BILL NUMBER: SB 50	CHAPTERED
	BILL TEXT

	CHAPTER   407
	FILED WITH SECRETARY OF STATE   AUGUST 27, 1998
	APPROVED BY GOVERNOR   AUGUST 27, 1998
	PASSED THE ASSEMBLY   AUGUST 26, 1998
	PASSED THE SENATE   AUGUST 25, 1998
	CONFERENCE REPORT NO.   1
	PROPOSED IN CONFERENCE   AUGUST 24, 1998
	AMENDED IN ASSEMBLY   JULY 13, 1998
	AMENDED IN ASSEMBLY   JULY 8, 1998
	AMENDED IN ASSEMBLY   MARCH 3, 1998
	AMENDED IN ASSEMBLY   JULY 2, 1997
	AMENDED IN SENATE   JUNE 3, 1997
	AMENDED IN SENATE   APRIL 1, 1997
	AMENDED IN SENATE   MARCH 13, 1997
	AMENDED IN SENATE   MARCH 6, 1997
	AMENDED IN SENATE   FEBRUARY 25, 1997

INTRODUCED BY   Senator Greene and Assembly Members Villaraigosa and
Olberg
   (Principal coauthors:  Senators Alpert, Johnston, Karnette, and
Polanco)
   (Principal coauthors:  Assembly Members Aguiar, Baca, Bustamante,
Cardenas, Cardoza, Cedillo, Cunneen, Ducheny, Escutia, Frusetta,
Gallegos, Havice, Hertzberg, Keeley, Kuehl, Kuykendall, Leonard,
Mazzoni, Migden, Miller, Napolitano, Oller, Prenter, Richter, Scott,
Shelley, Takasugi, Torlakson, Washington, Wayne, Wildman, and Woods)
   (Coauthors:  Assembly Members Figueroa, Knox, Perata,
Strom-Martin, Vincent, and Wright)

                        DECEMBER 2, 1996

   An act to amend Sections 17260, 17262, 17303, 17305, 17306, and
17620 of, to add Sections 17009.3, 17009.5, 81134, 81135, and 81136
to, to add Chapter 12.5 (commencing with Section 17070.10) to Part 10
of, to add Part 68 (commencing with Section 100400) to, to repeal
Section 15101 of, and to repeal and add Section 17261 of, the
Education Code, to amend Section 1003 of the Elections Code, to amend
Sections 65995 and 65996 of, and to add Sections 4420.5, 65995.5,
65995.6, 65995.7, 65997, and 65998 to, the Government Code, and to
add and repeal Chapter 9 (commencing with Section  51450) to Division
31 of the Health and Safety Code, relating to education facilities,
making an appropriation therefor, and by providing the funds
necessary therefor through an election for, and the issuance and sale
of, bonds of the State of California and by providing for the
handling and disposition of those funds, and declaring the urgency
thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 50, Greene.  Education:  Leroy F. Greene School Facilities Act
of 1998:  Class Size Reduction Kindergarten-University Public
Education Facilities Bond Act of 1998:  school facilities
construction:  developers fees.
   (1) Existing law prohibits an election on a bond measure of a
school district or community college district within 45 days of a
statewide election unless conducted at the same time as the statewide
election.
   This bill would repeal this provision.
   (2) Existing law requires the State Department of Education to
establish a pool of duplicate plans for school buildings appropriate
for school districts in rural areas.  Existing law defines school
building for this purpose to mean a one-story schoolhouse of not more
than 9 classrooms.
   This bill would, instead, require the State Allocation Board to
obtain construction plans for school buildings appropriate for school
districts in the various climates and geographical conditions of the
state requiring school buildings of various sizes, would delete this
definition of school building and would, instead, make the
definition of school building set forth in the Field Act relating to
seismic safety apply to these provisions, and would make other
conforming and technical, nonsubstantive changes.
   (3) Under existing law, known as the Leroy F. Greene State School
Building Lease-Purchase Law of 1976 (hereafter the "Greene Act"), the
State Allocation Board (hereafter "the board") is authorized to
apportion state funding to applicant school districts for designated
school facilities construction purposes.
   This bill would prohibit the board from approving any projects
pursuant to the Greene Act on and after November 4, 1998.  This
provision would become inoperative on November 4, 1998, if the bond
act described in (6) is not adopted.
   This bill would enact the Leroy F. Greene School Facilities Act of
1998, which would establish a new state program in which the board
would provide state per pupil funding for new school facilities
construction and school facilities modernization.  This program would
become inoperative on November 4, 1998, if the bond act described in
(6) is not adopted.
   This bill would establish the 1998 State School Facilities Fund
and provide for the continuous appropriation of funds deposited in
that fund.  The bill would establish a county school facilities fund
for deposit of funding for approved projects.  By requiring the
establishment of this county fund, this bill would impose a
state-mandated local program.
   (4) Under existing law, the West Contra Costa Unified School
District is ineligible for any state facilities funding for a period
of 5 years from June 30, 1993, or until the date of the final payment
of its entire debt to the state, whichever is later.
   This bill would provide that, notwithstanding existing law, the
West Contra Costa Unified School District shall be eligible for state
school facilities funding on and after November 4, 1998.
   (5) Existing law, the Field Act, requires a school district, prior
to contracting for the construction or alteration of a school
building, to obtain written approval of the construction plans by the
Department of General Services pursuant to designated structural
safety and other standards.  Under an alternative plan review
process, if the applicant so requests and the department is unable to
commence review within 15 working days, the department is required
to refer the review of the application to a qualified individual or
firm under contract with the department.
   This bill would permit certain local agency building officials to
be qualified plan review firms for purposes of these provisions.  The
bill would permit an applicant to select a qualified plan review
firm instead of having the department review the plans.  The bill
would require the department to contract with a sufficient number of
qualified plan review firms.  The bill would add similar provisions
for review of community college district school building construction
plans by the department under the Field Act.
   (6) Under existing law, the Public Education Facilities Bond Act
of 1996 provides for the issuance, pursuant to the State General
Obligation Bond Law, of bonds in an amount not to exceed
$2,025,000,000 and the expenditure of the proceeds therefrom to
provide aid to school districts, county superintendents of schools,
and county boards of education in accordance with the Greene Act and
related school facilities programs.
   This bill would enact the Class Size Reduction
Kindergarten-University Public Education Facilities Bond Act of 1998,
which, upon approval by the state electorate, would provide for the
issuance of state general obligation bonds in an amount not to exceed
$9,200,000,000, exclusive of refunding bonds issued pursuant to that
act.
   The bill would provide that $3,350,000,000 would be allocated
beginning in the 1998-99 fiscal year for school district project
funding related to the growth in enrollment of applicant school
districts, prescribed reconstruction or modernization, and
facilities-related costs for class size reduction.  The bill would
appropriate the funds for these purposes.  The bill would provide
that $3,350,000,000 would be allocated in the 2000-01 fiscal year for
similar purposes as described above and would appropriate the funds
for these purposes.  The bill would provide that $2,500,000,000 would
be deposited in the 1998 Higher Education Capital Outlay Fund, which
would be established by the bill, with $1,250,000,000 issued and
sold after July 1, 2000, for higher education facility building
construction and related expenditures when appropriated.
   This bill would provide that notwithstanding any other provision
of law, on the operative date of this bill, specified liens that have
been recorded on school district property by the state would be
released, and would prohibit the imposition of new liens on and after
November 4, 1998.
   This bill would declare that it is the policy of the state to
exercise prudence in undertaking the sale of bonds otherwise
authorized for sale by this bill or any other act, and would
encourage undertaking the sale of bonds not to exceed a cumulative
debt service to General Fund revenue ratio of 6% unless the sale is
in the best fiscal interest of the state.
   This bill would provide for the submission to the voters of the
Class Size Reduction Kindergarten-University Public Education
Facilities Bond Act of 1998 at the November 3, 1998, statewide
general election.
   (7) Existing law sets forth the exclusive methods of mitigating
environmental effects related to the adequacy of school facilities
when considering the approval or establishment of conditions for the
approval of a development project under the California Environmental
Quality Act (CEQA).
   This bill would, notwithstanding any other provision of law,
instead, set forth exclusive methods of considering and mitigating
impacts on school facilities which occur or might occur as a result
of any legislative or adjudicative act by any state or local agency
involving, but not limited to, the planning, use, or development of
real property or any change of governmental organization or
reorganization.  The bill would also on or after any statewide
election in 2006, if a school facilities general obligation bond
measure submitted to the voters fails to be approved by the voters,
set forth exclusive methods of mitigating environmental effects
related to the adequacy of school facilities when considering the
approval or the establishment of conditions for the approval of a
development project under CEQA.  These provisions applicable on or
after 2006 would, when operative, make the provisions described in
the first sentence of this paragraph inoperative.
   This bill would establish a Homebuyer Down Payment Assistance
Program and a Rental Assistance Program to provide assistance in the
amount of the applicable school facility fee on affordable housing
developments.  This bill would establish the School Facilities Fee
Assistance Fund in the State Treasury and would provide that the fund
is continuously appropriated to the Department of General Services.
The bill would appropriate $160,000,000 to that fund for the
purposes of these programs, and would require the Department of
General Services to contract with the California Housing Finance
Agency for the administration of these programs and for allocation of
these funds.
   (8) Existing law prohibits an officer or employee of the state, or
of a public agency or public authority, or person, firm, or
corporation acting or purporting to act on behalf of any officer or
employee, from negotiating, making application for, obtaining, or
procuring any surety bond or contract of insurance, except contracts
of insurance for builder's risk or owner's protective liability, that
can be obtained or procured by the bidder, contractor, or
subcontractor.  Certain projects are excluded from this prohibition.

   This bill would exclude a construction project undertaken by a
public school district.
   (9) Existing law authorizes a public agency to utilize
owner-controlled or wrap-up insurance programs on a public works
project if the total cost of the project is over $125,000,000 and
other prescribed conditions are met.
   This bill would include a public school project within that
authority to utilize owner-controlled or wrap-up insurance programs.

