Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1198

Introduced by Assembly Member Dababneh

February 27, 2015

An act begin insert to add the headings of Article 1 (commencing with Section 17170) and Article 2 (commencing with Section 17172) to, and to add Article 3 (commencing with Section 17200) to, Chapter 18 of Part 10 of Division 1 of Title 1 of the Education Code, end insert relating to school begin delete facilities. end delete begin insert facilities, and making an appropriation therefor. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1198, as amended, Dababneh. School facilities: California School Finance Authority: begin insert California end insert Credit Enhancement Program.

begin insert

Existing law, the California School Finance Authority Act, establishes the California School Finance Authority and authorizes it to administer the continuously appropriated California School Finance Authority Fund for the purpose of, among other things, assisting school districts and community college districts by providing financing for working capital and capital improvements. Existing law authorizes the authority to divide the fund into separate accounts.

end insert begin insert

This bill would create within the authority the California Credit Enhancement Program to provide lower cost alternatives for public school facilities financing through a leveraged public-private partnership program. The bill would authorize the authority to leverage its funding for the California Credit Enhancement Program, as specified. The bill would create the California Credit Enhancement Program Advisory Board to be appointed by the authority and to be made up of specified subject matter experts. The bill would create the California Credit Enhancement Account within the California School Finance Authority Fund, as specified. By authorizing money in the California School Finance Authority Fund to be used for a new purpose, the bill would make an appropriation.

end insert begin delete

Existing law authorizes the California School Finance Authority to, among other things, determine the location and character of any project to be financed or refinanced under the California School Finance Authority Act.

end delete begin delete

This bill would state the intent of the Legislature to enact legislation that would establish the Credit Enhancement Program within the California School Finance Authority for purposes of providing lower cost alternatives for school facility financing through a leveraged public-private partnership program.

end delete

Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert The heading of Article 1 (commencing with
Section 17170) is added to Chapter 18 of Part 10 of Division 1 of
Title 1 of the end insert begin insert Education Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 1. end insert   General Provisions

 

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert The heading of Article 2 (commencing with Section
17172) is added to Chapter 18 of Part 10 of Division 1 of Title 1
of the end insert begin insert Education Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 2. end insert   California School Finance Authority

 

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Article 3 (commencing with Section 17200) is added
to Chapter 18 of Part 10 of Division 1 of Title 1 of the end insert begin insert Education
Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 3. end insert   California Credit Enhancement Program

 

begin insert 17200. end insert   

There is hereby created the California Credit
Enhancement Program within the authority to provide lower cost
alternatives for public school facilities financing through a
leveraged public-private partnership program.

begin insert 17201. end insert   

Notwithstanding Section 17182, in addition to the
powers authorized by this chapter, the authority may leverage its
funding for the California Credit Enhancement Program in such
a way that the amount of credit insurance provided pursuant to
the California Credit Enhancement Program exceeds the amount
of funds on deposit in the California Credit Enhancement Account
within the California School Finance Authority Fund, which
account is created pursuant to Section 17203.

begin insert 17202. end insert   

There is hereby created the California Credit
Enhancement Program Advisory Board, which shall be appointed
by the authority and shall be made up of subject matter experts,
including, but not limited to, in the fields of municipal bond
insurance, municipal finance, and charter school law to advise
the authority on the creation and administration of the California
Credit Enhancement Program.

begin insert 17203. end insert   

There is hereby created the California Credit
Enhancement Account within the California School Finance
Authority Fund, established pursuant to Section 17181. The
authority shall deposit funds for the California Credit Enhancement
Program in the California Credit Enhancement Account, and, in
addition to the funds authorized to be collected pursuant to Section
17181, may deposit fees collected in accordance with this chapter
in the California Credit Enhancement Account. The authority may
designate and hold separately one or more subaccounts within the
California Credit Enhancement Account.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact
legislation that would establish the Credit Enhancement Program
within the California School Finance Authority for purposes of
providing lower cost alternatives for school facility financing
through a leveraged public-private partnership program.

end delete