Amended in Senate August 18, 2014

Amended in Senate June 23, 2014

Amended in Assembly May 23, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 2235


Introduced by Assembly Members Buchanan and Hagman

(Coauthors: Assembly Members Bocanegra, Bonta, Ian Calderon, Chávez, Chesbro, Fong, Gonzalez, Maienschein, Medina, Nazarian, Olsen, V. Manuel Pérez, Quirk-Silva, and Skinner)

February 21, 2014


An act to amend Sectionsbegin delete 17070.40 and 17074.26end deletebegin insert 17070.15, 17070.40, 17070.75, 17072.35, 17074.25, 17074.26, and 17592.70end insert of, to add Sections 17071.15, 17072.40,begin delete andend delete 17073.16begin insert, and 17254end insert to, to add Part 70 (commencing with Section 101100) to Division 14 of Title 3 of, and to repeal Sections 17070.99, 17071.33, 17071.35, and 17071.40 of, the Education Code, relating to education facilities, by providing the funds necessary therefor through an election for the issuance and sale of bonds of the State of California and for the handling and disposition of those funds, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

AB 2235, as amended, 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.

begin insert

The bill would revise the definition of modernization under the act to include the replacement of facilities on a site containing a permanent structure that is at least 25 years old or, in the case of a portable classroom, that is at least 20 years old, as specified.

end insert
begin insert

The bill would reduce the minimum amount that an applicant school district under the act must set aside for ongoing and major maintenance of school buildings from 3% to 2% of the total general fund expenditures of that district in a fiscal year.

end insert

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 constructionbegin insert or modernizationend insert program funded by the proceeds of any bond approved by the voters after November 1, 2014, to reestablish eligibility, as specifiedbegin insert, and to conduct an inventory of existing facilities for purposes of maintaining a statewide school facilities inventoryend insert.

begin insert

The bill would authorize a grant for new construction or modernization under the act to be used for seismic mitigation purposes and for related design, study, and testing costs, and require the State Allocation Board, in the development of guidelines and regulations, to provide a school district with maximum flexibility in the design, modernization, and new construction of school facilities.

end insert

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.

begin insert

The bill would require the State Department of Education, the Division of the State Architect, the Office of Public School Construction, and the Department of Toxic Substances Control to convene for the purposes of developing an interagency plan to streamline the school facility construction application, review, and audit processes in order to reduce the time and improve the efficiency of the school facility construction process. The bill would require that this interagency plan be submitted to the Legislature on or before July 1, 2015.

end insert

(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 23 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 authorizebegin delete an unspecified amount end deletebegin insert $4,300,000,000end insert of state general obligation bonds, as scheduled, 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, thereby making an appropriation.

Thebegin insert proposedend insert bond act would become operative only if approved by the voters at the November 4, 2014, statewide general election, andbegin insert the billend insert would provide for its submission to the voters at that election.begin insert The bill would require the Secretary of State to publish, and separately mail, a supplemental ballot pamphlet regarding the proposed bond act if it is not possible to include information regarding this proposed bond act in the ballot pamphlet for the November 4, 2014, statewide general election. The bill would provide for public examination of the translations of the ballot title and condensed statement of the ballot title of the proposed bond act, as specified.end insert

(3) This bill would specify thatbegin delete itend deletebegin insert certain of its provisionsend insert 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: 23. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

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

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 17070.15 of the end insertbegin insertEducation Codeend insertbegin insert is
2amended to read:end insert

P4    1

17070.15.  

The following terms, wherever used or referred to
2in this chapter, shall have the following meanings, respectively,
3unless a different meaning appears from the context:

4(a) “Apportionment” means a reservation of funds for the
5purpose of eligible new construction, modernization, or hardship
6approved by the board for an applicant school district.

7(b) “Attendance area” means the geographical area serving an
8existing high school and those junior high schools and elementary
9schools included therein.

10(c) “Board” means the State Allocation Board as established by
11Section 15490 of the Government Code.

12(d) “Committee” means the State School Building Finance
13Committee established pursuant to Section 15909.

14(e) “County fund” means a county school facilities fund
15established pursuant to Section 17070.43.

16(f) “Department” means the Department of General Services.

17(g) “Fund” means the applicable 1998 State School Facilities
18Fund, the 2002 State School Facilities Fund, or the 2004 State
19School Facilities Fund, established pursuant to Section 17070.40.

20(h) “Good repair” has the same meaning as specified in
21subdivision (d) of Section 17002.

22(i) “Modernization” means any modificationbegin insert or replacementend insert of
23a permanent structure that is at least 25 years old, or in the case of
24a portable classroom, that is at least 20 years old, that will enhance
25the ability of the structure to achieve educational purposes.

26(j) “Portable classroom” means a classroom building of one or
27more stories that is designed and constructed to be relocatable and
28transportable over public streets, and with respect to a single story
29portable classroom, is designed and constructed for relocation
30without the separation of the roof or floor from the building and
31when measured at the most exterior walls, has a floor area not in
32excess of 2,000 square feet.

33(k) “Property” includes all property, real, personal or mixed,
34tangible or intangible, or any interest therein necessary or desirable
35for carrying out the purposes of this chapter.

36(l) “School building capacity” means the capacity of a school
37building to house pupils.

38(m) “School district” means a school district or a county office
39of education. For purposes of determining eligibility under this
P5    1chapter, “school district” may also mean a high school attendance
2area.

3

begin deleteSECTION 1.end delete
4begin insertSEC. 2.end insert  

Section 17070.40 of the Education Code is amended
5to read:

6

17070.40.  

(a) (1) A fund is hereby established in the State
7Treasury, to be known as the 1998 State School Facilities Fund.
8All money in the fund, including any money deposited in that fund
9from any source whatsoever, and notwithstanding Section 13340
10of the Government Code, is hereby continuously appropriated
11without regard to fiscal years for expenditure pursuant to this
12chapter.

13(2) The board may apportion funds to school districts for the
14purposes of this chapter from funds transferred to the 1998 State
15School Facilities Fund from any source.

16(3) The board may make apportionments in amounts not
17exceeding those funds on deposit in the 1998 State School Facilities
18Fund, and any amount of bonds authorized by the committee, but
19not yet sold by the Treasurer.

20(4) The board may make disbursements pursuant to any
21apportionment made from any funds in the 1998 State School
22Facilities Fund, irrespective of whether there exists at the time of
23the disbursement an amount in the 1998 State School Facilities
24Fund sufficient to permit payment in full of all apportionments
25previously made. However, no disbursement shall be made from
26any funds required by law to be transferred to the General Fund.

