BILL NUMBER: AB 1620	CHAPTERED
	BILL TEXT

	CHAPTER  726
	FILED WITH SECRETARY OF STATE  OCTOBER 19, 2010
	APPROVED BY GOVERNOR  OCTOBER 19, 2010
	PASSED THE SENATE  OCTOBER 7, 2010
	PASSED THE ASSEMBLY  OCTOBER 7, 2010
	AMENDED IN SENATE  OCTOBER 6, 2010
	AMENDED IN ASSEMBLY  APRIL 19, 2010

INTRODUCED BY   Committee on Budget (Blumenfield (Chair))

                        JANUARY 11, 2010

   An act to amend Sections 13332.11, 13332.19, 15802, 15809,
15814.11, 15817, 15817.1, 15849.2, and 70374 of, to add Section
15770.2 to, to repeal Sections 15807 and 15815 of, and to repeal and
add Sections 15849.6 and 16352 of, the Government Code, relating to
public works projects, making an appropriation therefor, and
declaring the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1620, Committee on Budget. Public works projects.
   (1) Existing law prohibits any state agency from expending funds
appropriated for capital outlay projects, and prohibits the
expenditure of funds appropriated for design-build projects, until
the Department of Finance and the State Public Works Board have
approved preliminary plans for the project. Existing law authorizes
the board to augment a major capital outlay or design-build project
in an amount of up to 20% of the total appropriation for that
project. Prior to board action on any capital outlay or design-build
appropriation, the department is required to certify that the
requested action is in accordance with the legislatively approved
scope and cost. Existing law also requires, in specified
circumstances, the board to defer action with respect to the approval
of preliminary plans for a capital outlay project and the approval
of concept drawings and performance criteria for a design-build
project. Existing law authorizes the Director of General Services to
enter into only 7 design-build contracts pursuant to these
provisions, as specified, and effective July 1, 2009, provides that
specified provisions remain operative for these 7 design-build
projects.
   This bill would make clarifying changes to the prohibition on the
expenditure of capital outlay or design-build funds prior to approval
by the Department of Finance and the State Public Works Board. The
bill would provide that for specified projects, the department has
full authority to determine which fund sources will bear all or part
of a board augmentation. The bill would delete the department's
certification requirement and, instead, authorize the department to
change the administratively or legislatively approved scope for major
capital outlay or design-build projects and to report the changes
and associated cost implications, as prescribed. The bill would also
delete the board's requirement to defer action, in certain
circumstances, with respect to the approval of preliminary plans for
a capital outlay project or the approval of concept drawings and
performance criteria for a design-build project and, instead, require
the department to report to specified individuals 20 days prior to
the proposed board approval. The bill would make further technical
changes.
   (2) Existing law establishes the State Public Works Board and
prescribes its membership, which includes the Director of Finance.
   This bill would permit the Director of Finance to designate a
deputy to serve as his or her representative to the board and would
require that the Director of Finance or his or her representative be
chairperson of the board. The bill would authorize the board to
delegate its powers to one or more of its members, or to any officer
or employee of the board, as specified.
   (3) Existing law establishes the powers of the State Public Works
Board, for the purposes of the State Building Construction Act of
1955, including the authority to lease property as lessor, with the
approval of the Department of General Services, to state agencies,
and the authority to contract with other state agencies for the use
of real property owned by the state, as specified. Existing law
establishes certain definitions in this regard. Existing law requires
that the board contract with the Department of General Services for
the maintenance, repair, and equipment of all public buildings
constructed, acquired, or operated by the board, when the Department
of General Services elects to furnish maintenance and repair.
   This bill would authorize the board to exercise its power to lease
property, as described above, without the approval of the Department
of General Services, would authorize the board to contract or enter
into a lease with other state agencies for the use of real property
without regard to whether the property is owned by the state, would
revise the definition of public building, and would establish a
definition of state agency that would include all state agencies,
organizations, and offices, without limitation, including the
University of California and the Judicial Council. The bill would
also repeal provisions requiring the board to contract with the
Department of General Services for the maintenance, repair, and
equipment of all public buildings, as described above.
