California Legislature—2015–16 Regular Session

Assembly BillNo. 2116


Introduced by Assembly Member Gallagher

(Coauthors: Assembly Members Brough and Harper)

(Coauthor: Senator Nielsen)

February 17, 2016


An act to amend Sections 15100, 15278, and 15284 of the Education Code, relating to school bonds.

LEGISLATIVE COUNSEL’S DIGEST

AB 2116, as introduced, Gallagher. School bonds: citizens’ oversight committees: school bond waste prevention actions.

(1) Existing law authorizes the governing board of any school district or community college district to order an election and submit to the electors of the district the question whether the bonds of the district should be issued and sold for the purpose of raising money for specified purposes, including, among other things, the supplying of school buildings and grounds with furniture, equipment, or necessary apparatus of a permanent nature.

This bill would require the governing board of a school district to obtain reasonable and informed projections of assessed property valuations from an independent third party not associated with the bond measure before placing a bond measure on a ballot.

(2) Existing law requires the governing board of a school district or community college district to establish and appoint members to an independent citizens’ oversight committee, as specified, if a bond measure authorized pursuant to certain provisions of the California Constitution is approved by 55% of the voters. Existing law requires the citizens’ oversight committee to convene to at least ensure the bond revenues are expended only for specified purposes and not used for any teacher or administrative salaries or other school operating expenses.

This bill would additionally require a citizens’ oversight committee that is established by the governing board of a school district to annually review the school district’s arrangements for issuing and repaying its bonds.

(3) Existing law authorizes an action to obtain an order restraining and preventing any expenditure of funds received by a school district or community college district through the sale of bonds described above against any officer, agent, or other person acting on behalf of, that school district or community college district, by citizens who are or were liable to pay an ad valorem tax on real property within the school or community college district if it appears by the complaint or affidavits that certain conditions are present, including, among others, that the governing board of a school district or community college district has willfully failed to appoint the citizens’ oversight committee. Existing law defines these actions as a “School Bond Waste Prevention Action.”

This bill would, in the case of a school district only, authorize a county auditor with jurisdiction over the school district to also bring a School Bond Waste Prevention Action.

(4) This bill also would delete obsolete references and make other nonsubstantive changes.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

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

P2    1

SECTION 1.  

Section 15100 of the Education Code is amended
2to read:

3

15100.  

begin insert(a)end insertbegin insertend insert Except as otherwise provided by law, the governing
4board of any school district or community college district may,
5when in its judgment it is advisable, and shall, upon a petition of
6the majority of the qualified electors residing in the school district
7or community college district, order an election and submit to the
8electors of thebegin delete districtend deletebegin insert school district or community college district,
9as applicable,end insert
the question whether the bonds of thebegin insert school district
10or community collegeend insert
district shall be issued and sold for the
11purpose of raising money for the following purposes:

begin delete

12(a)

end delete

13begin insert(1)end insert The purchasing of school lots.

begin delete

P3    1(b)

end delete

2begin insert(2)end insert The building or purchasing of school buildings.

begin delete

3(c)

end delete

4begin insert(3)end insert The making of alterations or additions to the school building
5or buildings other than as may be necessary for current
6maintenance, operation, or repairs.

begin delete

7(d)

end delete

8begin insert(4)end insert The repairing, restoring, or rebuilding of any school building
9damaged, injured, or destroyed by fire or other public calamity.

begin delete

10(e)

end delete

11begin insert(5)end insert The supplying of school buildings and grounds with
12furniture, equipment, or necessary apparatus of a permanent nature.

begin delete

13(f)

end delete

14begin insert(6)end insert The permanent improvement of the school grounds.

begin delete

15(g)

end delete

16begin insert(7)end insert The refunding of any outstanding valid indebtedness of the
17begin insert school district or community collegeend insert district, evidenced by bonds,
18or of state school building aid loans.

begin delete

19(h)

end delete

20begin insert(8)end insert The carrying out of the projects or purposes authorized in
21Sectionbegin delete 17577 or 81613.end deletebegin insert 17577.end insert

begin delete

22(i)

end delete

23begin insert(9)end insert The purchase of schoolbuses the useful life of which is at
24least 20 years.

begin delete

25(j)

end delete

26begin insert(10)end insert The demolition or razing of any school building with the
27intent to replace it with another school building, whether in the
28same location or in any other location.

begin delete

29Any

end delete

30begin insert(b)end insertbegin insertend insertbegin insertAnyend insert one or more of the purposesbegin delete enumerated,end deletebegin insert enumerated
31in subdivision (a),end insert
except that of refunding any outstanding valid
32indebtedness of thebegin insert school district or community collegeend insert district
33evidenced by bonds, may, by order of the governing boardbegin insert of the
34school district or community college district, as applicable, that
35isend insert
entered in its minutes, be united and voted upon as one single
36proposition.

begin insert

37(c) Before the governing board of a school district may order
38an election for purposes of this section, it shall obtain reasonable
39and informed projections of assessed property valuations from an
40independent third party not associated with the bond measure.

end insert
P4    1

SEC. 2.  

Section 15278 of the Education Code is amended to
2read:

3

15278.  