27(b) (1) A fund is hereby established in the State Treasury, to
28be known as the 2002 State School Facilities Fund. All money in
29the fund, including any money deposited in that fund from any
30source whatsoever, and notwithstanding Section 13340 of the
31Government Code, is hereby continuously appropriated without
32regard to fiscal years for expenditure pursuant to this chapter.

33(2) The board may apportion funds to school districts for the
34purposes of this chapter from funds transferred to the 2002 State
35School Facilities Fund from any source.

36(3) The board may make apportionments in amounts not
37exceeding those funds on deposit in the 2002 State School Facilities
38Fund, and any amount of bonds authorized by the committee, but
39not yet sold by the Treasurer.

P6    1(4) The board may make disbursements pursuant to any
2apportionment made from any funds in the 2002 State School
3Facilities Fund, irrespective of whether there exists at the time of
4the disbursement an amount in the 2002 State School Facilities
5Fund sufficient to permit payment in full of all apportionments
6previously made. However, no disbursement shall be made from
7any funds required by law to be transferred to the General Fund.

8(c) (1) A fund is hereby established in the State Treasury, to
9be known as the 2004 State School Facilities Fund. All money in
10the fund, including any money deposited in that fund from any
11source whatsoever, and notwithstanding Section 13340 of the
12Government Code, is hereby continuously appropriated without
13regard to fiscal years for expenditure pursuant to this chapter.

14(2) The board may apportion funds to school districts for the
15purposes of this chapter from funds transferred to the 2004 State
16School Facilities Fund from any source.

17(3) The board may make apportionments in amounts not
18exceeding those funds on deposit in the 2004 State School Facilities
19Fund, and any amount of bonds authorized by the committee, but
20not yet sold by the Treasurer.

21(4) The board may make disbursements pursuant to any
22apportionment made from any funds in the 2004 State School
23Facilities Fund, irrespective of whether there exists at the time of
24the disbursement an amount in the 2004 State School Facilities
25Fund sufficient to permit payment in full of all apportionments
26previously made. However, no disbursement shall be made from
27any funds required by law to be transferred to the General Fund.

28(d) (1) A fund is hereby established in the State Treasury, to
29be known as the 2006 State School Facilities Fund. All money in
30the fund, including any money deposited in that fund from any
31source whatsoever, and notwithstanding Section 13340 of the
32Government Code, is hereby continuously appropriated without
33regard to fiscal years for expenditure pursuant to this chapter.

34(2) The board may apportion funds to school districts for the
35purposes of this chapter from funds transferred to the 2006 State
36School Facilities Fund from any source.

37(3) The board may make apportionments in amounts not
38exceeding those funds on deposit in the 2006 State School Facilities
39Fund, and any amount of bonds authorized by the committee, but
40not yet sold by the Treasurer.

P7    1(4) The board may make disbursements pursuant to any
2apportionment made from any funds in the 2006 State School
3Facilities Fund, irrespective of whether there exists at the time of
4the disbursement an amount in the 2006 State School Facilities
5Fund sufficient to permit payment in full of all apportionments
6previously made. However, no disbursement shall be made from
7any funds required by law to be transferred to the General Fund.

8(e) (1) A fund is hereby established in the State Treasury, to
9be known as the 2014 State School Facilities Fund. All money in
10the fund, including any money deposited in that fund from any
11source whatsoever, and notwithstanding Section 13340 of the
12Government Code, is hereby continuously appropriated without
13regard to fiscal years for expenditure pursuant to this chapter.

14(2) The board may apportion funds to school districts for the
15purposes of this chapter from funds transferred to the 2014 State
16School Facilities Fund from any source.

17(3) The board may make apportionments in amounts not
18exceeding those funds on deposit in the 2014 State School Facilities
19Fund, and any amount of bonds authorized by the committee, but
20not yet sold by the Treasurer.

21(4) The board may make disbursements pursuant to any
22apportionment made from any funds in the 2014 State School
23Facilities Fund, irrespective of whether there exists at the time of
24the disbursement an amount in the 2014 State School Facilities
25Fund sufficient to permit payment in full of all apportionments
26previously made. However, no disbursement shall be made from
27any funds required by law to be transferred to the General Fund.

28begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 17070.75 of the end insertbegin insertEducation Codeend insertbegin insert is amended
29to read:end insert

30

17070.75.  

(a) begin deleteThe end deletebegin insertAs a condition of participation in the school
31facility program, the end insert
board shall require the school district to make
32all necessary repairs, renewals, and replacements to ensure that a
33project is at all times maintained in good repair, working order,
34and condition. All costs incurred for this purpose shall be borne
35by the school district.

36(b) In order to ensure compliance with subdivision (a) and to
37encourage school districts to maintain all buildings under their
38control, the board shall require an applicant school district to do
39all of the following prior to the approval of a project:

P8    1(1) Establish a restricted account within the general fund of the
2school district for the exclusive purpose of providing moneys for
3ongoing and major maintenance of school buildings, according
4the highest priority to funding for the purposes set forth in
5subdivision (a).

6(2) (A) Agree to deposit into the account established pursuant
7to paragraph (1), in each fiscal year for 20 years after receipt of
8funds under this chapter, a minimum amount equal to or greater
9thanbegin delete 3end deletebegin insert 2end insert percent of the total general fund expenditures of the
10applicant school district, including other financing uses, for that
11fiscal year.begin delete Annual deposits to the account established pursuant to
12paragraph (1) in excess of 2end delete
begin delete12end deletebegin delete percent of the school district general
13fund budget may count towards the amount of funds required to
14be contributed by a school district in order to receive
15apportionments from the State School Deferred Maintenance Fund
16pursuant to Section 17584 to the extent that those funds are used
17for purposes that qualify for funding under that section.end delete

begin delete

18(B) Notwithstanding subparagraph (A), for the 2004-05 fiscal
19year only, an applicant school district shall deposit into the account
20established pursuant to paragraph (1), no less than 2 percent of the
21total general fund expenditures of the school district, including
22other financing uses, for the fiscal year. The annual deposit to the
23account in excess of 112 percent of the school district general fund
24budget for the 2004-05 fiscal year may count towards the amount
25that a school district is required to contribute in order to receive
26apportionments from the State School Deferred Maintenance Fund
27pursuant to Section 17584 to the extent that those funds are used
28for purposes that qualify for funding under that section.

end delete
begin delete

29(C)

end delete

30begin insert(B)end insert A school district contribution to the account may be provided
31in lieu of meeting the ongoing maintenance requirements pursuant
32to Section 17014 to the extent the funds are used for purposes
33established in that section. A school district that serves as the
34administrative unit for a special education local plan area may
35elect to exclude from its total general fund expenditures, for
36purposes of this paragraph, the distribution of revenues that are
37passed through to participating members of the special education
38local plan area.

begin delete

39(D)

end delete

40begin insert(C)end insert This paragraph applies only to the following school districts:

P9    1(i) High school districts with an average daily attendance greater
2than 300 pupils.

