BILL NUMBER: SB 205	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JANUARY 25, 2010
	AMENDED IN ASSEMBLY  JANUARY 19, 2010
	AMENDED IN ASSEMBLY  JULY 13, 2009
	AMENDED IN SENATE  APRIL 14, 2009

INTRODUCED BY   Senator Hancock

                        FEBRUARY 23, 2009

   An act to amend the heading of Article 1 (commencing with Section
12000) of Chapter 1 of Part 8 of Division 1 of Title 1 of, and to add
Section 12001.5 to, the Education Code, relating to education
finance  , and declaring the urgency thereof, to take effect
immediately  .



	LEGISLATIVE COUNSEL'S DIGEST


   SB 205, as amended, Hancock. Education finance: federal tax credit
bond volume cap.
   Existing federal law authorizes the Internal Revenue Service to
publish the maximum face value amount of qualified school
construction bonds, as defined, that may be allocated by the United
States Department of the Treasury to each state pursuant to the
federal American Recovery and Reinvestment Act of 2009.
   This bill would assign specified amounts of the state's 2009
federal tax credit bond volume cap to the State Department of
Education and the California School Finance Authority. The bill would
exempt the assignment and distribution of the federal tax credit
bond volume cap under the bill from the rulemaking provisions of the
Administrative Procedure Act. 
   This bill would declare that it is to take effect immediately as
an urgency statute. 
   Vote:  majority   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 heading of Article 1 (commencing with Section
12000) of Chapter 1 of Part 8 of Division 1 of Title 1 of the
Education Code is amended to read:

      Article 1.  Allocation of Federal Funds and Federal Tax Credit
Bond Volume Cap


  SEC. 2.  Section 12001.5 is added to the Education Code, to read:
   12001.5.  (a) The Legislature hereby finds and declares that the
federal tax credit bond volume cap for qualified school construction
bonds designated for the state by the federal American Recovery and
Reinvestment Act of 2009 (Public Law 111-5), together with Internal
Revenue Service Notice 2009-35 issued pursuant thereto, does not
constitute federal moneys, federal funds, or funds of any kind for
any purpose under this code.
   (b) There is hereby assigned to the State Department of Education,
seven hundred million dollars ($700,000,000) of the state's 2009
federal tax credit bond volume cap for qualified school construction
bonds, to be further assigned and distributed to or for the benefit
of school districts and county offices of education in the state, as
the State Department of Education shall determine.
   (c) There is hereby assigned to the California School Finance
Authority, established pursuant to Section 17172, seventy-three
 million five hundred forty-five thousand dollars
($73,545,000) of   million five hundred twenty-five
thousand dollars ($73,525,000) of  the state's 2009 federal tax
credit bond volume cap for qualified school construction bonds, to be
issued for the benefit of charter schools, or to be further assigned
and distributed to one or more issuers in the state for the benefit
of charter schools, as the authority shall determine.
   (d) (1) Any of the state's 2009 federal tax credit bond volume cap
for qualified school construction bonds assigned to the State
Department of Education pursuant to subdivision (b) that has not
resulted in the issuance of qualified school construction bonds by
December 31, 2009, shall be added to the state's volume cap for 2010,
in accordance with subsection (e) of Section 54F of the Internal
Revenue Code, and assigned as set forth in this section. Those
districts and county offices of education that received an assignment
from the State Department of Education by December 31, 2009, and
notification from the State Department of Education that they were
granted an extension to issue bonds through March 31, 2010, shall
have an additional 120 days from the effective date of this
legislation to issue bonds.
   (2) Any of the state's federal tax credit bond volume cap for
qualified school construction bonds originally assigned to the State
Department of Education in 2009 pursuant to subdivision (b) that does
not result in the issuance of qualified school construction bonds
within 120 days from the effective date of this legislation shall
revert to the state, and shall be reallocated in accordance with the
process established pursuant to state law for allocating the 2010
federal tax credit bond volume cap for qualified school construction
bonds.
   (e) (1) Any of the state's 2009 federal tax credit bond volume cap
for qualified school construction bonds assigned to the California
School Finance Authority pursuant to subdivision (c) that has not
resulted in the issuance of qualified school construction bonds by
December 31, 2009, shall be added to the state's volume cap for 2010,
in accordance with subsection (e) of Section 54F of the Internal
Revenue Code, and allocated as set forth in this section. Any charter
school that received an allocation from the California School
Finance Authority prior to December 31, 2009, shall retain its
allocation pursuant to the resolution of the California School
Finance Authority.
   (2) Any of the state's federal tax credit bond volume cap for
qualified school construction bonds originally allocated to the
California School Finance Authority in 2009 pursuant to subdivision
(c) that does not result in the issuance of qualified school
construction bonds by December 31, 2010, shall be retained by the
California School Finance Authority, and reallocated in accordance
with the qualified school construction bond parameters established by
the California School Finance Authority.
   (f) Notwithstanding any other provision of law, in order to
further the purposes of the federal American Recovery and
Reinvestment Act of 2009, and allow school districts to issue federal
tax credit bonds as expeditiously as possible, the assignment and
distribution of the federal tax credit bond volume cap by the State
Department of Education and the California School Finance Authority
under this section are exempt from 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).
   (g) Any actions taken with regard to and distributions of federal
tax credit bond volume cap made by the State Department of Education
or the California School Finance Authority pursuant to this section
with respect to the state's federal tax credit bond volume cap are
hereby ratified and approved.
   SEC. 3.    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 access federal stimulus tax credits at the earliest
possible opportunity, it is necessary that this act take effect
immediately.