BILL ANALYSIS Ó SB 869 Page 1 ( Without Reference to File ) SENATE THIRD READING SB 869 (Budget and Fiscal Review Committee) As Amended June 12, 2014 2/3 vote. Urgency SENATE VOTE :Vote not relevant SUMMARY : Provides for statutory changes necessary to enact school facilities-related provisions of the Budget Act of 2014. Specifically, this bill : 1)Prohibits the State Allocation Board from approving funding for two specialized facility programs, the high performance incentive grant and the career technical education programs, beginning January 1, 2015. After this date, any remaining bond authority from these two programs would be redirected and divided evenly between the new construction and modernization facility programs. Any funds that revert to these two targeted programs after this date also would be transferred and divided evenly between the two programs. 2)Requires the Office of Public School Construction to report to the State Allocation Board and Legislature, by March 1, 2015, on efforts to streamline and speed up the award of seismic mitigation funds. 3)Declares that it is consistent with, and furthers the purposes of, provisions of the bond act related to elementary and secondary school facilities. 4)Declares that it is to take effect immediately as an urgency statute. COMMENTS : The Kindergarten-University Public Education Bond Act of 2006 authorized the issuance and sale of general obligation bonds for construction and modernization of elementary and secondary school facilities. The bond provided $1.9 billion for new construction and $3.3 billion for modernization of school facilities. Additionally, the bond provided $100 million for incentive grants to promote high performance projects and $500 million for facilities for career technical education programs. There is currently no remaining bond authority in the new SB 869 Page 2 construction and modernization programs. Analysis Prepared by : Katie Hardeman / BUDGET / (916) 319-2099 FN: 0003966