(a) If a bond measure authorized pursuant to paragraph
4(3) of subdivision (b) of Section 1 of Article XIII A of the
5California Constitution and subdivision (b) of Section 18 of Article
6XVI of the California Constitution is approved, the governing
7board of the school district or community college shall establish
8and appoint members to an independent citizens’ oversight
9committee, pursuant to Section 15282, within 60 days of the date
10that the governing board enters the election results on its minutes
11pursuant to Section 15274.

12(b) The purpose of the citizens’ oversight committee shall be
13to inform the public concerning the expenditure of bond revenues.
14The citizens’ oversight committee shall actively review and report
15on the proper expenditure of taxpayers’ money for school
16construction. The citizens’ oversight committee shall advise the
17public as to whether a school district or community college district
18is in compliance with the requirements of paragraph (3) of
19subdivision (b) of Section 1 of Article XIII A of the California
20Constitution. The citizens’ oversight committee shall convene to
21provide oversight for, but not be limited to, both of the following:

22(1) Ensuring that bond revenues are expended only for the
23purposes described in paragraph (3) of subdivision (b) of Section
241 of Article XIII A of the California Constitution.

25(2) Ensuring that, as prohibited by subparagraph (A) of
26paragraph (3) of subdivision (b) of Section 1 of Article XIII A of
27the California Constitution, no funds are used for any teacher or
28administrative salaries or other school operating expenses.

29(c) In furtherance of its purpose, the citizens’ oversight
30committee may engage in any of the following activities:

31(1) Receiving and reviewing copies of the annual, independent
32performance audit required by subparagraph (C) of paragraph (3)
33of subdivision (b) of Section 1 of Article XIII A of the California
34Constitution.

35(2) Receiving and reviewing copies of the annual, independent
36financial audit required by subparagraph (C) of paragraph (3) of
37subdivision (b) of Section 1 of Article XIII A of the California
38Constitution.

39(3) Inspecting school facilities and grounds to ensure that bond
40revenues are expended in compliance with the requirements of
P5    1paragraph (3) of subdivision (b) of Section 1 of Article XIII A of
2the California Constitution.

3(4) Receiving and reviewing copies of any deferred maintenance
4proposals or plans developed by a school district or community
5collegebegin delete district, including any reports required by Section 17584.1.end delete
6begin insert district.end insert

7(5) Reviewing efforts by the school district or community
8college district to maximize bond revenues by implementing
9cost-saving measures, including, but not limited to, all of the
10following:

11(A) Mechanisms designed to reduce the costs of professional
12fees.

13(B) Mechanisms designed to reduce the costs of site preparation.

14(C) Recommendations regarding the joint use of core facilities.

15(D) Mechanisms designed to reduce costs by incorporating
16efficiencies in schoolsite design.

17(E) Recommendations regarding the use of cost-effective and
18efficient reusable facility plans.

begin insert

19(d) A citizens’ oversight committee that is established by the
20governing board of a school district shall also annually review
21the school district’s arrangements for issuing and repaying its
22bonds.

end insert
23

SEC. 3.  

Section 15284 of the Education Code is amended to
24read:

25

15284.  

(a) An action to obtain an order restraining and
26preventing any expenditure of funds received by a school district
27or community college district through the sale of bonds authorized
28by this chapter pursuant to paragraph (3) of subdivision (b) of
29Section 1 of Article XIII A of the California Constitution and
30subdivision (b) of Section 18 of Article XVI of the California
31Constitution may be maintained against any officer, agent, or other
32person acting on behalf of, that school district or community
33college district, by a citizen residing in the schoolbegin insert districtend insert or
34community college district who is assessed and is liable to pay an
35ad valorem tax on real property within the schoolbegin insert districtend insert or
36community college district, or who has paid an ad valorem tax on
37real property within the schoolbegin insert districtend insert or community college
38district within one year before the commencement of thebegin delete actionend delete
39begin insert action, or, in the case of a school district only, a county auditor
40with jurisdiction over the school district,end insert
if it appears by the
P6    1complaint or affidavits that any of the following conditions are
2present:

3(1) An expenditure of funds received by a school district or
4community college district through the sale of bonds authorized
5by this chapter is for purposes other than those specified in
6paragraph (3) of subdivision (b) of Section 1 of Article XIII A of
7the California Constitution.

8(2) The expenditure is not in compliance with paragraph (3) of
9subdivision (b) of Section 1 of Article XIII A of the California
10Constitution.

11(3) That an expenditure in violation of paragraph (3) of
12subdivision (b) of Section 1 of Article XIII A of the California
13Constitution will be made or will continue to be made during the
14litigation that would produce waste or great or irreparable injury.

15(4) The governing board of a school district or community
16collegebegin insert districtend insert has willfully failed to appoint the citizens’ oversight
17committee in violation of the requirements of Section 15278.

18(b) An action brought pursuant to this section shall take special
19precedence over all civil matters on the calendar of the court except
20those matters granted equal precedence by law.

21(c) The rights, remedies, or penalties established by this section
22are cumulative to the rights, remedies, or penalties established
23under other laws, including subdivision (a) of Section 526begin delete of
24Chapter 3 of Title 7 of Part 2end delete
of the Code of Civil Procedure.

25(d) If an order is obtained to restrain and prevent an expenditure
26of funds pursuant to subdivision (a), a court may award attorneys’
27fees pursuant to Chapter 6 (commencing with Section 1021.5) of
28Title 14 of Part 2 of the Code of Civil Procedure.

29(e) The action authorized by this section shall be known as a
30“School Bond Waste Prevention Action.”



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