   (4) Existing law requires, except as specified, that the plans and
specifications for any public building constructed pursuant to the
State Building Construction Act of 1955 be prepared by the Department
of General Services and that any building constructed under the act
be constructed in accordance with the State Contract Act.
   This bill would repeal these provisions of law.
   (5) Existing law permits the Department of General Services, or
another state agency with the approval of the department, to lease
from the State Board of Public Works, a building constructed by the
board for a term not exceeding 35 years, as specified.
   This bill would provide that the leases described above do not
require the approval of the Department of General Services, that a
state agency or the board may act as either lessee or lessor, and
that these provisions apply to any public building, regardless of
whether it was constructed by the board.
   (6) Existing law permits the State Board of Public Works,
exclusively for the purpose of providing the financing for public
buildings or equipment through the issuance of certain indebtedness,
to buy or lease from any community college district, the Trustees of
the California State University, or the Regents of the University of
California public facilities and to sell or lease those public
facilities back to the relevant entity. Existing law prescribes the
terms of such a sale or lease and the public facilities or equipment
to which these provisions apply.
   This bill would revise and recast these provisions to authorize
the board, until July 1, 2015, to acquire by lease from any state
agency, as defined, buildings that are under the agency's control,
for the purpose of facilitating the financing of public buildings,
and then lease those buildings back to the agency and pledge the
revenues, rentals, or receipts of the lease to secure the repayment
of revenue bonds, notes, or certificates issued by the board. The
bill would provide that the board is not required to apply the
proceeds of the board's bonds, notes, or certificates to acquire,
design, construct, or otherwise improve the same public buildings
that are leased pursuant to these provisions. The bill would specify
the characteristics of the buildings to which these leases would
apply and provide that the leases do not require the approval of the
Department of General Services. The bill would require that leases
made pursuant to this authority prior to July 1, 2015, continue in
full force and effect in accordance with their applicable terms, and
that any acquisitions made and bonds issued pursuant to this
authority prior to that date are binding and valid. The bill would
also make conforming, technical changes.
   (7) Existing law authorizes the State Public Works Board to issue
bonds, notes, or other obligations to finance the acquisition or
construction of a public building, facility, or equipment, as
authorized by the Legislature. Existing law provides that this
authorization be applicable to, but not limited to, debt service
authorized by appropriations of the Legislature made prior to the
effective date of the act adding this provision.
   This bill would repeal and reinstate this provision of law.
   (8) Existing law appropriates from each special fund in the State
Treasury from which an appropriation is available for acquisition of
real property or for construction and equipment of state public works
projects an amount sufficient to provide for the payment of the
project if the project cannot be undertaken due to insufficient
appropriation of funds, as described.
   This bill would recast these provisions of law and appropriate,
without regard to fiscal years, any augmentation of an appropriation
for a state public works project from the General Fund or any other
fund from which a capital outlay appropriation has been authorized.
   (9) 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 13332.11 of the Government Code is amended to
read:
   13332.11.  (a) (1) Except as otherwise specified in paragraph (2),
no funds appropriated for capital outlay may be expended by any
state agency, including the University of California, the California
State University, the California Community Colleges, and the Judicial
Council until the Department of Finance and the State Public Works
Board have approved preliminary plans for the project to be funded
from a capital outlay appropriation.
   (2) Paragraph (1) shall not apply to any of the following:
   (A) Amounts for acquisition of real property in fee, or any other
lesser interest.
   (B) Amounts for equipment or minor capital outlay projects.
   (C) Amounts appropriated for preliminary plans, surveys, and
studies.
