Amended in Assembly April 22, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1088


Introduced by Assembly Member O'Donnell

February 27, 2015


An act to amendbegin delete Sectionend deletebegin insert Sections 17070.40, 17072.30, 17072.35, 17074.16, 17074.25, andend insert 17074.26 of,begin insert 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 17070.44 of,end insert and to repeal Sections 17070.99, 17071.33, 17071.35, and 17071.40 of, the Education Code, relating tobegin delete school facilities.end deletebegin insert education 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 fundsend insertbegin insert.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1088, as amended, O'Donnell. begin deleteSchool end deletebegin insertEducation end insertfacilities: bond act: Greene Act.

begin delete

(1) 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.

end delete
begin delete

This bill would state the intent of the Legislature to enact legislation that would create the Kindergarten-University Public Education Facilities Bond Act of a year to be determined, a state general obligation bond act that would provide funds to construct and modernize education facilities, to become operative only if approved by the voters at a statewide general election to be determined, and to provide for the submission of the bond act to the voters at that election.

end delete
begin delete

(2)

end delete

begin insert(1)end insert 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 schoolbegin delete facilities and requires a school district’s ongoing eligibility for new construction to be based, in part, on a calculation of existing school building capacity.end deletebegin insert facilities, including hardship funding, and supplemental funding for site development and acquisition.end insert

The act requires, for purposes of determining existing school building capacity, the calculation to be adjusted as required for first priority status, as provided, relating to multitrack year-round schools, and requires, notwithstanding those provisions, the existing school building capacity for a high school district to be calculated without regard to multitrack year-round school considerations.

This bill would repeal that provision.

begin delete

(3) Existing law requires the State Allocation Board and the State Department of Education to conduct specified evaluations related to the construction of small high schools and requires those evaluations to be used to inform the direction of future school facilities construction and related bond measures.

end delete
begin delete

This bill would repeal that provision.

end delete
begin delete

(4) This bill also would delete obsolete provisions and would correct a cross-reference.

end delete
begin insert

This bill would require the State Allocation Board to convene a workgroup comprised of representatives of specified entities to recommend changes to the act that will shorten and streamline the process for construction and modernization of school facilities. The bill would require the board to submit a report containing those recommendations to the Legislature by September 1, 2016.

end insert
begin insert

The bill would authorize the board to require each school district that elects to participate in a new construction 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 delete a provision requiring the 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 state the intent of the Legislature to, commencing with the proceeds from any bond approved by voters after January 1, 2016, adjust the local match requirements for a new construction grant based on a school district’s ability to raise local revenue.

end insert
begin insert

The bill would, commencing with the proceeds from any bond approved by voters after January 1, 2016, authorize a grant for new construction to be used for additional specified purposes.

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 authorize the board to require each school district that elects to participate in a modernization program to reestablish eligibility, as specified.

end insert
begin insert

The bill would state the intent of the Legislature to, commencing with the proceeds from any bond approved by voters after January 1, 2016, adjust the local match requirements for a modernization grant based on a school district’s ability to raise local revenue.

end insert
begin insert

The bill would, commencing with the proceeds from any bond approved by voters after January 1, 2016, authorize a modernization apportionment to be used for additional specified purposes.

end insert
begin insert

The bill would require the Office of Public Construction to provide the board recommendations on the value of allowing school districts to replace existing facilities on existing schoolsites under certain conditions.

end insert
begin insert

(2) 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.

end insert
begin insert

This bill would enact the Kindergarten-University Public Education Facilities Bond Act of ____ to authorize an unspecified amount of state general obligation bonds to provide aid to school districts, county superintendents of schools, county boards of education, charter schools, the California Community Colleges, the University of California, the Hastings College of the Law, and the California State University to construct and modernize education facilities. The proceeds of these bonds would be deposited in the continuously appropriated ____ State School Facilities Fund, which this bill would establish.

end insert
begin insert

The proposed bond act would become operative only if approved by the voters at an unspecified statewide general election, and the bill would provide for its submission 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 Kindergarten-University Public Education Facilities Bond Act of ____ is approved by the voters at an unspecified statewide general election.

end insert
begin insert

(4) The 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: yes. State-mandated local program: no.

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

begin delete
P4    1

SECTION 1.  

It is the intent of the Legislature to enact
2legislation that would create the Kindergarten-University Public
3Education Facilities Bond Act of ____, to become operative only
4if approved by the voters at the ____ statewide general election,
5and to provide for the submission of the bond act to the voters at
6that election. It is also the intent of the Legislature that the bond
7act, if approved by the voters at that election, would provide for
8the issuance of ____ ($____) of state general obligation bonds to
9provide aid to school districts, county superintendents of schools,
10county boards of education, the California Community Colleges,
11the California State University, and the University of California,
12including the Hastings College of the Law, to construct and
13modernize education facilities.

end delete
14begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 17070.40 of the end insertbegin insertEducation Codeend insertbegin insert is
15amended to read:end insert

16

17070.40.  

(a) (1) A fund is hereby established in the State
17Treasury to be known as the 1998 State School Facilities Fund.
18All money in the fund, including any money deposited in that fund
19from any source whatsoever, and notwithstanding Section 13340
20of the Government Code, is hereby continuously appropriated
21without regard to fiscal years for expenditure pursuant to this
22chapter.

P5    1(2) The board may apportion funds to school districts for the
2purposes of this chapter from funds transferred to the 1998 State
3School Facilities Fund from any source.

4(3) The board may make apportionments in amounts not
5exceeding those funds on deposit in the 1998 State School Facilities
6Fund, and any amount of bonds authorized by the committee, but
7not yet sold by the Treasurer.

8(4) The board may make disbursements pursuant to any
9apportionment made from any funds in the 1998 State School
10Facilities Fund, irrespective of whether there exists at the time of
11the disbursement an amount in the 1998 State School Facilities
12Fund sufficient to permit payment in full of all apportionments
13previously made. However, no disbursement shall be made from
14any funds required by law to be transferred to the General Fund.

15(b) (1) A fund is hereby established in the State Treasury to be
16known as the 2002 State School Facilities Fund. All money in the
17fund, including any money deposited in that fund from any source
18whatsoever, and notwithstanding Section 13340 of the Government
19Code, is hereby continuously appropriated without regard to fiscal
20years for expenditure pursuant to this chapter.

