AB 2235, as introduced, Buchanan. Education facilities: Kindergarten-University Public Education Facilities Bond Act of 2014.
(1) Existing law, the Leroy F. Greene School Facilities Act of 1998, requires the State Allocation Board to allocate to applicant school districts, prescribed per-unhoused-pupil state funding for construction and modernization of school facilities, including hardship funding, and supplemental funding for site development and acquisition.
This bill would delete a provision requiring the State Allocation Board to conduct an evaluation of the cost of new construction and modernization of small high schools in conjunction with a specified pilot program.
The bill would require each school district that elects to participate in a new construction program funded by the proceeds of any bond approved by the voters after November 1, 2014, to reestablish eligibility, as specified.
The bill would require the Office of Public School Construction to recommend regulations to the board to provide school districts with flexibility in designing instruction facilities.
(2) Existing law, the California Constitution, prohibits the Legislature from creating a debt or liability that singly or in the aggregate with any previous debts or liabilities exceeds the sum of $300,000, except by an act that (a) authorizes the debt for a single object or work specified in the act, (b) has been passed by a 2⁄3 vote of all the members elected to each house of the Legislature, (c) has been submitted to the people at a statewide general or primary election, and (d) has received a majority of all the votes cast for and against it at that election.
This bill would enact the Kindergarten-University Public Education Facilities Bond Act of 2014 to authorize an unspecified amount of state general obligation bonds to provide aid to school districts, county superintendents of schools, county boards of education, charter schools, the California Community Colleges, the University of California, the Hastings College of the Law, and the California State University to construct and modernize education facilities. The proceeds of these bonds would be deposited in the continuously appropriated 2014 State School Facilities Fund, which this bill would establish.
The bond act would become operative only if approved by the voters at the November 4, 2014, statewide general election, and would provide for its submission to the voters at that election.
(3) This bill would specify that it would become operative only if the Kindergarten-University Public Education Facilities Bond Act of 2014 is approved by the voters at the November 4, 2014, statewide general election.
(4) The bill would make conforming changes in related provisions of existing law.
(5) This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2⁄3. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 17070.40 of the Education Code is
2amended to read:
(a) (1) A fund is hereby established in the State
2Treasury to be known as the 1998 State School Facilities Fund.
3All money in the fund, including any money deposited in that fund
4from any source whatsoever, and notwithstanding Section 13340
5of the Government Code, is hereby continuously appropriated
6without regard to fiscal years for expenditure pursuant to this
7chapter.
8(2) The board may apportion funds to school districts for the
9purposes of this chapter from funds transferred to the 1998 State
10School Facilities Fund from any source.
11(3) The board may make apportionments in amounts not
12exceeding those funds on deposit in the 1998 State
School Facilities
13Fund, and any amount of bonds authorized by the committee, but
14not yet sold by the Treasurer.
15(4) The board may make disbursements pursuant to any
16apportionment made from any funds in the 1998 State School
17Facilities Fund, irrespective of whether there exists at the time of
18the disbursement an amount in the 1998 State School Facilities
19Fund sufficient to permit payment in full of all apportionments
20previously made. However, no disbursement shall be made from
21any funds required by law to be transferred to the General Fund.
22(b) (1) A fund is hereby established in the State Treasury to be
23known as the 2002 State School Facilities Fund. All money in the
24fund, including any money deposited in that fund from any source
25whatsoever, and notwithstanding Section 13340 of the Government
26Code, is hereby continuously appropriated without regard to fiscal
27
years for expenditure pursuant to this chapter.
28(2) The board may apportion funds to school districts for the
29purposes of this chapter from funds transferred to the 2002 State
30School Facilities Fund from any source.
31(3) The board may make apportionments in amounts not
32exceeding those funds on deposit in the 2002 State School Facilities
33Fund, and any amount of bonds authorized by the committee, but
34not yet sold by the Treasurer.
35(4) The board may make disbursements pursuant to any
36apportionment made from any funds in the 2002 State School
37Facilities Fund, irrespective of whether there exists at the time of
38the disbursement an amount in the 2002 State School Facilities
39Fund sufficient to permit payment in full of all apportionments
P4 1previously made. However, no disbursement shall be made from
2any funds required by law
to be transferred to the General Fund.
3(c) (1) A fund is hereby established in the State Treasury to be
4known as the 2004 State School Facilities Fund. All money in the
5fund, including any money deposited in that fund from any source
6whatsoever, and notwithstanding Section 13340 of the Government
7Code, is hereby continuously appropriated without regard to fiscal
8years for expenditure pursuant to this chapter.
9(2) The board may apportion funds to school districts for the
10purposes of this chapter from funds transferred to the 2004 State
11School Facilities Fund from any source.
12(3) The board may make apportionments in amounts not
13exceeding those funds on deposit in the 2004 State School Facilities
14Fund, and any amount of bonds authorized by the committee, but
15not yet sold by the Treasurer.
16(4) The board may make disbursements pursuant to any
17apportionment made from any funds in the 2004 State School
18Facilities Fund, irrespective of whether there exists at the time of
19the disbursement an amount in the 2004 State School Facilities
20Fund sufficient to permit payment in full of all apportionments
21previously made. However, no disbursement shall be made from
22any funds required by law to be transferred to the General Fund.
