Amended in Assembly May 6, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 148


Introduced by Assembly Member Holden

(Principal coauthor: Assembly Member Gray)

January 15, 2015


An act to amend Sections 17070.15, 17070.40, 17070.75, 17072.35, 17074.25, 17074.26, 17592.70, and 101012 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, relating to school 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.

LEGISLATIVE COUNSEL’S DIGEST

AB 148, as amended, Holden. School facilities: K-14 School Investment Bond Act of 2016.

(1) Existing law, the Leroy F. Greene School Facilities Act of 1998, requires the State Allocation Board to allocate to applicant school districts prescribed per-unhoused-pupil state funding for construction and modernization of school facilities, including hardship funding, and supplemental funding for site development and acquisition.

This bill would 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.

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.

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.

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.

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.

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.

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.

(2) Existing law, the California Constitution, prohibits the Legislature from creating a debt or liability that singly or in the aggregate with any previous debts or liabilities exceeds the sum of $300,000, except by an act that (A)authorizes the debt for a single object or work specified in the act, (B) has been passed by a 23 vote of all the members elected to each house of the Legislature, (C) has been submitted to the people at a statewide general or primary election, and (D) has received a majority of all the votes cast for and against it at that election.

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.

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.

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.

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.

(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.

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

Vote: 23. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

P3    1

SECTION 1.  

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

P4    1(1) The State Department of Education has estimated that 71
2percent of the classrooms in California are more than 25 years old,
3about 30 percent of the classrooms are at least 50 years old, and
4about 10 percent of the classrooms are at least 70 years old. About
525 percent of the classrooms are in temporary portable buildings.

6(2) The State of California has failed to adequately invest in
7school facilities, resulting in an unmet, and growing, funding need
8that, as of March 2015, is at least $1.1 billion.

9(3) In a study conducted by the University of California,
10Berkeley, in 2012, it was estimated that California schools needed
11an infusion of approximately $117 billion through 2022, with close
12to one-half of that funding needed to replace or repair existing
13buildings.

14(4) A growing body of research on school building conditions
15and pupil outcomes finds a consistent relationship between poor
16facilities and poor performance by pupils. School facilities that
17are clean, in good repair, and designed to support high academic
18standards are more likely to support higher pupil achievement,
19regardless of pupil socioeconomic status.

20(5) Studies show that 13,000 jobs are created for each $1 billion
21of state infrastructure investment. These investments are needed
22to improve learning conditions for our pupils and improve teaching
23conditions in our classrooms.

24(6) Closing the disparity gap in school building quality is an
25integral part of closing the achievement gap.

26(b) Therefore, it is the intent of the Legislature to place the K-14
27School Investment Bond Act of 2016 on the ballot. The voters’
28approval of this proposed measure would prioritize investment
29partnerships with local school districts to upgrade aging facilities
30to meet current health and safety standards, including retrofitting
31for earthquake safety and removing of lead paint, asbestos, and
32other hazardous materials, and to reduce overcrowding.

33

SEC. 2.  

Section 17070.15 of the Education Code is amended
34to read:

35

17070.15.  

The following terms, wherever used or referred to
36in this chapter, shall have the following meanings, respectively,
37unless a different meaning appears from the context:

38(a) “Apportionment” means a reservation of funds for the
39purpose of eligible new construction, modernization, or hardship
40approved by the board for an applicant school district.

P5    1(b) “Attendance area” means the geographical area serving an
2existing high school and those junior high schools and elementary
3schools included therein.

4(c) “Board” means the State Allocation Board as established by
5Section 15490 of the Government Code.

6(d) “Committee” means the State School Building Finance
7Committee established pursuant to Section 15909.

8(e) “County fund” means a county school facilities fund
9established pursuant to Section 17070.43.

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

11(g) “Fund” means the applicable 1998 State School Facilities
12Fund, the 2002 State School Facilities Fund, the 2004 State School
13Facilities Fund, the 2006 State School Facilities Fund, or the 2016
14State School Facilities Fund, established pursuant to Section
1517070.40.