   (10) Existing law authorizes certain local agencies to impose
limited fees or other charges against certain development projects to
fund the construction or reconstruction of school facilities.  Under
existing law, a building permit may not be issued for any
development absent certification by the appropriate school district
of compliance by the development project with the fee, charge,
dedication, or other requirement levied by the governing board of
that school district.  Under existing law, for residential
development, the limit on fees is $1.50 per square foot and for
commercial development the limitation is 25
per square foot excluding permissible adjustment for inflation.
Existing law prohibits the legislative body of a local agency from
levying development fees or other requirements for the construction
or reconstruction of schools, other than pursuant to designated
statutory authority.  c   This bill would provide that the fees are
$1.93 for residential development and 31
for commercial development, and would provide for subsequent
adjustments for inflation.  The bill would prohibit fees or other
requirements for the construction or reconstruction of schools from
being levied or imposed in connection with, or made a condition of,
any legislative or adjudicative act, or both, by any state or local
agency involving, but not limited to, the planning, use, or
development of real property, other than pursuant to designated
authority.  This bill would provide, in the case of residential
construction, a governing board of a school district may increase the
per square foot fee by an amount determined pursuant to a formula
for the purpose of generating funds to match the state per pupil and
site assistance grant for which the district is eligible to
accommodate the projected number of new pupils attributable to the
construction of new residential units as demonstrated by a school
facility needs analysis.  This bill would require the needs analysis
to be adopted in accordance with specified notice and procedural
requirements.  This bill would, when state funds for new facility
construction are not available, permit a governing board of a school
district that may increase the per square foot fee, as described
above, to impose a supplemental amount.      (11) Existing law
provides for specific dates on which elections are required to be
held, but exempts certain elections from those dates.
   This bill would exempt elections held for school bonds from those
dates.
   (12) This bill would provide that certain of its provisions would
not become operative before November 4, 1998, and on that date would
only become operative if the Class Size Reduction
Kindergarten-University Public Education Facilities Bond Act of 1998
is approved by the voters at the November 3, 1998, statewide general
election.
   (13) Existing law provides that a bond measure submitted to the
people by the Legislature is required to appear on the ballot of the
first statewide election occurring at least 131 days after the
adoption of the proposal by the Legislature.  Existing law provides
for ballot arguments, press releases, the form of the ballot, public
examination, and for the mailing of state ballot pamphlets to the
voters, within specified timeframes, for measures that are to be
voted upon.
   This bill would require, notwithstanding these provisions or any
other provision of law, the Secretary of State to cause the Class
Size Reduction Kindergarten-University Public Education Bond Act of
1998 to be placed on the ballot and submitted to the voters at the
November 3, 1998, general election and to include in the ballot or
supplemental ballot pamphlet information regarding the measure.
  (14) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   (15) This bill would declare that it is to take effect immediately
as an urgency statute.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 15101 of the Education Code is repealed.
  SEC. 2.  Section 17009.3 is added to the Education Code, to read:
   17009.3.  The board may not approve any projects pursuant to this
chapter on and after  November 4, 1998.
  SEC. 3.  Section 17009.5 is added to the Education Code, to read:
   17009.5.  (a) On and after November 4, 1998, the board shall only
approve and fund school facilities construction projects pursuant to
Chapter 12.5 (commencing with Section 17070.10).
   (b) A school district with a first priority project that has
received a construction approval by the Department of General
Services, Division of the State Architect, or a joint-use project
approval by the board, prior to  November 4, 1998, for growth or
modernization pursuant to this chapter shall receive funding pursuant
to this chapter for all unfunded approved project costs as it would
have received under this chapter, and the increased capacity assigned
to the project shall be included in calculating the district's
capacity pursuant to Chapter 12.5 (commencing with Section 17070.10).
  Funds received for projects described in this subdivision shall
constitute the state's final and full contribution to these projects.
  The board shall not consider additional project funding except
where otherwise authorized under Chapter 12.5 (commencing with
Section 17070.10).
   (c) A school district with a second priority project that has
received a construction approval by the Department of General
Services, Division of the State Architect prior to November 4, 1998,
for growth or modernization pursuant to this chapter shall elect to
do either of the following:
   (1) Withdraw the application under this chapter, submit an initial
report and application pursuant to Chapter 12.5 (commencing with
Section 17070.10), and receive per pupil allocations as set forth in
Chapter 12.5 (commencing with Section 17070.10).  In the event that
the district withdraws the application, any funds previously
allocated under this chapter for the project shall be offset from the
first grant to the district under Chapter 12.5 (commencing with
Section 17070.10).
   (2) Convert the second priority project approved under this
chapter to a first priority status and receive funds in accordance
with this chapter.
   (d) Notwithstanding priorities established pursuant to Chapter
12.5 (commencing with Section 17070.10), projects authorized for
funding as set forth in this section shall be funded by the board
pursuant to this chapter prior to funding other projects pursuant to
Chapter 12.5 (commencing with Section 17070.10).
   (e) For purposes of funding priority for modernization grants
under Chapter 12.5 (commencing with Section 17070.10), a district
that applies under subdivision (b) or paragraph (1) of subdivision
(c) shall retain its original project approval date.
   (f) Notwithstanding Section 17017.1, West Contra Costa Unified
School District shall be eligible for state facilities funds
beginning November 4, 1998.
  SEC. 4.  Chapter 12.5 (commencing with Section 17070.10) is added
to Part 10 of the Education Code, to read:

      CHAPTER 12.5.  LEROY F.  GREENE SCHOOL FACILITIES ACT OF 1998
      Article 1.  General Provisions

   17070.10.  This chapter shall be known, and may be cited, as the
Leroy F. Greene School Facilities Act of 1998.
   17070.15.  The following terms, wherever used or referred to in
this chapter, shall have the following meanings, respectively, unless
a different meaning appears from the context:
   (a) "Apportionment" means a reservation of funds for the purpose
of eligible new construction, modernization, or hardship approved by
the board for an applicant school district.
   (b) "Attendance area" means the geographical area serving an
existing or proposed high school and those junior high schools and
elementary schools included therein.
   (c) "Board" means the State Allocation Board as established by
Section 15490 of the Government Code.
   (d) "Department" means the Department of General Services.
   (e) "Committee" means the State School Building Finance Committee
established pursuant to Section 15909.
   (f) "Modernization" means any modification of a permanent
structure that is at least 25 years old, or in the case of a portable
classroom, that is at least 20 years old, that will enhance the
ability of the structure to achieve educational purposes.
   (g) "Property" includes all property, real, personal or mixed,
tangible or intangible, or any interest therein necessary or
desirable for carrying out the purposes of this chapter.
   (h) "School district" means a school district or a county office
of education.  For purposes of determining eligibility under this
chapter, "school district" may also mean a high school attendance
area.
   (i) "Fund" means the 1998 State School Facilities Fund established
pursuant to Section 17070.40.
   (j) "County fund" means a county school facilities fund
established pursuant to Section 17070.43.
   (k) "Portable classroom" means a classroom building that is
designed and constructed to be relocatable and transportable over
public streets, and with respect to a single story portable
classroom, is designed and constructed for relocation without the
separation of the roof or floor from the building and when measured
at the most exterior walls, has a floor area not in excess of 2,000
square feet.
   (l) "School building capacity" means the capacity of a school
building to house students.
   17070.20.  The Director of General Services shall administer this
chapter and shall provide assistance to the board as it requires.
   17070.25.  The department shall first publish applications for
funding under this chapter by  November 4, 1998, and shall be
prepared to receive and expeditiously act upon applications on and
after that date.
   17070.30.  The State Allocation Board is continued in existence
for the purpose of this chapter.  The members of the board and the
Members of the Legislature meeting with the board shall have no
compensation for their services under this chapter, but shall be
reimbursed for their actual and necessary expenses incurred in
connection with the performance of their duties pursuant to this
chapter, to be paid as an administrative expense.
   17070.33.  (a) The board shall adopt guidelines for use by
districts by  June 30, 1999, to achieve measurable reductions in the
costs of school facilities construction.
   (b) The guidelines shall include, but need not be limited to, all
of the following:
   (1) Mechanisms designed to reduce the costs of professional fees.

   (2) Mechanisms designed to reduce the costs of site preparation.
   (3) Recommendations for the use of alternate cost-saving
construction materials and methods.
   (4) Recommendations regarding the joint use of core facilities.
   (5) Mechanisms designed to reduce costs by incorporating
efficiencies in schoolsite design.
   (6) Recommendations regarding the use of cost-effective, efficient
reusable facility plans.
   (c) If a school district's matching funds include fees charged
pursuant to Section 17620 or pursuant to Section 65995.5 or 65995.7
of the Government Code, or if a district receives funds pursuant to
this chapter, the district shall consider the guidelines developed
pursuant to this section as fully as is practicable.
   (d) When the board adopts the guidelines, it shall not include any
recommendation that would have a significant detrimental effect on
educational programs.
   17070.35.  In addition to all other powers and duties as are
granted to the board by this chapter, other statutes, or the
California Constitution, the board shall do all of the following:
   (a) Adopt rules and regulations, pursuant to the rulemaking
provisions of the Administrative Procedure Act, Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, for the administration of this chapter.
However, the board shall have no authority to set the level of the
fees of any architect, structural engineer, or other design
professional on any project.  The initial regulations adopted
pursuant to this chapter shall be adopted as emergency regulations,
and the circumstances related to the initial adoption are hereby
deemed to constitute an emergency for this purpose.  The initial
regulations adopted pursuant to this chapter shall be adopted by
November 4, 1998.  If the initial regulations are not adopted by that
date, the board shall report to the Legislature by that date,
explaining the reasons for the delay.
   (b) Establish and publish any procedures and policies in
connection with the administration of this chapter as it deems
necessary.
   (c) Determine the eligibility of school districts to receive
apportionments under this chapter.
   (d) Apportion funds to eligible school districts under this
chapter.
   17070.40.  (a) A fund is hereby established in the State Treasury
to be known as the 1998 State School Facilities Fund.  All money in
the fund, including any money deposited in that fund from any source
whatsoever, and notwithstanding Section 13340 of the Government Code,
is hereby continuously appropriated for expenditure pursuant to this
chapter.
   (b) The State Allocation Board may apportion funds to school
districts for the purposes of this chapter from funds transferred to
the 1998 State School Facilities Fund from any source.
   (c) The board may make apportionments in amounts not exceeding
those funds on deposit in the 1998 State School Facilities Fund, and
any amount of bonds authorized by the State School Building Finance
Committee, but not yet sold by the Treasurer.
   (d) The board may make disbursements pursuant to any apportionment
made from any funds in the 1998 State School Facilities Fund,
irrespective of whether there exists at the time of the disbursement
an amount in the 1998 State School Facilities Fund sufficient to
permit payment in full of all apportionments previously made.
However, no disbursement shall be made from any funds required by law
to be transferred to the General Fund.
   17070.43.  (a) A county school facilities fund is hereby
established in the county treasury within each county for each school
district in the county.
   (b) The board may from time to time authorize the Controller to
transfer any funds that the board may deem necessary from the 1998
State School Facilities Fund to the corresponding county fund in the
county treasury.  Interest on all funds deposited in the county fund
shall be retained in that fund.
   (c) Funds may be expended from the county fund by the recipient
school district for qualifying school facilities expenditures set
forth in Sections 17072.35 and 17074.25.
   17070.45.  This chapter shall not be construed to change the
powers and duties of the State Department of Education or the
Department of General Services with respect to schoolsites and the
construction of school buildings as contained in Chapter 1
(commencing with Section 17211) and Chapter 3 (commencing with
Section 17251) of Part 10.5.
   17070.50.  The board shall not apportion funds to any school
district, unless the applicant school district has certified to the
board that the services of any architect, structural engineer, or
other design professional for any work under the project have been
obtained pursuant to a competitive process that is consistent with
the requirements of Chapter 10 (commencing with Section 4525) of
Division 5 of Title 1 of the Government Code and has done either of
the following:
   (a) Obtained the written approval of the State Department of
Education that the site selection, and the building plans and
specifications, comply with the standards adopted by the department
pursuant to subdivisions (b) and (c), respectively, of Section 17251.