21(2) The board may apportion funds to school districts for the
22purposes of this chapter from funds transferred to the 2002 State
23School Facilities Fund from any source.

24(3) The board may make apportionments in amounts not
25exceeding those funds on deposit in the 2002 State School Facilities
26Fund, and any amount of bonds authorized by the committee, but
27not yet sold by the Treasurer.

28(4) The board may make disbursements pursuant to any
29apportionment made from any funds in the 2002 State School
30Facilities Fund, irrespective of whether there exists at the time of
31the disbursement an amount in the 2002 State School Facilities
32Fund sufficient to permit payment in full of all apportionments
33previously made. However, no disbursement shall be made from
34any funds required by law to be transferred to the General Fund.

35(c) (1) A fund is hereby established in the State Treasury to be
36known as the 2004 State School Facilities Fund. All money in the
37fund, including any money deposited in that fund from any source
38whatsoever, and notwithstanding Section 13340 of the Government
39Code, is hereby continuously appropriated without regard to fiscal
40years for expenditure pursuant to this chapter.

P6    1(2) The board may apportion funds to school districts for the
2purposes of this chapter from funds transferred to the 2004 State
3School Facilities Fund from any source.

4(3) The board may make apportionments in amounts not
5exceeding those funds on deposit in the 2004 State School Facilities
6Fund, and any amount of bonds authorized by the committee, but
7not yet sold by the Treasurer.

8(4) The board may make disbursements pursuant to any
9apportionment made from any funds in the 2004 State School
10Facilities Fund, irrespective of whether there exists at the time of
11the disbursement an amount in the 2004 State School Facilities
12Fund sufficient to permit payment in full of all apportionments
13previously made. However, no disbursement shall be made from
14any funds required by law to be transferred to the General Fund.

15(d) (1) A fund is hereby established in the State Treasury, to
16be known as the 2006 State School Facilities Fund. All money in
17the fund, including any money deposited in that fund from any
18source whatsoever, and notwithstanding Section 13340 of the
19Government Code, is hereby continuously appropriated without
20regard to fiscal years for expenditure pursuant to this chapter.

21(2) The board may apportion funds to school districts for the
22purposes of this chapter from funds transferred to the 2006 State
23School Facilities Fund from any source.

24(3) The board may make apportionments in amounts not
25exceeding those funds on deposit in the 2006 State School Facilities
26Fund, and any amount of bonds authorized by the committee, but
27not yet sold by the Treasurer.

28(4) The board may make disbursements pursuant to any
29apportionment made from any funds in the 2006 State School
30Facilities Fund, irrespective of whether there exists at the time of
31the disbursement an amount in the 2006 State School Facilities
32Fund sufficient to permit payment in full of all apportionments
33previously made. However, no disbursement shall be made from
34any funds required by law to be transferred to the General Fund.

begin insert

35(e) (1) A fund is hereby established in the State Treasury, to be
36known as the ____ State School Facilities Fund. All money in the
37fund, including any money deposited in that fund from any source
38whatsoever, and notwithstanding Section 13340 of the Government
39Code, is hereby continuously appropriated without regard to fiscal
40years for expenditure pursuant to this chapter.

end insert
begin insert

P7    1(2) The board may apportion funds to school districts for the
2purposes of this chapter from funds transferred to the ____ State
3School Facilities Fund from any source.

end insert
begin insert

4(3) The board may make apportionments in amounts not
5exceeding those funds on deposit in the ____ State School Facilities
6Fund, and any amount of bonds authorized by the committee, but
7not yet sold by the Treasurer.

end insert
begin insert

8(4) The board may make disbursements pursuant to any
9apportionment made from any funds in the ____ State School
10Facilities Fund, irrespective of whether there exists at the time of
11the disbursement an amount in the ____ State School Facilities
12Fund sufficient to permit payment in full of all apportionments
13previously made. However, no disbursement shall be made from
14any funds required by law to be transferred to the General Fund.

end insert
15begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 17070.44 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
16read:end insert

begin insert
17

begin insert17070.44.end insert  

(a) The board shall convene a workgroup comprised
18of representatives of the Office of Public School Construction, the
19Department of Finance, the Division of State Architect, the
20department, other state agencies, and interested stakeholders to
21recommend changes to this chapter that will shorten and streamline
22the process for the construction and modernization of school
23facilities. The board shall submit a report containing those
24recommendations to the Legislature by September 1, 2016.

25(b) (1) The report required to be submitted to the Legislature
26pursuant to subdivision (a) shall be submitted in compliance with
27Section 9795 of the Government Code.

28(2) This section shall remain in effect only until January 1, 2021,
29and as of that date is repealed, unless a later enacted statute, that
30is enacted before January 1, 2021, deletes or extends that date.

end insert
31

begin deleteSEC. 2.end delete
32begin insertSEC. 3.end insert  

Section 17070.99 of the Education Code is repealed.

33begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 17071.15 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
34read:end insert

begin insert
35

begin insert17071.15.end insert  

Notwithstanding Section 17071.10, the board may
36require each school district that elects to participate in the new
37construction program funded by the proceeds of any bond approved
38by voters after January 1, 2016, to do both of the following:

39(a) Reestablish eligibility pursuant to regulations adopted by
40the board.

P8    1(b) Submit information describing existing facilities in the school
2district for the purpose of establishing a statewide inventory,
3pursuant to regulations adopted by the board.

end insert
4

begin deleteSEC. 3.end delete
5begin insertSEC. 5.end insert  

Section 17071.33 of the Education Code is repealed.

6

begin deleteSEC. 4.end delete
7begin insertSEC. 6.end insert  

Section 17071.35 of the Education Code is repealed.

8

begin deleteSEC. 5.end delete
9begin insertSEC. 7.end insert  

Section 17071.40 of the Education Code is repealed.

10begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 17072.30 of the end insertbegin insertEducation Codeend insertbegin insert is amended
11to read:end insert

12

17072.30.  

