
Measure |
Amount |
% Passage |
November 1998 |
Proposition 1A |
$9.2 billion ($6.7 billion K-12 + $2.5 billion Higher Ed) |
62.5 |
November 2002 |
Proposition 47 |
$13.05 billion ($11.4 billion K-12 + $1.65 billion Higher Ed) |
59.1 |
March 2004 |
Proposition 55 |
$12.3 billion ($10 billion K-12 + $2.3 billion Higher Ed) |
50.9 |
November 2006 |
Proposition 1D |
$10.416 billion ($7.329 K-12 + $3.087 billion Higher Ed) |
56.9 |
The last education bond on the statewide ballot was Proposition 1D, which was passed by voters on the November 2006 ballot. Proposition 1D provided $10.416 billion for K-12 and higher education facilities and established new K-12 grant programs, specified through the following allocations:
$7.329 billion for K-12 facilities as follows:
$1.9 billion for new construction projects (of which up to $199.5 million can be set aside for seismic repairs);
$3.3 billion for modernization projects;
$1 billion for overcrowding relief grants through the removal of portables;
$500 million for charter school facilities;
$500 million for career technical education (CTE) facilities and equipment;
$100 million for high performance (green) projects; and,
$29 million for joint-use projects.
$3.087 billion for higher education facilities as follows:
$1.507 billion for CCC;
$890 million for UC, of which $200 million was available for medical education programs; and,
$690 million for CSU.
K-12 remaining bond authority. Due to the state's budget crisis and poor credit ratings, the Pool Money Investment Board halted the regular sale of all G.O. bonds in December 2008 and slowed the disbursement of funds. The SAB, comprised of ten members that include appointments by the Governor, the Speaker of the Assembly and the Senate President pro Tem, is the body that allocates bond funds and oversees the administration of the SFP staffed by the OPSC, within the Department of General Services. The SAB has been making unfunded approvals since 2009 to enable districts to continue their facilities planning. The unfunded approvals are converted to apportionments when bonds are sold and cash becomes available.
According to the OPSC, as of April 15, 2015, approximately $195.4 million remains in bond authority from the 2002, 2004, and 2006 bonds, as follows:
Remaining Bond Authority – as of April 15, 2015 |
|
Program |
Amount in millions |
New Construction Modernization Seismic Mitigation Career Technical Education Charter High Performance Overcrowding Relief |
$17.8* $4.5* $141.2 $2.3 $27.1 $.5 $2 |
Total *Due to project rescissions |
$195.4
|
Source: Office of Public School Construction
The majority of remaining authority is derived from funds for seismic projects. Proposition 1D authorized up to 10.5% of New Construction funds to be used for seismic repair, reconstruction, or replacement. Seismic dollars have gone out slowly, partly due to fairly narrow eligibility criteria. New Construction and Modernization funds have been exhausted since 2012. The funds currently available are due to funds returned to the program.
What does this bill do? This bill will place a K-12 and higher education school facilities bond on an unspecified statewide ballot. The bill currently contains unspecified amounts for K-12 and higher education. According to the author, the amounts will be determined pending further examinations of need and discussions with the Administration and other parties. Contrary to the three prior bonds, this bill proposes to fund just the basic programs: New Construction, Modernization and Charter School Facilities Program (charter Schools do not receive funds from New Construction or Modernization).
Need. The amount of funding needed for K-12 school facilities is hard to calculate, as there is no statewide inventory or mechanism to collect projected need information from LEAs and charter schools. Eligibility for New Construction is done using the cohort survival projection method, which, generally, is based on projected need after accounting for existing capacity (or seats). LEAs established their baseline eligibility in 1999, and update the eligibility as needed, usually prior to submitting an application for funding. At the informational hearing this Committee held on February 11, 2015, the assistance Executive Officer of the State Allocation Board estimated a need of $3.54 billion for New Construction over the next eight years.
LEAs are eligible for Modernization funds based on the age of a building – 25 years for permanent buildings and 20 years for portable buildings – and enrollment at the schoolsites. Based on the number of schoolsites that have established eligibility, OPSC estimates a need of $4.4 billion for Modernization. However, OPSC cautions that this estimate is based only on 36% of schoolsites that have established eligibility. The $4.4 billion estimate may be low.
Another factor to take into consideration is the amount in funding requests submitted to the OPSC despite lack of funds for New Construction or Modernization. Since 1998, voters have authorized $17.6 billion for New Construction and $11.23 billion for Modernization projects. Bond authority for the New Construction program has been depleted since July, 2012 and Modernization since May, 2012. According to the OPSC, the annual average funding approved by the SAB annual is $1.237.5 billion for New Construction and $788 million for Modernization. Applications received since 2012 were initially placed on an Unfunded "Lack of Authority" list. Since November 1, 2012, the SAB established an "Applications Received Past Existing Authority" list. A total of $1.3 billion have been submitted between the "Lack of Authority" and the "Past Existing Authority" lists. There are likely many districts not submitting applications because no funding is available and it is unclear whether applications on either list will receive funding.