   (b) Certified to the board that it is in compliance with the
standards set forth in subdivision (a).
   17070.55.  Upon request of any school district, the State
Department of Education shall provide assistance in the evaluation
and utilization of existing school facilities and the justification
of the need for schoolsites, new facilities, and the rehabilitation
or replacement of existing facilities, in accordance with board
regulations.
   17070.60.  Funding decisions made by the board shall not, in
themselves, make the board liable for any tort, breach of contract,
or any other action for damages caused by a school district arising
from new construction or modernization by the district.  These
contracts include, but are not limited to, contracts between the
school district and its construction contractors, construction
managers, architects, or engineers.  The school district shall be
liable for all torts, breaches of contract, or any other actions for
damages caused by the school district.
   17070.63.  (a) The total funding provided under this chapter shall
constitute the state's full and final contribution to the project
and for eligibility for state facilities funding represented by the
number of unhoused pupils for which the school district is receiving
the state grant.  As a condition of receipt of funds, a school
district shall certify that the grant amount, combined with local
funds, shall be sufficient to complete the school construction
project for which the grant is intended.
   (b) Any funds provided to a school district under any article in
this chapter may not be counted towards the local match for receipt
of funds under any other article in this chapter.
   (c) Any savings achieved by the district's efficient and prudent
expenditure of these funds shall be retained by the district in the
county fund for expenditure by the district for other high priority
capital outlay purposes.
   17070.65.  From any moneys in the 1998 State School Facilities
Fund, and approved for this purpose in the annual Budget Act, the
board shall make available to the Director of General Services the
amounts that the board determines necessary for the Department of
General Services to provide the assistance, pursuant to this chapter,
required pursuant to Section 15504 of the Government Code to
facilitate the construction, modernization, reconstruction, or
alteration of, or addition to, school buildings.
   17070.70.  (a) Title to all property acquired, constructed, or
improved with funds made available under this chapter shall be held
by the school district to which the board grants the funds.
   (b) The applicant school district shall comply with all laws
pertaining to the construction, reconstruction, or alteration of, or
addition to, school buildings.
   17070.75.  (a) The board shall require the school district to make
all necessary repairs, renewals, and replacements to ensure that a
project is at all times kept in good repair, working order, and
condition.  All costs incurred for this purpose shall be borne by the
school district.
   (b) In order to ensure compliance with subdivision (a) and to
encourage school districts to maintain all buildings under their
control, the board shall require an applicant school district to do
all of the following prior to the approval of a project:
   (1) Establish a restricted account within the school district's
general fund for the exclusive purpose of providing moneys for
ongoing and major maintenance of school buildings, according the
highest priority to funding for the purposes set forth in subdivision
(a).
   (2) Agree to deposit into the account established pursuant to
paragraph (1), in each fiscal year for 20 years after receipt of
funds under this chapter, a minimum amount equal to or greater than 3
percent of the applicant school district's general fund budget for
that fiscal year.  For the 1998-99 fiscal year and the 1999-2000
fiscal year, a school district may phase in this requirement by
agreeing to certify the deposit of no less than 2 percent for the
1998-99 fiscal year and no less than 21/2 percent for the 1999-2000
fiscal year.  Annual deposits to the fund established pursuant to
paragraph (1) in excess of 21/2 percent of the district general fund
budget may count towards the district's required match necessary to
receive apportionments from the State School Deferred Maintenance
Fund pursuant to Section 39619 to the extent that funds are used for
purposes that qualify for funding under that section.  In addition,
any district contribution to this fund may be provided in lieu of
meeting the ongoing maintenance requirements pursuant to Section
17014 to the extent the funds are used for purposes established in
that section.  This paragraph is applicable only to the following
school districts:
   (A) High school districts with an average daily attendance greater
than 300 pupils.
   (B) Elementary school districts with an average daily attendance
greater than 900 pupils.
   (C) Unified school districts with an average daily attendance
greater than 1,200 pupils.
   (3) Certify that it has publicly approved an ongoing and major
maintenance plan that outlines the use of the funds deposited, or to
be deposited, pursuant to paragraph (2).  The plan may provide that
the district need not expend all of its annual allocation for ongoing
and major maintenance in the year in which it is deposited if the
cost of major maintenance requires that the allocation be carried
over into another fiscal year.  However, any state funds carried over
into a subsequent year shall not be counted toward the annual
minimum contribution by the district.  A plan developed in compliance
with this section shall be deemed to meet the requirements of
Section 17585.
   (c) A district for which paragraph (2) of subdivision (b) does not
apply shall certify to the board that it can reasonably maintain its
facilities with a lesser level of maintenance.
   17070.80.  (a) All school facilities purchased or newly
constructed pursuant to this chapter for use, in whole or in part, by
pupils who are individuals with exceptional needs, as defined in
Section 56026, shall be designed and located on the schoolsite so as
to maximize interaction between those individuals with exceptional
needs and other pupils as appropriate to the needs of both.
   (b) The governing board of each applicant school district and the
county office of education shall ensure that school facilities for
pupils who are individuals with exceptional needs are integrated with
other school facilities.
   (c) The State Allocation Board, after consultation with the State
Department of Education and representatives from county offices of
education, special education services regions, and school districts,
shall develop and adopt any regulations necessary to implement this
section.
   (d) Notwithstanding any other provision of law, the requirement
set forth in subdivision (a) may be waived, by the Superintendent of
Public Instruction, only upon compliance with the following
procedure:
   (1) The applicant school district or county superintendent of
schools shall file a written request for waiver that documents the
reasons for its inability to comply with the requirement.
   (2) The State Department of Education shall verify the reasons set
forth pursuant to paragraph (1), including the documentation
submitted, which verification shall be completed no later than 30
days after the filing of the request for waiver with the
Superintendent of Public Instruction.
   (3) The Advisory Commission on Special Education, as established
under Section 33590, at its first scheduled meeting following the
verification conducted pursuant to paragraph (2), shall review the
request for waiver, accompanying documentation, and the verification
findings of the State Department of Education.  No later than 15 days
following the date of that meeting, the commission shall submit its
written comments and recommendations regarding the request for waiver
to the Superintendent of Public Instruction.
   (4) The Superintendent of Public Instruction shall review the
comments and recommendations submitted by the Advisory Commission on
Special Education prior to approving or rejecting the request for
waiver.
   (5) Any request for waiver, submitted in accordance with this
section, that is not rejected within 60 days of its receipt by the
State Department of Education, shall be deemed approved.
   17070.85.  Notwithstanding any other provision of law, a lien
recorded on school district property that has been imposed pursuant
to Section 16019 or 17030 shall be released on the operative date of
this section.  The release shall conclusively protect any third party
relying upon the same, and shall be acknowledged to permit
recordation by the county recorder.  On and after November 4, 1998, a
lien may not be imposed pursuant to Section 16019 or Section 17030.

   17070.90.  As a part of its application, a school district shall
certify that it has considered the feasibility of the joint use of
land and facilities with other governmental entities in order to
minimize school facilities costs.  Funds provided pursuant to this
chapter for growth and modernization may be used for the school
portion of joint-use facilities.
   17070.97.  The board shall require the school district to insure
against public liability or property damage in connection with any
facility constructed or modernized with an apportionment under this
chapter.
   17070.98.  A school district that does not have employees who
possess adequate construction management experience may contract for
the provision of construction management, and may use funds provided
pursuant to Article 4 (commencing with Section 17072.10), Article 5
(commencing with Section 17072.20), and Article 7 (commencing with
Section 17074.10) for the cost of those services as expressly
authorized by Section 17072.35 and Section 17074.25.

      Article 2.  Existing School Building Capacity

   17071.10.  (a) The calculation determined by this article shall be
made on a one-time basis, and will be used as the baseline for
eligibility determinations pursuant to this chapter.
   (b) Each school district that elects to participate in the new
construction program pursuant to this chapter shall submit to the
board a one-time report of existing school building capacity.
   17071.25.  (a) The existing school building capacity in the
applicant school district or, where appropriate, in the attendance
area, at the time of initial application shall be calculated pursuant
to the following formula:
   (1) Identify by grade level all permanent teaching stations
existing in the school district or, where appropriate, the attendance
area.  For the purposes of this section, "teaching station" means
any space that was constructed or reconstructed to serve as an area
in which to provide pupil instruction, but shall not include portable
buildings, except as provided in Section 17071.30.
   (2) The assumed capacity of each calculated teaching station
pursuant to paragraph (1) shall be 25 pupils for each teaching
station used for kindergarten or for grades 1 to 6, inclusive, and 27
pupils for each teaching station used for grades 7 to 12, inclusive.

   (3) Multiply the assumed capacity of each teaching station as
specified in paragraph (2) by the number of teaching stations
calculated under paragraph (1).
   (4) The result of this computation shall be the number of pupils
housed by grade level in the existing school building capacity of the
applicant school district.
   (b) The existing school building capacity of the applicant school
district calculated under this section shall not include, in any
school operated on a year-round schedule, any teaching station that
has been in continuous use during the preceding five-year period
primarily for the operation of a preschool program or programs.
   17071.30.  For purposes of determining the existing school
building capacity , each applicant school district shall include each
portable classroom, whether owned or leased, except as otherwise
provided in subdivision (a) or (b).
   (a) Portable classrooms leased pursuant to Chapter 14 (commencing
with Section 17085) shall be excluded from the existing school
building capacity.  Portable classrooms obtained by an applicant
district pursuant to subdivision (b) of Section 17088.5 shall be
excluded from the existing school building capacity, except as to any
portable classroom or classrooms for which the district rejected the
board's offer to purchase pursuant to that subdivision.  Portable
classrooms leased for a period of less than five years prior to the
date of application shall not be included in existing school building
capacity.
   (b) The number of portable classrooms, reduced by the number of
portable classrooms used as interim housing for modernization
projects, that exceed 25 percent of the number of permanent
classrooms available to the district shall not be included in the
existing building capacity.
   17071.33.  For the purposes of determining existing school
building capacity, the calculation shall be adjusted as required for
first priority status pursuant to Section 17017.7 as that calculation
would have been made under the policies of the board in effect
immediately preceding September 1, 1998.
   17071.35.  Notwithstanding any other provisions of law, the
maximum school building capacity for each applicant district shall be
increased by the number of pupils reported by the Superintendent of
Public Instruction for that grade level pursuant to Section 42268.
This adjustment shall be calculated on the basis, at the district's
option, of either the district as a whole or the appropriate
attendance area.
   17071.40.  Each school on a year-round, multitrack calendar that
has a density of 200 or more pupils enrolled per acre, that is
located in a school district with 40 percent of its pupils attending
multitrack, year-round schools shall be exempted from the increase in
school building capacity required by Section 17071.35.  Nothing in
this section shall be construed as exempting the school from the
requirements of Section 17071.33.

