Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 148


Introduced by Assembly Member Holden

begin insert

(Principal coauthor: Assembly Member Gray)

end insert

January 15, 2015


An actbegin insert to amend Sections 17070.15, 17070.40, 17070.75, 17072.35, 17074.25, 17074.26, 17592.70, and 101end insertbegin insert012 of, to add Sections 17071.15, 17072.40, and 17073.16 to, to add Part 70 (commencing with Section 101100) to Division 14 of Title 3 of, to add and repeal Section 17254 of, and to repeal Sections 17070.99, 17071.33, 17071.35, and 17071.40 of, the Education Code,end insert relating to schoolbegin delete facilities.end deletebegin insert facilities, and 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.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 148, as amended, Holden. School facilities:begin delete general obligation bond measure.end deletebegin insert K-end insertbegin insert14 School Investment Bond Act of 2016.end insert

begin insert

(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.

end insert
begin insert

This 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
begin insert

The 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.

end insert
begin insert

The bill would require each school district that elects to participate in a new construction or modernization program to reestablish eligibility, as specified, and to conduct an inventory of existing facilities for purposes of maintaining a statewide school facilities inventory.

end 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
begin insert

The bill would require the Office of Public School Construction to recommend regulations to the State Allocation Board to provide school districts with flexibility in designing instructional facilities.

end insert
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 purposes of developing an interagency plan to streamline the school facilities construction application, review, and audit processes in order to reduce the time and improve the efficiency of the school facilities construction process. The bill would require that this interagency plan be submitted to the Legislature on or before July 1, 2017.

end insert
begin delete

Existing

end delete

begin insert(2)end insertbegin insertend insertbegin insertExistingend insert 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 thatbegin delete (1)end deletebegin insert (A)end insertauthorizes the debt for a single object or work specified in the act,begin delete (2)end deletebegin insert (B)end insert has been passed by a 23 vote of all the members elected to each house of the Legislature,begin delete (3)end deletebegin insert (C)end insert has been submitted to the people at a statewide general or primary election, andbegin delete (4)end deletebegin insert (D)end insert has received a majority of all the votes cast for and against it at that election.

begin delete

This bill would express the intent of the Legislature to enact legislation to submit a general obligation bond measure to the voters during the 2016 calendar year to fund the modernization and construction of school facilities.

end delete
begin insert

The existing Kindergarten-University Public Education Facilities Bond Act of 2006, among other things, authorized the issuance and sale of bonds in the total amount of $10,416,000,000. The 2006 bond act specified that $1,900,000,000 of that total amount was for allocation for new construction of school facilities of applicant school districts, and the 2006 bond act also specified that up to 10.5% of that amount was available for purposes of seismic repair, reconstruction, or replacement.

end insert
begin insert

This bill would enact the K-14 School Investment Bond Act of 2016 to authorize an unspecified amount of state general obligation bonds, as scheduled, to provide aid to school districts, county superintendents of schools, county boards of education, charter schools, and the California Community Colleges to construct and modernize education facilities. The proceeds of these bonds would be deposited in the 2016 State School Facilities Fund, and the 2016 California Community College Capital Outlay Bond Fund, which the bill would establish as specified.

end insert
begin insert

The bill would amend a provision of the Kindergarten-University Public Education Facilities Bond Act of 2006 to require the unencumbered balance of the amount available for purposes of seismic repair, reconstruction, or replacement to be transferred to the 2016 State School Facilities Fund for allocation under the K-14 School Investment Bond Act of 2016, as specified.

end insert
begin insert

The proposed 2016 bond act, and the proposed amendment to the 2006 bond act, would become operative only if approved by the voters at an unspecified 2016 statewide election. The bill would provide for the submission of these provisions to the voters at that election.

end insert
begin insert

(3) This bill would specify that certain of its provisions would become operative only if the K-14 School Investment Bond Act of 2016 is approved by the voters at an unspecified 2016 statewide election.

end insert
begin insert

(4) This bill would make conforming and nonsubstantive changes in related provisions of existing law.

end insert

Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

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

P4    1begin insert

begin insertSECTION 1.end insert  

end insert
begin insert

(a) The Legislature finds and declares all of the
2following:

end insert
begin insert

3(1) The State Department of Education has estimated that 71
4percent of the classrooms in California are more than 25 years
5old, about 30 percent of the classrooms are at least 50 years old,
6and about 10 percent of the classrooms are at least 70 years old.
7About 25 percent of the classrooms are in temporary portable
8buildings.

end insert
begin insert

9(2) The State of California has failed to adequately invest in
10school facilities, resulting in an unmet, and growing, funding need
11that, as of March 2015, is at least $1.1 billion.

end insert
begin insert

12(3) In a study conducted by the University of California,
13Berkeley, in 2012, it was estimated that California schools needed
14an infusion of approximately $117 billion through 2022, with close
15to one-half of that funding needed to replace or repair existing
16buildings.

end insert
begin insert

17(4) A growing body of research on school building conditions
18and pupil outcomes finds a consistent relationship between poor
19facilities and poor performance by pupils. School facilities that
20are clean, in good repair, and designed to support high academic
21standards are more likely to support higher pupil achievement,
22regardless of pupil socioeconomic status.

end insert
begin insert

23(5) Studies show that 13,000 jobs are created for each $1 billion
24of state infrastructure investment. These investments are needed
25to improve learning conditions for our pupils and improve teaching
26conditions in our classrooms.

end insert
begin insert

27(6) Closing the disparity gap in school building quality is an
28integral part of closing the achievement gap.

end insert
begin insert

29(b) Therefore, it is the intent of the Legislature to place the K-14
30School Investment Bond Act of 2016 on the ballot. The voters’
31approval of this proposed measure would prioritize investment
32partnerships with local school districts to upgrade aging facilities
33to meet current health and safety standards, including retrofitting
34for earthquake safety and removing of lead paint, asbestos, and
35other hazardous materials, and to reduce overcrowding.

end insert
36begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 17070.15 of the end insertbegin insertEducation Codeend insertbegin insert is amended
37to read:end insert

P5    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,begin delete orend delete the 2004 State
19School Facilities Fund,begin insert the 2006 State School Facilities Fund, or
20the 2016 State School Facilities Fund,end insert
established pursuant to
21Section 17070.40.

22(h) “Good repair” has the same meaning as specified in
23subdivision (d) of Section 17002.

24(i) “Modernization” means any modificationbegin insert or replacementend insert of
25a permanent structure that is at least 25 years old,begin delete orend deletebegin insert or,end insert in the case
26of a portable classroom, that is at least 20 years old, that will
27enhance the ability of the structure to achieve educational purposes.

28(j) “Portable classroom” means a classroom building of one or
29more stories that is designed and constructed to be relocatable and
30transportable over public streets, and with respect to a single story
31portable classroom, is designed and constructed for relocation
32without the separation of the roof or floor from the building and
33when measured at the most exterior walls, has a floor area not in
34excess of 2,000 square feet.

35(k) “Property” includes all property, real, personal or mixed,
36tangible or intangible, or any interest therein necessary or desirable
37for carrying out the purposes of this chapter.

38(l) “School building capacity” means the capacity of a school
39building to house pupils.

P6    1(m) “School district” means a school district or a county office
2of education. For purposes of determining eligibility under this
3chapter, “school district” may also mean a high school attendance
4area.

5begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 17070.40 of the end insertbegin insertEducation Codeend insertbegin insert is amended
6to read:end insert

7

17070.40.  

