BILL NUMBER: SB 1455 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 26, 2014
INTRODUCED BY Senator DeSaulnier
FEBRUARY 21, 2014
An act to add Chapter 12.5 (commencing with Section 20020) to Part
11 of Division 1 of Title 1 of the Education Code, relating to
financing a public library construction and renovation program by
providing the funds necessary therefor through an election for the
issuance and sale of bonds of the State of California, and by
providing for the handling and disposition of those funds.
LEGISLATIVE COUNSEL'S DIGEST
SB 1455, as amended, DeSaulnier. California Reading and Literacy
Improvement and Public Library Construction and Renovation Bond Act
of 2014.
Existing law establishes the California Library Construction and
Renovation Bond Act of 1988 and the California Reading and Literacy
Improvement and Public Library Construction and Renovation Bond Act
of 2000. Existing law authorizes the issuance of bonds, pursuant to
the State General Obligation Bond Law, in the amount of $72,405,000
in the 1988 bond act and in the amount of $350,000,000 in the 2000
bond act, for the purpose of financing library construction and
renovation.
This bill would enact the California Reading and Literacy
Improvement and Public Library Construction and Renovation Bond Act
of 2014, for submission to the voters at the 2014 statewide general
election. The bill, if approved by the voters, would authorize the
issuance, pursuant to the State General Obligation Bond Law, of an
unspecified amount of bonds for the purpose of financing library
construction and renovation pursuant to a program administered by the
State Librarian.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 12.5 (commencing with Section 20020) is added
to Part 11 of Division 1 of Title 1 of the Education Code, to read:
CHAPTER 12.5. CALIFORNIA READING AND LITERACY IMPROVEMENT AND
PUBLIC LIBRARY CONSTRUCTION AND RENOVATION BOND ACT OF 2014
Article 1. General Provisions
20020. This chapter shall be known, and may be cited, as the
California Reading and Literacy Improvement and Public Library
Construction and Renovation Bond Act of 2014.
20021. The Legislature finds and declares all of the following:
(a) Reading and literacy skills are fundamental to success in our
economy and our society.
(b) Public libraries are a vital part of the educational system.
They provide resources and services for all residents of California,
including preschoolers, out-of-school adults, senior citizens,
at-risk youth, and those attending schools at all levels.
(c) In many cases, libraries serve as a community's only public
point of access to resources for learning and by extension,
self-sufficiency.
(d) The construction and renovation of public library facilities
is necessary to expand access to reading and literacy programs in the
state public education system and to expand access to public library
services for all residents of California.
(e) The need for library facilities continues to grow. A
recent 2007 needs assessment compiled by the
California State Library found that there is a need for
over ____ dollars ($____) eight billion
dollars ($8,000,000,000) in public library funding.
(f) In March 2000, California voters approved a bond measure of
three hundred fifty million dollars ($350,000,000) for library
construction and renovation.
(g) Due to the overwhelming response by applicants, the California
Public Library Construction and Renovation Board was forced to deny
approximately 75 percent of all applications due to lack of
additional bond funding.
20022. As used in this chapter, the following terms have the
following meanings:
(a) "Board" means the California Public Library Construction and
Renovation Board of 2014 established pursuant to Section 20023.
(b) "Committee" means the California Library Construction and
Renovation Finance Committee established pursuant to Section 19972
and continued in existence pursuant to Section 20039
20038 for purposes of this chapter.
(c) "Fund" means the California Public Library Construction and
Renovation Fund of 2014 established pursuant to Section 20024.
20023. (a) The California Public Library Construction and
Renovation Board of 2014 is hereby established.
(b) The board is comprised of the State Librarian, the Treasurer,
the Director of Finance, an Assembly Member appointed by the Speaker
of the Assembly, a Senator appointed by the Senate Committee on
Rules, and two members appointed by the Governor.
(c) Legislative members of the board shall meet with, and
participate in, the work of the board to the extent that their
participation is not incompatible with their duties as Members of the
Legislature. For the purpose of this chapter, Members of the
Legislature who are members of the board constitute a joint
legislative committee on the subject matter of this chapter.
Article 2. Program Provisions
20024. The proceeds of bonds issued and sold pursuant to this
chapter shall be deposited in the California Public Library
Construction and Renovation Fund of 2014, which is hereby
established.