      Article 3.  New Construction Eligibility Determination

   17071.75.  After a one-time initial report of existing school
building capacity has been completed, a school district's ongoing
eligibility for new construction funding shall be determined by
making all of the following calculations:
   (a) Each school district that applies to receive funding for new
construction shall calculate enrollment projections for the fifth
year beyond the fiscal year in which the application is made.
Projected enrollment shall be determined by utilizing the cohort
survival enrollment projection system, as defined and approved by the
board.  The board may supplement the cohort survival enrollment
                                               projection by the
number of unhoused pupils that are anticipated as a result of
dwelling units proposed pursuant to approved and valid tentative
subdivision maps.
   (b) Add the number of pupils that may be adequately housed in the
existing school building capacity of the applicant district as
determined pursuant to Article 2 (commencing with Section 17071.10)
to the number of pupils for which facilities were provided pursuant
to this chapter after the existing school building capacity was
determined pursuant to Article 2 (commencing with Section 17071.10).

   (c) Subtract the number of pupils pursuant to subdivision (b) from
the number of pupils determined pursuant to subdivision (a).
   (d) The calculations required to establish eligibility under this
article shall result in a distinction between the number of existing
unhoused pupils and the number of projected unhoused pupils.
   17071.76.  (a) Whenever the existing school building capacity in
any high school attendance area prevents another high school
attendance area from receiving the maximum per-unhoused-pupil grant
specified for the school district as a whole, the eligibility may be
computed separately for each high school attendance area.
   (b) For the purposes of eligibility, a school district may combine
two or more adjacent high school attendance areas pursuant to the
following conditions:
   (1) The funding eligibility is for the construction of a high
school, junior high school, or elementary school located or to be
located in any of those high school attendance areas.
   (2) The high school, junior high school, or elementary school to
be constructed is to serve pupils residing in each of those high
school attendance areas.
   (3) The combined eligibility reflects the eligibility to which
each of the high school attendance areas would otherwise be entitled,
reflecting the proportion of projected pupil enrollment in the
school to be constructed, as calculated under this chapter, from each
of those attendance areas.

      Article 4.  New Construction Grant Eligibility Determination

   17072.10.  (a) The board shall determine the applicant's maximum
total new construction grant eligibility by multiplying the number of
unhoused pupils calculated pursuant to Article 3 (commencing with
Section 17071.75) in each school district with an approved
application for new construction, by the per-unhoused-pupil grant as
follows:
   (1) Five thousand two hundred dollars ($5,200) for elementary
school pupils.
   (2) Five thousand five hundred dollars ($5,500) for middle school
pupils.
   (3) Seven thousand two hundred dollars ($7,200) for high school
pupils.
   (b) The board shall annually adjust the per-unhoused-pupil
apportionment to reflect construction cost changes, as set forth in
the statewide cost index for class B construction as determined by
the board.
   (c) The board may adopt regulations to be effective until July 1,
2000, that adjust the amounts identified in this section for
qualifying individuals with exceptional needs, as defined in Section
56026.  The regulations shall be amended after July 1, 2000, in
consideration of the recommendations provided pursuant to Section
17072.15.
   (d) The board may establish a single supplemental
per-unhoused-pupil grant in addition to the amounts specified in
subdivision (a) based on the statewide average marginal difference in
costs in instances where a project requires multilevel school
facilities due to limited acreage.  The district's application shall
demonstrate that a practical alternative site is not available.
   17072.12.  In addition to the amount provided in Section 17072.10,
the board may provide funding for assistance in site development and
acquisition if all of the following are met:
   (a) The amount of the site acquisition and development assistance
does not exceed 50 percent of the cost of site development to the
school district, plus the lesser of 50 percent of the site cost to
the school district or 50 percent of the appraised value of the site
at the time the complete application is submitted, whichever is less.

   (b) The school district certifies that there is no alternative
available site, or that the district plans to sell an available site
in order to use the proceeds of the sale for the purchase of the new
site.
   17072.15.  In conjunction with the State Department of Education
and the Department of Finance, the Legislative Analyst shall review
the method of funding the construction and modernization of school
facilities for special education pupils and the amount provided per
unhoused special education pupil pursuant to Sections 17072.10 and
17074.10.  Pursuant to this review, the Legislative Analyst shall
recommend modifications to this method that he or she deems to be
advisable on or before September 1, 1999.

      Article 5.  New Construction Funding Process

   17072.20.  (a) An applicant school district that has been
determined by the board to meet the eligibility requirements for new
construction funding set forth in Article 2 (commencing with Section
17071.10) or Article 3 (commencing with Section 17071.75) may submit
at any time a request to the board for a project apportionment for
all or a portion of the funding for which the school district is
eligible.
   (b) The application shall include, but shall not be limited to,
the school district's determination of the amount of state funding
that the district is otherwise eligible for relating to site
acquisition, site development, new construction, and hardship funding
provided pursuant to Article 8 (commencing with Section 17075.10),
if any.  The amount shall be reduced by the amount of the alternative
fee collected pursuant to subdivision (a) of Section 65995.7 of the
Government Code if a reimbursement election or agreement pursuant to
Section 65995.7 of the Government Code is not in effect.
   (c) The board shall verify and adjust, as necessary, and approve
the district's application.
   17072.25.  (a) The board shall adopt regulations to develop a
mechanism to rank approved applications for new construction funding.
  This mechanism shall be used to determine the priority of approved
applications when state funds are insufficient.
   (b) The ranking mechanism shall allocate priority points based
upon the percentages of currently and projected unhoused pupils
relative to the total population of the applicant district or
attendance area and the total number of currently and projected
unhoused pupils in an applicant district or attendance area.
   (c) The board may award priority points based on other factors
that in its judgment result in the most equitable distribution of
resources among applicants.  The additional factors may not
constitute greater than a 10-percent weight in the overall priority
ranking.
   17072.30.  Subject to the availability of funds, and to the
determination of priority pursuant to Section 17072.25, the board
shall apportion funds to an eligible school district only upon the
approval of the project by the Department of General Services
pursuant to the Field Act, as defined in Section 17281, and
certification by the school district that the required 50 percent
matching funds from local sources have been expended by the district
for the project, or have been deposited in the county fund, or will
be expended by the district by the time the project is completed, in
an amount at least equal to the proposed apportionment pursuant to
this chapter, prior to release of the state funds.
   17072.32.  For any project that has received an apportionment
pursuant to Section 17072.30, funding shall be released in amounts
equal to the amount of the local match upon certification by the
district that the district has entered into a binding contract for
completion of the approved project.
   17072.33.  In the case of site acquisition, a district may request
that the state's share of site assistance be provided to the
district in amounts equal to the amount of the local match when the
district enters escrow for a site included within a project.
   17072.35.  A grant for new construction may be used for any and
all costs necessary to adequately house new pupils in any approved
project, and those costs may only include the cost of design,
engineering, testing, inspection, plan checking, construction
management, site acquisition and development, demolition,
construction, acquisition and installation of portable classrooms,
landscaping, necessary utility costs, utility connections and other
fees, equipment including telecommunication equipment to increase
school security, furnishings, and the upgrading of electrical systems
or the wiring or cabling of classrooms in order to accommodate
educational technology.  A grant for new construction may also be
used to acquire an existing government or privately owned building,
or a privately financed school building, and for the necessary costs
of converting the government or privately owned building for public
school use.

      Article 6.  Modernization Eligibility Determination

   17073.10.  Each school district that desires to receive an
apportionment for modernization under this chapter shall submit an
application in a form, and in the number of copies, that the board
may require.
   17073.15.  A school district shall be eligible to receive an
apportionment for modernization of permanent school buildings that
are more than 25 years old , or in the case of portable classrooms
that are at least 20 years old, and that have not been previously
modernized with state funding.
   17073.20.  Funding may be approved for the modernization of any
permanent school building that is more than 25 years old, or, in the
case of any portable classroom that is more than 20 years old, as
described in Section 17071.30, and that prior to November 4, 1998,
had not been previously modernized with state funding.

      Article 7.  Modernization Apportionment

   17074.10.  (a) The board shall determine the total funding
eligibility of a school district for modernization funding by
multiplying the following amounts by each pupil of that grade level
housed in permanent school buildings that are at least 25 years old
or portable classrooms that are at least 20 years old, and that have
not been previously modernized with state funding:
   (1) Two thousand two hundred forty-six dollars ($2,246) for each
elementary pupil.
   (2) Two thousand three hundred seventy-six dollars ($2,376) for
each middle school pupil.
   (3) Three thousand one hundred ten dollars ($3,110) for each high
school pupil.
   (b) The board shall annually adjust the factors set forth in
subdivision (a) according to the adjustment for inflation set forth
in the statewide cost index for class B construction, as determined
by the board.
   (c) The board may adopt regulations to be effective until July 1,
2000, that adjust the amounts identified in this section for
qualifying individuals with exceptional needs, as defined in Section
56026.  The regulations shall be amended after July 1, 2000, in
consideration of the recommendations provided pursuant to Section
17072.15.
   (d) It is the intent of the Legislature that the amounts provided
pursuant to this article for school modernization do not include
funding for administrative and overhead costs.
   17074.15.  The board shall release disbursements to school
districts with approved applications for modernization, to the extent
state funds are available for the state's 80-percent share, and the
school district has provided its 20-percent local match.  Subject to
the availability of funds, the board shall apportion funds to an
eligible school district only upon the approval of the project by the
Department of General Services pursuant to the Field Act, as defined
in Section 17281, and evidence that the certification by the school
district that the required 20 percent matching funds from local
sources have been expended by the district for the project, or have
been deposited in the county fund or will be expended by the district
by the time of completion of the project, and evidence that the
district has entered into a binding contract for the completion of
that project.  If state funds are insufficient to fund all qualifying
school districts, the board shall fund all qualifying school
districts in the order in which the application for funding was
approved by the board.
   17074.20.  As a condition for the receipt of funds under this
article, a school district shall ensure that all buildings modernized
comply with Sections 17212, 17212.5, and 17213.
   17074.25.  A modernization apportionment may be used for an
improvement to extend the useful life of, or to enhance the physical
environment of, the school.  The improvement may only include the
cost of design, engineering, testing, inspection, plan checking,
construction management, demolition, construction, the replacement of
portable classrooms, necessary utility costs, utility connection and
other fees, the purchase and installation of air-conditioning
equipment and insulation materials and related costs, furniture and
equipment, including telecommunication equipment to increase school
security, fire safety improvements, playground safety improvements,
the identification, assessment, or abatement of hazardous asbestos,
seismic safety improvements, and the upgrading of electrical systems
or the wiring or cabling of classrooms in order to accommodate
educational technology.  A modernization grant may not be used for
costs associated with acquisition and development of real estate or
for routine maintenance and repair.

