BILL NUMBER: AB 16 CHAPTERED
BILL TEXT
CHAPTER 33
FILED WITH SECRETARY OF STATE APRIL 29, 2002
APPROVED BY GOVERNOR APRIL 26, 2002
PASSED THE SENATE APRIL 4, 2002
PASSED THE ASSEMBLY MARCH 21, 2002
CONFERENCE REPORT NO. 1
PROPOSED IN CONFERENCE MARCH 20, 2002
AMENDED IN SENATE AUGUST 27, 2001
AMENDED IN SENATE AUGUST 23, 2001
AMENDED IN ASSEMBLY MAY 31, 2001
INTRODUCED BY Assembly Members Hertzberg, Wesson, Leonard,
Firebaugh, Goldberg, and Strom-Martin and Senators Alpert and Chesbro
(Coauthors: Assembly Members Alquist, Aroner, Calderon, Cardenas,
Cardoza, Cedillo, Chan, Chavez, Chu, Cohn, Corbett, Correa, Diaz,
Dutra, Frommer, Havice, Horton, Jackson, Keeley, Kehoe, Koretz, Liu,
Longville, Lowenthal, Matthews, Migden, Nakano, Nation, Negrete
Mcleod, Oropeza, Robert Pacheco, Papan, Pavley, Reyes, Salinas,
Shelley, Simitian, Steinberg, Thomson, Vargas, Washington, Wayne,
Wiggins, and Wright)
Coauthors: Senators Alarcon, Escutia, Karnette, Kuehl, Machado,
Murray, O'Connell, Soto, Torlakson, and Vincent)
DECEMBER 4, 2000
An act to amend Sections 17070.15, 17070.35, 17070.40, 17070.43,
17070.51, 17070.65, 17070.70, 17071.33, 17071.75, 17072.10, 17072.25,
17074.10, 17074.15, 17075.10, 17075.15, 17076.10, 17088.2, 17262,
and 17280 of, to add Sections 17070.95, 17074.16, 17074.26, 17077.35,
17251.5, and 17280.5 to, to amend and renumber Section 17077.10 of,
to amend and renumber the heading of Article 10 (commencing with
Section 17077.10) of Chapter 12.5 of Part 10 of, to add Article 10.6
(commencing with Section 17077.40) to Chapter 12.5 of Part 10 of, to
add Article 11 (commencing with Section 17078.10) to Chapter 12.5 of
Part 10 of, and to add Part 68.1 (commencing with Section 100600) and
Part 68.2 (commencing with Section 100800) to, the Education Code,
to amend Sections 15490 and 65995.7 of the Government Code, and to
amend Section 51455 of, and to add Sections 51451.5 and 51453 to, the
Health and Safety Code, relating to education facilities, and by
providing the funds necessary therefor through an election for the
issuance and sale of bonds of the State of California and for the
handling and disposition of those funds, making an appropriation
therefor, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 16, Hertzberg. Education facilities: Kindergarten-University
Public Education Facilities Bond Acts of 2002 and 2004.
(1) Existing law, the Class Size Reduction Kindergarten-University
Public Education Facilities Bond Act of 1998, provides for the
issuance, pursuant to the State General Obligation Bond Law, of state
general obligation bonds in an amount not to exceed $9,200,000,000,
exclusive of refunding bonds, to provide aid to school districts,
county superintendents of schools, and county boards of education in
accordance with prescribed provisions, including, but not limited to,
the Leroy F. Greene State School Facilities Act of 1998.
This bill would make certain adjustments in the facilities funding
mechanism, including, but not limited to, provisions relating to
multitrack year-round schools, supplemental apportionments for small
schools, costs adjustments for projects in densely populated urban
areas, the priority ranking mechanism, the state to local cost share
for modernization, Field Act compliance for leased or purchased
buildings, energy efficiency grant adjustments, older building
modernization costs, hardship eligibility, and critically overcrowded
schools, making some of these changes operative only for projects
funded pursuant to the proceeds of state bonds approved by the voters
after January 1, 2002. The bill would also establish the 2002 and
2004 state school facilities funds, for receipt of the proceeds of
bonds approved by the voters for these purposes.
(2) This bill would enact the Kindergarten-University Public
Education Facilities Bond Act of 2002, to become operative only if
approved by the voters at the November 5, 2002, statewide general
election, and would provide for its submission to the voters at that
election.
The bill would also enact the Kindergarten-University Public
Education Facilities Bond Act of 2004, to become operative only if
approved by the voters at the 2004 direct primary election, and would
provide for its submission to the voters at that election. The bill
would further enact a second Kindergarten-University Public
Education Facilities Bond Act of 2004, to be submitted to the voters
at the November 2, 2004, statewide general election only if the first
2004 bond act is not approved by the voters.
The bond acts, if approved by the voters, would provide for the
issuance of state general obligation bonds in an amount not to exceed
a combined total of $25,350,000,000, exclusive of refunding bonds,
consisting of a total of $13,050,000,000, exclusive of refunding
bonds, for the 2002 bond act and a total of $12,300,000,000,
exclusive of refunding bonds, for either of the 2004 bond acts. The
bill would provide that, of this amount, for each bond act, a
prescribed amount would be deposited in the 2002 State School
Facilities Fund and the 2004 State School Facilities Fund, as
appropriate, to provide aid to school districts, county
superintendents of schools, and county boards of education, and a
prescribed amount would be deposited in the 2002 Higher Education
Capital Outlay Bond Fund and the 2004 Higher Education Capital Outlay
Bond Fund, as appropriate, which would be established by this bill,
to provide aid for California public higher education facilities.
(3) Under existing law, the State Allocation Board consists of the
Director of Finance, the Director of General Services, and the
Superintendent of Public Instruction. The board also includes 2
Members of the Senate, appointed by the Senate Committee on Rules,
and 2 Members of the Assembly, appointed by the Speaker of the
Assembly.
This bill would add to the board a person appointed by the
Governor and an additional Member of the Senate and an additional
Member of the Assembly, appointed as specified. The bill would
specify that 2 of the Senators would belong to the majority party and
one of the Senators would belong to the minority party, and that 2
of the Members of the Assembly would belong to the majority party and
one of the Members of the Assembly would belong to the minority
party.
(4) Existing law authorizes a school district to levy a fee,
charge, dedication, or other requirement against any construction
within the boundaries of the school district for the purpose of
funding the construction or reconstruction of school facilities. The
law authorizes a school district to increase the levy, as
prescribed, if state funds for new school facility construction are
not available, as defined.
This bill would suspend the operation of the provision authorizing
the increased levy until the 2002 statewide general election, or if
bonds are approved at the 2002 statewide general election, until the
2004 direct primary election. This bill would exclude the
availability of certain funds for the purpose of making the
determination as to whether state school facility funds are
available. The bill would also establish the Homebuyer Down Payment
Assistance Program to provide assistance in payment of the school
facilities fee on affordable housing development.
(5) This bill would appropriate the sum of $651,289,000, from the
Public Buildings Construction Fund to the California State Library,
the University of California, the California State University and the
California Community Colleges for construction of education
facilities, including, but not limited to, library facilities,
pursuant to a prescribed schedule, and would authorize the State
Public Works Board to issue related lease-revenues bonds.
(6) This bill would declare that it is to take effect immediately
as an urgency statute.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17070.15 of the Education Code is amended to
read:
17070.15. 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) "Department" means the Department of General Services.
(e) "Committee" means the State School Building Finance Committee
established pursuant to Section 15909.
(f) "Modernization" means any modification 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.
(g) "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.
(h) "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.
(i) "Fund" means the 1998 State School Facilities Fund, the 2002
State School Facilities Fund, or the 2004 State School Facilities
Fund, as the case may be, established pursuant to Section 17070.40.
(j) "County fund" means a county school facilities fund
established pursuant to Section 17070.43.
(k) "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.
(l) "School building capacity" means the capacity of a school
building to house pupils.
SEC. 2. Section 17070.35 of the Education Code is amended to read:
17070.35. (a) In addition to all other powers and duties as are
granted to the board by this chapter, other statutes, or the
California Constitution, the board shall do all of the following:
(1) Adopt rules and regulations, pursuant to the rulemaking
provisions of the Administrative Procedure Act, Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, for the administration of this chapter.
However, the board shall have no authority to set the level of the
fees of any architect, structural engineer, or other design
professional on any project. The initial regulations adopted
pursuant to this chapter shall be adopted as emergency regulations,
and the circumstances related to the initial adoption are hereby
deemed to constitute an emergency for this purpose. The initial
regulations adopted pursuant to this chapter shall be adopted by
November 4, 1998. If the initial regulations are not adopted by that
date, the board shall report to the Legislature by that date,
explaining the reasons for the delay.
(2) Establish and publish any procedures and policies in
connection with the administration of this chapter as it deems
necessary.
(3) Determine the eligibility of school districts to receive
apportionments under this chapter.
(4) Apportion funds to eligible school districts under this
chapter.
(b) The board shall review and amend its regulations as necessary
to adjust its administration of this chapter to conform with the act
that amended this section to add this subdivision. Regulations
adopted pursuant to this subdivision shall be adopted by November 5,
2002, and shall be adopted as emergency regulations in accordance
with the rulemaking provisions of the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code). The adoption of any emergency
regulation pursuant to this subdivision filed with the Office of
Administrative Law shall be deemed to be an emergency and necessary
for the immediate preservation of the public peace, health and
safety, or general welfare. Notwithstanding subdivision (e) of
Section 11346.1 of the Government Code, any emergency regulation
adopted pursuant to this section shall remain in effect for no more
than 365 days unless the board has complied with Sections 11346.2 to
11348, inclusive, of the Government Code.
SEC. 3. 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 State Allocation 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 State Allocation 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 State Allocation 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.
SEC. 4. Section 17070.43 of the Education Code is amended to read:
17070.43. (a) A county school facilities fund is hereby
established in the county treasury within each county for each school
district in the county.
(b) The board may from time to time authorize the Controller to
transfer any funds that the board may deem necessary from the 1998
State School Facilities Fund, the 2002 State School Facilities Fund,
or the 2004 State School Facilities Fund, as the case may be, to the
corresponding county fund in the county treasury. Interest on all
funds deposited in the county fund shall be retained in that fund.
(c) Funds may be expended from the county fund by the recipient
school district for qualifying school facilities expenditures set
forth in Sections 17072.35 and 17074.25.
SEC. 5. Section 17070.51 of the Education Code is amended to read:
17070.51. (a) If any certified eligibility or funding application
related information is found to have been falsely certified by
school districts, architects or design professionals, hereinafter
referred to as a material inaccuracy, the Office of Public School
Construction shall notify the board.
(b) The board shall impose the following penalties if an
apportionment and fund release has been made based upon information
in the project application or related materials that constitutes a
material inaccuracy.
(1) Pursuant to a repayment schedule approved by the board of no
more than five years, the school district shall repay to the board,
for deposit into the 1998 State School Facilities Fund, the 2002
State School Facilities Fund, or the 2004 State School Facilities
Fund, as the case may be, an amount proportionate to the additional
funding received as a result of the material inaccuracy including
interest at the rate paid on moneys in the Pooled Money Investment
Account or at the highest rate of interest for the most recent issue
of state general obligation bonds as established pursuant to the
Chapter 4 (commencing with Section 16720), of Part 3 of Division 4 of
Title 2 of the Government Code, whichever is greater.
(2) The board shall prohibit the school district from
self-certifying certain project information for any subsequent
applications for project funding for a period of up to five years
following the date of the finding of a material inaccuracy or until
the district's repayment of the entire amount owed under paragraph
(1). Although a school district that is subject to this paragraph
may not self-certify, the school district shall not be prohibited
from applying for state funding under this chapter. The board shall
establish an alternative method for state or independent
certification of compliance that shall be applicable in these cases.
The process shall include, but shall not be limited to, procedures
for payment by the school district of any increased costs associated
with the alternative certification process.
(c) For school districts found to have provided material
inaccuracies when a funding apportionment has occurred, but no fund
release has been made, the board shall direct its staff to reduce the
apportionment as necessary to reflect the actual nature of the
project and to disregard the inaccurate information or material, and
paragraph (2) of subdivision (b) shall apply.
(d) For those school districts found to have provided material
inaccuracies when no funding apportionment or fund release has been
made, the inaccurate information or materials shall not be
considered, and paragraph (2) of subdivision (b) shall apply. The
project may continue if the application, minus the inaccurate
materials, is still complete.
SEC. 6. Section 17070.65 of the Education Code is amended to read:
17070.65. From any moneys in one of the funds established
pursuant to Section 17070.40, as appropriate, and approved for this
purpose in the annual Budget Act, the board shall make available to
the Director of General Services the amounts that the board
determines necessary for the Department of General Services to
provide the assistance, pursuant to this chapter, required pursuant
to Section 15504 of the Government Code to facilitate the
construction, modernization, reconstruction, or alteration of, or
addition to, school buildings.
SEC. 7. Section 17070.70 of the Education Code is amended to read:
17070.70. (a) Title, including, but not limited to, any leasehold
interest as set forth in subdivision (c), to all property acquired,
constructed, or improved with funds made available under this chapter
shall be held by the school district to which the board grants the
funds. Title, as defined solely for the purpose of a school district'
s eligibility to receive funds from the board pursuant to this
chapter shall include an order for prejudgment possession issued by a
court in an eminent domain proceeding.
(b) The applicant school district shall comply with all laws
pertaining to the construction, reconstruction, or alteration of, or
addition to, school buildings.
(c) Notwithstanding Section 17009.5, construction or modernization
funds made available pursuant to this chapter may be expended upon
property that is leased to the applicant school district only if the
project qualified for and received approval by the board, prior to
November 4, 1998, pursuant to Article 4 (commencing with Section
17055), of Chapter 12.