23(d) (1) A fund is hereby established in the State Treasury, to
24be known as the 2006 State School Facilities Fund. All money in
25the fund, including any money deposited in that fund from any
26source whatsoever, and notwithstanding Section 13340 of the
27Government Code, is hereby continuously appropriated without
28regard to fiscal years for expenditure pursuant to this chapter.
29(2) The board may apportion funds to school districts for the
30purposes of this chapter from funds transferred to the 2006 State
31School Facilities Fund from any source.
32(3) The board may make apportionments in amounts not
33exceeding those funds on deposit in the 2006 State School Facilities
34Fund, and any amount of bonds authorized by the committee, but
35not yet sold by the Treasurer.
36(4) The board may make disbursements pursuant to any
37apportionment made from any funds in the 2006 State School
38Facilities Fund, irrespective of whether there exists at the time of
39the disbursement an amount in the 2006 State School Facilities
40Fund sufficient to permit payment in full of all apportionments
P5 1previously made. However, no disbursement shall be made from
2any funds required by law to be transferred to the General Fund.
3(e) (1) A fund is hereby established in the State Treasury, to be
4known as the 2014 State School Facilities Fund. All money in the
5fund, including any money deposited in that fund from any source
6whatsoever, and notwithstanding Section 13340 of the Government
7Code, is hereby continuously appropriated without regard to fiscal
8years for expenditure pursuant to this chapter.
9(2) The board may apportion funds to school districts for the
10purposes of this chapter from funds transferred to the 2014 State
11School Facilities Fund from any source.
12(3) The board may make apportionments in amounts not
13exceeding those funds on deposit in the 2014 State School Facilities
14Fund, and any amount of bonds authorized by the committee, but
15not yet sold by the Treasurer.
16(4) The board may make disbursements pursuant to any
17apportionment made from any funds in the 2014 State School
18Facilities Fund, irrespective of whether there exists at the time of
19the disbursement an amount in the 2014 State School Facilities
20Fund sufficient to permit payment in full of all apportionments
21previously made. However, no disbursement shall be made from
22any funds required by law to be transferred to the General Fund.
Section 17070.99 of the Education Code is repealed.
(a) The board shall conduct an evaluation on the
25cost of new construction and modernization of small high schools
26in conjunction with the pilot program established pursuant to
27subdivision (c) of Section 17072.10, as it read on January 1, 2005.
28(b) The State Department of Education shall conduct an
29evaluation that focuses on pupil outcomes, including, but not
30limited to, academic achievement and college attendance rates, at
31the small high schools constructed pursuant to subdivision (c) of
32Section 17072.10, as it read on January 1, 2005, and on the reasons
33school districts do not currently opt to build small high schools.
34(c) The evaluations required pursuant to subdivisions (a) and
35(b) shall be completed no later than two years after the opening of
36the last small high school constructed pursuant to subdivision (c)
37of Section 17072.10, as it read on January 1, 2005.
38(d) The evaluations conducted pursuant to subdivisions (a) and
39(b) shall be used to inform the direction of future school facilities
40construction and related bond measures.
Section 17071.15 is added to the Education Code, to
2read:
Notwithstanding Section 17071.10, the board may
4require each school district that elects to participate in the new
5construction program funded by the proceeds of any bond approved
6by voters after November 1, 2014, to reestablish eligibility pursuant
7to regulations adopted by the board.
Section 17071.33 of the Education Code is repealed.
(a) For the purposes of determining existing school
10building capacity, the calculation shall be adjusted as required for
11first priority status pursuant to Section 17017.7 as that calculation
12would have been made under the policies of the board in effect
13immediately preceding September 1, 1998.
14(b) Notwithstanding subdivision (a), with respect to a high
15school district, the existing school building capacity shall be
16calculated without regard to multitrack year-round school
17considerations.
Section 17071.35 of the Education Code is repealed.
Notwithstanding any other provisions of law, the
20maximum school building capacity for each applicant district shall
21be increased by the number of pupils reported by the
22Superintendent of Public Instruction for that grade level pursuant
23to Section 42268. This adjustment shall be calculated on the basis,
24at the district’s option, of either the district as a whole or the
25appropriate attendance area.
Section 17071.40 of the Education Code is repealed.
Each school on a year-round, multitrack calendar
28that has a density of 200 or more pupils enrolled per acre, that is
29located in a school district with 40 percent of its pupils attending
30multitrack, year-round schools shall be exempted from the increase
31in school building capacity required by Section 17071.35. Nothing
32in this section shall be construed as exempting the school from the
33requirements of Section 17071.33.
Section 17072.40 is added to the Education Code, to
35read:
The Office of Public School Construction, in
37consultation with the department, shall recommend to the board
38regulations that will provide school districts with flexibility in
39designing instructional facilities.
Section 17073.16 is added to the Education Code, to
2read:
The board may require each school district that elects
4to participate in the modernization program funded by the proceeds
5of any bond approved by voters after November 1, 2014, to
6reestablish baseline eligibility for each schoolsite pursuant to
7regulations adopted by the board.