(a) Subject to the availability of funds, and to the
13determination of priority pursuant to Section 17072.25, if
14applicable, the board shall apportion funds to an eligible school
15district only upon the approval of the project by the Department
16of General Services pursuant to the Field Act, as defined in Section
1717281, and certification by the school district that the required 50
18percent matching funds from local sources have been expended
19by the district for the project, or have been deposited in the county
20fund, or will be expended by the district by the time the project is
21completed, in an amount at least equal to the proposed
22apportionment pursuant to this chapter, prior to release of the state
23funds.

begin delete

24(b) This section is operative January 1, 2008.

end delete
begin insert

25(b) It is the intent of the Legislature to adjust the local match
26requirements for a new construction grant based on a school
27district’s ability to raise local revenue, commencing with the
28proceeds from any bond approved by voters after January 1, 2016.

end insert
29begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 17072.35 of the end insertbegin insertEducation Codeend insertbegin insert is amended
30to read:end insert

31

17072.35.  

begin insert(a)end insertbegin insertend insert A grant for new construction may be used for
32any and all costs necessary to adequately house new pupils in any
33approved project, and those costs maybegin delete onlyend delete includebegin delete theend deletebegin insert only the
34following:end insert

35begin insert(1)end insertbegin insertend insertbegin insertThe end insertcost of design, engineering, testing, inspection, plan
36checking, construction management, site acquisition and
37development, evaluation and response action costs relating to
38hazardous substances at a new or existing schoolsite, demolition,
39construction, acquisition and installation of portable classrooms,
40landscaping, necessary utility costs, utility connections and other
P9    1fees, equipment including telecommunication equipment to
2increase school security, furnishings, and the upgrading of electrical
3systems or the wiring or cabling of classrooms in order to
4accommodate educational technology.begin delete A grant for new construction
5may also be used to acquireend delete

6begin insert(2)end insertbegin insertend insertbegin insertThe costs of acquiring end insertan existing government or privately
7owned building, or a privately financed school building, andbegin delete for
8theend delete
necessary costs of converting the government or privately
9owned building for public school use.begin delete A grant for new construction
10may also be used for theend delete

11begin insert(3)end insertbegin insertend insertbegin insertTheend insertbegin insert end insertcosts 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 high
16performance schools.

begin insert

17(b) Commencing with proceeds from any bond approved by
18voters after January 1, 2016, in addition to the purposes identified
19in subdivision (a), a grant for new construction may be used for
20the construction of any of the following:

end insert
begin insert

21(1) Career technical education facilities.

end insert
begin insert

22(2) Joint use facilities.

end insert
begin insert

23(3) Preschool facilities located at a schoolsite.

end insert
24begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 17072.40 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
25read:end insert

begin insert
26

begin insert17072.40.end insert  

The Office of Public School Construction, in
27consultation with the department, shall recommend to the board
28regulations that will provide school districts with flexibility in
29designing instructional facilities.

end insert
30begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 17073.16 is added to the end insertbegin insertEducation Codeend insertbegin insert, to
31read:end insert

begin insert
32

begin insert17073.16.end insert  

The board may require each school district that
33elects to participate in the modernization program funded by the
34proceeds of any bond approved by voters after January 1, 2016,
35to reestablish baseline eligibility for each schoolsite pursuant to
36regulations adopted by the board.

end insert
37begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 17074.16 of the end insertbegin insertEducation Codeend insertbegin insert is amended
38to read:end insert

39

17074.16.  

(a) The board shall release disbursements to school
40districts with approved applications for modernization, to the extent
P10   1state funds are available for the state’s 60-percent share, and the
2school district has provided its 40-percent local match. Subject to
3the availability of funds, the board shall apportion funds to an
4eligible school district only upon the approval of the project by
5the Department of General Services pursuant to the Field Act, as
6defined in Section 17281, including, but not limited to, a project
7that complies with the Field Act by complying with Section
817280.5, and evidence that the certification by the school district
9that the required 40-percent matching funds from local sources
10have been expended by the district for the project, or have been
11deposited in the county fund or will be expended by the district
12by the time of completion of the project, and evidence that the
13district has entered into a binding contract for the completion of
14that project. If state funds are insufficient to fund all qualifying
15school districts, the board shall fund all qualifying school districts
16in the order in which the application for funding was approved by
17the board.

18(b) This section shall apply only to an application that was filed
19after April 29, 2002.

begin insert

20(c) It is the intent of the Legislature to adjust the local match
21requirements for a modernization grant based on a school district’s
22ability to raise local revenue, commencing with the proceeds from
23any bond approved by voters after January 1, 2016.

end insert
24begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 17074.25 of the end insertbegin insertEducation Codeend insertbegin insert is amended
25to read:end insert

26

17074.25.  

(a) A modernization apportionment may be used
27for an improvement to extend the useful life of, or to enhance the
28physical environment of, the school. The improvement may only
29include the cost of design, engineering, testing, inspection, plan
30checking, construction management, demolition, construction, the
31replacement of portable classrooms, necessary utility costs, utility
32connection and other fees, the purchase and installation of
33air-conditioning equipment and insulation materials and related
34costs, furniture and equipment, including telecommunication
35equipment to increase school security, fire safety improvements,
36playground safety improvements, the identification, assessment,
37or abatement of hazardous asbestos, seismic safety improvements,
38and the upgrading of electrical systems or the wiring or cabling of
39classrooms in order to accommodate educational technology. A
40modernization grant may not be used for costs associated with
P11   1acquisition and development of real property or for routine
2maintenance and repair.

3(b) A modernization apportionment may also be used for the
4cost of designs and materials that promote the efficient use of
5energy and water, the maximum use of natural lighting and indoor
6air quality, the use of recycled materials and materials that emit a
7minimum of toxic substances, the use of acoustics conducive to
8teaching and learning, and other characteristics of
9high-performance schools.

begin insert

10(c) Commencing with proceeds from any bond approved by
11voters after January 1, 2016, in addition to the purposes identified
12in subdivisions (a) and (b), a modernization apportionment may
13be used for any of the following:

end insert
begin insert

14(1) Rehabilitating existing career technical education facilities.

end insert
begin insert

15(2) Seismic retrofits.

end insert
begin insert

16(3) Rehabilitating an existing facility for use by a preschool
17located at an existing schoolsite.

end insert
begin insert

18(d) (1) The Legislature finds and declares that the state has an
19aging and deteriorating school facilities inventory and in certain
20circumstances it would be prudent to replace those facilities rather
21than to expend state and local modernization bond funds.

end insert
begin insert

22(2) The Office of Public School Construction shall provide to
23the board recommendations on the value of allowing school
24districts to replace existing facilities on existing schoolsites under
25certain conditions.

end insert
26

begin deleteSEC. 6.end delete
27begin insertSEC. 14.end insert  

Section 17074.26 of the Education Code is amended
28to read:

29

17074.26.  