SEC. 8. Section 17070.95 is added to the Education Code, to read:
17070.95. As a part of its application for large construction and
modernization projects, a school district shall certify, in
consultation with the career technical education advisory committee
established pursuant to Section 8070, that it has considered the need
for vocational and career technical facilities to adequately meet
its program needs consistent with Section 51224, subdivision (b) of
Section 51225.3, and Section 52336.1. The board shall adopt
regulations necessary for administration of this section.
SEC. 9. Section 17071.33 of the Education Code is amended to read:
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. 10. Section 17071.75 of the Education Code is amended to
read:
17071.75. After a one-time initial report of existing school
building capacity has been completed, a school district's ongoing
eligibility for new construction funding shall be determined by
making all of the following calculations:
(a) Each school district that applies to receive funding for new
construction shall calculate enrollment projections for the fifth
year beyond the fiscal year in which the application is made.
Projected enrollment shall be determined by utilizing the cohort
survival enrollment projection system, as defined and approved by the
board. The board may supplement the cohort survival enrollment
projection by the number of unhoused pupils that are anticipated as a
result of dwelling units proposed pursuant to approved and valid
tentative subdivision maps.
(b) Add the number of pupils that may be adequately housed in the
existing school building capacity of the applicant district as
determined pursuant to Article 2 (commencing with Section 17071.10)
to the number of pupils for which facilities were provided from any
state or local funding source after the existing school building
capacity was determined pursuant to Article 2 (commencing with
Section 17071.10). For this purpose, the total number of pupils for
which facilities were provided shall be determined using the pupil
loading formula set forth in Section 17071.25.
(c) Subtract the number of pupils pursuant to subdivision (b) from
the number of pupils determined pursuant to subdivision (a).
(d) The calculations required to establish eligibility under this
article shall result in a distinction between the number of existing
unhoused pupils and the number of projected unhoused pupils.
(e) Apply the increase or decrease resulting from the difference
between the most recent report made pursuant to Section 42268, and
the report used in determining the school district's baseline
capacity pursuant to subdivision (a) of Section 17071.25.
(f) For a school district with fewer than 2,501 units of average
daily attendance, the eligibility determined pursuant to this section
shall be fixed for a period of three years from the date of the
approval of eligibility by the board.
SEC. 11. Section 17072.10 of the Education Code is amended to
read:
17072.10. (a) The board shall determine the applicant's maximum
total new construction grant eligibility by multiplying the number of
unhoused pupils calculated pursuant to Article 3 (commencing with
Section 17071.75) in each school district with an approved
application for new construction, by the per-unhoused-pupil grant as
follows:
(1) Five thousand two hundred dollars ($5,200) for elementary
school pupils.
(2) Five thousand five hundred dollars ($5,500) for middle school
pupils.
(3) Seven thousand two hundred dollars ($7,200) for high school
pupils.
(b) The board shall annually adjust the per-unhoused-pupil
apportionment to reflect construction cost changes, as set forth in
the statewide cost index for class B construction as determined by
the board.
(c) The board may adopt regulations to be effective until July 1,
2000, that adjust the amounts identified in this section for
qualifying individuals with exceptional needs, as defined in Section
56026. The regulations shall be amended after July 1, 2000, in
consideration of the recommendations provided pursuant to Section
17072.15.
(d) The board may establish a single supplemental
per-unhoused-pupil grant in addition to the amounts specified in
subdivision (a) based on the statewide average marginal difference in
costs in instances where a project requires multilevel school
facilities due to limited acreage. The district's application shall
demonstrate that a practical alternative site is not available.
(e) For a school district having an enrollment of 2,500 or less
for the prior fiscal year, the board may approve a supplemental
apportionment of up to seven thousand five hundred dollars ($7,500)
for any new construction project assistance. The amount of the
supplemental apportionment authorized pursuant to this subdivision
shall be adjusted in 2001 and every year thereafter by an amount
equal to the percentage adjustment for class B construction.
SEC. 12. Section 17072.25 of the Education Code is amended to
read:
17072.25. (a) The board shall adopt regulations to develop a
mechanism to rank approved applications for new construction funding.
This mechanism shall be used to determine the priority of approved
applications when either of the following conditions are met:
(1) The total state funds necessary for funding all approved
projects pursuant to this chapter exceed the total state funds in the
fund for allocation pursuant to this chapter.
(2) The actual amount of unallocated proceeds of state bonds
available on or after July 1, 2000, for new construction for the
purposes of this chapter is at three hundred million dollars
($300,000,000).
(b) The ranking mechanism shall allocate priority points based
upon the percentages of currently and projected unhoused pupils
relative to the total population of the applicant district or
attendance area and the total number of currently and projected
unhoused pupils in an applicant district or attendance area.
(c) The board may award priority points based on other factors
that in its judgment result in the most equitable distribution of
resources among applicants. The additional factors may not
constitute greater than a 10-percent weight in the overall priority
ranking.
(d) This section shall apply only to projects funded with the
proceeds of state bonds approved by the voters prior to January 1,
2002.
SEC. 13. Section 17074.10 of the Education Code is amended to
read:
17074.10. (a) The board shall determine the total funding
eligibility of a school district for modernization funding by
multiplying the following amounts by each pupil of that grade level
housed in permanent school buildings that are at least 25 years old
or portable classrooms that are at least 20 years old, and that have
not been previously modernized with state funding:
(1) Two thousand two hundred forty-six dollars ($2,246) for each
elementary pupil.
(2) Two thousand three hundred seventy-six dollars ($2,376) for
each middle school pupil.
(3) Three thousand one hundred ten dollars ($3,110) for each high
school pupil.
(b) The board shall annually adjust the factors set forth in
subdivision (a) according to the adjustment for inflation set forth
in the statewide cost index for class B construction, as determined
by the board.
(c) The board may adopt regulations to be effective until July 1,
2000, that adjust the amounts identified in this section for
qualifying individuals with exceptional needs, as defined in Section
56026. The regulations shall be amended after July 1, 2000, in
consideration of the recommendations provided pursuant to Section
17072.15.
(d) It is the intent of the Legislature that the amounts provided
pursuant to this article for school modernization do not include
funding for administrative and overhead costs.
(e) For a school district having an enrollment of 2,500 or less
for the prior fiscal year, the board may approve a supplemental
apportionment of up to two thousand five hundred dollars ($2,500) for
any modernization project assistance. The amount of the
supplemental apportionment shall be adjusted in 2001 and every year
thereafter by an amount equal to the percentage adjustment for class
B construction.
SEC. 14. Section 17074.15 of the Education Code is amended to
read:
17074.15. (a) The board shall release disbursements to school
districts with approved applications for modernization, to the extent
state funds are available for the state's 80-percent share, and the
school district has provided its 20-percent local match. Subject to
the availability of funds, the board shall apportion funds to an
eligible school district only upon the approval of the project by the
Department of General Services pursuant to the Field Act, as defined
in Section 17281, including, but not limited to, a project that
complies with the Field Act by complying with Section 17280.5, and
evidence that the certification by the school district that the
required 20-percent matching funds from local sources have been
expended by the district for the project, or have been deposited in
the county fund or will be expended by the district by the time of
completion of the project, and evidence that the district has entered
into a binding contract for the completion of that project. If
state funds are insufficient to fund all qualifying school districts,
the board shall fund all qualifying school districts in the order in
which the application for funding was approved by the board.
(b) This section shall apply only to an application filed on or
before March 15, 2002, regardless of the source of state bond
funding.
SEC. 15. Section 17074.16 is added to the Education Code, to read:
17074.16. (a) The board shall release disbursements to school
districts with approved applications for modernization, to the extent
state funds are available for the state's 60-percent share, and the
school district has provided its 40-percent local match. Subject to
the availability of funds, the board shall apportion funds to an
eligible school district only upon the approval of the project by the
Department of General Services pursuant to the Field Act, as defined
in Section 17281, including, but not limited to, a project that
complies with the Field Act by complying with Section 17280.5, and
evidence that the certification by the school district that the
required 40-percent matching funds from local sources have been
expended by the district for the project, or have been deposited in
the county fund or will be expended by the district by the time of
completion of the project, and evidence that the district has entered
into a binding contract for the completion of that project. If
state funds are insufficient to fund all qualifying school districts,
the board shall fund all qualifying school districts in the order in
which the application for funding was approved by the board.
(b) This section shall apply only to an application that was filed
after March 15, 2002.
SEC. 16. Section 17074.26 is added to the Education Code, to read:
17074.26. The board shall adopt regulations to adjust the
per-pupil amounts set forth in Section 17074.14 for modernization
projects for school buildings that are 50 years old or older based
upon the higher costs associated with modernizing older buildings.
SEC. 17. Section 17075.10 of the Education Code is amended to
read:
17075.10. (a) A school district may apply for hardship assistance
in cases of extraordinary circumstances.
(b) A school district applying for hardship state funding under
this article shall comply with either paragraph (1) or (2).
(1) Demonstrate both of the following:
(A) That due to extreme financial, disaster-related, or other
hardship the school district has unmet need for pupil housing.
(B) That the school district is not financially capable of
providing the matching funds otherwise required for state
participation, that the district has made all reasonable efforts to
impose all levels of local debt capacity and development fees, and
that the school district is, therefore, unable to participate in the
program pursuant to this chapter except as set forth in this article.
(2) Demonstrate that due to unusual circumstances that are beyond
the control of the district, excessive costs need to be incurred in
the construction of school facilities.
(c) The board shall review the increased costs that may be
uniquely associated with urban construction and shall adjust the
per-pupil grant for new construction, or modernization, hardship
applications as necessary to accommodate those costs. The board
shall adopt regulations setting forth the standards, methodology, and
a schedule of allowable adjustments, for the urban adjustment factor
established pursuant to this subdivision.
SEC. 18. Section 17075.15 of the Education Code is amended to
read:
17075.15. (a) From funds available from any bond act for the
purpose of funding facilities for school districts with a financial
hardship, the board may provide other construction, modernization, or
relocation assistance as set forth in this chapter or Chapter 14
(commencing with Section 17085) to the extent that severe
circumstances may require, and may adjust or defer the local
financial participation, as pupil health and safety considerations
require to the extent that bond act funds are provided for this
purpose.
(b) The board shall adopt regulations for determining the amount
of funding that may be provided to a district, and the eligibility
and prioritization of funding, under this article.
(c) The regulations shall define the amount, and sources, of
financing that the school district could reasonably provide for
school facilities as follows:
(1) Unencumbered funds available in all facility accounts in the
school district including, but not limited to, fees on development,
redevelopment funds, sale proceeds from surplus property, funds
generated by certificates of participation for facility purposes,
bond funds, federal grants, and other funds available for school
facilities, as the board may determine.
(2) The board may exclude from consideration all funds encumbered
for a specific capital outlay purpose, a reasonable amount for
interim housing, and other funds that the board may find are not
reasonably available for the project.
(d) Further, the regulations shall also specify a method for
determining required levels of local effort to obtain matching funds.
The regulations shall include consideration of at least all of the
following factors:
(1) Whether the school district has passed a bond measure within
the two-year period immediately preceding the application for funding
under this article, the proceeds of which are substantially
available for use in the project to be funded under this chapter, but
remains unable to provide the necessary matching share requirement.
(2) Whether the school district has a current outstanding bonded
indebtedness, which shall include general obligation bonds,
Mello-Roos bonds, school facility improvement district bonds,
certificates of participation, and other debt instruments upon which
the school district is paying a debt service, of at least 60 percent
of the school district's total bonding capacity, as determined by the
board.
(3) Whether the total bonding capacity, as defined in Section
15102 or 15106, as applicable, is five million dollars ($5,000,000)
or less, in which case, the school district shall be deemed eligible
for financial hardship.
(4) Whether the application for funding under this article is from
a county superintendent of schools.
(5) Whether the school district submits other evidence of
substantial local effort acceptable to the board.
(6) The value of any unused local general obligation debt
capacity, and developer fees added to the needs analysis to reflect
the district's financial hardship, available for the purposes of
school facilities financing.
SEC. 19. Section 17076.10 of the Education Code is amended to
read:
17076.10. (a) A school district that has received any funds
pursuant to this chapter shall submit a summary report of expenditure
of state funds and of district matching funds annually until all
state funds and district matching funds are expended, and shall then
submit a final report to the board. The board may require an audit
of these reports or other district records to ensure that all funds
received pursuant to this chapter are expended in accordance with
program requirements.
(b) If the board finds that a participating school district has
made no substantial progress towards increasing its pupil capacity or
modernizing its facilities within 18 months of the receipt of any
funding pursuant to this chapter, the board shall rescind the
apportionment in an amount equal to the unexpended funds.
(c) If the board, after the review of expenditures or audit has
been conducted pursuant to subdivision (a), determines that a school
district failed to expend funds in accordance with this chapter, the
department shall notify the school district of the amount that must
be repaid to the 1998 State School Facilities Fund, the 2002 State
School Facilities Fund, or the 2004 State School Facilities Fund, as
the case may be, within 60 days. If the school district fails to
make the required payment within 60 days, the department shall notify
the Controller and the school district in writing, and the
Controller shall deduct an amount equal to the amount received by the
school district under this subdivision, from the school district's
next principal apportionment or apportionments of state funds to the
school district, other than basic aid apportionments required by
Section 6 of Article IX of the California Constitution. Any amounts
obtained by the Controller shall be deposited into the 1998 State
School Facilities Fund, the 2002 State School Facilities Fund, or the
2004 State School Facilities Fund, as appropriate.
(d) If a school district has received an apportionment, but has
not met the criteria to have funds released pursuant to Section
17072.32 or 17074.15 within a period established by the board, but
not to exceed 18 months, the board shall rescind the apportionment
and deny the district's application.