(a) (1) A fund is hereby established in the State
8begin delete Treasuryend deletebegin insert Treasury,end insert to be known as the 1998 State School Facilities
9Fund. All money in the fund, including any money deposited in
10that fund from any source whatsoever, and notwithstanding Section
1113340 of the Government Code, is hereby continuously
12appropriated without regard to fiscal years for expenditure pursuant
13to this chapter.

14(2) The board may apportion funds to school districts for the
15purposes of this chapter from funds transferred to the 1998 State
16School Facilities Fund from any source.

17(3) The board may make apportionments in amounts not
18exceeding those funds on deposit in the 1998 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 1998 State School
23Facilities Fund, irrespective of whether there exists at the time of
24the disbursement an amount in the 1998 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(b) (1) A fund is hereby established in the Statebegin delete Treasuryend delete
29begin insert Treasury,end insert to be known as the 2002 State School Facilities Fund.
30All money in the fund, including any money deposited in that fund
31from any source whatsoever, and notwithstanding Section 13340
32of the Government Code, is hereby continuously appropriated
33without regard to fiscal years for expenditure pursuant to this
34chapter.

35(2) The board may apportion funds to school districts for the
36purposes of this chapter from funds transferred to the 2002 State
37School Facilities Fund from any source.

38(3) The board may make apportionments in amounts not
39exceeding those funds on deposit in the 2002 State School Facilities
P7    1Fund, and any amount of bonds authorized by the committee, but
2not yet sold by the Treasurer.

3(4) The board may make disbursements pursuant to any
4apportionment made from any funds in the 2002 State School
5Facilities Fund, irrespective of whether there exists at the time of
6the disbursement an amount in the 2002 State School Facilities
7Fund sufficient to permit payment in full of all apportionments
8previously made. However, no disbursement shall be made from
9any funds required by law to be transferred to the General Fund.

10(c) (1) A fund is hereby established in the Statebegin delete Treasuryend delete
11begin insert Treasury,end insert to be known as the 2004 State School Facilities Fund.
12All money in the fund, including any money deposited in that fund
13from any source whatsoever, and notwithstanding Section 13340
14of the Government Code, is hereby continuously appropriated
15without regard to fiscal years for expenditure pursuant to this
16chapter.

17(2) The board may apportion funds to school districts for the
18purposes of this chapter from funds transferred to the 2004 State
19School Facilities Fund from any source.

20(3) The board may make apportionments in amounts not
21exceeding those funds on deposit in the 2004 State School Facilities
22Fund, and any amount of bonds authorized by the committee, but
23not yet sold by the Treasurer.

24(4) The board may make disbursements pursuant to any
25apportionment made from any funds in the 2004 State School
26Facilities Fund, irrespective of whether there exists at the time of
27the disbursement an amount in the 2004 State School Facilities
28Fund sufficient to permit payment in full of all apportionments
29previously made. However, no disbursement shall be made from
30any funds required by law to be transferred to the General Fund.

31(d) (1) A fund is hereby established in the State Treasury, to
32be known as the 2006 State School Facilities Fund. All money in
33the fund, including any money deposited in that fund from any
34source whatsoever, and notwithstanding Section 13340 of the
35Government Code, is hereby continuously appropriated without
36regard to fiscal years for expenditure pursuant to this chapter.

37(2) The board may apportion funds to school districts for the
38purposes of this chapter from funds transferred to the 2006 State
39School Facilities Fund from any source.

P8    1(3) The board may make apportionments in amounts not
2exceeding those funds on deposit in the 2006 State School Facilities
3Fund, and any amount of bonds authorized by the committee, but
4not yet sold by the Treasurer.

5(4) The board may make disbursements pursuant to any
6apportionment made from any funds in the 2006 State School
7Facilities Fund, irrespective of whether there exists at the time of
8the disbursement an amount in the 2006 State School Facilities
9Fund sufficient to permit payment in full of all apportionments
10previously made. However, no disbursement shall be made from
11any funds required by law to be transferred to the General Fund.

begin insert

12(e) (1) A fund is hereby established in the State Treasury, to be
13known as the 2016 State School Facilities Fund. All money in the
14fund, including any money deposited in that fund from any source
15whatsoever, and notwithstanding Section 13340 of the Government
16Code, is hereby continuously appropriated without regard to fiscal
17years for expenditure pursuant to this chapter.

end insert
begin insert

18(2) The board may apportion funds to school districts for the
19purposes of this chapter from funds transferred to the 2016 State
20School Facilities Fund from any source.

end insert
begin insert

21(3) The board may make apportionments in amounts not
22exceeding those funds on deposit in the 2016 State School Facilities
23Fund, and any amount of bonds authorized by the committee, but
24not yet sold by the Treasurer.

end insert
begin insert

25(4) The board may make disbursements pursuant to any
26apportionment made from any funds in the 2016 State School
27Facilities Fund, irrespective of whether there exists at the time of
28the disbursement an amount in the 2016 State School Facilities
29Fund sufficient to permit payment in full of all apportionments
30previously made. However, no disbursement shall be made from
31any funds required by law to be transferred to the General Fund.

end insert
32begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 17070.75 of the end insertbegin insertEducation Codeend insertbegin insert is amended
33to read:end insert

34

17070.75.  

(a) begin deleteThe end deletebegin insertAs a condition of participation in the school
35facilities program, the end insert
board shall require the school district to
36make all necessary repairs, renewals, and replacements to ensure
37that a project is at all times maintained in good repair, working
38order, and condition. All costs incurred for this purpose shall be
39borne by the school district.

P9    1(b) In order to ensure compliance with subdivision (a) and to
2encourage school districts to maintain all buildings under their
3control, the board shall require an applicant school district to do
4all of the following prior to the approval of a project:

5(1) Establish a restricted account within the general fund of the
6school district for the exclusive purpose of providing moneys for
7ongoing and major maintenance of school buildings, according
8the highest priority to funding for the purposes set forth in
9subdivision (a).

10(2) (A) Agree to deposit into the account established pursuant
11to paragraph (1), in each fiscal year for 20 years after receipt of
12funds under this chapter, a minimum amount equal to or greater
13thanbegin delete 3end deletebegin insert 2end insert percent of the total general fund expenditures of the
14applicant school district, including other financing uses, for that
15fiscal year.begin delete Annual deposits to the account established pursuant to
16paragraph (1) in excess of 2end delete
begin delete end deletebegin delete12end deletebegin delete end deletebegin delete percent of the school district
17general fund budget may count towards the amount of funds
18required to be contributed by a school district in order to receive
19apportionments from the State School Deferred Maintenance Fund
20pursuant to Section 17584 to the extent that those funds are used
21for purposes that qualify for funding under that section.end delete

begin delete end deletebegin delete

22(B) Notwithstanding subparagraph (A), for the 2004-05 fiscal
23year only, an applicant school district shall deposit into the account
24established pursuant to paragraph (1), no less than 2 percent of the
25total general fund expenditures of the school district, including
26other financing uses, for the fiscal year. The annual deposit to the
27account in excess of 112percent of the school district general fund
28budget for the 2004-05 fiscal year may count towards the amount
29that a school district is required to contribute in order to receive
30apportionments from the State School Deferred Maintenance Fund
31pursuant to Section 17584 to the extent that those funds are used
32for purposes that qualify for funding under that section.

end delete
begin delete end deletebegin delete

33(C)

end delete

34begin insert(B)end insert A school district contribution to the account may be provided
35in lieu of meeting the ongoing maintenance requirements pursuant
36to Section 17014 to the extent the funds are used for purposes
37established in that section. A school district that serves as the
38administrative unit for a special education local plan area may
39elect to exclude from its total general fund expenditures, for
40purposes of this paragraph, the distribution of revenues that are
P10   1passed through to participating members of the special education
2local plan area.

begin delete

3(D)

end delete

4begin insert(C)end insert This paragraph applies only to the following school districts:

5(i) High school districts with an average daily attendance greater
6than 300 pupils.