3(ii) Elementary school districts with an average daily attendance
4greater than 900 pupils.

5(iii) Unified school districts with an average daily attendance
6greater than 1,200 pupils.

7(3) Certify that it has publicly approved an ongoing and major
8maintenance plan that outlines the use of the funds deposited, or
9to be deposited, pursuant to paragraph (2). The plan may provide
10that the school district need not expend all of its annual allocation
11for ongoing and major maintenance in the year in which it is
12deposited if the cost of major maintenance requires that the
13allocation be carried over into another fiscal year. However, any
14state funds carried over into a subsequent year may not be counted
15toward the annual minimum contribution by the school district.begin delete A
16plan developed in compliance with this section shall be deemed
17to meet the requirements of Section 17585.end delete

begin delete

18(c) A school district to which paragraph (2) of subdivision (b)
19does not apply shall certify to the board that it can reasonably
20maintain its facilities with a lesser level of maintenance.

end delete
begin delete

21(d)

end delete

22begin insert(c)end insert For purposes of calculating a county office of education
23requirement pursuant to this section, thebegin delete 3end deletebegin insert 2end insert percent maintenance
24requirement shall be based upon the county office of education
25general fund less any restricted accounts.

begin delete

26(e)

end delete

27begin insert(d)end insert As a condition of participation in the school facilities
28program or the receipt of funds pursuant to Section 17582, for a
29fiscal year after the 2004-05 fiscal year, a school district shall
30establish a facilities inspection system to ensure that each of its
31 schools is maintained in good repair.

begin delete

32(f)

end delete

33begin insert(e)end insert For purposes of this section, “good repair” has the same
34meaning as specified in subdivision (d) of Section 17002.

35

begin deleteSEC. 2.end delete
36begin insertSEC. 4.end insert  

Section 17070.99 of the Education Code is repealed.

37

begin deleteSEC. 3.end delete
38begin insertSEC. 5.end insert  

Section 17071.15 is added to the Education Code, to
39read:

P10   1

17071.15.  

Notwithstanding Section 17071.10, the board may
2require each school district that elects to participate in the new
3construction program funded by the proceeds of any bond approved
4by voters after November 1, 2014, to reestablish eligibility pursuant
5to regulations adopted by the board.begin insert In addition, the board shall
6require a school district that elects to participate in the new
7construction program to conduct an inventory of existing facilities
8and submit this information to the board, as prescribed by the
9board, for purposes of maintaining a statewide school facilities
10inventory.end insert

11

begin deleteSEC. 4.end delete
12begin insertSEC. 6.end insert  

Section 17071.33 of the Education Code is repealed.

13

begin deleteSEC. 5.end delete
14begin insertSEC. 7.end insert  

Section 17071.35 of the Education Code is repealed.

15

begin deleteSEC. 6.end delete
16begin insertSEC. 8.end insert  

Section 17071.40 of the Education Code is repealed.

17begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 17072.35 of the end insertbegin insertEducation Codeend insertbegin insert is amended
18to read:end insert

19

17072.35.  

begin insert(a)end insertbegin insertend insertbegin insert(1)end insertbegin insertend insertA grant for new construction may be used
20for any and all costs necessary to adequately house new pupils in
21any approved project, and those costs may only include the cost
22of design, engineering, testing, inspection, plan checking,
23construction management, site acquisition and development,
24evaluation and response action costs relating to hazardous
25substances at a new or existing schoolsite, demolition, construction,
26acquisition and installation of portable classrooms, landscaping,
27necessary utility costs, utility connections and other fees, equipment
28including telecommunication equipment to increase school security,
29furnishings, and the upgrading of electrical systems or the wiring
30or cabling of classrooms in order to accommodate educational
31technology. A grant for new construction may also be used to
32acquire an existing government or privately owned building, or a
33privately financed school building, and for the necessary costs of
34converting the government or privately owned building for public
35school use. A grant for new construction may also be used for the
36costs of designs and materials that promote the efficient use of
37energy and water, the maximum use of natural lighting and indoor
38air quality, the use of recycled materials and materials that emit a
39minimum of toxic substances, the use of acoustics conducive to
40teaching and learning, and other characteristics of high performance
P11   1schools.begin insert A grant for new construction may be used for seismic
2mitigation purposes and for related design, study, and testing costs.end insert

begin insert

3(2) An applicant who receives a new construction grant shall
4ensure that the project incorporates designs and materials that
5promote the efficient use of energy and water, the maximum use
6of natural lighting and indoor air quality, the use of recycled
7materials and materials that emit a minimum of toxic substances,
8the use of acoustics conducive to teaching and learning, and other
9characteristics of high performance schools.

end insert
begin insert

10(b) In the development of guidelines and regulations, the board
11shall provide a school district with maximum flexibility in the
12design and new construction of school facilities.

end insert
13

begin deleteSEC. 7.end delete
14begin insertSEC. 10.end insert  

Section 17072.40 is added to the Education Code, to
15read:

16

17072.40.  

The Office of Public School Construction, in
17consultation with the State Department of Education, shall
18recommend to the board regulations that will provide school
19districts with flexibility in designing instructional facilities.begin insert These
20recommendations shall propose revisions to any regulations that
21limit the ability of school districts to use new construction grants
22to construct instructional space approved by the State Department
23of Education. The proposed revisions shall ensure that a school
24district has the ability to design a facility that provides a flexible
25learning environment, provides for the integration and use of
26technology, and serves as an instructional space and learning
27environment that supports and enhances the educational delivery
28process.end insert

29

begin deleteSEC. 8.end delete
30begin insertSEC. 11.end insert  

Section 17073.16 is added to the Education Code, to
31read:

32

17073.16.  

The board may require each school district that elects
33to participate in the modernization program funded by the proceeds
34of any bond approved by voters after November 1, 2014, to
35reestablish baseline eligibility for each schoolsite pursuant to
36regulations adopted by the board.begin insert In addition, the board shall
37require a school district that elects to participate in the
38modernization program to conduct an inventory of existing
39facilities and submit this information to the board, as prescribed
P12   1by the board, for purposes of maintaining a statewide school
2facilities inventory.end insert

3begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 17074.25 of the end insertbegin insertEducation Codeend insertbegin insert is amended
4to read:end insert

5

17074.25.  