   (b) Notwithstanding subdivision (a), approvals by the State Public
Works Board and the Department of Finance for the University of
California and the California Community Colleges shall apply only to
the allocation of state capital outlay funds appropriated by the
Legislature, including land acquisition and equipment funds.
   (c) Any appropriated amounts for working drawings or construction
where the working drawings or construction have been started by any
state agency prior to approval of the preliminary plans by the State
Public Works Board shall be reverted to the fund from which the
appropriation was made, as approved by the Department of Finance. No
major project for which a capital outlay appropriation is made shall
be put out to bid until the working drawings have been approved by
the Department of Finance. No substantial change shall be made to the
approved preliminary plans or approved working drawings without
written approval by the Department of Finance. Any proposed
construction bid alternates shall be approved by the Department of
Finance.
   (d) The Department of Finance shall approve the use of funds from
a capital outlay appropriation for the purchase of any significant
unit of equipment.
   (e) The State Public Works Board may augment a major project in an
amount of up to 20 percent of the total of the capital outlay
appropriations for the project, irrespective of whether any such
appropriation has reverted. For projects authorized through multiple
fund sources, including, but not limited to, general obligation bonds
and lease-revenue bonds, to the extent otherwise permissible, the
Department of Finance shall have full authority to determine which of
the fund sources will bear all or part of an augmentation. The board
shall defer all augmentations in excess of 20 percent of the amount
appropriated for each capital outlay project until the Legislature
makes additional funds available for the specific project.
   (f) In addition to the powers provided by Section 15849.6, the
State Public Works Board may further increase the additional amount
in Section 15849.6 to include a reasonable construction reserve
within the construction fund for any capital outlay project without
augmenting the project. The amount of the construction reserve shall
be within the 20 percent augmentation limitation. The board may use
this amount to augment the project, when and if necessary, after the
lease revenue bonds are sold to assure completion of the project.
Upon completion of the project, any amount remaining in the
construction reserve funds shall be used to offset rental payments.
   (g) Augmentations in excess of 10 percent of the amount
appropriated for each capital outlay project shall be reported to the
Chairperson of the Joint Legislative Budget Committee, or his or her
designee, 20 days prior to board approval, or not sooner than
whatever lesser time the chairperson, or his or her designee, may in
each instance determine.
   (h) (1) The Department of Finance may change the administratively
or legislatively approved scope for major capital outlay projects.
   (2) If the Department of Finance changes the approved scope
pursuant to paragraph (1), the department shall report the changes
and associated cost implications to the Chairperson of the Joint
Legislative Budget Committee, the chairpersons of the respective
fiscal committees, and the legislative advisers of the State Public
Works Board 20 days prior to the proposed board action to recognize
the scope change.
   (i) The State Public Works Board shall defer action with respect
to approval of an acquisition project, when it is determined that the
estimated cost of the total acquisition project, as approved by the
Legislature is in excess of 20 percent of the amount appropriated,
unless it is determined that a lesser portion of the property is
sufficient to meet the objectives of the project approved by the
Legislature, and the Chairperson of the Joint Legislative Budget
Committee, or his or her designee, is provided a 20-day prior
notification of the proposed reductions in the acquisition project,
or whatever lesser period the chairperson, or his or her designee,
may in each instance determine.
   (j) The Department of Finance shall report to the Chairperson of
the Joint Legislative Budget Committee, the chairpersons of the
respective fiscal committees, and legislative advisers of the State
Public Works Board 20 days prior to the proposed board approval of
preliminary plans when it is determined that the estimated cost of
the total capital outlay construction project is in excess of 20
percent of the amount recognized by the Legislature.
   (k) Nothing in this section shall be construed to limit or control
the Department of Transportation or the California Exposition and
State Fair in the expenditure of all funds appropriated to the
department for capital outlay purposes.
  SEC. 2.  Section 13332.19 of the Government Code is amended to
read:
   13332.19.  (a) For the purposes of this section, the following
definitions shall apply:
   (1) "Design-build" means a construction procurement process in
which both the design and construction of a project are procured from
a single entity.
