California Legislature—2013–14 Regular Session

Assembly Bill No. 1979

Introduced by Assembly Member Nazarian

February 19, 2014

An act to amend Section 17173 of the Education Code, relating to school facilities.

LEGISLATIVE COUNSEL’S DIGEST

AB 1979, as introduced, Nazarian. School facilities: California School Finance Authority: definitions.

Existing law authorizes the California School Finance Authority to, among other things, determine the location and character of any project to be financed or refinanced under the California School Finance Authority Act. Existing law defines the term “project” as the acquisition, construction, expansion, remodeling, renovation, improvement, furnishing, or equipping of an educational facility to be financed or refinanced pursuant to the act.

This bill would provide that the term “project” may also include reimbursement for the costs of acquisition, construction, expansion, remodeling, renovation, improvement, furnishing, or equipping of an education facility to be financed or refinanced pursuant to the act.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 17173 of the Education Code is amended
to read:

17173.  

As used in this chapter, the following words and terms
shall have the following meanings, unless the context indicates or
requires another or different meaning or intent:

(a) “Act” means the California School Finance Authority Act.

(b) “Agent” means a county or city board of education or
superintendent of schools acting with the board’s consent, on behalf
of one or more school districts for any purpose of this chapter, the
Board of Governors of the California Community Colleges or the
Chancellor of the California Community Colleges acting with the
Board of Governors’ consent, on behalf of one or more community
college districts for any purpose of this chapter, and the school
district, county office of education, or other chartering entity acting
with the consent of, and on behalf of, one or more charter schools
for any purpose of this chapter.

(c) “Authority” means the California School Finance Authority,
or any board, body, commission, department, or officer succeeding
to the principal functions of the authority, or to which the powers
conferred upon the authority by this chapter shall be given by law.

(d) “Bonds” or “revenue bonds” means bonds, notes, lease
obligations, certificates of participation, commercial paper, and
any other evidences of indebtedness.

(e) “Cost,” as applied to all or part of a project financed or
refinanced pursuant to this chapter, means and includes all or any
part of the cost of any of the following:

(1) Construction.

(2) Acquisition or improvement of all lands, structures, real or
personal property, rights, rights-of-way, franchises, easements,
and interests acquired or used for a project.

(3) Demolition or removal of any buildings or structures on land
acquired for a project, including the acquisition of any lands to
which the buildings or structures may be moved.

(4) All machinery and equipment.

(5) Financing or refinancing charges, including, but not limited
to, credit enhancement costs, and prepayment penalties.

(6) Interest before, during, and for a period following, the
completion of any construction or improvement determined by the
authority.

(7) Provisions for working capital.

(8) Reserves for principal and interest, and for extensions,
enlargements, additions, replacements, renovations, and
improvements.

(9) Engineering, architectural, financial, and legal services,
plans, specifications, studies, surveys, estimates, administrative
expenses, and other expenses necessary or incident to the
construction, acquisition, or improvement of any project or any
financing or refinancing under this chapter.

(f) “Educational facility” means any property, facility, structure,
equipment, or furnishings used or operated in conjunction with
one or more public schools, including charter schools, or
community colleges, including, but not limited to, all of the
following:

(1) Classrooms.

(2) Auditoriums.

(3) Student centers.

(4) Administrative offices.

(5) Sports facilities.

(6) Maintenance, storage, or utility facilities.

(7) All necessary or usual attendant and related facilities and
equipment, including streets, parking, and supportive service
facilities or structures required or useful for the effective operation
of the educational facility.

(g) “Participating party” means:

(1) A school district, charter school, county office of education,
or community college district that undertakes, itself or through an
agent, the financing or refinancing of a project or of working capital
pursuant to this chapter.

(2) Any person, company, association, state or municipal
government entity, partnership, firm, or other entity or group of
entities that undertakes the financing or refinancing of a project
pursuant to this chapter in conjunction with an entity described in
paragraph (1).

(3) “Participating party” shall also be deemed to refer to the
agent to the extent the agent is acting on behalf of the school
district, charter school, county office of education, or community
college district for any purpose of this chapter.

(4) For purposes of subdivision (d) of Section 17183, and
Section 17193.5, subdivisions (a) and (b) of Section 17199.1, and
Section 17199.4, “participating party” shall be deemed to refer to
an entity described in paragraph (1) in conjunction with which an
entity described in paragraph (2), if any, applied for financing from
the authority.

(h) “Project” means the acquisition, construction, expansion,
remodeling, renovation, improvement, furnishing, or equipping
of an educational facility to be financed or refinanced pursuant to
this chapter. begin insert “Project” may include reimbursement for the costs
of acquisition, construction, expansion, remodeling, renovation,
improvement, furnishing, or equipping of an educational facility
to be financed or refinanced pursuant to this chapter. end insert “Project”
may include any combination of the foregoing undertaken jointly
by any participating begin delete district end delete begin insert party end insert with one or more other
participating parties.

(i) “Working capital” means funds to be used by, or on behalf
of, a participating party to pay maintenance or operating expenses,
or any other costs that would be treated as an expense item under
generally accepted accounting principles in connection with the
ownership or operation of an educational facility, including, but
not limited to, all of the following:

(1) Reserves for maintenance or operating expenses.

(2) Interest for a period not to exceed two years on any loan for
working capital made pursuant to this chapter.

(3) Reserves for debt service, and any other costs necessary or
incidental to, financing pursuant to this chapter.

(4) Payments made by a participating party for the rent or lease
of an educational facility.

(j) “Certificate of participation” means an undivided interest in
one or more bonds, leases, loans, installment sales, or other
agreements of a participating party or parties.

(k) “Charter school” means a school established pursuant to
Part 26.8 (commencing with Section 47600) begin insert of Division 4 end insert of Title
2.