BILL NUMBER: AB 581	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Gomez

                        FEBRUARY 24, 2015

   An act to add Chapter 11.2 (commencing with Section 8852) to
Division 1 of Title 2 of the Government Code, relating to financing
deferred maintenance on state facilities, by providing the funds
necessary therefor through an election for the issuance and sale of
bonds of the State of California and for the handling and disposition
of those funds.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 581, as introduced, Gomez. State Facilities Renewal Bond Act of
2016.
   The annual Budget Act appropriates funds to state agencies for
operations as part of their respective agency budgets. Existing law
requires the Department of General Services to report to the
Legislature, as specified, on expenditures for seismic hazard
abatement for state buildings and facilities, in connection with the
Earthquake Safety and Public Buildings Rehabilitation Bond Act of
1990.
   This bill would enact the State Facilities Renewal Bond Act of
2016, which, if adopted by the voters at the June 7, 2016, statewide
primary election, would authorize the issuance of bonds in the amount
of $2,000,000,000, pursuant to the State General Obligation Bond
Law, to finance deferred maintenance on state-owned property, subject
to appropriation by the Legislature in the annual Budget Act.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Chapter 11.2 (commencing with Section 8852) is added to
Division 1 of Title 2 of the Government Code, to read:
      CHAPTER 11.2.  STATE FACILITIES RENEWAL BOND ACT OF 2016



      Article 1.  General Provisions


   8852.  (a) This chapter shall be known as the State Facilities
Renewal Bond Act of 2016.
   8852.1.  As used in this chapter, the following terms have the
following meanings:
   (a) "Committee" means the State Facilities Renewal Bond Finance
Committee created pursuant to Section 8852.31.
   (b) "Fund" means the State Facilities Renewal Bond Fund created
pursuant to Section 8852.2.
   (c) "State agency" means any state agency, department, office,
division, bureau, board, commission, the California State University,
the University of California, and the Judicial Council.

      Article 2.  State Facilities Renewal Bond Fund and Program


   8852.2.  (a) The proceeds of bonds issued and sold pursuant to
this chapter shall be deposited in the State Facilities Renewal Bond
Fund, which is hereby created. Fund moneys shall only be used to
address deferred maintenance on state-owned property and shall be
made available for expenditure only upon appropriation by the
Legislature in the annual Budget Act. Funds shall be appropriated to
state agencies as part of their respective agency budgets for state
operations. It is the intent of the Legislature that the projects
funded by these bonds shall have a useful life of at least 20 years.
   (b) A state agency for which the Governor proposes an
appropriation from the State Facilities Renewal Bond Fund as part of
his or her January 10 budget proposal shall report, within 60 days
following the release of the budget proposal, the following to the
respective budget committees of the Legislature:
   (1) The agency's total deferred maintenance backlog.
   (2) A list of deferred maintenance projects proposed to be
undertaken by the agency with moneys from the fund proposed for
appropriation.
   (3) The extent to which the agency's current budget for
maintenance is insufficient to prevent an increase in the agency's
deferred maintenance backlog.