Section 17074.26 of the Education Code is amended
9to read:
The board shall adopt regulations to adjust the
11per-pupil amounts set forth in Sectionbegin delete 17074.14end deletebegin insert 17074.10end insert for
12modernization projects for school buildings that are 50 years old
13or older based upon the higher costs associated with modernizing
14older buildings.
Part 70 (commencing with Section 101100) is added
16to Division 14 of Title 3 of the Education Code, to read:
17
20
This part shall be known and may be cited as the
24Kindergarten-University Public Education Facilities Bond Act of
252014.
The incorporation of, or reference to, any provision
27of California statutory law in this part includes all acts amendatory
28thereof and supplementary thereto.
(a) Bonds in the total amount of ____ dollars ($____),
30not including the amount of any refunding bonds issued in
31accordance with Sections 101130, 101139, and 101159, or so much
32thereof as is necessary, may be issued and sold to provide a fund
33to be used for carrying out the purposes expressed in this part and
34to reimburse the General Obligation Bond Expense Revolving
35Fund pursuant to Section 16724.5 of the Government Code. The
36bonds, when sold, shall be and constitute a valid and binding
37obligation of the State of California, and the full faith and credit
38of the State of California is hereby pledged for the punctual
39payment of the principal of, and interest on, the bonds as the
40principal and interest become due and payable.
P8 1(b) Pursuant to this section, the
Treasurer shall sell the bonds
2authorized by the State School Building Finance Committee
3established by Section 15909 or the Higher Education Facilities
4Finance Committee established pursuant to Section 67353, as the
5case may be, at any different times necessary to service
6expenditures required by the apportionments.
7
9
The proceeds of bonds issued and sold pursuant to
14Article 2 (commencing with Section 101120) shall be deposited
15in the 2014 State School Facilities Fund established in the State
16Treasury under subdivision (e) of Section 17070.40 and shall be
17allocated by the State Allocation Board pursuant to this chapter.
All moneys deposited in the 2014 State School
19Facilities Fund for the purposes of this chapter shall be available
20to provide aid to school districts, county superintendents of schools,
21and county boards of education of the state in accordance with the
22Leroy F. Greene School Facilities Act of 1998 (Chapter 12.5
23(commencing with Section 17070.10) of Part 10 of Division 1 of
24Title 1), as set forth in Section 101112, to provide funds to repay
25any money advanced or loaned to the 2014 State School Facilities
26Fund under any act of the Legislature, together with interest
27provided for in that act, and to reimburse the General Obligation
28Bond Expense Revolving Fund pursuant to Section 16724.5 of the
29Government Code.
(a) The proceeds from the sale of bonds, issued and
31sold for the purposes of this chapter, shall be allocated in
32accordance with the following schedule:
33(1) The amount of ____ dollars ($____) for new construction
34of school facilities of applicant school districts under Chapter 12.5
35(commencing with Section 17070.10) of Part 10 of Division 1 of
36Title 1.
37(2) The amount of ____ dollars ($____) shall be available for
38providing school facilities to charter schools pursuant to Article
3912 (commencing with Section 17078.52) of Chapter 12.5 of Part
4010 of Division 1 of Title 1.
P9 1(3) The amount of ____ dollars ($____) for the modernization
2of
school facilities pursuant to Chapter 12.5 (commencing with
3Section 17070.10) of Part 10 of Division 1 of Title 1.
4(b) School districts may use funds allocated pursuant to
5paragraph (3) of subdivision (a) only for one or more of the
6following purposes in accordance with Chapter 12.5 (commencing
7with Section 17070.10) of Part 10 of Division 1 of Title 1:
8(1) The purchase and installation of air-conditioning equipment
9and insulation materials, and related costs.
10(2) Construction projects or the purchase of furniture or
11equipment designed to increase school security or playground
12safety.
13(3) The identification, assessment, or abatement in school
14facilities of hazardous asbestos.
15(4) Project funding for high-priority roof replacement projects.
16(5) Any other modernization of facilities pursuant to Chapter
1712.5 (commencing with Section 17070.10) of Part 10 of Division
181 of Title 1.
19(c) Funds allocated pursuant to paragraph (1) of subdivision (a)
20may also be utilized to provide new construction grants for eligible
21applicant county boards of education under Chapter 12.5
22(commencing with Section 17070.10) of Part 10 of Division 1 of
23Title 1 for funding classrooms for severely handicapped pupils,
24or for funding classrooms for county community school pupils.
25
(a) Of the total amount of bonds authorized to be
30issued and sold pursuant to Chapter 1 (commencing with Section
31101000), bonds in the amount of ____ dollars ($____) not including
32the amount of any refunding bonds issued in accordance with
33Section 101130, or so much thereof as is necessary, may be issued
34and sold to provide a fund to be used for carrying out the purposes
35expressed in this chapter and to reimburse the General Obligation
36Bond Expense Revolving Fund pursuant to Section 16724.5 of the
37Government Code. The bonds, when sold, shall be and constitute
38a valid and binding obligation of the State of California, and the
39full faith and credit of the State of California is hereby pledged
P10 1for the punctual payment of the principal of, and interest on, the
2bonds as the principal and interest become due and payable.