20025. All moneys deposited in the fund, except as provided in
Section 20049, 20048, are continuously
appropriated to the State Librarian, notwithstanding Section 13340 of
the Government Code, and are available for grants to any city,
county, city and county, or library district that is authorized at
the time of the project application to own and maintain a public
library facility for the purposes set forth in Section 20026.
20026. The grant funds authorized pursuant to Section 20025 and
the matching funds provided pursuant to Section 20032
20031 shall be used by the recipient for any of
the following purposes:
(a) Acquisition or construction of new facilities or additions to
existing public library facilities.
(b) Acquisition of land necessary for purposes of subdivision (a).
(c) Remodeling or rehabilitation of existing public library
facilities or of other facilities for the purpose of their conversion
to public library facilities. All remodeling and rehabilitation
projects funded with grants authorized pursuant to this chapter shall
include necessary upgrading of electrical and telecommunications
systems to accommodate Internet and similar computer technology.
(d) Procurement or installation, or both, of furnishings and
equipment required to make a facility fully operable if the
procurement or installation is part of a construction or remodeling
project funded pursuant to this chapter.
(e) Payment of fees charged by architects, engineers, and other
professionals, whose services are required to plan or execute a
project authorized pursuant to this chapter.
(f) Service charges if the services in question are required by
the applicant jurisdiction to be provided by a public works or
similar department, or by other departments providing professional
services if the costs are billed directly to the project pursuant to
this chapter.
20027. Grant funds authorized pursuant to Section 20025, or
matching funds provided pursuant to Section 20032,
20031, shall not be used by a recipient for any of the
following purposes:
(a) Books and other library materials.
(b) Administrative costs of the project, including, but not
limited to, the costs of any of the following:
(1) Preparation of the grant application.
(2) Procurement of matching funds.
(3) Conduct of an election for obtaining voter approval of the
project.
(c) Except as set forth in this chapter, including, but not
limited to, Section 20047, 20046,
interest or other carrying charges for financing the project,
including, but not limited to, costs of loans or lease-purchase
agreements in excess of the direct costs of any of the authorized
purposes specified in Section 20026.
(d) Ongoing operating expenses for the facility, its personnel,
supplies , or any other library operations.
20028. All construction contracts for projects funded in part
through grants awarded pursuant to this chapter shall be awarded
through competitive bidding pursuant to Part 3 (commencing with
Section 20100) of Division 2 of the Public Contract Code.
20029. This chapter shall be administered by the State Librarian.
The board shall adopt rules, regulations, and policies for
implementation of this chapter.
20030. A city, county, city and county, or library district may
apply to the State Librarian for a grant pursuant to this chapter as
follows:
(a) Each application shall be for a project for a purpose
authorized by Section 20026.
(b) An application shall not be submitted for a project for which
construction bids already have been advertised.
(c) The applicant shall request not less than five hundred
thousand dollars ($500,000) per project.
20031. In making the awards, the board shall consider
applications for construction or rehabilitation of public library
facilities submitted pursuant to Section 20030 and the funding shall
be allocated in the following manner:
(a) First priority shall be given to applications designated
"Outstanding" and deemed eligible by the State Librarian, that were
submitted but not funded in the third application cycle of the
California Reading and Literacy Improvement and Public Library
Construction and Renovation Bond Act of 2000. The total grant amount
awarded by the board for these eligible applications shall not exceed
one hundred fifty million dollars ($150,000,000).
(b) Until regulations are adopted pursuant to Section 20029,
regulations adopted pursuant to the California Reading and Literacy
Improvement and Public Library Construction and Renovation Bond Act
of 2000 (Chapter 12 (commencing with Section 19985)) govern the
administration of this chapter, except that a maximum of thirty
million dollars ($30,000,000) instead of twenty million dollars
($20,000,000) may be granted through allocations from the fund for
the applications from the third cycle of the California Reading and
Literacy Improvement and Public Library Construction and Renovation
Bond Act of 2000.
(c) First priority applicants, as described in subdivision (a),
shall be allowed the opportunity to adjust their original application
for cost inflators since the application initially was filed with
the State Librarian, but adjustments shall not affect a change in the
scope, scale, or quality of the project, nor shall the application
exceed the thirty million dollar ($30,000,000) allocation cap
established in Section 20032 for the fund.
(d) Funds not awarded for the third application cycle pursuant to
the California Reading and Literacy Improvement and Public Library
Construction and Renovation Bond Act of 2000 shall be awarded on a
competitive basis pursuant to this chapter.
