Amended in Assembly April 14, 2016

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 amendbegin delete Sections 15100, 15278, and 15284end deletebegin insert Section 15100end insert of the Education Code, relating to school bonds.

LEGISLATIVE COUNSEL’S DIGEST

AB 2116, as amended, Gallagher. School bonds:begin delete citizens’ oversight committees: school bond waste prevention actions.end deletebegin insert projections of assessed property valuations.end insert

begin delete

(1) Existing

end delete

begin insertExistingend insert 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 valuationsbegin delete from an independent third party not associated with the bond measure before placing a bond measure on a ballot.end deletebegin insert that take into consideration projections of assessed property valuations made by the county assessor. The bill would also delete obsolete references and make other nonsubstantive changes.end insert

begin delete

(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.

end delete
begin delete

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.

end delete
begin delete

(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.”

end delete
begin delete

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.

end delete
begin delete

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

end delete

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.  

(a) 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
P3    1electors of the school district or community college district, as
2applicable, the question whether the bonds of the school district
3or community college district shall be issued and sold for the
4purpose of raising money for the following purposes:

5(1) The purchasing of school lots.

6(2) The building or purchasing of school buildings.

7(3) The making of alterations or additions to the school building
8or buildings other than as may be necessary for current
9maintenance, operation, or repairs.

10(4) The repairing, restoring, or rebuilding of any school building
11damaged, injured, or destroyed by fire or other public calamity.

12(5) The supplying of school buildings and grounds with
13furniture, equipment, or necessary apparatus of a permanent nature.

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

15(7) The refunding of any outstanding valid indebtedness of the
16school district or community college district, evidenced by bonds,
17or of state school building aid loans.

18(8) The carrying out of the projects or purposes authorized in
19Section 17577.

20(9) The purchase of schoolbuses the useful life of which is at
21least 20 years.

22(10) The demolition or razing of any school building with the
23intent to replace it with another school building, whether in the
24same location or in any other location.

25(b) Any one or more of the purposes enumerated in subdivision
26(a), except that of refunding any outstanding valid indebtedness
27of the school district or community college district evidenced by
28bonds, may, by order of the governing board of the school district
29or community college district, as applicable, that is entered in its
30minutes, be united and voted upon as one single proposition.

31(c) Before the governing board of a school district may order
32an election for purposes of this section, it shall obtain reasonable
33and informed projections of assessed property valuationsbegin delete from an
34independent third party not associated with the bond measure.end delete
begin insert that
35take into consideration projections of assessed property valuations
36made by the county assessor.end insert

begin delete
37

SEC. 2.  

Section 15278 of the Education Code is amended to
38read:

39

15278.  

(a) If a bond measure authorized pursuant to paragraph
40(3) of subdivision (b) of Section 1 of Article XIII A of the
P4    1California Constitution and subdivision (b) of Section 18 of Article
2XVI of the California Constitution is approved, the governing
3board of the school district or community college shall establish
4and appoint members to an independent citizens’ oversight
5committee, pursuant to Section 15282, within 60 days of the date
6that the governing board enters the election results on its minutes
7pursuant to Section 15274.

8(b) The purpose of the citizens’ oversight committee shall be
9to inform the public concerning the expenditure of bond revenues.
10The citizens’ oversight committee shall actively review and report
11on the proper expenditure of taxpayers’ money for school
12construction. The citizens’ oversight committee shall advise the
13public as to whether a school district or community college district
14is in compliance with the requirements of paragraph (3) of
15subdivision (b) of Section 1 of Article XIII A of the California
16Constitution. The citizens’ oversight committee shall convene to
17provide oversight for, but not be limited to, both of the following:

18(1) Ensuring that bond revenues are expended only for the
19purposes described in paragraph (3) of subdivision (b) of Section
201 of Article XIII A of the California Constitution.

21(2) Ensuring that, as prohibited by subparagraph (A) of
22paragraph (3) of subdivision (b) of Section 1 of Article XIII A of
23the California Constitution, no funds are used for any teacher or
24administrative salaries or other school operating expenses.

25(c) In furtherance of its purpose, the citizens’ oversight
26committee may engage in any of the following activities:

27(1) Receiving and reviewing copies of the annual, independent
28performance audit required by subparagraph (C) of paragraph (3)
29of subdivision (b) of Section 1 of Article XIII A of the California
30Constitution.

31(2) Receiving and reviewing copies of the annual, independent
32financial audit required by subparagraph (C) of paragraph (3) of
33subdivision (b) of Section 1 of Article XIII A of the California
34Constitution.

35(3) Inspecting school facilities and grounds to ensure that bond
36revenues are expended in compliance with the requirements of
37paragraph (3) of subdivision (b) of Section 1 of Article XIII A of
38the California Constitution.

P5    1(4) Receiving and reviewing copies of any deferred maintenance
2proposals or plans developed by a school district or community
3college district.

4(5) Reviewing efforts by the school district or community
5college district to maximize bond revenues by implementing
6cost-saving measures, including, but not limited to, all of the
7following:

8(A) Mechanisms designed to reduce the costs of professional
9fees.

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

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

12(D) Mechanisms designed to reduce costs by incorporating
13efficiencies in schoolsite design.

14(E) Recommendations regarding the use of cost-effective and
15efficient reusable facility plans.

16(d) A citizens’ oversight committee that is established by the
17governing board of a school district shall also annually review the
18school district’s arrangements for issuing and repaying its bonds.

19

SEC. 3.  

Section 15284 of the Education Code is amended to
20read:

21

15284.  

(a) An action to obtain an order restraining and
22preventing any expenditure of funds received by a school district
23or community college district through the sale of bonds authorized
24by this chapter pursuant to paragraph (3) of subdivision (b) of
25Section 1 of Article XIII A of the California Constitution and
26subdivision (b) of Section 18 of Article XVI of the California
27Constitution may be maintained against any officer, agent, or other
28person acting on behalf of, that school district or community
29college district, by a citizen residing in the school district or
30community college district who is assessed and is liable to pay an
31ad valorem tax on real property within the school district or
32community college district, or who has paid an ad valorem tax on
33real property within the school district or community college
34district within one year before the commencement of the action,
35or, in the case of a school district only, a county auditor with
36jurisdiction over the school district, if it appears by the complaint
37or affidavits that any of the following conditions are present:

38(1) An expenditure of funds received by a school district or
39community college district through the sale of bonds authorized
40by this chapter is for purposes other than those specified in
P6    1paragraph (3) of subdivision (b) of Section 1 of Article XIII A of
2the California Constitution.

3(2) The expenditure is not in compliance with paragraph (3) of
4subdivision (b) of Section 1 of Article XIII A of the California
5Constitution.

6(3) That an expenditure in violation of paragraph (3) of
7subdivision (b) of Section 1 of Article XIII A of the California
8Constitution will be made or will continue to be made during the
9litigation that would produce waste or great or irreparable injury.

10(4) The governing board of a school district or community
11college district has willfully failed to appoint the citizens’ oversight
12committee in violation of the requirements of Section 15278.

13(b) An action brought pursuant to this section shall take special
14precedence over all civil matters on the calendar of the court except
15those matters granted equal precedence by law.

16(c) The rights, remedies, or penalties established by this section
17are cumulative to the rights, remedies, or penalties established
18under other laws, including subdivision (a) of Section 526 of the
19Code of Civil Procedure.

20(d) If an order is obtained to restrain and prevent an expenditure
21of funds pursuant to subdivision (a), a court may award attorneys’
22fees pursuant to Chapter 6 (commencing with Section 1021.5) of
23Title 14 of Part 2 of the Code of Civil Procedure.

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

end delete


O

    98