7(ii) Elementary school districts with an average daily attendance
8greater than 900 pupils.

9(iii) Unified school districts with an average daily attendance
10greater than 1,200 pupils.

11(3) Certify that it has publicly approved an ongoing and major
12maintenance plan that outlines the use of the funds deposited, or
13to be deposited, pursuant to paragraph (2). The plan may provide
14that the school district need not expend all of its annual allocation
15for ongoing and major maintenance in the year in which it is
16deposited if the cost of major maintenance requires that the
17allocation be carried over into another fiscal year. However, any
18state funds carried over into a subsequent year may not be counted
19toward the annual minimum contribution by the school district.begin delete A
20plan developed in compliance with this section shall be deemed
21to meet the requirements of Section 17585.end delete

begin delete end deletebegin delete

22(c) A school district to which paragraph (2) of subdivision (b)
23does not apply shall certify to the board that it can reasonably
24maintain its facilities with a lesser level of maintenance.

end delete
begin delete end deletebegin delete

25(d)

end delete

26begin insert(c)end insert For purposes of calculating a county office of education
27requirement pursuant to this section, thebegin delete 3end deletebegin insert 2end insert percent maintenance
28requirement shall be based upon the county office of education
29general fund less any restricted accounts.

begin delete

30(e)

end delete

31begin insert(d)end insert As a condition of participation in the school facilities
32program or the receipt of funds pursuant to Section 17582, for a
33fiscal year after the 2004-05 fiscal year, a school district shall
34establish a facilities inspection system to ensure that each of its
35schools is maintained in good repair.

begin delete

36(f)

end delete

37begin insert(e)end insert For purposes of this section, “good repair” has the same
38meaning as specified in subdivision (d) of Section 17002.

39begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 17070.99 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
P11   1

17070.99.  

(a) The board shall conduct an evaluation on the
2cost of new construction and modernization of small high schools
3in conjunction with the pilot program established pursuant to
4subdivision (c) of Section 17072.10, as it read on January 1, 2005.

5(b) The State Department of Education shall conduct an
6evaluation that focuses on pupil outcomes, including, but not
7limited to, academic achievement and college attendance rates, at
8the small high schools constructed pursuant to subdivision (c) of
9Section 17072.10, as it read on January 1, 2005, and on the reasons
10school districts do not currently opt to build small high schools.

11(c) The evaluations required pursuant to subdivisions (a) and
12(b) shall be completed no later than two years after the opening of
13the last small high school constructed pursuant to subdivision (c)
14of Section 17072.10, as it read on January 1, 2005.

15(d) The evaluations conducted pursuant to subdivisions (a) and
16(b) shall be used to inform the direction of future school facilities
17construction and related bond measures.

end delete
18begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 17071.15 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
19read:end insert

begin insert
20

begin insert17071.15.end insert  

Notwithstanding Section 17071.10, the board shall
21require a school district that elects to participate in the new
22construction program to conduct an inventory of existing facilities
23and submit this information to the board, as prescribed by the
24board, for purposes of maintaining a statewide school facilities
25inventory.

end insert
26begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 17071.33 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
27

17071.33.  

(a) For the purposes of determining existing school
28building capacity, the calculation shall be adjusted as required for
29first priority status pursuant to Section 17017.7 as that calculation
30would have been made under the policies of the board in effect
31immediately preceding September 1, 1998.

32(b) Notwithstanding subdivision (a), with respect to a high
33school district, the existing school building capacity shall be
34calculated without regard to multitrack year-round school
35considerations.

end delete
36begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 17071.35 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
37

17071.35.  

Notwithstanding any other provisions of law, the
38maximum school building capacity for each applicant district shall
39be increased by the number of pupils reported by the
40Superintendent of Public Instruction for that grade level pursuant
P12   1to Section 42268. This adjustment shall be calculated on the basis,
2at the district’s option, of either the district as a whole or the
3appropriate attendance area.

end delete
4begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 17071.40 of the end insertbegin insertEducation Codeend insertbegin insert is repealed.end insert

begin delete
5

17071.40.  

Each school on a year-round, multitrack calendar
6that has a density of 200 or more pupils enrolled per acre, that is
7located in a school district with 40 percent of its pupils attending
8multitrack, year-round schools shall be exempted from the increase
9in school building capacity required by Section 17071.35. Nothing
10in this section shall be construed as exempting the school from the
11requirements of Section 17071.33.

end delete
12begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 17072.35 of the end insertbegin insertEducation Codeend insertbegin insert is amended
13to read:end insert

14

17072.35.  

begin insert(a)end insertbegin insertend insertbegin insert(1)end insertbegin insertend insertA grant for new construction may be used
15for any and all costs necessary to adequately house new pupils in
16any approved project, and those costs may only include the cost
17of design, engineering, testing, inspection, plan checking,
18construction management, site acquisition and development,
19evaluation and response action costs relating to hazardous
20substances at a new or existing schoolsite, demolition, construction,
21acquisition and installation of portable classrooms, landscaping,
22necessary utility costs, utility connections and other fees, equipment
23including telecommunication equipment to increase school security,
24furnishings, and the upgrading of electrical systems or the wiring
25or cabling of classrooms in order to accommodate educational
26technology. A grant for new construction may also be used to
27acquire an existing government or privately owned building, or a
28privately financed school building, and for the necessary costs of
29converting the government or privately owned building for public
30school use.begin delete Aend delete

31begin insert(2)end insertbegin insertend insertbegin insertAend insert grant for new construction may also be used forbegin delete the costsend delete
32begin insert either or both of the following purposes:end insert

33begin insert(A)end insertbegin insertend insertbegin insertThe costend insert of designs and materials that promote the efficient
34use of energy and water, the maximum use of natural lighting and
35indoor air quality, the use of recycled materials and materials that
36emit a minimum of toxic substances, the use of acoustics conducive
37to teaching and learning, and other characteristics ofbegin delete high
38performanceend delete
begin insert high-performanceend insert schools.

begin insert

39(B) Seismic mitigation purposes and related design, study, and
40testing costs.

end insert
begin insert

P13   1(b) In the development of guidelines and regulations, the board
2shall provide a school district with maximum flexibility in the
3design and new construction of school facilities.

end insert
4begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 17072.40 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
5read:end insert

begin insert
6

begin insert17072.40.end insert  

The Office of Public School Construction, in
7consultation with the State Department of Education, shall
8recommend to the board regulations that will provide school
9districts with flexibility in designing instructional facilities. These
10recommendations shall propose revisions to any regulations that
11limit the ability of school districts to use new construction grants
12to construct instructional space approved by the State Department
13of Education. The proposed revisions shall ensure that a school
14district has the ability to design a facility that provides a flexible
15learning environment, provides for the integration and use of
16technology, and serves as an instructional space and learning
17environment that supports and enhances the educational delivery
18process.

end insert
19begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 17073.16 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
20read:end insert

begin insert
21

begin insert17073.16.end insert  

The board shall require a school district that elects
22to participate in the modernization program to conduct an
23inventory of existing facilities and submit this information to the
24board, as prescribed by the board, for purposes of maintaining a
25statewide school facilities inventory.

end insert
26begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 17074.25 of the end insertbegin insertEducation Codeend insertbegin insert is amended
27to read:end insert

28

17074.25.  