SEC. 20. The heading of Article 10 (commencing with Section
17077.10) of Chapter 12.5 of Part 10 of the Education Code, as added
by Chapter 981 of the Statutes of 1999, is amended and renumbered to
read:
Article 10.5. Energy Efficiency
SEC. 21. Section 17077.10 of the Education Code, as added by
Chapter 981 of the Statutes of 1999, is amended and renumbered to
read:
17077.30. (a) As part of the requirements for submission of an
application to the State Allocation Board for funding pursuant to
this chapter for any new construction or modernization project, the
applicant school district may, at the time of submission of the final
drawings to the Division of the State Architect, certify that an
energy analysis and report has been prepared that sets forth the
utility savings that would be generated if the facilities were
designed, constructed, and equipped, with the energy efficiency and
renewable technologies that would make the facilities exceed the
minimum building energy-efficiency standards mandated for new public
buildings pursuant to the latest edition of the California Building
Standards Code through the use of energy efficiency and renewable
energy technologies.
(b) The energy analysis and report shall include a verifiable
life-cycle cost analysis for each proposed energy conservation
measure and renewable energy that may include, but need not be
limited to, photovoltaic parking lot and security lighting, and solar
swimming pool and domestic water heating, showing a return on
investment of less than 15 years.
(c) The cost of the energy analyses and reports shall not exceed:
(1) Seven thousand five hundred dollars ($7,500) per project for
elementary schools.
(2) Ten thousand dollars ($10,000) per project for middle schools.
(3) Fifteen thousand dollars ($15,000) per project for high
schools.
(d) An applicant school district may count the following funds or
expenditures toward meeting the local matching funds requirement
under this chapter:
(1) The amount from any local sources actually expended on the
project by the applicant school district for an energy audit.
(2) The amount actually applied to the project from any incentive,
grant, or rebate, received by the applicant school district from a
program funded pursuant to Section 381 of the Public Utilities Code.
SEC. 22. Section 17077.35 is added to the Education Code, to read:
17077.35. (a) An applicant school district may include plan
design and other project components that seek school facility energy
efficiency approaching the ultimate goal of school facility energy
self-sufficiency, and may seek a grant adjustment for the state's
share of the increased costs associated with those components.
(b) Energy efficiency components that are eligible for inclusion
into a project pursuant to this section include, but are not limited
to, conservation, load reduction technologies, peakload shifting,
solar water heating technologies as described in subparagraph (A) of
paragraph (2) of subdivision (b) of Section 25619 of the Public
Resources Code and as rated and certified by the Solar Rating and
Certification Corporation, the use of ground source temperatures for
heating and cooling, photovoltaics, and technologies that meet the
emerging technology eligibility criteria established by the State
Energy Resources Conservation and Development Commission pursuant to
Section 383.5 of the Public Utilities Code. A project that received
funding from the renewable energy program administered by the State
Energy Resources Conservation and Development Commission is not
eligible for a grant adjustment under this section.
(c) In order to be eligible for the grant adjustment pursuant to
this section, the building proposed for the project, including the
energy-efficiency and renewable energy measures utilized pursuant to
this section, shall exceed the nonresidential building
energy-efficiency standards specified in Part 6 (commencing with
Section 100) of Title 24 of the California Code of Regulations by an
amount not less than 15 percent for new construction projects and not
less than 10 percent for modernization projects, and shall be shown
to provide sufficient energy savings to return the cost of the
initial investment in the project over a period not to exceed seven
years. The applicant shall certify that the cost for the project
exceeds the amount of funding otherwise available to the applicant
under this chapter.
(d) The board shall provide an applicant for a new construction or
modernization project with a grant adjustment to provide an increase
not to exceed 5 percent of its state grants authorized by Sections
17072.10 and 17074.10 for the state's share of costs associated with
design and other plan components related to school facility energy
efficiency as set forth in this article.
SEC. 23. Article 10.6 (commencing with Section 17077.40) is added
to Chapter 12.5 of Part 10 of the Education Code, to read:
Article 10.6. Joint-use Facilities
17077.40. (a) With funds made available for the purposes of this
article, the board may provide a grant to fund joint-use projects to
construct facilities on kindergarten to grade 12, inclusive,
schoolsites.
(b) A school district may apply to the board for funding under
this article for a project that meets any of the following criteria:
(1) The joint-use project is a part of an application for new
construction funding under this chapter, and is for the purpose of
providing facilities to be used for a kindergarten to grade 12/higher
education collaborative effort for any of the following purposes:
(A) To improve pupil academic achievement.
(B) To provide teacher education.
(C) To provide childcare facilities.
(2) The joint-use project is part of an application for new
construction funding under this chapter, and will increase the size
or extra cost associated with the joint use of the proposed
multipurpose room, gymnasium, childcare facility, or library beyond
that necessary for school use.
(3) The joint-use project is for a kindergarten to grade 12/higher
education collaborative effort to improve academic achievement or
provide teacher education, or a multipurpose room, gymnasium,
library, or childcare facility, and the project will be located at a
school that does not have the type of facility for which funds are
requested or the existing facility is inadequate.
17077.42. In order to be approved for a grant under this article,
the applicant 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 partner has agreed to provide matching funds for
50 percent of the eligible costs under this article.
(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) or (2) 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 (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.
17077.45. (a) The board shall establish standards for determining
the amount of the supplemental grant funding to be made available
for each project under this article. For a project application
qualifying for funding under paragraph (1) or (2) of subdivision (b)
of Section 17077.40, the supplemental grant shall be in the form of
an adjustment to the per-pupil eligibility of the project. For a
project application qualifying under paragraph (3) of subdivision
(b), the supplemental grant may be provided without regard to the
existence of per-pupil eligibility pursuant to this chapter, and may
be expressed on per-square-foot cost basis, on a per-pupil cost
basis, or on a per-project cost basis.
(b) Notwithstanding any other provision of this chapter, project
costs may exceed the board's standards established pursuant to
subdivision (a) only if the excess is paid completely by local or
joint-use partner sources.
(c) On July 1 of each year the board shall apportion to qualifying
applicant school districts those funds that it determines are
available for the purpose of this article. The board shall not
release funds to a qualifying applicant until the project plans have
received all approval required pursuant to this chapter, including,
but not limited to, the approval of the Division of the State
Architect. If the project does not receive all necessary plan
approvals within one year of the date of the apportionment, the board
shall rescind the apportionment.
(d) If the total funding for the purposes of this article is not
sufficient to fund all of the joint-use projects for funding under
this article, the board shall fund projects eligible under paragraphs
(1), (2), and (3) of subdivision (b) of Section 17077.40 in that
order. The board may establish other priority standards within that
order, as necessary.
(e) Except as expressly provided in this article, projects funded
pursuant to this article shall comply with all other requirements of
this chapter, except for Article 11 (commencing with Section
17078.10), which shall apply only to projects under this article if
they also qualify for funding under Article 11 (commencing with
Section 17078.10).
SEC. 24. Article 11 (commencing with Section 17078.10) is added to
Chapter 12.5 of Part 10 of the Education Code, to read:
Article 11. Critically Overcrowded School Facilities
17078.10. (a) There is hereby established the Critically
Overcrowded School Facilities Program to be administered by the
board.
(b) For the purposes of this article, "preliminary application"
means an application for a preliminary apportionment pursuant to this
article.
(c) For the purposes of this article, "preliminary apportionment"
means an apportionment made for eligible applicants with critically
overcrowded schools in advance of full compliance with all of the
application requirements otherwise required for an apportionment
pursuant to this chapter.
(d) For the purposes of this article, "final apportionment" has
the same meaning as "apportionment" as set forth in subdivision (a)
of Section 17070.15.
(e) There is hereby established the 2002 Critically Overcrowded
School Facilities Account within the 2002 State School Facilities
Fund, and the 2004 Critically Overcrowded School Facilities Account
within the 2004 State School Facilities Fund, for the purposes of
this article. Funds reserved for the purposes of this article shall
be placed in those accounts, as appropriate, and shall be available
exclusively for projects eligible under this article until the funds
are made available for other purposes of this chapter pursuant to
Section 17078.30.
17078.15. (a) Unless this article expressly provides otherwise,
the provisions contained in the other articles of this chapter shall
apply with equal force to a project funded under this article. This
article shall control over the provisions of this chapter contained
in other articles only to the extent that this article expressly
conflicts with those provisions.
(b) This article shall apply only to a project that is otherwise
eligible under this chapter and that meets both of the following
criteria:
(1) The project meets the criteria set forth in Section 17078.18.
(2) The project is to be funded from the proceeds of state bonds
approved by the voters at the November 5, 2002, statewide general
election, or the 2004 direct primary election or the 2004 statewide
general election, as the case may be, that were expressly reserved in
the bond act or acts for the purposes set forth in this article.
(c) The state share of project costs and the state
per-unhoused-pupil new construction apportionments for programs
eligible under this article shall be equal to the share and amounts
otherwise provided by the board pursuant to this chapter, including,
but not limited to, any applicable adjustments or supplements
otherwise authorized pursuant to this chapter.
(d) A school district that elects to utilize per-unhoused-pupil
eligibility pursuant to this chapter to support a project pursuant to
this article, shall not simultaneously utilize that same eligibility
to support any other application pursuant to this chapter.
17078.18. Projects funded under this article shall meet all of
the following criteria:
(a) The project is a new construction project to build new pupil
capacity to relieve overcrowding.
(b) The proposed school facility shall be located in the proposed
general location, as set forth in Section 17078.22, of the school or
schools that have the conditions and pupils that establish the
eligibility pursuant to this article as set forth in subdivision (c).
(c) At least 75 percent of the projected pupil occupancy of the
project facilities shall come from a source school or source schools
that have a site pupil population density greater than 115 pupils per
acre in grades kindergarten to six, inclusive, or a site pupil
population density greater than 90 pupils per acre in grades seven to
12, inclusive, as determined by the Superintendent of Public
Instruction using enrollment data from the California Basic
Educational Data System for the 2001-02 school year. For source
schools with grades that include a combination of kindergarten to
six, inclusive, and seven to 12, inclusive, the controlling source
schoolsite pupil population density shall be the one applicable to
the grade levels in which the majority of the pupils are enrolled at
the source school.
17078.20. (a) The board shall disseminate information to school
districts regarding the availability of funding pursuant to this
article and the appropriate deadlines for applications.
(b) Applicants for funding pursuant to this article shall submit
preliminary applications to the board.
(c) The preliminary applications shall be submitted by May 1,
2003, for projects to be funded with the proceeds of bonds approved
by the voters at the November 5, 2002, statewide general election.
(d) Preliminary applications shall be accepted by the board during
the period between 60 days before and 120 days after, the 2004
direct primary election, or the 2004 statewide general election, as
appropriate for projects to be funded with the proceeds of bonds
approved by the voters at the 2004 direct primary election.
(e) If funds are insufficient to fully fund all of the preliminary
applicants, the board shall apportion first to those projects that
would house pupils from source schools with the highest pupil density
levels relative to the State Department of Education standards.
17078.22. (a) The preliminary applications shall do all of the
following:
(1) Establish per-unhoused-pupil eligibility as set forth in
Article 3 (commencing with Section 17071.75).
(2) Identify the unhoused pupil population that the proposed
project will serve by determining the number of pupils to be served
and the likely source school or schools from which the pupils
population will be drawn.
(3) Identify the proposed general location of the needed new
facilities pursuant to any of the following:
(A) Within that portion of the attendance area from which one or
more elementary schools that would be a source of the per-pupil
eligibility for the proposed facility draws its enrollment, or within
a one-mile radius of a source school, or within a one-mile radius of
any one of the source schools if there are more than one, whichever
is greater.
(B) Within the attendance area of a high school, middle school, or
junior high school that would be a source of the per-pupil
eligibility for the proposed facility or within a three-mile radius
of a source school, or within a three-mile radius of any one of the
source schools if there are more than one, whichever is greater.
(4) Estimate the total facility cost on a per-pupil basis and
estimate the total site acquisition and development costs pursuant to
the regulations adopted pursuant to subdivision (c) of Section
17078.24.
(b) The State Department of Education may grant a variance from
the distance maximums set forth in paragraph (3) of subdivision (a)
if the school district demonstrates to the satisfaction of the
department that the variance is necessary in order to adequately
provide facilities for the identified source school pupils.
17078.24. (a) On the basis of the preliminary application and
upon confirmation by the board of the applicant's eligibility, the
board shall in a timely manner make a preliminary apportionment for
applicants under this article exclusively from funds reserved
expressly for the purposes of this article.
(b) Preliminary apportionments for site development and
acquisition included in the preliminary application pursuant to
subdivision (a) of Section 17078.22 shall be based either on the
preliminary appraisal, if available, or on the median costs of
appropriately sized parcels within the qualifying area, as determined
by the board.
(c) Preliminary apportionments shall include the total estimated
state costs of the project, including, but not limited to, site
acquisition and development costs related to evaluations and
elimination of hazardous materials, an inflation factor, any
applicable excess cost allowances, and hardship costs, if any. The
board shall adopt regulations establishing standards and methods for
setting these costs and for making related estimates.
17078.25. (a) Within the maximum time period set forth in Section
17078.30, the applicant shall have a period of up to four years from
the date of the preliminary apportionment in which to complete the
application for final apportionment.
(b) The applicant may request a single one-year extension of the
period set forth in subdivision (a). The board shall grant the
request for the single one-year extension if it determines that the
applicant has made substantial progress towards completing the
requirements for filing an application for final apportionment. The
board may grant only one one-year extension for the project and may
only grant the extension if granting the extension would not, in
total, cause the project to exceed the maximum time period set forth
in Section 17078.30.
