Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2429

Introduced by Assembly Member Thurmond

February 19, 2016

An act to amend begin delete Section 15103 end delete begin insert Sections 15102, end insert begin insert 15106, 15268, and 15270 end insert of the Education Code, relating to school bonds.

LEGISLATIVE COUNSEL’S DIGEST

AB 2429, as amended, Thurmond. School district begin insert and community college district end insert bonds.

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(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 of whether the bonds of the district shall be issued and sold to raise money for specified purposes. Existing law generally requires, to pass a school bond measure, that either at least 2⁄3 of the votes cast on the proposition of issuing bonds be in favor of issuing the bonds to pass the measure, or, if certain conditions are met, at least 55% of the votes cast on the proposition of issuing bonds be in favor of issuing the bonds.

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Existing law prohibits the total amount of bonds issued by a school district or community college district from exceeding 1.25% of the taxable property of the district, only if the tax rate levied to meet specified requirements of the California Constitution in the case of indebtedness incurred by a school district, at a single election, would not exceed $30 per year per $100,000 of taxable property, as specified.

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This bill would raise that limit to 2%.

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(2) Existing law authorizes a unified school district to issue bonds receiving at least 55% of the votes cast on the proposition of issuing the bonds that, in aggregation with bonds issued with a 2⁄3 favorable vote, do not exceed 2.5% of the taxable property of the district, but only if the tax rate levied to meet specified requirements of the California Constitution in the case of indebtedness incurred by a school district, at a single election, would not exceed $60 per year per $100,000 of taxable property, as specified.

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This bill would raise that limit to 4%. The bill would make a similar percentage increase for community college districts.

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Existing law provides, for the purposes of school bonds, how the value of taxable property will be determined.

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This bill would make nonsubstantive changes to that provision.

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

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

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begin insert SECTION 1. end insert   

end insert

begin insert Section 15102 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

15102.  

The total amount of bonds issued pursuant to this
chapter and Chapter 1.5 (commencing with Section 15264) shall
not exceed begin delete 1.25 end delete begin insert 2 end insert percent of the taxable property of the school
district or community college district, or the school facilities
improvement district, if applicable, as shown by the last equalized
assessment of the county or counties in which the district is located.
For purposes of this section, the taxable property of a district for
any fiscal year shall be calculated to include, but not be limited
to, the assessed value of all unitary and operating nonunitary
property of the district, which shall be derived by dividing the
gross assessed value of the unitary and operating nonunitary
property within the district for the 1987-88 fiscal year by the gross
assessed value of all unitary and operating nonunitary property
within the county in which the district is located for the 1987-88
fiscal year, and multiplying that result by the gross assessed value
of all unitary and operating nonunitary property of the county on
the last equalized assessment roll.

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begin insert SEC. 2. end insert   

end insert

begin insert Section 15106 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

15106.  

begin insert (a) end insert begin insert   end insert A unified school district or community college
district may issue bonds that, in aggregation with bonds issued
pursuant to Section 15270, shall not exceed begin delete 2.5 end delete begin insert 4 end insert percent of the
taxable property of the school district or community college district,
or the school facilities improvement district, if applicable, as shown
by the last equalized assessment of the county or counties in which
the district is located.

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In

end delete

begin insert (b) end insert begin insert   end insert begin insert In end insert computing the outstanding bonded indebtedness of a
unified school district or community college district for all purposes
of this section, any outstanding bonds shall be deemed to have
been issued for elementary school purposes, high school purposes,
and community college purposes, respectively, in the respective
amounts that the proceeds of the sale of those outstanding bonds,
excluding any premium and accrued interest received on that sale,
were or have been allocated by the governing board of the unified
school district or community college district to each of those
purposes respectively.

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(a)

end delete

begin insert (c) end insert  For the purposes of the State School Building Aid Law of
1952 (Chapter 6 (commencing with Section 16000)) with respect
to applications for apportionments and apportionments filed or
made begin delete prior to end delete begin insert before end insert September 15, 1961, and to the repayment
thereof, Chapter 4 (commencing with Section 15700), inclusive,
only, a unified school district shall be considered to have a bonding
capacity in the amount permitted by law for an elementary school
district and a bonding capacity in the amount permitted by law for
a high school district.

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(b)

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begin insert (d) end insert  For purposes of this section, the taxable property of a district
for a fiscal year shall be calculated to include, but not be limited
to, the assessed value of all unitary and operating nonunitary
property of the district, which shall be derived by dividing the
gross assessed value of the unitary and operating nonunitary
property within the district for the 1987-88 fiscal year by the gross
assessed value of all unitary and operating nonunitary property
within the county in which the district is located for the 1987-88
fiscal year, and multiplying the result by the gross assessed value
of all unitary and operating nonunitary property of the county on
the last equalized assessment roll. In the event of the unification
of two or more school districts or community college districts
subsequent to the 1987-88 fiscal year, the assessed value of all
unitary and operating nonunitary property of the unified district
or community college district shall be deemed to be the total of
the assessed value of the taxable property of each of the unifying
districts as that assessed value would be determined under Section
15102.