(a) begin insert(1)end insertbegin insertend insertA modernization apportionment may be
29used for an improvement to extend the useful life of, or to enhance
30the physical environment of, the school. The improvement may
31only include the cost of design, engineering, testing, inspection,
32plan checking, construction management, demolition, construction,
33the replacement of portable classrooms, necessary utility costs,
34utility connection and other fees, the purchase and installation of
35air-conditioning equipment and insulation materials and related
36costs, furniture and equipment, including telecommunication
37equipment to increase school security, fire safety improvements,
38playground safety improvements, the identification, assessment,
39or abatement of hazardous asbestos, seismic safety improvements,
40and the upgrading of electrical systems or the wiring or cabling of
P14   1classrooms in order to accommodate educational technology. A
2modernization grant may not be used for costs associated with
3acquisition and development of real property or for routine
4maintenance and repair.

begin delete

5(b)

end delete

6begin insert(2)end insert A modernization apportionment may also be used forbegin delete theend delete
7begin insert either of the following:end insert

8begin insert(A)end insertbegin insertend insertbegin insertTheend insert cost of designs and materials that promote the efficient
9use of energy and water, the maximum use of natural lighting and
10indoor air quality, the use of recycled materials and materials that
11emit a minimum of toxic substances, the use of acoustics conducive
12to teaching and learning, and other characteristics of
13high-performance schools.

begin insert

14(B)  Seismic mitigation purposes and related design, study, and
15testing costs.

end insert
begin insert

16(b) In the development of guidelines and regulations, the board
17shall provide a school district with maximum flexibility in the
18design and modernization of school facilities.

end insert
begin insert

19(c) (1) A modernization apportionment may also be used to
20demolish and construct a building or buildings on an existing
21schoolsite if the total cost of providing a new school building,
22including land, on a new site would not protect the economic
23interest of the state and school district.

end insert
begin insert

24(2) A project deemed to meet the requirements of paragraph
25(1) shall be eligible for a grant equal to the grant provided under
26Section 17072.10.

end insert
begin insert

27(d) The board shall establish additional requirements it deems
28necessary to ensure that the economic interests of the state and
29the educational interests of the children of the state are protected.

end insert
30begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 17074.26 of the end insertbegin insertEducation Codeend insertbegin insert is amended
31to read:end insert

32

17074.26.  

The board shall adopt regulations to adjust the
33per-pupil amounts set forth in Sectionbegin delete 17074.14end deletebegin insert 17074.10end insert for
34modernization projects for school buildings that are 50 years old
35or older based upon the higher costs associated with modernizing
36older buildings.

37begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 17254 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
38read:end insert

begin insert
39

begin insert17254.end insert  

(a) The State Department of Education, the Division
40of the State Architect, the Office of Public School Construction,
P15   1and the Department of Toxic Substances Control shall convene
2for purposes of developing an interagency plan to streamline the
3school facility construction application, review, and audit
4processes in order to reduce the time and improve the efficiency
5of the school facilities construction process.

6(b) The interagency plan developed pursuant to subdivision (a)
7shall be submitted to the Legislature, in accordance with Section
89795 of the Government Code, on or before July 1, 2017.

9(c) It is the intent of the Legislature that operative regulatory
10language adopted by the State Allocation Board before the effective
11date of this section be reviewed and revised before July 1, 2016,
12to ensure that the School Facility Program is being implemented
13in a manner that reduces duplicative processes for the review,
14approval, and audit of school facility new construction and
15modernization projects.

16(d)  This section shall remain in effect only until July 1, 2021,
17and as of that date is repealed, unless a later enacted statute, that
18is enacted before July 1, 2021, deletes or extends that date.

end insert
19begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 17592.70 of the end insertbegin insertEducation Codeend insertbegin insert is amended
20to read:end insert

21

17592.70.  

(a) There is hereby established the School Facilities
22Needs Assessment Grant Program with the purpose to provide for
23a one-time comprehensive assessment of school begin deletefacilities end deletebegin insertfacility end insert
24needs. The grant program shall be administered by the State
25Allocation Board.

26(b) (1) The grants shall be awarded to school districts on behalf
27of schoolsites ranked in deciles 1 to 3, inclusive, on the Academic
28Performance Index (API), pursuant to Section 52056, based on
29the 2003 base API score for each school newly constructed prior
30to January 1, 2000.

31(2) For purposes of this section, schools ranked in deciles 1 to
323, inclusive, on the 2003 base API shall include any schools
33determined by the department to meet either of the following:

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

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

36(ii) Is operating inbegin insert the 2004-05end insert fiscalbegin delete yearend deletebegin insert year,end insert and was
37operating inbegin insert the 2003-04end insert fiscal yearbegin delete 2003-04end delete during the
38Standardized Testing and Reporting (STAR) Program testing
39period.

P16   1(iii) Has a valid base API score for 2002 that was ranked in
2deciles 1 to 3, inclusive, in that year.

3(B) The school has an estimated base API score for 2003 that
4would be in deciles 1 to 3, inclusive.

5(3) The department shall estimate an API score for any school
6meeting the criteria of clauses (i) and (ii) of subparagraph (A) of
7paragraph (2) and not meeting the criteria of clause (iii) of
8subparagraph (A) of paragraph (2), using available testing scores
9and any weighting or corrective factors it deems appropriate. The
10department shall provide those API scores to the Office of Public
11School Construction and post them on itsbegin insert Internetend insert Web site within
1230 days of the enactment of this section.

13(4)  For purposes of this section, schools ranked in deciles 1 to
143, inclusive, on the 2003 base API shall exclude any schools
15determined by the department to be operated by county offices of
16education pursuant to Section 56140.

17(c) The board shall allocate funds pursuant to subdivision (b)
18to school districts with jurisdiction over eligible schoolsites, based
19on ten dollars ($10) per pupil enrolled in the eligible school as of
20October 2003, with a minimum allocation of seven thousand five
21hundred dollars ($7,500) for each schoolsite.

22(d) As a condition of receiving funds pursuant to this section,
23school districts shall do all of the following:

24(1) Use the funds to develop a comprehensive needs assessment
25of all schoolsites eligible for grants pursuant to subdivision (b).
26The assessment shall contain, at a minimum, all of the following
27information for each schoolsite:

28(A) The year each building that is currently used for instructional
29purposes was constructed.

30(B) The year, if any, each building that is currently used for
31instructional purposes was last modernized.

32(C) The pupil capacity of the school.

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

34(E) The density of the school campus measured in pupils per
35acre.

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

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

38(H) Whether the school is operating on a multitrack, year-round
39calendar, and, if so, what type.

P17   1(I) Whether the school has a cafeteria, or an auditorium or other
2space used for pupil eating and not for class instruction.

3(J) The useful life remaining of all major building systems for
4each structure housing instructional space, including, but not
5limited to, sewer, water, gas, electrical, roofing, and fire and life
6safety protection.