(c) The board shall adopt regulations setting forth standards for
determining the existence of substantial progress within the meaning
of subdivision (b).
(d) The governing board of a school district shall report annually
to the State Allocation Board regarding the progress made toward
completing the requirements for filing an application for final
apportionment, and shall annually hold, at a regularly scheduled
meeting of the governing board, a public hearing pursuant to the
Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of
Division 2 of Title 5 of the Government Code) to discuss, and to
receive public comment regarding, the report.
(e) In its first annual report the governing board of the school
district shall certify that the State Department of Education has
determined in writing that there is at least one approvable site
within the proposed general location of the proposed facility
identified pursuant to paragraph (3) of subdivision (a) of Section
17078.22, or within the variance location authorized pursuant to
subdivision (b) of Section 17078.22.
(f) If the applicant for the one-year extension pursuant to
subdivision (b) has not made substantial progress to complete the
application process within the allotted time period, the preliminary
apportionment shall be rescinded and shall be utilized by the board
for funding of other projects that have received a preliminary
apportionment pursuant to this article, or at the expiration of the
maximum time allowed pursuant to Section 17078.30, the board shall
use the funds for any other new construction purpose
of this chapter.
17078.27. (a) Upon completion of the preliminary process
authorized pursuant to this article, and when a preliminary applicant
has complied with the conditions set forth in this chapter for a
final apportionment, including, but not limited to, Section 17070.50,
the board shall adjust the preliminary apportionment as set forth in
subdivision (b) and as necessary to reflect the current eligible
grant amounts for final apportionments pursuant to this chapter
consistent with regulations adopted pursuant to subdivision (c) of
Section 17078.24. The board shall then convert the adjusted
preliminary apportionment to a final apportionment and proceed to
completion of the project in the same manner as for any project
funded under provisions of this chapter other than this article.
(b) The board may adjust for cost increases only if uncommitted
funds reserved expressly for the purposes of this article remain
available for those purposes.
17078.30. (a) (1) A portion of the funds reserved for the
purposes set forth in this article from the proceeds of state bonds
approved by the voters at the November 5, 2002, statewide general
election that are not included in a preliminary apportionment for an
application that is received by the deadline specified in subdivision
(c) of Section 17078.20 shall thereafter be available to the board
for apportionment for any new construction purpose under any other
article of this chapter.
(2) The amount of funds that shall be made available to the board
for purposes other than this article, pursuant to this subdivision,
shall be calculated as follows:
(A) Add the total amount preliminarily apportioned to 15 percent
of that amount.
(B) Take the number calculated pursuant to subparagraph (A) and
subtract that number from the amount originally reserved for the
purposes of this article.
(C) The number calculated pursuant to subparagraph (B) shall
thereafter be available to the board for any new construction purpose
under any other article of this chapter.
(3) All funds reserved for the purposes set forth in this article
from the proceeds of state bonds approved by the voters at the
November 5, 2002, statewide general election pursuant to a
preliminary apportionment that are not included within a final
apportionment within the timeframes permitted by Section 17078.25
shall thereafter be available to the board for apportionment for any
new construction purpose under any other article of this chapter.
(b) (1) A portion of the funds reserved for the purposes set forth
in this article from the proceeds of state bonds approved by the
voters at the 2004 direct primary election that are not included in a
preliminary apportionment for an application that is received by the
deadline specified in subdivision (d) of Section 17078.20 shall
thereafter be available to the board for apportionment for any new
construction purpose under any other article of this chapter.
(2) The amount of funds that shall be made available to the board
for purposes other than this article, pursuant to this subdivision,
shall be calculated as follows:
(A) Add the total amount preliminarily apportioned to 15 percent
of that amount.
(B) Take the number calculated pursuant to subparagraph (A) and
subtract that number from the amount originally reserved for the
purposes of this article.
(C) The number calculated pursuant to subparagraph (B) shall
thereafter be available to the board for any new construction purpose
under any other article of this chapter.
(3) All funds reserved for the purposes set forth in this article
from the proceeds of state bonds approved by the voters at the 2004
direct primary election pursuant to a preliminary apportionment that
are not included within a final apportionment within the timeframes
permitted by Section 17078.25 shall thereafter be available to the
board for apportionment for any new construction purpose under any
other article of this chapter.
SEC. 25. Section 17088.2 of the Education Code is amended to read:
17088.2. Notwithstanding any provision of law to the contrary,
including, but not limited to, Section 17587, the board may transfer
any funds within the State School Building Aid Fund that are in
excess of the amounts needed by the board for the maintenance of
portable buildings or for the purchase of new portable buildings, for
that fiscal year, to any of the following, as appropriate:
(a) The 1998 State School Facilities Fund for allocation by the
board for any purpose authorized pursuant to that fund.
(b) The 2002 State School Facilities Fund for allocation by the
board for any purpose authorized pursuant to that fund.
(c) The 2004 State School Facilities Fund for allocation by the
board for any purpose authorized pursuant to that fund.
(d) The State School Deferred Maintenance Fund for allocation by
the board for any purpose authorized pursuant to that fund. The
board may utilize up to 100 percent of the funds transferred by the
board to the State School Deferred Maintenance Fund pursuant to this
section for funding extreme hardship critical projects.
SEC. 26. Section 17251.5 is added to the Education Code, to read:
17251.5. Notwithstanding any law, when using exclusively local
funds for acquisition of a potential schoolsite, a school district is
not required to receive final approval of a site by the State
Department of Education prior to adopting a resolution of necessity
in an eminent domain proceeding or prior to closing escrow on a site
purchase through voluntary sale.
SEC. 27. Section 17262 of the Education Code is amended to read:
17262. Any school district may request sets of the plans and
specifications obtained by the State Allocation Board as appropriate
for use in constructing a school building of the type desired by the
school district. The plans and specifications shall be furnished to
the school district subject to the payment by the school district of
the actual expense incurred by the State Allocation Board, but that
payment shall not exceed more than 2 percent of the total cost of the
project. Any payments received for the plans and specifications
shall be paid into the 1998 State School Facilities Fund, the 2002
State School Facilities Fund, or the 2004 State School Facilities
Fund, as appropriate.
SEC. 28. Section 17280 of the Education Code is amended to read:
17280. (a) (1) The Department of General Services under the
police power of the state shall supervise the design and construction
of any school building or the reconstruction or alteration of or
addition to any school building, if not exempted under Section 17295,
to ensure that plans and specifications comply with the rules and
regulations adopted pursuant to this article and building standards
published in Title 24 of the California Code of Regulations, and to
ensure that the work of construction has been performed in accordance
with the approved plans and specifications, for the protection of
life and property. Nothing in this section shall be construed to
allow a school district to perform work with its own forces in excess
of the limitations set forth in Sections 17595 and 17599. In
calculating the cost of any project of reconstruction or alteration
of, or addition to, any school building for the purpose of
determining the applicability of the rules and regulations adopted
pursuant to this article and building standards published in Title 24
of the California Code of Regulations, the Department of General
Services shall not include, as an element of that cost, any expenses
of air-conditioning equipment or insulation materials for that
building, or of installing the equipment or materials.
(2) In the alternative, for a leased or purchased building, a
school district may comply with this section by complying with
Section 17280.5.
(b) Whenever repairs due to fire damage, not including any damage
caused by wind or earthquake, must be made to any school building
previously approved by the Department of General Services, the
approved plans and specifications used in the original work under
then existing rules, regulations, and building standards may be used
without modification, providing all other provisions of this article
are carried out.
(c) Notwithstanding any other provision of law, no school district
shall be authorized to construct or reconstruct any school building,
regardless of the source of funding, unless and until the governing
board of the district, by resolution, has indicated the agreement of
the district that any school building construction or reconstruction
that exceeds those construction costs and allowable area standards or
any allowable building area computed for an attendance area pursuant
to Section 17041 shall, in the event of the district's subsequent
application for state funding for school facility construction, be
deducted from the allowable building area for which the district
would otherwise have been eligible, which restriction shall not be
subject to waiver or exception as otherwise may be provided by law.
(d) If it is determined that, for any reason, a school district
failed to comply with the requirement of this section, the district
shall not be eligible for any additional building area pursuant to
Section 17049 and may be denied any time priority established for the
particular project pursuant to Section 17016.
SEC. 29. Section 17280.5 is added to the Education Code, to read:
17280.5. (a) The Seismic Safety Commission shall convene an
advisory committee that shall include, but not be limited to, the
State Architect, the State Fire Marshall, representatives from the
major professional associations representing architects, engineers,
and school facilities designers, and other interested parties.
(b) The advisory committee shall convene by August 19, 2002, and
shall study and report on whether a regulatory process may be
developed that will allow the State Architect to determine whether a
building not originally constructed in compliance with the Field Act,
as defined in Section 17281, and its implementing regulations either
meets, or can be retrofitted to meet, the equivalent pupil safety
performance standard as a building constructed according to the Field
Act and its implementing regulations. If the advisory committee
finds that the regulatory process may be developed, the advisory
committee, shall include within its report the facts and rationale
supporting the finding and the essential steps required in that
regulatory process. The advisory committee shall report its findings
to the Seismic Safety Commission by December 31, 2002.
(c) By January 8, 2003, and after reviewing the advisory committee'
s findings, the Seismic Safety Commission shall make a determination
as to whether the regulatory process described in subdivision (b) may
be developed, and shall report that determination to the Governor
and the Legislature.
(d) If the Seismic Safety Commission determines that the
regulatory process may be developed, the State Architect shall draft
regulations to establish that regulatory process and to delineate the
required retrofitting, deconstructive testing, continuous inspection
procedures, and other necessary certifications and requirements that
must be completed for a building to ensure it meets the equivalent
pupil safety performance standard as a building constructed according
to the Field Act and its implementing regulations. The State
Architect shall promulgate the regulations on or before April 1,
2003, as emergency regulations in accordance with the rulemaking
provisions of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code).
(e) Notwithstanding any law, a leased or purchased building that
is determined to have the equivalent pupil safety performance
standard as a building constructed according to the Field Act and
implementing regulations is hereby deemed to be in full compliance
with the safety requirements of a school building as set forth in
Section 17280, and is hereby deemed to be in full compliance with the
Field Act.
SEC. 30. Part 68.1 (commencing with Section 100600) is added to
the Education Code, to read:
PART 68.1. KINDERGARTEN-UNIVERSITY PUBLIC EDUCATION FACILITIES
BOND ACT OF 2002
CHAPTER 1. GENERAL
100600. This part shall be known and may be cited as the
Kindergarten-University Public Education Facilities Bond Act of 2002.
100601. The incorporation of, or reference to, any provision of
California statutory law in this part includes all acts amendatory
thereof and supplementary thereto.
100603. Bonds in the total amount of thirteen billion fifty
million dollars ($13,050,000,000), not including the amount of any
refunding bonds issued in accordance with Sections 100644 and 100755,
or so much thereof as is necessary, may be issued and sold to
provide a fund to be used for carrying out the purposes expressed in
this part and to reimburse the General Obligation Bond Expense
Revolving Fund pursuant to Section 16724.5 of the Government Code.
The bonds, when sold, shall be and constitute a valid and binding
obligation of the State of California, and the full faith and credit
of the State of California is hereby pledged for the punctual payment
of the principal of, and interest on, the bonds as the principal and
interest become due and payable.
(b) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the State School Building Finance Committee established
by Section 15909 or the Higher Education Facilities Finance
Committee established pursuant to Section 67353, as the case may be,
at any different times necessary to service expenditures required by
the apportionments.
CHAPTER 2. KINDERGARTEN THROUGH 12TH GRADE
Article 1. Kindergarten Through 12th Grade School Facilities
Program Provisions
100610. The proceeds of bonds issued and sold pursuant to Article
2 (commencing with Section 100625) shall be deposited in the 2002
State School Facilities Fund, which is established in Section
17070.40, and shall be allocated by the State Allocation Board
pursuant to this chapter.
100615. All moneys deposited in the 2002 State Facilities Fund
for the purposes of this chapter shall be available and,
notwithstanding any other provision of law to the contrary, are
hereby appropriated 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),
as set forth in Section 100620, to provide funds to repay any money
advanced or loaned to the 2002 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.
100620. (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 three billion four hundred fifty million dollars
($3,450,000,000) for new construction of school facilities of
applicant school districts under Chapter 12.5 (commencing with
Section 17070.10) of Part 10 for those school districts that file an
application with the Office of Public School Construction after
February 1, 2002, including, but not limited to, hardship
applications.
(A) Of the amount allocated pursuant to this paragraph, up to one
hundred million dollars ($100,000,000) shall be available for
providing school facilities to charter schools pursuant to a statute
enacted after the effective date of the act enacting this section.
(B) If the Housing and Emergency Shelter Trust Fund Act of 2002 is
submitted to the voters at the November 5, 2002, general election
and fails passage by the voters, of the amount allocated pursuant to
this paragraph, twenty-five million dollars ($25,000,000) shall be
available for the purposes of Sections 51451.5, 51453, and 51455 of
the Health and Safety Code.
(2) The amount of one billion four hundred million dollars
($1,400,000,000) for the modernization of school facilities pursuant
to Chapter 12.5 (commencing with Section 17070.10) of Part 10 for
those school districts that file an application with the Office of
Public School Construction after February 1, 2002, including, but not
limited to, hardship applications.
(3) The amount of two billion nine hundred million dollars
($2,900,000,000) for new construction of school facilities pursuant
to Chapter 12.5 (commencing with Section 17070.10) of Part 10 for
those school districts that have filed an application with the Office
of Public School Construction on or before February 1, 2002,
including, but not limited to, hardship applications. If the amount
made available for purposes of this paragraph is not needed and
expended for the purposes of this paragraph, the State Allocation
Board may allocate the remainder of these funds for purposes of
paragraph (1).