      Article 8.  Hardship Application

   17075.10.  (a) A school district may apply for hardship assistance
in cases of extraordinary circumstances.
   (b) A school district applying for hardship state funding under
this article shall comply with either paragraph (1) or (2).
   (1) Demonstrate both of the following:
   (A) That due to extreme financial, disaster-related, or other
hardship the school district has unmet need for pupil housing.
   (B) That the school district is not financially capable of
providing the matching funds otherwise required for state
participation, that the district has made all reasonable efforts to
impose all levels of local debt capacity and development fees, and
that the school district is, therefore, unable to participate in the
program pursuant to this chapter except as set forth in this article.

   (2) Demonstrate that due to unusual circumstances that are beyond
the control of the district, excessive costs need to be incurred in
the construction of school facilities.
   17075.15.  (a) From funds available from any bond act for the
purpose of funding facilities for school districts with a financial
hardship, the board may provide other construction, modernization, or
relocation assistance as set forth in this chapter or Chapter 14
(commencing with Section 17085) to the extent that severe
circumstances may require, and may adjust or defer the local
financial participation, as pupil health and safety considerations
require to the extent that bond act funds are provided for this
purpose.
   (b) The board shall adopt regulations for determining the amount
of funding that may be provided to a district, and the eligibility
and prioritization of funding, under this article.
   (1) The regulations shall include a method for determining the
amount, and sources, of financing that the school district could
reasonably provide for school facilities.  Further, the regulations
shall also specify a method for determining required levels of local
effort to obtain matching funds.
   (2) The value of any unused local general obligation debt capacity
and developer fees added to the needs analysis to reflect the
district's financial hardship, available for the purposes of school
facilities financing shall be considered when evaluating available
resources for the purposes of the determination described in
paragraph (1).

      Article 9.  Program Accountability

   17076.10.  (a) A school district that has received any funds
pursuant to this chapter shall submit a summary report of expenditure
of state funds and of district matching funds annually until all
state funds and district matching funds are expended, and shall then
submit a final report to the board.  The board may require an audit
of these reports or other district records to ensure that all funds
received pursuant to this chapter are expended in accordance with
program requirements.
   (b) If the board finds that a participating school district has
made no substantial progress towards increasing its pupil capacity or
renovating its facilities within 18 months of the receipt of any
funding pursuant to this chapter, the board shall rescind the
apportionment in an amount equal to the unexpended funds.
   (c) If the board, after the review of expenditures or audit has
been conducted pursuant to subdivision (a), determines that a school
district failed to expend funds in accordance with this chapter, the
department shall notify the school district of the amount that must
be repaid to the 1998 State School Facilities Fund within 60 days.
If the school district fails to make the required payment within 60
days, the department shall notify the Controller and the school
district in writing, and the Controller shall deduct an amount equal
to the amount received by the school district under this subdivision,
from the school district's next principal apportionment or
apportionments of state funds to the school district, other than
basic aid apportionments required by Section 6 of Article IX of the
California Constitution.  Any amounts obtained by the Controller
shall be deposited into the 1998 State School Facilities Fund.
   (d) If a school district has received an apportionment, but has
not met the criteria to have funds released pursuant to Section
17072.32 or 17074.15 within 18 months, the board shall rescind the
apportionment and deny the district's application.
  SEC. 5.  Section 17260 of the Education Code is amended to read:
   17260.  As used in  this article "school buildings"  shall have
the same meaning as in Section 17283.
  SEC. 6.  Section 17261 of the Education Code is repealed.
  SEC. 7.  Section 17261 is added to the Education Code, to read:
   17261.  The State Allocation Board shall obtain construction plans
for school buildings appropriate for school districts in various
climates and geographical conditions of the state.  The plans shall
be composed of plans designed to meet the needs of school districts
requiring school buildings of various sizes.  The plans may include
landscape suggestions.
  SEC. 8.  Section 17262 of the Education Code is amended to read:
   17262.  Any school district may request sets of  the plans and
specifications obtained by the State Allocation Board as appropriate
for use in constructing a school building of the type desired by the
district.  The plans and specifications shall be furnished to the
school district subject to the payment by the school district of the
actual expense incurred by the State Allocation Board, but  that
payment shall not exceed more than 2 percent of the total cost of the
project.  Any payments received for the plans and specifications
shall be paid into the 1998 State School Facilities Fund.
  SEC. 9.  Section 17303 of the Education Code is amended to read:
   17303.  (a) The Department of General Services shall establish one
or more methods to ensure that each application has been completed
sufficiently by the applicant to enable the plan review to be
performed.
   (b) Upon receipt of a complete application, the Department of
General Services shall inform the applicant of the period of time
that it anticipates to elapse prior to commencing review of the
applicant's plans.  Within 10 days of being so notified, the
applicant shall make an election to either use the Department of
General Services for the review of the applicant's plan or, request
the plan review be performed by one or more qualified plan review
firms pursuant to Sections 17305 and 17306.  If the applicant elects
to use the services of the Department of General Services for review
of the applicant's plan, the department, as necessary to expedite
review of the applicant's plans, shall do one or more of the
following:
   (1) Contract for assistance from one or more qualified plan review
firms pursuant to Section 17305.
   (2) Employ additional staff on a temporary basis.
   (3) Maximize the use of department staff through the use of
overtime or other appropriate means.
   (4) Any other action determined by the department to have the
effect of expediting the review and approval process.
   (c) Each application shall identify, for purposes of receiving the
notifications required under this subdivision, an employee of the
applicant school district and either the applicant's architect or
structural engineer.  The Department of General Services immediately
shall notify that employee, and the identified architect or
structural engineer, when each of the following steps in the plan
review process occurs:
   (1) The department requests the applicant's architect or
structural engineer to correct or complete any part of the
application.
   (2) An application number is assigned to the application.
   (3) Review of the applicant's plans is commenced.
   (4) Review of the applicant's plans is completed and the
department returns the plans to the architect or structural engineer
for correction.
   (5) Corrected plans are returned to the department by the
applicant's architect or structural engineer for final review and
approval.
   (6) The department approves the plans and causes a final record
set of the plans to be printed in accordance with Section 17304.
   (d) The Department of General Services may provide additional
notifications to applicants as it deems necessary.
  SEC. 10.  Section 17305 of the Education Code is amended to read:
   17305.  (a) Notwithstanding Section 14952 of the Government Code,
the Department of General Services shall contract with a sufficient
number of qualified plan review firms for assistance in performing
the plan review required under this article or Article 5 (commencing
with Section 17350).
   (b) For purposes of this article, "qualified plan review firm"
means an individual, firm, or the building official of a city, a
county, or a city and county, as defined in Section 18949.27 of the
Health and Safety Code or the authorized representative of the
building official that is identified by the Department of General
Services as having appropriate expertise and knowledge of the
requirements that apply to school buildings under this article.  The
department shall establish and maintain a list of the individuals and
firms, and building officials or the authorized representatives of
building officials so identified, and shall make that list available,
upon request, to school districts and other interested parties.
  SEC. 11.  Section 17306 of the Education Code is amended to read:
   17306.  (a) Upon submitting a complete application for review
under this article, the applicant may request that the Department of
General Services refer the documents necessary for the review of that
application to a qualified plan review firm operating under contract
with the department pursuant to Section 17305.  The department
immediately shall grant the request and refer the necessary documents
to a qualified plan review firm if the applicant so requests.
   Upon completing the review, the qualified plan review firm shall
submit the documents referred to it for the review of the
application, together with the results of its review, to the
Department of General Services.
   (b) The Department of General Services shall establish a procedure
governing the use by applicants of the review process alternative
described in this section, including, but not limited to, provisions
restricting the use of qualified plan review firms on the basis of
conflict of interest.
  SEC. 12.  Section 17620 of the Education Code is amended to read:
   17620.  (a) (1) The governing board of any school district is
authorized to levy a fee, charge, dedication, or other requirement
against any construction within the boundaries of the district, for
the purpose of funding the construction or reconstruction of school
facilities, subject to any limitations set forth in Chapter 4.9
(commencing with Section 65995) of Division 1 of Title 7 of the
Government Code.  This fee, charge, dedication, or other requirement
may be applied to construction only as follows:
   (A) To new commercial and industrial construction.  The chargeable
covered and enclosed space of commercial or industrial construction
shall not be deemed to include the square footage of any structure
existing on the site of that construction as of the date the first
building permit is issued for any portion of that construction.
   (B) To new residential construction.
   (C) To other residential construction, only if the resulting
increase in assessable space exceeds 500 square feet.  The
calculation of the "resulting increase in assessable space" for this
purpose shall reflect any decrease in assessable space in the same
residential structure that also results from that construction.
Where authorized under this paragraph, the fee, charge, dedication,
or other requirement is applicable to the total resulting increase in
assessable space.
   (D) To location, installation, or occupancy of manufactured homes
and mobilehomes, as defined in Section 17625.
   (2) For purposes of this section, "construction" and "assessable
space" have the same meaning as defined in Section 65995 of the
Government Code.
   (3) For purposes of this section and Section 65995, "construction
or reconstruction of school facilities" does not include any item of
expenditure for any of the following:
   (A) The regular maintenance or routine repair of school buildings
and facilities.
   (B) The inspection, sampling, analysis, encapsulation, or removal
of asbestos-containing materials, except where incidental to school
facilities construction or reconstruction for which the expenditure
of fees or other consideration collected pursuant to this section is
not prohibited.
   (C) The purposes of deferred maintenance described in Section
17582.
   (4) The appropriate city or county may be authorized, pursuant to
contractual agreement with the governing board, to collect and
otherwise administer, on behalf of the school district, any fee,
charge, dedication, or other requirement levied under this
subdivision.  In the event of any agreement authorizing a city or
county to collect that
fee, charge, dedication, or other requirement in any area within the
school district, the certification requirement set forth in
subdivision (b) or (c), as appropriate, is deemed to be complied with
as to any residential construction within that area upon receipt by
that city or county of payment of the fee, charge, dedication, or
other requirement imposed on that  residential construction.
   (5) Fees or other consideration collected pursuant to this section
may be expended by a school district for the costs of performing any
study or otherwise making the findings and determinations required
under subdivisions (a), (b), and (d) of Section 66001 of the
Government Code, or in preparing the school facilities needs analysis
described in Section 65995.6 of the Government Code.  In addition,
an amount not to exceed, in any fiscal year, 3 percent of the fees
collected in that fiscal year pursuant to this section may be
retained by the school district, city, or county, as appropriate, for
reimbursement of the administrative costs incurred by that entity in
collecting the fees.  When any city or county is entitled, under  an
agreement as described in paragraph  (4), to compensation in excess
of that amount, the payment of that excess compensation shall be made
from other revenue sources available to the school district.  For
purposes of this paragraph, "fees collected in that fiscal year
pursuant to this section" does not include any amount in addition to
the amounts specified in paragraphs (1) and (2) of subdivision (b) of
Section 65995 of the Government Code.
   (b) A city or county, whether general law or chartered, may not
issue a building permit for any  construction absent certification by
the appropriate school district that any fee, charge, dedication, or
other requirement levied by the governing board of that school
district has been complied with, or of the district's determination
that the fee, charge, dedication, or other requirement does not apply
to the construction.  The school district shall issue the
certification immediately upon compliance with the fee, charge,
dedication, or other requirement.
   (c) If, pursuant to subdivision (c) of Section 17621, the
governing board specifies that the fee, charge, dedication, or other
requirement levied under subdivision (a) is subject to the
restriction set forth in subdivision (a) of Section 66007 of the
Government Code, the restriction set forth in subdivision (b) of this
section does not apply.  In that event, however, a city or county,
whether general law or chartered, may not conduct a final inspection
or issue a certificate of occupancy, whichever is later, for any
residential construction absent certification by the appropriate
school district of compliance by that residential construction with
any fee, charge, dedication, or other requirement levied by the
governing board of that school district pursuant to subdivision (a).

