BILL NUMBER: AB 1368	CHAPTERED  10/08/07

	CHAPTER  334
	FILED WITH SECRETARY OF STATE  OCTOBER 8, 2007
	APPROVED BY GOVERNOR  OCTOBER 8, 2007
	PASSED THE SENATE  SEPTEMBER 6, 2007
	PASSED THE ASSEMBLY  SEPTEMBER 10, 2007
	AMENDED IN SENATE  SEPTEMBER 4, 2007
	AMENDED IN ASSEMBLY  APRIL 11, 2007

INTRODUCED BY   Assembly Member Mullin

                        FEBRUARY 23, 2007

   An act to amend Section 15150 of the Education Code, relating to
school bonds.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1368, Mullin. School bonds: school and community college
districts.
   Existing law permits the governing board of a school district or a
community college district, by resolution, to issue notes, on a
negotiated or competitive-bid basis, maturing within a period not to
exceed one year, in anticipation of the sale of bonds by that
district at the time the notes are issued. All notes issued and any
renewal of the notes are required to be payable at a fixed time not
more than 5 years from the date of the original issuance of the note.
If the sale of the bonds does not occur prior to the maturity of the
notes, the fiscal officer of the district, in order to meet the
notes then maturing, is required to issue renewal notes for this
purpose. The renewal of a note may not be issued after the sale of
bonds in anticipation of which the original note was issued.
   A note and any renewal of a note are to be payable from the
proceeds of the sale of bonds or of any renewal of notes or from
other funds of the district lawfully available for the purpose of
repaying the notes, including state grants.
   This bill would authorize a district to issue notes that mature
within a period not to exceed 5 years, rather than one year. The
prohibition on the fiscal officer of a school district or a community
college district issuing a renewal note that would have a maturity
date later than 5 years from the date of the original issuance of the
note would be restated.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 15150 of the Education Code is amended to read:

   15150.  (a) When the governing board of a school district or a
community college district deems it in the best interests of the
district, it may by resolution, upon such terms and conditions as it
shall prescribe, issue notes, on a negotiated or competitive-bid
basis, maturing within a period not to exceed five years, in
anticipation of the sale of bonds authorized pursuant to Section
15100 or Section 15340 at the time the notes are issued. The proceeds
from the sale of the notes shall be used only for authorized
purposes of the bonds or to repay outstanding notes authorized by
this section.
   (b) All notes issued and any renewal thereof shall be payable at a
fixed time not more than five years from the date of the original
issuance of the note. If the sale of the bonds does not occur prior
to the maturity of the notes issued in anticipation of the sale, the
fiscal officer of the school district or community college district,
in order to meet the notes then maturing, shall issue renewal notes
for this purpose. The renewal of a note may not be issued after the
sale of bonds in anticipation of which the original note was issued
and the maturity date of the renewed note shall not be later than
five years from the date of the original issuance of the note.
   (c) Every note and any renewal thereof shall be payable from the
proceeds of the sale of bonds or of any renewal of notes or from
other funds of the school district or community college district
lawfully available for the purpose of repaying the notes, including
state grants. The total amount of the notes or renewals thereof
issued and outstanding may not at any time exceed the total amount of
the unsold bonds.
   (d) Interest on the notes shall be payable from proceeds of the
sale of bonds, or from the tax lawfully levied to pay principal of
and interest on the bonds.
   (e) The original issuance of notes and any renewal thereof may be
in the form of commercial paper notes. Each issuance of commercial
paper notes to repay outstanding notes shall be deemed to be a
renewal of notes subject only to the requirements of this section.