SB 114: Education facilities: Kindergarten Through Grade 12 Public Education Facilities Bond Act of 2016.
- Session Year: 2015-2016
- House: Senate
- Latest Version Date: 2015-06-03
(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.
This bill would revise the definition of modernization under the act to include the replacement of facilities on a site containing a permanent structure that is at least 25 years old or, in the case of a portable classroom, that is at least 20 years old, as specified.
The bill would require a school district, as a condition for participation in the school facilities program, to certify that it has a long-range school facilities master plan that is consistent with the regional sustainable communities strategy, as specified.
The bill would delete a provision requiring the State Allocation 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 require each school district that elects to participate in a new construction or modernization 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 authorize a grant for new construction or modernization under the act to be used for seismic mitigation purposes and for related design, study, and testing costs, and require the State Allocation Board, in the development of guidelines and regulations, to provide a school district with maximum flexibility in the design, modernization, and new construction of school facilities.
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 revise the provisions for the funding of joint-use facilities to allow an additional exemption from a general requirement that a joint-use partner contribute to at least 25% of eligible project costs, as specified. This additional exemption would apply if the joint-use agreement specifies that the joint-use partner will provide 100% of the operational costs of the joint-use project for a term of no less than 10 years.
The bill would require the State Department of Education, the Division of the State Architect, the Office of Public School Construction, and the Department of Toxic Substances Control to convene for purposes of developing an interagency plan to streamline the school facilities construction application, review, and audit processes in order to reduce the time and improve the efficiency of the school facilities construction process, as specified. The bill would require that this interagency plan be submitted to the Legislature on or before July 1, 2016.
(2)Existing law, 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 Through Grade 12 Public Education Facilities Bond Act of 2016 to authorize an unspecified amount of state general obligation bonds, as scheduled, to provide aid to school districts, county superintendents of schools, county boards of education, and charter schools to construct and modernize education facilities. The proceeds of these bonds would be deposited in the 2016 State School Facilities Fund, which the bill would establish as specified.
The proposed bond act would become operative only if approved by the voters at the November 8, 2016, 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 Through Grade 12 Public Education Facilities Bond Act of 2016 is approved by the voters at the November 8, 2016, statewide general election.
(4)This bill would make conforming and nonsubstantive changes in related provisions of existing law.
(5)This bill would declare that it is to take effect immediately as an urgency statute.
(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.
This bill would revise the definition of modernization under the act to include the replacement of facilities on a site containing a permanent structure that is at least 25 years old or, in the case of a portable classroom, that is at least 20 years old, as specified.
The bill would require a school district, as a condition for participation in the school facilities program, to certify that it has a long-range school facilities master plan that is consistent with the regional sustainable communities strategy, as specified.
The bill would delete a provision requiring the State Allocation 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 require each school district that elects to participate in a new construction or modernization 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 authorize a grant for new construction or modernization under the act to be used for seismic mitigation purposes and for related design, study, and testing costs, and require the State Allocation Board, in the development of guidelines and regulations, to provide a school district with maximum flexibility in the design, modernization, and new construction of school facilities.
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 revise the provisions for the funding of joint-use facilities to allow an additional exemption from a general requirement that a joint-use partner contribute to at least 25% of eligible project costs, as specified. This additional exemption would apply if the joint-use agreement specifies that the joint-use partner will provide 100% of the operational costs of the joint-use project for a term of no less than 10 years.
The bill would require the State Department of Education, the Division of the State Architect, the Office of Public School Construction, and the Department of Toxic Substances Control to convene for purposes of developing an interagency plan to streamline the school facilities construction application, review, and audit processes in order to reduce the time and improve the efficiency of the school facilities construction process, as specified. The bill would require that this interagency plan be submitted to the Legislature on or before July 1, 2016.
(2)Existing law, 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 Through Grade 12 Public Education Facilities Bond Act of 2016 to authorize an unspecified amount of state general obligation bonds, as scheduled, to provide aid to school districts, county superintendents of schools, county boards of education, and charter schools to construct and modernize education facilities. The proceeds of these bonds would be deposited in the 2016 State School Facilities Fund, which the bill would establish as specified.
The proposed bond act would become operative only if approved by the voters at the November 8, 2016, 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 Through Grade 12 Public Education Facilities Bond Act of 2016 is approved by the voters at the November 8, 2016, statewide general election.
(4)This bill would make conforming and nonsubstantive changes in related provisions of existing law.
(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.
This bill would revise the definition of modernization under the act to include the replacement of facilities on a site containing a permanent structure that is at least 25 years old or, in the case of a portable classroom, that is at least 20 years old, as specified.
The bill would reduce the minimum amount that an applicant school district under the act must set aside for ongoing and major maintenance of school buildings from 3% to 2% of the total general fund expenditures of that district in a fiscal year.
The bill would require a school district, as a condition for participation in the school facilities program, to certify that it has a long-range school facilities master plan that is consistent with the regional sustainable communities strategy, as specified.
The bill would delete a provision requiring the State Allocation 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 require each school district that elects to participate in a new construction or modernization 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 authorize a grant for new construction or modernization under the act to be used for seismic mitigation purposes and for related design, study, and testing costs, and require the State Allocation Board, in the development of guidelines and regulations, to provide a school district with maximum flexibility in the design, modernization, and new construction of school facilities.
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 revise the provisions for the funding of joint-use facilities to allow an additional exemption from a general requirement that a joint-use partner contribute to at least 25% of eligible project costs, as specified. This additional exemption would apply if the joint-use agreement specifies that the joint-use partner will provide 100% of the operational costs of the joint-use project for a term of no less than 10 years.
The bill would require the State Department of Education, the Division of the State Architect, the Office of Public School Construction, and the Department of Toxic Substances Control to convene for purposes of developing an interagency plan to streamline the school facilities construction application, review, and audit processes in order to reduce the time and improve the efficiency of the school facilities construction process, as specified. The bill would require that this interagency plan be submitted to the Legislature on or before July 1, 2017. 2016.
(2)Existing law, 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 Kindergarten Through Grade 12 Public Education Facilities Bond Act of 2016 to authorize an unspecified amount of state general obligation bonds, as scheduled, to provide aid to school districts, county superintendents of schools, county boards of education, and charter schools, the California Community Colleges, the University of California, the Hastings College of the Law, and the California State University schools to construct and modernize education facilities. The proceeds of these bonds would be deposited in the 2016 State School Facilities Fund, the 2016 California Community College Capital Outlay Bond Fund, and the 2016 University Capital Outlay Bond Fund, which the bill would establish as specified.
The proposed bond act would become operative only if approved by the voters at the November 8, 2016, 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 Kindergarten Through Grade 12 Public Education Facilities Bond Act of 2016 is approved by the voters at the November 8, 2016, statewide general election.
(4)This bill would make conforming and nonsubstantive changes in related provisions of existing law.
(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.
This bill would revise the definition of modernization under the act to include the replacement of facilities on a site containing a permanent structure that is at least 25 years old or, in the case of a portable classroom, that is at least 20 years old, as specified.
The bill would reduce the minimum amount that an applicant school district under the act must set aside for ongoing and major maintenance of school buildings from 3% to 2% of the total general fund expenditures of that district in a fiscal year.
The bill would delete a provision requiring the State Allocation 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 require each school district that elects to participate in a new construction or modernization 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 authorize a grant for new construction or modernization under the act to be used for seismic mitigation purposes and for related design, study, and testing costs, and require the State Allocation Board, in the development of guidelines and regulations, to provide a school district with maximum flexibility in the design, modernization, and new construction of school facilities.
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 require the State Department of Education, the Division of the State Architect, the Office of Public School Construction, and the Department of Toxic Substances Control to convene for purposes of developing an interagency plan to streamline the school facilities construction application, review, and audit processes in order to reduce the time and improve the efficiency of the school facilities construction process. The bill would require that this interagency plan be submitted to the Legislature on or before July 1, 2017.
(2)Existing law, 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 2016 to authorize an unspecified amount of state general obligation bonds, as scheduled, 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 2016 State School Facilities Fund, the 2016 California Community College Capital Outlay Bond Fund, and the 2016 University Capital Outlay Bond Fund, which the bill would establish as specified.
The proposed bond act would become operative only if approved by the voters at the November 8, 2016, 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 2016 is approved by the voters at the November 8, 2016, statewide general election.
(4)This bill would make conforming and nonsubstantive changes in related provisions of existing law.
The following terms, wherever used or referred to in this chapter, shall have the following meanings, respectively, unless a different meaning appears from the context:
(a)Apportionment means a reservation of funds for the purpose of eligible new construction, modernization, or hardship approved by the board for an applicant school district.
(b)Attendance area means the geographical area serving an existing high school and those junior high schools and elementary schools included therein.
(c)Board means the State Allocation Board as established by Section 15490 of the Government Code.
(d)Committee means the State School Building Finance Committee established pursuant to Section 15909.
(e)County fund means a county school facilities fund established pursuant to Section 17070.43.
(f)Department means the Department of General Services.
(g)Fund means the applicable 1998 State School Facilities Fund, the 2002 State School Facilities Fund, the 2004 State School Facilities Fund, the 2006 State School Facilities Fund, or the 2016 State School Facilities Fund, established pursuant to Section 17070.40.
(h)Good repair has the same meaning as specified in subdivision (d) of Section 17002.
(i)Modernization means any modification or replacement of a permanent structure that is at least 25 years old, or, in the case of a portable classroom, that is at least 20 years old, that will enhance the ability of the structure to achieve educational purposes.
(j)Portable classroom means a classroom building of one or more stories that is designed and constructed to be relocatable and transportable over public streets, and with respect to a single story portable classroom, is designed and constructed for relocation without the separation of the roof or floor from the building and when measured at the most exterior walls, has a floor area not in excess of 2,000 square feet.
(k)Property includes all property, real, personal or mixed, tangible or intangible, or any interest therein necessary or desirable for carrying out the purposes of this chapter.
(l)School building capacity means the capacity of a school building to house pupils.
(m)School district means a school district or a county office of education. For purposes of determining eligibility under this chapter, school district may also mean a high school attendance area.
SEC. 2.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 2016 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 2016 State School Facilities Fund from any source.
(3)The board may make apportionments in amounts not exceeding those funds on deposit in the 2016 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 2016 State School Facilities Fund, irrespective of whether there exists at the time of the disbursement an amount in the 2016 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. 3.Section 17070.75 of the Education Code is amended to read:17070.75.(a)As a condition for participation in the school facilities program, the board shall require the school district to make all necessary repairs, renewals, and replacements to ensure that a project is at all times maintained in good repair, working order, and condition. All costs incurred for this purpose shall be borne by the school district.
(b)In order to ensure compliance with subdivision (a) and to encourage school districts to maintain all buildings under their control, the board shall require an applicant school district to do all of the following prior to the approval of a project:
(1)Establish a restricted account within the general fund of the school district for the exclusive purpose of providing moneys for ongoing and major maintenance of school buildings, according the highest priority to funding for the purposes set forth in subdivision (a).
(2)(A)Agree to deposit into the account established pursuant to paragraph (1), in each fiscal year for 20 years after receipt of funds under this chapter, a minimum amount equal to or greater than 3 percent of the total general fund expenditures of the applicant school district, including other financing uses, for that fiscal year. Annual deposits to the account established pursuant to paragraph (1) in excess of 21/2 percent of the school district general fund budget may count towards the amount of funds required to be contributed by a school district in order to receive apportionments from the State School Deferred Maintenance Fund pursuant to Section 17584 to the extent that those funds are used for purposes that qualify for funding under that section.
(B)Notwithstanding subparagraph (A), for the 200405 fiscal year only, an applicant school district shall deposit into the account established pursuant to paragraph (1), no less than 2 percent of the total general fund expenditures of the school district, including other financing uses, for the fiscal year. The annual deposit to the account in excess of 11/2 percent of the school district general fund budget for the 200405 fiscal year may count towards the amount that a school district is required to contribute in order to receive apportionments from the State School Deferred Maintenance Fund pursuant to Section 17584 to the extent that those funds are used for purposes that qualify for funding under that section.
(C)A school district contribution to the account may be provided in lieu of meeting the ongoing maintenance requirements pursuant to Section 17014 to the extent the funds are used for purposes established in that section. A school district that serves as the administrative unit for a special education local plan area may elect to exclude from its total general fund expenditures, for purposes of this paragraph, the distribution of revenues that are passed through to participating members of the special education local plan area.
(D)This paragraph applies only to the following school districts:
(i)High school districts with an average daily attendance greater than 300 pupils.
(ii)Elementary school districts with an average daily attendance greater than 900 pupils.
(iii)Unified school districts with an average daily attendance greater than 1,200 pupils.
(3)Certify that it has publicly approved an ongoing and major maintenance plan that outlines the use of the funds deposited, or to be deposited, pursuant to paragraph (2). The plan may provide that the school district need not expend all of its annual allocation for ongoing and major maintenance in the year in which it is deposited if the cost of major maintenance requires that the allocation be carried over into another fiscal year. However, any state funds carried over into a subsequent year may not be counted toward the annual minimum contribution by the school district. A plan developed in compliance with this section shall be deemed to meet the requirements of Section 17585.
(c)A school district to which paragraph (2) of subdivision (b) does not apply shall certify to the board that it can reasonably maintain its facilities with a lesser level of maintenance.
(d)For purposes of calculating a county office of education requirement pursuant to this section, the 3 percent maintenance requirement shall be based upon the county office of education general fund less any restricted accounts.
(e)As a condition of participation in the school facilities program or the receipt of funds pursuant to Section 17582, for a fiscal year after the 200405 fiscal year, a school district shall establish a facilities inspection system to ensure that each of its schools is maintained in good repair.
(f)For purposes of this section, good repair has the same meaning as specified in subdivision (d) of Section 17002.
SEC. 4.Section 17070.78 is added to the Education Code, to read:17070.78.As a condition for participation in the school facilities program, a school district shall certify that it has a long-range school facilities master plan and that the master plan is consistent with the regional sustainable communities strategy established pursuant to Section 65080 of the Government Code.
SEC. 5.Section 17070.99 of the Education Code is repealed.SEC. 6.Section 17071.15 is added to the Education Code, to read:17071.15.Notwithstanding Section 17071.10, the board shall require a school district that elects to participate in the new construction program to conduct an inventory of existing facilities and submit this information to the board, as prescribed by the board, for purposes of maintaining a statewide school facilities inventory.
SEC. 7.Section 17071.33 of the Education Code is repealed.SEC. 8.Section 17071.35 of the Education Code is repealed.SEC. 9.Section 17071.40 of the Education Code is repealed.SEC. 10.Section 17072.35 of the Education Code is amended to read:17072.35.(a)(1)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 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 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 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. A grant for new construction may be used for seismic mitigation purposes and for related design, study, and testing costs.
(2)An applicant who receives a new construction grant shall ensure that the project incorporates 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)In the development of guidelines and regulations, the board shall provide a school district with maximum flexibility in the design and new construction of school facilities.
SEC. 11.Section 17072.40 is added to the Education Code, to read:17072.40.The Office of Public School Construction, in consultation with the State Department of Education, shall recommend to the board regulations that will provide school districts with flexibility in designing instructional facilities. These recommendations shall propose revisions to any regulations that limit the ability of school districts to use new construction grants to construct instructional space approved by the State Department of Education. The proposed revisions shall ensure that a school district has the ability to design a facility that provides a flexible learning environment, provides for the integration and use of technology, and serves as an instructional space and learning environment that supports and enhances the educational delivery process.
SEC. 12.Section 17073.16 is added to the Education Code, to read:17073.16.The board shall require a school district that elects to participate in the modernization program to conduct an inventory of existing facilities and submit this information to the board, as prescribed by the board, for purposes of maintaining a statewide school facilities inventory.
SEC. 13.Section 17074.25 of the Education Code is amended to read:17074.25.(a)(1)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.
(2)A modernization apportionment may also be used for either of the following:
(A)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.
(B) Seismic mitigation purposes and related design, study, and testing costs.
(3)An applicant that receives a modernization apportionment shall ensure that the project incorporates 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)In the development of guidelines and regulations, the board shall provide a school district with maximum flexibility in the design and modernization of school facilities.
(c)(1)A modernization apportionment may also be used to demolish and construct a building or buildings on an existing schoolsite if the total cost of providing a new school building, including land, on a new site would not protect the economic interest of the state and school district.
(2)A project deemed to meet the requirements of paragraph (1) shall be eligible for a grant equal to the grant provided under Section 17072.10.
(d)The board shall establish additional requirements it deems necessary to ensure that the economic interests of the state and the educational interests of the children of the state are protected.
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.Section 17077.42 of the Education Code is amended to read:17077.42.In order to be approved for a grant under this article, the applicant school district shall demonstrate that it has complied with all of the following:
(a)The school district has entered into a joint-use agreement with a governmental agency, public community college, public college or public university, or a nonprofit organization approved by the board.
(b)The joint-use agreement specifies the method of sharing capital and operating costs, specifies relative responsibilities for the operation and staffing of the facility, and specifies the manner in which the safety of the pupils will be ensured.
(c)The joint-use agreement specifies the amount of the contribution to be made by the school district and the joint-use partner toward the 50-percent local share of eligible project costs. The contribution made by a joint-use partner shall be no less than 25 percent of eligible project costs, unless either of the following conditions applies:
(1)The school district has passed a local bond that specifies that proceeds of sale of the bonds are to be used for the joint-use project, in which case the school district may opt to provide up to the full 50-percent local share of eligible costs.
(2)The joint-use agreement specifies that the joint-use partner will provide 100 percent of the operational costs for the joint-use project for a term of no less than 10 years.
(d)The school district demonstrates that the facility will be used to the maximum extent possible for both school and community purposes, or both school and higher education purposes, as applicable.
(e)(1)The project application qualifies for funding under paragraph (1) of subdivision (b) of Section 17077.40 and the school district has received all approvals necessary for apportionment under this chapter.
(2)The project qualifies for funding under paragraph (2) or (3) of subdivision (b) of Section 17077.40 and the school district has completed preliminary plans for the project and has received State Department of Education approval of the plans.
SEC. 16.Section 17254 is added to the Education Code, to read:17254.(a)The State Department of Education, the Division of the State Architect, the Office of Public School Construction, and the Department of Toxic Substances Control shall convene for purposes of developing an interagency plan to streamline the school facility construction application, review, and audit processes in order to reduce the time and improve the efficiency of the school facilities construction process.