(a) begin insert(1)end insertbegin insertend insertA modernization apportionment may be
6used for an improvement to extend the useful life of, or to enhance
7the physical environment of, the school. The improvement may
8only include the cost of design, engineering, testing, inspection,
9plan checking, construction management, demolition, construction,
10the replacement of portable classrooms, necessary utility costs,
11utility connection and other fees, the purchase and installation of
12air-conditioning equipment and insulation materials and related
13costs, furniture and equipment, including telecommunication
14equipment to increase school security, fire safety improvements,
15playground safety improvements, the identification, assessment,
16or abatement of hazardous asbestos, seismic safety improvements,
17and the upgrading of electrical systems or the wiring or cabling of
18classrooms in order to accommodate educational technology. A
19modernization grant may not be used for costs associated with
20acquisition and development of real property or for routine
21maintenance and repair. A modernization apportionment may also
22be used for the cost of designs and materials that promote the
23efficient use of energy and water, the maximum use of natural
24lighting and indoor air quality, the use of recycled materials and
25materials that emit a minimum of toxic substances, the use of
26acoustics conducive to teaching and learning, and other
27characteristics of high-performance schools.begin insert A modernization
28apportionment may also be used for seismic mitigation purposes
29and for related design, study, and testing costs.end insert

begin insert

30(2) An applicant who receives a modernization apportionment
31shall ensure that the project incorporates designs and materials
32that promote the efficient use of energy and water, the maximum
33use of natural lighting and indoor air quality, the use of recycled
34materials and materials that emit a minimum of toxic substances,
35the use of acoustics conducive to teaching and learning, and other
36characteristics of high performance schools.

end insert
begin insert

37(b) In the development of guidelines and regulations, the board
38shall provide a school district with maximum flexibility in the
39design and modernization of school facilities.

end insert
begin insert

P13   1(c) (1) A modernization apportionment may also be used to
2demolish and construct a building or buildings on an existing
3schoolsite if the total cost of providing a new school building,
4including land, on a new site would not protect the economic
5interest of the state and school district.

end insert
begin insert

6(2) A project deemed to meet the requirements of paragraph
7(1) shall be eligible for a grant equal to the grant provided under
8Section 17072.10.

end insert
begin insert

9(d) The board shall establish additional requirements it deems
10necessary to ensure that the economic interests of the state and
11the educational interests of the children of the state are protected.

end insert
12

begin deleteSEC. 9.end delete
13begin insertSEC. 13.end insert  

Section 17074.26 of the Education Code is amended
14to read:

15

17074.26.  

The board shall adopt regulations to adjust the
16per-pupil amounts set forth in Section 17074.10 for modernization
17projects for school buildings that are 50 years old or older based
18upon the higher costs associated with modernizing older buildings.

19begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 17254 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
20read:end insert

begin insert
21

begin insert17254.end insert  

(a) The State Department of Education, the Division
22of the State Architect, the Office of Public School Construction,
23and the Department of Toxic Substances Control shall convene
24for the purposes of developing an interagency plan to streamline
25the school facility construction application, review, and audit
26processes in order to reduce the time and improve the efficiency
27of the school facility construction process.

28(b) The interagency plan developed pursuant to subdivision (a)
29shall be submitted to the Legislature, in accordance with Section
309795 of the Government Code, on or before July 1, 2015. It is the
31intent of the Legislature that operative regulatory language
32adopted by the board before the effective date of this section be
33reviewed and revised to ensure that the School Facility Program
34is being implemented in a manner that reduces duplicative
35processes for the review, approval, and audit of school facility
36new construction and modernization projects.

end insert
37begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 17592.70 of the end insertbegin insertEducation Codeend insertbegin insert is amended
38to read:end insert

39

17592.70.  

(a) There is hereby established the School Facilities
40Needs Assessment Grant Program with the purpose to provide for
P14   1a one-time comprehensive assessment of school facilities needs.
2The grant program shall be administered by the State Allocation
3Board.

4(b) (1) The grants shall be awarded to school districts on behalf
5of schoolsites ranked in deciles 1 to 3, inclusive, on the Academic
6Performance Index (API), pursuant to Section 52056, based on
7the 2003 base API score for each school newly constructed prior
8to January 1, 2000.

9(2) For purposes of this section, schools ranked in deciles 1 to
103, inclusive, on the 2003 base API shall include any schools
11determined by the department to meet either of the following:

12(A) The school meets all of the following criteria:

13(i) Does not have a valid base API score for 2003.

14(ii) Is operating in fiscal year 2004-05 and was operating in
15fiscal year 2003-04 during the Standardized Testing and Reporting
16(STAR) Program testing period.

17(iii) Has a valid base API score for 2002 that was ranked in
18deciles 1 to 3, inclusive, in that year.

19(B) The school has an estimated base API score for 2003 that
20would be in deciles 1 to 3, inclusive.

21(3) The department shall estimate an API score for any school
22meeting the criteria of clauses (i) and (ii) of subparagraph (A) of
23paragraph (2) and not meeting the criteria of clause (iii) of
24subparagraph (A) of paragraph (2), using available testing scores
25and any weighting or corrective factors it deems appropriate. The
26department shall provide those API scores to the Office of Public
27School Construction and post them on its Web site within 30 days
28of the enactment of this section.

29(4) For purposes of this section, schools ranked in deciles 1 to
303, inclusive, on the 2003 base API shall exclude any schools
31determined by the department to be operated by county offices of
32education pursuant to Section 56140.

33(c) The board shall allocate funds pursuant to subdivision (b)
34to school districts with jurisdiction over eligible schoolsites, based
35on ten dollars ($10) per pupil enrolled in the eligible school as of
36October 2003, with a minimum allocation of seven thousand five
37hundred dollars ($7,500) for each schoolsite.

38(d) As a condition of receiving funds pursuant to this section,
39school districts shall do all of the following:

P15   1(1) Use the funds to develop a comprehensive needs assessment
2of all schoolsites eligible for grants pursuant to subdivision (b).
3The assessment shall contain, at a minimum, all of the following
4information for each schoolsite:

5(A) The year each building that is currently used for instructional
6purposes was constructed.

7(B) The year, if any, each building that is currently used for
8instructional purposes was last modernized.

9(C) The pupil capacity of the school.

10(D) The number of pupils enrolled in the school.

11(E) The density of the school campus measured in pupils per
12acre.

13(F) The total number of classrooms at the school.

14(G) The age and number of portable classrooms at the school.

15(H) Whether the school is operating on a multitrack, year-round
16calendar, and, if so, what type.

17(I) Whether the school has a cafeteria, or an auditorium or other
18space used for pupil eating and not for class instruction.

