Senate Bill No. 222

Introduced by Senator Block

February 12, 2015

An act to amend Section 15251 of the Education Code, relating to school bonds.

LEGISLATIVE COUNSEL’S DIGEST

SB 222, as introduced, Block. School bonds: school facilities: statutory lien.

Except as otherwise provided by law, existing law provides that the governing board of a school district or community college district may, when in its judgment it is advisable, and shall, upon a petition of the majority of the qualified electors residing in the school district or community college district, 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 money for certain school facilities purposes, including the purchasing of school lots and the building or purchasing of school buildings.

If the bond measure is approved by the electors, existing law requires the board of supervisors of the county whose county superintendent of schools has jurisdiction over the school district or community college district to annually, at the time of making the levy of taxes for county purposes, levy a tax for that year upon the property in the district for the interest and redemption of all outstanding bonds of the school district or community college district. Existing law requires that all taxes levied, when collected, to be paid into the county treasury, as provided, to be used for the payment of the principal and interest of the bonds and for no other purpose.

This bill would require bonds issued and sold pursuant to these provisions to be secured by a statutory lien on all revenues received pursuant to the levy and collection of the tax, as provided.

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

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

SECTION 1.  

Section 15251 of the Education Code is amended
to read:

15251.  

begin delete All taxes levied, when collected end delete begin insert (a) end insert begin insert   end insert begin insert When collected,
all taxes levied end insert shall be paid into the county treasury of the county
whose superintendent of schools has jurisdiction over the school
district begin delete in end delete begin insert on end insert behalf of which the tax was levied, to the credit of
the interest and sinking fund of the school district, or community
college district as designated by the California Community
Colleges Budget and Accounting Manual, and shall be used for
the payment of the principal and interest of the bonds and for no
other purpose.

begin insert

(b) Bonds issued and sold pursuant to this chapter shall be
secured by a statutory lien on all revenues received pursuant to
the levy and collection of the tax. The lien shall automatically
attach without further action or authorization by the governing
board of the school district or community college district. The lien
shall be valid and binding from the time the bonds are executed
and delivered. The revenues received pursuant to the levy and
collection of the tax shall be immediately subject to the lien, and
the lien shall automatically attach to the revenues and be effective,
binding, and enforceable against the school district or community
college district, its successors, transferees, and creditors, and all
others asserting rights therein, irrespective of whether those parties
have notice of the lien and without the need for any physical
delivery, recordation, filing, or further act.

end insert