(b)As part of the interagency plan developed pursuant to subdivision (a), the Superintendent shall identify an entity within the State Department of Education to act as a full-service agency and to assist school districts in navigating the school facilities process. The interagency plan shall be submitted to the Legislature, in accordance with Section 9795 of the Government Code, on or before July 1, 2016.
(c)It is the intent of the Legislature that operative regulatory language adopted by the State Allocation Board before the effective date of this section be reviewed and revised before July 1, 2016, to ensure that the School Facility Program is being implemented in a manner that reduces duplicative processes for the review, approval, and audit of school facility new construction and modernization projects.
(d)This section shall remain in effect only until July 1, 2021, and as of that date is repealed, unless a later enacted statute, that is enacted before July 1, 2021, deletes or extends that date.
SEC. 17.Section 17592.70 of the Education Code is amended to read:17592.70.(a)There is hereby established the School Facilities Needs Assessment Grant Program with the purpose to provide for a one-time comprehensive assessment of school facility needs. The grant program shall be administered by the State Allocation Board.
(b)(1)The grants shall be awarded to school districts on behalf of schoolsites ranked in deciles 1 to 3, inclusive, on the Academic Performance Index (API), pursuant to Section 52056, based on the 2003 base API score for each school newly constructed prior to January 1, 2000.
(2)For purposes of this section, schools ranked in deciles 1 to 3, inclusive, on the 2003 base API shall include any schools determined by the department to meet either of the following:
(A)The school meets all of the following criteria:
(i)Does not have a valid base API score for 2003.
(ii)Is operating in the 200405 fiscal year and was operating in the 200304 fiscal year during the Standardized Testing and Reporting (STAR) Program testing period.
(iii)Has a valid base API score for 2002 that was ranked in deciles 1 to 3, inclusive, in that year.
(B)The school has an estimated base API score for 2003 that would be in deciles 1 to 3, inclusive.
(3)The department shall estimate an API score for any school meeting the criteria of clauses (i) and (ii) of subparagraph (A) of paragraph (2) and not meeting the criteria of clause (iii) of subparagraph (A) of paragraph (2), using available testing scores and any weighting or corrective factors it deems appropriate. The department shall provide those API scores to the Office of Public School Construction and post them on its Internet Web site within 30 days of the enactment of this section.
(4)For purposes of this section, schools ranked in deciles 1 to 3, inclusive, on the 2003 base API shall exclude any schools determined by the department to be operated by county offices of education pursuant to Section 56140.
(c)The board shall allocate funds pursuant to subdivision (b) to school districts with jurisdiction over eligible schoolsites, based on ten dollars ($10) per pupil enrolled in the eligible school as of October 2003, with a minimum allocation of seven thousand five hundred dollars ($7,500) for each schoolsite.
(d)As a condition of receiving funds pursuant to this section, school districts shall do all of the following:
(1)Use the funds to develop a comprehensive needs assessment of all schoolsites eligible for grants pursuant to subdivision (b). The assessment shall contain, at a minimum, all of the following information for each schoolsite:
(A)The year each building that is currently used for instructional purposes was constructed.
(B)The year, if any, each building that is currently used for instructional purposes was last modernized.
(C)The pupil capacity of the school.
(D)The number of pupils enrolled in the school.
(E)The density of the school campus measured in pupils per acre.
(F)The total number of classrooms at the school.
(G)The age and number of portable classrooms at the school.
(H)Whether the school is operating on a multitrack, year-round calendar, and, if so, what type.
(I)Whether the school has a cafeteria, or an auditorium or other space used for pupil eating and not for class instruction.
(J)The useful life remaining of all major building systems for each structure housing instructional space, including, but not limited to, sewer, water, gas, electrical, roofing, and fire and life safety protection.
(K)The estimated costs for five years necessary to maintain functionality of each instructional space to maintain health, safety, and a suitable learning environment, as applicable, including classroom, counseling areas, administrative space, libraries, gymnasiums, multipurpose and dining space, and the accessibility to those spaces.
(L)A list of necessary repairs.
(2)Use the data currently filed with the state as part of the process of applying for and obtaining modernization or construction funds for school facilities, or information that is available in the California Basic Education Data System for the element required in subparagraphs (D), (E), (F), and (G) of paragraph (1).
(3)Use the assessment as the baseline for the facilities inspection system required pursuant to subdivision (d) of Section 17070.75.
(4)Provide the results of the assessment to the Office of Public School Construction, including a report on the expenditures made in performing the assessment. It is the intent of the Legislature that the assessments be completed as soon as possible, but not later than January 1, 2006.
(5)If a school district does not need the full amount of the allocation it receives pursuant to this section, the school district shall expend the remaining funds for making facilities repairs identified in its needs assessment. The school district shall report to the Office of Public School Construction on the repairs completed pursuant to this paragraph and the cost of the repairs.
(6)Submit to the Office of Public School Construction an interim report regarding the progress made by the school district in completing the assessments of all eligible schools.
SEC. 18.Part 70 (commencing with Section 101100) is added to Division 14 of Title 3 of the Education Code, to read:70.KINDERGARTEN THROUGH GRADE 12 PUBLIC EDUCATION FACILITIES BOND ACT OF 20161.General101100.This part shall be known, and may be cited, as the Kindergarten Through Grade 12 Public Education Facilities Bond Act of 2016.
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 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 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 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 2016 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 2016 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 2016 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 ($____) for new construction of school facilities of applicant school districts under Chapter 12.5 (commencing with Section 17070.10) of Part 10 of Division 1 of Title 1.
(2)The amount of ____ dollars ($____) 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.
(3)Of the amount allocated in this subdivision, up to 5 percent shall be available for providing 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.
(b)School districts may use funds allocated pursuant to paragraph (2) 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.
101113.The board shall assign priority for funding under this chapter to applicant school districts that demonstrate participation in a community-based effort to coordinate educational, developmental, family, health, and other comprehensive services by engaging in public and private partnerships with local public entities and other nonprofit or private community partners. Criteria that demonstrate this participation shall include all of the following:
(a)Institutionalized structures for cross-agency collaboration, including, but not limited to, memoranda of understanding to coordinate activities and services.
(b)Agreements for joint use and operations of school facilities, in accordance with the requirements of subdivision (c) of Section 17077.42, that provide for extended hours of use for pupils, families, and the community, integration of libraries, early childhood education, child care centers, senior centers, outdoor recreation or environmental education, arts education, and career technical education and adult education offerings for pupils and community members.
(c)Participation in the State Community Schools Network.
(d)Participation in technical assistance and training, including professional development, for full-service community schools.
(e)Certification that the districts school facilities master plan is consistent with the regional sustainable communities strategy established pursuant to Section 65080 of the Government Code.
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 101100), 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 on the committee 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 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 advisor 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 2016 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 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 2016 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 2016 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.
SEC. 19.The Secretary of State shall submit Section 18 of this act to the voters at the November 8, 2016, statewide general election.
SEC. 20.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. 21.Sections 1 to 15, inclusive, and Sections 17 and 18 of this act shall become operative only if the voters approve the Kindergarten Through Grade 12 Public Education Facilities Bond Act of 2016, as set forth in Section 18 of this act.
SEC. 22.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to ensure, at the earliest possible time, that the electorate is provided with the opportunity to learn about and discuss a vote on the financing of necessary educational facilities at the November 8, 2016, statewide general election, including related statutory changes, it is necessary that this act take effect immediately.
The following terms, wherever used or referred to in this chapter, shall have the following meanings, respectively, unless a different meaning appears from the context:
(a)Apportionment means a reservation of funds for the purpose of eligible new construction, modernization, or hardship approved by the board for an applicant school district.
(b)Attendance area means the geographical area serving an existing high school and those junior high schools and elementary schools included therein.
(c)Board means the State Allocation Board as established by Section 15490 of the Government Code.
(d)Committee means the State School Building Finance Committee established pursuant to Section 15909.
(e)County fund means a county school facilities fund established pursuant to Section 17070.43.
(f)Department means the Department of General Services.
(g)Fund means the applicable 1998 State School Facilities Fund, the 2002 State School Facilities Fund, the 2004 State School Facilities Fund, the 2006 State School Facilities Fund, or the 2016 State School Facilities Fund, established pursuant to Section 17070.40.
(h)Good repair has the same meaning as specified in subdivision (d) of Section 17002.
(i)Modernization means any modification or replacement of a permanent structure that is at least 25 years old, or, in the case of a portable classroom, that is at least 20 years old, that will enhance the ability of the structure to achieve educational purposes.
(j)Portable classroom means a classroom building of one or more stories that is designed and constructed to be relocatable and transportable over public streets, and with respect to a single story portable classroom, is designed and constructed for relocation without the separation of the roof or floor from the building and when measured at the most exterior walls, has a floor area not in excess of 2,000 square feet.
(k)Property includes all property, real, personal or mixed, tangible or intangible, or any interest therein necessary or desirable for carrying out the purposes of this chapter.
(l)School building capacity means the capacity of a school building to house pupils.
(m)School district means a school district or a county office of education. For purposes of determining eligibility under this chapter, school district may also mean a high school attendance area.
SEC. 2.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 2016 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 2016 State School Facilities Fund from any source.
(3)The board may make apportionments in amounts not exceeding those funds on deposit in the 2016 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 2016 State School Facilities Fund, irrespective of whether there exists at the time of the disbursement an amount in the 2016 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. 3.Section 17070.75 of the Education Code is amended to read:17070.75.(a)As a condition for participation in the school facilities program, the board shall require the school district to make all necessary repairs, renewals, and replacements to ensure that a project is at all times maintained in good repair, working order, and condition. All costs incurred for this purpose shall be borne by the school district.
(b)In order to ensure compliance with subdivision (a) and to encourage school districts to maintain all buildings under their control, the board shall require an applicant school district to do all of the following prior to the approval of a project:
(1)Establish a restricted account within the general fund of the school district for the exclusive purpose of providing moneys for ongoing and major maintenance of school buildings, according the highest priority to funding for the purposes set forth in subdivision (a).
(2)(A)Agree to deposit into the account established pursuant to paragraph (1), in each fiscal year for 20 years after receipt of funds under this chapter, a minimum amount equal to or greater than 3 percent of the total general fund expenditures of the applicant school district, including other financing uses, for that fiscal year. Annual deposits to the account established pursuant to paragraph (1) in excess of 21/2 percent of the school district general fund budget may count towards the amount of funds required to be contributed by a school district in order to receive apportionments from the State School Deferred Maintenance Fund pursuant to Section 17584 to the extent that those funds are used for purposes that qualify for funding under that section.
(B)Notwithstanding subparagraph (A), for the 200405 fiscal year only, an applicant school district shall deposit into the account established pursuant to paragraph (1), no less than 2 percent of the total general fund expenditures of the school district, including other financing uses, for the fiscal year. The annual deposit to the account in excess of 11/2 percent of the school district general fund budget for the 200405 fiscal year may count towards the amount that a school district is required to contribute in order to receive apportionments from the State School Deferred Maintenance Fund pursuant to Section 17584 to the extent that those funds are used for purposes that qualify for funding under that section.
(C)A school district contribution to the account may be provided in lieu of meeting the ongoing maintenance requirements pursuant to Section 17014 to the extent the funds are used for purposes established in that section. A school district that serves as the administrative unit for a special education local plan area may elect to exclude from its total general fund expenditures, for purposes of this paragraph, the distribution of revenues that are passed through to participating members of the special education local plan area.
(D)This paragraph applies only to the following school districts:
(i)High school districts with an average daily attendance greater than 300 pupils.
(ii)Elementary school districts with an average daily attendance greater than 900 pupils.
(iii)Unified school districts with an average daily attendance greater than 1,200 pupils.
(3)Certify that it has publicly approved an ongoing and major maintenance plan that outlines the use of the funds deposited, or to be deposited, pursuant to paragraph (2). The plan may provide that the school district need not expend all of its annual allocation for ongoing and major maintenance in the year in which it is deposited if the cost of major maintenance requires that the allocation be carried over into another fiscal year. However, any state funds carried over into a subsequent year may not be counted toward the annual minimum contribution by the school district. A plan developed in compliance with this section shall be deemed to meet the requirements of Section 17585.
(c)A school district to which paragraph (2) of subdivision (b) does not apply shall certify to the board that it can reasonably maintain its facilities with a lesser level of maintenance.
(d)For purposes of calculating a county office of education requirement pursuant to this section, the 3 percent maintenance requirement shall be based upon the county office of education general fund less any restricted accounts.
(e)As a condition of participation in the school facilities program or the receipt of funds pursuant to Section 17582, for a fiscal year after the 200405 fiscal year, a school district shall establish a facilities inspection system to ensure that each of its schools is maintained in good repair.
(f)For purposes of this section, good repair has the same meaning as specified in subdivision (d) of Section 17002.
SEC. 4.Section 17070.78 is added to the Education Code, to read:17070.78.As a condition for participation in the school facilities program, a school district shall certify that it has a long-range school facilities master plan and that the master plan is consistent with the regional sustainable communities strategy established pursuant to Section 65080 of the Government Code.
SEC. 5.Section 17070.99 of the Education Code is repealed.SEC. 6.Section 17071.15 is added to the Education Code, to read:17071.15.Notwithstanding Section 17071.10, the board shall require a school district that elects to participate in the new construction program to conduct an inventory of existing facilities and submit this information to the board, as prescribed by the board, for purposes of maintaining a statewide school facilities inventory.
SEC. 7.Section 17071.33 of the Education Code is repealed.SEC. 8.Section 17071.35 of the Education Code is repealed.SEC. 9.Section 17071.40 of the Education Code is repealed.SEC. 10.Section 17072.35 of the Education Code is amended to read:17072.35.(a)(1)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 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 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 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. A grant for new construction may be used for seismic mitigation purposes and for related design, study, and testing costs.
(2)An applicant who receives a new construction grant shall ensure that the project incorporates 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)In the development of guidelines and regulations, the board shall provide a school district with maximum flexibility in the design and new construction of school facilities.
SEC. 11.Section 17072.40 is added to the Education Code, to read:17072.40.The Office of Public School Construction, in consultation with the State Department of Education, shall recommend to the board regulations that will provide school districts with flexibility in designing instructional facilities. These recommendations shall propose revisions to any regulations that limit the ability of school districts to use new construction grants to construct instructional space approved by the State Department of Education. The proposed revisions shall ensure that a school district has the ability to design a facility that provides a flexible learning environment, provides for the integration and use of technology, and serves as an instructional space and learning environment that supports and enhances the educational delivery process.
SEC. 12.Section 17073.16 is added to the Education Code, to read:17073.16.The board shall require a school district that elects to participate in the modernization program to conduct an inventory of existing facilities and submit this information to the board, as prescribed by the board, for purposes of maintaining a statewide school facilities inventory.
SEC. 13.Section 17074.25 of the Education Code is amended to read:17074.25.(a)(1)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.
(2)A modernization apportionment may also be used for either of the following:
(A)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.
(B) Seismic mitigation purposes and related design, study, and testing costs.
(3)An applicant that receives a modernization apportionment shall ensure that the project incorporates 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)In the development of guidelines and regulations, the board shall provide a school district with maximum flexibility in the design and modernization of school facilities.
(c)(1)A modernization apportionment may also be used to demolish and construct a building or buildings on an existing schoolsite if the total cost of providing a new school building, including land, on a new site would not protect the economic interest of the state and school district.
(2)A project deemed to meet the requirements of paragraph (1) shall be eligible for a grant equal to the grant provided under Section 17072.10.
(d)The board shall establish additional requirements it deems necessary to ensure that the economic interests of the state and the educational interests of the children of the state are protected.
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.Section 17077.42 of the Education Code is amended to read:17077.42.In order to be approved for a grant under this article, the applicant school district shall demonstrate that it has complied with all of the following:
(a)The school district has entered into a joint-use agreement with a governmental agency, public community college, public college or public university, or a nonprofit organization approved by the board.
(b)The joint-use agreement specifies the method of sharing capital and operating costs, specifies relative responsibilities for the operation and staffing of the facility, and specifies the manner in which the safety of the pupils will be ensured.
(c)The joint-use agreement specifies the amount of the contribution to be made by the school district and the joint-use partner toward the 50-percent local share of eligible project costs. The contribution made by a joint-use partner shall be no less than 25 percent of eligible project costs, unless either of the following conditions applies:
(1)The school district has passed a local bond that specifies that proceeds of sale of the bonds are to be used for the joint-use project, in which case the school district may opt to provide up to the full 50-percent local share of eligible costs.
(2)The joint-use agreement specifies that the joint-use partner will provide 100 percent of the operational costs for the joint-use project for a term of no less than 10 years.
(d)The school district demonstrates that the facility will be used to the maximum extent possible for both school and community purposes, or both school and higher education purposes, as applicable.
(e)(1)The project application qualifies for funding under paragraph (1) of subdivision (b) of Section 17077.40 and the school district has received all approvals necessary for apportionment under this chapter.
(2)The project qualifies for funding under paragraph (2) or (3) of subdivision (b) of Section 17077.40 and the school district has completed preliminary plans for the project and has received State Department of Education approval of the plans.
SEC. 16.Section 17254 is added to the Education Code, to read:17254.(a)The State Department of Education, the Division of the State Architect, the Office of Public School Construction, and the Department of Toxic Substances Control shall convene for purposes of developing an interagency plan to streamline the school facility construction application, review, and audit processes in order to reduce the time and improve the efficiency of the school facilities construction process.
(b)The As part of the interagency plan developed pursuant to subdivision (a) (a), the Superintendent shall identify a single an entity within the State Department of Education to act as a full-service agency and to assist school districts in navigating the school facilities process. The interagency plan shall be submitted to the Legislature, in accordance with Section 9795 of the Government Code, on or before July 1, 2016.
(c)It is the intent of the Legislature that operative regulatory language adopted by the State Allocation Board before the effective date of this section be reviewed and revised before July 1, 2016, to ensure that the School Facility Program is being implemented in a manner that reduces duplicative processes for the review, approval, and audit of school facility new construction and modernization projects.
(d)This section shall remain in effect only until July 1, 2021, and as of that date is repealed, unless a later enacted statute, that is enacted before July 1, 2021, deletes or extends that date.