SFP changes. State bond funds are allocated pursuant to the SFP, also called the Leroy Greene School Facilities Act of 1998, and administered by the SAB. In 2012, the SAB formed a Program Review Subcommittee that spent more than a year meeting monthly to review various aspects of the SFP. In January, 2014, the Subcommittee, chaired by former Assemblymember Joan Buchanan (D-Alamo), submitted recommendations to the SAB, including the following regarding a new bond: "There is demand for new construction and modernization funding. The Subcommittee recognizes that the State has appropriately been a partner in building new schools and modernizing aging facilities. To date, the School Facility Program has successfully provided $33.93 billion for 11,106 projects and should be continued." The Subcommittee also made a number of recommendations relating to New Construction, Modernization, financial hardship, special programs, portable buildings, facility maintenance, statewide school facilities inventory, and county offices of education. This bill incorporates several of the recommendations made by the Subcommittee as well as additional provisions in response to the Governor's concerns, as follows:
New Construction. As mentioned previously, the baseline eligibility was established in 1999, after the enactment of the SFP in 1998. School districts update the baseline eligibility on an ongoing basis, or when they are applying for funding. The Subcommittee members acknowledged that the reported eligibility may be inaccurate. School districts that have not applied for funding have not updated their eligibility. School districts may have constructed facilities using local funds that affect their eligibility for state funding. New developments that may have been captured in the eligibility calculation may have changed due to the housing downturn. This bill:
Gives the SAB the authority to require school districts interested in seeking future bond funds (any bond passed after January 1, 2016) to reestablish eligibility.
Authorizes the SAB to require school districts to submit data on existing school buildings in the district in order to establish an inventory.
Authorizes New Construction funds to be used to incorporate CTE, joint use, and preschool facilities operating on a schoolsite.
Modernization. LEAs submit modernization eligibility for specific schoolsites prior to or when seeking bond funding. As mentioned previously, eligibility is based on the age of the building and enrollment at the site. The Subcommittee had similar concerns that modernization eligibility may not be updated. This bill:
Gives the SAB authority to require LEAs seeking modernization funds from any bonds passed by voters after January 1, 2016 to reestablish modernization eligibility. The bill does not include authorizing the SAB to require school districts to submit data for the purposes of the inventory. Staff recommends an amendment to apply the requirement on districts seeking modernization funds.
Authorizes Modernization funds to be used to rehabilitate facilities for CTE and seismic retrofits and to rehabilitate existing facilities for use by a preschool located at a schoolsite.
Directs OPSC to provide a recommendation to the SAB on the value of allowing school districts to replace existing facilities on existing schoolsites. This is to address school districts' concern that many of the existing facilities are very old, and it may make more fiscal sense to provide funding that will enable school district to demolish and replace an existing building.
Instructional facilities flexibility. Based on regulations adopted by the CDE, the SFP generally funds classrooms that are 960 square foot spaces. Teaching and learning have changed over time. Teachers do not stand in front of a classroom with a blackboard six hours a day anymore. Today, teachers may utilize more project based learning, with students working in small groups, which require larger common areas with movable furniture. The Subcommittee recommends aligning the SFP regulations with the CDE regulation to give LEAs more flexibility. This bill:
Directs the OPSC to make recommendations to the SAB that will provide school districts with flexibility in designing instructional facilities.
Governor's Budget. The Governor has indicated concerns regarding the use of bonds to fund school facilities and questions whether the State should have any role in student housing. The Governor has also highlighted problems he sees with the SFP, including the processes for plan approvals and funding. To address this concern, the bill includes a provision requiring the SAB to form a workgroup that includes state agencies, such as the DSA and CDE, the DOF, and stakeholders to develop recommendations on how the process for constructing and modernizing schools can be streamlined and shortened. The bill directs the workgroup to consider requirements that can be done through self-certification.
The 2015-16 budget suggests increasing local contribution while minimizing state participation. Specifically, the Governor proposes to provide limited state support for districts that may not be able to generate local bond dollars due to low assessed valuations. The proposal does not specify the threshold for eligibility, level of funding or source of funding (presumably General Fund). The bill expresses the intent of the Legislature to adjust the local match (currently 50% for New Construction and 40% for Modernization) based on a school district's ability to generate local funds.
