SB 222, as amended, Block. Local agencies:begin insert school bonds:end insert general obligation bonds: statutory lien.
begin insert(1) 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.
end insertbegin insertIf 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.
end insertbegin insertThis 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.
end insertExisting
end deletebegin insert(2)end insertbegin insert end insertbegin insertExistingend insert law authorizes local agencies to issue general obligation bonds, as provided.
This bill would require general obligation bonds issued and sold by or on behalf of a local agency to be secured by a statutory lien on all revenues received pursuant to the levy and collection of the property tax imposed to service those bonds, 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:
begin insertSection 15251 of the end insertbegin insertEducation Codeend insertbegin insert is amended
2to read:end insert
begin deleteAll taxes levied, when collected end deletebegin insert(a)end insertbegin insert end insertbegin insertWhen collected,
4all taxes levied end insertshall be paid into the county treasury of the county
5whose superintendent of schools has jurisdiction over the school
6districtbegin delete inend deletebegin insert onend insert behalf of which the tax was levied, to the credit of
7the interest and sinking fund of the school
district, or community
8college district as designated by the California Community
9Colleges Budget and Accounting Manual, and shall be used for
10the payment of the principal and interest of the bonds and for no
11other purpose.
12(b) Bonds issued and sold pursuant to this chapter shall be
13secured by a statutory lien on all revenues received pursuant to
14the levy and collection of the tax. The lien shall automatically
15attach without further action or authorization by the governing
16board of the school district or community college district. The lien
17shall be valid and binding from the time the bonds are executed
18and delivered. The revenues received pursuant to the levy and
19collection of the tax shall be immediately subject to the lien, and
20the lien shall automatically attach to the revenues and be effective,
21binding, and enforceable against the school district or
community
22college district, its successors, transferees, and creditors, and all
P3 1others asserting rights therein, irrespective of whether those parties
2have notice of the lien and without the need for any physical
3delivery, recordation, filing, or further act.
Article 5.5 (commencing with Section 53515) is added
6to Chapter 3 of Part 1 of Division 2 of Title 5 of the Government
7
Code, to read:
8
(a) General obligation bonds issued and sold by or on
12behalf of a local agency shall be secured by a statutory lien on all
13revenues received pursuant to the levy and collection of the tax.
14The lien shall automatically arise without the need for any action
15or authorization by the local agency or its governing body. The
16lien shall be valid and binding from the time the bonds are executed
17and delivered. The revenues received pursuant to the levy and
18collection of the tax shall be immediately subject to the lien, and
19the lien shall immediately attach to the revenues and be effective,
20binding, and enforceable against the local agency, its successors,
21transferees, and creditors, and all others asserting rights therein,
22irrespective of
whether those parties have notice of the lien and
23without the need for any physical delivery, recordation, filing, or
24further act.
25(b) This section is not intended to supplement or limit a local
26agency’s power to issue general obligation bonds conferred by
27any other law.
28(c) For purposes of this section, both of the following shall
29apply:
30(1) “Local agency” means any city, county, city and county,
31school district, community college district, authority, or special
32district.
33(2) “Generalbegin delete Obligationend deletebegin insert
obligationend insert bonds” means bonds,
34warrants, notes, or other evidence of indebtedness of a local agency
35payable, both principal and interest, from the proceeds of ad
36valorem taxesbegin delete whichend deletebegin insert thatend insert may be levied pursuant to paragraphs
37(2) and (3) of subdivision (b) of Section 1 of Article XIII A of the
38California Constitution.
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