16(h) “Good repair” has the same meaning as specified in
17subdivision (d) of Section 17002.

18(i) “Modernization” means any modification or replacement of
19a permanent structure that is at least 25 years old, or, in the case
20of a portable classroom, that is at least 20 years old, that will
21enhance the ability of the structure to achieve educational purposes.

22(j) “Portable classroom” means a classroom building of one or
23more stories that is designed and constructed to be relocatable and
24transportable over public streets, and with respect to a single story
25portable classroom, is designed and constructed for relocation
26without the separation of the roof or floor from the building and
27when measured at the most exterior walls, has a floor area not in
28excess of 2,000 square feet.

29(k) “Property” includes all property, real, personal or mixed,
30tangible or intangible, or any interest therein necessary or desirable
31for carrying out the purposes of this chapter.

32(l) “School building capacity” means the capacity of a school
33building to house pupils.

34(m) “School district” means a school district or a county office
35of education. For purposes of determining eligibility under this
36chapter, “school district” may also mean a high school attendance
37area.

38

SEC. 3.  

Section 17070.40 of the Education Code is amended
39to read:

P6    1

17070.40.  

(a) (1) A fund is hereby established in the State
2Treasury, to be known as the 1998 State School Facilities Fund.
3All money in the fund, including any money deposited in that fund
4from any source whatsoever, and notwithstanding Section 13340
5of the Government Code, is hereby continuously appropriated
6without regard to fiscal years for expenditure pursuant to this
7chapter.

8(2) The board may apportion funds to school districts for the
9purposes of this chapter from funds transferred to the 1998 State
10School Facilities Fund from any source.

11(3) The board may make apportionments in amounts not
12exceeding those funds on deposit in the 1998 State School Facilities
13Fund, and any amount of bonds authorized by the committee, but
14not yet sold by the Treasurer.

15(4) The board may make disbursements pursuant to any
16apportionment made from any funds in the 1998 State School
17Facilities Fund, irrespective of whether there exists at the time of
18the disbursement an amount in the 1998 State School Facilities
19Fund sufficient to permit payment in full of all apportionments
20previously made. However, no disbursement shall be made from
21any funds required by law to be transferred to the General Fund.

22(b) (1) A fund is hereby established in the State Treasury, to
23be known as the 2002 State School Facilities Fund. All money in
24the fund, including any money deposited in that fund from any
25source whatsoever, and notwithstanding Section 13340 of the
26Government Code, is hereby continuously appropriated without
27regard to fiscal years for expenditure pursuant to this chapter.

28(2) The board may apportion funds to school districts for the
29purposes of this chapter from funds transferred to the 2002 State
30School Facilities Fund from any source.

31(3) The board may make apportionments in amounts not
32exceeding those funds on deposit in the 2002 State School Facilities
33Fund, and any amount of bonds authorized by the committee, but
34not yet sold by the Treasurer.

35(4) The board may make disbursements pursuant to any
36apportionment made from any funds in the 2002 State School
37Facilities Fund, irrespective of whether there exists at the time of
38the disbursement an amount in the 2002 State School Facilities
39Fund sufficient to permit payment in full of all apportionments
P7    1previously made. However, no disbursement shall be made from
2any funds required by law to be transferred to the General Fund.

3(c) (1) A fund is hereby established in the State Treasury, to
4be known as the 2004 State School Facilities Fund. All money in
5the fund, including any money deposited in that fund from any
6source whatsoever, and notwithstanding Section 13340 of the
7Government Code, is hereby continuously appropriated without
8regard to fiscal years for expenditure pursuant to this chapter.

9(2) The board may apportion funds to school districts for the
10purposes of this chapter from funds transferred to the 2004 State
11School Facilities Fund from any source.

12(3) The board may make apportionments in amounts not
13exceeding those funds on deposit in the 2004 State School Facilities
14Fund, and any amount of bonds authorized by the committee, but
15not yet sold by the Treasurer.