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begin insert SEC. 3. end insert   

end insert

begin insert Section 15268 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

15268.  

The total amount of bonds issued, including bonds
issued pursuant to Chapter 1 (commencing with Section 15100),
shall not exceed begin delete 1.25 end delete begin insert 2 end insert percent of the taxable property of the
district as shown by the last equalized assessment of the county
or counties in which the district is located. The bonds may only
be issued if the tax rate levied to meet the requirements of Section
18 of Article XVI of the California Constitution in the case of
indebtedness incurred by a school district pursuant to this chapter,
at a single election, would not exceed thirty dollars ($30) per year
per one hundred thousand dollars ($100,000) of taxable property
when assessed valuation is projected by the district to increase in
accordance with Article XIII A of the California Constitution. For
purposes of this section, the taxable property of a district for any
fiscal year shall be calculated to include, but not be limited to, the
assessed value of all unitary and operating nonunitary property of
the district, which shall be derived by dividing the gross assessed
value of the unitary and operating nonunitary property within the
district for the 1987-88 fiscal year by the gross assessed value of
all unitary and operating nonunitary property within the county in
which the district is located for the 1987-88 fiscal year, and
multiplying that result by the gross assessed value of all unitary
and operating nonunitary property of the county on the last
equalized assessment roll.

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begin insert SEC. 4. end insert   

end insert

begin insert Section 15270 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

15270.  

(a) Notwithstanding Sections 15102 and 15268, any
unified school district may issue bonds pursuant to this article that,
in aggregation with bonds issued pursuant to Chapter 1
(commencing with Section 15100), may not exceed begin delete 2.5 end delete begin insert 4 end insert percent
of the taxable property of the district as shown by the last equalized
assessment of the county or counties in which the district is located.
The bonds may only be issued if the tax rate levied to meet the
requirements of Section 18 of Article XVI of the California
Constitution in the case of indebtedness incurred pursuant to this
chapter at a single election, by a unified school district, would not
exceed sixty dollars ($60) per year per one hundred thousand
dollars ($100,000) of taxable property when assessed valuation is
projected by the district to increase in accordance with Article
XIII A of the California Constitution.

(b) Notwithstanding Sections 15102 and 15268, any community
college district may issue bonds pursuant to this article that, in
aggregation with bonds issued pursuant to Chapter 1 (commencing
with Section 15100), may not exceed begin delete 2.5 end delete begin insert 4 end insert percent of the taxable
property of the district as shown by the last equalized assessment
of the county or counties in which the district is located. The bonds
may only be issued if the tax rate levied to meet the requirements
of Section 18 of Article XVI of the California Constitution in the
case of indebtedness incurred pursuant to this chapter at a single
election, by a community college district, would not exceed
twenty-five dollars ($25) per year per one hundred thousand dollars
($100,000) of taxable property when assessed valuation is projected
by the district to increase in accordance with Article XIII A of the
California Constitution.

(c) In computing the outstanding bonded indebtedness of any
unified school district or community college district for all purposes
of this section, any outstanding bonds shall be deemed to have
been issued for elementary school purposes, high school purposes,
and community college purposes, respectively, in the respective
amounts that the proceeds of the sale of those outstanding bonds,
excluding any premium and accrued interest received on that sale,
were or have been allocated by the governing board of the unified
school district or community college district to each of those
purposes respectively.

(d) For purposes of this section, the taxable property of a district
for any fiscal year shall be calculated to include, but not be limited
to, the assessed value of all unitary and operating nonunitary
property of the district, which shall be derived by dividing the
gross assessed value of the unitary and operating nonunitary
property within the district for the 1987-88 fiscal year by the gross
assessed value of all unitary and operating nonunitary property
within the county in which the district is located for the 1987-88
fiscal year, and multiplying the result by the gross assessed value
of all unitary and operating nonunitary property of the county on
the last equalized assessment roll. In the event of the unification
of two or more school districts subsequent to the 1987-88 fiscal
year, the assessed value of all unitary and operating nonunitary
property of the unified district shall be deemed to be the total of
the assessed value of the taxable property of each of the unifying
districts as that assessed value would be determined under Section
15268.

(e) For begin delete the end delete purposes of this article, “general obligation bonds,”
as that term is used in Section 18 of Article XVI of the California
Constitution, means bonds of a school district or community
college district the repayment of which is provided for by this
chapter and Chapter 1 (commencing with Section 15100) of Part
10, and includes bonds of a school facilities improvement district
the repayment of which is provided for by this chapter and Chapter
2 (commencing with Section 15300).

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SECTION 1.  

Section 15103 of the Education Code is amended
to read:

15103.  

Notwithstanding any other law, for the purpose of
computing the limit on the amount of bonds that may be issued
by a district pursuant to the provisions of this chapter, the taxable
property of the district shall be determined upon the basis that the
district’s assessed value has not been reduced by the exemption
of the assessed value of business inventories in the district or
reduced by the homeowner’s property tax exemption.

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