(4) The amount of one billion nine hundred million dollars
($1,900,000,000) for the modernization of school facilities pursuant
to Chapter 12.5 (commencing with Section 17070.10) of Part 10, for
those school districts that have filed an application with the Office
of Public School Construction on or before February 1, 2002,
including, but not limited to, hardship applications. If the amount
made available for purposes of this paragraph is not needed and
expended for the purposes of this paragraph, the State Allocation
Board may allocate these funds for purposes of paragraph (2).
(5) The amount of one billion seven hundred million dollars
($1,700,000,000) for deposit into the 2002 Critically Overcrowded
School Facilities Account established within the 2002 State School
Facilities Fund pursuant to subdivision (e) of Section 17078.10, for
the purposes set forth in Article 11 (commencing with Section
17078.10) of Chapter 12.5 of Part 10 relating to critically
overcrowded schools, including, but not limited to, hardship
applications, and any other new construction or modernization
projects as authorized pursuant to Section 17078.30.
(6) The amount of fifty million dollars ($50,000,000) for the
purposes set forth in Article 10.6 (commencing with Section 17077.40)
of Chapter 12.5 of Part 10 relating to joint-use projects,
including, but not limited to, hardship applications.
(b) School districts may use funds allocated pursuant to
paragraphs (2) and (4) 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:
(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.
(c) Funds allocated pursuant to paragraphs (1) and (3) 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 for
funding classrooms for severely handicapped pupils, or for funding
classrooms for county community school pupils.
(d) (1) The Legislature may amend this section to adjust the
funding amounts specified in paragraphs (1) to (6), inclusive, of
subdivision (a), only by either of the following methods:
(A) By a statute, passed in each house of the Legislature by
rollcall vote entered in the respective journals, by not less than
two-thirds of the membership in each house concurring, if the statute
is consistent with, and furthers the purposes of, this chapter.
(B) By a statute that becomes effective only when approved by the
voters.
(2) Amendments pursuant to this subdivision may adjust the amounts
to be expended pursuant to paragraphs (1) to (6), inclusive, of
subdivision (a), but may not increase or decrease the total amount to
be expended pursuant to that subdivision.
(e) From the total amounts set forth in paragraphs (1) to (6),
inclusive, of subdivision (a), a total of no more than twenty million
dollars ($20,000,000) shall be used for the costs of energy
conservation adjustments authorized pursuant to Section 17077.35.
(f) Funds available pursuant to this section may be used for
acquisition of school facilities authorized pursuant to Section
17280.5.
Article 2. Kindergarten Through 12th Grade School Facilities
Fiscal Provisions
100625. (a) Of the total amount of bonds authorized to be issued
and sold pursuant to Chapter 1 (commencing with Section 100600),
bonds in the total amount of eleven billion four hundred million
dollars ($11,400,000,000) not including the amount of any refunding
bonds issued in accordance with Section 100644, 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.
100627. 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 of Public
Instruction, or their designated representatives, all of whom shall
serve thereon without compensation, and a majority of whom shall
constitute a quorum, is continued in existence for the purpose of
this chapter. The Treasurer shall serve as chairperson of the
committee. Two Members of the Senate appointed by the Senate
Committee on Rules, and two Members of the Assembly appointed by the
Speaker of the Assembly, shall meet with and provide advice to the
committee to the extent that the advisory participation is not
incompatible with their respective positions as Members of the
Legislature. For the purposes of this chapter, the Members of the
Legislature shall constitute an interim investigating committee on
the subject of this chapter and, as that committee, shall have the
powers granted to, and duties imposed upon, those committees by the
Joint Rules of the Senate and the Assembly. The Director of Finance
shall provide assistance to the committee as it may require. The
Attorney General of the state is the legal adviser of the committee.
100630. (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, 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 2002 State School Facilities Fund.
100632. Upon request of the State Allocation Board from time to
time, supported by a statement of the apportionments made and to be
made for the purposes described in Sections 100615 and 100620, 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.
100634. 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.
100635. 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 100640, appropriated
without regard to fiscal years.
100636. 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.
100638. 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.
100640. For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds that
have been authorized by the State School Building Finance Committee
to be sold for the purpose of carrying out this chapter. Any amounts
withdrawn shall be deposited in the 2002 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.
100642. All money deposited in the 2002 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.
100644. 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.
100646. The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this chapter are
not "proceeds of taxes" as that term is used in Article XIII B of
the California Constitution, the disbursement of these proceeds is
not subject to the limitations imposed by that article.
CHAPTER 3. HIGHER EDUCATION FACILITIES
Article 1. General
100650. (a) The system of public higher education in this state
includes the University of California, the Hastings College of the
Law, the California State University, the California Community
Colleges, and their respective off-campus centers.
(b) The 2002 Higher Education 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, the
California State University, and the California Community Colleges.
Article 2. Program Provisions Applicable to the University of
California and the Hastings College of the Law
100652. (a) From the proceeds of bonds issued and sold pursuant
to Article 5 (commencing with Section 100700), the sum of four
hundred eight million two hundred sixteen thousand dollars
($408,216,000) shall be deposited in the 2002 Higher Education
Capital Outlay Bond Fund for the purposes of this article. When
appropriated, these funds shall be available for expenditure for the
purposes of this article.
(b) The purposes of this article include assisting in meeting the
capital outlay financing needs of the University of California and
the Hastings College of the Law.
(c) Proceeds from the sale of bonds issued and sold for the
purposes of this article may be used to fund construction on existing
campuses, including the construction of buildings and the
acquisition of related fixtures, construction of facilities that may
be used by more than one segment of public higher education
(intersegmental), the renovation and reconstruction of facilities,
site acquisition, the equipping of new, renovated, or reconstructed
facilities, which equipment shall have an average useful life of 10
years; and to provide funds for the payment of preconstruction costs,
including, but not limited to, preliminary plans and working
drawings for facilities of the University of California and the
Hastings College of the Law.
Article 3. Program Provisions Applicable to the California
State University
100653. (a) From the proceeds of bonds issued and sold pursuant
to Article 5 (commencing with Section 100700), the sum of four
hundred ninety-five million nine hundred thirty-two thousand dollars
($495,932,000) shall be deposited in the 2002 Higher Education
Capital Outlay Bond Fund for the purposes of this article. When
appropriated, these funds shall be available for expenditure for the
purposes of this article.
(b) The purposes of this article include assisting in meeting the
capital outlay financing needs of the California State University.
(c) Proceeds from the sale of bonds issued and sold for the
purposes of this article may be used to fund construction on existing
campuses, including the construction of buildings and the
acquisition of related fixtures, construction of facilities that may
be used by more than one segment of public higher education
(intersegmental), the renovation and reconstruction of facilities,
site acquisition, the equipping of new, renovated, or reconstructed
facilities, which equipment shall have an average useful life of 10
years; and to provide funds for the payment of preconstruction costs,
including, but not limited to, preliminary plans and working
drawings for facilities of the California State University.
Article 4. Program Provisions Applicable to the California
Community Colleges
100654. (a) From the proceeds of bonds issued and sold pursuant
to Article 5 (commencing with Section 100700), the sum of seven
hundred forty-five million eight hundred fifty-three thousand dollars
($745,853,000) shall be deposited in the 2002 Higher Education
Capital Outlay Bond Fund for the purposes of this article. When
appropriated, these funds shall be available for expenditure for the
purposes of this article.
(b) The purposes of this article include assisting in meeting the
capital outlay financing needs of the California Community Colleges.
(c) Proceeds from the sale of bonds issued and sold for the
purposes of this article may be used to fund construction on existing
campuses, including the construction of buildings and the
acquisition of related fixtures, construction of facilities that may
be used by more than one segment of public higher education
(intersegmental), the renovation and reconstruction of facilities,
site acquisition, the equipping of new, renovated, or reconstructed
facilities, which equipment shall have an average useful life of 10
years; and to provide funds for the payment of preconstruction costs,
including, but not limited to, preliminary plans and working
drawings for facilities of the California Community Colleges.
Article 5. Higher Education Fiscal Provisions
100700. (a) Of the total amount of bonds authorized to be issued
and sold pursuant to Chapter 1 (commencing with Section 100600),
bonds in the total amount of one billion six hundred fifty million
dollars ($1,650,000,000), not including the amount of any refunding
bonds issued in accordance with Section 100755, 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, the California State University, and 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 15th of each year, those
entities report their findings to the budget committees of each
house of the Legislature.
(c) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the Higher Education Facilities Finance Committee
established pursuant to Section 67353 at any different times
necessary to service expenditures required by the apportionments.
100710. (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, apply to the bonds and to this chapter and are
hereby incorporated into this chapter as though set forth in full
within this chapter.
(b) For the purposes of the State General Obligation Bond Law,
each state agency administering an appropriation of the 2002 Higher
Education 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, the
California State University, and 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.
100720. 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.
100725. There shall be collected each year and in the same manner
and at the same time as other state revenue is collected, in addition
to the ordinary revenues of the state, a sum in an amount required
to pay the principal of, and interest on, the bonds each year. It is
the duty of all officers charged by law with any duty in regard to
the collection of the revenue to do and perform each and every act
which is necessary to collect that additional sum.
100730. 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 100745, appropriated
without regard to fiscal years.
100735. The board, as defined in subdivision (b) of Section
100710, 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 100710, 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.
100740. 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.
100745. (a) For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds that
have been authorized by the Higher Education Facilities Finance
Committee to be sold for the purpose of carrying out this chapter.
Any amounts withdrawn shall be deposited in the 2002 Higher Education
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, the California State University, or
the California Community Colleges 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. Requests
forwarded by the California Community Colleges shall be accompanied
by a five-year capital outlay plan reflecting the needs and
priorities of the community college system, prioritized on a
statewide basis.
100750. All money deposited in the 2002 Higher Education 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.
100755. 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.
100760. 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. 31. Part 68.2 (commencing with Section 100800) is added to
the Education Code, to read:
PART 68.2. KINDERGARTEN-UNIVERSITY PUBLIC EDUCATION FACILITIES
BOND ACT OF 2004
CHAPTER 1. GENERAL
100800. This part shall be known and may be cited as the
Kindergarten-University Public Education Facilities Bond Act of 2004.
100801. The incorporation of, or reference to, any provision of
California statutory law in this part includes all acts amendatory
thereof and supplementary thereto.
100803. (a) Bonds in the total amount of twelve billion three
hundred million dollars ($12,300,000,000), not including the amount
of any refunding bonds issued in accordance with Sections 100844 and
100955, or so much thereof as is necessary, may be issued and sold to
provide a fund to be used for carrying out the purposes expressed in
this part and to reimburse the General Obligation Bond Expense
Revolving Fund pursuant to Section 16724.5 of the Government Code.
The bonds, when sold, shall be and constitute a valid and binding
obligation of the State of California, and the full faith and credit
of the State of California is hereby pledged for the punctual payment
of the principal of, and interest on, the bonds as the principal and
interest become due and payable.
(b) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the State School Building Finance Committee established
by Section 15909 or the Higher Education Facilities Finance
Committee established pursuant to Section 67353, as the case may be,
at any different times necessary to service expenditures required by
the apportionments.
CHAPTER 2. KINDERGARTEN THROUGH 12TH GRADE
Article 1. Kindergarten Through 12th Grade School Facilities
Program Provisions
100810. The proceeds of bonds issued and sold pursuant to Article
2 (commencing with Section 100825) shall be deposited in the 2004
State School Facilities Fund, which is established in Section
17070.40, and shall be allocated by the State Allocation Board
pursuant to this chapter.
100815. All moneys deposited in the 2004 State Facilities Fund
for the purposes of this chapter shall be available and,
notwithstanding any other provision of law to the contrary, are
hereby appropriated 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),
as set forth in Section 100820, to provide funds to repay any money
advanced or loaned to the 2004 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.
100820. (a) The proceeds from the sale of bonds, issued and sold
for the purposes of this chapter, as specified in subdivision (a) of
Section 100810 shall be allocated in accordance with the following
schedule:
(1) The amount of five billion two hundred sixty million dollars
($5,260,000,000) for project funding for new construction of school
facilities of applicant school districts under Chapter 12.5
(commencing with Section 17070.10) of Part 10, including, but not
limited to, hardship applications.
(A) Of the amount allocated pursuant to this paragraph, up to
three hundred million dollars ($300,000,000) shall be available for
providing school facilities to charter schools pursuant to a statute
enacted after the effective date of the act enacting this section.
(B) If the Housing and Emergency Shelter Trust Fund Act of 2002 is
submitted to the voters at the November 5, 2002, general election
and fails passage by the voters, of the amount allocated pursuant to
this paragraph, twenty-five million dollars ($25,000,000) shall be
available for the purposes of Sections 51451.5, 51453, and 51455 of
the Health and Safety Code.
(2) The amount of two billion two hundred fifty million dollars
($2,250,000,000) for the modernization of school facilities pursuant
to Chapter 12.5 (commencing with Section 17070.10) of Part 10,
including, but not limited to, hardship applications.
(3) The amount of two billion four hundred forty million dollars
($2,440,000,000) for deposit into the 2004 Critically Overcrowded
School Facilities Account established within the 2004 State School
Facilities Fund pursuant to subdivision (e) of Section 17078.10 for
the purposes set forth in Article 11 (commencing with Section
17078.10) of Chapter 12.5 of Part 10 relating to critically
overcrowded schools, including, but not limited to, hardship
applications, and any other new construction or modernization
projects as authorized pursuant to Section 17078.30.