3(b) Pursuant to this section, the Treasurer shall sell the bonds
4authorized by the State School Building Finance Committee
5established pursuant to Section 15909 at any different times
6necessary to service expenditures required by the apportionments.
The State School Building Finance Committee,
8established by Section 15909 and composed of the Governor, the
9Controller, the Treasurer, the Director of Finance, and the
10Superintendent, or their designated representatives, all of whom
11shall serve thereon without compensation, and a majority of whom
12shall constitute a quorum, is continued in existence for the purpose
13of this chapter. The Treasurer shall serve as chairperson of the
14committee. Two Members of the Senate appointed by the Senate
15Committee on Rules, and two Members of the Assembly appointed
16by the Speaker of the Assembly, shall meet with and provide advice
17to the committee to the extent that the advisory participation is not
18incompatible with their respective positions as Members of the
19Legislature. For the purposes of this chapter, the Members of the
20Legislature shall constitute an
interim investigating committee on
21the subject of this chapter and, as that committee, shall have the
22powers granted to, and duties imposed upon, those committees by
23the Joint Rules of the Senate and the Assembly. The Director of
24Finance shall provide assistance to the committee as it may require.
25The Attorney General of the state is the legal adviser of the
26committee.
(a) The bonds authorized by this chapter shall be
28prepared, executed, issued, sold, paid, and redeemed as provided
29in the State General Obligation Bond Law (Chapter 4 (commencing
30with Section 16720) of Part 3 of Division 4 of Title 2 of the
31Government Code), and all of the provisions of that law, except
32Section 16727 of the Government Code to the extent that it
33conflicts with this part, apply to the bonds and to this chapter and
34are hereby incorporated into this chapter as though set forth in full
35within this chapter.
36(b) For purposes of the State General Obligation Bond Law, the
37State Allocation Board is designated the “board” for purposes of
38administering the 2014 State School Facilities Fund.
(a) Upon request of the State Allocation Board, the
40State School Building Finance Committee shall determine whether
P11 1or not it is necessary or desirable to issue bonds authorized pursuant
2to this chapter in order to fund the apportionments and, if so, the
3amount of bonds to be issued and sold. Successive issues of bonds
4may be authorized and sold to fund those apportionments
5progressively, and it is not necessary that all of the bonds
6authorized to be issued be sold at any one time.
7(b) A request of the State Allocation Board pursuant to
8subdivision (a) shall be supported by a statement of the
9apportionments made and to be made for the purposes described
10in Sections 101111 and 101112.
There shall be collected each year and in the same
12manner and at the same time as other state revenue is collected,
13in addition to the ordinary revenues of the state, a sum in an amount
14required to pay the principal of, and interest on, the bonds each
15year. It is the duty of all officers charged by law with any duty in
16regard to the collection of the revenue to do and perform each and
17every act that is necessary to collect that additional sum.
Notwithstanding Section 13340 of the Government
19Code, there is hereby appropriated from the General Fund in the
20State Treasury, for the purposes of this chapter, an amount that
21will equal the total of the following:
22(a) The sum annually necessary to pay the principal of, and
23interest on, bonds issued and sold pursuant to this chapter, as the
24principal and interest become due and payable.
25(b) The sum necessary to carry out Section 101128, appropriated
26without regard to fiscal years.
The State Allocation Board may request the Pooled
28Money Investment Board to make a loan from the Pooled Money
29Investment Account or any other approved form of interim
30financing, in accordance with Section 16312 of the Government
31Code, for the purpose of carrying out this chapter. The amount of
32the request shall not exceed the amount of the unsold bonds that
33the committee, by resolution, has authorized to be sold for the
34purpose of carrying out this chapter. The board shall execute any
35documents required by the Pooled Money Investment Board to
36obtain and repay the loan. Any amounts loaned shall be deposited
37in the fund to be allocated by the board in accordance with this
38chapter.
Notwithstanding any other provision of this chapter,
40or of the State General Obligation Bond Law, if the Treasurer sells
P12 1bonds pursuant to this chapter that include a bond counsel opinion
2to the effect that the interest on the bonds is excluded from gross
3income for federal tax purposes, subject to designated conditions,
4the Treasurer may maintain separate accounts for the investment
5of bond proceeds and for the investment earnings on those
6proceeds. The Treasurer may use or direct the use of those proceeds
7or earnings to pay any rebate, penalty, or other payment required
8under federal law or take any other action with respect to the
9investment and use of those bond proceeds required or desirable
10under federal law to maintain the tax-exempt status of those bonds
11and to obtain any other advantage under federal law on behalf of
12the funds of this
state.
For the purposes of carrying out this chapter, the
14Director of Finance may authorize the withdrawal from the General
15Fund of an amount not to exceed the amount of the unsold bonds
16that have been authorized by the State School Building Finance
17Committee to be sold for the purpose of carrying out this chapter.
18Any amounts withdrawn shall be deposited in the 2014 State
19School Facilities Fund consistent with this chapter. Any money
20made available under this section shall be returned to the General
21Fund, plus an amount equal to the interest that the money would
22have earned in the Pooled Money Investment Account, from
23proceeds received from the sale of bonds for the purpose of
24carrying out this chapter.