16(4) The board may make disbursements pursuant to any
17apportionment made from any funds in the 2004 State School
18Facilities Fund, irrespective of whether there exists at the time of
19the disbursement an amount in the 2004 State School Facilities
20Fund sufficient to permit payment in full of all apportionments
21previously made. However, no disbursement shall be made from
22any funds required by law to be transferred to the General Fund.

23(d) (1) A fund is hereby established in the State Treasury, to
24be known as the 2006 State School Facilities Fund. All money in
25the fund, including any money deposited in that fund from any
26source whatsoever, and notwithstanding Section 13340 of the
27Government Code, is hereby continuously appropriated without
28regard to fiscal years for expenditure pursuant to this chapter.

29(2) The board may apportion funds to school districts for the
30purposes of this chapter from funds transferred to the 2006 State
31School Facilities Fund from any source.

32(3) The board may make apportionments in amounts not
33exceeding those funds on deposit in the 2006 State School Facilities
34Fund, and any amount of bonds authorized by the committee, but
35not yet sold by the Treasurer.

36(4) The board may make disbursements pursuant to any
37apportionment made from any funds in the 2006 State School
38Facilities Fund, irrespective of whether there exists at the time of
39the disbursement an amount in the 2006 State School Facilities
40Fund sufficient to permit payment in full of all apportionments
P8    1previously made. However, no disbursement shall be made from
2any funds required by law to be transferred to the General Fund.

3(e) (1) A fund is hereby established in the State Treasury, to
4be known as the 2016 State School Facilities Fund. All money in
5the fund, including any money deposited in that fund from any
6source whatsoever, and notwithstanding Section 13340 of the
7Government Code, is hereby continuously appropriated without
8regard to fiscal years for expenditure pursuant to this chapter.

9(2) The board may apportion funds to school districts for the
10purposes of this chapter from funds transferred to the 2016 State
11School Facilities Fund from any source.

12(3) The board may make apportionments in amounts not
13exceeding those funds on deposit in the 2016 State School Facilities
14Fund, and any amount of bonds authorized by the committee, but
15not yet sold by the Treasurer.

16(4) The board may make disbursements pursuant to any
17apportionment made from any funds in the 2016 State School
18Facilities Fund, irrespective of whether there exists at the time of
19the disbursement an amount in the 2016 State School Facilities
20Fund sufficient to permit payment in full of all apportionments
21previously made. However, no disbursement shall be made from
22any funds required by law to be transferred to the General Fund.

23

SEC. 4.  

Section 17070.75 of the Education Code is amended
24to read:

25

17070.75.  

(a) As a condition of participation in the school
26facilities program, the board shall require the school district to
27make all necessary repairs, renewals, and replacements to ensure
28that a project is at all times maintained in good repair, working
29order, and condition. All costs incurred for this purpose shall be
30borne by the school district.

31(b) In order to ensure compliance with subdivision (a) and to
32encourage school districts to maintain all buildings under their
33control, the board shall require an applicant school district to do
34all of the following prior to the approval of a project:

35(1) Establish a restricted account within the general fund of the
36school district for the exclusive purpose of providing moneys for
37ongoing and major maintenance of school buildings, according
38the highest priority to funding for the purposes set forth in
39subdivision (a).

P9    1(2) (A) Agree to deposit into the account established pursuant
2to paragraph (1), in each fiscal year for 20 years after receipt of
3funds under this chapter, a minimum amount equal to or greater
4than 2 percent of the total general fund expenditures of the
5applicant school district, including other financing uses, for that
6fiscal year.

7(B) A school district contribution to the account may be provided
8in lieu of meeting the ongoing maintenance requirements pursuant
9to Section 17014 to the extent the funds are used for purposes
10established in that section. A school district that serves as the
11administrative unit for a special education local plan area may
12elect to exclude from its total general fund expenditures, for
13purposes of this paragraph, the distribution of revenues that are
14passed through to participating members of the special education
15local plan area.

