BILL NUMBER: AB 882	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 25, 2015
	AMENDED IN ASSEMBLY  MAY 20, 2015
	AMENDED IN ASSEMBLY  MAY 6, 2015

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