      Article 3.  Fiscal


   8852.3.  Bonds in the total amount of two billion dollars
($2,000,000,000), or so much thereof as is necessary, not including
the amount of any refunding bonds, or so much thereof as is
necessary, may be issued and sold to provide a fund to be used for
carrying out the purposes expressed in this chapter and to reimburse
the General Obligation Bond Expense Revolving Fund pursuant to
Section 16724.5. The bonds, when sold, shall be and constitute a
valid and binding obligation of the State of California, and the full
faith and credit of the State of California is hereby pledged for
the punctual payment of both principal of, and interest on, the bonds
as the principal and interest become due and payable. The bonds
issued pursuant to this chapter shall be repaid within 20 years from
the date they are issued.
   8852.31.  The bonds authorized by this chapter shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2), and all of the provisions
of that law apply to the bonds and to this chapter and are hereby
incorporated in this chapter as though set forth in full in this
chapter, except subdivisions (a) and (b) of Section 16727.
   8852.32.  (a) Solely for the purpose of authorizing the issuance
and sale pursuant to the State General Obligation Bond Law of the
bonds authorized by this chapter, the State Facilities Renewal Bond
Finance Committee is hereby created. For purposes of this chapter,
the State Facilities Renewal Bond Finance Committee is "the committee"
as that term is used in the State General Obligation Bond Law. The
committee consists of the Controller, Director of Finance, and
treasurer, or their designated representatives.
   (b) The treasurer shall serve as chairperson of the committee.
   (c) A majority of the committee may act for the committee.
   8852.33.  The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
chapter in order to carry out the actions specified in Section 8852.2
and, if so, the amount of bonds to be issued and sold. Successive
issues of bonds may be authorized and sold to carry out those actions
progressively, and it is not necessary that all of the bonds
authorized to be issued be sold at any one time.
   8852.34.  There shall be collected each year and in the same
manner and at the same time as other state revenue is collected, in
addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year. It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act that is necessary to collect that additional sum.
   8852.35.  Notwithstanding Section 13340, there is hereby
appropriated from the General Fund in the State Treasury, for the
purposes of this chapter, an amount that will equal the total of the
following:
   (a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this chapter, as the
principal and interest become due and payable.
   (b) The sum necessary to carry out Section 8852.36, appropriated
without regard to fiscal years.
   8852.36.  For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds that
have been authorized by the committee to be sold for the purpose of
carrying out this chapter. Any amounts withdrawn shall be deposited
in the fund. Any money made available under this section shall be
returned to the General Fund, with interest at the rate earned by the
money in the Pooled Money Investment Account, from proceeds received
from the sale of bonds for the purpose of carrying out this chapter.

   8852.37.  All money deposited in the fund that is derived from
premium and accrued interest on bonds sold shall be reserved in the
fund and shall be available for transfer to the General Fund as a
credit to expenditures for bond interest.
   8852.38.  Pursuant to Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2, the cost of bond issuance shall be
paid out of the bond proceeds. These costs shall be shared
proportionally by each program funded through this bond act.
   8852.39.  The committee may request the Pooled Money Investment
Board to make a loan from the Pooled Money Investment Account,
including other authorized forms of interim financing that include,
but are not limited to, commercial paper, in accordance with Section
16312, for purposes of carrying out this chapter. The amount of the
request shall not exceed the amount of the unsold bonds that the
committee, by resolution, has authorized to be sold for the purpose
of carrying out this chapter. The committee shall execute any
documents required by the Pooled Money Investment Board to obtain and
repay the loan. Any amounts loaned shall be deposited in the fund to
be allocated by the board in accordance with this chapter.
   8852.40.  The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of Chapter 4 of Part 3 of Division 4
of Title 2, which is a part of the State General Obligation Bond Law.
Approval by the voters of the state for the issuance of the bonds
described in this chapter includes the approval of the issuance of
any bonds issued to refund any bonds originally issued under this
chapter or any previously issued refunding bonds.
   8852.41.  Notwithstanding any other provision of this chapter, or
of the State General Obligation Bond Law, if the treasurer sells
bonds pursuant to this chapter that include a bond counsel opinion to
the effect that the interest on the bonds is excluded from gross
income for federal tax purposes, subject to designated conditions,
the treasurer may maintain separate accounts for the investment of
bond proceeds and for the investment of earnings on those proceeds.
The treasurer may use or direct the use of those proceeds or earnings
to pay any rebate, penalty, or other payment required under federal
law or take any other action with respect to the investment and use
of those bond proceeds required or desirable under federal law to
maintain the tax exempt status of those bonds and to obtain any other
advantage under federal law on behalf of the funds of this state.
   8852.42.  The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this chapter
are not "proceeds of taxes" as that term is used in Article XIII B of
the California Constitution, the disbursement of these proceeds is
not subject to the limitations imposed by that article.
  SEC. 2.  Section 1 of this act shall take effect upon the approval
by the voters of the State Facilities Renewal Bond Act of 2016, as
set forth in Section 1 of this act.
  SEC. 3.  Section 1 of this act shall be submitted to the voters at
the June 7, 2016, statewide primary election in accordance with
provisions of the Government Code and the Elections Code governing
the submission of a statewide measure to the voters.