16(C) This paragraph applies only to the following school districts:

17(i) High school districts with an average daily attendance greater
18than 300 pupils.

19(ii) Elementary school districts with an average daily attendance
20greater than 900 pupils.

21(iii) Unified school districts with an average daily attendance
22greater than 1,200 pupils.

23(3) Certify that it has publicly approved an ongoing and major
24maintenance plan that outlines the use of the funds deposited, or
25to be deposited, pursuant to paragraph (2). The plan may provide
26that the school district need not expend all of its annual allocation
27for ongoing and major maintenance in the year in which it is
28deposited if the cost of major maintenance requires that the
29allocation be carried over into another fiscal year. However, any
30state funds carried over into a subsequent year may not be counted
31toward the annual minimum contribution by the school district.

32(c) For purposes of calculating a county office of education
33requirement pursuant to this section, the 2 percent maintenance
34requirement shall be based upon the county office of education
35general fund less any restricted accounts.

36(d) As a condition of participation in the school facilities
37program or the receipt of funds pursuant to Section 17582, for a
38fiscal year after the 2004-05 fiscal year, a school district shall
39establish a facilities inspection system to ensure that each of its
40schools is maintained in good repair.

P10   1(e) For purposes of this section, “good repair” has the same
2meaning as specified in subdivision (d) of Section 17002.

3

SEC. 5.  

Section 17070.99 of the Education Code is repealed.

4

SEC. 6.  

Section 17071.15 is added to the Education Code, to
5read:

6

17071.15.  

Notwithstanding Section 17071.10, the board shall
7require a school district that elects to participate in the new
8construction program to conduct an inventory of existing facilities
9and submit this information to the board, as prescribed by the
10board, for purposes of maintaining a statewide school facilities
11inventory.

12

SEC. 7.  

Section 17071.33 of the Education Code is repealed.

13

SEC. 8.  

Section 17071.35 of the Education Code is repealed.

14

SEC. 9.  

Section 17071.40 of the Education Code is repealed.

15

SEC. 10.  

Section 17072.35 of the Education Code is amended
16to read:

17

17072.35.  

(a) (1) A grant for new construction may be used
18for any and all costs necessary to adequately house new pupils in
19any approved project, and those costs may only include the cost
20of design, engineering, testing, inspection, plan checking,
21construction management, site acquisition and development,
22evaluation and response action costs relating to hazardous
23substances at a new or existing schoolsite, demolition, construction,
24acquisition and installation of portable classrooms, landscaping,
25necessary utility costs, utility connections and other fees, equipment
26including telecommunication equipment to increase school security,
27furnishings, and the upgrading of electrical systems or the wiring
28 or cabling of classrooms in order to accommodate educational
29technology. A grant for new construction may also be used to
30acquire an existing government or privately owned building, or a
31privately financed school building, and for the necessary costs of
32converting the government or privately owned building for public
33school use.

34(2) A grant for new construction may also be used for either or
35both of the following purposes:

36(A) The cost of designs and materials that promote the efficient
37use of energy and water, the maximum use of natural lighting and
38indoor air quality, the use of recycled materials and materials that
39emit a minimum of toxic substances, the use of acoustics conducive
P11   1to teaching and learning, and other characteristics of
2high-performance schools.

3(B) Seismic mitigation purposes and related design, study, and
4testing costs.

5(b) In the development of guidelines and regulations, the board
6shall provide a school district with maximum flexibility in the
7design and new construction of school facilities.

8

SEC. 11.  

Section 17072.40 is added to the Education Code, to
9read:

10

17072.40.  

The Office of Public School Construction, in
11consultation with the State Department of Education, shall
12recommend to the board regulations that will provide school
13districts with flexibility in designing instructional facilities. These
14recommendations shall propose revisions to any regulations that
15limit the ability of school districts to use new construction grants
16to construct instructional space approved by the State Department
17of Education. The proposed revisions shall ensure that a school
18district has the ability to design a facility that provides a flexible
19learning environment, provides for the integration and use of
20technology, and serves as an instructional space and learning
21environment that supports and enhances the educational delivery
22process.