SEC. 17.Section 17592.70 of the Education Code is amended to read:17592.70.(a)There is hereby established the School Facilities Needs Assessment Grant Program with the purpose to provide for a one-time comprehensive assessment of school facility needs. The grant program shall be administered by the State Allocation Board.
(b)(1)The grants shall be awarded to school districts on behalf of schoolsites ranked in deciles 1 to 3, inclusive, on the Academic Performance Index (API), pursuant to Section 52056, based on the 2003 base API score for each school newly constructed prior to January 1, 2000.
(2)For purposes of this section, schools ranked in deciles 1 to 3, inclusive, on the 2003 base API shall include any schools determined by the department to meet either of the following:
(A)The school meets all of the following criteria:
(i)Does not have a valid base API score for 2003.
(ii)Is operating in the 200405 fiscal year and was operating in the 200304 fiscal year during the Standardized Testing and Reporting (STAR) Program testing period.
(iii)Has a valid base API score for 2002 that was ranked in deciles 1 to 3, inclusive, in that year.
(B)The school has an estimated base API score for 2003 that would be in deciles 1 to 3, inclusive.
(3)The department shall estimate an API score for any school meeting the criteria of clauses (i) and (ii) of subparagraph (A) of paragraph (2) and not meeting the criteria of clause (iii) of subparagraph (A) of paragraph (2), using available testing scores and any weighting or corrective factors it deems appropriate. The department shall provide those API scores to the Office of Public School Construction and post them on its Internet Web site within 30 days of the enactment of this section.
(4)For purposes of this section, schools ranked in deciles 1 to 3, inclusive, on the 2003 base API shall exclude any schools determined by the department to be operated by county offices of education pursuant to Section 56140.
(c)The board shall allocate funds pursuant to subdivision (b) to school districts with jurisdiction over eligible schoolsites, based on ten dollars ($10) per pupil enrolled in the eligible school as of October 2003, with a minimum allocation of seven thousand five hundred dollars ($7,500) for each schoolsite.
(d)As a condition of receiving funds pursuant to this section, school districts shall do all of the following:
(1)Use the funds to develop a comprehensive needs assessment of all schoolsites eligible for grants pursuant to subdivision (b). The assessment shall contain, at a minimum, all of the following information for each schoolsite:
(A)The year each building that is currently used for instructional purposes was constructed.
(B)The year, if any, each building that is currently used for instructional purposes was last modernized.
(C)The pupil capacity of the school.
(D)The number of pupils enrolled in the school.
(E)The density of the school campus measured in pupils per acre.
(F)The total number of classrooms at the school.
(G)The age and number of portable classrooms at the school.
(H)Whether the school is operating on a multitrack, year-round calendar, and, if so, what type.
(I)Whether the school has a cafeteria, or an auditorium or other space used for pupil eating and not for class instruction.
(J)The useful life remaining of all major building systems for each structure housing instructional space, including, but not limited to, sewer, water, gas, electrical, roofing, and fire and life safety protection.
(K)The estimated costs for five years necessary to maintain functionality of each instructional space to maintain health, safety, and a suitable learning environment, as applicable, including classroom, counseling areas, administrative space, libraries, gymnasiums, multipurpose and dining space, and the accessibility to those spaces.
(L)A list of necessary repairs.
(2)Use the data currently filed with the state as part of the process of applying for and obtaining modernization or construction funds for school facilities, or information that is available in the California Basic Education Data System for the element required in subparagraphs (D), (E), (F), and (G) of paragraph (1).
(3)Use the assessment as the baseline for the facilities inspection system required pursuant to subdivision (d) of Section 17070.75.
(4)Provide the results of the assessment to the Office of Public School Construction, including a report on the expenditures made in performing the assessment. It is the intent of the Legislature that the assessments be completed as soon as possible, but not later than January 1, 2006.
(5)If a school district does not need the full amount of the allocation it receives pursuant to this section, the school district shall expend the remaining funds for making facilities repairs identified in its needs assessment. The school district shall report to the Office of Public School Construction on the repairs completed pursuant to this paragraph and the cost of the repairs.
(6)Submit to the Office of Public School Construction an interim report regarding the progress made by the school district in completing the assessments of all eligible schools.
SEC. 18.Part 70 (commencing with Section 101100) is added to Division 14 of Title 3 of the Education Code, to read:70.KINDERGARTEN THROUGH GRADE 12 PUBLIC EDUCATION FACILITIES BOND ACT OF 20161.General101100.This part shall be known, and may be cited, as the Kindergarten Through Grade 12 Public Education Facilities Bond Act of 2016.
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 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 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 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 2016 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 2016 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 2016 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 ($____) for new construction of school facilities of applicant school districts under Chapter 12.5 (commencing with Section 17070.10) of Part 10 of Division 1 of Title 1.
(2)The amount of ____ dollars ($____) 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.
(3)Of the amount allocated in this subdivision, up to 5 percent shall be available for providing 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.
(b)School districts may use funds allocated pursuant to paragraph (2) 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.
101113.The board shall assign priority for funding under this chapter to applicant school districts that demonstrate participation in a community-based effort to coordinate educational, developmental, family, health, and other comprehensive services by engaging in public and private partnerships with local public entities and other nonprofit or private community partners. Criteria that demonstrate this participation shall include all of the following:
(a)Institutionalized structures for cross-agency collaboration, including, but not limited to, memoranda of understanding to coordinate activities and services.
(b)Agreements for joint use and operations of school facilities, in accordance with the requirements of subdivision (c) of Section 17077.42, that provide for extended hours of use for pupils, families, and the community, integration of libraries, early childhood education, child care centers, senior centers, outdoor recreation or environmental education, arts education, and career technical education and adult education offerings for pupils and community members.
(c)Participation in the State Community Schools Network.
(d)Participation in technical assistance and training, including professional development, for full-service community schools.
(e)Certification that the districts school facilities master plan is consistent with the regional sustainable communities strategy established pursuant to Section 65080 of the Government Code.
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 101100), 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 on the committee 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 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 advisor 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 2016 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 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 2016 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 2016 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.
SEC. 19.The Secretary of State shall submit Section 18 of this act to the voters at the November 8, 2016, statewide general election.
SEC. 20.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. 21.Sections 1 to 15, inclusive, and Sections 17 and 18 of this act shall become operative only if the voters approve the Kindergarten Through Grade 12 Public Education Facilities Bond Act of 2016, as set forth in Section 18 of this act.
The following terms, wherever used or referred to in this chapter, shall have the following meanings, respectively, unless a different meaning appears from the context:
(a)Apportionment means a reservation of funds for the purpose of eligible new construction, modernization, or hardship approved by the board for an applicant school district.
(b)Attendance area means the geographical area serving an existing high school and those junior high schools and elementary schools included therein.
(c)Board means the State Allocation Board as established by Section 15490 of the Government Code.
(d)Committee means the State School Building Finance Committee established pursuant to Section 15909.
(e)County fund means a county school facilities fund established pursuant to Section 17070.43.
(f)Department means the Department of General Services.
(g)Fund means the applicable 1998 State School Facilities Fund, the 2002 State School Facilities Fund, the 2004 State School Facilities Fund, the 2006 State School Facilities Fund, or the 2016 State School Facilities Fund, established pursuant to Section 17070.40.
(h)Good repair has the same meaning as specified in subdivision (d) of Section 17002.
(i)Modernization means any modification or replacement of a permanent structure that is at least 25 years old, or, in the case of a portable classroom, that is at least 20 years old, that will enhance the ability of the structure to achieve educational purposes.
(j)Portable classroom means a classroom building of one or more stories that is designed and constructed to be relocatable and transportable over public streets, and with respect to a single story portable classroom, is designed and constructed for relocation without the separation of the roof or floor from the building and when measured at the most exterior walls, has a floor area not in excess of 2,000 square feet.
(k)Property includes all property, real, personal or mixed, tangible or intangible, or any interest therein necessary or desirable for carrying out the purposes of this chapter.
(l)School building capacity means the capacity of a school building to house pupils.
(m)School district means a school district or a county office of education. For purposes of determining eligibility under this chapter, school district may also mean a high school attendance area.
SEC. 2.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 2016 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 2016 State School Facilities Fund from any source.
(3)The board may make apportionments in amounts not exceeding those funds on deposit in the 2016 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 2016 State School Facilities Fund, irrespective of whether there exists at the time of the disbursement an amount in the 2016 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. 3.Section 17070.75 of the Education Code is amended to read:17070.75.(a)As a condition of participation in the school facilities program, the board shall require the school district to make all necessary repairs, renewals, and replacements to ensure that a project is at all times maintained in good repair, working order, and condition. All costs incurred for this purpose shall be borne by the school district.
(b)In order to ensure compliance with subdivision (a) and to encourage school districts to maintain all buildings under their control, the board shall require an applicant school district to do all of the following prior to the approval of a project:
(1)Establish a restricted account within the general fund of the school district for the exclusive purpose of providing moneys for ongoing and major maintenance of school buildings, according the highest priority to funding for the purposes set forth in subdivision (a).
(2)(A)Agree to deposit into the account established pursuant to paragraph (1), in each fiscal year for 20 years after receipt of funds under this chapter, a minimum amount equal to or greater than 2 percent of the total general fund expenditures of the applicant school district, including other financing uses, for that fiscal year.
(B)A school district contribution to the account may be provided in lieu of meeting the ongoing maintenance requirements pursuant to Section 17014 to the extent the funds are used for purposes established in that section. A school district that serves as the administrative unit for a special education local plan area may elect to exclude from its total general fund expenditures, for purposes of this paragraph, the distribution of revenues that are passed through to participating members of the special education local plan area.
(C)This paragraph applies only to the following school districts:
(i)High school districts with an average daily attendance greater than 300 pupils.
(ii)Elementary school districts with an average daily attendance greater than 900 pupils.
(iii)Unified school districts with an average daily attendance greater than 1,200 pupils.
(3)Certify that it has publicly approved an ongoing and major maintenance plan that outlines the use of the funds deposited, or to be deposited, pursuant to paragraph (2). The plan may provide that the school district need not expend all of its annual allocation for ongoing and major maintenance in the year in which it is deposited if the cost of major maintenance requires that the allocation be carried over into another fiscal year. However, any state funds carried over into a subsequent year may not be counted toward the annual minimum contribution by the school district.
(c)For purposes of calculating a county office of education requirement pursuant to this section, the 2 percent maintenance requirement shall be based upon the county office of education general fund less any restricted accounts.
(d)As a condition of participation in the school facilities program or the receipt of funds pursuant to Section 17582, for a fiscal year after the 200405 fiscal year, a school district shall establish a facilities inspection system to ensure that each of its schools is maintained in good repair.
(e)For purposes of this section, good repair has the same meaning as specified in subdivision (d) of Section 17002.
SEC. 3.Section 17070.75 of the Education Code is amended to read:17070.75.(a)The As a condition for participation in the school facilities program, the board shall require the school district to make all necessary repairs, renewals, and replacements to ensure that a project is at all times maintained in good repair, working order, and condition. All costs incurred for this purpose shall be borne by the school district.
(b)In order to ensure compliance with subdivision (a) and to encourage school districts to maintain all buildings under their control, the board shall require an applicant school district to do all of the following prior to the approval of a project:
(1)Establish a restricted account within the general fund of the school district for the exclusive purpose of providing moneys for ongoing and major maintenance of school buildings, according the highest priority to funding for the purposes set forth in subdivision (a).
(2)(A)Agree to deposit into the account established pursuant to paragraph (1), in each fiscal year for 20 years after receipt of funds under this chapter, a minimum amount equal to or greater than 3 percent of the total general fund expenditures of the applicant school district, including other financing uses, for that fiscal year. Annual deposits to the account established pursuant to paragraph (1) in excess of 21/2 percent of the school district general fund budget may count towards the amount of funds required to be contributed by a school district in order to receive apportionments from the State School Deferred Maintenance Fund pursuant to Section 17584 to the extent that those funds are used for purposes that qualify for funding under that section.
(B)Notwithstanding subparagraph (A), for the 200405 fiscal year only, an applicant school district shall deposit into the account established pursuant to paragraph (1), no less than 2 percent of the total general fund expenditures of the school district, including other financing uses, for the fiscal year. The annual deposit to the account in excess of 11/2 percent of the school district general fund budget for the 200405 fiscal year may count towards the amount that a school district is required to contribute in order to receive apportionments from the State School Deferred Maintenance Fund pursuant to Section 17584 to the extent that those funds are used for purposes that qualify for funding under that section.
(C)A school district contribution to the account may be provided in lieu of meeting the ongoing maintenance requirements pursuant to Section 17014 to the extent the funds are used for purposes established in that section. A school district that serves as the administrative unit for a special education local plan area may elect to exclude from its total general fund expenditures, for purposes of this paragraph, the distribution of revenues that are passed through to participating members of the special education local plan area.
(D)This paragraph applies only to the following school districts:
(i)High school districts with an average daily attendance greater than 300 pupils.
(ii)Elementary school districts with an average daily attendance greater than 900 pupils.
(iii)Unified school districts with an average daily attendance greater than 1,200 pupils.
(3)Certify that it has publicly approved an ongoing and major maintenance plan that outlines the use of the funds deposited, or to be deposited, pursuant to paragraph (2). The plan may provide that the school district need not expend all of its annual allocation for ongoing and major maintenance in the year in which it is deposited if the cost of major maintenance requires that the allocation be carried over into another fiscal year. However, any state funds carried over into a subsequent year may not be counted toward the annual minimum contribution by the school district. A plan developed in compliance with this section shall be deemed to meet the requirements of Section 17585.
(c)A school district to which paragraph (2) of subdivision (b) does not apply shall certify to the board that it can reasonably maintain its facilities with a lesser level of maintenance.
(d)For purposes of calculating a county office of education requirement pursuant to this section, the 3 percent maintenance requirement shall be based upon the county office of education general fund less any restricted accounts.
(e)As a condition of participation in the school facilities program or the receipt of funds pursuant to Section 17582, for a fiscal year after the 200405 fiscal year, a school district shall establish a facilities inspection system to ensure that each of its schools is maintained in good repair.
(f)For purposes of this section, good repair has the same meaning as specified in subdivision (d) of Section 17002.
SEC. 4.Section 17070.78 is added to the Education Code, to read:17070.78.As a condition for participation in the school facilities program, a school district shall certify that it has a long-range school facilities master plan and that the master plan is consistent with the regional sustainable communities strategy established pursuant to Section 65080 of the Government Code.
SEC. 4.SEC. 5.Section 17070.99 of the Education Code is repealed.SEC. 5.SEC. 6.Section 17071.15 is added to the Education Code, to read:17071.15.Notwithstanding Section 17071.10, the board shall require a school district that elects to participate in the new construction program to conduct an inventory of existing facilities and submit this information to the board, as prescribed by the board, for purposes of maintaining a statewide school facilities inventory.
SEC. 6.SEC. 7.Section 17071.33 of the Education Code is repealed.SEC. 7.SEC. 8.Section 17071.35 of the Education Code is repealed.SEC. 8.SEC. 9.Section 17071.40 of the Education Code is repealed.SEC. 9.SEC. 10.Section 17072.35 of the Education Code is amended to read:17072.35.(a)(1)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 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 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 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. A grant for new construction may be used for seismic mitigation purposes and for related design, study, and testing costs.
(2)An applicant who receives a new construction grant shall ensure that the project incorporates 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)In the development of guidelines and regulations, the board shall provide a school district with maximum flexibility in the design and new construction of school facilities.
SEC. 10.SEC. 11.Section 17072.40 is added to the Education Code, to read:17072.40.The Office of Public School Construction, in consultation with the State Department of Education, shall recommend to the board regulations that will provide school districts with flexibility in designing instructional facilities. These recommendations shall propose revisions to any regulations that limit the ability of school districts to use new construction grants to construct instructional space approved by the State Department of Education. The proposed revisions shall ensure that a school district has the ability to design a facility that provides a flexible learning environment, provides for the integration and use of technology, and serves as an instructional space and learning environment that supports and enhances the educational delivery process.
SEC. 11.SEC. 12.Section 17073.16 is added to the Education Code, to read:17073.16.The board shall require a school district that elects to participate in the modernization program to conduct an inventory of existing facilities and submit this information to the board, as prescribed by the board, for purposes of maintaining a statewide school facilities inventory.
SEC. 12.SEC. 13.Section 17074.25 of the Education Code is amended to read:17074.25.(a)(1)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.
(2)A modernization apportionment may also be used for either of the following:
(A)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.
(B) Seismic mitigation purposes and related design, study, and testing costs.
(3)An applicant that receives a modernization apportionment shall ensure that the project incorporates 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)In the development of guidelines and regulations, the board shall provide a school district with maximum flexibility in the design and modernization of school facilities.
(c)(1)A modernization apportionment may also be used to demolish and construct a building or buildings on an existing schoolsite if the total cost of providing a new school building, including land, on a new site would not protect the economic interest of the state and school district.
(2)A project deemed to meet the requirements of paragraph (1) shall be eligible for a grant equal to the grant provided under Section 17072.10.
(d)The board shall establish additional requirements it deems necessary to ensure that the economic interests of the state and the educational interests of the children of the state are protected.
SEC. 13.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.Section 17077.42 of the Education Code is amended to read:17077.42.In order to be approved for a grant under this article, the applicant school district shall demonstrate that it has complied with all of the following:
(a)The school district has entered into a joint-use agreement with a governmental agency, public community college, public college or public university, or a nonprofit organization approved by the board.
(b)The joint-use agreement specifies the method of sharing capital and operating costs, specifies relative responsibilities for the operation and staffing of the facility, and specifies the manner in which the safety of the pupils will be ensured.
(c)The joint-use agreement specifies the amount of the contribution to be made by the school district and the joint-use partner toward the 50-percent local share of eligible project costs. The contribution made by a joint-use partner shall be no less than 25 percent of eligible project costs, unless the either of the following conditions applies:
(1)The school district has passed a local bond which that specifies that proceeds of sale of the bonds are to be used for the joint-use project, in which case the school district may opt to provide up to the full 50-percent local share of eligible costs.
(2)The joint-use agreement specifies that the joint-use partner will provide 100 percent of the operational costs for the joint-use project for a term of no less than 10 years.
(d)The school district demonstrates that the facility will be used to the maximum extent possible for both school and community purposes, or both school and higher education purposes, as applicable.