19(J) The useful life remaining of all major building systems for
20each structure housing instructional space, including, but not
21limited to, sewer, water, gas, electrical, roofing, and fire and life
22safety protection.

23(K) The estimated costs for five years necessary to maintain
24functionality of each instructional space to maintain health, safety,
25and suitable learning environment, as applicable, including
26classroom, counseling areas, administrative space, libraries,
27gymnasiums, multipurpose and dining space, and the accessibility
28to those spaces.

29(L) A list of necessary repairs.

30(2) Use the data currently filed with the state as part of the
31process of applying for and obtaining modernization or construction
32funds for school facilities, or information that is available in the
33California Basic Education Data System for the element required
34in subparagraphs (D), (E), (F), and (G) of paragraph (1).

35(3) Use the assessment as the baseline for the facilities inspection
36system required pursuant to subdivisionbegin delete (e)end deletebegin insert (d)end insert of Section
3717070.75.

38(4) Provide the results of the assessment to the Office of Public
39School Construction, including a report on the expenditures made
40in performing the assessment. It is the intent of the Legislature
P16   1that the assessments be completed as soon as possible, but not later
2than January 1, 2006.

3(5) If a school district does not need the full amount of the
4allocation it receives pursuant to this section, the school district
5shall expend the remaining funds for making facilities repairs
6identified in its needs assessment. The school district shall report
7to the Office of Public School Construction on the repairs
8completed pursuant to this paragraph and the cost of the repairs.

9(6) Submit to the Office of Public School Construction an
10interim report regarding the progress made by the school district
11in completing the assessments of all eligible schools.

12

begin deleteSEC. 10.end delete
13begin insertSEC. 16.end insert  

Part 70 (commencing with Section 101100) is added
14to Division 14 of Title 3 of the Education Code, to read:

15 

16PART 70.  KINDERGARTEN-UNIVERSITY PUBLIC
17EDUCATION FACILITIES BOND ACT OF 2014

18

18 

19Chapter  1. General
20

 

21

101100.  

This part shall be known and may be cited as the
22Kindergarten-University Public Education Facilities Bond Act of
232014.

24

101101.  

The incorporation of, or reference to, any provision
25of California statutory law in this part includes all acts amendatory
26thereof and supplementary thereto.

27

101102.  

(a) Bonds in the total amount ofbegin delete____ dollars ($____), end delete
28begin insert four billion three hundred million dollars ($4,300,000,000),end insert not
29including the amount of any refunding bonds issued in accordance
30with Sections 101130, 101139, and 101159, or so much thereof
31as is necessary, may be issued and sold to provide a fund to be
32used for carrying out the purposes expressed in this part and to
33reimburse the General Obligation Bond Expense Revolving Fund
34pursuant to Section 16724.5 of the Government Code. The bonds,
35when sold, shall be and constitute a valid and binding obligation
36of the State of California, and the full faith and credit of the State
37of California is hereby pledged for the punctual payment of the
38principal of, and interest on, the bonds as the principal and interest
39become due and payable.

P17   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 

8Chapter  2. Kindergarten Through 12th Grade
9

9 

10Article 1.  Kindergarten Through Grade 12 School Facilities
11Program Provisions
12

 

13

101110.  

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.

18

101111.  

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.

30

101112.  

(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 ofbegin delete ____ dollars ($____) end deletebegin insert one billion two hundred
34thirty million dollars ($1,230,000,000)end insert
for new construction of
35school facilities of applicant school districts under Chapter 12.5
36(commencing with Section 17070.10) of Part 10 of Division 1 of
37Title 1.

begin delete

38(2) The amount of ____ dollars ($____) shall be available for
39providing school facilities to charter schools pursuant to Article
P18   112 (commencing with Section 17078.52) of Chapter 12.5 of Part
210 of Division 1 of Title 1.

3(3)

end delete

4begin insert(end insertbegin insert2)end insert The amount ofbegin delete ____ dollars ($____) end deletebegin insert two billion four
5hundred seventy million dollars ($2,470,000,000)end insert
for the
6modernization of school facilities pursuant to Chapter 12.5
7(commencing with Section 17070.10) of Part 10 of Division 1 of
8Title 1.

begin insert

9(3) Of the amount allocated in this subdivision, up to 5 percent
10shall be available for providing facilities to charter schools
11pursuant to Article 12 (commencing with Section 17078.52) of
12Chapter 12.5 of Part 10 of Division 1 of Title 1.

end insert

13(b) School districts may use funds allocated pursuant to
14paragraph (3) of subdivision (a) only for one or more of the
15following purposes in accordance with Chapter 12.5 (commencing
16with Section 17070.10) of Part 10 of Division 1 of Title 1:

17(1) The purchase and installation of air-conditioning equipment
18and insulation materials, and related costs.

19(2) Construction projects or the purchase of furniture or
20equipment designed to increase school security or playground
21safety.

22(3) The identification, assessment, or abatement in school
23facilities of hazardous asbestos.

24(4) Project funding for high-priority roof replacement projects.

25(5) Any other modernization of facilities pursuant to Chapter
2612.5 (commencing with Section 17070.10) of Part 10 of Division
271 of Title 1.

28(c) Funds allocated pursuant to paragraph (1) of subdivision (a)
29may also be utilized to provide new construction grants for eligible
30applicant county boards of education under Chapter 12.5
31(commencing with Section 17070.10) of Part 10 of Division 1 of
32Title 1 for funding classrooms for severely handicapped pupils,
33or for funding classrooms for county community school pupils.

begin insert
34

begin insert101113.end insert  

The board shall assign priority for funding under this
35chapter to applicant school districts that demonstrate participation
36in a community-based effort to coordinate educational,
37developmental, family, health, and other comprehensive services
38by engaging in public and private partnerships with local public
39entities and other nonprofit or private community partners. Criteria
P19   1that demonstrate this participation shall include all of the
2following:

3(a) Institutionalized structures for cross-agency collaboration,
4including, but not limited to, memorandums of understanding to
5coordinate activities and services.

6(b) Agreements for joint use and operations of school facilities
7that provide for extended hours of use for students, families, and
8the community, integration of libraries, early childhood education,
9child care centers, senior centers, outdoor recreation or
10environmental education, arts education, and career technical
11education and adult education offerings for students and
12community members.

13(c) Participation in the State Community Schools Network.

14(d) Participation in technical assistance and training, including
15professional development, for full-service community schools.

16(e) Certification that the district’s school facilities master plan
17is consistent with the regional sustainable communities strategy
18established pursuant to Section 65080 of the Government Code.

end insert

19 

20Article 2.  Kindergarten Through Grade 12 School Facilities
21Fiscal Provisions
22

 

23

101120.  