All money deposited in the 2014 State School Facilities
26Fund that is derived from premium and accrued interest on bonds
27sold shall be reserved in the fund and shall be available for transfer
28to the General Fund as a credit to expenditures for bond interest.
The bonds may be refunded in accordance with Article
306 (commencing with Section 16780) of Chapter 4 of Part 3 of
31Division 4 of Title 2 of the Government Code, which is a part of
32the State General Obligation Bond Law. Approval by the voters
33of the state for the issuance of the bonds described in this chapter
34includes the approval of the issuance of any bonds issued to refund
35any bonds originally issued under this chapter or any previously
36issued refunding bonds.
The Legislature hereby finds and declares that,
38inasmuch as the proceeds from the sale of bonds authorized by
39this chapter are not “proceeds of taxes” as that term is used in
40Article XIII B of the California Constitution, the disbursement of
P13 1these proceeds is not subject to the limitations imposed by that
2article.
3
(a) The 2014 California Community College Capital
9Outlay Bond Fund is hereby established in the State Treasury for
10deposit of funds from the proceeds of bonds issued and sold for
11the purposes of this chapter.
12(b) The Higher Education Facilities Finance Committee
13established pursuant to Section 67353 is hereby authorized to create
14a debt or debts, liability or liabilities, of the State of California
15pursuant to this chapter for the purpose of providing funds to aid
16the California Community Colleges.
17
(a) From the proceeds of bonds issued and sold
21pursuant to Article 3 (commencing with Section 101134), the sum
22of ____ dollars ($____) shall be deposited in the 2014 California
23Community College Capital Outlay Bond Fund for the purposes
24of this article. When appropriated, these funds shall be available
25for expenditure for the purposes of this article.
26(b) The purposes of this article include assisting in meeting the
27capital outlay financing needs of the California Community
28Colleges.
29(c) Proceeds from the sale of bonds issued and sold for the
30purposes of this article may be used to fund construction on
31existing campuses, including the construction of buildings and the
32acquisition of related fixtures, construction of facilities that may
33be used by more than one segment of public higher education
34
(intersegmental), the renovation and reconstruction of facilities,
35site acquisition, the equipping of new, renovated, or reconstructed
36facilities, which equipment shall have an average useful life of 10
37years; and to provide funds for the payment of preconstruction
38costs, including, but not limited to, preliminary plans and working
39drawings for facilities of the California Community Colleges.
(a) Of the total amount of bonds authorized to be
4issued and sold pursuant to Chapter 1 (commencing with Section
5101100), bonds in the total amount of ____ dollars ($____), not
6including the amount of any refunding bonds issued in accordance
7with Section 101139, or so much thereof as is necessary, may be
8issued and sold to provide a fund to be used for carrying out the
9purposes expressed in this chapter and to reimburse the General
10Obligation Bond Expense Revolving Fund pursuant to Section
1116724.5 of the Government Code. The bonds, when sold, shall be
12and constitute a valid and binding obligation of the State of
13California, and the full faith and credit of the State of California
14is hereby pledged for the punctual payment of the principal of, and
15interest on, the bonds as the principal and interest become due and
16payable.
17(b) It is
the intent of the Legislature that the California
18Community Colleges annually consider, as part of their annual
19capital outlay planning process, the inclusion of facilities that may
20be used by more than one segment of public higher education
21(intersegmental), and, that on or before May 15 of each year, those
22entities report their findings to the budget committees of each
23house of the Legislature.
24(c) Pursuant to this section, the Treasurer shall sell the bonds
25authorized by the Higher Education Facilities Finance Committee
26established pursuant to Section 67353 at any different times
27necessary to service expenditures required by the apportionments.
(a) The bonds authorized by this chapter shall be
29prepared, executed, issued, sold, paid, and redeemed as provided
30in the State General Obligation Bond Law (Chapter 4 (commencing
31with Section 16720) of Part 3 of Division 4 of Title 2 of the
32Government Code), and all of the provisions of that law, except
33Section 16727 of the Government Code to the extent that it
34conflicts with this part, apply to the bonds and to this chapter and
35are hereby incorporated into this chapter as though set forth in full
36within this chapter.
37(b) For the purposes of the State General Obligation Bond Law,
38each state agency administering an appropriation of the 2014
39Community College Capital Outlay Bond Fund is designated as
40the “board” for projects funded pursuant to this chapter.
P15 1(c) The proceeds of the bonds issued and sold
pursuant to this
2chapter shall be available for the purpose of funding aid to the
3California Community Colleges for the construction on existing
4or new campuses, and their respective off-campus centers and joint
5use and intersegmental facilities, as set forth in this chapter.
The Higher Education Facilities Finance Committee
7established pursuant to Section 67353 shall authorize the issuance
8of bonds under this chapter only to the extent necessary to fund
9the apportionments for the purposes described in this chapter that
10are expressly authorized by the Legislature in the annual Budget
11Act. Pursuant to that legislative direction, the committee shall
12determine whether or not it is necessary or desirable to issue bonds
13authorized pursuant to this chapter in order to carry out the
14purposes described in this chapter and, if so, the amount of bonds
15to be issued and sold. Successive issues of bonds may be authorized
16and sold to carry out those actions progressively, and it is not
17necessary that all of the bonds authorized to be issued be sold at
18any one time.