(e)(1)The project application qualifies for funding under paragraph (1) of subdivision (b) of Section 17077.40 and the school district has received all approvals necessary for apportionment under this chapter.
(2)The project qualifies for funding under paragraph (2) or (3) of subdivision (b) of Section 17077.40 and the school district has completed preliminary plans for the project and has received State Department of Education approval of the plans.
SEC. 14.SEC. 16.Section 17254 is added to the Education Code, to read:17254.(a)The State Department of Education, the Division of the State Architect, the Office of Public School Construction, and the Department of Toxic Substances Control shall convene for purposes of developing an interagency plan to streamline the school facility construction application, review, and audit processes in order to reduce the time and improve the efficiency of the school facilities construction process.
(b)The interagency plan developed pursuant to subdivision (a) shall identify a single entity within the State Department of Education to act as a full-service agency and to assist school districts in navigating the school facilities process. The interagency plan shall be submitted to the Legislature, in accordance with Section 9795 of the Government Code, on or before July 1, 2017. 2016.
(c)It is the intent of the Legislature that operative regulatory language adopted by the State Allocation Board before the effective date of this section be reviewed and revised before July 1, 2016, to ensure that the School Facility Program is being implemented in a manner that reduces duplicative processes for the review, approval, and audit of school facility new construction and modernization projects.
(d)This section shall remain in effect only until July 1, 2021, and as of that date is repealed, unless a later enacted statute, that is enacted before July 1, 2021, deletes or extends that date.
SEC. 15.SEC. 17.Section 17592.70 of the Education Code is amended to read:17592.70.(a)There is hereby established the School Facilities Needs Assessment Grant Program with the purpose to provide for a one-time comprehensive assessment of school facilities facility needs. The grant program shall be administered by the State Allocation Board.
(b)(1)The grants shall be awarded to school districts on behalf of schoolsites ranked in deciles 1 to 3, inclusive, on the Academic Performance Index (API), pursuant to Section 52056, based on the 2003 base API score for each school newly constructed prior to January 1, 2000.
(2)For purposes of this section, schools ranked in deciles 1 to 3, inclusive, on the 2003 base API shall include any schools determined by the department to meet either of the following:
(A)The school meets all of the following criteria:
(i)Does not have a valid base API score for 2003.
(ii)Is operating in fiscal year 200405 the 200405 fiscal year and was operating in fiscal year 200304 the 200304 fiscal year during the Standardized Testing and Reporting (STAR) Program testing period.
(iii)Has a valid base API score for 2002 that was ranked in deciles 1 to 3, inclusive, in that year.
(B)The school has an estimated base API score for 2003 that would be in deciles 1 to 3, inclusive.
(3)The department shall estimate an API score for any school meeting the criteria of clauses (i) and (ii) of subparagraph (A) of paragraph (2) and not meeting the criteria of clause (iii) of subparagraph (A) of paragraph (2), using available testing scores and any weighting or corrective factors it deems appropriate. The department shall provide those API scores to the Office of Public School Construction and post them on its Internet Web site within 30 days of the enactment of this section.
(4)For purposes of this section, schools ranked in deciles 1 to 3, inclusive, on the 2003 base API shall exclude any schools determined by the department to be operated by county offices of education pursuant to Section 56140.
(c)The board shall allocate funds pursuant to subdivision (b) to school districts with jurisdiction over eligible schoolsites, based on ten dollars ($10) per pupil enrolled in the eligible school as of October 2003, with a minimum allocation of seven thousand five hundred dollars ($7,500) for each schoolsite.
(d)As a condition of receiving funds pursuant to this section, school districts shall do all of the following:
(1)Use the funds to develop a comprehensive needs assessment of all schoolsites eligible for grants pursuant to subdivision (b). The assessment shall contain, at a minimum, all of the following information for each schoolsite:
(A)The year each building that is currently used for instructional purposes was constructed.
(B)The year, if any, each building that is currently used for instructional purposes was last modernized.
(C)The pupil capacity of the school.
(D)The number of pupils enrolled in the school.
(E)The density of the school campus measured in pupils per acre.
(F)The total number of classrooms at the school.
(G)The age and number of portable classrooms at the school.
(H)Whether the school is operating on a multitrack, year-round calendar, and, if so, what type.
(I)Whether the school has a cafeteria, or an auditorium or other space used for pupil eating and not for class instruction.
(J)The useful life remaining of all major building systems for each structure housing instructional space, including, but not limited to, sewer, water, gas, electrical, roofing, and fire and life safety protection.
(K)The estimated costs for five years necessary to maintain functionality of each instructional space to maintain health, safety, and a suitable learning environment, as applicable, including classroom, counseling areas, administrative space, libraries, gymnasiums, multipurpose and dining space, and the accessibility to those spaces.
(L)A list of necessary repairs.
(2)Use the data currently filed with the state as part of the process of applying for and obtaining modernization or construction funds for school facilities, or information that is available in the California Basic Education Data System for the element required in subparagraphs (D), (E), (F), and (G) of paragraph (1).
(3)Use the assessment as the baseline for the facilities inspection system required pursuant to subdivision (d) of Section 17070.75.
(4)Provide the results of the assessment to the Office of Public School Construction, including a report on the expenditures made in performing the assessment. It is the intent of the Legislature that the assessments be completed as soon as possible, but not later than January 1, 2006.
(5)If a school district does not need the full amount of the allocation it receives pursuant to this section, the school district shall expend the remaining funds for making facilities repairs identified in its needs assessment. The school district shall report to the Office of Public School Construction on the repairs completed pursuant to this paragraph and the cost of the repairs.
(6)Submit to the Office of Public School Construction an interim report regarding the progress made by the school district in completing the assessments of all eligible schools.
SEC. 16.SEC. 18.Part 70 (commencing with Section 101100) is added to Division 14 of Title 3 of the Education Code, to read:70.KINDERGARTEN-UNIVERSITY KINDERGARTEN THROUGH GRADE 12 PUBLIC EDUCATION FACILITIES BOND ACT OF 20161.General101100.This part shall be known, and may be cited, as the Kindergarten-University Kindergarten Through Grade 12 Public Education Facilities Bond Act of 2016.
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, 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 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 12th Grade 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 2016 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 2016 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 2016 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 ($____) for new construction of school facilities of applicant school districts under Chapter 12.5 (commencing with Section 17070.10) of Part 10 of Division 1 of Title 1.
(2)The amount of ____ dollars ($____) 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.
(3)Of the amount allocated in this subdivision, up to 5 percent shall be available for providing 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.
(b)School districts may use funds allocated pursuant to paragraph (2) 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.
101113.The board shall assign priority for funding under this chapter to applicant school districts that demonstrate participation in a community-based effort to coordinate educational, developmental, family, health, and other comprehensive services by engaging in public and private partnerships with local public entities and other nonprofit or private community partners. Criteria that demonstrate this participation shall include all of the following:
(a)Institutionalized structures for cross-agency collaboration, including, but not limited to, memoranda of understanding to coordinate activities and services.
(b)Agreements for joint use and operations of school facilities, in accordance with the requirements of subdivision (c) of Section 17077.42, that provide for extended hours of use for pupils, families, and the community, integration of libraries, early childhood education, child care centers, senior centers, outdoor recreation or environmental education, arts education, and career technical education and adult education offerings for pupils and community members.
(c)Participation in the State Community Schools Network.
(d)Participation in technical assistance and training, including professional development, for full-service community schools.
(e)Certification that the districts school facilities master plan is consistent with the regional sustainable communities strategy established pursuant to Section 65080 of the Government Code.
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 101100), 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 on the committee 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 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 advisor 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 2016 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 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 2016 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 2016 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 2016 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 Facilities 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 2016 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 Facilities 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 regarding inclusion of facilities for intersegmental use 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 purposes of the State General Obligation Bond Law, each state agency administering an appropriation of the 2016 California 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 that 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 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 2016 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 2016 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 2016 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.Facilities 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 2016 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.Facilities 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 ($____) shall be deposited in the 2016 University Capital Outlay Bond Fund for the purposes of this article. When appropriated, these funds shall be available for expenditure for the purposes of this article.
(b)The purposes of this article include assisting in meeting the capital outlay financing needs of the California State University.
(c)Proceeds from the sale of bonds issued and sold for the purposes of this article may be used to fund construction on existing campuses, including the construction of buildings and the acquisition of related fixtures, construction of facilities that may be used by more than one segment of public higher education (intersegmental), the renovation and reconstruction of facilities, site acquisition, the equipping of new, renovated, or reconstructed facilities, which equipment shall have an average useful life of 10 years; and to provide funds for the payment of preconstruction costs, including, but not limited to, preliminary plans and working drawings for facilities of the California State University.
4.University Facilities Fiscal Provisions101150.(a)Of the total amount of bonds authorized to be issued and sold pursuant to Chapter 1 (commencing with Section 101100), bonds in the amount of ____ dollars ($____), 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 regarding inclusion of facilities for intersegmental use 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 purposes of the State General Obligation Bond Law, each state agency administering an appropriation of the 2016 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 that 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 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 2016 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 2016 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. 17.SEC. 19.The Secretary of State shall submit Section 16 18 of this act to the voters at the November 8, 2016, statewide general election.
SEC. 18.SEC. 20.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. 19.SEC. 21.Sections 1 to 13, 15, inclusive, and Sections 15 and 16 17 and 18 of this act shall become operative only if the voters approve the Kindergarten-University Kindergarten Through Grade 12 Public Education Facilities Bond Act of 2016, as set forth in Section 16 18 of this act.
The following terms, wherever used or referred to in this chapter, shall have the following meanings, respectively, unless a different meaning appears from the context:
(a)Apportionment means a reservation of funds for the purpose of eligible new construction, modernization, or hardship approved by the board for an applicant school district.
(b)Attendance area means the geographical area serving an existing high school and those junior high schools and elementary schools included therein.
(c)Board means the State Allocation Board as established by Section 15490 of the Government Code.
(d)Committee means the State School Building Finance Committee established pursuant to Section 15909.
(e)County fund means a county school facilities fund established pursuant to Section 17070.43.
(f)Department means the Department of General Services.
(g)Fund means the applicable 1998 State School Facilities Fund, the 2002 State School Facilities Fund, or the 2004 State School Facilities Fund, the 2006 State School Facilities Fund, or the 2016 State School Facilities Fund, established pursuant to Section 17070.40.
(h)Good repair has the same meaning as specified in subdivision (d) of Section 17002.
(i)Modernization means any modification or replacement of a permanent structure that is at least 25 years old, or or, in the case of a portable classroom, that is at least 20 years old, that will enhance the ability of the structure to achieve educational purposes.
(j)Portable classroom means a classroom building of one or more stories that is designed and constructed to be relocatable and transportable over public streets, and with respect to a single story portable classroom, is designed and constructed for relocation without the separation of the roof or floor from the building and when measured at the most exterior walls, has a floor area not in excess of 2,000 square feet.
(k)Property includes all property, real, personal or mixed, tangible or intangible, or any interest therein necessary or desirable for carrying out the purposes of this chapter.
(l)School building capacity means the capacity of a school building to house pupils.
(m)School district means a school district or a county office of education. For purposes of determining eligibility under this chapter, school district may also mean a high school attendance area.
SEC. 2.Section 17070.40 of the Education Code is amended to read:17070.40.(a)(1)A fund is hereby established in the State Treasury 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 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 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 2016 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 2016 State School Facilities Fund from any source.
(3)The board may make apportionments in amounts not exceeding those funds on deposit in the 2016 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 2016 State School Facilities Fund, irrespective of whether there exists at the time of the disbursement an amount in the 2016 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. 3.Section 17070.75 of the Education Code is amended to read:17070.75.(a)The As a condition of participation in the school facilities program, the board shall require the school district to make all necessary repairs, renewals, and replacements to ensure that a project is at all times maintained in good repair, working order, and condition. All costs incurred for this purpose shall be borne by the school district.
(b)In order to ensure compliance with subdivision (a) and to encourage school districts to maintain all buildings under their control, the board shall require an applicant school district to do all of the following prior to the approval of a project:
(1)Establish a restricted account within the general fund of the school district for the exclusive purpose of providing moneys for ongoing and major maintenance of school buildings, according the highest priority to funding for the purposes set forth in subdivision (a).
(2)(A)Agree to deposit into the account established pursuant to paragraph (1), in each fiscal year for 20 years after receipt of funds under this chapter, a minimum amount equal to or greater than 3 2 percent of the total general fund expenditures of the applicant school district, including other financing uses, for that fiscal year. Annual deposits to the account established pursuant to paragraph (1) in excess of 21/2 percent of the school district general fund budget may count towards the amount of funds required to be contributed by a school district in order to receive apportionments from the State School Deferred Maintenance Fund pursuant to Section 17584 to the extent that those funds are used for purposes that qualify for funding under that section.
(B)Notwithstanding subparagraph (A), for the 200405 fiscal year only, an applicant school district shall deposit into the account established pursuant to paragraph (1), no less than 2 percent of the total general fund expenditures of the school district, including other financing uses, for the fiscal year. The annual deposit to the account in excess of 11/2 percent of the school district general fund budget for the 200405 fiscal year may count towards the amount that a school district is required to contribute in order to receive apportionments from the State School Deferred Maintenance Fund pursuant to Section 17584 to the extent that those funds are used for purposes that qualify for funding under that section.
(C)
(B)A school district contribution to the account may be provided in lieu of meeting the ongoing maintenance requirements pursuant to Section 17014 to the extent the funds are used for purposes established in that section. A school district that serves as the administrative unit for a special education local plan area may elect to exclude from its total general fund expenditures, for purposes of this paragraph, the distribution of revenues that are passed through to participating members of the special education local plan area.
(D)
(C)This paragraph applies only to the following school districts:
(i)High school districts with an average daily attendance greater than 300 pupils.
(ii)Elementary school districts with an average daily attendance greater than 900 pupils.
(iii)Unified school districts with an average daily attendance greater than 1,200 pupils.
(3)Certify that it has publicly approved an ongoing and major maintenance plan that outlines the use of the funds deposited, or to be deposited, pursuant to paragraph (2). The plan may provide that the school district need not expend all of its annual allocation for ongoing and major maintenance in the year in which it is deposited if the cost of major maintenance requires that the allocation be carried over into another fiscal year. However, any state funds carried over into a subsequent year may not be counted toward the annual minimum contribution by the school district. A plan developed in compliance with this section shall be deemed to meet the requirements of Section 17585.
(c)A school district to which paragraph (2) of subdivision (b) does not apply shall certify to the board that it can reasonably maintain its facilities with a lesser level of maintenance.
(d)
(c)For purposes of calculating a county office of education requirement pursuant to this section, the 3 2 percent maintenance requirement shall be based upon the county office of education general fund less any restricted accounts.
(e)
(d)As a condition of participation in the school facilities program or the receipt of funds pursuant to Section 17582, for a fiscal year after the 200405 fiscal year, a school district shall establish a facilities inspection system to ensure that each of its schools is maintained in good repair.
(f)
(e)For purposes of this section, good repair has the same meaning as specified in subdivision (d) of Section 17002.
SEC. 4.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. 5.Section 17071.15 is added to the Education Code, to read:17071.15.Notwithstanding Section 17071.10, the board shall require a school district that elects to participate in the new construction program to conduct an inventory of existing facilities and submit this information to the board, as prescribed by the board, for purposes of maintaining a statewide school facilities inventory.
SEC. 6.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. 7.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. 8.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. 9.Section 17072.35 of the Education Code is amended to read:17072.35.(a)(1)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 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 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 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. A grant for new construction may be used for seismic mitigation purposes and for related design, study, and testing costs.
(2)An applicant who receives a new construction grant shall ensure that the project incorporates 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)In the development of guidelines and regulations, the board shall provide a school district with maximum flexibility in the design and new construction of school facilities.
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 State Department of Education, shall recommend to the board regulations that will provide school districts with flexibility in designing instructional facilities. These recommendations shall propose revisions to any regulations that limit the ability of school districts to use new construction grants to construct instructional space approved by the State Department of Education. The proposed revisions shall ensure that a school district has the ability to design a facility that provides a flexible learning environment, provides for the integration and use of technology, and serves as an instructional space and learning environment that supports and enhances the educational delivery process.
SEC. 11.Section 17073.16 is added to the Education Code, to read:17073.16.The board shall require a school district that elects to participate in the modernization program to conduct an inventory of existing facilities and submit this information to the board, as prescribed by the board, for purposes of maintaining a statewide school facilities inventory.
SEC. 12.Section 17074.25 of the Education Code is amended to read:17074.25.(a)(1)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
(2)A modernization apportionment may also be used for the either of the following:
(A)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.
(B) Seismic mitigation purposes and related design, study, and testing costs.
(3)An applicant that receives a modernization apportionment shall ensure that the project incorporates 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)In the development of guidelines and regulations, the board shall provide a school district with maximum flexibility in the design and modernization of school facilities.
(c)(1)A modernization apportionment may also be used to demolish and construct a building or buildings on an existing schoolsite if the total cost of providing a new school building, including land, on a new site would not protect the economic interest of the state and school district.
(2)A project deemed to meet the requirements of paragraph (1) shall be eligible for a grant equal to the grant provided under Section 17072.10.
(d)The board shall establish additional requirements it deems necessary to ensure that the economic interests of the state and the educational interests of the children of the state are protected.
SEC. 13.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.
SEC. 14.Section 17254 is added to the Education Code, to read:17254.(a)The State Department of Education, the Division of the State Architect, the Office of Public School Construction, and the Department of Toxic Substances Control shall convene for purposes of developing an interagency plan to streamline the school facility construction application, review, and audit processes in order to reduce the time and improve the efficiency of the school facilities construction process.
(b)The interagency plan developed pursuant to subdivision (a) shall be submitted to the Legislature, in accordance with Section 9795 of the Government Code, on or before July 1, 2017.
(c)It is the intent of the Legislature that operative regulatory language adopted by the State Allocation Board before the effective date of this section be reviewed and revised before July 1, 2016, to ensure that the School Facility Program is being implemented in a manner that reduces duplicative processes for the review, approval, and audit of school facility new construction and modernization projects.
(d)This section shall remain in effect only until July 1, 2021, and as of that date is repealed, unless a later enacted statute, that is enacted before July 1, 2021, deletes or extends that date.