   (d) Neither subdivision (b) nor (c) shall apply to a city or
county as to any fee, charge, dedication, or other requirement as
described in subdivision (a), or as to any increase in that fee,
charge, dedication, or other requirement, except upon the receipt by
that city or county of notification of the adoption of, or increase
in, the fee or other requirement in accordance with subdivision (c)
of Section 17621.
  SEC. 13.  Section 81134 is added to the Education Code, to read:
   81134.  (a) The Department of General Services shall establish one
or more methods to ensure that each application has been completed
sufficiently by the applicant to enable the plan review to be
performed.
   (b) Upon receipt of a complete application, the Department of
General Services shall inform the applicant of the period of time
that it anticipates to elapse prior to commencing review of the
applicant's plans.  Within 10 days of being so notified, the
applicant shall make an election to either use the Department of
General Services for the review of the applicant's plans or, request
the plan review be performed by one or more qualified plan review
firms pursuant to Sections 81135 and 81136.  If the applicant elects
to use the services of the Department of General Services for review
of the applicant's plans, the department shall, as necessary to
expedite review of the applicant's plans do one or more of the
following:
   (1) Contract for assistance from one or more qualified plan review
firms pursuant to Sections 81135 and 81136.
   (2) Employ additional staff on a temporary basis.
   (3) Maximize the use of department staff through the use of
overtime or other appropriate means.
   (4) Any other action determined by the department to have the
effect of expediting the review and approval process.
   (c) Each application shall identify, for purposes of receiving the
notifications required under this subdivision, an employee of the
applicant community college district and either the applicant's
architect or structural engineer.  The Department of General Services
immediately shall notify that employee, and the identified architect
or structural engineer, when each of the following steps in the plan
review process occurs:
   (1) The department requests the applicant's architect or
structural engineer to correct or complete any part of the
application.
   (2) An application number is assigned to the application.
   (3) Review of the applicant's plans is commenced.
   (4) Review of the applicant's plans is completed and the
department returns the plans to the architect or structural engineer
for correction.
   (5) Corrected plans are returned to the department by the
applicant's architect or structural engineer for final review and
approval.
   (6) The department approves the plans and causes a final record
set of the plans to be printed in accordance with Section 17304.
   (d) The Department of General Services may provide additional
notifications to applicants as it deems necessary.
  SEC. 14.  Section 81135 is added to the Education Code, to read:
   81135.  (a) Notwithstanding Section 14952 of the Government Code,
the Department of General Services shall contract with sufficient
numbers of qualified plan review firms for assistance in performing
the plan review required under this article or Article 5 (commencing
with Section 17350).
   (b) For purposes of this article, "qualified plan review firm"
means an individual, firm, or the building official of a city,
county, or city and county, as defined in Section 18949.27 of the
Health and Safety Code or the authorized representative of that
building official that is identified by the Department of General
Services as having appropriate expertise and knowledge of the
requirements that apply to school buildings under this article.  The
department shall establish and maintain a list of the individuals
firms, and building officials or the authorized representatives of
building officials so identified, and shall make that list available,
upon request, to community college districts and other interested
parties.
  SEC. 15.  Section 81136 is added to the Education Code, to read:
   81136.  (a) Upon submitting a complete application for review
under this article, the applicant may request that the Department of
General Services refer the documents necessary for the review of that
application to a qualified plan review firm operating under contract
with the department pursuant to Section 81135.  The department
immediately shall grant the request and refer the necessary documents
to a qualified plan review firm if the applicant so requests.  Upon
completing the review, the qualified plan review firm shall submit
the documents referred to it for the review of the application,
together with the results of its review, to the Department of General
Services.
   (b) The Department of General Services shall establish a procedure
governing the use by applicants of the review process alternative
described in this section, including, but not limited to, provisions
restricting the use of qualified plan review firms on the basis of
conflict of interest.
  SEC. 16.  Part 68 (commencing with Section 100400) is added to the
Education Code, to read:

      PART 68.  PUBLIC EDUCATION BONDS
      CHAPTER 1.  CLASS SIZE REDUCTION KINDERGARTEN-UNIVERSITY PUBLIC
EDUCATION FACILITIES BOND ACT OF 1998

   100400.  This part shall be known and may be cited as the Class
Size Reduction Kindergarten-University Public Education Facilities
Bond Act of 1998.
   100401.  The incorporation of, or reference to, any provisions of
California statutory law in this part includes all acts amendatory
thereof and supplementary thereto.
   100403.  (a) Bonds in the total amount of nine billion  two
hundred million dollars ($9,200,000,000), not including the amount of
any refunding bonds issued in accordance with Chapter 2 (commencing
with Section 100410) and Chapter 3 (commencing with Section 100450),
or so much thereof as is necessary, may be issued and sold to provide
a fund to be used for carrying out the purposes expressed in this
part and to reimburse the General Obligation Bond Expense Revolving
Fund pursuant to Section 16724.5 of the Government Code. The bonds,
when sold, shall be and constitute a valid and binding obligation of
the State of California, and the full faith and credit of the State
of California is hereby pledged for the punctual payment of the
principal of, and interest on, the bonds as the principal and
interest become due and payable.
   (b) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the State School Building Finance Committee established
by Section 15909 and the Higher Education Facilities Finance
Committee established pursuant to Section 67353 at any different
times necessary to service expenditures required by the
apportionments.
   100405.  For purposes of this part, "Chapter 12" means Chapter 12
(commencing with Section 17000) of Part 10 and "Chapter 12.5" means
Chapter 12.5 (commencing with Section 17070.10) of Part 10.

      CHAPTER 2.  KINDERGARTEN THROUGH 12TH GRADE
      Article 1.  Kindergarten Through 12th Grade School Facilities
Program Provisions