There shall be collected each year and in the same
20manner and at the same time as other state revenue is collected,
21in addition to the ordinary revenues of the state, a sum in an amount
22required to pay the principal of, and interest on, the bonds each
23year. It is the duty of all officers charged by law with any duty in
24regard to the collection of the revenue to do and perform each and
25every act which is necessary to collect that additional sum.
Notwithstanding Section 13340 of the Government
27Code, there is hereby appropriated from the General Fund in the
28State Treasury, for the purposes of this chapter, an amount that
29will equal the total of the following:
30(a) The sum annually necessary to pay the principal of, and
31interest on, bonds issued and sold pursuant to this chapter, as the
32principal and interest become due and payable.
33(b) The sum necessary to carry out Section 101137.5,
34appropriated without regard to fiscal years.
The board, as defined in subdivision (b) of Section
36101134.5, may request the Pooled Money Investment Board to
37make a loan from the Pooled Money Investment Account or any
38other approved form of interim financing, in accordance with
39Section 16312 of the Government Code, for the purpose of carrying
40out this chapter. The amount of the request shall not exceed the
P16 1amount of the unsold bonds that the committee, by resolution, has
2authorized to be sold for the purpose of carrying out this chapter.
3The board, as defined in subdivision (b) of Section 101134.5, shall
4execute any documents required by the Pooled Money Investment
5Board to obtain and repay the loan. Any amounts loaned shall be
6deposited in the fund to be allocated by the board in accordance
7with this chapter.
Notwithstanding any other provision of this chapter,
9or of the State General Obligation Bond Law, if the Treasurer sells
10bonds pursuant to this chapter that include a bond counsel opinion
11to the effect that the interest on the bonds is excluded from gross
12income for federal tax purposes, subject to designated conditions,
13the Treasurer may maintain separate accounts for the investment
14of bond proceeds and for the investment earnings on those
15proceeds. The Treasurer may use or direct the use of those proceeds
16or earnings to pay any rebate, penalty, or other payment required
17under federal law or take any other action with respect to the
18investment and use of those bond proceeds required or desirable
19under federal law to maintain the tax-exempt status of those bonds
20and to obtain any other advantage under federal law on behalf of
21the funds of this state.
(a) For the purposes of carrying out this chapter,
23the Director of Finance may authorize the withdrawal from the
24General Fund of an amount not to exceed the amount of the unsold
25bonds that have been authorized by the Higher Education Facilities
26Finance Committee to be sold for the purpose of carrying out this
27chapter. Any amounts withdrawn shall be deposited in the 2014
28California Community College Capital Outlay Bond Fund
29consistent with this chapter. Any money made available under this
30section shall be returned to the General Fund, plus an amount equal
31to the interest that the money would have earned in the Pooled
32Money Investment Account, from proceeds received from the sale
33of bonds for the purpose of carrying out this chapter.
34(b) Any request forwarded to the Legislature and the Department
35of Finance for funds from this bond
issue for expenditure for the
36purposes described in this chapter by the California Community
37Colleges shall be accompanied by the five-year capital outlay plan
38that reflects the needs and priorities of the community college
39system and is prioritized on a statewide basis. Requests shall
40include a schedule that prioritizes the seismic retrofitting needed
P17 1to significantly reduce, in the judgment of the particular college,
2seismic hazards in buildings identified as high priority by the
3college.
All money deposited in the 2014 California
5Community College Capital Outlay Bond Fund that is derived
6from premium and accrued interest on bonds sold shall be reserved
7in the fund and shall be available for transfer to the General Fund
8as a credit to expenditures for bond interest.
The bonds may be refunded in accordance with Article
106 (commencing with Section 16780) of Chapter 4 of Part 3 of
11Division 4 of Title 2 of the Government Code, which is a part of
12the State General Obligation Bond Law. Approval by the voters
13of the state for the issuance of the bonds described in this chapter
14includes the approval of the issuance of any bonds issued to refund
15any bonds originally issued under this chapter or any previously
16issued refunding bonds.
The Legislature hereby finds and declares that,
18inasmuch as the proceeds from the sale of bonds authorized by
19this chapter are not “proceeds of taxes” as that term is used in
20Article XIII B of the California Constitution, the disbursement of
21these proceeds is not subject to the limitations imposed by that
22article.
23
25
(a) The system of public universities in this state
29includes the University of California, the Hastings College of the
30Law, and the California State University, and their respective
31off-campus centers.
32(b) The 2014 University Capital Outlay Bond Fund is hereby
33established in the State Treasury for deposit of funds from the
34proceeds of bonds issued and sold for the purposes of this chapter.
35(c) The Higher Education Facilities Finance Committee
36established pursuant to Section 67353 is hereby authorized to create
37a debt or debts, liability or liabilities, of the State of California
38pursuant to this chapter for the purpose of providing funds to aid
39the University of California, the Hastings College of the Law, and
40the California State University.