SEC. 15.Section 17592.70 of the Education Code is amended to read:17592.70.(a)There is hereby established the School Facilities Needs Assessment Grant Program with the purpose to provide for a one-time comprehensive assessment of school facilities needs. The grant program shall be administered by the State Allocation Board.
(b)(1)The grants shall be awarded to school districts on behalf of schoolsites ranked in deciles 1 to 3, inclusive, on the Academic Performance Index (API), pursuant to Section 52056, based on the 2003 base API score for each school newly constructed prior to January 1, 2000.
(2)For purposes of this section, schools ranked in deciles 1 to 3, inclusive, on the 2003 base API shall include any schools determined by the department to meet either of the following:
(A)The school meets all of the following criteria:
(i)Does not have a valid base API score for 2003.
(ii)Is operating in fiscal year 2004-05 200405 and was operating in fiscal year 2003-04 200304 during the Standardized Testing and Reporting (STAR) Program testing period.
(iii)Has a valid base API score for 2002 that was ranked in deciles 1 to 3, inclusive, in that year.
(B)The school has an estimated base API score for 2003 that would be in deciles 1 to 3, inclusive.
(3)The department shall estimate an API score for any school meeting the criteria of clauses (i) and (ii) of subparagraph (A) of paragraph (2) and not meeting the criteria of clause (iii) of subparagraph (A) of paragraph (2), using available testing scores and any weighting or corrective factors it deems appropriate. The department shall provide those API scores to the Office of Public School Construction and post them on its Internet Web site within 30 days of the enactment of this section.
(4)For purposes of this section, schools ranked in deciles 1 to 3, inclusive, on the 2003 base API shall exclude any schools determined by the department to be operated by county offices of education pursuant to Section 56140.
(c)The board shall allocate funds pursuant to subdivision (b) to school districts with jurisdiction over eligible schoolsites, based on ten dollars ($10) per pupil enrolled in the eligible school as of October 2003, with a minimum allocation of seven thousand five hundred dollars ($7,500) for each schoolsite.
(d)As a condition of receiving funds pursuant to this section, school districts shall do all of the following:
(1)Use the funds to develop a comprehensive needs assessment of all schoolsites eligible for grants pursuant to subdivision (b). The assessment shall contain, at a minimum, all of the following information for each schoolsite:
(A)The year each building that is currently used for instructional purposes was constructed.
(B)The year, if any, each building that is currently used for instructional purposes was last modernized.
(C)The pupil capacity of the school.
(D)The number of pupils enrolled in the school.
(E)The density of the school campus measured in pupils per acre.
(F)The total number of classrooms at the school.
(G)The age and number of portable classrooms at the school.
(H)Whether the school is operating on a multitrack, year-round calendar, and, if so, what type.
(I)Whether the school has a cafeteria, or an auditorium or other space used for pupil eating and not for class instruction.
(J)The useful life remaining of all major building systems for each structure housing instructional space, including, but not limited to, sewer, water, gas, electrical, roofing, and fire and life safety protection.
(K)The estimated costs for five years necessary to maintain functionality of each instructional space to maintain health, safety, and a suitable learning environment, as applicable, including classroom, counseling areas, administrative space, libraries, gymnasiums, multipurpose and dining space, and the accessibility to those spaces.
(L)A list of necessary repairs.
(2)Use the data currently filed with the state as part of the process of applying for and obtaining modernization or construction funds for school facilities, or information that is available in the California Basic Education Data System for the element required in subparagraphs (D), (E), (F), and (G) of paragraph (1).
(3)Use the assessment as the baseline for the facilities inspection system required pursuant to subdivision (e) (d) of Section 17070.75.
(4)Provide the results of the assessment to the Office of Public School Construction, including a report on the expenditures made in performing the assessment. It is the intent of the Legislature that the assessments be completed as soon as possible, but not later than January 1, 2006.
(5)If a school district does not need the full amount of the allocation it receives pursuant to this section, the school district shall expend the remaining funds for making facilities repairs identified in its needs assessment. The school district shall report to the Office of Public School Construction on the repairs completed pursuant to this paragraph and the cost of the repairs.
(6)Submit to the Office of Public School Construction an interim report regarding the progress made by the school district in completing the assessments of all eligible schools.
SEC. 16.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 20161.General101100.This part shall be known, and may be cited, as the Kindergarten-University Public Education Facilities Bond Act of 2016.
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 12th Grade1.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 2016 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 2016 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 2016 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 ($____) for new construction of school facilities of applicant school districts under Chapter 12.5 (commencing with Section 17070.10) of Part 10 of Division 1 of Title 1.
(2)The amount of ____ dollars ($____) 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.
(3)Of the amount allocated in this subdivision, up to 5 percent shall be available for providing 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.
(b)School districts may use funds allocated pursuant to paragraph (2) 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.
101113.The board shall assign priority for funding under this chapter to applicant school districts that demonstrate participation in a community-based effort to coordinate educational, developmental, family, health, and other comprehensive services by engaging in public and private partnerships with local public entities and other nonprofit or private community partners. Criteria that demonstrate this participation shall include all of the following:
(a)Institutionalized structures for cross-agency collaboration, including, but not limited to, memoranda of understanding to coordinate activities and services.
(b)Agreements for joint use and operations of school facilities that provide for extended hours of use for pupils, families, and the community, integration of libraries, early childhood education, child care centers, senior centers, outdoor recreation or environmental education, arts education, and career technical education and adult education offerings for pupils and community members.
(c)Participation in the State Community Schools Network.
(d)Participation in technical assistance and training, including professional development, for full-service community schools.
(e)Certification that the districts school facilities master plan is consistent with the regional sustainable communities strategy established pursuant to Section 65080 of the Government Code.
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 101100), 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 on the committee 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 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 advisor 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 2016 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 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 2016 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 2016 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 2016 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 Facilities 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 2016 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 Facilities 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 regarding inclusion of facilities for intersegmental use 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 purposes of the State General Obligation Bond Law, each state agency administering an appropriation of the 2016 California 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 that 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 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 2016 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 2016 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 2016 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.Facilities 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 2016 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.Facilities 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 ($____) shall be deposited in the 2016 University Capital Outlay Bond Fund for the purposes of this article. When appropriated, these funds shall be available for expenditure for the purposes of this article.
(b)The purposes of this article include assisting in meeting the capital outlay financing needs of the California State University.
(c)Proceeds from the sale of bonds issued and sold for the purposes of this article may be used to fund construction on existing campuses, including the construction of buildings and the acquisition of related fixtures, construction of facilities that may be used by more than one segment of public higher education (intersegmental), the renovation and reconstruction of facilities, site acquisition, the equipping of new, renovated, or reconstructed facilities, which equipment shall have an average useful life of 10 years; and to provide funds for the payment of preconstruction costs, including, but not limited to, preliminary plans and working drawings for facilities of the California State University.
4.University Facilities Fiscal Provisions101150.(a)Of the total amount of bonds authorized to be issued and sold pursuant to Chapter 1 (commencing with Section 101100), bonds in the amount of ____ dollars ($____), 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 regarding inclusion of facilities for intersegmental use 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 purposes of the State General Obligation Bond Law, each state agency administering an appropriation of the 2016 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 that 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 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 2016 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 2016 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. 17.The Secretary of State shall submit Section 16 of this act to the voters at the November 8, 2016, statewide general election.
SEC. 18.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. 19.Sections 1 to 13, inclusive, and Sections 15 and 16 of this act shall become operative only if the voters approve the Kindergarten-University Public Education Facilities Bond Act of 2016, as set forth in Section 16 of this act.
|
Date
|
Status
|
|---|---|
| May 28, 2015 | From committee: Do pass. (Ayes 5. Noes 2. Page 1147.) (May 28). |
| Feb 1, 2016 | Died on file pursuant to Joint Rule 56. |
| Sep 11, 2015 | Ordered to inactive file on request of Senator Mitchell. |
| Jun 4, 2015 | Read second time. Ordered to third reading. |
| Jun 3, 2015 | Read third time and amended. |
| Jun 3, 2015 | Ordered to second reading. |
| Jun 2, 2015 | Reconsideration granted. |
| Jun 2, 2015 | Read third time. Refused passage. (Ayes 26. Noes 8.) |
| Jun 2, 2015 | Read third time. Refused passage. (Ayes 26. Noes 8. Page 1262.) |
| Jun 2, 2015 | Motion to reconsider made by Senator Liu. |
| Jun 2, 2015 | (Ayes 40. Noes 0. Page 1263.) |
| May 28, 2015 | Read second time. Ordered to third reading. |
| May 28, 2015 | From committee: Do pass. (Ayes 5. Noes 2.) (May 28). |
| Jan 13, 2015 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
| May 23, 2015 | Set for hearing May 28. |
| May 11, 2015 | May 11 hearing: Placed on APPR. suspense file. |
| May 1, 2015 | Set for hearing May 11. |
| Apr 22, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 1. Page 725.) (April 22). Re-referred to Com. on APPR. |
| Apr 10, 2015 | Set for hearing April 22. |
| Apr 7, 2015 | Read second time and amended. Re-referred to Com. on GOV. & F. |
| Apr 6, 2015 | From committee: Do pass as amended and re-refer to Com. on GOV. & F. (Ayes 6. Noes 0. Page 417.) (March 25). |
| Mar 19, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on ED. |
| Mar 13, 2015 | Set for hearing March 25. |
| Feb 5, 2015 | Referred to Coms. on ED. and GOV. & F. |
| Jan 14, 2015 | From printer. May be acted upon on or after February 13. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Jun 2, 2015 | Senate 3rd Reading SB114 Liu Reconsider | Senate Floor |
Passed |
|
| Jun 2, 2015 | Senate 3rd Reading SB114 Liu | Senate Floor |
Failed |
|
| May 28, 2015 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| May 11, 2015 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 22, 2015 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Governance and Finance |
Passed |
|
| Mar 25, 2015 | Do pass as amended, but first amend, and re-refer to the Committee on [Governance and Finance] | Senate 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
|
|---|---|---|
| California Association Of School Business Officials | * Support | Apr 22, 2015 |
| California Association of Sheet Metal Air Conditioning Contractors | * Support | Mar 25, 2015 |
| California Faculty Association | ** Support | Jun 2, 2015 |
| California School Boards Association | ** Support | Jun 2, 2015 |
| California State University | * Support | Mar 25, 2015 |
| Coalition For Adequate School Housing | * Indeterminate | Apr 22, 2015 |
| Community College League of California | * Support | Mar 25, 2015 |
| County School Facilities Consortium | ** Support | Jun 2, 2015 |
| Kern Community College District | * Support | Apr 22, 2015 |
| Los Angeles Community College District | * Support | Apr 22, 2015 |
| Los Angeles Unified School District | ** Support | Jun 2, 2015 |
| Los Rios Community College District | * Support | Apr 22, 2015 |
| Mccallum Group, Inc. | * Support | Mar 25, 2015 |
| Peralta Community College District | * Support | Apr 22, 2015 |
| Riverside County Schools | * Support | Apr 22, 2015 |
| Riverside County Superintendent of Schools | ** Support | Jun 2, 2015 |
| San Diego Community College District | * Support | Apr 22, 2015 |
| San Francisco Community College District | * Support | Apr 22, 2015 |
| State Building & Construction Trades Council Of California | * Support | Mar 25, 2015 |
| u None received. | ** Against | Mar 25, 2015 |
SB 114
Page 7
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: SB 114
Amended: 6/3/15
SENATE EDUCATION COMMITTEE: 6-0, 3/25/15
AYES: Liu, Block, Hancock, Leyva, Mendoza, Pan
NO VOTE RECORDED: Huff, Vidak
SENATE GOVERNANCE & FIN. COMMITTEE: 5-1, 4/22/15
AYES: Hertzberg, Beall, Hernandez, Lara, Pavley
NOES: Moorlach
NO VOTE RECORDED: Nguyen
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/28/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bates, Nielsen
SENATE FLOOR: 26-8, 6/2/15 (FAIL)
AYES: Allen, Beall, Block, De León, Galgiani, Glazer, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Pan, Pavley, Roth, Wieckowski, Wolk
NOES: Anderson, Bates, Gaines, Moorlach, Morrell, Nielsen, Stone, Vidak
NO VOTE RECORDED: Berryhill, Cannella, Fuller, Huff, Nguyen, Runner
SUBJECT: Education facilities: Kindergarten Through Grade 12 Public Education Facilities Bond Act of 2016
DIGEST: This bill makes changes to the existing School Facility Program and authorizes the Kindergarten-Grade 12 Public Education Facilities Bond Act of 2016 to provide for the issuance of an unspecified amount of general obligation bonds for construction and modernization of education facilities to become effective if approved by voters at the November 8, 2016, statewide general election.
Senate Floor Amendments of 6/3/15 add an urgency clause.
ANALYSIS: Existing law establishes the School Facility Program (SFP) under which the state provides general obligation (GO) bond funding for various school construction projects, including new construction, modernization, joint-use facilities, and programs to specifically address the construction needs of overcrowded schools, charter schools, career technical education facilities, and seismic mitigation. (Education Code § 17070.10 – 17070.99)
The last statewide GO bond, Proposition 1D was approved by voters in November 2006. Proposition 1D, authorized $7.3 billion for K-12 education facilities and $3.087 billion for higher education facilities and allocated specified amounts from the sale of these bonds for modernization, new construction, charter schools, career technical education facilities, joint use, projects for new construction on severely overcrowded schoolsites, and high performance incentive grants to promote energy efficient designs and materials. In addition, portions of the amounts allocated for new construction and modernization were authorized for purposes of funding smaller learning communities and high schools and for seismic retrofit projects. (EC §101010-101031)
This bill establishes the K-12 Public Education Facilities Bond Act of 2016 (Act) to provide for the issuance of an unspecified amount of GO bonds for construction and modernization of education facilities, to take effect only if approved by voters. More specifically it:
Requires submission of the Act to voters at the November 8, 2016, statewide general election.
As a condition of participation in the SFP, requires a school district to:
Comply with existing deferred maintenance provisions.
Certify that it has a long-range school facilities master plan consistent with the regional sustainable communities strategy plans established pursuant to specified Government Code provisions.
Conduct an inventory of existing facilities and submit this information to the State Allocation Board (SAB) for purposes of maintaining a statewide school facilities inventory.
Requires the Office of Public School Construction (OPSC), in consultation with the California Department of Education (CDE), to recommend regulations to the SAB that provide school districts with flexibility in designing instructional facilities.
Requires that the SAB provide a school district with the maximum flexibility in design, new construction, and modernization of school facilities, and further:
Requires that an applicant who receives a new construction grant ensure that the project incorporates high performance attributes.
Modifies the use of modernization funds in the following ways:
Authorizes the use of a modernization apportionment for seismic mitigation purposes including related design, study, and testing costs.
Requires that an applicant who receives a modernization grant ensure that the project incorporates high performance attributes.
Expands the definition of modernization to include “replacement” as well as modification and authorizes the use of the apportionment to demolish and construct on the existing site if the total cost of providing a new building, including land, would not protect the economic interest of the state and school district.
Makes a replacement project eligible for the same grant amount as that authorized for a new construction project.
Authorizes the SAB to establish any additional requirements deemed necessary to protect the economic interests of the state and educational interests of children.
Expands the allowable match for joint use funding to include operational costs and, if the joint use agreement specifies the partner will be responsible for 100% of the operational costs for the project for a term of no less than 10 years, eliminates the requirement that the partner contribute no less than 25% of project costs.
Requires the CDE, Division of the State Architect, OPSC, and Department of Toxic Substances Control (DTSC) to develop an interagency plan, by July 1, 2016, to streamline the school facility construction application, review and audit processes to reduce time and improve efficiency.
Requires the Superintendent of Public Instruction, as part of the interagency plan, to identify an entity within the CDE to act as a full-service agency and to assist school districts in navigating the school facilities construction process.
Declares the Legislature’s intent that the SAB review and revise operative regulatory language before July 1, 2016, to reduce duplicative review, approval and audit processes.
Requires the SAB to assign priority for funding to school districts that demonstrate participation in a community-based effort to coordinate educational, developmental, family, health, and other comprehensive services through public and private partnerships and outlines the criteria that demonstrate such participation.
Makes the following technical changes:
Repeals provisions requiring an evaluation of the construction and modernization costs of small high schools.
Repeals provisions establishing eligibility calculation adjustments on the basis of multi-track year-round operation.
Repeals other obsolete eligibility calculation adjustments.
Corrects an erroneous cross-reference.
Makes various technical changes.
Comments
Need for the bill. Funding for the SFP is virtually gone and there is a backlog in applications for state assistance. At the same time there have been ongoing complaints about the current program’s complexity and design, as well as questions about whether the program created in 1998 is aligned to the state’s current policy objectives. The “winding down” of the current program, and the Governor’s call for change (see comment #2), present an opportunity to rethink the administrative and programmatic structure of the SFP, learn from its strengths and weaknesses, and better align program design with the state’s policy objectives. This bill begins that process.
Related budget activity. Amid concerns about the complexity and structure of the current program and the state’s increasing debt service obligations, the Governor has proposed significant changes to the way school facilities are funded. In order to allow districts to better meet their facilities needs at the local level, the Governor’s 2015-16 Budget proposes to:
Expand revenue generation tools at the local level by expanding local funding capacity and increasing caps on local bond indebtedness;
Restructure developer fees to set one level for all projects at a level between existing Level II and Level III fees subject to local negotiation; and
Expand allowable uses of Routine Restricted Maintenance Funding to authorize the pooling of these funds over multiple years for modernization and new construction projects.
The Governor has also noted that he is prepared to engage with the Legislature and education stakeholders to shape a future state program that is focused on districts with the greatest need, including communities with low property values and few borrowing options, as well as overcrowded schools.
Related joint informational hearing. On February 18, 2015, the Senate Education Committee held a joint informational hearing with the Budget Subcommittee on Education on K-12 SCHOOL FACILITY PROGRAM: HISTORY, CURRENT STATUS, AND FUTURE OPTIONS to review the Governor’s school facilities proposals. Among other things, the Committee heard testimony from several participants about the need to simplify the current program processes and regulations, the need for a “one-stop-shop” to assist in navigating the program, and the need for greater flexibility in design of school facilities as well as the use of funding to incentivize and support joint use projects and community schools. Additionally, while the state’s growing debt service is of concern, it was unclear whether local districts have the capacity to generate sufficient revenue at the local level to meet their ongoing facility needs for deferred maintenance, modernization and new construction. This bill begins to respond to some of these issues through the proposal of various programmatic changes.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee:
Bonds: Unknown, but assuming similar bond authority amounts authorized in past measures, it will likely result in state costs in the low tens of billions of dollars in principal and interest over 30 years (mid hundreds of millions General Fund annually).