(a) Of the total amount of bonds authorized to be
24issued and sold pursuant to Chapter 1 (commencing with Section
25101000), bonds in the amount ofbegin delete ____ dollars ($____), end deletebegin insert three
26billion seven hundred million dollars ($3,700,000,000),end insert
not
27including the amount of any refunding bonds issued in accordance
28with Section 101130, or so much thereof as is necessary, may be
29issued and sold to provide a fund to be used for carrying out the
30purposes expressed in this chapter and to reimburse the General
31Obligation Bond Expense Revolving Fund pursuant to Section
3216724.5 of the Government Code. The bonds, when sold, shall be
33and constitute a valid and binding obligation of the State of
34California, and the full faith and credit of the State of California
35is hereby pledged for the punctual payment of the principal of, and
36interest on, the bonds as the principal and interest become due and
37payable.

38(b) Pursuant to this section, the Treasurer shall sell the bonds
39authorized by the State School Building Finance Committee
P20   1established pursuant to Section 15909 at any different times
2necessary to service expenditures required by the apportionments.

3

101121.  

The State School Building Finance Committee,
4established by Section 15909 and composed of the Governor, the
5Controller, the Treasurer, the Director of Finance, and the
6Superintendent, or their designated representatives, all of whom
7shall serve thereon without compensation, and a majority of whom
8shall constitute a quorum, is continued in existence for the purpose
9of this chapter. The Treasurer shall serve as chairperson of the
10committee. Two Members of the Senate appointed by the Senate
11Committee on Rules, and two Members of the Assembly appointed
12by the Speaker of the Assembly, shall meet with and provide advice
13to the committee to the extent that the advisory participation is not
14incompatible with their respective positions as Members of the
15Legislature. For the purposes of this chapter, the Members of the
16Legislature shall constitute an interim investigating committee on
17the subject of this chapter and, as that committee, shall have the
18powers granted to, and duties imposed upon, those committees by
19the Joint Rules of the Senate and the Assembly. The Director of
20Finance shall provide assistance to the committee as it may require.
21The Attorney General of the state is the legalbegin delete adviserend deletebegin insert advisorend insert of
22the committee.

23

101122.  

(a) The bonds authorized by this chapter shall be
24prepared, executed, issued, sold, paid, and redeemed as provided
25in the State General Obligation Bond Law (Chapter 4 (commencing
26with Section 16720) of Part 3 of Division 4 of Title 2 of the
27Government Code), and all of the provisions of that law, except
28Section 16727 of the Government Code to the extent that it
29conflicts with this part, apply to the bonds and to this chapter and
30are hereby incorporated into this chapter as though set forth in full
31within this chapter.

32(b) For purposes of the State General Obligation Bond Law, the
33State Allocation Board is designated the “board” for purposes of
34administering the 2014 State School Facilities Fund.

35

101123.  

(a) Upon request of the State Allocation Board, the
36State School Building Finance Committee shall determine whether
37or not it is necessary or desirable to issue bonds authorized pursuant
38to this chapter in order to fund the apportionments and, if so, the
39amount of bonds to be issued and sold. Successive issues of bonds
40may be authorized and sold to fund those apportionments
P21   1progressively, and it is not necessary that all of the bonds
2authorized to be issued be sold at any one time.

3(b) A request of the State Allocation Board pursuant to
4subdivision (a) shall be supported by a statement of the
5apportionments made and to be made for the purposes described
6in Sections 101111 and 101112.

7

101124.  

There shall be collected each year and in the same
8manner and at the same time as other state revenue is collected,
9in addition to the ordinary revenues of the state, a sum in an amount
10required to pay the principal of, and interest on, the bonds each
11year. It is the duty of all officers charged by law with any duty in
12regard to the collection of the revenue to do and perform each and
13every act that is necessary to collect that additional sum.

14

101125.  

Notwithstanding Section 13340 of the Government
15Code, there is hereby appropriated from the General Fund in the
16State Treasury, for the purposes of this chapter, an amount that
17will equal the total of the following:

18(a) The sum annually necessary to pay the principal of, and
19interest on, bonds issued and sold pursuant to this chapter, as the
20principal and interest become due and payable.

21(b) The sum necessary to carry out Section 101128, appropriated
22without regard to fiscal years.

23

101126.  

The State Allocation Board may request the Pooled
24Money Investment Board to make a loan from the Pooled Money
25Investment Account or any other approved form of interim
26financing, in accordance with Section 16312 of the Government
27Code, for the purpose of carrying out this chapter. The amount of
28the request shall not exceed the amount of the unsold bonds that
29the committee, by resolution, has authorized to be sold for the
30purpose of carrying out this chapter. The board shall execute any
31documents required by the Pooled Money Investment Board to
32obtain and repay the loan. Any amounts loaned shall be deposited
33in the fund to be allocated by the board in accordance with this
34chapter.

35

101127.  

Notwithstanding any other provision of this chapter,
36or of the State General Obligation Bond Law, if the Treasurer sells
37bonds pursuant to this chapter that include a bond counsel opinion
38to the effect that the interest on the bonds is excluded from gross
39income for federal tax purposes, subject to designated conditions,
40the Treasurer may maintain separate accounts for the investment
P22   1of bond proceeds and for the investment earnings on those
2proceeds. The Treasurer may use or direct the use of those proceeds
3or earnings to pay any rebate, penalty, or other payment required
4under federal law or take any other action with respect to the
5investment and use of those bond proceeds required or desirable
6under federal law to maintain the tax-exempt status of those bonds
7and to obtain any other advantage under federal law on behalf of
8the funds of this state.

9

101128.  

For the purposes of carrying out this chapter, the
10Director of Finance may authorize the withdrawal from the General
11Fund of an amount not to exceed the amount of the unsold bonds
12that have been authorized by the State School Building Finance
13Committee to be sold for the purpose of carrying out this chapter.
14Any amounts withdrawn shall be deposited in the 2014 State
15School Facilities Fund consistent with this chapter. Any money
16made available under this section shall be returned to the General
17Fund, plus an amount equal to the interest that the money would
18have earned in the Pooled Money Investment Account, from
19proceeds received from the sale of bonds for the purpose of
20carrying out this chapter.

21

101129.  

All money deposited in the 2014 State School Facilities
22Fund that is derived from premium and accrued interest on bonds
23sold shall be reserved in the fund, and shall be available for transfer
24to the General Fund as a credit to expenditures for bond interest.

25

101130.  