The board shall adopt regulations to adjust the
30per-pupil amounts set forth in Section 17074.10 for modernization
31projects for school buildings that are 50 years old or older based
32upon the higher costs associated with modernizing older buildings.

33begin insert

begin insertSEC. 15.end insert  

end insert

begin insertPart 70 (commencing with Section 101100) is added
34to Division 14 of Title 3 of the end insert
begin insertEducation Codeend insertbegin insert, to read:end insert

begin insert

P12   1 

2PART begin insert70.end insert  KINDERGARTEN-UNIVERSITY PUBLIC EDUCATION
3FACILITIES BOND ACT OF ____

4

4 

5Chapter  begin insert1.end insert General
6

 

7

begin insert101100.end insert  

This part shall be known and may be cited as the
8Kindergarten-University Public Education Facilities Bond Act of
9____.

10

begin insert101101.end insert  

The incorporation of, or reference to, any provision
11of California statutory law in this part includes all acts amendatory
12thereof and supplementary thereto.

13

begin insert101102.end insert  

(a) Bonds in the total amount of ____ dollars ($____),
14not including the amount of any refunding bonds issued in
15accordance with Sections 101130, 101139, and 101159, or so
16much thereof as is necessary, may be issued and sold to provide
17a fund to be used for carrying out the purposes expressed in this
18part and to reimburse the General Obligation Bond Expense
19Revolving Fund pursuant to Section 16724.5 of the Government
20Code. The bonds, when sold, shall be and constitute a valid and
21binding obligation of the State of California, and the full faith and
22credit of the State of California is hereby pledged for the punctual
23payment of the principal of, and interest on, the bonds as the
24principal and interest become due and payable.

25(b) Pursuant to this section, the Treasurer shall sell the bonds
26authorized by the State School Building Finance Committee
27established by Section 15909 or the Higher Education Facilities
28Finance Committee established pursuant to Section 67353, as the
29case may be, at any different times necessary to service
30expenditures required by the apportionments.

31 

32Chapter  begin insert2.end insert Kindergarten Through Grade 12
33

33 

34Article begin insert1.end insert  Kindergarten Through Grade 12 School Facilities
35Program Provisions
36

 

37

begin insert101110.end insert  

The proceeds of bonds issued and sold pursuant to
38Article 2 (commencing with Section 101120) shall be deposited in
39the ____ State School Facilities Fund established in the State
P13   1Treasury under subdivision (e) of Section 17070.40 and shall be
2allocated by the State Allocation Board pursuant to this chapter.

3

begin insert101111.end insert  

All moneys deposited in the ____ State School
4Facilities Fund for the purposes of this chapter shall be available
5to provide aid to school districts, county superintendents of schools,
6and county boards of education of the state in accordance with
7the Leroy F. Greene School Facilities Act of 1998 (Chapter 12.5
8(commencing with Section 17070.10) of Part 10 of Division 1 of
9Title 1), as set forth in Section 101112, to provide funds to repay
10any money advanced or loaned to the ____ State School Facilities
11Fund under any act of the Legislature, together with interest
12provided for in that act, and to reimburse the General Obligation
13Bond Expense Revolving Fund pursuant to Section 16724.5 of the
14Government Code.

15

begin insert101112.end insert  

(a) The proceeds from the sale of bonds, issued and
16sold for the purposes of this chapter, shall be allocated in
17accordance with the following schedule:

18(1) The amount of ____ dollars ($____) for new construction
19of school facilities of applicant school districts under Chapter 12.5
20(commencing with Section 17070.10) of Part 10 of Division 1 of
21Title 1.

22(2) The amount of ____ dollars ($____) shall be available for
23providing school facilities to charter schools pursuant to Article
2412 (commencing with Section 17078.52) of Chapter 12.5 of Part
2510 of Division 1 of Title 1.

26(3) The amount of ____ dollars ($____) for the modernization
27 of school facilities pursuant to Chapter 12.5 (commencing with
28Section 17070.10) of Part 10 of Division 1 of Title 1.

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.

P14   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
5(a) may also be utilized to provide new construction grants for
6eligible applicant 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 

11Article begin insert2.end insert  Kindergarten Through Grade 12 School Facilities
12Fiscal Provisions
13

 

14

begin insert101120.end insert  

(a) Of the total amount of bonds authorized to be
15issued and sold pursuant to Chapter 1 (commencing with Section
16101000), bonds in the amount of ____ dollars ($____) not
17including the amount of any refunding bonds issued in accordance
18with Section 101130, or so much thereof as is necessary, may be
19issued and sold to provide a fund to be used for carrying out the
20purposes expressed in this chapter and to reimburse the General
21Obligation Bond Expense Revolving Fund pursuant to Section
2216724.5 of the Government Code. The bonds, when sold, shall be
23and constitute a valid and binding obligation of the State of
24California, and the full faith and credit of the State of California
25is hereby pledged for the punctual payment of the principal of,
26and interest on, the bonds as the principal and interest become
27 due and payable.

28(b) Pursuant to this section, the Treasurer shall sell the bonds
29authorized by the State School Building Finance Committee
30established pursuant to Section 15909 at any different times
31necessary to service expenditures required by the apportionments.

32

begin insert101121.end insert  

The State School Building Finance Committee,
33established by Section 15909 and composed of the Governor, the
34Controller, the Treasurer, the Director of Finance, and the
35Superintendent, or their designated representatives, all of whom
36shall serve thereon without compensation, and a majority of whom
37shall constitute a quorum, is continued in existence for the purpose
38of this chapter. The Treasurer shall serve as chairperson of the
39committee. Two Members of the Senate appointed by the Senate
40Committee on Rules, and two Members of the Assembly appointed
P15   1by the Speaker of the Assembly, shall meet with and provide advice
2to the committee to the extent that the advisory participation is not
3incompatible with their respective positions as Members of the
4Legislature. For the purposes of this chapter, the Members of the
5Legislature shall constitute an interim investigating committee on
6the subject of this chapter and, as that committee, shall have the
7powers granted to, and duties imposed upon, those committees by
8the Joint Rules of the Senate and the Assembly. The Director of
9Finance shall provide assistance to the committee as it may
10require. The Attorney General of the state is the legal adviser of
11the committee.