7(K) The estimated costs for five years necessary to maintain
8functionality of each instructional space to maintain health, safety,
9andbegin insert aend insert suitable learning environment, as applicable, including
10classroom, counseling areas, administrative space, libraries,
11gymnasiums, multipurpose and dining space, and the accessibility
12to those spaces.

13(L) A list of necessary repairs.

14(2) Use the data currently filed with the state as part of the
15process of applying for and obtaining modernization or construction
16funds for school facilities, or information that is available in the
17California Basic Education Data System for the element required
18in subparagraphs (D), (E), (F), and (G) of paragraph (1).

19(3) Use the assessment as the baseline for the facilities inspection
20system required pursuant to subdivisionbegin delete (e)end deletebegin insert (d)end insert of Section
2117070.75.

22(4) Provide the results of the assessment to the Office of Public
23School Construction, including a report on the expenditures made
24in performing the assessment. It is the intent of the Legislature
25that the assessments be completed as soon as possible, but not later
26than January 1, 2006.

27(5) If a school district does not need the full amount of the
28allocation it receives pursuant to this section, the school district
29shall expend the remaining funds for making facilities repairs
30identified in its needs assessment. The school district shall report
31to the Office of Public School Construction on the repairs
32completed pursuant to this paragraph and the cost of the repairs.

33(6) Submit to the Office of Public School Construction an
34interim report regarding the progress made by the school district
35in completing the assessments of all eligible schools.

36begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 101012 of the end insertbegin insertEducation Codeend insertbegin insert is amended
37to read:end insert

38

101012.  

(a) The proceeds from the sale of bonds, issued and
39sold for the purposes of this chapter, shall be allocated in
40accordance with the following schedule:

P18   1(1) The amount of one billion nine hundred million dollars
2($1,900,000,000) for new construction of school facilities of
3applicant school districts under Chapter 12.5 (commencing with
4Section 17070.10) of Partbegin delete 10.end deletebegin insert 10 of Division 1 of Title 1.end insert Of the
5amount allocated under this paragraph, up to 10.5 percent shall be
6available for purposes of seismic repair, reconstruction, or
7replacement, pursuant to Section 17075.10.begin insert The unencumbered
8balance of the amount available for purposes of seismic repair,
9reconstruction, or replacement under this paragraph shall be
10transferred to the 2016 State School Facilities Fund for allocation
11pursuant to Part 70 (commencing with Section 101100) on the
12date that Part 70 (commencing with Section 101100) becomes
13operative.end insert

14(2) The amount of five hundred million dollars ($500,000,000)
15shall be available for providing school facilities to charter schools
16pursuant to Article 12 (commencing with Section 17078.52) of
17Chapter 12.5 of Partbegin delete 10.end deletebegin insert 10 of Division 1 of Title 1.end insert

18(3) The amount of three billion three hundred million dollars
19 ($3,300,000,000) for the modernization of school facilities pursuant
20to Chapter 12.5 (commencing with Section 17070.10) of Partbegin delete 10.end delete
21begin insert 10 of Division 1 of Title 1.end insert

22(4) (A)  The amount of five hundred million dollars
23($500,000,000) for the purposes set forth in Article 13
24(commencing with Section 17078.70) of Chapter 12.5 of Partbegin delete 10,end delete
25begin insert 10 of Division 1 of Title 1,end insert relating to facilities for career technical
26education programs.

27(B) Of the amount not yet approved for allocation by the State
28Allocation Board pursuant to this paragraph by January 1, 2015,
2950 percent shall be available for the purpose of paragraph (1), and
3050 percent shall be available for purposes of paragraph (3). If an
31apportionment or State Allocation Board approval pursuant to this
32paragraph is rescinded after January 1, 2015, the rescinded amount
33shall be available for the purposes of paragraphs (1) and (3). The
34State Allocation Board shall determine the percentage of the
35rescinded amount to be used for purposes of paragraph (1) and the
36percentage of the rescinded amount to be used for purposes of
37paragraph (3).

38(5) Of the amounts allocated under paragraphs (1) and (3), up
39to two hundred million dollars ($200,000,000) for the purposes
40set forth in Chapter 894 of the Statutes of 2004, relating to
P19   1incentives for the creation of smaller learning communities and
2small high schools.

3(6) The amount of twenty-nine million dollars ($29,000,000)
4for the purposes set forth in Article 10.6 (commencing with Section
517077.40) of Chapter 12.5 of Part 10 of Division 1 of Title 1,
6relating to joint use projects.

7(7) The amount of one billion dollars ($1,000,000,000) shall be
8available for providing new construction funding to severely
9overcrowded schoolsites pursuant to Article 14 (commencing with
10Section 17079) of Chapter 12.5 of Part 10 of Division 1 of Title
111.

12(8) (A)  The amount of one hundred million dollars
13($100,000,000) for incentive grants to promote the use of designs
14and materials in new construction and modernization projects that
15include the attributes of high-performance schools, including, but
16not limited to, the elements set forth in Section 17070.96, pursuant
17to regulations adopted by the State Allocation Board.

18(B) Of the amount not yet approved for allocation by the State
19Allocation Board pursuant to this paragraph by January 1, 2015,
2050 percent shall be available for purposes of paragraph (1), and
2150 percent shall be available for purposes of paragraph (3). If an
22apportionment or State Allocation Board approval pursuant to this
23paragraph is rescinded on or after January 1, 2015, the rescinded
24amount shall be available for purposes of paragraphs (1) and (3).
25The State Allocation Board shall determine the percentage of the
26rescinded amount to be used for purposes of paragraph (1) and the
27percentage of the rescinded amount to be used for purposes of
28paragraph (3).

29(b) School districts may use funds allocated pursuant to
30paragraph (3) of subdivision (a) only for one or more of the
31following purposes in accordance with Chapter 12.5 (commencing
32with Section 17070.10) of Part 10 of Division 1 of Title 1:

33(1) The purchase and installation of air-conditioning equipment
34and insulation materials, and related costs.

35(2) Construction projects or the purchase of furniture or
36equipment designed to increase school security or playground
37safety.

38(3) The identification, assessment, or abatement in school
39facilities of hazardous asbestos.

40(4) Project funding for high-priority roof replacement projects.

P20   1(5) Any other modernization of facilities pursuant to Chapter
212.5 (commencing with Section 17070.10) of Part 10 of Division
31 of Title 1.

4(c) Funds allocated pursuant to paragraph (1) of subdivision (a)
5may also be used to provide new construction grants for eligible
6applicant county boards of education under Chapter 12.5
7(commencing with Section 17070.10) of Part 10 of Division 1 of
8Title 1 for funding classrooms for severely handicapped pupils,
9or for funding classrooms for county community school pupils.

10(d) (1) The Legislature may amend this section to adjust the
11funding amounts specified in paragraphs (1) to (8), inclusive, of
12subdivision (a), only by either of the following methods:

13(A) By a statute, passed in each house of the Legislature by
14rollcall vote entered in the respective journals, by not less than
15two-thirds of the membership in each house concurring, if the
16statute is consistent with, and furthers the purposes of, this chapter.

17(B) By a statute that becomes effective only when approved by
18the voters.

19(2) Amendments pursuant to this subdivision may adjust the
20amounts to be expended pursuant to paragraphs (1) to (8), inclusive,
21of subdivision (a), but may not increase or decrease the total
22amount to be expended pursuant to that subdivision.