   (2) "Design-build project" means a capital outlay project using
the design-build construction procurement process.
   (3) "Design-build entity" means a partnership, corporation, or
other legal entity that is able to provide appropriately licensed
contracting, architectural, and engineering services as needed.
   (4) "Design-build solicitation package" means the performance
criteria, any concept drawings, the form of contract, and all other
documents and information that serve as the basis on which bids or
proposals will be solicited from the design-build entities.
   (5) "Design-build phase" means the period following the award of a
contract to a design-build entity in which the design-build entity
completes the design and construction activities necessary to fully
complete the project in compliance with the terms of the contract.
   (6) "Performance criteria" means the information that fully
describes the scope of the proposed project and includes, but is not
limited to, the size, type, and design character of the buildings and
site; the required form, fit, function, operational requirements,
and quality of design, materials, equipment, and workmanship; and any
other information deemed necessary to sufficiently describe the
state's needs.
   (7) "Concept drawings" means any schematic drawings or
architectural renderings that are prepared, in addition to
performance criteria, in such detail as is necessary to sufficiently
describe the state's needs.
   (b) Except as otherwise specified in paragraphs (1) to (4),
inclusive, no funds appropriated for a design-build project may be
expended by any state agency, including, but not limited to, the
University of California, the California State University, the
California Community Colleges, and the Judicial Council, until the
Department of Finance and the State Public Works Board have approved
performance criteria or performance criteria and concept drawings for
the project.
   This section shall not apply to any of the following:
   (1) Amounts for acquisition of real property, in fee or any lesser
interest.
   (2) Amounts for equipment or minor capital outlay projects.
   (3) Amounts appropriated for performance criteria and concept
drawings.
   (4) Amounts appropriated for preliminary plans, if the
appropriation was made prior to January 1, 2005.
   (c) Any appropriated amounts for the design-build phase of a
design-build project, where funds have been expended on the
design-build phase by any state agency prior to the approval of the
performance criteria or the performance criteria and concept drawings
by the State Public Works Board, and all amounts not approved by the
board under this section shall be reverted to the fund from which
the appropriation was made. No design-build project for which a
capital outlay appropriation is made shall be put out to design-build
solicitation until the bid package has been approved by the
Department of Finance. No substantial change shall be made to the
performance criteria or to performance criteria and concept drawings
as approved by the board and the Department of Finance without
written approval by the Department of Finance. Any proposed bid or
proposal alternates set forth in the design-build solicitation
package shall be approved by the Department of Finance.
   (d) The State Public Works Board may augment a design-build
project in an amount of up to 20 percent of the capital outlay
appropriations for the project, irrespective of whether any such
appropriation has reverted. For projects authorized through multiple
fund sources, including, but not limited to, general obligation bonds
and lease-revenue bonds, to the extent permissible, the Department
of Finance shall have full authority to determine which of the fund
sources will bear all or part of an augmentation. The board shall
defer all augmentations in excess of 20 percent of the amount
appropriated for each design-build project until the Legislature
makes additional funds available for the specific project.
   (e) In addition to the powers provided by Section 15849.6, the
State Public Works Board may further increase the additional amount
in Section 15849.6 to include a reasonable construction reserve
within the construction fund for any capital outlay project without
augmenting the project. The amount of the construction reserve shall
be within the 20 percent augmentation limitation. The board may use
this amount to augment the project, when and if necessary, after the
lease-revenue bonds are sold to assure completion of the project.
Upon completion of the project, any amount remaining in the
construction reserve fund shall be used to offset rental payments.
   (f) Any augmentation in excess of 10 percent of the amounts
appropriated for each design-build project shall be reported to the
Chairperson of the Joint Legislative Budget Committee, or his or her
designee, 20 days prior to board approval, or not sooner than
whatever lesser time the chairperson, or his or her designee, may in
each instance determine.