12

begin insert101122.end insert  

(a) The bonds authorized by this chapter shall be
13prepared, executed, issued, sold, paid, and redeemed as provided
14in the State General Obligation Bond Law (Chapter 4 (commencing
15with Section 16720) of Part 3 of Division 4 of Title 2 of the
16Government Code), and all of the provisions of that law, except
17Section 16727 of the Government Code to the extent that it conflicts
18with this part, apply to the bonds and to this chapter and are hereby
19incorporated into this chapter as though set forth in full within
20this chapter.

21(b) For purposes of the State General Obligation Bond Law,
22the State Allocation Board is designated the “board” for purposes
23of administering the ____ State School Facilities Fund.

24

begin insert101123.end insert  

(a) Upon request of the State Allocation Board, the
25State School Building Finance Committee shall determine whether
26or not it is necessary or desirable to issue bonds authorized
27pursuant to this chapter in order to fund the apportionments and,
28if so, the amount of bonds to be issued and sold. Successive issues
29of bonds may be authorized and sold to fund those apportionments
30progressively, and it is not necessary that all of the bonds
31authorized to be issued be sold at any one time.

32(b) A request of the State Allocation Board pursuant to
33subdivision (a) shall be supported by a statement of the
34apportionments made and to be made for the purposes described
35in Sections 101111 and 101112.

36

begin insert101124.end insert  

There shall be collected each year and in the same
37manner and at the same time as other state revenue is collected,
38in addition to the ordinary revenues of the state, a sum in an
39amount required to pay the principal of, and interest on, the bonds
40each year. It is the duty of all officers charged by law with any
P16   1duty in regard to the collection of the revenue to do and perform
2each and every act that is necessary to collect that additional sum.

3

begin insert101125.end insert  

Notwithstanding Section 13340 of the Government
4Code, there is hereby appropriated from the General Fund in the
5State Treasury, for the purposes of this chapter, an amount that
6will equal the total of the following:

7(a) The sum annually necessary to pay the principal of, and
8interest on, bonds issued and sold pursuant to this chapter, as the
9principal and interest become due and payable.

10(b) The sum necessary to carry out Section 101128, appropriated
11without regard to fiscal years.

12

begin insert101126.end insert  

The State Allocation Board may request the Pooled
13Money Investment Board to make a loan from the Pooled Money
14Investment Account or any other approved form of interim
15financing, in accordance with Section 16312 of the Government
16Code, for the purpose of carrying out this chapter. The amount of
17the request shall not exceed the amount of the unsold bonds that
18the committee, by resolution, has authorized to be sold for the
19purpose of carrying out this chapter. The board shall execute any
20documents required by the Pooled Money Investment Board to
21obtain and repay the loan. Any amounts loaned shall be deposited
22in the fund to be allocated by the board in accordance with this
23chapter.

24

begin insert101127.end insert  

Notwithstanding any other provision of this chapter,
25or of the State General Obligation Bond Law, if the Treasurer
26sells bonds pursuant to this chapter that include a bond counsel
27opinion to the effect that the interest on the bonds is excluded from
28gross income for federal tax purposes, subject to designated
29conditions, the Treasurer may maintain separate accounts for the
30investment of bond proceeds and for the investment earnings on
31those proceeds. The Treasurer may use or direct the use of those
32proceeds or earnings to pay any rebate, penalty, or other payment
33required under federal law or take any other action with respect
34to the investment and use of those bond proceeds required or
35desirable under federal law to maintain the tax-exempt status of
36those bonds and to obtain any other advantage under federal law
37on behalf of the funds of this state.

38

begin insert101128.end insert  

For the purposes of carrying out this chapter, the
39Director of Finance may authorize the withdrawal from the
40General Fund of an amount not to exceed the amount of the unsold
P17   1bonds that have been authorized by the State School Building
2Finance Committee to be sold for the purpose of carrying out this
3chapter. Any amounts withdrawn shall be deposited in the ____
4State School Facilities Fund consistent with this chapter. Any
5money made available under this section shall be returned to the
6General Fund, plus an amount equal to the interest that the money
7would have earned in the Pooled Money Investment Account, from
8proceeds received from the sale of bonds for the purpose of
9carrying out this chapter.

10

begin insert101129.end insert  

All money deposited in the ____ State School Facilities
11Fund that is derived from premium and accrued interest on bonds
12sold shall be reserved in the fund and shall be available for transfer
13to the General Fund as a credit to expenditures for bond interest.

14

begin insert101130.end insert  

The bonds may be refunded in accordance with Article
156 (commencing with Section 16780) of Chapter 4 of Part 3 of
16Division 4 of Title 2 of the Government Code, which is a part of
17the State General Obligation Bond Law. Approval by the voters
18of the state for the issuance of the bonds described in this chapter
19includes the approval of the issuance of any bonds issued to refund
20any bonds originally issued under this chapter or any previously
21issued refunding bonds.

22

begin insert101131.end insert  

The Legislature hereby finds and declares that,
23inasmuch as the proceeds from the sale of bonds authorized by
24this chapter are not “proceeds of taxes” as that term is used in
25Article XIII B of the California Constitution, the disbursement of
26these proceeds is not subject to the limitations imposed by that
27article.

28 

29Chapter  begin insert3.end insert California Community College Facilities
30

30 

31Article begin insert1.end insert  General
32

 

33

begin insert101132.end insert  

(a) The ____ California Community College Capital
34Outlay Bond Fund is hereby established in the State Treasury for
35deposit of funds from the proceeds of bonds issued and sold for
36the purposes of this chapter.

37(b) The Higher Education Facilities Finance Committee
38established pursuant to Section 67353 is hereby authorized to
39create a debt or debts, liability or liabilities, of the State of
P18   1California pursuant to this chapter for the purpose of providing
2funds to aid the California Community Colleges.

3 

4Article begin insert2.end insert  California Community College Program Provisions
5

 

6

begin insert101133.end insert  

(a) From the proceeds of bonds issued and sold
7pursuant to Article 3 (commencing with Section 101134), the sum
8of ____ dollars ($____) shall be deposited in the ____ California
9Community College Capital Outlay Bond Fund for the purposes
10of this article. When appropriated, these funds shall be available
11for expenditure for the purposes of this article.

