Amended in Senate June 25, 2015

Amended in Assembly May 20, 2015

Amended in Assembly May 6, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 882

Introduced by Assembly Member Wilk

(Coauthor: Assembly Member Gallagher)

February 26, 2015

An act to amend Section 15144 of the Education Code, and to amend Section 53508.6 of the Government Code, relating to school bonds.

LEGISLATIVE COUNSEL’S DIGEST

AB 882, as amended, Wilk. School bonds: term of bonds: furnishing and equipping classrooms.

(1) Existing law authorizes the governing board of a school district or community college district to order an election and submit to the electors of the district whether the bonds of the district should be issued and sold, and sets forth requirements in that regard, including specifying that the term of a bond shall not exceed 25 years from the date of the bond or bond series.

This bill would specify that the term of a bond begin insert issue end insert used begin delete for purposes of end delete begin insert to finance projects that include end insert furnishing and equipping classrooms shall begin insert have a weighted average maturity that does end insert not exceed 120% of the average reasonably expected economic life of the begin delete furnishings and equipment. end delete begin insert financed project. end insert

(2) Existing law, additionally and alternatively to the authority described above, authorizes the issuance of bonds or refunding bonds by a school district or community college district secured by the levy of ad valorem taxes, and, pursuant to those provisions, authorizes a school district or community college district to issue bonds that do not allow for the compounding of interest and that have a maturity greater than 30, but no greater than 40 years, in accordance with specified requirements.

This bill, notwithstanding those provisions, would specify that a bond begin insert issue end insert used begin delete for the purposes of end delete begin insert to finance projects that include end insert furnishing and equipping classrooms shall begin insert have a weighted average maturity that does end insert not exceed 120% of the average reasonably expected economic life of the begin delete furnishings and equipment. end delete begin insert financed project. end insert

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

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

SECTION 1.  

Section 15144 of the Education Code is amended
to read:

15144.  

(a) The number of years the whole or any part of the
bonds are to run shall not exceed 25 years, from the date of the
bonds or the date of any series thereof.

(b) Notwithstanding subdivision (a), begin delete the term of end delete a bond begin insert issue end insert
used begin delete for the purposes of end delete begin insert to finance projects that include end insert furnishing
and equipping classrooms, including, but not limited to, purchasing
electronic equipment, shall begin insert have a weighted average maturity that
does end insert not exceed 120 percent of the average reasonably expected
economic life of the begin delete furnishings and equipment. end delete begin insert financed project. end insert

SEC. 2.  

Section 53508.6 of the Government Code is amended
to read:

53508.6.  

(a) Notwithstanding any other law, a school district
or community college district may, pursuant to this article, issue
bonds that do not allow for the compounding of interest and that
have a maturity greater than 30 years, but not greater than 40 years,
if the school district or community college district does both of
the following:

(1) Complies with the requirements of subdivisions (b) and (c)
of Section 15146 of the Education Code.

(2) Makes a finding that the useful life of the facility financed
with the bonds that do not allow for the compounding of interest
and that have a maturity greater than 30 years, but not greater than
40 years, equals or exceeds the maturity date of those bonds.

(b) Notwithstanding subdivision (a), begin delete the term of end delete a bond begin insert issue end insert
used begin delete for the purposes of end delete begin insert to finance projects that include end insert furnishing
and equipping classrooms, including, but not limited to, purchasing
electronic equipment, shall begin insert have a weighted average maturity that
does end insert not exceed 120 percent of the average reasonably expected
economic life of the begin delete furnishings and equipment. end delete begin insert financed project. end insert