   (g) (1) The Department of Finance may change the administratively
or legislatively approved scope for major design-build projects.
   (2) If the Department of Finance changes the approved scope
pursuant to paragraph (1), the department shall report the changes
and associated cost implications to the Chairperson of the Joint
Legislative Budget Committee, the chairpersons of the respective
fiscal committees, and the legislative members of the State Public
Works Board 20 days prior to the proposed board action to recognize
the scope change.
   (h) The Department of Finance shall report to the Chairperson of
the Joint Legislative Budget Committee, the chairpersons of the
respective fiscal committees, and the legislative members of the
State Public Works Board 20 days prior to the proposed board approval
of performance criteria or performance criteria and concept drawings
for any project when it is determined that the estimated cost of the
total design-build project is in excess of 20 percent of the amount
recognized by the Legislature.
  SEC. 3.  Section 15770.2 is added to the Government Code, to read:
   15770.2.  (a) The Director of Finance may designate a deputy or
other official in the Department of Finance to act for him or her and
represent him or her at meetings of the board.
   (b) The Director of Finance or his or her representative shall
serve as chairperson of the board.
   (c) The board may, by resolution, delegate to one or more of its
members, or to any other official or employee of the board, any
powers and duties that it may deem proper, including, but not limited
to, the power to enter into contracts on behalf of the board.
  SEC. 4.  Section 15802 of the Government Code is amended to read:
   15802.  The following terms whenever used in this part have the
meanings given in this section except where the context clearly
indicates otherwise:
   (a) "Board" means the State Public Works Board.
   (b) "Construction" includes the extension, enlargement, repair,
renovation, restoration, improvement, furnishing, and equipping of
any public building.
   (c) "Public building" includes any structure, building, facility,
or work that a state agency has jurisdiction of, or is authorized to
design or construct, including, but not limited to, infrastructure,
parking lots, landscaping, and other ancillary facilities, including
furnishings and equipment, incidental to the use of any building, and
also includes the site thereof, and any easements or rights of way
appurtenant thereto or necessary for its full use.
   (d) "Acquire" includes purchase, condemnation, lease, and gift.
   (e) "Cost of a public building" includes, but is not limited to,
the cost of all real estate, properties, rights, and easements
acquired, the cost of construction of public buildings and the
furnishing and equipment of them, all financing charges, interest
prior to, during and for a period of six months after construction,
engineering, architects' and legal expenses, including the cost of
plans, specifications, and surveys, estimates of cost and revenues,
administrative expenses, and such other expenses as are necessary or
incident to the financing of public buildings, or to determine the
feasibility or practicability of any public buildings, and the
condemnation of property necessary for use of, or in connection with,
any public building.
   (f) "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 part.
   (g) "State agency" includes any state office, officer, department,
division, bureau, board, commission, organization, or agency
including, without limitation, the University of California, the
California State University, the California Community Colleges, and
the Judicial Council.
  SEC. 5.  Section 15807 of the Government Code is repealed.
  SEC. 6.  Section 15809 of the Government Code is amended to read:
   15809.  The board may do any of the following:
   (a) Acquire in the name of the State of California, and use any
property, and lease as lessor, without the approval of the Department
of General Services, any property or any interest therein at any
time acquired by it to state agencies, or in the event of default
upon any certificates, bonds, negotiable notes, or negotiable bond
anticipation notes to other than state agencies.
   (b) Construct public buildings.
   (c) Contract or lease with other state agencies for the use of
real property upon which to construct a public building.
   (d) Fix, alter, charge, and collect rentals and other charges for
the use of public buildings, or for the services rendered by the
board, at reasonable rates to be determined by the board for the
purpose of providing for the payment of the expenses of the board,
not provided for by state appropriations or otherwise, operation of
its public buildings, and the payment of the principal of, and
interest on, its certificates, revenue bonds, negotiable notes, or
negotiable bond anticipation notes.