12(b) The purposes of this article include assisting in meeting the
13capital outlay financing needs of the California Community
14Colleges.

15(c) Proceeds from the sale of bonds issued and sold for the
16purposes of this article may be used to fund construction on
17existing campuses, including the construction of buildings and the
18acquisition of related fixtures, construction of facilities that may
19be used by more than one segment of public higher education
20(intersegmental), the renovation and reconstruction of facilities,
21site acquisition, the equipping of new, renovated, or reconstructed
22facilities, which equipment shall have an average useful life of 10
23years; and to provide funds for the payment of preconstruction
24costs, including, but not limited to, preliminary plans and working
25drawings for facilities of the California Community Colleges.

26 

27Article begin insert3.end insert  California Community College Fiscal Provisions
28

 

29

begin insert101134.end insert  

(a) Of the total amount of bonds authorized to be
30issued and sold pursuant to Chapter 1 (commencing with Section
31101100), bonds in the total amount of ____ dollars ($____), not
32including the amount of any refunding bonds issued in accordance
33with Section 101139, 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,
P19   1and interest on, the bonds as the principal and interest become
2due and payable.

3(b) It is the intent of the Legislature that the California
4Community Colleges annually consider, as part of their annual
5capital outlay planning process, the inclusion of facilities that may
6be used by more than one segment of public higher education
7(intersegmental), and, that on or before May 15 of each year, those
8entities report their findings to the budget committees of each
9house of the Legislature.

10(c) Pursuant to this section, the Treasurer shall sell the bonds
11authorized by the Higher Education Facilities Finance Committee
12established pursuant to Section 67353 at any different times
13necessary to service expenditures required by the apportionments.

14

begin insert101134.5.end insert  

(a) The bonds authorized by this chapter shall be
15prepared, executed, issued, sold, paid, and redeemed as provided
16in the State General Obligation Bond Law (Chapter 4 (commencing
17with Section 16720) of Part 3 of Division 4 of Title 2 of the
18Government Code), and all of the provisions of that law, except
19Section 16727 of the Government Code to the extent that it conflicts
20with this part, apply to the bonds and to this chapter and are hereby
21incorporated into this chapter as though set forth in full within
22this chapter.

23(b) For the purposes of the State General Obligation Bond Law,
24each state agency administering an appropriation of the ____
25Community College Capital Outlay Bond Fund is designated as
26the “board” for projects funded pursuant to this chapter.

27(c) The proceeds of the bonds issued and sold pursuant to this
28chapter shall be available for the purpose of funding aid to the
29California Community Colleges for the construction on existing
30or new campuses, and their respective off-campus centers and
31joint use and intersegmental facilities, as set forth in this chapter.

32

begin insert101135.end insert  

The Higher Education Facilities Finance Committee
33established pursuant to Section 67353 shall authorize the issuance
34of bonds under this chapter only to the extent necessary to fund
35the apportionments for the purposes described in this chapter that
36are expressly authorized by the Legislature in the annual Budget
37Act. Pursuant to that legislative direction, the committee shall
38determine whether or not it is necessary or desirable to issue bonds
39authorized pursuant to this chapter in order to carry out the
40purposes described in this chapter and, if so, the amount of bonds
P20   1to be issued and sold. Successive issues of bonds may be authorized
2and sold to carry out those actions progressively, and it is not
3necessary that all of the bonds authorized to be issued be sold at
4any one time.

5

begin insert101135.5.end insert  

There shall be collected each year and in the same
6manner and at the same time as other state revenue is collected,
7in addition to the ordinary revenues of the state, a sum in an
8amount required to pay the principal of, and interest on, the bonds
9each year. It is the duty of all officers charged by law with any
10duty in regard to the collection of the revenue to do and perform
11each and every act which is necessary to collect that additional
12sum.

13

begin insert101136.end insert  

Notwithstanding Section 13340 of the Government
14Code, there is hereby appropriated from the General Fund in the
15State Treasury, for the purposes of this chapter, an amount that
16will equal the total of the following:

17(a) The sum annually necessary to pay the principal of, and
18interest on, bonds issued and sold pursuant to this chapter, as the
19principal and interest become due and payable.

20(b) The sum necessary to carry out Section 101137.5,
21appropriated without regard to fiscal years.

22

begin insert101136.5.end insert  

The board, as defined in subdivision (b) of Section
23101134.5, may request the Pooled Money Investment Board to
24make a loan from the Pooled Money Investment Account or any
25other approved form of interim financing, in accordance with
26Section 16312 of the Government Code, for the purpose of carrying
27out this chapter. The amount of the request shall not exceed the
28amount of the unsold bonds that the committee, by resolution, has
29authorized to be sold for the purpose of carrying out this chapter.
30The board, as defined in subdivision (b) of Section 101134.5, shall
31execute any documents required by the Pooled Money Investment
32Board to obtain and repay the loan. Any amounts loaned shall be
33deposited in the fund to be allocated by the board in accordance
34with this chapter.

35

begin insert101137.end insert  

Notwithstanding any other provision of this chapter,
36or of the State General Obligation Bond Law, if the Treasurer
37sells bonds pursuant to this chapter that include a bond counsel
38opinion to the effect that the interest on the bonds is excluded from
39gross income for federal tax purposes, subject to designated
40conditions, the Treasurer may maintain separate accounts for the
P21   1investment of bond proceeds and for the investment earnings on
2those proceeds. The Treasurer may use or direct the use of those
3proceeds or earnings to pay any rebate, penalty, or other payment
4required under federal law or take any other action with respect
5to the investment and use of those bond proceeds required or
6desirable under federal law to maintain the tax-exempt status of
7those bonds and to obtain any other advantage under federal law
8on behalf of the funds of this state.

9

begin insert101137.5.end insert  

(a) For the purposes of carrying out this chapter,
10the Director of Finance may authorize the withdrawal from the
11General Fund of an amount not to exceed the amount of the unsold
12bonds that have been authorized by the Higher Education Facilities
13Finance Committee to be sold for the purpose of carrying out this
14chapter. Any amounts withdrawn shall be deposited in the ____
15California Community College Capital Outlay Bond Fund
16consistent with this chapter. Any money made available under this
17section shall be returned to the General Fund, plus an amount
18equal to the interest that the money would have earned in the
19Pooled Money Investment Account, from proceeds received from
20the sale of bonds for the purpose of carrying out this chapter.