(4) The amount of fifty million dollars ($50,000,000) for the
purposes set forth in Article 10.6 (commencing with Section 17077.40)
of Chapter 12.5 of Part 10 relating to joint-use projects,
including, but not limited to, hardship applications.
(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:
(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.
(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 for funding classrooms
for severely handicapped pupils, or for funding classrooms for county
community school pupils.
(d) (1) The Legislature may amend this section to adjust the
funding amounts specified in paragraphs (1) to (4), inclusive, of
subdivision (a), only by either of the following methods:
(A) By a statute, passed in each house of the Legislature by
rollcall vote entered in the respective journals, by not less than
two-thirds of the membership in each house concurring, if the statute
is consistent with, and furthers the purposes of, this chapter.
(B) By a statute that becomes effective only when approved by the
voters.
(2) Amendments pursuant to this subdivision may adjust the amounts
to be expended pursuant to paragraphs (1) to (4), inclusive, of
subdivision (a), but may not increase or decrease the total amount to
be expended pursuant to that subdivision.
(e) From the total amounts set forth in paragraphs (1) to (6),
inclusive, of subdivision (a), a total of no more than twenty million
dollars ($20,000,000) shall be used for the costs of energy
conservation adjustments authorized pursuant to Section 17077.35.
(f) Funds available pursuant to this section may be used for
acquisition of school facilities authorized pursuant to Section
17280.5.
Article 2. Kindergarten Through 12th Grade School Facilities
Fiscal Provisions
100825. (a) Of the total amount of bonds authorized to be issued
and sold pursuant to Chapter 1 (commencing with Section 100800),
bonds in the total amount of ten billion dollars ($10,000,000,000),
not including the amount of any refunding bonds issued in accordance
with Section 100844, 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.
100827. 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 of Public
Instruction, or their designated representatives, all of whom shall
serve thereon without compensation, and a majority of whom shall
constitute a quorum, is continued in existence for the purpose of
this chapter. The Treasurer shall serve as chairperson of the
committee. Two Members of the Senate appointed by the Senate
Committee on Rules, and two Members of the Assembly appointed by the
Speaker of the Assembly, shall meet with and provide advice to the
committee to the extent that the advisory participation is not
incompatible with their respective positions as Members of the
Legislature. For the purposes of this chapter, the Members of the
Legislature shall constitute an interim investigating committee on
the subject of this chapter and, as that committee, shall have the
powers granted to, and duties imposed upon, those committees by the
Joint Rules of the Senate and the Assembly. The Director of Finance
shall provide assistance to the committee as it may require. The
Attorney General of the state is the legal adviser of the committee.
100830. (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, 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 2004 State School Facilities Fund.
100832.
Upon request of the State Allocation Board from time to time,
supported by a statement of the apportionments made and to be made
for the purposes described in Sections 100815 and 100820, 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.
100834. 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.
100835. 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 100840, appropriated
without regard to fiscal years.
100836. 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.
100838. 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.
100840. For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds that
have been authorized by the State School Building Finance Committee
to be sold for the purpose of carrying out this chapter. Any amounts
withdrawn shall be deposited in the 2004 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.
100842. All money deposited in the 2004 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.
100844. 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.
100846. The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this chapter are
not "proceeds of taxes" as that term is used in Article XIII B of
the California Constitution, the disbursement of these proceeds is
not subject to the limitations imposed by that article.
CHAPTER 3. HIGHER EDUCATION FACILITIES
Article 1. General
100850. (a) The system of public higher education in this state
includes the University of California, the Hastings College of the
Law, the California State University, the California Community
Colleges, and their respective off-campus centers.
(b) The 2004 Higher Education 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, the
California State University, and the California Community Colleges.
Article 2. Program Provisions Applicable to the University of
California and the Hastings College of the Law
100852. (a) From the proceeds of bonds issued and sold pursuant
to Article 5 (commencing with Section 100900), the sum of six hundred
ninety million dollars ($690,000,000) shall be deposited in the 2004
Higher Education Capital Outlay Bond Fund for the purposes of this
article. When appropriated, these funds shall be available for
expenditure for the purposes of this article.
(b) The purposes of this article include assisting in meeting the
capital outlay financing needs of the University of California and
the Hastings College of the Law.
(c) Proceeds from the sale of bonds issued and sold for the
purposes of this article may be used to fund construction on existing
campuses, including the construction of buildings and the
acquisition of related fixtures, construction of facilities that may
be used by more than one segment of public higher education
(intersegmental), the renovation and reconstruction of facilities,
site acquisition, the equipping of new, renovated, or reconstructed
facilities, which equipment shall have an average useful life of 10
years; and to provide funds for the payment of preconstruction costs,
including, but not limited to, preliminary plans and working
drawings for facilities of the University of California and the
Hastings College of the Law.
Article 3. Program Provisions Applicable to the California
State University
100853. (a) From the proceeds of bonds issued and sold pursuant
to Article 5 (commencing with Section 100900), the sum of six hundred
ninety million dollars ($690,000,000) shall be deposited in the 2004
Higher Education Capital Outlay Bond Fund for the purposes of this
article. When appropriated, these funds shall be available for
expenditure for the purposes of this article.
(b) The purposes of this article include assisting in meeting the
capital outlay financing needs of the California State University.
(c) Proceeds from the sale of bonds issued and sold for the
purposes of this article may be used to fund construction on existing
campuses, including the construction of buildings and the
acquisition of related fixtures, construction of facilities that may
be used by more than one segment of public higher education
(intersegmental), the renovation and reconstruction of facilities,
site acquisition, the equipping of new, renovated, or reconstructed
facilities, which equipment shall have an average useful life of 10
years; and to provide funds for the payment of preconstruction costs,
including, but not limited to, preliminary plans and working
drawings for facilities of the California State University.
Article 4. Program Provisions Applicable to the California
Community Colleges
100854. (a) From the proceeds of bonds issued and sold pursuant
to Article 5 (commencing with Section 100900), the sum of nine
hundred twenty million dollars ($920,000,000) shall be deposited in
the 2004 Higher Education Capital Outlay Bond Fund for the purposes
of this article. When appropriated, these funds shall be available
for expenditure for the purposes of this article.
(b) The purposes of this article include assisting in meeting the
capital outlay financing needs of the California Community Colleges.
(c) Proceeds from the sale of bonds issued and sold for the
purposes of this article may be used to fund construction on existing
campuses, including the construction of buildings and the
acquisition of related fixtures, construction of facilities that may
be used by more than one segment of public higher education
(intersegmental), the renovation and reconstruction of facilities,
site acquisition, the equipping of new, renovated, or reconstructed
facilities, which equipment shall have an average useful life of 10
years; and to provide funds for the payment of preconstruction costs,
including, but not limited to, preliminary plans and working
drawings for facilities of the California Community Colleges.
Article 5. Higher Education Fiscal Provisions
100900. (a) Of the total amount of bonds authorized to be issued
and sold pursuant to Chapter 1 (commencing with Section 100800),
bonds in the total amount of two billion three hundred million
dollars ($2,300,000,000), not including the amount of any refunding
bonds issued in accordance with Section 100955, 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, the California State University, and 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 15th of each year, those
entities report their findings to the budget committees of each
house of the Legislature.
(c) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the Higher Education Facilities Finance Committee
established pursuant to Section 67353 at any different times
necessary to service expenditures required by the apportionments.
100910. (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, apply to the bonds and to this chapter and are
hereby incorporated into this chapter as though set forth in full
within this chapter.
(b) For the purposes of the State General Obligation Bond Law,
each state agency administering an appropriation of the 2004 Higher
Education 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, the
California State University, and 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.
100920. 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.
100925. There shall be collected each year and in the same manner
and at the same time as other state revenue is collected, in
addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year. It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act which is necessary to collect that additional sum.
100930. 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 100945, appropriated
without regard to fiscal years.
100935. The board, as defined in subdivision (b) of Section
100910, 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 100910, 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.
100940. 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.
100945. (a) For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds that
have been authorized by the Higher Education Facilities Finance
Committee to be sold for the purpose of carrying out this chapter.
Any amounts withdrawn shall be deposited in the 2004 Higher Education
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, the California State University, or
the California Community Colleges 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. Requests
forwarded by the California Community Colleges shall be accompanied
by a five-year capital outlay plan reflecting the needs and
priorities of the community college system, prioritized on a
statewide basis.
100950. All money deposited in the 2004 Higher Education 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.
100955. 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.
100960. 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. 31.5. Part 68.2 (commencing with Section 100800) is added to
the Education Code, to read:
PART 68.2. KINDERGARTEN-UNIVERSITY PUBLIC EDUCATION FACILITIES
BOND ACT OF 2004
CHAPTER 1. GENERAL
100800. This part shall be known and may be cited as the
Kindergarten-University Public Education Facilities Bond Act of 2004.
100801. The incorporation of, or reference to, any provision of
California statutory law in this part includes all acts amendatory
thereof and supplementary thereto.
100803. (a) Bonds in the total amount of twelve billion three
hundred million dollars ($12,300,000,000), not including the amount
of any refunding bonds issued in accordance with Sections 100844 and
100955, or so much thereof as is necessary, may be issued and sold to
provide a fund to be used for carrying out the purposes expressed in
this part and to reimburse the General Obligation Bond Expense
Revolving Fund pursuant to Section 16724.5 of the Government Code.
The bonds, when sold, shall be and constitute a valid and binding
obligation of the State of California, and the full faith and credit
of the State of California is hereby pledged for the punctual payment
of the principal of, and interest on, the bonds as the principal and
interest become due and payable.
(b) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the State School Building Finance Committee established
by Section 15909 or the Higher Education Facilities Finance
Committee established pursuant to Section 67353, as the case may be,
at any different times necessary to service expenditures required by
the apportionments.
CHAPTER 2. KINDERGARTEN THROUGH 12TH GRADE
Article 1. Kindergarten Through 12th Grade School Facilities
Program Provisions
100810. The proceeds of bonds issued and sold pursuant to Article
2 (commencing with Section 100825) shall be deposited in the 2004
State School Facilities Fund, which is established in Section
17070.40, and shall be allocated by the State Allocation Board
pursuant to this chapter.
100815. All moneys deposited in the 2004 State Facilities Fund
for the purposes of this chapter shall be available and,
notwithstanding any other provision of law to the contrary, are
hereby appropriated 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),
as set forth in Section 100820, to provide funds to repay any money
advanced or loaned to the 2004 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.
100820. (a) The proceeds from the sale of bonds, issued and sold
for the purposes of this chapter, as specified in subdivision (a) of
Section 100810 shall be allocated in accordance with the following
schedule:
(1) The amount of five billion two hundred sixty million dollars
($5,260,000,000) for project funding for new construction of school
facilities of applicant school districts under Chapter 12.5
(commencing with Section 17070.10) of Part 10, including, but not
limited to, hardship applications.
(A) Of the amount allocated pursuant to this paragraph, up to
three hundred million dollars ($300,000,000) shall be available for
providing school facilities to charter schools pursuant to a statute
enacted after the effective date of the act enacting this section.
(B) If the Housing and Emergency Shelter Trust Fund Act of 2002 is
submitted to the voters at the November 5, 2002, general election
and fails passage by the voters, of the amount allocated pursuant to
this paragraph, twenty-five million dollars ($25,000,000) shall be
available for the purposes of Sections 51451.5, 51453, and 51455 of
the Health and Safety Code.
(2) The amount of two billion two hundred fifty million dollars
($2,250,000,000) for the modernization of school facilities pursuant
to Chapter 12.5 (commencing with Section 17070.10) of Part 10,
including, but not limited to, hardship applications.
(3) The amount of two billion four hundred forty million dollars
($2,440,000,000) for deposit into the 2004 Critically Overcrowded
School Facilities Account established within the 2004 State School
Facilities Fund pursuant to subdivision (e) of Section 17078.10 for
the purposes set forth in Article 11 (commencing with Section
17078.10) of Chapter 12.5 of Part 10 relating to critically
overcrowded schools, including, but not limited to, hardship
applications, and any other new construction or modernization
projects as authorized pursuant to Section 17078.30.
(4) The amount of fifty million dollars ($50,000,000) for the
purposes set forth in Article 10.6 (commencing with Section 17077.40)
of Chapter 12.5 of Part 10 relating to joint-use projects,
including, but not limited to, hardship applications.
(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:
(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.
(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 for funding classrooms
for severely handicapped pupils, or for funding classrooms for county
community school pupils.
(d) (1) The Legislature may amend this section to adjust the
funding amounts specified in paragraphs (1) to (4), inclusive, of
subdivision (a), only by either of the following methods:
(A) By a statute, passed in each house of the Legislature by
rollcall vote entered in the respective journals, by not less than
two-thirds of the membership in each house concurring, if the statute
is consistent with, and furthers the purposes of, this chapter.
(B) By a statute that becomes effective only when approved by the
voters.
(2) Amendments pursuant to this subdivision may adjust the amounts
to be expended pursuant to paragraphs (1) to (4), inclusive, of
subdivision (a), but may not increase or decrease the total amount to
be expended pursuant to that subdivision.
(e) From the total amounts set forth in paragraphs (1) to (6),
inclusive, of subdivision (a), a total of no more than twenty million
dollars ($20,000,000) shall be used for the costs of energy
conservation adjustments authorized pursuant to Section 17077.35.
(f) Funds available pursuant to this section may be used for
acquisition of school facilities authorized pursuant to Section
17280.5.
Article 2. Kindergarten Through 12th Grade School Facilities
Fiscal Provisions
100825. (a) Of the total amount of bonds authorized to be issued
and sold pursuant to Chapter 1 (commencing with Section 100800),
bonds in the total amount of ten billion dollars ($10,000,000,000),
not including the amount of any refunding bonds issued in accordance
with Section 100844, 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.