   (e) Make contracts of every kind and nature, and execute all
instruments necessary or convenient for the carrying on of its
business.
   (f) Obtain insurance against loss by fire or other hazards on
public buildings, both during and after construction, and obtain
insurance against loss of revenues from any cause whatsoever, for the
protection of the certificate holders, bondholders, or holders of
any of its negotiable notes or negotiable bond anticipation notes.
   (g) Issue certificates or revenue bonds, as provided in this part,
to obtain funds to pay the cost of public buildings, secure the
payment of certificates or revenue bonds and interest thereon by
pledging all or part of its revenues, rentals, and receipts, and
provide for the security of the certificates or revenue bonds and the
rights of the holders thereof.
   (h) Issue negotiable notes, including commercial paper notes or
other forms of negotiable short-term indebtedness, and negotiable
bond anticipation notes, as provided in this part, to obtain interim
funds to pay the cost of public buildings, secure the payment of
negotiable notes, including commercial paper notes or other forms of
negotiable short-term indebtedness, and negotiable bond anticipation
notes and interest thereon as provided in this part, and provide for
the security of negotiable notes, including commercial paper notes or
other forms of negotiable short-term indebtedness, and negotiable
bond anticipation notes and the rights of the holders thereof.
   (i) The board may authorize the preparation of bid proposals and
the securing of bids for the construction of projects prior to
obtaining interim financing. However, no contracts shall be executed
until interim financing is available to the board.
  SEC. 7.  Section 15814.11 of the Government Code is amended to
read:
   15814.11.  For purposes of this chapter, the following terms have
the following meanings:
   (a) "Public building" means a public building as defined in
Section 15802, and includes the cogeneration and alternative energy
equipment, water conservation equipment, and conservation measures
which the board is authorized by this chapter to acquire and
construct. "Public Building" also means any publicly funded school
that includes kindergarten and grades 1 to 12, inclusive, or any
portion of those grades, provided that publicly funded schools that
include kindergarten and grades 1 to 12, inclusive, shall be
authorized to finance only conservation measures and water
conservation equipment as defined in subdivisions (e) and (g).
   (b) "Energy service contract" means a contract entered into by the
board or any other state agency with any person, including, but not
limited to, an individual, company, corporation, partnership, state
agency, or other entity or group of entities, pursuant to which the
person will provide electrical or thermal energy or water or water
conservation or energy conservation measures.
   (c) "Cogeneration equipment" means equipment for cogeneration, as
defined in Section 216.6 of the Public Utilities Code.
   (d) "Alternative energy equipment" means equipment for the
production or conversion of energy from alternative sources,
including, but not limited to, solar, biomass, wind, geothermal,
hydroelectricity under 30 megawatts, or any other source of energy or
water, the efficient use of which will reduce the use of fossil or
nuclear fuels or water from established sources of supply.
   (e) "Conservation measures" means equipment, maintenance, meters,
load management techniques and equipment, or other measures to reduce
energy or water use or make for a more efficient use of energy or
water.
   (f) "State agency" means any state agency, board, department or
commission, including, but not limited to, the entities specified in
Section 15814.12, and any school district as defined in Section 80 of
the Education Code.
   (g) "Water conservation equipment" means any device or
modification that reduces water use from established water sources.
  SEC. 8.  Section 15815 of the Government Code is repealed.
  SEC. 9.  Section 15817 of the Government Code is amended to read:
   15817.  Any state agency may lease, as lessee or lessor, and the
board may lease, as lessee or lessor, any public building for a term
not exceeding 35 years from the date of occupancy at such rentals as
are determined by the board. Rentals under a lease shall commence
upon the date of occupancy, irrespective of whether the public
building has been finally accepted by the state agency. These leases
do not require the approval of the Director of General Services.