(e) Except as set forth in paragraph (2), an amount of at least 5
percent of the total bond amount shall be made available for
joint-use projects that meet all of the following requirements:
(1) The joint-use project is with one or more public educational
institutions. For the purpose of this section, "public educational
institution" means any of the following:
(A) A school district maintaining any combination of educational
settings from kindergarten to grade 12, inclusive.
(B) A county office of education.
(C) A community college district.
(D) A campus of the California State University.
(E) A campus of the University of California.
(2) The public educational institution or institutions
participating as a joint-use partner or partners provide at least 50
percent of the 35 percent local matching funds required pursuant to
subdivision (a) of Section 20032.
(3) Consideration may be given to a proposed joint-use project to
be located in a low-income area.
(4) Consideration may be given to a proposed joint-use project to
be located in an area where public schools have low scores on the
Academic Performance Index.
(f) If, by June ____, 2016, the total dollar amount of all
approved applications for joint-use projects pursuant to this section
exceeds the total dollar amount made available for joint-use
projects pursuant to subdivision (e), joint-use projects also may be
funded from other funds available to the board pursuant to this
chapter.
(g) If, by June ____, 2016, the total dollar amount of all
approved applications for joint-use projects pursuant to this section
is less than the total dollar amount made available for joint-use
projects pursuant to subdivision (e), any remaining funds under
subdivision (e) shall be made available for any other grants under
this chapter awarded on a competitive basis in the same manner as set
forth in subdivision (e).
20032. 20031. (a) Each grant
recipient shall provide matching funds from any available source in
an amount equal to 35 percent of the costs of the project. The
remaining 65 percent of the costs of the project, up to a maximum of
thirty million dollars ($30,000,000) per project, shall be provided
through allocations from the fund.
(b) Qualifying matching funds shall be cash expenditures in the
categories specified in Section 20026 that are made not earlier than
five years before the submission of the application to the State
Librarian. Except as otherwise provided in subdivision (c), in-kind
expenditures do not qualify as matching funds.
(c) Land donated or otherwise acquired for use as a site for the
facility, including, but not limited to, land purchased more than
five years before the submission of the application to the State
Librarian, may count towards the required 35 percent local fund
contribution at its appraised value as of the date of the
application. This subdivision does not apply to land acquired with
funds authorized pursuant to Part 68 (commencing with Section
100400), Part 68.1 (commencing with Section 100600), Part 68.2
(commencing with Section 100800), or Part 69 (commencing with Section
101000), of Division 14 of Title 3.
(d) Expenditures for payment of architect fees for plans and
drawings for library renovation and new construction, including, but
not limited to, plans and drawings purchased more than five years
before the submission of the application to the State Librarian, may
count towards the required 35 percent local funds contribution.
20033. 20032. (a) The estimated
costs of a project for which an application is submitted shall be
consistent with normal public construction costs in the geographic
area of the applicant.
(b) An applicant wishing to construct a project having costs that
exceed normal public construction costs in the area may apply for a
grant in an amount not to exceed 65 percent of the normal costs up to
a maximum of thirty million dollars ($30,000,000) per project if the
applicant certifies that it is capable of financing the remainder of
the project costs from other sources.
20034. 20033. (a) After an
application is approved by the board and included in the request of
the State Librarian to the committee, the amount of the funding to be
provided to the applicant shall not be increased. Actual changes in
project costs are the responsibility of the applicant. If the amount
of funding that is provided is greater than the cost of the project,
the applicant shall return that amount of funding that exceeds the
cost of the project to the fund. If an applicant is awarded funding
by the board, but decides not to proceed with the project, the
applicant shall return all of the funding to the fund.
(b) If the State Librarian determines that a grant recipient has
not complied with the terms of its grant award or its grant award
agreement with the California State Library, the board may
withdraw a grant award and award the funds previously granted to the
recipient to other eligible applicants. The State Librarian shall
notify the affected grant recipient at least 90 days before a board
meeting where the withdrawal of a grant award will be considered.
20035. 20034. (a) In reviewing
applications, as part of establishing the priorities set
forth in Section 20031, the board shall consider all of the
following factors:
(1) The needs of urban, suburban, and rural areas.
(2) The age and condition of existing library facilities within an
area.
(3) The degree to which existing library facilities are inadequate
in meeting the needs of the residents in the library service area.
(4) The degree to which the proposed project responds to the needs
of the residents in the library service area.
(5) The degree to which the library integrates appropriate
electronic technologies into the proposed project.
