BILL NUMBER: SB 655 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 21, 2003
INTRODUCED BY Senator Escutia
FEBRUARY 21, 2003
An act to add Article 9 (commencing with Section 70500) to Chapter
5.7 of Title 8 of the Government Code, relating to financing the
construction and renovation of court facilities, by providing the
funds necessary therefor through the issuance and sale of bonds of
the State of California and by providing for the handling and
disposition of those funds.
LEGISLATIVE COUNSEL'S DIGEST
SB 655, as amended, Escutia. California Court Facilities
Construction and Renovation Bond Act of 2004.
Existing law, the Trial Court Facilities Act of 2002, establishes
the State Court Facilities Construction Fund and provides that money
in that fund may be used to acquire, rehabilitate, construct, or
finance court facilities, as defined, and to implement trial court
projects, as specified.
This bill would enact the California Court Facilities Construction
and Renovation Bond Act of 2004 which, if adopted, would authorize
the issuance, pursuant to the State General Obligation Bond Law, of
up to $1,850,000,000 $4,146,000,000 in
bonds, the proceeds of which would be deposited in the State Court
Facilities Construction Fund for the purposes specified in existing
law.
The bill would provide for submission of the bond act to the
voters at an unspecified statewide election in 2004 in accordance
with specified law. The bill would also impose certain duties
on the Judicial Council.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares the following:
(a) The Trial Court Facilities Act of 2002 (Chapter 5.7
(commencing with Section 70301) of Title 8 of the Government Code)
provides for the transfer of a county's responsibility to provide
necessary and suitable court facilities to the Judicial Council
pursuant to an agreement as negotiated between the county and the
Judicial Council.
(b) That act established the State Court Facilities Construction
Fund for the purpose of collecting, from various sources, funds
dedicated to the capital facilities needs of the judicial branch.
SEC. 2. It is the intent of the Legislature that the proceeds
of bonds issued and sold pursuant to this measure be distributed
consistent with Article 7 (commencing with Section 70391) of Chapter
5.7 of Title 8 of the Government Code. Therefore, the Judicial
Council shall do all of the following:
(a) Identify for capital outlay the projects that may be built
with funds available from bond proceeds.
(b) Establish priorities for construction.
(c) Recommend to the Governor and the Legislature the projects to
be funded from bond proceeds.
(d) Submit the cost of projects proposed to be funded to the
Department of Finance for inclusion in the Governor's budget.
SEC. 3. Article 9 (commencing with Section 70500) is added
to Chapter 5.7 of Title 8 of the Government Code, to read:
Article 9. California Court Facilities Construction and
Renovation Bond Act of 2004
70500. (a) This article shall be known and may be cited as the
California Court Facilities Construction and Renovation Bond Act of
2004.
(b) As used in this article, the following terms have the
following meanings:
(1) "Committee" means the State Court Facilities Construction Fund
Committee created pursuant to Section 70504.
(2) "Fund" means the State Court Facilities Construction Fund as
established in Section 70371.
70501. The proceeds of bonds issued and sold pursuant to this
article shall be deposited in the fund.
70502. Bonds in an amount not to exceed one billion
eight hundred fifty million dollars ($1,850,000,000)
four billion one hundred forty-six million dollars ($4,146,000,000)
, or so much thereof as necessary, not including the amount of
any refunding bonds, or so much thereof as is necessary, may be
issued and sold to be used in accordance with, and for carrying out
the purposes expressed in, this chapter and to reimburse the General
Obligation Bond Expense Revolving Fund pursuant to Section 16724.5.
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.
70503. The bonds authorized by this article 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), and all of the provisions
of that law apply to the bonds and to this article and are hereby
incorporated in this article as though set forth in full in this
article, except Section 16727 to the extent that it may be
inconsistent with this article.
70504. (a) Solely for the purpose of authorizing the issuance and
sale pursuant to the State General Obligation Bond Law of the bonds
authorized by this article, the State Court Facilities Construction
Fund Committee is established and is designated as the "committee" as
that term is used in the State General Obligation Bond Law. The
committee is composed of a representative of the Judicial Council,
the Director of Finance or his or her designee, a representative from
the counties, a representative from the trial courts appointed by
the Judicial Council, and ____. The ____ shall serve as chairperson
of the committee. A majority of the committee may act for the
committee.
(b) For purposes of the State General Obligation Bond Law, the
Judicial Council is designated the "board."
(c) The committee shall determine whether it is necessary or
desirable to issue bonds authorized pursuant to this article in order
to carry out the actions specified 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.
70505. 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.
70506. Notwithstanding Section 13340, there is hereby
appropriated from the General Fund in the State Treasury, for the
purposes of this article, 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 article, as the
principal and interest become due and payable.
(b) The sum necessary to carry out Section 70507, appropriated
without regard to fiscal years.
70507. For the purposes of carrying out this article, the
Department 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 committee to be sold for the purpose of
carrying out this article. Any amounts withdrawn shall be deposited
in the fund. Any money made available under this section shall be
returned to the General Fund, with interest at the rate earned by the
money in the Pooled Money Investment Account during the time the
money was withdrawn from the General Fund pursuant to this section,
from proceeds received from the sale of bonds for the purpose of
carrying out this article.
70508. All money deposited in the 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.
70509. Pursuant to Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2, the cost of bond issuance shall be
paid out of the bond proceeds.
70510. Amounts deposited in the fund pursuant to this article may
be appropriated in the annual Budget Act to the board for the actual
amount of office, personnel, and other customary and usual expenses
incurred in the direct administration of projects pursuant to this
chapter.
70511. The board may request the Pooled Money Investment Board to
make a loan from the Pooled Money Investment Account, including
other authorized forms of interim financing that include, but are not
limited to, commercial paper, in accordance with Section 16312, for
the purposes of carrying out this chapter. The amount of the request
may 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
committee in accordance with this chapter.
70512. 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, which is part of the State General Obligation Bond Law.
Approval of the voters of the state for the issuance of the bonds
described in this article includes that approval of the issuance of
any bonds issued to refund any bonds originally issued under this
article or any previously issued refunding bonds.
70513. Notwithstanding any other provision of this article, or of
the State General Obligation Bond Law, if the Treasurer sells bonds
pursuant to this article 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.
70514. The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this article 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. 3.
SEC. 4. (a) Section 2 of this act shall take effect upon the
adoption by the voters of the California Court Facilities
Construction and Renovation Bond Act of 2004, as set forth in Section
2 of this act.
(b) Section 2 of this act shall be submitted to the voters at the
2004 statewide ____ election in accordance with provisions of the
Government Code and the Elections Code governing submission of a
statewide measure to the voters.
SEC. 4.
SEC. 5. (a) Notwithstanding any other provision of law, all
ballots of the election shall have printed thereon and in a square
thereof, the words: "California Court Facilities Construction and
Renovation Bond Act of 2004" and in the same square under those
words, the following in 8-point type: "This act provides for a bond
issue in an amount not to exceed one billion eight hundred
fifty million dollars ($1,850,000,000) four billion one
hundred forty-six million dollars ($4,146,000,000) to provide
funds for the construction and renovation of court facilities in
order to improve and expand access to the courts and court services
for all residents of California." 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) 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 voting machines and the expression of
the voters' choice by means thereof are in compliance with this
section.