23

SEC. 12.  

Section 17073.16 is added to the Education Code, to
24read:

25

17073.16.  

The board shall require a school district that elects
26to participate in the modernization program to conduct an inventory
27of existing facilities and submit this information to the board, as
28prescribed by the board, for purposes of maintaining a statewide
29school facilities inventory.

30

SEC. 13.  

Section 17074.25 of the Education Code is amended
31to read:

32

17074.25.  

(a) (1) A modernization apportionment may be
33used for an improvement to extend the useful life of, or to enhance
34the physical environment of, the school. The improvement may
35only include the cost of design, engineering, testing, inspection,
36plan checking, construction management, demolition, construction,
37the replacement of portable classrooms, necessary utility costs,
38utility connection and other fees, the purchase and installation of
39air-conditioning equipment and insulation materials and related
40costs, furniture and equipment, including telecommunication
P12   1equipment to increase school security, fire safety improvements,
2playground safety improvements, the identification, assessment,
3or abatement of hazardous asbestos, seismic safety improvements,
4and the upgrading of electrical systems or the wiring or cabling of
5classrooms in order to accommodate educational technology. A
6modernization grant may not be used for costs associated with
7acquisition and development of real property or for routine
8maintenance and repair.

9(2) A modernization apportionment may also be used for either
10of the following:

11(A) The cost of designs and materials that promote the efficient
12use of energy and water, the maximum use of natural lighting and
13indoor air quality, the use of recycled materials and materials that
14emit a minimum of toxic substances, the use of acoustics conducive
15to teaching and learning, and other characteristics of
16high-performance schools.

17(B)  Seismic mitigation purposes and related design, study, and
18testing costs.

19(b) In the development of guidelines and regulations, the board
20shall provide a school district with maximum flexibility in the
21design and modernization of school facilities.

22(c) (1) A modernization apportionment may also be used to
23demolish and construct a building or buildings on an existing
24schoolsite if the total cost of providing a new school building,
25including land, on a new site would not protect the economic
26interest of the state and school district.

27(2) A project deemed to meet the requirements of paragraph (1)
28shall be eligible for a grant equal to the grant provided under
29Section 17072.10.

30(d) The board shall establish additional requirements it deems
31necessary to ensure that the economic interests of the state and the
32educational interests of the children of the state are protected.

33

SEC. 14.  

Section 17074.26 of the Education Code is amended
34to read:

35

17074.26.  

The board shall adopt regulations to adjust the
36per-pupil amounts set forth in Section 17074.10 for modernization
37projects for school buildings that are 50 years old or older based
38upon the higher costs associated with modernizing older buildings.

39

SEC. 15.  

Section 17254 is added to the Education Code, to
40read:

P13   1

17254.  

(a) The State Department of Education, the Division
2of the State Architect, the Office of Public School Construction,
3and the Department of Toxic Substances Control shall convene
4for purposes of developing an interagency plan to streamline the
5school facility construction application, review, and audit processes
6in order to reduce the time and improve the efficiency of the school
7facilities construction process.

8(b) The interagency plan developed pursuant to subdivision (a)
9shall be submitted to the Legislature, in accordance with Section
109795 of the Government Code, on or before July 1, 2017.

11(c) It is the intent of the Legislature that operative regulatory
12language adopted by the State Allocation Board before the effective
13date of this section be reviewed and revised before July 1, 2016,
14to ensure that the School Facility Program is being implemented
15in a manner that reduces duplicative processes for the review,
16approval, and audit of school facility new construction and
17modernization projects.

18(d)  This section shall remain in effect only until July 1, 2021,
19and as of that date is repealed, unless a later enacted statute, that
20is enacted before July 1, 2021, deletes or extends that date.

21

SEC. 16.  

Section 17592.70 of the Education Code is amended
22to read:

23

17592.70.  