(6) The financial commitment of the local agency submitting the
application to open, operate, and maintain the proposed library
project upon its completion.
(b) If, after an application has been submitted, material changes
occur that would alter the evaluation of an application, the State
Librarian may accept an additional written statement from the
applicant for consideration by the board.
(c) It is the intent of the Legislature that the State Librarian
and the board develop an application process that is sufficiently
streamlined to decrease application costs and provide incentives for
a high number of library applicants to participate.
20036. 20035. (a) A facility, or a
part of a facility, acquired, constructed, remodeled, or
rehabilitated with grants received pursuant to this chapter shall be
dedicated to public library direct service use for a period of at
least 20 years following completion of the project.
(b) The financial interest that the state may have in the land or
facility, or both, resulting from the funding of a project under this
chapter, as described in subdivision (a), may be transferred by the
State Librarian through an exchange for a replacement site and
facility acquired or constructed for the purpose of providing public
library direct service.
(c) If the facility, or a part of the facility, acquired,
constructed, remodeled, or rehabilitated with grants received
pursuant to this chapter ceases to be used for public library direct
service before the expiration of the period specified in subdivision
(a), the board shall be entitled to recover from the grant recipient,
or the successor of the recipient, an amount that bears the same
ratio to the value of the facility, or appropriate part of the value
of the facility, at the time it ceased to be used for public library
direct service, as the amount of the original grant bore to the
original cost of the facility, or to an appropriate part of the
facility. For purposes of this subdivision, the value of the
facility, or appropriate part of the facility, shall be determined by
the mutual agreement of the board and the grant recipient or
successor, or through an action brought for that purpose in the
superior court.
(d) Notwithstanding subdivision (f) of Section 16724 of the
Government Code, any money recovered pursuant to subdivision (c)
shall be deposited in the fund, and shall be available for the
purpose of awarding grants for other projects.
Article 3. Fiscal Provisions
20037. 20036. Bonds in the total
amount not to exceed ____ dollars ($____), exclusive of refunding
bonds issued in accordance with Section 20045,
20044, or so much of refunding bonds as is necessary, may
be issued and sold for deposit in the fund to be used in accordance
with, and for carrying out the purposes expressed in, this chapter,
including all acts amendatory of this chapter and supplementary to
this chapter, and to be used to reimburse the General Obligation Bond
Expense Revolving Fund pursuant to Section 16724.5 of the Government
Code. The bonds, when sold, shall be and constitute a valid and
binding obligation of the State of California, and the full faith and
credit of the State of California is hereby pledged for the punctual
payment of both principal and interest on bonds as the principal and
interest become due and payable.
20038. 20037. The bonds authorized
by this chapter shall be prepared, executed, issued, sold, paid, and
redeemed as provided in the State General Obligation Bond Law
(Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of
Title 2 of the Government Code), and all of the provisions of that
law apply to the bonds and to this chapter and are hereby
incorporated in this chapter as though set forth in full in this
chapter, except Section 16727 of the Government Code to the extent
that it may be inconsistent with this chapter.
20039. 20038. (a) For purposes of
this chapter, the California Library Construction and Renovation
Finance Committee established pursuant to Section 19972 is continued
in existence and is the "committee" as that term is used in the State
General Obligation Bond Law for purposes of this chapter.
(b) For purposes of the State General Obligation Bond Law, the
California Public Library Construction and Renovation Board of 2014
established pursuant to Section 20023 is designated the board.
20040. 20039. The committee shall
determine whether or not it is necessary or desirable to issue bonds
authorized pursuant to this chapter in order to carry out the actions
specified in this chapter, including all acts amendatory of this
chapter and supplementary to this chapter, and, if so, the amount of
bonds to be issued and sold. Successive issues of bonds may be
authorized and sold to carry out those actions progressively, and it
is not necessary that all of the bonds authorized to be issued be
sold at any one time.
20041. 20040. There shall be
collected each year and in the same manner and at the same time as
other state revenue is collected, in addition to the ordinary
revenues of the state, a sum in an amount required to pay the
principal of, and interest on, the bonds each year. It is the duty of
all officers charged by law with any duty in regard to the
collection of the revenue to do and perform each and every act that
is necessary to collect that additional sum.
20042. 20041. Notwithstanding
Section 13340 of the Government Code, there is hereby appropriated
from the General Fund in the State Treasury, for purposes of this
chapter, an amount that will equal the total of the following:
(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this chapter, as the
principal and interest become due and payable.
