BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       AB 2116|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                      CONSENT 


          Bill No:  AB 2116
          Author:   Gallagher (R), et al.
          Amended:  6/15/16 in Senate
          Vote:     21 

           SENATE EDUCATION COMMITTEE:  9-0, 6/8/16
           AYES:  Liu, Block, Hancock, Huff, Leyva, Mendoza, Monning, Pan,  
            Vidak

           ASSEMBLY FLOOR:  79-0, 4/21/16 (Consent) - See last page for  
            vote

           SUBJECT:   School bonds:  projections of assessed property  
                     valuations


          SOURCE:    Author


          DIGEST:  This bill requires a school district or community  
          college district governing board to consider the county  
          assessor's projections for property valuations prior to ordering  
          an election to authorize bonds for school facilities  
          construction related purposes.


          ANALYSIS:  


          Existing law authorizes the governing board of any school  
          district or community college district and requires a district,  
          upon a petition of the majority of the qualified electors  
          residing in the district, to order an election and submit to the  
          electors of the district the question whether the bonds of the  
          district shall be issued and sold for the purpose of raising  








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          money for specified purposes, including the purchase of school  
          lots, the building or purchase of school buildings, and other  
          facilities and equipment related costs, as well as refunding of  
          facilities related debt, as specified.  (Education Code § 15100)


          This bill:

          1)Requires a school or community college district to consider  
            the county assessor's projections of assessed property  
            valuations prior to ordering an election to authorize bonds  
            for school facilities construction related purposes, as  
            specified. 

          2)Makes a number of technical and clarifying changes applicable  
            to both school and community college districts. 


          Comments


          Source of the bill.  In July 2015, the California Policy Center,  
          an educational nonprofit focused on how to improve California's  
          democracy and economy, issued a report, For the Kids:  CA Voters  
          Must Become Way of Borrowing Billions More from Wealthy  
          Investors for Educational Construction. Among other things, the  
          report highlighted the need for adequate and effective oversight  
          and accountability for bond measures.  The report recommended  
          that districts be required to obtain reasonable and informed  
          projections of assessed property valuation from an independent  
          source (not from their bond advisors and consultants) before  
          placing a bond measure on the ballot.  According to the author,  
          this bill would improve school bond oversight, accountability,  
          and fiscal responsibility by requiring the school district  
          governing board to consider the county assessor's projections  
          prior to ordering an election to authorize school facilities  
          construction bonds. 


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:NoLocal:    No









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          SUPPORT:   (Verified6/14/16)


          Howard Jarvis Taxpayers Association
          Salinas Taxpayers Association


          OPPOSITION:   (Verified6/14/16)


          None received

          ASSEMBLY FLOOR:  79-0, 4/21/16
          AYES:  Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,  
            Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,  
            Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth  
            Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto,  
            Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper,  
            Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim,  
            Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis,  
            Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,  
            O'Donnell, Olsen, Patterson, Quirk, Rodriguez, Salas,  
            Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner,  
            Waldron, Weber, Wilk, Williams, Wood, Rendon
          NO VOTE RECORDED:  Ridley-Thomas


          Prepared by:Kathleen Chavira / ED. / (916) 651-4105
          6/15/16 17:24:39


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