(a) There is hereby established the School Facilities
24Needs Assessment Grant Program with the purpose to provide for
25a one-time comprehensive assessment of school facility needs.
26The grant program shall be administered by the State Allocation
27Board.

28(b) (1) The grants shall be awarded to school districts on behalf
29of schoolsites ranked in deciles 1 to 3, inclusive, on the Academic
30Performance Index (API), pursuant to Section 52056, based on
31the 2003 base API score for each school newly constructed prior
32to January 1, 2000.

33(2) For purposes of this section, schools ranked in deciles 1 to
343, inclusive, on the 2003 base API shall include any schools
35determined by the department to meet either of the following:

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

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

38(ii) Is operating in the 2004-05 fiscal year, and was operating
39in the 2003-04 fiscal year during the Standardized Testing and
40Reporting (STAR) Program testing period.

P14   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 its Internet 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.

P15   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,
9and a 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 subdivision (d) of Section 17070.75.

21(4) Provide the results of the assessment to the Office of Public
22School Construction, including a report on the expenditures made
23in performing the assessment. It is the intent of the Legislature
24that the assessments be completed as soon as possible, but not later
25than January 1, 2006.

26(5) If a school district does not need the full amount of the
27allocation it receives pursuant to this section, the school district
28shall expend the remaining funds for making facilities repairs
29identified in its needs assessment. The school district shall report
30to the Office of Public School Construction on the repairs
31completed pursuant to this paragraph and the cost of the repairs.

32(6) Submit to the Office of Public School Construction an
33interim report regarding the progress made by the school district
34in completing the assessments of all eligible schools.

35

SEC. 17.  

Section 101012 of the Education Code is amended
36to read:

37

101012.  

(a) The proceeds from the sale of bonds, issued and
38sold for the purposes of this chapter, shall be allocated in
39accordance with the following schedule:

P16   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 Part 10 of Division 1 of Title 1. Of the
5 amount 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. 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 date
12that Part 70 (commencing with Section 101100) becomes operative.

13(2) The amount of five hundred million dollars ($500,000,000)
14shall be available for providing school facilities to charter schools
15pursuant to Article 12 (commencing with Section 17078.52) of
16Chapter 12.5 of Part 10 of Division 1 of Title 1.

17(3) The amount of three billion three hundred million dollars
18($3,300,000,000) for the modernization of school facilities pursuant
19to Chapter 12.5 (commencing with Section 17070.10) of Part 10
20of Division 1 of Title 1.

21(4) (A)  The amount of five hundred million dollars
22($500,000,000) for the purposes set forth in Article 13
23(commencing with Section 17078.70) of Chapter 12.5 of Part 10
24of Division 1 of Title 1, relating to facilities for career technical
25education programs.

26(B) Of the amount not yet approved for allocation by the State
27Allocation Board pursuant to this paragraph by January 1, 2015,
2850 percent shall be available for the purpose of paragraph (1), and
2950 percent shall be available for purposes of paragraph (3). If an
30apportionment or State Allocation Board approval pursuant to this
31paragraph is rescinded after January 1, 2015, the rescinded amount
32shall be available for the purposes of paragraphs (1) and (3). The
33State Allocation Board shall determine the percentage of the
34rescinded amount to be used for purposes of paragraph (1) and the
35percentage of the rescinded amount to be used for purposes of
36paragraph (3).

37(5) Of the amounts allocated under paragraphs (1) and (3), up
38to two hundred million dollars ($200,000,000) for the purposes
39set forth in Chapter 894 of the Statutes of 2004, relating to
P17   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.

P18   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.

26

SEC. 18.  

Part 70 (commencing with Section 101100) is added
27to Division 14 of Title 3 of the Education Code, to read:

28 

29PART 70.  K-14 SCHOOL INVESTMENT BOND ACT OF 2016

30

 

31Chapter  1. General
32

 

33

101100.  

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

35

101101.  

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

38

101102.  