Administration: Substantial new workload for the CDE and the Department of General Services (DGS). The level of new work would depend on the size of the bond. The DGS estimates that its OPSC would require significant staffing increases of over 100 positions if assuming a $7.3 billion bond. This bill will also drive significant workload at the CDE related to review and approval of site selection and construction plans. Administrative workload would likely be bond-funded.
Interagency agreement: DTSC estimates costs ranging from $85,000 to $120,000 for its participation in developing an interagency agreement as required by this bill.
Ballot costs: Likely $200,000 General Fund for a statewide ballot pamphlet, assuming four pages.
California Faculty Association
California School Boards Association
County School Facilities Consortium
Los Angeles Unified School District
Riverside County Superintendent of Schools
None received
Prepared by: Kathleen Chavira / ED. / (916) 651-4105
6/10/15 15:56:10
**** END ****
SB 114
Page 6
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: SB 114
Amended: 6/3/15
SENATE EDUCATION COMMITTEE: 6-0, 3/25/15
AYES: Liu, Block, Hancock, Leyva, Mendoza, Pan
NO VOTE RECORDED: Huff, Vidak
SENATE GOVERNANCE & FIN. COMMITTEE: 5-1, 4/22/15
AYES: Hertzberg, Beall, Hernandez, Lara, Pavley
NOES: Moorlach
NO VOTE RECORDED: Nguyen
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/28/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bates, Nielsen
SUBJECT: Education facilities: Kindergarten Through Grade 12 Public Education Facilities Bond Act of 2016
DIGEST: This bill makes changes to the existing School Facility Program and authorizes the Kindergarten-Grade 12 Public Education Facilities Bond Act of 2016 to provide for the issuance of an unspecified amount of general obligation bonds for construction and modernization of education facilities to become effective if approved by voters at the November 8, 2016, statewide general election.
Senate Floor Amendments of 6/3/15 add an urgency clause.
ANALYSIS: Existing law establishes the School Facility Program (SFP) under which the state provides general obligation (GO) bond funding for various school construction projects, including new construction, modernization, joint-use facilities, and programs to specifically address the construction needs of overcrowded schools, charter schools, career technical education facilities, and seismic mitigation. (Education Code § 17070.10 – 17070.99)
The last statewide GO bond, Proposition 1D was approved by voters in November 2006. Proposition 1D, authorized $7.3 billion for K-12 education facilities and $3.087 billion for higher education facilities and allocated specified amounts from the sale of these bonds for modernization, new construction, charter schools, career technical education facilities, joint use, projects for new construction on severely overcrowded schoolsites, and high performance incentive grants to promote energy efficient designs and materials. In addition, portions of the amounts allocated for new construction and modernization were authorized for purposes of funding smaller learning communities and high schools and for seismic retrofit projects. (EC §101010-101031)
This bill establishes the K-12 Public Education Facilities Bond Act of 2016 (Act) to provide for the issuance of an unspecified amount of GO bonds for construction and modernization of education facilities, to take effect only if approved by voters. More specifically it:
Requires submission of the Act to voters at the November 8, 2016, statewide general election.
As a condition of participation in the SFP, requires a school district to:
Comply with existing deferred maintenance provisions.
Certify that it has a long-range school facilities master plan consistent with the regional sustainable communities strategy plans established pursuant to specified Government Code provisions.
Conduct an inventory of existing facilities and submit this information to the State Allocation Board (SAB) for purposes of maintaining a statewide school facilities inventory.
Requires the Office of Public School Construction (OPSC), in consultation with the California Department of Education (CDE), to recommend regulations to the SAB that provide school districts with flexibility in designing instructional facilities.
Requires that the SAB provide a school district with the maximum flexibility in design, new construction, and modernization of school facilities, and further:
Requires that an applicant who receives a new construction grant ensure that the project incorporates high performance attributes.
Modifies the use of modernization funds in the following ways:
Authorizes the use of a modernization apportionment for seismic mitigation purposes including related design, study, and testing costs.
Requires that an applicant who receives a modernization grant ensure that the project incorporates high performance attributes.
Expands the definition of modernization to include “replacement” as well as modification and authorizes the use of the apportionment to demolish and construct on the existing site if the total cost of providing a new building, including land, would not protect the economic interest of the state and school district.
Makes a replacement project eligible for the same grant amount as that authorized for a new construction project.
Authorizes the SAB to establish any additional requirements deemed necessary to protect the economic interests of the state and educational interests of children.
Expands the allowable match for joint use funding to include operational costs and, if the joint use agreement specifies the partner will be responsible for 100% of the operational costs for the project for a term of no less than 10 years, eliminates the requirement that the partner contribute no less than 25% of project costs.
Requires the CDE, Division of the State Architect, OPSC, and Department of Toxic Substances Control (DTSC) to develop an interagency plan, by July 1, 2016, to streamline the school facility construction application, review and audit processes to reduce time and improve efficiency.
Requires the Superintendent of Public Instruction, as part of the interagency plan, to identify an entity within the CDE to act as a full-service agency and to assist school districts in navigating the school facilities construction process.
Declares the Legislature’s intent that the SAB review and revise operative regulatory language before July 1, 2016, to reduce duplicative review, approval and audit processes.
Requires the SAB to assign priority for funding to school districts that demonstrate participation in a community-based effort to coordinate educational, developmental, family, health, and other comprehensive services through public and private partnerships and outlines the criteria that demonstrate such participation.
Makes the following technical changes:
Repeals provisions requiring an evaluation of the construction and modernization costs of small high schools.
Repeals provisions establishing eligibility calculation adjustments on the basis of multi-track year-round operation.
Repeals other obsolete eligibility calculation adjustments.
Corrects an erroneous cross-reference.
Makes various technical changes.
Comments
Need for the bill. Funding for the SFP is virtually gone and there is a backlog in applications for state assistance. At the same time there have been ongoing complaints about the current program’s complexity and design, as well as questions about whether the program created in 1998 is aligned to the state’s current policy objectives. The “winding down” of the current program, and the Governor’s call for change (see comment #2), present an opportunity to rethink the administrative and programmatic structure of the SFP, learn from its strengths and weaknesses, and better align program design with the state’s policy objectives. This bill begins that process.
Related budget activity. Amid concerns about the complexity and structure of the current program and the state’s increasing debt service obligations, the Governor has proposed significant changes to the way school facilities are funded. In order to allow districts to better meet their facilities needs at the local level, the Governor’s 2015-16 Budget proposes to:
Expand revenue generation tools at the local level by expanding local funding capacity and increasing caps on local bond indebtedness;
Restructure developer fees to set one level for all projects at a level between existing Level II and Level III fees subject to local negotiation; and
Expand allowable uses of Routine Restricted Maintenance Funding to authorize the pooling of these funds over multiple years for modernization and new construction projects.
The Governor has also noted that he is prepared to engage with the Legislature and education stakeholders to shape a future state program that is focused on districts with the greatest need, including communities with low property values and few borrowing options, as well as overcrowded schools.
Related joint informational hearing. On February 18, 2015, the Senate Education Committee held a joint informational hearing with the Budget Subcommittee on Education on K-12 SCHOOL FACILITY PROGRAM: HISTORY, CURRENT STATUS, AND FUTURE OPTIONS to review the Governor’s school facilities proposals. Among other things, the Committee heard testimony from several participants about the need to simplify the current program processes and regulations, the need for a “one-stop-shop” to assist in navigating the program, and the need for greater flexibility in design of school facilities as well as the use of funding to incentivize and support joint use projects and community schools. Additionally, while the state’s growing debt service is of concern, it was unclear whether local districts have the capacity to generate sufficient revenue at the local level to meet their ongoing facility needs for deferred maintenance, modernization and new construction. This bill begins to respond to some of these issues through the proposal of various programmatic changes.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee:
Bonds: Unknown, but assuming similar bond authority amounts authorized in past measures, it will likely result in state costs in the low tens of billions of dollars in principal and interest over 30 years (mid hundreds of millions General Fund annually).
Administration: Substantial new workload for the CDE and the Department of General Services (DGS). The level of new work would depend on the size of the bond. The DGS estimates that its OPSC would require significant staffing increases of over 100 positions if assuming a $7.3 billion bond. This bill will also drive significant workload at the CDE related to review and approval of site selection and construction plans. Administrative workload would likely be bond-funded.
Interagency agreement: DTSC estimates costs ranging from $85,000 to $120,000 for its participation in developing an interagency agreement as required by this bill.
Ballot costs: Likely $200,000 General Fund for a statewide ballot pamphlet, assuming four pages.
California Faculty Association
California School Boards Association
County School Facilities Consortium
Los Angeles Unified School District
Riverside County Superintendent of Schools
None received
Prepared by: Kathleen Chavira / ED. / (916) 651-4105
6/4/15 14:47:21
**** END ****
SB 114
Page 6
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: SB 114
Amended: 4/7/15
SENATE EDUCATION COMMITTEE: 6-0, 3/25/15
AYES: Liu, Block, Hancock, Leyva, Mendoza, Pan
NO VOTE RECORDED: Huff, Vidak
SENATE GOVERNANCE & FIN. COMMITTEE: 5-1, 4/22/15
AYES: Hertzberg, Beall, Hernandez, Lara, Pavley
NOES: Moorlach
NO VOTE RECORDED: Nguyen
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/28/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bates, Nielsen
SUBJECT: Education facilities: Kindergarten Through Grade 12 Public Education Facilities Bond Act of 2016
DIGEST: This bill makes changes to the existing School Facility Program and authorizes the Kindergarten-Grade 12 Public Education Facilities Bond Act of 2016 to provide for the issuance of an unspecified amount of general obligation bonds for construction and modernization of education facilities to become effective if approved by voters at the November 8, 2016, statewide general election.
ANALYSIS: Existing law establishes the School Facility Program (SFP) under which the state provides general obligation (GO) bond funding for various school construction projects, including new construction, modernization, joint-use facilities, and programs to specifically address the construction needs of overcrowded schools, charter schools, career technical education facilities, and seismic mitigation. (Education Code § 17070.10 – 17070.99)
The last statewide GO bond, Proposition 1D was approved by voters in November 2006. Proposition 1D, authorized $7.3 billion for K-12 education facilities and $3.087 billion for higher education facilities and allocated specified amounts from the sale of these bonds for modernization, new construction, charter schools, career technical education facilities, joint use, projects for new construction on severely overcrowded schoolsites, and high performance incentive grants to promote energy efficient designs and materials. In addition, portions of the amounts allocated for new construction and modernization were authorized for purposes of funding smaller learning communities and high schools and for seismic retrofit projects. (EC §101010-101031)
This bill establishes the K-12 Public Education Facilities Bond Act of 2016 (Act) to provide for the issuance of an unspecified amount of GO bonds for construction and modernization of education facilities, to take effect only if approved by voters. More specifically it:
Requires submission of the Act to voters at the November 8, 2016, statewide general election.
As a condition of participation in the SFP, requires a school district to:
Comply with existing deferred maintenance provisions.
Certify that it has a long-range school facilities master plan consistent with the regional sustainable communities strategy plans established pursuant to specified Government Code provisions.
Conduct an inventory of existing facilities and submit this information to the State Allocation Board (SAB) for purposes of maintaining a statewide school facilities inventory.
Requires the Office of Public School Construction (OPSC), in consultation with the California Department of Education (CDE), to recommend regulations to the SAB that provide school districts with flexibility in designing instructional facilities.
Requires that the SAB provide a school district with the maximum flexibility in design, new construction, and modernization of school facilities, and further:
Requires that an applicant who receives a new construction grant ensure that the project incorporates high performance attributes.
Modifies the use of modernization funds in the following ways:
Authorizes the use of a modernization apportionment for seismic mitigation purposes including related design, study, and testing costs.
Requires that an applicant who receives a modernization grant ensure that the project incorporates high performance attributes.
Expands the definition of modernization to include “replacement” as well as modification and authorizes the use of the apportionment to demolish and construct on the existing site if the total cost of providing a new building, including land, would not protect the economic interest of the state and school district.
Makes a replacement project eligible for the same grant amount as that authorized for a new construction project.
Authorizes the SAB to establish any additional requirements deemed necessary to protect the economic interests of the state and educational interests of children.
Expands the allowable match for joint use funding to include operational costs and, if the joint use agreement specifies the partner will be responsible for 100% of the operational costs for the project for a term of no less than 10 years, eliminates the requirement that the partner contribute no less than 25% of project costs.
Requires the CDE, Division of the State Architect, OPSC, and Department of Toxic Substances Control (DTSC) to develop an interagency plan, by July 1, 2016, to streamline the school facility construction application, review and audit processes to reduce time and improve efficiency.
Requires the Superintendent of Public Instruction, as part of the interagency plan, to identify an entity within the CDE to act as a full-service agency and to assist school districts in navigating the school facilities construction process.
Declares the Legislature’s intent that the SAB review and revise operative regulatory language before July 1, 2016, to reduce duplicative review, approval and audit processes.
Requires the SAB to assign priority for funding to school districts that demonstrate participation in a community-based effort to coordinate educational, developmental, family, health, and other comprehensive services through public and private partnerships and outlines the criteria that demonstrate such participation.
Makes the following technical changes:
Repeals provisions requiring an evaluation of the construction and modernization costs of small high schools.
Repeals provisions establishing eligibility calculation adjustments on the basis of multi-track year-round operation.
Repeals other obsolete eligibility calculation adjustments.
Corrects an erroneous cross-reference.
Makes various technical changes.
Comments
Need for the bill. Funding for the SFP is virtually gone and there is a backlog in applications for state assistance. At the same time there have been ongoing complaints about the current program’s complexity and design, as well as questions about whether the program created in 1998 is aligned to the state’s current policy objectives. The “winding down” of the current program, and the Governor’s call for change (see comment #2), present an opportunity to rethink the administrative and programmatic structure of the SFP, learn from its strengths and weaknesses, and better align program design with the state’s policy objectives. This bill begins that process.
Related budget activity. Amid concerns about the complexity and structure of the current program and the state’s increasing debt service obligations, the Governor has proposed significant changes to the way school facilities are funded. In order to allow districts to better meet their facilities needs at the local level, the Governor’s 2015-16 Budget proposes to:
Expand revenue generation tools at the local level by expanding local funding capacity and increasing caps on local bond indebtedness;
Restructure developer fees to set one level for all projects at a level between existing Level II and Level III fees subject to local negotiation; and
Expand allowable uses of Routine Restricted Maintenance Funding to authorize the pooling of these funds over multiple years for modernization and new construction projects.
The Governor has also noted that he is prepared to engage with the Legislature and education stakeholders to shape a future state program that is focused on districts with the greatest need, including communities with low property values and few borrowing options, as well as overcrowded schools.
Related joint informational hearing. On February 18, 2015, the Senate Education Committee held a joint informational hearing with the Budget Subcommittee on Education on K-12 SCHOOL FACILITY PROGRAM: HISTORY, CURRENT STATUS, AND FUTURE OPTIONS to review the Governor’s school facilities proposals. Among other things, the Committee heard testimony from several participants about the need to simplify the current program processes and regulations, the need for a “one-stop-shop” to assist in navigating the program, and the need for greater flexibility in design of school facilities as well as the use of funding to incentivize and support joint use projects and community schools. Additionally, while the state’s growing debt service is of concern, it was unclear whether local districts have the capacity to generate sufficient revenue at the local level to meet their ongoing facility needs for deferred maintenance, modernization and new construction. This bill begins to respond to some of these issues through the proposal of various programmatic changes.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee:
Bonds: Unknown, but assuming similar bond authority amounts authorized in past measures, it will likely result in state costs in the low tens of billions of dollars in principal and interest over 30 years (mid hundreds of millions General Fund annually).
Administration: Substantial new workload for the CDE and the Department of General Services (DGS). The level of new work would depend on the size of the bond. The DGS estimates that its OPSC would require significant staffing increases of over 100 positions if assuming a $7.3 billion bond. This bill will also drive significant workload at the CDE related to review and approval of site selection and construction plans. Administrative workload would likely be bond-funded.
Interagency agreement: DTSC estimates costs ranging from $85,000 to $120,000 for its participation in developing an interagency agreement as required by this bill.
Ballot costs: Likely $200,000 General Fund for a statewide ballot pamphlet, assuming four pages.
California Faculty Association
California School Boards Association
County School Facilities Consortium
Los Angeles Unified School District
Riverside County Superintendent of Schools
OPPOSITION: (Verified 5/28/15)
None received
Prepared by: Kathleen Chavira / ED. / (916) 651-4105
5/31/15 12:03:50
**** END ****
SB 114 (Liu) Page 4 of 4
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 114 (Liu) - Education facilities: Kindergarten Through Grade 12 Public Education Facilities Bond Act of 2016
|
|
Version: April 7, 2015 |
Policy Vote: ED. 6 - 0, GOV. & F. 5 - 1 |
Urgency: No |
Mandate: No |
Hearing Date: May 11, 2015 |
Consultant: Jillian(SAPR) Kissee |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
This bill makes changes to the existing school facility program and authorizes the Kindergarten Through Grade 12 Public Education Facilities Bond Act of 2016 to provide for the issuance of an unspecified amount of general obligation bonds for construction and modernization of education facilities to become effective if approved by voters at the November 8, 2016 statewide general election.
Fiscal Impact:
Bonds: Unknown, but assuming similar bond authority amounts authorized in past measures, it will likely result in state costs in the low tens of billions of dollars in principal and interest over 30 years (mid hundreds of millions General Fund annually).
Administration: Substantial new workload for the California Department of Education (CDE) and the Department of General Services (DGS). The level of new work would depend the size of the bond. The DGS estimates that its Office of Public School Construction (OPSC) would require significant staffing increases of over 100 positions if assuming a $7.3 billion bond. This measure will also drive significant workload at the CDE related to review and approval of site selection and construction plans. Administrative workload would likely be bond-funded.
Interagency Agreement: Department of Toxic Substances Control estimates costs ranging from $85,000 to $120,000 for its participation in developing an interagency agreement as required by this bill.