100827. 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 of Public
Instruction, or their designated representatives, all of whom shall
serve thereon without compensation, and a majority of whom shall
constitute a quorum, is continued in existence for the purpose of
this chapter. The Treasurer shall serve as chairperson of the
committee. Two Members of the Senate appointed by the Senate
Committee on Rules, and two Members of the Assembly appointed by the
Speaker of the Assembly, shall meet with and provide advice to the
committee to the extent that the advisory participation is not
incompatible with their respective positions as Members of the
Legislature. For the purposes of this chapter, the Members of the
Legislature shall constitute an interim investigating committee on
the subject of this chapter and, as that committee, shall have the
powers granted to, and duties imposed upon, those committees by the
Joint Rules of the Senate and the Assembly. The Director of Finance
shall provide assistance to the committee as it may require. The
Attorney General of the state is the legal adviser of the committee.
100830. (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, 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 2004 State School Facilities Fund.
100832. Upon request of the State Allocation Board from time to
time, supported by a statement of the apportionments made and to be
made for the purposes described in Sections 100815 and 100820, 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.
100834. 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.
100835. 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 100840, appropriated
without regard to fiscal years.
100836. 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.
100838. 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.
100840. For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds that
have been authorized by the State School Building Finance Committee
to be sold for the purpose of carrying out this chapter. Any amounts
withdrawn shall be deposited in the 2004 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.
100842. All money deposited in the 2004 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.
100844. 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.
100846. The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this chapter are
not "proceeds of taxes" as that term is used in Article XIII B of
the California Constitution, the disbursement of these proceeds is
not subject to the limitations imposed by that article.
CHAPTER 3. HIGHER EDUCATION FACILITIES
Article 1. General
100850. (a) The system of public higher education in this state
includes the University of California, the Hastings College of the
Law, the California State University, the California Community
Colleges, and their respective off-campus centers.
(b) The 2004 Higher Education 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, the
California State University, and the California Community Colleges.
Article 2. Program Provisions Applicable to the University of
California and the Hastings College of the Law
100852. (a) From the proceeds of bonds issued and sold pursuant
to Article 5 (commencing with Section 100900), the sum of six hundred
ninety million dollars ($690,000,000) shall be deposited in the 2004
Higher Education Capital Outlay Bond Fund for the purposes of this
article. When appropriated, these funds shall be available for
expenditure for the purposes of this article.
(b) The purposes of this article include assisting in meeting the
capital outlay financing needs of the University of California and
the Hastings College of the Law.
(c) Proceeds from the sale of bonds issued and sold for the
purposes of this article may be used to fund construction on existing
campuses, including the construction of buildings and the
acquisition of related fixtures, construction of facilities that may
be used by more than one segment of public higher education
(intersegmental), the renovation and reconstruction of facilities,
site acquisition, the equipping of new, renovated, or reconstructed
facilities, which equipment shall have an average useful life of 10
years; and to provide funds for the payment of preconstruction costs,
including, but not limited to, preliminary plans and working
drawings for facilities of the University of California and the
Hastings College of the Law.
Article 3. Program Provisions Applicable to the California
State University
100853. (a) From the proceeds of bonds issued and sold pursuant
to Article 5 (commencing with Section 100900), the sum of six hundred
ninety million dollars ($690,000,000) shall be deposited in the 2004
Higher Education Capital Outlay Bond Fund for the purposes of this
article. When appropriated, these funds shall be available for
expenditure for the purposes of this article.
(b) The purposes of this article include assisting in meeting the
capital outlay financing needs of the California State University.
(c) Proceeds from the sale of bonds issued and sold for the
purposes of this article may be used to fund construction on existing
campuses, including the construction of buildings and the
acquisition of related fixtures, construction of facilities that may
be used by more than one segment of public higher education
(intersegmental), the renovation and reconstruction of facilities,
site acquisition, the equipping of new, renovated, or reconstructed
facilities, which equipment shall have an average useful life of 10
years; and to provide funds for the payment of preconstruction costs,
including, but not limited to, preliminary plans and working
drawings for facilities of the California State University.
Article 4. Program Provisions Applicable to the California
Community Colleges
100854. (a) From the proceeds of bonds issued and sold pursuant
to Article 5 (commencing with Section 100900), the sum of nine
hundred twenty million dollars ($920,000,000) shall be deposited in
the 2004 Higher Education Capital Outlay Bond Fund for the purposes
of this article. When appropriated, these funds shall be available
for expenditure for the purposes of this article.
(b) The purposes of this article include assisting in meeting the
capital outlay financing needs of the California Community Colleges.
(c) Proceeds from the sale of bonds issued and sold for the
purposes of this article may be used to fund construction on existing
campuses, including the construction of buildings and the
acquisition of related fixtures, construction of facilities that may
be used by more than one segment of public higher education
(intersegmental), the renovation and reconstruction of facilities,
site acquisition, the equipping of new, renovated, or reconstructed
facilities, which equipment shall have an average useful life of 10
years; and to provide funds for the payment of preconstruction costs,
including, but not limited to, preliminary plans and working
drawings for facilities of the California Community Colleges.
Article 5. Higher Education Fiscal Provisions
100900. (a) Of the total amount of bonds authorized to be issued
and sold pursuant to Chapter 1 (commencing with Section 100800),
bonds in the total amount of two billion three hundred million
dollars ($2,300,000,000), not including the amount of any refunding
bonds issued in accordance with Section 100955, 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, the California State University, and 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 15th of each year, those
entities report their findings to the budget committees of each
house of the Legislature.
(c) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the Higher Education Facilities Finance Committee
established pursuant to Section 67353 at any different times
necessary to service expenditures required by the apportionments.
100910. (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, apply to the bonds and to this chapter and are
hereby incorporated into this chapter as though set forth in full
within this chapter.
(b) For the purposes of the State General Obligation Bond Law,
each state agency administering an appropriation of the 2004 Higher
Education 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, the
California State University, and 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.
100920. 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.
100925. There shall be collected each year and in the same manner
and at the same time as other state revenue is collected, in
addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year. It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act which is necessary to collect that additional sum.
100930. 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 100945, appropriated
without regard to fiscal years.
100935. The board, as defined in subdivision (b) of Section
100910, 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 100910, 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.
100940. 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.
100945. (a) For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds that
have been authorized by the Higher Education Facilities Finance
Committee to be sold for the purpose of carrying out this chapter.
Any amounts withdrawn shall be deposited in the 2004 Higher Education
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, the California State University, or
the California Community Colleges 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. Requests
forwarded by the California Community Colleges shall be accompanied
by a five-year capital outlay plan reflecting the needs and
priorities of the community college system, prioritized on a
statewide basis.
100950. All money deposited in the 2004 Higher Education 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.
100955. 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.
100960. 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.
100970. This chapter shall only become operative upon approval of
the voters pursuant to subdivision (c) of Section 35 of the act
adding this chapter.
SEC. 32. Section 15490 of the Government Code is amended to read:
15490. (a) There is in the state government the State Allocation
Board, consisting of the Director of Finance, the Director of General
Services, a person appointed by Governor, and the Superintendent of
Public Instruction. The board shall also include three Members of
the Senate appointed by the Senate Committee on Rules, two of whom
shall belong to the majority party and one of whom shall belong to
the minority party, and three Members of the Assembly appointed by
the Speaker of the Assembly, two of whom shall belong to the majority
party and one of whom shall belong to the minority party.
(b) The members of the board and the Members of the Legislature
meeting with the board shall receive no compensation for their
services but shall be reimbursed for their actual and necessary
expenses incurred in connection with the performance of their duties.
(c) The Director of General Services shall provide assistance to
the board as the board requires. The board may, by a majority vote
of all members, do one or more of the following:
(1) Appoint an employee to report directly to the board as
assistant executive officer.
(2) Fix the salary and other compensation of the assistant
executive officer.
(3) Employ additional staff members, and secure office space and
furnishings, as necessary to support the assistant executive officer
in the performance of his or her duties.
SEC. 33. Section 65995.7 of the Government Code is amended to
read:
65995.7. (a) (1) If state funds for new school facility
construction are not available, the governing board of a school
district that complies with Section 65995.5 may increase the
alternative fee, charge, dedication, or other requirement calculated
pursuant to subdivision (c) of Section 65995.5 by an amount that may
not exceed the amount calculated pursuant to subdivision (c) of
Section 65995.5, except that for the purposes of calculating this
additional amount, the amount identified in paragraph (2) of
subdivision (c) of Section 65995.5 may not be subtracted from the
amount determined pursuant to paragraph (1) of subdivision (c) of
Section 65995.5. For purposes of this section, state funds are not
available if the State Allocation Board is no longer approving
apportionments for new construction pursuant to Article 5 (commencing
with Section 17072.20) of Chapter 12.5 of Part 10 of the Education
Code due to a lack of funds available for new construction. Upon
making a determination that state funds are no longer available, the
State Allocation Board shall notify the Secretary of the Senate and
the Chief Clerk of the Assembly, in writing, of that determination
and the date when state funds are no longer available for publication
in the respective journal of each house. For the purposes of making
this determination, the board shall not consider whether funds are
available for, or whether it is making preliminary apportionments or
final apportionments pursuant to, Article 11 (commencing with Section
17078.10).
(2) Paragraph (1) shall become inoperative commencing on the
effective date of the measure that amended this section to add this
paragraph, and shall remain inoperative through the earlier of either
of the following:
(A) November 5, 2002, if the voters reject the Kindergarten
University Public Education Facilities Bond Act of 2002, after which
date paragraph (1) shall again become operative.
(B) The date of the 2004 direct primary election after which date
paragraph (1) shall again become operative.
(b) A governing board may offer a reimbursement election to the
person subject to the fee, charge, dedication, or other requirement
that provides the person with the right to monetary reimbursement of
the supplemental amount authorized by this section, to the extent
that the district receives funds from state sources for construction
of the facilities for which that amount was required, less any amount
expended by the district for interim housing. At the option of the
person subject to the fee, charge, dedication, or other requirement
the reimbursement election may be made on a tract or lot basis.
Reimbursement of available funds shall be made within 30 days as they
are received by the district.
(c) A governing board may offer the person subject to the fee,
charge, dedication, or other requirement an opportunity to negotiate
an alternative reimbursement agreement if the terms of the agreement
are mutually agreed upon.
(d) A governing board may provide that the rights granted by the
reimbursement election or the alternative reimbursement agreement are
assignable.
SEC. 33.2. Section 51451.5 is added to the Health and Safety Code,
to read:
51451.5. The Homebuyer Down Payment Assistance Program of 2002 is
hereby established, to provide assistance in the amount of the
applicable school facility fee on affordable housing developments.
The Homebuyer Down Payment Assistance Program of 2002 shall, with
funds provided by the Housing and Emergency Shelter Trust Fund Act of
2002 (Part 11 (commencing with with Section 53500)), provide
the following assistance:
(a) Downpayment assistance to the purchaser of any newly
constructed residential structure in a development project in an
economically distressed area in the amount of school facility fees
paid pursuant to Section 65995.5 or 65995.7 of the Government Code,
less the amount that would be required pursuant to subdivision (b) of
Section 65995 of the Government Code, notwithstanding Sections
65995.5 and 65995.7 of the Government Code, if all of the following
conditions are met:
(1) The development project is located in a county with an
unemployment rate that equals or exceeds 125 percent of the state
unemployment rate.
(2) Five hundred or more residential structures have been
constructed in the county during 2001.
(3) A building permit for an eligible residential structure in the
development project is issued by the local agency on or after
January 1, 2002.
(4) The eligible residential structure is to be owner occupied for
at least five years. If a structure is owner occupied for fewer
than five years, the recipient of the assistance shall repay the
School Facilities Fee Assistance Fund the amount of the assistance,
on a prorated basis.
(5) The sales price of the eligible residential structure does not
exceed 175 percent of the median sales price of residential
structures in the county during the average of the previous five
years.
(b) Downpayment assistance to the purchaser of any newly
constructed residential structure in a development project in the
aggregate amount of school facility fees paid pursuant to one, all,
or any combination of subdivision (b) of Section 65995, Section
65995.5, or Section 65995.7 of the Government Code for the eligible
residential structure if all of the following conditions are met:
(1) The assistance is provided to a qualified first-time home
buyer pursuant to Section 50068.5.
(2) The qualified first-time home buyer does not exceed the lower
or moderate-income requirements in Section 50093.
(3) A building permit for an eligible residential structure in the
development project is issued by the local agency on or after
January 1, 2002.
(4) The eligible residential structure is to be owner occupied for
at least five years. If a structure is owner occupied for fewer
than five years, the recipient of the assistance shall repay the
School Facilities Fee Assistance Fund the amount of the assistance,
on a prorated basis.
SEC. 33.4. Section 51453 is added to the Health and Safety Code,
to read:
51453. Notwithstanding Section 51452, the sum of fifty million
dollars ($50,000,000) transferred to the School Facilities Fee
Assistance Fund pursuant to subparagraph (A) of paragraph (7) of
subdivision (a) of Section 53533 is continuously appropriated to the
department for allocation for the agency for administrative costs and
to make payments to purchasers of newly constructed residential
structures pursuant to Section 51451.5 from that fund for a period of
four years, as follows:
(a) Twenty-five million dollars ($25,000,000) shall be available
for the program set forth in subdivision (a) of Section 51451.5,
except that if less than 50 percent of these funds are expended
within 24 months, all or part of those funds shall be available for
the program set forth in subdivision (b) of Section 51451.5 at the
discretion of the executive director of the agency.