(a) From the proceeds of bonds issued and sold
5pursuant to Article 4 (commencing with Section 101150), the sum
6of ____ dollars ($____) shall be deposited in the 2014 University
7Capital Outlay Bond Fund for the purposes of this article. When
8appropriated, these funds shall be available for expenditure for the
9purposes of this article.
10(b) The purposes of this article include assisting in meeting the
11capital outlay financing needs of the University of California and
12the Hastings College of the Law.
13(c) Proceeds from the sale of bonds issued and sold for the
14purposes of this article may be used to fund construction on
15existing campuses, including the construction of buildings and the
16acquisition of related fixtures, construction of facilities that may
17be used by more than one segment of public higher
education
18(intersegmental), the renovation and reconstruction of facilities,
19site acquisition, the equipping of new, renovated, or reconstructed
20facilities, which equipment shall have an average useful life of 10
21years; and to provide funds for the payment of preconstruction
22costs, including, but not limited to, preliminary plans and working
23drawings for facilities of the University of California and the
24Hastings College of the Law.
25
(a) From the proceeds of bonds issued and sold
30pursuant to Article 4 (commencing with Section 101150), the sum
31of ____ dollars ($____) shall be deposited in the 2014 University
32Capital Outlay Bond Fund for the purposes of this article. When
33appropriated, these funds shall be available for expenditure for the
34purposes of this article.
35(b) The purposes of this article include assisting in meeting the
36capital outlay financing needs of the California State University.
37(c) Proceeds from the sale of bonds issued and sold for the
38purposes of this article may be used to fund construction on
39existing campuses, including the construction of buildings and the
40acquisition of related fixtures, construction of facilities that may
P19 1be used by more than one segment of public higher education
2(intersegmental), the
renovation and reconstruction of facilities,
3site acquisition, the equipping of new, renovated, or reconstructed
4facilities, which equipment shall have an average useful life of 10
5years; and to provide funds for the payment of preconstruction
6costs, including, but not limited to, preliminary plans and working
7drawings for facilities of the California State University.
8
(a) Of the total amount of bonds authorized to be
12issued and sold pursuant to Chapter 1 (commencing with Section
13101100), bonds in the amount of ____ dollars ($____), not
14including the amount of any refunding bonds issued in accordance
15with Section 101159, or so much thereof as is necessary, may be
16issued and sold to provide a fund to be used for carrying out the
17purposes expressed in this chapter and to reimburse the General
18Obligation Bond Expense Revolving Fund pursuant to Section
1916724.5 of the Government Code. The bonds, when sold, shall be
20and constitute a valid and binding obligation of the State of
21California, and the full faith and credit of the State of California
22is hereby pledged for the punctual payment of the principal of, and
23interest on, the bonds as the principal and interest become due and
24payable.
25(b) It is the
intent of the Legislature that the University of
26California and the California State University annually consider,
27as part of their annual capital outlay planning process, the inclusion
28of facilities that may be used by more than one segment of public
29higher education (intersegmental), and, that on or before May 15
30of each year, those entities report their findings to the budget
31committees of each house of the Legislature.
32(c) Pursuant to this section, the Treasurer shall sell the bonds
33authorized by the Higher Education Facilities Finance Committee
34established pursuant to Section 67353 at any different times
35necessary to service expenditures required by the apportionments.
(a) The bonds authorized by this chapter shall be
37prepared, executed, issued, sold, paid, and redeemed as provided
38in the State General Obligation Bond Law (Chapter 4 (commencing
39with Section 16720) of Part 3 of Division 4 of Title 2 of the
40Government Code), and all of the provisions of that law, except
P20 1Section 16727 of the Government Code to the extent that it
2conflicts with this part, apply to the bonds and to this chapter and
3are hereby incorporated into this chapter as though set forth in full
4within this chapter.
5(b) For the purposes of the State General Obligation Bond Law,
6each state agency administering an appropriation of the 2014
7University Capital Outlay Bond Fund is designated as the “board”
8for projects funded pursuant to this chapter.
9(c) The proceeds of the bonds issued and sold pursuant
to this
10chapter shall be available for the purpose of funding aid to the
11University of California, the Hastings College of the Law, and the
12California State University, for the construction on existing or new
13campuses, and their respective off-campus centers and joint use
14and intersegmental facilities, as set forth in this chapter.
The Higher Education Facilities Finance Committee
16established pursuant to Section 67353 shall authorize the issuance
17of bonds under this chapter only to the extent necessary to fund
18the apportionments for the purposes described in this chapter that
19are expressly authorized by the Legislature in the annual Budget
20Act. Pursuant to that legislative direction, the committee shall
21determine whether or not it is necessary or desirable to issue bonds
22authorized pursuant to this chapter in order to carry out the
23purposes described in this chapter and, if so, the amount of bonds
24to be issued and sold. Successive issues of bonds may be authorized
25and sold to carry out those actions progressively, and it is not
26necessary that all of the bonds authorized to be issued be sold at
27any one time.