Ballot costs: Likely $200,000 General Fund for a statewide ballot pamphlet, assuming 4 pages.
Background:
Existing law establishes the School Facility Program (SFP) under which the state provides general obligation bond funding for various school construction projects, including new construction, modernization, joint-use facilities, and programs to specifically address the construction needs of overcrowded schools, charter schools, career technical education facilities, and seismic mitigation. (Education Code § 17070.10 – 17070.99)
The
last statewide general obligation bond, Proposition 1D was approved
by voters in November 2006. Proposition 1D, authorized $7.3 billion
for K-12 education facilities and $3.087 billion for higher education
facilities and allocated specified amounts from the sale of these
bonds for modernization, new construction, charter schools, career
technical education facilities, joint use, projects for new
construction on severely overcrowded schoolsites, and high
performance incentive grants to promote energy efficient designs and
materials. In addition, portions of the amounts allocated for new
construction and modernization were authorized for purposes of
funding smaller learning communities and high schools and for seismic
retrofit projects. (EC §101010-101031)
Since 1998, voters have approved approximately $35 billion in statewide general obligation bonds to construct or renovate K-12 school facilities and almost $10 billion for higher education facilities. This bill would authorize an unspecified amount of bonds for this purpose.
Proposed Law:
This bill establishes the Kindergarten Through Grade 12 Public Education Facilities Bond Act of 2016 to provide for the issuance of an unspecified amount of general obligation (GO) bonds for construction and modernization of education facilities, to take effect only if approved by voters at the November 8, 2016, statewide general election.
This
bill requires, as a condition of participation in the school
facilities program, a school district to:
Comply with existing deferred maintenance provisions.
Certify that it has a long-range school facilities master plan consistent with the regional sustainable communities strategy plans established pursuant to specified Government Code provisions.
Conduct an inventory of existing facilities and submit this information to the State Allocation Board (SAB) for purposes of maintaining a statewide school facilities inventory.
This bill directs the OPSC, in consultation with the California Department of Education (CDE), to recommend regulations to the SAB that provide school districts with flexibility in the design, construction of, and modernization of school facilities. The recommendations must propose revisions to any regulations that limit the ability of school districts to use new construction grants to construct approved instructional space and must ensure that school districts have the ability to design a facility that provides a flexible learning environment and the integration of technology.
This
bill authorizes a grant for new construction and a modernization
apportionment to be used for seismic mitigation purposes and for
related design, study, and testing costs. An applicant that receives
funding in either case must ensure that the project incorporates
designs and materials that promote the efficient use of energy and
water, and other characteristics of high-performance schools.
Furthermore, this
bill expands the definition of modernization to include “replacement”
and authorizes the use of the apportionment to demolish and construct
on the existing site if the total cost of providing a new building,
including land, would not protect the economic interest of the state
and school district. A replacement project would also be eligible
for the same grant amount as that authorized for a new construction
project.
This bill eliminates
the requirement that a joint-use facility partner contribute no less
than 25 percent of project costs if the joint-use agreement specifies
the partner will be responsible for 100 percent of the operational
costs for the project for a term of no less than 10 years.
As the only provision of this bill that if it is enacted, is not contingent upon voters approving the bond, the CDE, Division of the State Architect (DSA), Office of Public School Construction (OPSC), and Department of Toxic Substances Control are required to develop an interagency plan, by July 1, 2016, to: (1) streamline the school facility construction application, review and audit processes and (2) identify a single entity within the CDE as a full-service agency to assist school districts in navigating the school facilities construction process.
Legislative intent provides that the SAB review and revise operative regulatory language before July 1, 2016, to reduce duplicative review, approval and audit processes.
Related Legislation:
AB 148 (Holden, 2015), AB 1088 (O’Donnell, 2015), and AB 1433 (Gray, 2015) all relate to placing bond measures before voters for school facilities in kindergarten through university. AB 148 specifies an amount of $1.1 billion.
AB
2235 (Buchanan, 2014) made changes to the School Facility Program and
authorized the Kindergarten-University Public Education Facilities
Bond Act of 2014 to provide for the issuance of $4.3 billion in
general obligation (GO) bonds for construction and modernization of
education facilities, to become effective only if approved by voters
at the November 4, 2014, statewide general election. Some provisions
of AB 2235 were similar to those in this bill. AB 2235 awaited
action on the Senate Floor but was subsequently moved to the Inactive
File.
A number of other measures expressed the Legislature’s intent to place, or would have authorized placement of Kindergarten-University facilities bonds on several previous ballots. In particular, AB 220 (Brownley, 2009) would have placed a $6.1 billion Kindergarten-University facilities bond on the November 2010 ballot. AB 220 was held in the Senate Appropriations Committee. SB 271 (Ducheny, 2009) would have placed an $8.6 billion higher education facilities bond on the November 2010 ballot. SB 271 was held in this committee.
Staff Comments:
This bill will result in direct state General Fund costs of about
$200,000 to place the Kindergarten Through Grade 12 Public Education
Facilities Bond Act of 2016 on the November 8, 2016 statewide ballot.
If enacted by voters, this measure will result in substantial
additional state costs.
As currently written, this bill asks voters to approve the issuance (and repayment) of an unspecified amount of state GO bonds, but the amount decided upon is likely to be in the billions of dollars, based on past bond measures. Until the amounts are specified, the fiscal impact of this bill is unknown. However, presumably this bond will be in low billions of dollars. Staff notes for reference, that assuming an interest rate of 5% with a 30 year repayment period, the state will pay in the mid hundreds of millions for a $7.3 billion bond. Over the 30 years, costs would likely be in the low tens of billions.
-- END --
SB 114 (Liu) 4/7/15 Page 8 of 8
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Robert M. Hertzberg, Chair
2015 - 2016 Regular
Bill No: |
SB 114 |
Hearing Date: |
4/22/15 |
Author: |
Liu |
Tax Levy: |
No |
Version: |
4/7/15 |
Fiscal: |
Yes |
Consultant: |
Grinnell |
||
EDUCATION FACILITIES: KINDERGARTEN THROUGH GRADE 12 PUBLIC EDUCATION FACILITIES BOND ACT OF 2016
Proposes the Kindergarten-University Public Education Facilities Bond Act of 2016, a $9 billion bond act for the November, 2016, ballot.
Background and Existing Law
I. Bond Acts. When public agencies issue bonds, they essentially borrow money from investors, who provide cash in exchange for the agencies’ commitment to repay the principal amount of the bond plus interest. Bonds are usually either revenue bonds, which repay investors out of revenue generated from the project the agency buys with bond proceeds, or general obligation bonds, which the public agency pays out of general revenues and are guaranteed by its full faith and credit.
Section 1 of Article XVI of the California Constitution and the state’s General Obligation Bond Law guide the issuance of the state’s general obligation debt. The Constitution allows the Legislature to place general obligation bonds on the ballot for specific purposes with a two-thirds vote of the Assembly and Senate. Voters also can place bonds on the ballot by initiative, as they have for parks, water projects, high-speed rail, and stem cell research, among others. Either way, general obligation bonds must be ratified by majority vote of the state’s electorate. Unlike local general obligation bonds, the state’s electorate doesn’t automatically trigger an increased tax to repay the bonds when they approve a state general obligation bond. Article XVI of the California Constitution commits the state to repay investors from general revenues above all other claims, except payments to public education. California voters approved $38.4 billion of general obligation bonds between 1974 and 1999, but approximately $95 billion since 2000. Additionally, the Legislature enacted and voters approved Proposition 1A, which authorized $7.5 billion in bonds for water quality and supply infrastructure (AB 1471, Rendon, 2014).
Bond acts have standard provisions that authorize the Treasurer to sell a specified amount of bonds, and generally include several uniform provisions that:
Establish the state’s obligation to repay them, and pledge its full faith and credit to repayment,
Set forth issuance procedures, and link the bond act to the state’s General Obligation Bond Law,
Create a finance committee with specified membership, chaired by the State Treasurer,
Charge the committee to determine whether it is “necessary or desirable” to issue the bonds,
Add other mechanisms necessary for the Treasurer and the Department of Finance to implement the bond act, including allowing the board to re-quest a loan from the Pooled Money Investment Board to advance funds for bond-funded programs prior to the bond sale, among others.
In bond acts, the Legislature generally:
Sets forth categories of projects eligible for bond funds, such as library construction or school facility modernization,
Chooses an administrative agency to award the funds, such as the State Librarian or the State Allocation Board,
Details the criteria to guide the administrative agency’s funding in each category,
Enacts enforcement and audit provisions, and
Provide for an election to approve the bond act.
Should the voters approve the bond act, the Legislature then appropriates funds to the chosen agencies to fund projects consistent with the criteria, generally as part of the Budget Act. The Department of Finance then surveys agencies to determine need for bond funds based on a project’s readiness, and then asks the Treasurer to sell bonds in a specified amount. After the bond sale, the Department of Finance determines which bond acts and agencies receive bond proceeds.
The Legislature generally proposed, and voters enacted one bond act every two years to finance school construction from 1982-1992. After voters rejected one in 1994, there have been five school bond acts in the following total amounts:
The Public Education Facilities Bond Act, a $2.065 billion bond (AB 1168, Campbell, 1996),
The Leroy F. Greene School Facilities Construction Act of 1998, a $9.2 billion bond (SB 50, Greene),
The Kindergarten-University Public Education Facilities Bond Act of 2002, a $12.15 billion bond, (AB 16, Hertzberg),
The Kindergarten-University Public Education Facilities Bond Act of 2004, a $12.3 billion bond (AB 16, Hertzberg),
The Kindergarten-University Public Education Facilities Bond Act of 2006, a $10.4 billion bond (AB 197, Nunez).
II. K-12 School Construction Finance. School construction in California often uses the metaphor of the “three legged stool,” where the state provides bond funds, local government pays with special taxes, general obligation, Mello-Roos and other bond proceeds, and the private sector would provide funds through developer fees.
The Legislature created the State Allocation Board (SAB) in 1947 to allocate state funds for school construction. The board consists of:
Two members of the Senate appointed by the Senate Rules Committee,
Two members of the Assembly appointed by the Speaker of the Assembly
The Director of the Department of General Services,
The Director of Finance; and
The State Superintendent of Public Instruction.
SAB is responsible for determining the allocation of State resources used for the construction, modernization and maintenance of local public school facilities.
SAB is charged with the administration of the State School Facility Program, and serves as the policy level body for the programs administered by the Office of Public School Construction (OPSC).
Constructing or modernizing a school building begins with the school district, which determines the type and size of the school building needed using criteria set forth from the California Department of Education (CDE). Site selection, approval and acquisition can take longer than a year, during which time the school district should have passed a local bond or secured alternative funding for its share of the project. Without this funding, the school district cannot meet the 50 percent local funding requirement for new construction projects or the 40 percent local funding requirement for modernization projects. During this time, CDE reviews and approves the site selection and construction plans.
Districts then submit an application to the OPSC. While OPSC determines eligibility, the district can hire an architect to develop plans and specifications for the school. Once the architect completes the plans and specifications, the district sends them to the Division of State Architects DSA for processing, and districts must obtain DSA’s written approval prior to signing the project’s construction contract to obtain state funding. The district then applies to OPSC, and must include a verification of the local 50 or 40 percent share of the project cost, stamped DSA plans, and approval of the site and plans by the CDE. OPSC then presents the application to the SAB for an unfunded approval, which if granted, SAB funds as the Treasurer sells bonds, assuming bond authorization exists.
In addition to new construction and modernization funding, SAB also operates the charter school facilities program, which provides a charter school with funding to construct new facilities or to rehabilitate existing district-owned facilities for charter school use. To qualify for funding, a charter must be deemed financially sound by the California School Finance Authority and meet the eligibility criteria outlined in law. Title to the project facilities may be held by the local school district a local agency, or the charter school itself. A charter, or school district filing on behalf of a charter under this program, may receive a reservation of funding by submitting a preliminary application prior to receiving the necessary approvals from other State entities. Once those approvals are received, the preliminary apportionment must be converted to a final apportionment within four years, with a possible one-year extension.
The local share of school construction facilities is made up for with district funds, local bonds, and fees on new home construction. Like most local agencies, school districts can levy fees to fund infrastructure, but school district fees can depend on the amount of state aid for new school construction. SB 50 allowed school district governing boards that assess Level I fees, currently $3.20 per square foot, but also allowed districts to impose Level II fees under specified circumstances. Additionally, when SAB is no longer approving apportionments for new construction, districts that have been assessing Level II fees can assess Level III fees, which are double the Level II fees. However, the Legislature suspended Level III fees from January 1, 2013 until January 1, 2015, but the suspension ends unless the voters enact a new school facilities construction bond on the November, 2014 ballot (SB 1016, Committee on Budget and Fiscal Review, 2012).
III. Higher Education Facility Finance. Having historically relied on General Obligation Bonds, capital funding for higher education has been provided since 2008 in the annual Budget Act through lease revenue bonds, as the bond authority authorized for higher education in the 2006 bond has long been exhausted. The Legislature appropriates bond funds in the State Budget Act in accordance with the segments' five-year capital facility plans; however, these funds have met less than half of the segments' capital needs. In April 2014, the University of California (UC) identified four-year needs of $550 million per year, the California State University (CSU) has identified a need of $400-$500 million per year, and the California Community Colleges (CCC) estimates a need of about $35 billion over the next 10 years. The CCC Office of the Chancellor estimates that $19.1 billion of local bond funds remain available, leaving over $15.9 billion in unmet need, meaning approximately $3.2 billion is needed from a state bond every two years.
Proposed Law
Senate Bill 114 enacts the Kindergarten-University Public Education Facilities Bond Act of 2016, which places a bond of an unspecified amount on the November, 2016, ballot. The Bond funds K-12 Facilities, Community College Facilities, and University Facilities in unspecified shares. The measure incorporates standard provisions in general obligation bond law either explicitly or by reference.
SB 114 requires a school district as a condition of participating in the program to:
Comply with existing deferred maintenance provisions,
Certify that it has a long-range school facilities master plan consistent with the regional sustainable communities strategy plans established pursuant to specified Government Code provisions, and
Conduct an inventory of existing facilities and submit this information to the SAB for purposes of maintaining a statewide school facilities inventory.
The measure directs the OPSC in consultation with the CDE to recommend regulations to the SAB that provide school districts with flexibility in designing instructional facilities. SAB must also allow a school district maximum flexibility in design, new construction, and modernization of school facilities, but require any successful applicant for grants to ensure that the project incorporates high performance attributes.
The bill modifies the use of modernization funds to:
Authorize the use of a modernization apportionment for seismic mitigation purposes including related design, study, and testing costs.
Expand the definition of modernization to include “replacement” as well as modification and authorizes the use of the apportionment to demolish and construct on the existing site if the total cost of providing a new building, including land, would not protect the economic interest of the state and school district.
Make a replacement project eligible for the same grant amount as that authorized for a new construction project.
Additionally, the bill authorizes SAB to establish any additional requirements deemed necessary to protect the economic interests of the state and educational interests of children.
The measure also expands the allowable match for joint use funding to include operational costs and, if the joint use agreement specifies the partner will be responsible for 100 percent of the operational costs for the project for a term of no less than 10 years, eliminates the requirement that the partner contribute no less than 25 percent of project costs.
SB 114 requires CDE, DSA, OPSC, and the Department of Toxic Substances Control (DTSC) to develop an interagency plan, by July 1, 2016, to:
Streamline the school facility construction application, review and audit processes to reduce time and improve efficiency, and
Identify a single entity within the CDE as a full-service agency to assist school districts in navigating the school facilities construction process.
The bill contains a statement of legislature’s intent for SAB to review and revise operative regulatory language before July 1, 2016, to reduce duplicative review, approval and audit processes, and to assign priority for funding to school districts that demonstrate participation in a community-based effort to coordinate educational, developmental, family, health, and other comprehensive services through public and private partnerships and outlines the criteria that demonstrate such participation.
The measure also makes technical and conforming changes, including a severability clause.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill. According to the author, “Funding for the School Facilities Program is virtually gone and there is a backlog in applications for state assistance. At the same time there have been ongoing complaints about the current program’s complexity and design, as well as questions about whether the program created in 1998 is aligned to the state’s current policy objectives. In addition, while the state’s growing debt service is of concern, it is unclear whether local districts have the capacity to generate sufficient revenue at the local level to meet their specific facility needs. The “winding down” of the current program, and the Governor’s call for change, present an opportunity to rethink the administrative and programmatic structure of the State Facilities Program, learn from its strengths and weaknesses, and better align program design with the state’s policy objectives. SB 114 establishes the K-12 Public Education Facilities Bond Act of 2016 to provide the issuance of an unspecified amount of general obligation (GO) bonds for construction and modernization of education facilities, to take effect if approved by voters in the November 8, 2016 statewide general election. This bill would authorize an unspecified amount of bond for the purpose of exploring the appropriate amount and revenue mechanisms necessary to fund school facilities. Further dialogue should consider the following:
The context of the state’s overall debt service and infrastructure needs;
The amount of debt the state can/should be issuing for the purpose of constructing and renewing public school facilities versus other infrastructure needs; and
Local fiscal capacities and other revenue sources for meeting school district facility needs.
SB 114 advances the dialogue envisioned by the Governor and education stakeholders regarding various programmatic changes and the future of the state School Facilities Program.”
2. Work in progress. SB 114 neither contains specific authorization amounts for the bond, nor allocations for each of K-12, UC, CSU, and community colleges. As such, it’s difficult to assess the bill’s impact on state debt. However, the Governor may soon release a proposal to change the state’s school facilities program, and school bond proponents, Californians for Quality Schools, has also filed an initiative for a school bond. Advancing SB 114 as a work in progress maintains the Senate’s ability to enact a bond legislatively that reflects its priorities.
3. Sixteen tons. Debt is an essential part of almost every government, business, and personal balance sheet, as borrowers seek funds from lenders in exchange for a future commitment to repay them. However, evaluating the State’s general obligation debt is difficult; both the State Treasurer and the Legislative Analyst’s Office suggest there’s no correct amount. Instead, experts suggest that states should look at three criteria: affordability, comparability, and optimality1:
California’s debt is affordable. The State Treasurer estimates that the state will spend $6.4 billion in 2014-15, and $6.8 billion in 2015-16. However, these costs reduce the funding that is available for other priorities. Debt service is one of the fastest growing state costs, expected to reach $8.6 billion in 2017-18 assuming no new authorizations, according to the Governor’s Five-Year Infrastructure Plan. The Plan proposes no new general obligation bonds, instead relying on more limited lease-revenue bonds because of this increased debt burden.