23(e) Funds available pursuant to this section may be used for
24acquisition of school facilities authorized pursuant to Section
2517280.5.

26begin insert

begin insertSEC. 18.end insert  

end insert

begin insertPart 70 (commencing with Section 101100) is added
27to Division 14 of Title 3 of the end insert
begin insertEducation Codeend insertbegin insert, to read:end insert

begin insert

28 

29PART begin insert70.end insert  K-14 SCHOOL INVESTMENT BOND ACT OF 2016

30

 

31Chapter  begin insert1.end insert General
32

 

33

begin insert101100.end insert  

This part shall be known, and may be cited, as the
34K-14 School Investment Bond Act of 2016.

35

begin insert101101.end insert  

The incorporation of, or reference to, any provision
36of California statutory law in this part includes all acts amendatory
37thereof and supplementary thereto.

38

begin insert101102.end insert  

(a) Bonds in the total amount of ____ dollars ($____),
39not including the amount of any refunding bonds issued in
40accordance with Sections 101130, 101139, and 101159, or so
P21   1much thereof as is necessary, may be issued and sold to provide
2a fund to be used for carrying out the purposes expressed in this
3part and to reimburse the General Obligation Bond Expense
4Revolving Fund pursuant to Section 16724.5 of the Government
5Code. The bonds, when sold, shall be and constitute a valid and
6binding obligation of the State of California, and the full faith and
7credit of the State of California is hereby pledged for the punctual
8payment of the principal of, and interest on, the bonds as the
9principal and interest become due and payable.

10(b) Pursuant to this section, the Treasurer shall sell the bonds
11authorized by the State School Building Finance Committee
12established by Section 15909 or the Higher Education Facilities
13Finance Committee established pursuant to Section 67353, as the
14case may be, at any different times necessary to service
15expenditures required by the apportionments.

16 

17Chapter  begin insert2.end insert Kindergarten Through Grade 12
18

 

19Article begin insert1.end insert  Kindergarten Through Grade 12 School Facilities
20Program Provisions
21

 

22

begin insert101110.end insert  

The proceeds of bonds issued and sold pursuant to
23Article 2 (commencing with Section 101120) shall be deposited in
24the 2016 State School Facilities Fund established in the State
25Treasury under subdivision (e) of Section 17070.40, and shall be
26allocated by the State Allocation Board pursuant to this chapter.

27

begin insert101111.end insert  

All moneys deposited in the 2016 State School
28Facilities Fund for the purposes of this chapter shall be available
29to provide aid to school districts, county superintendents of schools,
30and county boards of education of the state in accordance with
31the Leroy F. Greene School Facilities Act of 1998 (Chapter 12.5
32(commencing with Section 17070.10) of Part 10 of Division 1 of
33Title 1), as set forth in Section 101112, to provide funds to repay
34any money advanced or loaned to the 2016 State School Facilities
35Fund under any act of the Legislature, together with interest
36provided for in that act, and to reimburse the General Obligation
37Bond Expense Revolving Fund pursuant to Section 16724.5 of the
38Government Code.

P22   1

begin insert101112.end insert  

(a) The proceeds from the sale of bonds, issued and
2sold for the purposes of this chapter, shall be allocated in
3accordance with the following schedule:

4(1) The amount of ____ dollars ($____) for new construction
5of school facilities of applicant school districts under Chapter 12.5
6(commencing with Section 17070.10) of Part 10 of Division 1 of
7Title 1.

8(2) The amount of ____ dollars ($____) for the modernization
9of school facilities pursuant to Chapter 12.5 (commencing with
10Section 17070.10) of Part 10 of Division 1 of Title 1.

11(3) Of the amount allocated in this subdivision, up to 5 percent
12shall be available for providing facilities to charter schools
13pursuant to Article 12 (commencing with Section 17078.52) of
14Chapter 12.5 of Part 10 of Division 1 of Title 1.

15(b) School districts may use funds allocated pursuant to
16paragraph (2) of subdivision (a) only for one or more of the
17following purposes in accordance with Chapter 12.5 (commencing
18with Section 17070.10) of Part 10 of Division 1 of Title 1:

19(1) The purchase and installation of air-conditioning equipment
20and insulation materials, and related costs.

21(2) Construction projects or the purchase of furniture or
22equipment designed to increase school security or playground
23safety.

24(3) The identification, assessment, or abatement in school
25facilities of hazardous asbestos.

26(4) Project funding for high-priority roof replacement projects.

27(5) Any other modernization of facilities pursuant to Chapter
2812.5 (commencing with Section 17070.10) of Part 10 of Division
291 of Title 1.

30(c) Funds allocated pursuant to paragraph (1) of subdivision
31(a) may also be utilized to provide new construction grants for
32eligible applicant county boards of education under Chapter 12.5
33(commencing with Section 17070.10) of Part 10 of Division 1 of
34Title 1 for funding classrooms for severely handicapped pupils,
35or for funding classrooms for county community school pupils.

36

begin insert101113.end insert  

(a) The board shall assign the highest priority for
37funding under this chapter to applicant school districts whose
38projects to be funded are emergency facility needs as defined in
39subdivision (c) of Section 17592.72.

P23   1(b) The board shall assign priority for funding under this chapter
2to applicant school districts that demonstrate participation in a
3community-based effort to coordinate educational, developmental,
4family, health, and other comprehensive services by engaging in
5public and private partnerships with local public entities and other
6nonprofit or private community partners. Criteria that demonstrate
7this participation shall include all of the following:

8(1) Institutionalized structures for cross-agency collaboration,
9including, but not limited to, memoranda of understanding to
10coordinate activities and services.

11(2) Agreements for joint use and operations of school facilities
12that provide for extended hours of use for pupils, families, and the
13community, integration of libraries, early childhood education,
14child care centers, senior centers, outdoor recreation or
15environmental education, arts education, and career technical
16education and adult education offerings for pupils and community
17members.

18(3) Participation in the State Community Schools Network.

19(4) Participation in technical assistance and training, including
20professional development, for full-service community schools.

21(5) Certification that the district’s school facilities master plan
22is consistent with the regional sustainable communities strategy
23established pursuant to Section 65080 of the Government Code.

24 

25Article begin insert2.end insert  Kindergarten Through Grade 12 School Facilities
26Fiscal Provisions
27

 

28

begin insert101120.end insert  

(a) Of the total amount of bonds authorized to be
29issued and sold pursuant to Chapter 1 (commencing with Section
30101100), bonds in the amount of ____ dollars ($____), not
31including the amount of any refunding bonds issued in accordance
32with Section 101130, or so much thereof as is necessary, may be
33issued and sold to provide a fund to be used for carrying out the
34purposes expressed in this chapter and to reimburse the General
35Obligation Bond Expense Revolving Fund pursuant to Section
3616724.5 of the Government Code. The bonds, when sold, shall be
37and constitute a valid and binding obligation of the State of
38California, and the full faith and credit of the State of California
39is hereby pledged for the punctual payment of the principal of,
P24   1and interest on, the bonds as the principal and interest become
2due and payable.

3(b) Pursuant to this section, the Treasurer shall sell the bonds
4authorized by the State School Building Finance Committee
5established pursuant to Section 15909 at any different times
6necessary to service expenditures required by the apportionments.