21(b) Any request forwarded to the Legislature and the Department
22of Finance for funds from this bond issue for expenditure for the
23purposes described in this chapter by the California Community
24Colleges shall be accompanied by the five-year capital outlay plan
25that reflects the needs and priorities of the community college
26system and is prioritized on a statewide basis. Requests shall
27include a schedule that prioritizes the seismic retrofitting needed
28to significantly reduce, in the judgment of the particular college,
29seismic hazards in buildings identified as high priority by the
30college.

31

begin insert101138.end insert  

All money deposited in the ____ California Community
32College Capital Outlay Bond Fund that is derived from premium
33and accrued interest on bonds sold shall be reserved in the fund
34and shall be available for transfer to the General Fund as a credit
35to expenditures for bond interest.

36

begin insert101139.end insert  

The bonds may be refunded in accordance with Article
376 (commencing with Section 16780) of Chapter 4 of Part 3 of
38Division 4 of Title 2 of the Government Code, which is a part of
39the State General Obligation Bond Law. Approval by the voters
40of the state for the issuance of the bonds described in this chapter
P22   1includes the approval of the issuance of any bonds issued to refund
2any bonds originally issued under this chapter or any previously
3issued refunding bonds.

4

begin insert101139.5.end insert  

The Legislature hereby finds and declares that,
5inasmuch as the proceeds from the sale of bonds authorized by
6this chapter are not “proceeds of taxes” as that term is used in
7Article XIII B of the California Constitution, the disbursement of
8these proceeds is not subject to the limitations imposed by that
9article.

10 

11Chapter  begin insert4.end insert University Facilities
12

12 

13Article begin insert1.end insert  General
14

 

15

begin insert101140.end insert  

(a) The system of public universities in this state
16includes the University of California, the Hastings College of the
17Law, and the California State University, and their respective
18off-campus centers.

19(b) The ____ University Capital Outlay Bond Fund is hereby
20established in the State Treasury for deposit of funds from the
21proceeds of bonds issued and sold for the purposes of this chapter.

22(c) The Higher Education Facilities Finance Committee
23established pursuant to Section 67353 is hereby authorized to
24create a debt or debts, liability or liabilities, of the State of
25California pursuant to this chapter for the purpose of providing
26funds to aid the University of California, the Hastings College of
27the Law, and the California State University.

28 

29Article begin insert2.end insert  Program Provisions Applicable to the University of
30California and the Hastings College of Law
31

 

32

begin insert101141.end insert  

(a) From the proceeds of bonds issued and sold
33pursuant to Article 4 (commencing with Section 101150), the sum
34of ____ dollars ($____) shall be deposited in the ____ University
35Capital Outlay Bond Fund for the purposes of this article. When
36appropriated, these funds shall be available for expenditure for
37the purposes of this article.

38(b) The purposes of this article include assisting in meeting the
39capital outlay financing needs of the University of California and
40the Hastings College of the Law.

P23   1(c) Proceeds from the sale of bonds issued and sold for the
2purposes of this article may be used to fund construction on
3 existing campuses, including the construction of buildings and the
4acquisition of related fixtures, construction of facilities that may
5be used by more than one segment of public higher education
6(intersegmental), the renovation and reconstruction of facilities,
7site acquisition, the equipping of new, renovated, or reconstructed
8facilities, which equipment shall have an average useful life of 10
9years; and to provide funds for the payment of preconstruction
10costs, including, but not limited to, preliminary plans and working
11drawings for facilities of the University of California and the
12Hastings College of the Law.

13 

14Article begin insert3.end insert  Program Provisions Applicable to the California
15State University
16

 

17

begin insert101142.end insert  

(a) From the proceeds of bonds issued and sold
18pursuant to Article 4 (commencing with Section 101150), the sum
19of ____ dollars ($____) shall be deposited in the ____ University
20Capital Outlay Bond Fund for the purposes of this article. When
21appropriated, these funds shall be available for expenditure for
22the purposes of this article.

23(b) The purposes of this article include assisting in meeting the
24capital outlay financing needs of the California State University.

25(c) Proceeds from the sale of bonds issued and sold for the
26purposes of this article may be used to fund construction on
27existing campuses, including the construction of buildings and the
28acquisition of related fixtures, construction of facilities that may
29be used by more than one segment of public higher education
30(intersegmental), the renovation and reconstruction of facilities,
31site acquisition, the equipping of new, renovated, or reconstructed
32facilities, which equipment shall have an average useful life of 10
33years; and to provide funds for the payment of preconstruction
34costs, including, but not limited to, preliminary plans and working
35drawings for facilities of the California State University.

36 

37Article begin insert4.end insert  University Fiscal Provisions
38

 

39

begin insert101150.end insert  

(a) Of the total amount of bonds authorized to be
40issued and sold pursuant to Chapter 1 (commencing with Section
P24   1101100), bonds in the amount of ____ dollars ($____), not
2including the amount of any refunding bonds issued in accordance
3with Section 101159, or so much thereof as is necessary, may be
4issued and sold to provide a fund to be used for carrying out the
5purposes expressed in this chapter and to reimburse the General
6Obligation Bond Expense Revolving Fund pursuant to Section
716724.5 of the Government Code. The bonds, when sold, shall be
8and constitute a valid and binding obligation of the State of
9California, and the full faith and credit of the State of California
10is hereby pledged for the punctual payment of the principal of,
11and interest on, the bonds as the principal and interest become
12 due and payable.

13(b) It is the intent of the Legislature that the University of
14California and the California State University annually consider,
15as part of their annual capital outlay planning process, the
16inclusion of facilities that may be used by more than one segment
17of public higher education (intersegmental), and, that on or before
18May 15 of each year, those entities report their findings to the
19budget committees of each house of the Legislature.

20(c) Pursuant to this section, the Treasurer shall sell the bonds
21authorized by the Higher Education Facilities Finance Committee
22established pursuant to Section 67353 at any different times
23necessary to service expenditures required by the apportionments.