   100410.  (a) Three billion three hundred fifty million dollars
($3,350,000,000) of the proceeds of bonds issued and sold pursuant to
this part shall be deposited in the 1998 State School Facilities
Fund, which is established by Section 17070.40, and allocated by the
State Allocation Board pursuant to this chapter.  Before requesting
the sale of bonds pursuant to Section 100432 for deposit in the State
School Facilities Fund, the State Allocation Board shall request,
pursuant to Section 100432, the sale of bonds sufficient to finance
all projects for which application was made pursuant to the Leroy F.
Greene State School Building Lease-Purchase Law of 1976 (Chapter 12
(commencing with Section 17000) of Part 10) and for which an
application was approved for construction, but funding was not
available, prior to  November 4, 1998.
   (b) In addition to the amount specified in subdivision (a), three
billion three hundred fifty million dollars ($3,350,000,000) of the
bonds authorized by this chapter shall only be issued and sold
pursuant to this chapter on or after July 1, 2000, and the proceeds
of those bonds shall be deposited in the 1998 State School Facilities
Fund and allocated by the State Allocation Board pursuant to this
chapter.
   100415.  (a) All moneys deposited in the 1998 State School
Facilities Fund pursuant to this chapter shall be available and,
notwithstanding any other provision of law to the contrary, are
hereby appropriated to provide aid to school districts of the state
in accordance with the Leroy F. Greene State School Building
Lease-Purchase Law of 1976 (Chapter 12 (commencing with Section
17000) of Part 10) and in accordance with the Leroy F. Greene School
Facilities Act of 1998 (Chapter 12.5 (commencing with Section
17070.10) of Part 10), to provide aid to school districts, county
superintendents of schools, and county boards of education of the
state in accordance with Section 100420, to provide funds to repay
any money advanced or loaned to the 1998 State School Facilities Fund
under any act of the Legislature, together with interest provided
for in that act, and to reimburse the General Obligation Bond Expense
Revolving Fund pursuant to Section 16724.5 of the Government Code.
   (b) The bonds issued and sold pursuant to this chapter shall fund
kindergarten and grades 1 through 12, inclusive, school constructions
for a four-year period.
   100420.  (a) Of the proceeds from the sale of bonds, issued and
sold pursuant to this chapter, as specified in subdivision (a) of
Section 100410, not more than three billion three hundred fifty
million dollars ($3,350,000,000) shall be allocated beginning in the
1998-99 fiscal year in accordance with the following schedule:
   (1) Not less than one billion three hundred fifty million dollars
($1,350,000,000) for project funding related to the growth in
enrollment of applicant school districts under Chapter 12 and Chapter
12.5 that have incurred or will incur enrollment increases.
   (2) Not less than eight hundred million dollars ($800,000,000) for
the reconstruction or modernization of facilities pursuant to
Chapter 12 and Chapter 12.5.
   (3) Not more than five hundred million dollars ($500,000,000)
shall be deposited in the Public School Critical Hardship Account,
which is hereby established in the 1998 State School Facilities Fund
and shall be allocated by the State Allocation Board to fund critical
hardships as defined in Chapter 12.5.  These funds may be expended
for the acquisition of portable classrooms for use in accordance with
Chapter 14 (commencing with Section 17085) of Part 10.
   (4) (A) Not more than seven hundred million dollars ($700,000,000)
may be allocated to assist school districts with site acquisition
and facilities-related costs of kindergarten and grades 1 to 3,
inclusive, that are in the Class Size Reduction Program contained in
Chapter 6.10 (commencing with Section 52120) of Part 28 and Chapter
19 (commencing with Section 17200) of Part 10, and to assist
districts with the restoration of facilities that previously
accommodated other programs and were displaced as a result of the
implementation of class size reduction.  On and after July 1, 2000,
if applications for the total funds available under this paragraph
have not been filed with the State Allocation Board, the funds for
which applications have not been received may be allocated by the
board to other high priority needs as the board determines.  On and
after July 1, 2003, any funds not allocated are available for other
high priority needs.
   (B) The funds allocated in subparagraph (A) shall be allocated to
the State Department of Education to provide class size reduction
facilities grants necessary to implement the K-3 Class Size Reduction
Program established pursuant to Chapter 6.10 (commencing with
Section 52120) of Part 28 and Chapter 19 (commencing with Section
17200) of Part 10.  The department shall certify to the State
Allocation Board the amount of funds needed for this purpose.  The
board shall transfer the amount of funds needed to the department.
From these funds, the department shall award eligible districts forty
thousand dollars ($40,000) for each new option one class established
for class size reduction for which the district had not previously
received funding under class size reduction facilities programs.
   (C) The remaining funds provided pursuant to subparagraph (A)
shall be to provide funding for schoolsites that were eligible to
receive a class size reduction land-locked waiver pursuant to Section
52122.6.  The funds may be provided to districts to provide 50
percent of the cost of funding a facilities mitigation plan developed
for the impacted site pursuant to Section 52122.7.
   (D) Any funds not expended pursuant to subparagraphs (A), (B), or
(C) shall be allocated to districts that request funding of forty
thousand dollars ($40,000) for each teaching station that (1) was
displaced as a result of the implementation of class size reduction
and (2) received less than forty thousand dollars ($40,000) per
teaching station in 1996-97 pursuant to Chapter 19 (commencing with
Section 17200) of Part 10.  Programs for which teaching stations may
be restored may include child care, extended day care, school
libraries, computer labs, and special education classrooms.
   (b) Of the proceeds from the sale of bonds issued and sold
pursuant to this chapter, as specified in subdivision (b) of Section
100410, not more than three billion three hundred fifty million
dollars ($3,350,000,000) shall be allocated beginning in the 2000-01
fiscal year in accordance with the following schedule:
   (1) Not less than one billion five hundred fifty million dollars
($1,550,000,000) for project funding related to the growth in
enrollment of applicant school districts under Chapter 12.5 that have
incurred or will incur enrollment increases.
   (2) Not less than one billion three hundred million dollars
($1,300,000,000) for the reconstruction or modernization of
facilities pursuant to Chapter 12.5.
   (3) Not more than five hundred million dollars ($500,000,000)
shall be deposited in the Public School Critical Hardship Account in
the 1998 State School Facilities Fund and shall be allocated by the
State Allocation Board to fund critical hardships as defined in
Chapter 12.5.  These funds may be expended for the acquisition of
portable classrooms for use in accordance with Chapter 14 (commencing
with Section 17085) of Part 10.
   (c) Districts may use funds allocated pursuant to paragraph (2) of
subdivision (a) and paragraph (2) of subdivision (b) for one or more
of the following purposes in accordance with Chapter 12.5:
   (1) The purchase and installation of air-conditioning equipment
and insulation materials, and related costs.
   (2) Construction projects or the purchase of furniture or
equipment designed to increase school security or playground safety.

   (3) The identification, assessment, or abatement in school
facilities of hazardous asbestos.
   (4) Project funding for high priority roof replacement projects.
   (5) Any other renovation or modernization of facilities pursuant
to Chapter 12.5.
   (d) Funds allocated pursuant to paragraph (1) of subdivision (a)
and paragraph (1) of subdivision (b) may be utilized to provide new
construction grants, without regard to funding priorities, for
applicant county boards of education under Chapter 12.5 that are
eligible for that funding or classrooms for severely handicapped
pupils and funding for classrooms for county community school pupils.

   (e) (1) The Legislature may amend this section to adjust the
minimum funding amounts specified in paragraphs (1) and (2) of
subdivision (a) and the maximum funding amounts specified in
paragraphs (3) and (4) of subdivision (a), and to adjust the minimum
funding amounts specified in paragraphs (1) and (2) of subdivision
(b) and the maximum funding amount specified in paragraph (3) of
subdivision (b), by either of the following methods:
   (A) By a statute, passed in each house of the Legislature by
rollcall vote entered in the respective journals, by not less than
two-thirds of the membership in each house concurring, if the statute
is consistent with, and furthers the purposes of, this chapter.
   (B) By a statute that becomes effective only when approved by the
voters.
   (2) Amendments pursuant to this subdivision may adjust the amounts
to be expended pursuant to paragraphs (1) to (4), inclusive, of
subdivision (a) or paragraphs (1) to (3), inclusive, of subdivision
(b) or both, but may not increase or decrease the total amount to be
expended pursuant to either subdivision.

      Article 2.  Kindergarten Through 12th Grade School Facilities
Fiscal Provisions

   100425.  (a) Bonds in the total amount of six billion seven
hundred million dollars  ($6,700,000,000), not including the amount
of any refunding bonds issued in accordance with Section 100444, or
so much thereof as is necessary, may be issued and sold to provide a
fund to be used for carrying out the purposes expressed in this
chapter and to reimburse the General Obligation Bond Expense
Revolving Fund pursuant to Section 16724.5 of the Government Code.
The bonds, when sold, shall be and constitute a valid and binding
obligation of the State of California, and the full faith and credit
of the State of California is hereby pledged for the punctual payment
of the principal of, and interest on, the bonds as the principal and
interest become due and payable.
   (b) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the State School Building Finance Committee established
pursuant to Section 15909 at any different times necessary to
service expenditures required by the apportionments.
   100427.  The State School Building Finance Committee, established
by Section 15909 and composed of the Governor, the Controller, the
Treasurer, the Director of Finance, and the Superintendent of Public
Instruction, or their designated representatives, all of whom shall
serve thereon without compensation, and a majority of whom shall
constitute a quorum, is continued in existence for the purpose of
this chapter.  The Treasurer shall serve as chairperson of the
committee.  Two Members of the Senate appointed by the Senate
Committee on Rules, and two Members of the Assembly appointed by the
Speaker of the Assembly, shall meet with and provide advice to the
committee to the extent that the advisory participation is not
incompatible with their respective positions as Members of the
Legislature.  For the purposes of this chapter, the Members of the
Legislature shall constitute an interim investigating committee on
the subject of this chapter and, as that committee, shall have the
powers and duties imposed upon those committees by the Joint Rules of
the Senate and the Assembly.  The Director of Finance shall provide
the assistance to the committee as it may require.  The Attorney
General of the state is the legal adviser of the committee.
   100430.  (a) The bonds authorized by this chapter shall be
prepared, executed, issued, sold, paid, and redeemed as provided in
the State General Obligation Bond Law (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code), and all of the provisions of that law, except Section 16727 of
the Government Code, apply to the bonds and to this chapter and are
hereby incorporated in this chapter as though set forth in full in
this chapter.
   (b) For purposes of the State General Obligation Bond Law, the
State Allocation Board is designated the "board" for purposes of
administering the 1998 State School Facilities Fund.
   100432.  Upon request of the State Allocation Board from time to
time, supported by a statement of the apportionments made and to be
made for the purposes described in Sections 100415 and 100420, the
State School Building Finance Committee shall determine whether or
not it is necessary or desirable to issue bonds authorized pursuant
to this chapter in order to fund the apportionments and, if so, the
amount of bonds to be issued and sold.  Successive issues of bonds
may be authorized and sold to fund those apportionments
progressively, and it is not necessary that all of the bonds
authorized to be issued be sold at any one time.
   100434.  There shall be collected each year and in the same manner
and at the same time as other state revenue is collected, in
addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year.  It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act which is necessary to collect that additional sum.
   100435.  Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this chapter, an amount that will equal
the total of the following:
   (a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this chapter, as the
principal and interest become due and payable.
   (b) The sum necessary to carry out Section 100440, appropriated
without regard to fiscal years.
   100436.  The State Allocation Board may request the Pooled Money
Investment Board to make a loan from the Pooled Money Investment
Account or any other approved form of interim financing, in
accordance with Section 16312 of the Government Code, for the purpose
of carrying out this chapter.  The amount of the request shall not
exceed the amount of the unsold bonds that the committee, by
resolution, has authorized to be sold for the purpose of carrying out
this chapter.  The board shall execute any documents required by the
Pooled Money Investment Board to obtain and repay the loan.  Any
amounts loaned shall be deposited in the fund to be allocated by the
board in accordance with this chapter.
   100438.  Notwithstanding any other provision of this chapter, or
of the State General Obligation Bond Law, if the Treasurer sells
bonds pursuant to this chapter that include a bond counsel opinion to
the effect that the interest on the bonds is excluded from gross
income for federal tax purposes, subject to designated conditions,
the Treasurer may maintain separate accounts for the investment of
bond proceeds and for the investment earnings on those proceeds.  The
Treasurer may use or direct the use of those proceeds or earnings to
pay any rebate, penalty, or other payment required under federal law
or take any other action with respect to the investment and use of
those bond proceeds required or desirable under federal law to
maintain the tax-exempt status of those bonds and to obtain any other
advantage under federal law on behalf of the funds of this state.
   100440.  For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds that
have been authorized by the State School Building Finance Committee
to be sold for the purpose of carrying out this chapter.  Any amounts
withdrawn shall be deposited in the 1998 State School Facilities
Fund consistent with this chapter.  Any money made available under
this section shall be returned to the General Fund, plus an amount
equal to the interest that the money would have earned in the Pooled
Money Investment Account, from proceeds received from the sale of
bonds for the purpose of carrying out this chapter.
           100442.  All money deposited in the 1998 State School
Facilities Fund, that is derived from premium and accrued interest on
bonds sold shall be reserved in the fund and shall be available for
transfer to the General Fund as a credit to expenditures for bond
interest.
   100444.  The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of Chapter 4 of Part 3 of Division 4
of Title 2 of the Government Code, which is a part of the State
General Obligation Bond Law.  Approval by the voters of the state for
the issuance of the bonds described in this chapter includes the
approval of the issuance of any bonds issued to refund any bonds
originally issued under this chapter or any previously issued
refunding bonds.
   100446.  The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this chapter are
not "proceeds of taxes" as that term is used in Article XIIIB of the
California Constitution, the disbursement of these proceeds is not
subject to the limitations imposed by that article.