  SEC. 10.  Section 15817.1 of the Government Code is amended to
read:
   15817.1.  (a) Exclusively for the purpose of facilitating the
financing of public buildings pursuant to this part through the
issuance of revenue bonds, notes, or certificates by the board, and
notwithstanding any other law, the board may acquire by lease from
any state agency public buildings identified by, and under the
jurisdiction or control of, the state agency, and, in that
connection, the board may then lease those public buildings back to
the state agency and may pledge the revenues, rentals, or receipts to
the lease to secure the repayment of revenue bonds, notes, or
certificates issued by the board. The board is not required to apply
the proceeds of the board's bonds, notes, or certificates to acquire,
design, construct, or otherwise improve the same public buildings
that are leased pursuant to this section. In each case, the lease
shall provide rental provisions, term, payment, security, default,
remedy, and other terms or provisions as may be specified in the
lease or other agreement or agreements between the board and the
state agency and may provide for the substitution of other public
buildings for the public buildings initially leased by the board and
the state agency pursuant to this section. The public buildings that
are leased pursuant to this section may be existing public buildings,
as determined by the board and the state agency, and which the board
and the state agency also determine to have both of the following:
   (1) A fair rental value that is consistent with the principal
amount of the bonds, notes, or certificates of the board authorized
to be issued for the purpose of providing the financing of public
buildings pursuant to this part.
   (2) An economic useful life that is not shorter than the final
maturity of the bonds, notes, or certificates of the board authorized
to be issued for the purpose of providing the financing of public
buildings pursuant to this part.
   (b) These determinations by the board and the state agency
pursuant to subdivision (a) shall be final and conclusive.
   (c) A lease made pursuant to this section does not require the
approval of the Director of General Services.
   (d) The board or a state agency may utilize subdivision (a) in
connection with the issuance of any revenue bonds, notes, or
certificates previously authorized but not issued, or any revenue
bonds, notes, or certificates authorized subsequent to the effective
date of the act adding this subdivision.
   (e) The acquisition by lease authority provided in this section
shall become inoperative on July 1, 2015, unless a later enacted
statute, that is enacted before that date, deletes or extends that
date. Leases made pursuant to this authority prior to July 1, 2015,
shall continue in full force and effect in accordance with their
applicable terms. Any acquisitions made and bonds issued pursuant to
this authority prior to July 1, 2015, shall be deemed binding and
valid.
  SEC. 11.  Section 15849.2 of the Government Code is amended to
read:
   15849.2.  In order to more fully secure the bonds authorized to be
issued pursuant to this part, when during any fiscal year any
appropriation is made to a state agency which has leased or otherwise
contracted with the board for a public building pursuant to this
part, the state agency shall allocate from the first lawfully
available funds so appropriated that amount necessary to pay in full
all amounts which are anticipated to become due and payable during
the fiscal year under the lease or contract.
  SEC. 12.  Section 15849.6 of the Government Code is repealed.
  SEC. 13.  Section 15849.6 is added to the Government Code, to read:

   15849.6.  Notwithstanding any provision of this part to the
contrary, the board may issue bonds, notes, or other obligations to
finance the acquisition or construction of a public building,
facility, or equipment as authorized by the Legislature, in the total
amount authorized by the Legislature, and any additional amount
authorized by the board to pay the cost of financing. This additional
amount may include interest during acquisition or interest prior to,
during, and for a period of six months after construction of the
public building, facility, or equipment, interest payable on any
interim loan for the public building, facility, or equipment from the
General Fund or from the Pooled Money Investment Account, a
reasonably required reserve fund, and the costs of issuance of any
interim financing and permanent financing after completion of the
construction or acquisition of the public building, facility, or
equipment.
   This section shall be applicable to, but not limited to, bonds,
notes, or obligations of the board that were authorized by
appropriations of the Legislature made prior to the effective date of
this section.
  SEC. 14.  Section 16352 of the Government Code is repealed.
