BILL NUMBER: AB 1474 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Chávez
FEBRUARY 27, 2015
An act to add Part 53 (commencing with Section 88700) to Division
7 of Title 3 of the Education Code, relating to financing community
college career technical education facilities and equipment, 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 funds.
LEGISLATIVE COUNSEL'S DIGEST
AB 1474, as introduced, Chávez. Community colleges: Community
College Career Technical Education Bond Act.
Existing law establishes the California Community Colleges, under
the administration of the Board of Governors of the California
Community Colleges, as one of the segments of public postsecondary
education in this state. Existing law establishes community college
districts throughout the state, and authorizes them to operate
campuses and provide instruction to students.
This bill would enact the Community College Career Technical
Education Bond Act, which, if adopted by the voters at the November
8, 2016, statewide general election, would authorize the issuance of
bonds in amount of $500,000,000 pursuant to the State General
Obligation Bond Law to finance a community college career technical
education bond program.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Part 53 (commencing with Section 87700) is added to
Division 7 of Title 3 of the Education Code, to read:
PART 53. Community College Career Technical Education Bond Act
Article 1. Title
87700. This part shall be known, and may be cited, as the
Community College Career Technical Education Bond Act.
Article 2. Definitions
87701. As used in this part, the following terms have the
following meanings:
(a) "Committee" means the Community College Career Technical
Education Bond Act Finance Committee created pursuant to Section
87721.
(b) "Fund" means the Community College Career Technical Education
Bond Fund created pursuant to Section 87705.
Article 3. Community College Career Technical Education Bond
Fund
87705. The proceeds of bonds issued and sold pursuant to this
part shall be deposited in the Community College Career Technical
Education Bond Fund, which is hereby created in the State Treasury.
87706. The Chancellor of the California Community Colleges may
issue grants from the fund for the limited purpose of buying and
maintaining career technical education facilities and equipment to
regions in the state that do both of the following:
(a) Establish a need for career technical education equipment and
facilities in order to meet a local employment need.
(b) Within the region, establish community colleges that
specialize in various types of career technical education, including,
but not limited to, health-related industries, automotive and
transportation industries, information technology industries,
entertainment and culinary arts, and performing art technology.
87707. Nothing in this article shall prevent a community college
from charging tuition and fees commensurate with the costs of
providing career technical education. Moneys from the fund shall
supplement and not supplant moneys received from charging tuition and
fees.
Article 4. Fiscal Provisions
87720. (a) Bonds in the total amount of five hundred million
dollars ($500,000,000), or so much thereof as is necessary, not
including the amount of any refunding bonds issued in accordance with
Section 87726 may be issued and sold to provide a fund to be used
for carrying out the purposes expressed in this part and to reimburse
the General Obligation Bond Expense Revolving Fund pursuant to
Section 16724.5 of the Government Code. The bonds, when sold, shall
be and constitute a valid and binding obligation of the State of
California, and the full faith and credit of the State of California
is hereby pledged for the punctual payment of both principal of, and
interest on, the bonds as the principal and interest become due and
payable.
(b) The Treasurer shall sell the bonds authorized by the committee
pursuant to this section. The bonds shall be sold upon the terms and
conditions specified in a resolution to be adopted by the committee
pursuant to Section 16731 of the Government Code.
87720.5. The bonds authorized by this part shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code),
and all of the provisions of that law apply to the bonds and to this
part and are hereby incorporated in this part as though set forth in
full in this part, except subdivisions (a) and (b) of Section 16727
of the Government Code.
87721. (a) Solely for the purpose of authorizing the issuance and
sale pursuant to the State General Obligation Bond Law (Chapter 4
(commencing with Section 16720) of Part 3 of Division 4 of Title 2 of
the Government Code) of the bonds authorized by this part, the
Community College Career Technical Education Bond Act Finance
Committee is hereby created. For purposes of this part, the Community
College Career Technical Education Bond Act Finance Committee is
"the committee" as that term is used in the State General Obligation
Bond Law.
(b) The committee consists of the Governor, the Controller, the
Treasurer, the Director of Finance, and the Chancellor of the
California Community Colleges. Notwithstanding any other provision of
law, any member may designate a representative to act as that member
in his or her place for all purposes, as though the member were
personally present.