(a) Bonds in the total amount of ____ dollars ($____),
39not including the amount of any refunding bonds issued in
40accordance with Sectionsbegin delete 101130, 101139, and 101159,end deletebegin insert 101130
P19   1and 101139,end insert
or so much thereof as is necessary, may be issued
2and sold to provide a fund to be used for carrying out the purposes
3expressed in this part and to reimburse the General Obligation
4Bond Expense Revolving Fund pursuant to Section 16724.5 of the
5Government Code. The bonds, when sold, shall be and constitute
6a valid and binding obligation of the State of California, and the
7full faith and credit of the State of California is hereby pledged
8for the punctual payment of the principal of, and interest on, the
9bonds as the principal 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  2. Kindergarten Through Grade 12
18

 

19Article 1.  Kindergarten Through Grade 12 School Facilities
20Program Provisions
21

 

22

101110.  

The proceeds of bonds issued and sold pursuant to
23Article 2 (commencing with Section 101120) shall be deposited
24in the 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

101111.  

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 the
31Leroy 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.

P20   1

101112.  

(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 pursuant
13to Article 12 (commencing with Section 17078.52) of Chapter
1412.5 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 (a)
31may also be utilized to provide new construction grants for eligible
32applicant 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

101113.  

(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.

P21   1(b) The boardbegin delete shall assign priority for funding under this chapterend delete
2begin insert may provide a one-time supplemental grant pursuant to regulations
3adopted by the board end insert
to applicant school districts that demonstrate
4participation in a community-based effort to coordinate educational,
5developmental, family, health, and other comprehensive services
6by engaging in public and private partnerships with local public
7entities and other nonprofit or private community partners. Criteria
8that demonstrate this participation shall include all of the following:

9(1) Institutionalized structures for cross-agency collaboration,
10including, but not limited to, memoranda of understanding to
11coordinate activities and services.

12(2) Agreements for joint use and operations of school facilities
13that provide for extended hours of use for pupils, families, and the
14community, integration of libraries, early childhood education,
15child care centers, senior centers, outdoor recreation or
16environmental education, arts education, and career technical
17education and adult education offerings for pupils and community
18members.

19(3) Participation in the State Community Schools Network.

20(4) Participation in technical assistance and training, including
21professional development, for full-service community schools.

22(5) Certification that the district’s school facilities master plan
23is consistent with the regional sustainable communities strategy
24established pursuant to Section 65080 of the Government Code.

25 

26Article 2.  Kindergarten Through Grade 12 School Facilities
27Fiscal Provisions
28

 

29

101120.  

(a) Of the total amount of bonds authorized to be
30issued and sold pursuant to Chapter 1 (commencing with Section
31101100), bonds in the amount of ____ dollars ($____), not
32including the amount of any refunding bonds issued in accordance
33with Section 101130, or so much thereof as is necessary, may be
34issued and sold to provide a fund to be used for carrying out the
35purposes expressed in this chapter and to reimburse the General
36Obligation Bond Expense Revolving Fund pursuant to Section
3716724.5 of the Government Code. The bonds, when sold, shall be
38and constitute a valid and binding obligation of the State of
39California, and the full faith and credit of the State of California
40is hereby pledged for the punctual payment of the principal of, and
P22   1 interest on, the bonds as the principal and interest become due and
2payable.

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

101121.  

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 chairperson
14of the committee. Two Members of the Senate appointed by the
15Senate Committee on Rules, and two Members of the Assembly
16appointed by the Speaker of the Assembly, shall meet with and
17provide advice to the committee to the extent that the advisory
18participation is not incompatible with their respective positions as
19Members of the Legislature. For purposes of this chapter, the
20Members of the Legislature shall constitute an interim investigating
21committee on the subject of this chapter and, as that committee,
22shall have the powers granted to, and duties imposed upon, those
23committees by the Joint Rules of the Senate and the Assembly.
24The Director of Finance shall provide assistance to the committee
25as it may require. The Attorney General of the state is the legal
26advisor of the committee.

27

101122.  

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

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

39

101123.  