The bonds may be refunded in accordance with Article
266 (commencing with Section 16780) of Chapter 4 of Part 3 of
27Division 4 of Title 2 of the Government Code, which is a part of
28the State General Obligation Bond Law. Approval by the voters
29of the state for the issuance of the bonds described in this chapter
30includes the approval of the issuance of any bonds issued to refund
31any bonds originally issued under this chapter or any previously
32issued refunding bonds.

33

101131.  

The Legislature hereby finds and declares that,
34inasmuch as the proceeds from the sale of bonds authorized by
35this chapter are not “proceeds of taxes” as that term is used in
36Article XIII B of the California Constitution, the disbursement of
37these proceeds is not subject to the limitations imposed by that
38article.

 

P23   1Chapter  3. California Community College Facilities
2

 

3Article 1.  General
4

 

5

101132.  

(a) The 2014 California Community College Capital
6Outlay Bond Fund is hereby established in the State Treasury for
7deposit of funds from the proceeds of bonds issued and sold for
8the purposes of this chapter.

9(b) The Higher Education Facilities Finance Committee
10established pursuant to Section 67353 is hereby authorized to create
11a debt or debts, liability or liabilities, of the State of California
12pursuant to this chapter for the purpose of providing funds to aid
13the California Community Colleges.

14 

15Article 2.  California Community College Program Provisions
16

 

17

101133.  

(a) From the proceeds of bonds issued and sold
18pursuant to Article 3 (commencing with Section 101134), the sum
19ofbegin delete ____ dollars ($____)end deletebegin insert two hundred million dollars
20($200,000,000)end insert
shall be deposited in the 2014 California
21Community College Capital Outlay Bond Fund for the purposes
22of this article. When appropriated, these funds shall be available
23for expenditure for the purposes of this article.

24(b) The purposes of this article include assisting in meeting the
25capital outlay financing needs of the California Community
26 Colleges.

27(c) Proceeds from the sale of bonds issued and sold for the
28purposes of this article may be used to fund construction on
29existing campuses, including the construction of buildings and the
30acquisition of related fixtures, construction of facilities that may
31be used by more than one segment of public higher education
32 (intersegmental), the renovation and reconstruction of facilities,
33site acquisition, the equipping of new, renovated, or reconstructed
34facilities, which equipment shall have an average useful life of 10
35years; and to provide funds for the payment of preconstruction
36costs, including, but not limited to, preliminary plans and working
37drawings for facilities of the California Community Colleges.

 

P24   1Article 3.  California Community College Fiscal Provisions
2

 

3

101134.  

(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 ofbegin delete ____ dollars ($____),end deletebegin insert two
6hundred million dollars ($200,000,000),end insert
not including the amount
7of any refunding bonds issued in accordance with Section 101139,
8or so much thereof as is necessary, may be issued and sold to
9provide a fund to be used for carrying out the purposes expressed
10in this chapter and to reimburse the General Obligation Bond
11Expense Revolving Fund pursuant to Section 16724.5 of the
12Government Code. The bonds, when sold, shall be and constitute
13a valid and binding obligation of the State of California, and the
14full faith and credit of the State of California is hereby pledged
15for the punctual payment of the principal of, and interest on, the
16bonds as the principal and interest become due and payable.

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.

28

101134.5.  

(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.

P25   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.

6

101135.  

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
18 any one time.

19

101135.5.  

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.

26

101136.  

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.

35

101136.5.  

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
P26   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.

8

101137.  

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.

22

101137.5.  

(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
P27   1to significantly reduce, in the judgment of the particular college,
2seismic hazards in buildings identified as high priority by the
3college.

4

101138.  

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.

9

101139.  

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.

17

101139.5.  

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 

24Chapter  4. University Facilities
25

25 

26Article 1.  General
27

 

28

101140.  

(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.

 

P28   1Article 2.  Program Provisions Applicable to the University of
2California and the Hastings College of the Law
3

 

4

101141.  

(a) From the proceeds of bonds issued and sold
5pursuant to Article 4 (commencing with Section 101150), the sum
6of begin delete____ dollars ($____) end deletebegin inserttwo hundred million dollars
7($200,000,000) end insert
shall be deposited in the 2014 University Capital
8Outlay Bond Fund for the purposes of this article. When
9appropriated, these funds shall be available for expenditure for the
10purposes of this article.

11(b) The purposes of this article include assisting in meeting the
12capital outlay financing needs of the University of California and
13the Hastings College of the Law.

14(c) Proceeds from the sale of bonds issued and sold for the
15purposes of this article may be used to fund construction on
16existing campuses, including the construction of buildings and the
17acquisition of related fixtures, construction of facilities that may
18be used by more than one segment of public higher education
19(intersegmental), the renovation and reconstruction of facilities,
20site acquisition, the equipping of new, renovated, or reconstructed
21facilities, which equipment shall have an average useful life of 10
22years; and to provide funds for the payment of preconstruction
23costs, including, but not limited to, preliminary plans and working
24drawings for facilities of the University of California and the
25Hastings College of the Law.

26 

27Article 3.  Program Provisions Applicable to the California State
28University
29

 

30

101142.  

(a) From the proceeds of bonds issued and sold
31pursuant to Article 4 (commencing with Section 101150), the sum
32ofbegin delete ____ dollars ($____)end deletebegin insert two hundred million dollars
33($200,000,000)end insert
shall be deposited in the 2014 University Capital
34Outlay Bond Fund for the purposes of this article. When
35appropriated, these funds shall be available for expenditure for the
36purposes of this article.

37(b) The purposes of this article include assisting in meeting the
38capital outlay financing needs of the California State University.

39(c) Proceeds from the sale of bonds issued and sold for the
40purposes of this article may be used to fund construction on
P29   1existing campuses, including the construction of buildings and the
2acquisition of related fixtures, construction of facilities that may
3be used by more than one segment of public higher education
4(intersegmental), the renovation and reconstruction of facilities,
5site acquisition, the equipping of new, renovated, or reconstructed
6facilities, which equipment shall have an average useful life of 10
7years; and to provide funds for the payment of preconstruction
8costs, including, but not limited to, preliminary plans and working
9drawings for facilities of the California State University.

10 

11Article 4.  University Fiscal Provisions
12

 

13

101150.  

(a) Of the total amount of bonds authorized to be
14issued and sold pursuant to Chapter 1 (commencing with Section
15101100), bonds in the amount ofbegin delete ____ dollars ($_____),end deletebegin insert four
16hundred million dollars ($400,000,000),end insert
not including the amount
17of any refunding bonds issued in accordance with Section 101159,
18or so much thereof as is necessary, may be issued and sold to
19provide a fund to be used for carrying out the purposes expressed
20in this chapter and to reimburse the General Obligation Bond
21Expense Revolving Fund pursuant to Section 16724.5 of the
22Government Code. The bonds, when sold, shall be and constitute
23a valid and binding obligation of the State of California, and the
24full faith and credit of the State of California is hereby pledged
25for the punctual payment of the principal of, and interest on, the
26bonds as the principal and interest become due and payable.

