BILL NUMBER: AB 1198	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 26, 2015

INTRODUCED BY   Assembly Member Dababneh

                        FEBRUARY 27, 2015

   An act  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, 
relating to school  facilities.   facilities,
and making an appropriation therefor. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1198, as amended, Dababneh. School facilities: California
School Finance Authority:  California  Credit Enhancement
Program. 
   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.  
   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.  
   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.  
   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. 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee:  no   yes  .
State-mandated local program: no.


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

   SECTION 1.    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   Education Code   , to read:
 

      Article 1.  General Provisions


   SEC. 2.    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   Education Code   , to read: 


      Article 2.  California School Finance Authority


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

      Article 3.  California Credit Enhancement Program


   17200.  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.
   17201.  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.
   17202.  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.
   17203.  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.  
  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.