(a) Upon request of the State Allocation Board, the
40State School Building Finance Committee shall determine whether
P23   1or not it is necessary or desirable to issue bonds authorized pursuant
2to this chapter in order to fund the apportionments and, if so, the
3amount of bonds to be issued and sold. Successive issues of bonds
4may be authorized and sold to fund those apportionments
5progressively, and it is not necessary that all of the bonds
6authorized to be issued be sold at any one time.

7(b) 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

101124.  

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 amount
19required to pay the principal of, and interest on, the bonds each
20year. It is the duty of all officers charged by law with any duty in
21regard to the collection of the revenue to do and perform each and
22every act that is necessary to collect that additional sum.

23

101125.  

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

101126.  

The State Allocation Board may request the Pooled
33Money Investment Board to make a loan from the Pooled Money
34 Investment 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
P24   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

101127.  

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

18

101128.  

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
24School Facilities Fund consistent with this chapter. Any money
25made available under this section shall be returned to the General
26Fund, plus an amount equal to the interest that the money would
27have earned in the Pooled Money Investment Account, from
28proceeds received from the sale of bonds for the purpose of
29carrying out this chapter.

30

101129.  

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 transfer
33to the General Fund as a credit to expenditures for bond interest.

34

101130.  

The bonds may be refunded in accordance with Article
356 (commencing with Section 16780) of Chapter 4 of Part 3 of
36Division 4 of Title 2 of the Government Code, which is a part of
37the State General Obligation Bond Law. Approval by the voters
38of the state for the issuance of the bonds described in this chapter
39includes the approval of the issuance of any bonds issued to refund
P25   1any bonds originally issued under this chapter or any previously
2issued refunding bonds.

3

101131.  

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  3. California Community College Facilities
11

 

12Article 1.  General
13

 

14

101132.  

(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 create
20a debt or debts, liability or liabilities, of the State of California
21pursuant to this chapter for the purpose of providing funds to aid
22the California Community Colleges.

23 

24Article 2.  California Community College Facilities Program
25Provisions
26

 

27

101133.  

(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
P26   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 3.  California Community College Facilities Fiscal
9Provisions
10

 

11

101134.  

(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, and
23 interest on, the bonds as the principal and interest become due and
24payable.

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

101134.5.  

(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
P27   1Government Code), and all of the provisions of that law, except
2Section 16727 of the Government Code to the extent that it
3conflicts with this part, apply to the bonds and to this chapter and
4are hereby incorporated into this chapter as though set forth in full
5within this 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
10chapter.

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 joint
15use and intersegmental facilities, as set forth in this chapter.

16

101135.  

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
28 any one time.

29

101135.5.  

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 amount
32required to pay the principal of, and interest on, the bonds each
33year. It is the duty of all officers charged by law with any duty in
34regard to the collection of the revenue to do and perform each and
35every act that is necessary to collect that additional sum.

36

101136.  

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:

P28   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

101136.5.  

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

101137.  

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

33

101137.5.  

(a) For purposes of carrying out this chapter, the
34Director of Finance may authorize the withdrawal from the General
35Fund of an amount not to exceed the amount of the unsold bonds
36that have been authorized by the Higher Education Facilities
37Finance Committee to be sold for the purpose of carrying out this
38chapter. Any amounts withdrawn shall be deposited in the 2016
39California Community College Capital Outlay Bond Fund
40consistent with this chapter. Any money made available under this
P29   1section shall be returned to the General Fund, plus an amount equal
2to the interest that the money would have earned in the Pooled
3Money Investment Account, from proceeds received from the sale
4of 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

101138.  

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

20

101139.  

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

101139.5.  

The Legislature hereby finds and declares that,
29inasmuch as the proceeds from the sale of bonds authorized by
30this chapter are not “proceeds of taxes” as that term is used in
31Article XIII B of the California Constitution, the disbursement of
32these proceeds is not subject to the limitations imposed by that
33article.

34

SEC. 19.  

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

37

SEC. 20.  

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.

P30   1

SEC. 21.  

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.



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