(b) Twenty-five million dollars ($25,000,000) shall be available
for the program set forth in subdivision (b) of Section 51451.5,
except that if less than 50 percent of these funds are expended
within 24 months, all or part of those funds shall be available for
the program set forth in subdivision (a) of Section 51451.5 at the
discretion of the executive director of the agency.
(c) If after 48 months, more than 20 percent of the funds
identified in subdivisions (a) and (b) are not expended, the
executive director of the agency may make all or part of those funds
available to the California Homebuyer's Downpayment Assistance
Program, as authorized under Chapter 11 (commencing with Section
51500).
(d) All repayments of disbursed funds pursuant to this chapter or
any interest earned from the investment in the Surplus Money
Investment Fund or any other moneys accruing to the fund from
whatever source shall be returned to the fund and is available for
allocation by the agency to the program established pursuant to
Section 51451.5.
SEC. 33.6. Section 51455 of the Health and Safety Code is amended
to read:
51455. (a) Except as provided in subdivision (b), Sections 51450,
51451, 51452, and 51454 shall not be operative on and after January
1, 2002.
(b) Except as provided in Section 51453, the School Facilities Fee
Assistance Fund established by Section 51452 and the programmatic
authority necessary to operate the programs authorized by Section
51451 shall continue on and after January 1, 2002, only with respect
to any repayment obligation pertaining to that assistance or to any
regulatory agreement imposed as a condition of that assistance.
SEC. 34. (a) There is hereby appropriated the sum of six hundred
fifty-one million two hundred eighty-nine thousand dollars
($651,289,000) from the Public Buildings Construction Fund, as
established in Section 15845 of the Government Code, in accordance
with the following schedule:
(1) Ten million four hundred eighty-seven thousand dollars
($10,487,000) to the California State Library for project
10.04.004-Joint Library: J. Paul Leonard Library and Sutro Library -
Preliminary plans, working drawings, construction, and equipment.
(2) The sum of two hundred seventy-nine million twenty-five
thousand dollars ($279,025,000) to the University of California for
the following projects:
(A) Sixty-six million one hundred twenty-six thousand dollars
($66,126,000) for Davis Campus: project 99.03.205-Veterinary
Medicine 3A -Construction.
(B) Fifty-five million three hundred nineteen thousand dollars
($55,319,000) for Irvine Campus: project 99.09.325-Natural Sciences
Unit 2 -Construction and equipment.
(C) Sixteen million four hundred forty-nine thousand dollars
($16,449,000) for Merced Campus: project 99.11.010-Site Development
and Infrastructure, Phase 2 - Working drawings and construction.
(D) Thirty-five million six hundred seventy-five thousand dollars
($35,675,000) for Riverside Campus: project 99.05.160-Engineering
Building Unit 2 - Construction.
(E) Thirty-seven million three hundred sixty-nine thousand dollars
($37,369,000) for San Diego Campus: project 99.06.315-Engineering
Building Unit 3B - Construction and equipment.
(F) Twenty-six million nine hundred four thousand dollars
($26,904,000) for Santa Barbara Campus: project 99.08.110-Life
Sciences Building -Construction and equipment.
(G) Forty-one million one hundred eighty-three thousand dollars
($41,183,000) for Santa Cruz Campus: project 99.07.125-Engineering
Building -Construction and equipment.
(3) The sum of one hundred ninety-one million three hundred nine
thousand dollars ($191,309,000) to the California State University
for the following projects:
(A) Eighty-five million thirty-five thousand dollars ($85,035,000)
for San Francisco Campus: project 06.84.104-Joint Library: J. Paul
Leonard Library and Sutro Library - Preliminary plans, working
drawings, construction, and equipment.
(B) Thirty-eight million one hundred eight thousand dollars
($38,108,000) for Los Angeles Campus: project 06.73.094-Physical
Science Replacement Building - Preliminary plans, working drawings,
construction, and equipment.
(C) Twenty-four million two hundred fifteen thousand dollars
($24,215,000) for San Marcos Campus: project 06.68.121-Academic Hall
II, Building 13 - Preliminary plans, working drawings, and
construction, and equipment.
(D) Forty-three million nine hundred fifty-one thousand dollars
($43,951,000) for Monterey Bay Campus: project 06.74.006-Library
-Construction.
(4) The sum of one hundred seventy million four hundred
sixty-eight thousand dollars ($170,468,000) to the Board of Governors
of the California Community Colleges for the following projects:
(A) Eight million nine hundred seventy-five thousand dollars
($8,975,000) for Rancho Santiago Community College District, Santiago
Canyon College project 40.48.118-Learning Resource Center -
Construction and equipment.
(B) Seventeen million three hundred forty-three thousand dollars
($17,343,000) for State Center Community College District, Madera
County Educational Center project 40.64.302-Academic Facilities,
Phase 1B -Construction and equipment.
(C) Thirteen million nine hundred ten thousand dollars
($13,910,000) for Sequoias Community College District, College of the
Sequoias project 40.56.110-Multimedia Learning Resource Center -
Construction and equipment.
(D) Seventeen million five hundred twenty thousand dollars
($17,520,000) for Victor Valley Community College District, Victor
Valley Community College project 40.66.115-Advanced Technology
Complex - Construction and equipment.
(E) Twelve million five hundred fifty-five thousand dollars
($12,555,000) for San Luis Obispo County Community College District,
Cuesta College project 40.51.111-Library Addition Reconstruction -
Construction and equipment.
(F) Ten million five hundred forty-eight thousand dollars
($10,548,000) for Mount San Jacinto Community College District,
Menifee Valley Center project 40.34.211-Learning Resource Center -
Construction and equipment.
(G) Thirty-five million seven hundred seventy thousand dollars
($35,770,000) for Los Rios Community College District, Folsom Lake
Center project 40.27.502-Instructional Facilities, Phase 1B -
Construction and equipment.
(H) Eight million four hundred thirty-eight thousand dollars
($8,438,000) for Citrus Community College District, Citrus College
project 40.09.120-Math/Science Building Replacement - Construction
and equipment.
(I) Twenty-nine million three hundred fifty-eight thousand dollars
($29,358,000) for Palomar Community College District, Palomar
College project 40.38.113-High Technology Laboratory-Classroom
Building - Construction and equipment.
(J) Seven million twenty-three thousand dollars ($7,023,000) for
Mendocino-Lake Community College District, Mendocino College project
40.29.117-Science Building - Construction and equipment.
(K) Nine million twenty-eight thousand dollars ($9,028,000) for
Merced Community College District, Merced College project
40.30.114-Interdisciplinary Academic Center - Construction and
equipment.
(b) The State Public Works Board may issue lease-revenue bonds,
notes, or bond anticipation notes pursuant to Chapter 5 (commencing
with Section 15830) of Part 10b of Division 3 of Title 2 of the
Government Code to finance the design or construction, or both, of
the projects authorized by subdivision (a).
(c) The State Public Works Board and the participating agency or
department may obtain interim financing for the project costs
authorized in subdivision (a) from any appropriate source, including,
but not limited to, the Pooled Money Investment Account pursuant to
Sections 16312 and 16313 of the Government Code.
(d) Each participating agency or department having a project
authorized in subdivision (a) is authorized and directed to execute
and deliver any and all leases, contracts, agreements, or other
documents necessary or advisable to consummate the sale of bonds or
otherwise effectuate the financing of the projects scheduled in
subdivision (a).
(e) The State Public Works Board may authorize the augmentation of
the cost of construction of the projects scheduled in subdivision
(a) pursuant to that board's authority under Section 13332.11 of the
Government Code. In addition, the board may authorize any additional
amount necessary to establish a reasonable construction reserve and
to pay the cost of financing including the payment of interest during
the design and construction of the projects, the costs of financing
a debt service fund, and the cost of issuance of permanent financing
for the projects. This additional amount may include interest
payable on any interim financing obtained.
(f) In the event that the bonds authorized for projects in
subdivision (a) are not sold, the participating agency or department
that has initiated loans shall commit a sufficient portion of its
current support appropriation, as determined by the Department of
Finance, to repay any interim financing. It is the intent of the
Legislature that this commitment be made until all interim financing
is repaid either through the proceeds of the sale of bonds or from an
appropriation.
(g) Notwithstanding any other provision of law, the funds
appropriated in subdivision (a) shall be available for encumbrance
until June 30, 2008.
(h) The project identified under subparagraph (B) of paragraph (2)
of subdivision (a) for the University of California-Irvine Natural
Sciences Unit 2 may utilize design-build construction consistent with
the University of California's practices, policies, and procedures.
(i) The State Public Works Board shall not itself be deemed a lead
or responsible agency for purposes of the California Environmental
Quality Act as set forth in Division 13 (commencing with Section
21000) of the Public Resources Code for any activities under the
State Building Construction Act of 1955 as set forth in Part 10b
(commencing with Section 15800) of Division 3 of Title 2 of the
Government Code). This subdivision does not exempt any participating
agency or department from the requirements of the California
Environmental Quality Act. This subdivision is declarative of
existing law.
SEC. 35. (a) Section 30 of this act shall become effective only
upon approval by the voters, at the November 5, 2002, statewide
general election, of the Kindergarten-University Public Education
Facilities Bond Act of 2002, as set forth in Section 30 of this act.
(b) Section 31 of this act shall become effective only upon
approval by the voters, at the 2004 direct primary election, of the
Kindergarten-University Public Education Facilities Bond Act of 2004,
as set forth in Section 31 of this act.
(c) If the voters do not approve the Kindergarten-University
Public Education Facilities Bond Act of 2004 at the 2004 direct
primary election, the Kindergarten-University Public Education
Facilities Bond Act of 2004, as set forth in Section 31.5 of this act
shall be submitted to the voters for approval at the November 2,
2004, statewide general election, as set forth in Section 31.5 of
this act.
SEC. 36. (a) Notwithstanding any other provision of law, with
respect to the Kindergarten-University Public Education Facilities
Bond Act of 2002 as set forth in Section 30 of this act, all ballots
of the November 5, 2002, statewide general election, shall have
printed thereon and in a square thereof, exclusively the words:
"Kindergarten-University Public Education Facilities Bond Act of 2002"
and in the same square under those words, the following in 8-point
type: "This thirteen billion fifty million dollar ($13,050,000,000)
bond issue will provide funding for necessary education facilities to
relieve overcrowding and to repair older schools. Funds will be
targeted to areas of the greatest need and must be spent according to
strict accountability measures. Funds will also be used to upgrade
and build new classrooms in the California Community Colleges, the
California State University, and the University of California, to
provide adequate higher education facilities to accommodate the
growing student enrollment. These bonds may be used only for
eligible projects." Opposite the square, there shall be left spaces
in which the voters may place a cross in the manner required by law
to indicate whether they vote for or against the act.
(b) Notwithstanding any other provision of law, with respect to
the Kindergarten-University Public Education Facilities Bond Act of
2004 as set forth in Section 31 of this act, all ballots of the 2004
direct primary election shall have printed thereon and in a square
thereof, exclusively the words: "Kindergarten-University Public
Education Facilities Bond Act of 2004," and in the same square under
those words, the following in 8-point type: "This twelve billion
three hundred million dollar ($12,300,000,000) bond issue will
provide funding for necessary education facilities to relieve
overcrowding and to repair older schools. Funds will be targeted to
areas of the greatest need and must be spend according to strict
accountability measures. Funds will also be used to upgrade and
build new classrooms in the California Community Colleges, the
California State University, and the University of California, to
provide adequate higher education facilities to accommodate the
growing student enrollment. These bonds may be used only for
eligible projects." Opposite the square, there shall be left spaces
in which the voters may place a cross in the manner required by law
to indicate whether they vote for or against the act.
(c) If the Kindergarten-University Public Education Facilities
Bond Act of 2004 is submitted to the voters pursuant to subdivision
(c) of Section 35 of this act, notwithstanding any other provision of
law, with respect to the Kindergarten-University Public Education
Facilities Bond Act of 2004 as set forth in Section 31.5 of this act,
all ballots of the 2004 statewide general election shall have
printed thereon and in a square thereof, exclusively the words:
"Kindergarten-University Public Education Facilities Bond Act of
2004," and in the same square under those words, the following in
8-point type: "This twelve billion three hundred million dollar
($12,300,000,000) bond issue will provide funding for necessary
education facilities to relieve overcrowding and to repair older
schools. Funds will be targeted to areas of the greatest need and
must be spend according to strict accountability measures. Funds
will also be used to upgrade and build new classrooms in the
California Community Colleges, the California State University, and
the University of California, to provide adequate higher education
facilities to accommodate the growing student enrollment. These
bonds may be used only for eligible projects." Opposite the square,
there shall be left spaces in which the voters may place a cross in
the manner required by law to indicate whether they vote for or
against the act.
(d) Notwithstanding Sections 13247 and 13281 of the Elections
Code, the language in subdivision (a), (b), or (c), as appropriate,
shall be the only language included in the ballot label for the
condensed statement of the ballot title, and the Attorney General
shall not supplement, subtract from, or revise that language, except
that the Attorney General may include the financial impact summary
prepared pursuant to Section 9087 of the Elections Code and Section
88003 of the Government Code. The ballot label is the condensed
statement of the ballot title and the financial impact summary.
(e) Where the voting in the election is done by means of voting
machines used pursuant to law in a manner that carries out the intent
of this section, the use of the voting machines and the expression
of the voters' choice by means thereof are in compliance with this
section.
SEC. 37. 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 provide adequate school facilities to house the
growing pupil population attending the California schools, to
renovate existing facilities, to provide for the wiring and cabling
of schools for education technology, to provide for joint-use
facilities, and to provide adequate higher education facilities to
accommodate the growing number of students, it is necessary that this
act take effect immediately.