  SEC. 15.  Section 16352 is added to the Government Code, to read:
   16352.  Notwithstanding Section 13340, any augmentation of an
appropriation for a state public works project from the General Fund
or any other fund in the State Treasury from which a capital outlay
appropriation has been authorized for acquisition, design,
construction, or equipping of a state public works project is hereby
appropriated, without regard to fiscal years. The augmentation shall
be in an amount sufficient to provide for payment of those public
works projects where the project cannot proceed because the bids
received are in excess of the estimate, notwithstanding the
provisions of Section 10125 of the Public Contract Code, or the
estimate otherwise exceeds the amount available. Augmentations for a
state public works project are subject to the limitations in Sections
13332.11 and 13332.19 and shall be made pursuant to executive orders
of the Director of Finance upon approval of the State Public Works
Board.
  SEC. 16.  Section 70374 of the Government Code is amended to read:

70374.  (a) The Judicial Council shall annually recommend to the
Governor and the Legislature the amount proposed to be spent for
projects paid for with moneys in the State Court Facilities
Construction Fund. The use of the appropriated moneys is subject to
subdivision (l) of Section 70391.
   (b) Acquisition and construction of court facilities shall be
subject to the State Building Construction Act of 1955 (Part 10b
(commencing with Section 15800) of Division 3 of Title 2) and the
Property Acquisition Law (Part 11 (commencing with Section 15850) of
Division 3 of Title 2), except that (1) notwithstanding any other
provision of law, the Administrative Office of the Courts shall serve
as an implementing agency upon approval of the Department of
Finance, and (2) the provisions of subdivision (e) shall prevail.
Acquisition and construction of facilities are not subject to the
provisions of the Public Contract Code, but shall be subject to
facilities contracting policies and procedures adopted by the
Judicial Council after consultation and review by the Department of
Finance.
   (c) Moneys in the State Court Facilities Construction Fund shall
only be used for either of the following:
   (1) The planning, design, construction, rehabilitation,
renovation, replacement, leasing, or acquisition of court facilities,
as defined by subdivision (d) of Section 70301.
   (2) The rehabilitation of one or more existing court facilities in
conjunction with the construction, acquisition, or financing of one
or more new court facilities.
   (d) (1) Except as provided in Section 70374.2 and paragraph (2) of
this subdivision, 25 percent of all moneys collected for the State
Court Facilities Construction Fund from any county shall be
designated for implementation of trial court projects in that county.
The Judicial Council shall determine the local projects after
consulting with the trial court in that county and based on the
locally approved trial court facilities master plan for that county.
   (2) Paragraph (1) shall not apply to moneys that have been
deposited in the Immediate and Critical Needs Account of the State
Court Facilities Construction Fund, established in Section 70371.5.
   (e) The following provisions shall prevail over provisions of the
State Building Construction Act of 1955 (Part 10b (commencing with
Section 15800) of Division 3 of Title 2) in regard to buildings
subject to this section.
   (1) The Administrative Office of the Courts shall be responsible
for the operation, including, but not limited to, the maintenance and
repair, of all court facilities whose title is held by the state.
The operation of buildings under this section shall be the
responsibility of the Judicial Council.
   (2) Notwithstanding Section 15808.1, the Judicial Council shall
have the responsibility for determining whether a building under the
act shall be located within or outside of an existing public transit
corridor.
   (3) The buildings under this section are subject to Section
15814.12 concerning cogeneration and alternative energy sources at
the request of, or with the consent of, the Judicial Council. Any
building acquired by the state pursuant to this section on or before
July 1, 2007, is not subject to subdivision (b) of Section 15814.12
concerning the acquisition of cogeneration or alternative energy
equipment if the building, when acquired, already had cogeneration or
alternative energy equipment. Section 15814.17 only applies to
buildings to which the Judicial Council has given its consent under
subdivision (a) of Section 15814.12.
  SEC. 17.  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 implement the Budget Act of 2010, it is necessary that
this act take effect immediately.