7

begin insert101121.end insert  

The State School Building Finance Committee,
8established by Section 15909 and composed of the Governor, the
9Controller, the Treasurer, the Director of Finance, and the
10Superintendent, or their designated representatives, all of whom
11shall serve on the committee without compensation, and a majority
12of whom shall constitute a quorum, is continued in existence for
13the purpose of this chapter. The Treasurer shall serve as
14chairperson of the committee. Two Members of the Senate
15appointed by the Senate Committee on Rules, and two Members
16of the Assembly appointed by the Speaker of the Assembly, shall
17meet with and provide advice to the committee to the extent that
18the advisory participation is not incompatible with their respective
19positions as Members of the Legislature. For purposes of this
20chapter, the Members of the Legislature shall constitute an interim
21investigating committee on the subject of this chapter and, as that
22committee, shall have the powers granted to, and duties imposed
23upon, those committees by the Joint Rules of the Senate and the
24Assembly. The Director of Finance shall provide assistance to the
25committee as it may require. The Attorney General of the state is
26the legal advisor of the committee.

27

begin insert101122.end insert  

(a) The bonds authorized by this chapter shall be
28prepared, executed, issued, sold, paid, and redeemed as provided
29in the State General Obligation Bond Law (Chapter 4 (commencing
30with Section 16720) of Part 3 of Division 4 of Title 2 of the
31Government Code), and all of the provisions of that law, except
32Section 16727 of the Government Code to the extent that it conflicts
33with this part, apply to the bonds and to this chapter and are hereby
34incorporated into this chapter as though set forth in full within
35this chapter.

36(b) For purposes of the State General Obligation Bond Law,
37the State Allocation Board is designated the “board” for purposes
38of administering the 2016 State School Facilities Fund.

39

begin insert101123.end insert  

(a) Upon request of the State Allocation Board, the
40State School Building Finance Committee shall determine whether
P25   1or not it is necessary or desirable to issue bonds authorized
2pursuant to this chapter in order to fund the apportionments and,
3if so, the amount of bonds to be issued and sold. Successive issues
4of bonds may be authorized and sold to fund those apportionments
5progressively, and it is not necessary that all of the bonds
6authorized to be issued be sold at any one time.

7(b) It is the intent of the Legislature that the State School
8Building Finance Committee consider a pay-as-you-go model of
9financing that increases actual money for construction by issuing
10short-term debt with faster repayment plans to lessen the amount
11of state funds spent on interest and reduce overall state debt.

12(c) A request of the State Allocation Board pursuant to
13subdivision (a) shall be supported by a statement of the
14apportionments made and to be made for the purposes described
15in Sections 101111 and 101112.

16

begin insert101124.end insert  

There shall be collected each year and in the same
17manner and at the same time as other state revenue is collected,
18in addition to the ordinary revenues of the state, a sum in an
19amount required to pay the principal of, and interest on, the bonds
20each year. It is the duty of all officers charged by law with any
21duty in regard to the collection of the revenue to do and perform
22each and every act that is necessary to collect that additional sum.

23

begin insert101125.end insert  

Notwithstanding Section 13340 of the Government
24Code, there is hereby appropriated from the General Fund in the
25State Treasury, for the purposes of this chapter, an amount that
26will equal the total of the following:

27(a) The sum annually necessary to pay the principal of, and
28interest on, bonds issued and sold pursuant to this chapter, as the
29principal and interest become due and payable.

30(b) The sum necessary to carry out Section 101128, appropriated
31without regard to fiscal years.

32

begin insert101126.end insert  

The State Allocation Board may request the Pooled
33Money Investment Board to make a loan from the Pooled Money
34Investment Account or any other approved form of interim
35financing, in accordance with Section 16312 of the Government
36Code, for the purpose of carrying out this chapter. The amount of
37the request shall not exceed the amount of the unsold bonds that
38the committee, by resolution, has authorized to be sold for the
39purpose of carrying out this chapter. The board shall execute any
40documents required by the Pooled Money Investment Board to
P26   1obtain and repay the loan. Any amounts loaned shall be deposited
2in the fund to be allocated by the board in accordance with this
3chapter.

4

begin insert101127.end insert  

Notwithstanding any other provision of this chapter,
5or of the State General Obligation Bond Law, if the Treasurer
6sells bonds pursuant to this chapter that include a bond counsel
7opinion to the effect that the interest on the bonds is excluded from
8gross income for federal tax purposes, subject to designated
9conditions, the Treasurer may maintain separate accounts for the
10investment of bond proceeds and for the investment earnings on
11those proceeds. The Treasurer may use or direct the use of those
12proceeds or earnings to pay any rebate, penalty, or other payment
13required under federal law or take any other action with respect
14to the investment and use of those bond proceeds required or
15desirable under federal law to maintain the tax-exempt status of
16those bonds and to obtain any other advantage under federal law
17on behalf of the funds of this state.

18

begin insert101128.end insert  

For purposes of carrying out this chapter, the Director
19of Finance may authorize the withdrawal from the General Fund
20of an amount not to exceed the amount of the unsold bonds that
21have been authorized by the State School Building Finance
22Committee to be sold for the purpose of carrying out this chapter.
23Any amounts withdrawn shall be deposited in the 2016 State School
24Facilities Fund consistent with this chapter. Any money made
25available under this section shall be returned to the General Fund,
26plus an amount equal to the interest that the money would have
27earned in the Pooled Money Investment Account, from proceeds
28received from the sale of bonds for the purpose of carrying out
29this chapter.

30

begin insert101129.end insert  

All money deposited in the 2016 State School Facilities
31Fund that is derived from premium and accrued interest on bonds
32sold shall be reserved in the fund, and shall be available for
33transfer to the General Fund as a credit to expenditures for bond
34interest.

35

begin insert101130.end insert  

The bonds may be refunded in accordance with Article
366 (commencing with Section 16780) of Chapter 4 of Part 3 of
37Division 4 of Title 2 of the Government Code, which is a part of
38the State General Obligation Bond Law. Approval by the voters
39of the state for the issuance of the bonds described in this chapter
40includes the approval of the issuance of any bonds issued to refund
P27   1any bonds originally issued under this chapter or any previously
2issued refunding bonds.

3

begin insert101131.end insert  

The Legislature hereby finds and declares that,
4inasmuch as the proceeds from the sale of bonds authorized by
5this chapter are not “proceeds of taxes” as that term is used in
6Article XIII B of the California Constitution, the disbursement of
7these proceeds is not subject to the limitations imposed by that
8article.

9 

10Chapter  begin insert3.end insert California Community College Facilities
11

 

12Article begin insert1.end insert  General
13

 

14

begin insert101132.end insert  

(a) The 2016 California Community College Capital
15Outlay Bond Fund is hereby established in the State Treasury for
16deposit of funds from the proceeds of bonds issued and sold for
17the purposes of this chapter.

18(b) The Higher Education Facilities Finance Committee
19established pursuant to Section 67353 is hereby authorized to
20create a debt or debts, liability or liabilities, of the State of
21California pursuant to this chapter for the purpose of providing
22funds to aid the California Community Colleges.

23 

24Article begin insert2.end insert  California Community College Facilities Program
25Provisions
26

 

27

begin insert101133.end insert  

(a) From the proceeds of bonds issued and sold
28pursuant to Article 3 (commencing with Section 101134), the sum
29of ____ dollars ($____) shall be deposited in the 2016 California
30Community College Capital Outlay Bond Fund for the purposes
31of this article. When appropriated, these funds shall be available
32for expenditure for the purposes of this article.

33(b) The purposes of this article include assisting in meeting the
34capital outlay financing needs of the California Community
35Colleges.