California’s comparability to other states is less favorable, but improving. The State Treasurer’s 2014 Debt Affordability Report contains the following chart:
Debt Ratios Of 10 Most Populous States, Ranked By Ratio Of Debt To Personal Income |
||||
State |
Moody’s/
S&P/ |
Debt To Personal Income(b) |
Debt Per Capita(b) |
Debt
As A % |
Texas |
Aaa/AAA/AAA |
1.5% |
$614 |
1.2% |
Michigan |
Aa2/AA-/AA |
2.1% |
$785 |
1.9% |
North Carolina |
Aaa/AAA/AAA |
2.1% |
$806 |
1.7% |
Florida |
Aa1/AAA/AAA |
2.5% |
$1,088 |
2.5% |
Pennsylvania |
Aa3/AA/AA |
2.6% |
$1,172 |
2.5% |
Ohio |
Aa1/AA+/AA+ |
2.7% |
$1,087 |
2.5% |
Georgia |
Aaa/AAA/AAA |
2.9% |
$1,064 |
2.5% |
California |
Aa3/A/A |
5.3% |
$2,465 |
4.7% |
Illinois |
A3/A-/A- |
5.6% |
$2,580 |
4.8% |
New York |
Aa1/AA+/AA+ |
6.0% |
$3,204 |
5.2% |
|
|
|
|
|
Moody’s Median All States |
|
2.6% |
$1,054 |
2.4% |
Median For The 10 Most Populous States |
|
2.7% |
$1,076 |
2.5% |
(a) Moody’s, Standard & Poor’s, and Fitch Ratings as of August 2014 (b) Figures as reported by Moody’s in its 2013 State Debt Medians Report released May 2014. As of calendar year end 2012. © State GDP numbers have a one-year lag. |
|
|
|
|
Determining optimality or whether government is investing in the quantity and quality of public capital desired by residents, and financing the appropriate share with debt, is very difficult. LAO recommends that the Legislature consider the recently released Five-Year Infrastructure Plan as a starting point to developing a coordinated approach to infrastructure funding, and establish a committee to focus on statewide infrastructure.
4. Need. The Senate Committee on Education notes: “According to the Office of Public School Construction (OPSC), as of February 2015, approximately $200.7 million remained in bond authority in the SFP. The majority of this bond authority exists for the Seismic Mitigation and Charter School programs (about $171 million). Bond authority for new construction and modernizations programs has essentially been depleted, respectively, since July 2012 and May 2012.
Since 2009, the SAB has been making "unfunded approvals" which represented approved projects waiting to convert to funding apportionments when bonds are sold and cash becomes available. In addition, since November 1, 2012, the State Allocation Board (SAB) has maintained an "Applications Received Beyond Bond Authority" list. This list is presented to SAB for acknowledgement, but not approval. Because the applications are not fully processed for final grant determination, the project funding amounts on the list are only estimates. As of January 2015, the list indicated 116 new construction applications totaling $571 million and 200 modernizations applications of about $330 million.”
5. The good news. Investors ultimately determine a state’s creditworthiness and the interest rate paid on a bond when they bid to purchase one. However, ratings issued from the three major ratings agencies often inform investors and the public regarding the investment risk of purchasing a California general obligation bond. These ratings change over time in response to a state’s fiscal situation and economy, among other factors. Last year, ratings agencies Standard and Poor’s and Moody’s both raised its ratings, and ratings agency Fitch has increased the state’s rating twice in the last three years. However, the state still has the second lowest rating in the nation.
6. The bad news. California has a distinct problem: of the $135 billion that voters have authorized, almost $30.4 billion hasn’t been issued yet. The state hasn’t issued almost $4.5 billion in transportation bonds, and $9 billion in high speed rail bonds, because the projects haven’t yet received the needed approvals, in addition to $7.5 billion from the recent water bond. Should the voters approve new general obligation debt for school, community college, and university construction, the state would either have to sell sufficient debt to fund everything, and increase debt service costs accordingly, or choose which of these projects should be funded first. The Treasurer generally sells about $1 billion in new money bonds twice per year, so even if the Legislature enacts and the voters approve a school bond, schools may wait several years for bond funds. However, school bonds are generally spent in steady amounts over a long period of time as projects get the necessary approvals, so SB 114’s debt impacts could be less acute than other kinds of bonds.
7. Local bonds. Former Treasurer Bill Lockyer wrote in his April 28th, 2014, weekly update that some $30 billion of K-12 bonds approved by local voters that school districts have yet to sell, questioning the need for a State bond measure. The update notes that were provided to the Board in January, 2014, placed the total statewide construction/modernization need through 2021 at $21.03 billion. That’s about $9 billion less than the amount of unused local bonds. Proponents respond by stating that many districts have seen assessed value declines prevent districts that prevent them from selling bonds up to currently authorized amounts given tax limits. Proponents also add that the $30 billion is not evenly distributed: many districts don’t have the political will or tax base to approve a local bond, necessitating state action.
8. Upstairs, downstairs. The Senate Committee on Education also notes: “Amid concerns about the complexity and structure of the current program and the state's increasing debt service obligations, the Governor has proposed significant changes to the way school facilities are funded. In order to allow districts to better meet their facilities needs at the local level, the Governor's 2015-16 budget proposes to:
Expand revenue generation tools at the local level by expanding local funding capacity and increasing caps on local bond indebtedness;
Restructure developer fees to set one level for all projects at a level between existing Level II and Level III fees subject to local negotiation; and
Expand allowable uses of Routine Restricted Maintenance Funding to authorize the pooling of these funds over multiple years for modernization and new construction projects.
The Governor has also noted that he is prepared to engage with the Legislature and education stakeholders to shape a future state program that is focused on districts with the greatest need, including communities with low property values and few borrowing options, as well as overcrowded schools.”
Support and Opposition
(4/17/15)
Support: American Federation of State, County, and Municipal Employees; California Association of School Business Officials, Riverside County Superintendent of Schools.
Opposition: Unknown.
-- END --
1 Robert Wassmer and Ronald Fisher “Debt Burdens of California State and Local Governments: Past, Present and Future.” As requested and supported by the California Debt and Investment Advisory Commission. July 2011.
SB 114 (Liu) Page 7 of 7
SENATE COMMITTEE ON EDUCATION
Senator Carol Liu, Chair
2015 - 2016 Regular
Bill No: SB 114
Author: |
Liu |
||
Version: |
March 19, 2015 Hearing Date: March 25, 2015 |
||
Urgency: |
No |
Fiscal: |
Yes |
Consultant: |
Kathleen Chavira |
||
Subject: Education facilities: Kindergarten-Grade 12 Public Education Facilities Bond …………..Act of 2016
NOTE: This bill has been referred to the Committees on Education and Governance …………and Finance. A “do pass” motion should include referral to the Committee on …………Governance and Finance.
SUMMARY
This bill makes changes to the existing School Facility Program and authorizes the Kindergarten-Grade 12 Public Education Facilities Bond Act of 2016 to provide for the issuance of an unspecified amount of general obligation bonds for construction and modernization of education facilities to become effective if approved by voters at the November 8, 2016 statewide general election.
BACKGROUND
Existing law establishes the School Facility Program (SFP) under which the state provides general obligation bond funding for various school construction projects, including new construction, modernization, joint-use facilities, and programs to specifically address the construction needs of overcrowded schools, charter schools, career technical education facilities, and seismic mitigation.
(Education Code § 17070.10 – 17070.99)
The last statewide general obligation bond, Proposition 1D was approved by voters in November 2006. Proposition 1D, authorized $7.3 billion for K-12 education facilities and $3.087 billion for higher education facilities and allocated specified amounts from the sale of these bonds for modernization, new construction, charter schools, career technical education facilities, joint use, projects for new construction on severely overcrowded schoolsites, and high performance incentive grants to promote energy efficient designs and materials. In addition, portions of the amounts allocated for new construction and modernization were authorized for purposes of funding smaller learning communities and high schools and for seismic retrofit projects.
(EC §101010-101031)
ANALYSIS
This bill establishes the K-12 Public Education Facilities Bond Act of 2016 to provide for the issuance of an unspecified amount of general obligation (GO) bonds for construction and modernization of education facilities, to take effect only if approved by voters. More specifically it:
Requires submission of the Act to voters at the November 8, 2016, statewide general election.
As a condition of participation in the program, requires a school district to:
Comply with existing deferred maintenance provisions.
Certify that it has a long-range school facilities master plan consistent with the regional sustainable communities strategy plans established pursuant to specified Government Code provisions.
Conduct an inventory of existing facilities and submit this information to the SAB for purposes of maintaining a statewide school facilities inventory.
Requires the Office of Public School Construction (OPSC), in consultation with the California Department of Education (CDE), to recommend regulations to the SAB that provide school districts with flexibility in designing instructional facilities.
Requires that the SAB provide a school district with the maximum flexibility in design, new construction, and modernization of school facilities, and further:
Requires that an applicant who receives a new construction grant ensure that the project incorporates high performance attributes.
Modifies the use of modernization funds in the following ways:
Authorizes the use of a modernization apportionment for seismic mitigation purposes including related design, study, and testing costs.
Requires that an applicant who receives a modernization grant ensure that the project incorporates high performance attributes.
Expands the definition of modernization to include “replacement” as well as modification and authorizes the use of the apportionment to demolish and construct on the existing site if the total cost of providing a new building, including land, would not protect the economic interest of the state and school district.
Makes a replacement project eligible for the same grant amount as that authorized for a new construction project.
Authorizes the SAB to establish any additional requirements deemed necessary to protect the economic interests of the state and educational interests of children.
Expands the allowable match for joint use funding to include operational costs and, if the joint use agreement specifies the partner will be responsible for 100 percent of the operational costs for the project for a term of no less than 10 years, eliminates the requirement that the partner contribute no less than 25 percent of project costs.
Requires the California Department of Education (CDE), Division of the State Architect (DSA), Office of Public School Construction (OPSC), and Department of Toxic Substances Control (DTSC) to develop an interagency plan, by July 1, 2016, to:
Streamline the school facility construction application, review and audit processes to reduce time and improve efficiency.
Identify a single entity within the CDE as a full-service agency to assist school districts in navigating the school facilities construction process.
Declares the Legislature’s intent that the State Allocation Board (SAB) review and revise operative regulatory language before July 1, 2016, to reduce duplicative review, approval and audit processes.
Requires the board to assign priority for funding to school districts that demonstrate participation in a community-based effort to coordinate educational, developmental, family, health, and other comprehensive services through public and private partnerships and outlines the criteria that demonstrate such participation.
Makes the following technical changes:
Repeals provisions requiring an evaluation of the construction and modernization costs of small high schools.
Repeals provisions establishing eligibility calculation adjustments on the basis of multi-track year-round operation.
Repeals other obsolete eligibility calculation adjustments.
Corrects an erroneous cross-reference.
Makes various technical changes.
STAFF COMMENTS
Need for the bill. Funding for the School Facilities Program is virtually gone and there is a backlog in applications for state assistance. At the same time there have been ongoing complaints about the current program’s complexity and design, as well as questions about whether the program created in 1998 is aligned to the state’s current policy objectives. The “winding down” of the current program, and the Governor’s call for change (see staff comment #3), present an opportunity to rethink the administrative and programmatic structure of the State Facilities Program, learn from its strengths and weaknesses, and better align program design with the state’s policy objectives. This bill begins that process.
Current status of the School Facilities Program (SFP). According to the Office of Public School Construction (OPSC), as of February 2015, approximately $200.7 million remained in bond authority in the SFP. The majority of this bond authority exists for the Seismic Mitigation and Charter School programs (about $171 million). Bond authority for new construction and modernizations programs has essentially been depleted, respectively, since July 2012 and May 2012.
Since 2009, the SAB has been making "unfunded approvals" which represented approved projects waiting to convert to funding apportionments when bonds are sold and cash becomes available. In addition, since November 1, 2012, the State Allocation Board (SAB) has maintained an "Applications Received Beyond Bond Authority" list. This list is presented to SAB for acknowledgement, but not approval. Because the applications are not fully processed for final grant determination, the project funding amounts on the list are only estimates. As of January 2015, the list indicated 116 new construction applications totaling $571 million and 200 modernizations applications of about $330 million.
Related budget activity. Amid concerns about the complexity and structure of the current program and the state's increasing debt service obligations, the Governor has proposed significant changes to the way school facilities are funded. In order to allow districts to better meet their facilities needs at the local level, the Governor's 2015-16 budget proposes to:
Expand revenue generation tools at the local level by expanding local funding capacity and increasing caps on local bond indebtedness;
Restructure developer fees to set one level for all projects at a level between existing Level II and Level III fees subject to local negotiation; and
Expand allowable uses of Routine Restricted Maintenance Funding to authorize the pooling of these funds over multiple years for modernization and new construction projects.
The Governor has also noted that he is prepared to engage with the Legislature and education stakeholders to shape a future state program that is focused on districts with the greatest need, including communities with low property values and few borrowing options, as well as overcrowded schools.
Debt Service. According to a recent report by the Legislative Analyst Office (LAO), Addressing California's Key Liabilities, as of April 1, 2014, the state has $75.1 billion in general obligation bonds, and about $10.2 billion in lease revenue bonds (10 percent of which is for the California State University) outstanding. This does not include $31 billion in general obligation and lease revenue bonds authorized but not yet sold. According to the Legislative Analyst’s Office (LAO), debt service is expected to make up about 6 percent of the General Fund for the next few years, if no new bonds are issued, as General Fund (GF) revenues and debt service are expected to grow at similar rates. The LAO noted that bond payments are the first funding priority of the GF. The debt service must be paid annually, even if it means that other spending priorities (including education, health, social services, and prisons) have to be cut or taxes have to be raised in order to balance the budget.
Since 1998, voters have approved approximately $35 billion in statewide general obligation bonds to construct or renovate K-12 school facilities and almost $10 billion for higher education facilities. This bill would authorize an unspecified amount of bonds for this purpose. The Committee may wish to consider:
What is the fiscal capacity of the state to issue yet more debt in order to meet its infrastructure needs?
How much of that debt can/should the state be issuing for purposes of constructing and renewing public school facilities versus other infrastructure needs?
Are there other sources of revenue for meeting school district facility needs? What is the fiscal capacity at the local level for this purpose?
How much of the overall need can realistically be met at the local level?
This bill has also been referred to the Committee on Governance and Finance which has jurisdiction over legislation pertaining to state and local government revenue mechanisms. The Governance and Finance Committee may more appropriately consider this bill in the context of the state's overall debt service and infrastructure needs.
Related Joint Informational hearing. On February 18, 2015, this Committee held a joint informational hearing with the Budget Subcommittee on Education on K-12 SCHOOL FACILITY PROGRAM: HISTORY, CURRENT STATUS, AND FUTURE OPTIONS to review the Governor’s school facilities proposals. Among other things, the Committee heard testimony from several participants about the need to simplify the current program processes and regulations, the need for a “one-stop-shop” to assist in navigating the program, and the need for greater flexibility in design of school facilities as well as the use of funding to incentivize and support joint use projects and community schools. Additionally, while the state’s growing debt service is of concern, it was unclear whether local districts have the capacity to generate sufficient revenue at the local level to meet their ongoing facility needs for deferred maintenance, modernization and new construction. This bill begins to respond to some of these issues through the proposal of various programmatic changes.
Related and prior legislation. There have been several attempts to authorize education facility construction bonds since 2009. A summary of current and prior efforts includes the following:
RELATED LEGISLATION
AB 148 (Holden, 2015) declares the Legislature’s intent to place a $1.1 billion bond measure before voters in 2016 to fund modernization and new construction of school facilities.
AB 1088 (O’Donnell, 2015) declares the Legislature’s intent to enact legislation to create a Kindergarten-University Public Education Facilities Bond Act, to be placed before voters in an as yet to be specified year, and provide for the issuance of an unspecified amount of general obligation bonds for construction and modernization of education facilities. The bill also deletes a number of obsolete School Facility Program provisions.
AB 1433 (Gray, 2015) authorizes a Higher Education facilities: Recommitment to Higher Education Bond Act of 2016 to provide for the issuance of an unspecified amount of general obligation bonds to provide aid to 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.
PRIOR LEGISLATION
AB 2235 (Buchanan, 2014) made changes to the School Facility Program and authorized the Kindergarten-University Public Education Facilities Bond Act of 2014 to provide for the issuance of $4.3 billion in general obligation (GO) bonds for construction and modernization of education facilities, to become effective only if approved by voters at the November 4, 2014, statewide general election. Some provisions of AB 2235 were similar to those in this bill. AB 2235 awaited action on the Senate Floor but was subsequently moved to the Inactive File.
AB 41 (Buchanan, 2013) expressed the Legislature's intent to place a Kindergarten-University facilities bond on the 2014 ballot. AB 41 was held by the author in the Assembly Education Committee.
SB 45 (Corbett, 2013) expressed 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, 2013) expressed the Legislature's intent to place a Kindergarten-University facilities bond on the 2014 ballot. SB 301 was held by the author in the Senate Rules Committee.
AB 331 (Brownley, 2011) expressed the Legislature's intent to place a Kindergarten-University facilities bond on the 2012 ballot. AB 331 was held in the Assembly Appropriations Committee in 2012.
AB 822 (Block, 2011) would have placed a higher education facilities bond on the November 2012 ballot. AB 822 was held in the Assembly Appropriations Committee in 2012.
AB 220 (Brownley, 2009) would have placed a $6.1 billion Kindergarten-University facilities bond on the November 2010 ballot. AB 220 was held in the Senate Appropriations Committee.
SB 271 (Ducheny, 2009) would have placed an $8.6 billion higher education facilities bond on the November 2010 ballot. SB 271 was held in the Senate Appropriations Committee.
SUPPORT
California Association of School Business Officials (CASBO)
OPPOSITION
None received.
-- END --
Discussed in Hearing
5MIN
Senate Floor
17MIN
Senate Standing Committee on Governance and Finance
25MIN
Senate Standing Committee on Education
Bill Author
Bill Co-Author(s):