24

begin insert101151.end insert  

(a) The bonds authorized by this chapter shall be
25prepared, executed, issued, sold, paid, and redeemed as provided
26in the State General Obligation Bond Law (Chapter 4 (commencing
27with Section 16720) of Part 3 of Division 4 of Title 2 of the
28Government Code), and all of the provisions of that law, except
29Section 16727 of the Government Code to the extent that it conflicts
30with this part, apply to the bonds and to this chapter and are hereby
31incorporated into this chapter as though set forth in full within
32this chapter.

33(b) For the purposes of the State General Obligation Bond Law,
34each state agency administering an appropriation of the ____
35University Capital Outlay Bond Fund is designated as the “board”
36for projects funded pursuant to this chapter.

37(c) The proceeds of the bonds issued and sold pursuant to this
38chapter shall be available for the purpose of funding aid to the
39University of California, the Hastings College of the Law, and the
40California State University, for the construction on existing or
P25   1new campuses, and their respective off-campus centers and joint
2use and intersegmental facilities, as set forth in this chapter.

3

begin insert101152.end insert  

The Higher Education Facilities Finance Committee
4established pursuant to Section 67353 shall authorize the issuance
5of bonds under this chapter only to the extent necessary to fund
6the apportionments for the purposes described in this chapter that
7are expressly authorized by the Legislature in the annual Budget
8Act. Pursuant to that legislative direction, the committee shall
9determine whether or not it is necessary or desirable to issue bonds
10authorized pursuant to this chapter in order to carry out the
11purposes described in this chapter and, if so, the amount of bonds
12to be issued and sold. Successive issues of bonds may be authorized
13and sold to carry out those actions progressively, and it is not
14necessary that all of the bonds authorized to be issued be sold at
15any one time.

16

begin insert101153.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 which is necessary to collect that additional
23sum.

24

begin insert101154.end insert  

Notwithstanding Section 13340 of the Government
25Code, there is hereby appropriated from the General Fund in the
26State Treasury, for the purposes of this chapter, an amount that
27will equal the total of the following:

28(a) The sum annually necessary to pay the principal of, and
29interest on, bonds issued and sold pursuant to this chapter, as the
30principal and interest become due and payable.

31(b) The sum necessary to carry out Section 101157, appropriated
32without regard to fiscal years.

33

begin insert101155.end insert  

The board, as defined in subdivision (b) of Section
34101151, may request the Pooled Money Investment Board to make
35a loan from the Pooled Money Investment Account or any other
36approved form of interim financing, in accordance with Section
3716312 of the Government Code, for the purpose of carrying out
38this chapter. The amount of the request shall not exceed the amount
39of the unsold bonds that the committee, by resolution, has
40authorized to be sold for the purpose of carrying out this chapter.
P26   1The board, as defined in subdivision (b) of Section 101151, shall
2execute any documents required by the Pooled Money Investment
3Board to obtain and repay the loan. Any amounts loaned shall be
4deposited in the fund to be allocated by the board in accordance
5with this chapter.

6

begin insert101156.end insert  

Notwithstanding any other provision of this chapter,
7or of the State General Obligation Bond Law, if the Treasurer
8sells bonds pursuant to this chapter that include a bond counsel
9opinion to the effect that the interest on the bonds is excluded from
10gross income for federal tax purposes, subject to designated
11conditions, the Treasurer may maintain separate accounts for the
12investment of bond proceeds and for the investment earnings on
13those proceeds. The Treasurer may use or direct the use of those
14proceeds or earnings to pay any rebate, penalty, or other payment
15required under federal law or take any other action with respect
16to the investment and use of those bond proceeds required or
17desirable under federal law to maintain the tax-exempt status of
18those bonds and to obtain any other advantage under federal law
19on behalf of the funds of this state.

20

begin insert101157.end insert  

(a) For the purposes of carrying out this chapter, the
21Director of Finance may authorize the withdrawal from the
22General Fund of an amount not to exceed the amount of the unsold
23bonds that have been authorized by the Higher Education Facilities
24Finance Committee to be sold for the purpose of carrying out this
25chapter. Any amounts withdrawn shall be deposited in the ____
26University Capital Outlay Bond Fund consistent with this chapter.
27Any money made available under this section shall be returned to
28the General Fund, plus an amount equal to the interest that the
29money would have earned in the Pooled Money Investment
30Account, from proceeds received from the sale of bonds for the
31purpose of carrying out this chapter.

32(b) Any request forwarded to the Legislature and the Department
33of Finance for funds from this bond issue for expenditure for the
34purposes described in this chapter by the University of California,
35the Hastings College of the Law, or the California State University
36shall be accompanied by the five-year capital outlay plan. Requests
37forwarded by a university or college shall include a schedule that
38prioritizes the seismic retrofitting needed to significantly reduce,
39in the judgment of the particular university or college, seismic
P27   1hazards in buildings identified as high priority by the university
2or college.

3

begin insert101158.end insert  

All money deposited in the ____ University Capital
4Outlay Bond Fund that is derived from premium and accrued
5interest on bonds sold shall be reserved in the fund and shall be
6available for transfer to the General Fund as a credit to
7expenditures for bond interest.

8

begin insert101159.end insert  

The bonds may be refunded in accordance with Article
96 (commencing with Section 16780) of Chapter 4 of Part 3 of
10Division 4 of Title 2 of the Government Code, which is a part of
11the State General Obligation Bond Law. Approval by the voters
12of the state for the issuance of the bonds described in this chapter
13includes the approval of the issuance of any bonds issued to refund
14any bonds originally issued under this chapter or any previously
15issued refunding bonds.

16

begin insert101160.end insert  

The Legislature hereby finds and declares that,
17inasmuch as the proceeds from the sale of bonds authorized by
18this chapter are not “proceeds of taxes” as that term is used in
19Article XIII B of the California Constitution, the disbursement of
20these proceeds is not subject to the limitations imposed by that
21article.

end insert
22begin insert

begin insertSEC. 16.end insert  

end insert

begin insertThe Secretary of State shall submit Section 15 of this
23act to the voters at the ____ statewide general election.end insert

24begin insert

begin insertSEC. 17.end insert  

end insert

begin insertThe provisions of this act are severable. If any
25provision of this act or its application is held invalid, that invalidity
26shall not affect other provisions or applications that can be given
27effect without the invalid provision or application. end insert

28begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 1 and Sections 3 to 15, inclusive, of this act
29shall become operative only if the voters approve the
30Kindergarten-University Public Education Facilities Bond Act of
31____, as set forth in Section 15 of this act. end insert



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