36(c) Proceeds from the sale of bonds issued and sold for the
37purposes of this article may be used to fund construction on
38existing campuses, including the construction of buildings and the
39acquisition of related fixtures, construction of facilities that may
40be used by more than one segment of public higher education
P28   1(intersegmental), the renovation and reconstruction of facilities,
2site acquisition, the equipping of new, renovated, or reconstructed
3facilities, which equipment shall have an average useful life of 10
4years; and to provide funds for the payment of preconstruction
5costs, including, but not limited to, preliminary plans and working
6drawings for facilities of the California Community Colleges.

7 

8Article begin insert3.end insert  California Community College Facilities Fiscal
9Provisions
10

 

11

begin insert101134.end insert  

(a) Of the total amount of bonds authorized to be
12issued and sold pursuant to Chapter 1 (commencing with Section
13101100), bonds in the total amount of ____ dollars ($____), not
14including the amount of any refunding bonds issued in accordance
15with Section 101139, or so much thereof as is necessary, may be
16issued and sold to provide a fund to be used for carrying out the
17purposes expressed in this chapter and to reimburse the General
18Obligation Bond Expense Revolving Fund pursuant to Section
1916724.5 of the Government Code. The bonds, when sold, shall be
20and constitute a valid and binding obligation of the State of
21California, and the full faith and credit of the State of California
22is hereby pledged for the punctual payment of the principal of,
23and interest on, the bonds as the principal and interest become
24due and payable.

25(b) It is the intent of the Legislature that the California
26Community Colleges annually consider, as part of their annual
27capital outlay planning process, the inclusion of facilities that may
28be used by more than one segment of public higher education
29(intersegmental), and, that on or before May 15 of each year, those
30entities report their findings regarding inclusion of facilities for
31intersegmental use to the budget committees of each house of the
32Legislature.

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

37

begin insert101134.5.end insert  

(a) The bonds authorized by this chapter shall be
38prepared, executed, issued, sold, paid, and redeemed as provided
39in the State General Obligation Bond Law (Chapter 4 (commencing
40with Section 16720) of Part 3 of Division 4 of Title 2 of the
P29   1Government Code), and all of the provisions of that law, except
2Section 16727 of the Government Code to the extent that it conflicts
3with this part, apply to the bonds and to this chapter and are hereby
4incorporated into this chapter as though set forth in full within
5this chapter.

6(b) For purposes of the State General Obligation Bond Law,
7each state agency administering an appropriation of the 2016
8California Community College Capital Outlay Bond Fund is
9designated as the “board” for projects funded pursuant to this
10 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
13California Community Colleges for the construction on existing
14or new campuses, and their respective off-campus centers and
15joint use and intersegmental facilities, as set forth in this chapter.

16

begin insert101135.end insert  

The Higher Education Facilities Finance Committee
17established pursuant to Section 67353 shall authorize the issuance
18of bonds under this chapter only to the extent necessary to fund
19the apportionments for the purposes described in this chapter that
20are expressly authorized by the Legislature in the annual Budget
21Act. Pursuant to that legislative direction, the committee shall
22determine whether or not it is necessary or desirable to issue bonds
23authorized pursuant to this chapter in order to carry out the
24purposes described in this chapter and, if so, the amount of bonds
25to be issued and sold. Successive issues of bonds may be authorized
26and sold to carry out those actions progressively, and it is not
27necessary that all of the bonds authorized to be issued be sold at
28any one time.

29

begin insert101135.5.end insert  

There shall be collected each year and in the same
30manner and at the same time as other state revenue is collected,
31in addition to the ordinary revenues of the state, a sum in an
32amount required to pay the principal of, and interest on, the bonds
33each year. It is the duty of all officers charged by law with any
34duty in regard to the collection of the revenue to do and perform
35each and every act that is necessary to collect that additional sum.

36

begin insert101136.end insert  

Notwithstanding Section 13340 of the Government
37Code, there is hereby appropriated from the General Fund in the
38State Treasury, for the purposes of this chapter, an amount that
39will equal the total of the following:

P30   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 101137.5,
5appropriated without regard to fiscal years.

6

begin insert101136.5.end insert  

The board, as defined in subdivision (b) of Section
7101134.5, may request the Pooled Money Investment Board to
8make a loan from the Pooled Money Investment Account or any
9other approved form of interim financing, in accordance with
10Section 16312 of the Government Code, for the purpose of carrying
11out this chapter. The amount of the request shall not exceed the
12amount of 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 101134.5, 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

begin insert101137.end insert  

Notwithstanding any other provision of this chapter,
20or of the State General Obligation Bond Law, if the Treasurer
21sells bonds pursuant to this chapter that include a bond counsel
22opinion to the effect that the interest on the bonds is excluded from
23gross income for federal tax purposes, subject to designated
24conditions, the Treasurer may maintain separate accounts for the
25investment of bond proceeds and for the investment earnings on
26those proceeds. The Treasurer may use or direct the use of those
27proceeds or earnings to pay any rebate, penalty, or other payment
28required under federal law or take any other action with respect
29to the investment and use of those bond proceeds required or
30desirable under federal law to maintain the tax-exempt status of
31those bonds and to obtain any other advantage under federal law
32on behalf of the funds of this state.

33

begin insert101137.5.end insert  

(a) For purposes of carrying out this chapter, the
34Director of Finance may authorize the withdrawal from the
35General Fund of an amount not to exceed the amount of the unsold
36bonds that 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 2016
39California Community College Capital Outlay Bond Fund
40consistent with this chapter. Any money made available under this
P31   1section shall be returned to the General Fund, plus an amount
2equal to the interest that the money would have earned in the
3Pooled Money Investment Account, from proceeds received from
4the sale of bonds for the purpose 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 California Community
8Colleges shall be accompanied by the five-year capital outlay plan
9that reflects the needs and priorities of the community college
10system and is prioritized on a statewide basis. Requests shall
11include a schedule that prioritizes the seismic retrofitting needed
12to significantly reduce, in the judgment of the particular college,
13seismic hazards in buildings identified as high priority by the
14college.

15

begin insert101138.end insert  

All money deposited in the 2016 California Community
16College Capital Outlay Bond Fund that is derived from premium
17and accrued interest on bonds sold shall be reserved in the fund,
18and shall be available for transfer to the General Fund as a credit
19to expenditures for bond interest.

20

begin insert101139.end insert  

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

begin insert101139.5.end insert  

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.

end insert
34begin insert

begin insertSEC. 19.end insert  

end insert
begin insert

The Secretary of State shall submit Sections 17 and
3518 of this act to the voters at the ____, 2016, statewide ____
36election.

end insert
37begin insert

begin insertSEC. 20.end insert  

end insert
begin insert

The provisions of this act are severable. If any
38provision of this act or its application is held invalid, that invalidity
39shall not affect other provisions or applications that can be given
40effect without the invalid provision or application.

end insert
P32   1begin insert

begin insertSEC. 21.end insert  

end insert
begin insert

Sections 2 to 14, inclusive, and Sections 16, 17, and
218 of this act shall become operative only if the voters approve
3the K-14 School Investment Bond Act of 2016, as set forth in
4Section 18 of this act.

end insert
begin delete
5

SECTION 1.  

It is the intent of the Legislature to enact
6legislation to submit a general obligation bond measure to the
7voters during the 2016 calendar year to fund the modernization
8and construction of school facilities.

end delete


O

    98