There shall be collected each year and in the same
29manner and at the same time as other state revenue is collected,
30in addition to the ordinary revenues of the state, a sum in an amount
31required to pay the principal of, and interest on, the bonds each
32year. It is the duty of all officers charged by law with any duty in
33regard to the collection of the revenue to do and perform each and
34every act which is necessary to collect that additional sum.
Notwithstanding Section 13340 of the Government
36Code, there is hereby appropriated from the General Fund in the
37State Treasury, for the purposes of this chapter, an amount that
38will equal the total of the following:
P21 1(a) The sum annually necessary to pay the principal of, and
2interest on, bonds issued and sold pursuant to this chapter, as the
3principal and interest become due and payable.
4(b) The sum necessary to carry out Section 101157, appropriated
5without regard to fiscal years.
The board, as defined in subdivision (b) of Section
7101151, may request the Pooled Money Investment Board to make
8a loan from the Pooled Money Investment Account or any other
9approved form of interim financing, in accordance with Section
1016312 of the Government Code, for the purpose of carrying out
11this chapter. The amount of the request shall not exceed the amount
12of the unsold bonds that the committee, by resolution, has
13authorized to be sold for the purpose of carrying out this chapter.
14The board, as defined in subdivision (b) of Section 101151, shall
15execute any documents required by the Pooled Money Investment
16Board to obtain and repay the loan. Any amounts loaned shall be
17deposited in the fund to be allocated by the board in accordance
18with this chapter.
Notwithstanding any other provision of this chapter,
20or of the State General Obligation Bond Law, if the Treasurer sells
21bonds pursuant to this chapter that include a bond counsel opinion
22to the effect that the interest on the bonds is excluded from gross
23income for federal tax purposes, subject to designated conditions,
24the Treasurer may maintain separate accounts for the investment
25of bond proceeds and for the investment earnings on those
26proceeds. The Treasurer may use or direct the use of those proceeds
27or earnings to pay any rebate, penalty, or other payment required
28under federal law or take any other action with respect to the
29investment and use of those bond proceeds required or desirable
30under federal law to maintain the tax-exempt status of those bonds
31and to obtain any other advantage under federal law on behalf of
32the funds of this state.
(a) For the purposes of carrying out this chapter, the
34Director of Finance may authorize the withdrawal from the General
35Fund of an amount not to exceed the amount of the unsold bonds
36that have been authorized by the Higher Education Facilities
37Finance Committee to be sold for the purpose of carrying out this
38chapter. Any amounts withdrawn shall be deposited in the 2014
39University Capital Outlay Bond Fund consistent with this chapter.
40Any money made available under this section shall be returned to
P22 1the General Fund, plus an amount equal to the interest that the
2money would have earned in the Pooled Money Investment
3Account, from proceeds received from the sale of bonds for the
4purpose of carrying out this chapter.
5(b) Any request forwarded to the Legislature and the Department
6of Finance for funds from this bond issue for
expenditure for the
7purposes described in this chapter by the University of California,
8the Hastings College of the Law, or the California State University
9shall be accompanied by the five-year capital outlay plan. Requests
10forwarded by a university or college shall include a schedule that
11prioritizes the seismic retrofitting needed to significantly reduce,
12in the judgment of the particular university or college, seismic
13hazards in buildings identified as high priority by the university
14or college.
All money deposited in the 2014 University Capital
16Outlay Bond Fund that is derived from premium and accrued
17interest on bonds sold shall be reserved in the fund and shall be
18available for transfer to the General Fund as a credit to expenditures
19for bond interest.
The bonds may be refunded in accordance with Article
216 (commencing with Section 16780) of Chapter 4 of Part 3 of
22Division 4 of Title 2 of the Government Code, which is a part of
23the State General Obligation Bond Law. Approval by the voters
24of the state for the issuance of the bonds described in this chapter
25includes the approval of the issuance of any bonds issued to refund
26any bonds originally issued under this chapter or any previously
27issued refunding bonds.
The Legislature hereby finds and declares that,
29inasmuch as the proceeds from the sale of bonds authorized by
30this chapter are not “proceeds of taxes” as that term is used in
31Article XIII B of the California Constitution, the disbursement of
32these proceeds is not subject to the limitations imposed by that
33article.
The Secretary of State shall submit Section 10 of this
35act to the voters at the November 4, 2014, statewide general
36election.
The provisions of this act are severable. If any
38provision of this act or its application is held invalid, that invalidity
39shall not affect other provisions or applications that can be given
40effect without the invalid provision or application.
Sections 1 to 10, inclusive, of this act shall become
2operative only if the voters approve the Kindergarten-University
3Public Education Facilities Bond Act of 2014, as set forth in
4Section 10 of this act.
This act is an urgency statute necessary for the
6immediate preservation of the public peace, health, or safety within
7the meaning of Article IV of the Constitution and shall go into
8immediate effect. The facts constituting the necessity are:
9In order to ensure, at the earliest possible time, that the electorate
10is provided with the opportunity to vote on the financing of
11necessary educational facilities at the November 4, 2014, statewide
12general election, including related statutory changes, it is necessary
13that this act take effect immediately.
CORRECTIONS:
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Corrected 2-24-14—See last page. 99