27(b) It is the intent of the Legislature that the University of
28California and the California State University annually consider,
29as part of their annual capital outlay planning process, the inclusion
30of facilities that may be used by more than one segment of public
31higher education (intersegmental), and, that on or before May 15
32of each year, those entities report their findings to the budget
33committees of each house of the Legislature.

34(c) Pursuant to this section, the Treasurer shall sell the bonds
35authorized by the Higher Education Facilities Finance Committee
36established pursuant to Section 67353 at any different times
37necessary to service expenditures required by the apportionments.

38

101151.  

(a) The bonds authorized by this chapter shall be
39prepared, executed, issued, sold, paid, and redeemed as provided
40in the State General Obligation Bond Law (Chapter 4 (commencing
P30   1with Section 16720) of Part 3 of Division 4 of Title 2 of the
2Government Code), and all of the provisions of that law, except
3Section 16727 of the Government Code to the extent that it
4conflicts with this part, apply to the bonds and to this chapter and
5are hereby incorporated into this chapter as though set forth in full
6within this chapter.

7(b) For the purposes of the State General Obligation Bond Law,
8each state agency administering an appropriation of the 2014
9University Capital Outlay Bond Fund is designated as the “board”
10for projects funded pursuant to this chapter.

11(c) The proceeds of the bonds issued and sold pursuant to this
12chapter shall be available for the purpose of funding aid to the
13University of California, the Hastings College of the Law, and the
14California State University, for the construction on existing or new
15campuses, and their respective off-campus centers and joint use
16and intersegmental facilities, as set forth in this chapter.

17

101152.  

The Higher Education Facilities Finance Committee
18established pursuant to Section 67353 shall authorize the issuance
19of bonds under this chapter only to the extent necessary to fund
20the apportionments for the purposes described in this chapter that
21are expressly authorized by the Legislature in the annual Budget
22Act. Pursuant to that legislative direction, the committee shall
23determine whether or not it is necessary or desirable to issue bonds
24authorized pursuant to this chapter in order to carry out the
25purposes described in this chapter and, if so, the amount of bonds
26to be issued and sold. Successive issues of bonds may be authorized
27and sold to carry out those actions progressively, and it is not
28necessary that all of the bonds authorized to be issued be sold at
29 any one time.

30

101153.  

There shall be collected each year and in the same
31manner and at the same time as other state revenue is collected,
32in addition to the ordinary revenues of the state, a sum in an amount
33required to pay the principal of, and interest on, the bonds each
34year. It is the duty of all officers charged by law with any duty in
35regard to the collection of the revenue to do and perform each and
36every act which is necessary to collect that additional sum.

37

101154.  

Notwithstanding Section 13340 of the Government
38Code, there is hereby appropriated from the General Fund in the
39State Treasury, for the purposes of this chapter, an amount that
40will equal the total of the following:

P31   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.

6

101155.  

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.

19

101156.  

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
31 and to obtain any other advantage under federal law on behalf of
32the funds of this state.

33

101157.  

(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
P32   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.

15

101158.  

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.

20

101159.  

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.

28

101160.  

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.

34

begin deleteSEC. 11.end delete
35begin insertSEC. 17.end insert  

The Secretary of State shall submit Sectionbegin delete 10end deletebegin insert 16end insert of
36this act to the voters at the November 4, 2014, statewide general
37election.

38begin insert

begin insertSEC. 18.end insert  

end insert

begin insert(a)end insertbegin insertend insertbegin insertThe Secretary of State shall include in the ballot
39pamphlet for the November 4, 2014, statewide general election,
40mailed pursuant to Section 9094 of the Elections Code, the
P33   1information specified in Section 9084 of the Elections Code
2regarding the measure described in Section 16 of this act. If that
3inclusion is not possible, the Secretary of State shall publish a
4supplemental pamphlet regarding this act, to be mailed with the
5ballot pamphlet. If the supplemental ballot pamphlet cannot be
6mailed with the ballot pamphlet, the supplemental ballot pamphlet
7shall be mailed separately. end insert

begin insert

8(b) Notwithstanding Section 9054 of the Elections Code or any
9other law, the translations of the ballot title and the condensed
10statement of the ballot title required pursuant to Section 9054 may
11be made available for public examination at a later date than the
12start of the public examination period for the ballot pamphlet,
13provided that the translations of the ballot title and the condensed
14statement of the ballot title must remain available for public
15examination for eight days.

end insert
begin insert

16(c) Notwithstanding Section 13282 of the Elections Code or any
17other law, the public shall be permitted to examine the condensed
18statement of the ballot title for not more than eight days. Any voter
19may seek a writ of mandate for the purpose of requiring the
20condensed statement of the ballot title, or portion thereof, to be
21amended or deleted only within that eight-day period.

end insert
22begin insert

begin insertSEC. 19.end insert  

end insert

begin insertNotwithstanding Section 13115 of the Elections Code,
23Section 16 of this act, placed on the ballot by the Legislature for
24the November 4, 2014, statewide general election after the 131-day
25deadline set forth in Section 9040 of the Elections Code, shall be
26placed on the ballot following all other ballot measures.end insert

27

begin deleteSEC. 12.end delete
28begin insertSEC. 20.end insert  

The provisions of this act are severable. If any
29provision of this act or its application is held invalid, that invalidity
30shall not affect other provisions or applications that can be given
31effect without the invalid provision or application.

32

begin deleteSEC. 13.end delete
33begin insertSEC. 21.end insert  

Sections 1 tobegin delete 10,end deletebegin insert 16,end insert inclusive, of this act shall become
34operative only if the voters approve the Kindergarten-University
35Public Education Facilities Bond Act of 2014, as set forth in
36Section 10 of this act.

37

begin deleteSEC. 14.end delete
38begin insertSEC. 22.end insert  

This act is an urgency statute necessary for the
39immediate preservation of the public peace, health, or safety within
P34   1the meaning of Article IV of the Constitution and shall go into
2immediate effect. The facts constituting the necessity are:

3In order to ensure, at the earliest possible time, that the electorate
4is provided with the opportunity to vote on the financing of
5necessary educational facilities at the November 4, 2014, statewide
6general election, including related statutory changes, it is necessary
7that this act take effect immediately.



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