The Governor also proposes to lift Proposition 39 rate caps to increase funds generated through local bonds (assuming voter approval), adjust developer fees, and authorize districts to use funds set aside for maintenance of facilities for construction and modernization.
Impact of school facilities on student learning. Studies have found a positive relationship between condition of school facilities and student achievement. According to the CDE, facility condition, design and utilization affect student and staff attendance, retention of teachers, student disruptions, time teachers and students spend on instruction/learning activities, curriculum offerings, teacher and student time in school (school calendar), participation by staff and students in extra-curricular activities, parent visits, and extent of local school program innovations. Students cannot focus on learning if they are too cold or too hot in a classroom. They cannot learn if poor air quality affects their health. Students also cannot focus on learning when classrooms are so overcrowded that they do not have their own desks. According to the CDE, a 2007 report indicates that half of school funding equity lawsuits nationally have included or focused on conditions of school facilities.
Arguments in support. The author states, "I appreciate the Governor's concerns regarding bonded indebtedness. However, from the overwhelming support for last year's bond bill authored by the former chair of this Committee, AB 2235, and the support expressed by Members at the Assembly Education Committee at the Committee's informational hearing in February, there is strong sentiment in the Legislature that bond funding is an appropriate tool for ensuring that our students have facilities that are safe and conducive to learning. With local matching funds and developer's fees, state bond funds have the added benefit of creating thousands of jobs and helping our economy."
When should the bond be placed on the ballot? While there is a need to replenish school facilities funding through a bond as soon as possible, there are other factors to take into consideration. The author may wish to consider placing the bond on the 2018 statewide general election.
Related legislation. AB 148 (Holden), also scheduled for the April 29th hearing, places the K–14 School Investment Bond Act of 2016 with unspecified dollar amounts on the November 8, 2016 statewide ballot. The bill is substantially similar to the introduced version of SB 114 (Liu), pending in the Senate Appropriations Committee.
AB 1433 (Gray), pending in the Assembly Higher Education Committee, places the Recommitment to Higher Education Bond Act of 2016 with unspecified amounts for higher education facilities on the November 8, 2016 statewide general election.
SB 114 (Liu), pending in the Senate Appropriations Committee, would place the Kindergarten Through Grade 12 Public Education Facilities Bond Act of 2016 with unspecified dollar amounts on the November 8, 2016 ballot.
Prior legislation. AB 2235 (Buchanan), would have authorized the Kindergarten-University Public Education Facilities Bond Act of 2014 to provide for the issuance of $4.3 billion in G.O. bonds for construction and modernization of school facilities, to become effective only if approved by voters at the November 4, 2014, statewide general election. The bill also made changes to the SFP. The bill was held on the Senate Floor by the author.
AB 41 (Buchanan), introduced in 2013, expresses the Legislature's intent to place a Kindergarten-University facilities bond on the 2014 ballot. The bill was held by the author in the Assembly Education Committee.
SB 45 (Corbett), introduced in 2013, expresses the Legislature's intent to place a Kindergarten-University facilities bond on the next statewide general election. The bill was held by the author in the Senate Rules Committee.
SB 301 (Liu), introduced in 2013, expresses the Legislature's intent to place a Kindergarten-University facilities bond on the 2014 ballot. The bill was held by the author in the Senate Rules Committee.
AB 331 (Brownley), introduced in 2011, expressed the Legislature's intent to place a Kindergarten-University facilities bond on the 2012 ballot. The bill was held in the Assembly Appropriations Committee in 2012.
AB 822 (Block), introduced in 2011, would have placed a higher education facilities bond on the November 2012 ballot. The bill was held in the Assembly Appropriations Committee in 2012.
AB 220 (Brownley), introduced in 2009, would have placed a $6.1 billion Kindergarten-University facilities bond on the November 2010 ballot. The bill was held in the Senate Appropriations Committee.
SB 271 (Ducheny), introduced in 2009, would have placed an $8.6 billion higher education facilities bond on the November 2010 ballot. The bill was held in the Senate Appropriations Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
Association of California School Administrators
California Association of Suburban School Districts
California Association of School Business Officials
California Community Colleges Board of Governors
California School Boards Association
Community College Facility Coalition
County School Facilities Consortium
Kern Community College District
Los Angeles Community College District
Los Angeles Unified School District
Los Rios Community College District
Mt. San Jacinto Community College District
Pasadena Community College District
Peralta Community College District
Rio Hondo Community College District
San Bernardino Community College District
San Diego Community College District
San Francisco Community College District
South Orange County Community College District
State Building and Construction Trades Council
University of California
West Kern Community College District
Yuba Community College District
Opposition
None on file
Analysis Prepared by: Sophia Kwong Kim / ED. / (916) 319-2087
Bill Author
Bill Co-Author(s):