(b) The sum necessary to carry out Section 20043,
20042, appropriated without regard to fiscal
years.
20043. 20042. For purposes of
carrying out this chapter, the Director of Finance may authorize the
withdrawal from the General Fund of an amount or amounts not to
exceed the amount of the unsold bonds that have been authorized to be
sold for purposes of carrying out this chapter. Amounts withdrawn
shall be deposited in the fund. Money made available under this
section shall be returned to the General Fund, with interest at the
rate earned by the money in the Pooled Money Investment Account
during the time the money was withdrawn from the General Fund
pursuant to this section, from money received from the sale of bonds
for purposes of carrying out this chapter.
20044. 20043. The board may request
the Pooled Money Investment Board to make a loan from the Pooled
Money Investment Account or any other approved form of interim
financing, in accordance with Section 16312 of the Government Code,
for purposes of carrying out this chapter. The amount of the request
shall not exceed the amount of the unsold bonds that the committee,
by resolution, has authorized to be sold for purposes of carrying out
this chapter. The board shall execute any documents required by the
Pooled Money Investment Board to obtain and repay the loan. Any
amounts loaned shall be deposited in the fund to be allocated by the
board in accordance with this chapter.
20045. 20044. Bonds issued and sold
pursuant to this chapter may be refunded by the issuance of
refunding bonds in accordance with Article 6 (commencing with Section
16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the
Government Code. Approval by the electors of the state for the
issuance of bonds under this chapter shall include the approval of
the issuance of any bonds issued to refund bonds originally issued or
previously issued refunding bonds.
20046. 20045. Notwithstanding any
other provision of this chapter, or of the State General Obligation
Bond Law, if the Treasurer sells bonds pursuant to this chapter that
include a bond counsel opinion to the effect that the interest on the
bonds is excluded from gross income for federal tax purposes,
subject to designated conditions, the Treasurer may maintain separate
accounts for the investment of bond proceeds and for the investment
earnings on those proceeds. The Treasurer may use or direct the use
of those proceeds or earnings to pay a rebate, penalty, or other
payment required under federal law or take any other action with
respect to the investment and use of those bond proceeds required or
desirable under federal law to maintain the tax-exempt status of
those bonds and to obtain any other advantage under federal law on
behalf of the funds of this state.
20047. 20046. All money deposited
in the fund that is derived from premium and accrued interest on
bonds sold pursuant to this chapter shall be reserved in the fund and
shall be available for transfer to the General Fund as a credit to
expenditures for bond interest.
20048. 20047. The Legislature
hereby finds and declares that, inasmuch as the proceeds from the
sale of bonds authorized by this chapter are not "proceeds of taxes"
as that term is used in Article XIII B of the California
Constitution, the disbursement of these proceeds is not subject to
the limitations imposed by that article.
20049. 20048. Amounts deposited in
the fund pursuant to this chapter may be appropriated in the annual
Budget Act to the State Librarian for the actual amount of office,
personnel, and other customary and usual expenses incurred in the
direct administration of grant projects pursuant to this chapter,
including, but not limited to, expenses incurred by the State
Librarian in providing technical assistance to an applicant for a
grant under this chapter.
SEC. 2. (a) Section 1 of this act shall take effect upon the
adoption by the voters of the California Reading and Literacy
Improvement and Public Library Construction and Renovation Bond Act
of 2014, as set forth in Section 1 of this act.
(b) Section 1 of this act shall be submitted to the voters at the
2014 statewide general election in accordance with provisions of the
Elections Code and the Government Code governing submission of
statewide measures to voters.
SEC. 3. (a) Notwithstanding any other law, all ballots of the
election shall have printed on the ballot and in a square of the
ballot, the words: "California Reading and Literacy Improvement and
Public Library Construction and Renovation Bond Act of 2014" and in
the same square under those words, the following in 8-point type:
"This act provides for a bond issue in an amount not to exceed a
total of ____ dollars ($____) to provide funds for the construction
and renovation of public library facilities in order to expand access
to reading and literacy programs in California's public education
system and to expand access to public library services for all
residents of California." Opposite the square, there shall be left
spaces in which the voters may place a cross in the manner required
by law to indicate whether they vote for or against the act.
(b) If
the voting in the election is done by means of voting machines used
pursuant to law in the manner that carries out the intent of this
section, the use of the voting machines and the expression of the
voters' choice by means of the voting machines are in compliance with
this section.