(c) The Chancellor of the California Community Colleges shall
serve as chairperson of the committee.
(d) A majority of the committee may act for the committee.
87721.5. The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
part in order to carry out the actions specified in this part and, if
so, the amount of bonds to be issued and sold. Successive issues of
bonds may be authorized and sold to carry out those actions
progressively, and it is not necessary that all of the bonds
authorized to be issued be sold at any one time.
87722. For purposes of the State General Obligation Bond Law,
"board," as defined in Section 16722 of the Government Code, means
the Chancellor of the California Community Colleges.
87722.5. There shall be collected each year and in the same
manner and at the same time as other state revenue is collected, in
addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year. It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act that is necessary to collect that additional sum.
87723. Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this part, an amount that will equal
the total of the following:
(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this part, as the
principal and interest become due and payable.
(b) The sum that is necessary to carry out the provisions of
Section 87724.5, appropriated without regard to fiscal years.
87723.5. The board may request the Pooled Money Investment Board
to make a loan from the Pooled Money Investment Account in accordance
with Section 16312 of the Government Code for the purpose of
carrying out this part less any amount withdrawn pursuant to Section
87724.5. The amount of the request shall not exceed the amount of the
unsold bonds that the committee has, by resolution, authorized to be
sold for the purpose of carrying out this part. The board shall
execute those documents required by the Pooled Money Investment Board
to obtain and repay the loan. Any amounts loaned shall be deposited
in the fund to be allocated in accordance with this part.
87724. Notwithstanding any other provision of this part, or of
the State General Obligation Bond Law, if the Treasurer sells bonds
that include a bond counsel opinion to the effect that the interest
on the bonds is excluded from gross income for federal tax purposes
under designated conditions or is otherwise entitled to any federal
tax advantage, the Treasurer may maintain separate accounts for the
bond proceeds invested and for the investment earnings on those
proceeds, and may use or direct the use of those proceeds or earnings
to pay any rebate, penalty, or other payment required under federal
law or take any other action with respect to the investment and use
of those bond proceeds, as may be required or desirable under federal
law in order to maintain the tax-exempt status of those bonds and to
obtain any other advantage under federal law on behalf of the funds
of this state.
87724.5. For the purposes of carrying out this part, the Director
of Finance may authorize the withdrawal from the General Fund of an
amount or amounts not to exceed the amount of the unsold bonds that
have been authorized by the committee to be sold for the purpose of
carrying out this part less any amount borrowed pursuant to Section
87723.5. Any amounts withdrawn shall be deposited in the fund. Any
money made available under this section shall be returned to the
General Fund, with interest at the rate earned by the money in the
Pooled Money Investment Account, from proceeds received from the sale
of bonds for the purpose of carrying out this part.
87725. All money deposited in the fund that is derived from
premium and accrued interest on bonds sold pursuant to this part
shall be reserved in the fund and shall be available for transfer to
the General Fund as a credit to expenditures for bond interest,
except that amounts derived from premium may be reserved and used to
pay the cost of bond issuance prior to any transfer to the General
Fund.
87725.5. Pursuant to Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2 of the Government Code, the cost of
bond issuance shall be paid out of the bond proceeds, including
premium, if any. To the extent the cost of bond issuance is not paid
from premiums received from the sale of bonds, these costs shall be
shared proportionately by each program funded through this part by
the applicable bond sale.
87726. The bonds issued and sold pursuant to this part may be
refunded in accordance with Article 6 (commencing with Section 16780)
of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government
Code, which is a part of the State General Obligation Bond Law.
Approval by the voters of the state for the issuance of the bonds
under this part shall include approval of the issuance of any bonds
issued to refund any bonds originally issued under this part or any
previously issued refunding bonds.
87726.5. The proceeds from the sale of bonds authorized by this
part are not "proceeds of taxes" as that term is used in Article XIII
B and Section 8 of Article XVI of the California Constitution, and
the disbursement of these proceeds is not subject to the limitations
imposed by Article XIII B of the California Constitution.
SEC. 2. Section 1 of this act shall take effect upon the approval
by the voters of the Community College Career Technical Education
Bond Act, as set forth in that section, which shall be submitted to
the voters at the November 8, 2016, statewide general election.