      CHAPTER 3.  HIGHER EDUCATION FACILITIES
      Article 1.  Program Provision

   100450.  The Legislature finds and declares all of the following:

   (a) California's economic and social prosperity relies on a higher
education system that keeps pace with California's growth.  In the
coming decades, the state's economic prosperity will depend on
increasing the productivity of the work force and on the ability to
compete successfully in the world marketplace.
   (b) The system of public higher education in this state includes
the University of California, the Hastings College of the Law, the
California State University, the California Community Colleges, and
their respective off-campus centers.  Each of these institutions
plays a vital role in maintaining California's dominance in higher
education in the United States.
   (c) Over the last several years, studies have been completed by
the California Postsecondary Education Commission, the University of
California, the California State University, and the California
Community Colleges to assess their long-term and short-term capital
needs.  Those studies demonstrate that the long-term and short-term
needs total, in the aggregate, seven hundred fifty million dollars
($750,000,000) per year into the next century.
   (d) Proceeds from the sale of bonds issued and sold pursuant to
this chapter may be used to fund  construction on existing or new
campuses and off-campus centers, including the construction of
buildings and the acquisition of related fixtures, the renovation and
reconstruction of facilities, site acquisition, the equipping of
new, renovated, or reconstructed facilities, which equipment shall
have an average useful life of 10 years; and to provide funds for the
payment of preconstruction costs, including, but not limited to,
preliminary plans and working drawings at the University of
California, the Hastings College of the Law, the California State
University and the California Community Colleges.
   (e) The purposes of this article include assisting in meeting the
capital outlay financing needs of California's public higher
education system.
   100455.  (a) Two billion five hundred million dollars
($2,500,000,000) of the proceeds of bonds issued and sold pursuant to
this part shall be deposited in the 1998 Higher Education Capital
Outlay Bond Fund which is hereby established in the State Treasury.
These funds shall be available for expenditure when appropriated.
   (b) One billion two hundred fifty million dollars ($1,250,000,000)
of the bonds described in subdivision (a), shall only be issued and
sold pursuant to this chapter on or after July 1, 2000.
   100457.  (a) Of the amount of bonds issued and sold pursuant to
subdivision (b) of Section 100455, one hundred sixty-five million
dollars ($165,000,000) shall be allocated in the 2000-01 fiscal year
to be available only for the following purposes:
   (1) The development of new campuses of the University of
California.
   (2) The development of new campuses, small campuses with
enrollments of less than 5,000 full-time equivalent students, and
off-campus centers at the California State University and the
California Community Colleges.
   (b) The amount of the allocation of funds required pursuant to
this section for the development of new campuses may be reduced by a
future legislative act if the Legislature finds that state funds have
been provided from sources other than the proceeds of bonds for
capital outlay costs.  The reduction shall be limited to the amount
actually provided from sources other than bond proceeds.
   100460.  The Higher Education Facilities Finance Committee
established pursuant to Section 67353 is hereby authorized to create
a debt or debts, liability or liabilities, of the State of California
pursuant to this chapter for the purpose of providing funds to aid
the University of California, the Hastings College of the Law, the
California State University, and the California Community Colleges.

      Article 2.  Higher Education Fiscal Provisions

   100500.  (a) Bonds in the total amount of two billion five hundred
million dollars ($2,500,000,000), not including the amount of any
refunding bonds issued in accordance with Section 100555, or so much
thereof as is necessary, may be issued and sold to provide a fund to
be used for carrying out the purposes expressed in this chapter and
to reimburse the General Obligation Bond Expense Revolving Fund
pursuant to Section 16724.5 of the Government Code.  The bonds, when
sold, shall be and constitute a valid and binding obligation of the
State of California, and the full faith and credit of the State of
California is hereby pledged for the punctual payment of the
principal of, and interest on, the bonds as the principal and
interest become due and payable.
   (b) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the Higher Education Facilities Finance Committee
established pursuant to Section 67353 at any different times
necessary to service expenditures required by the apportionments.
   100510.  (a) The bonds authorized by this chapter shall be
prepared, executed, issued, sold, paid, and redeemed as provided in
the State General Obligation Bond Law (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code), and all of the provisions of that law, except Section 16727 of
the Government Code, apply to the bonds and to this chapter and are
hereby incorporated in this chapter as though set forth in full in
this chapter.
   (b) For the purposes of the State General Obligation Bond Law,
each state agency administering an appropriation of the 1998 Higher
Education Capital Outlay Bond Fund is designated as the "board" for
projects funded pursuant to this chapter.
   (c) The proceeds of the bonds issued and sold pursuant to this
chapter shall be available for the purpose of funding aid to the
University of California, the Hastings College of the Law, the
California State University, and the California Community Colleges,
for the construction on existing or new campuses, and their
respective off-campus centers, including the construction of
buildings and the acquisition of related fixtures, renovation, and
reconstruction of facilities, for the acquisition of sites upon which
these facilities are to be constructed, for the equipping of new,
renovated, or reconstructed facilities, which equipment shall have a
useful life of at least 10 years, to provide funds for payment of
preconstruction costs, including, but not limited to, preliminary
plans and working drawings.
   100520.  The Higher Education Facilities Finance Committee
established pursuant to Section 67353 shall authorize the issuance of
bonds under this chapter only to the extent necessary to fund the
apportionments for the purposes described in this chapter that are
expressly authorized by the Legislature in the annual Budget Act.
Pursuant to that legislative direction, the committee shall determine
whether or not it is necessary or desirable to issue bonds
authorized pursuant to this chapter in order to carry out the
purposes described in this chapter and, if so, the amount of bonds to
be issued and sold.  Successive issues of bonds may be authorized
and sold to carry out those actions progressively, and it is not
necessary that all of the bonds authorized to be issued be sold at
any one time.
   100525.  There shall be collected each year and in the same manner
and at the same time as other state revenue is collected, in
addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year.  It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act which is necessary to collect that additional sum.
   100530.  Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this chapter, an amount that will equal
the total of the following:
   (a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this chapter, as the
principal and interest become due and payable.
   (b) The sum necessary to carry out Section 100545, appropriated
without regard to fiscal years.
   100535.  The board, as defined in subdivision (b) of Section
100510, may request the Pooled Money Investment Board to make a loan
from the Pooled Money Investment Account or any other approved form
of interim financing, in accordance with Section 16312 of the
Government Code, for the purpose of carrying out this chapter.  The
amount of the request shall not exceed the amount of the unsold bonds
that the committee, by resolution, has authorized to be sold for the
purpose of carrying out this chapter.  The board, as defined in
subdivision (b) of Section 100510, shall execute any documents
required by the Pooled Money Investment Board to obtain and repay the
loan.  Any amounts loaned shall be deposited in the fund to be
allocated by the board in accordance with this chapter.
   100540.  Notwithstanding any other provision of this chapter, or
of the State General Obligation Bond Law, if the Treasurer sells
bonds pursuant to this chapter that include a bond counsel opinion to
the effect that the interest on the bonds is excluded from gross
income for federal tax purposes, subject to designated conditions,
the Treasurer may maintain separate accounts for the investment of
bond proceeds and for the investment earnings on those proceeds.  The
Treasurer may use or direct the use of those proceeds or earnings to
pay any rebate, penalty, or other payment required under federal law
or take any other action with respect to the investment and use of
those bond proceeds required or desirable under federal law to
maintain the tax-exempt status of those bonds and to obtain any other
advantage under federal law on behalf of the funds of this state.
   100545.  (a) For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds that
have been authorized by the Higher Education Facilities Finance
Committee to be sold for the purpose of carrying out this chapter.
Any amounts withdrawn shall be deposited in the 1998 Higher Education
Capital Outlay Bond Fund consistent with this chapter.  Any money
made available under this section shall be returned to the General
Fund, plus an amount equal to the interest that the money would have
earned in the Pooled Money Investment Account, from proceeds received
from the sale of bonds for the purpose of carrying out this chapter.

   (b) Any request forwarded to the Legislature and the Department of
Finance for funds from this bond issue for expenditure for the
purposes described in this chapter by the University of California,
the California State University, or the California Community Colleges
shall be accompanied by the five-year capital outlay plan.  Requests
forwarded by a university or college shall include a schedule that
prioritizes the seismic retrofitting needed to significantly reduce,
by the 2002-03 fiscal year, in the judgment of the particular
university or college, seismic hazards in buildings identified as
high priority by the university or college.  Requests forwarded by
the California Community Colleges shall be accompanied by a five-year
capital outlay plan reflecting the needs and priorities of the
community college system, prioritized on a statewide basis.
   100550.  All money deposited in the 1998 Higher Education Capital
Outlay Bond Fund that is derived from premium and accrued interest on
bonds sold shall be reserved in the fund and shall be available for
transfer to the General Fund as a credit to expenditures for bond
interest.
   100555.  The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of Chapter 4 of Part 3 of Division 4
of Title 2 of the Government Code, which is a part of the State
General Obligation Bond Law.  Approval by the voters of the state for
the issuance of the bonds described in this chapter includes the
approval of the issuance of any bonds issued to refund any bonds
originally issued under this chapter or any previously issued
refunding bonds.
   100560.  The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this chapter are
not "proceeds of taxes" as that term is used in Article XIIIB of the
California Constitution, the disbursement of these proceeds is not
subject to the limitations imposed by that article.
  SEC. 17.  Section 1003 of the Elections Code is amended to read:
   1003.  This chapter shall not apply to the following:
   (a) Any special election called by the Governor.
   (b) Elections held in chartered cities or chartered counties in
which the charter provisions are inconsistent with this chapter.
   (c) School governing board elections consolidated pursuant to
Section 5006 of the Education Code or initiated by petition pursuant
to Section 5091 of the Education Code.
   (d) Elections of any kind required or permitted to be held by a
school district located in a chartered city or county when the
election is consolidated with a regular city or county election held
in a jurisdiction that includes 95 percent or more of the school
district's population.
   (e) County, municipal, district, and school district initiative,
referendum, or recall elections.
   (f) Any election conducted solely by mailed ballot pursuant to
Division 4 (commencing with Section 4000).
   (g) Elections held pursuant to Article 1 (commencing with Section
15100) of Chapter 1 of Part 10 of the Education Code.
  SEC. 18.  Section 4420.5 is added to the Government Code, to read:

   4420.5.  (a) Subdivision (b) of Section 4420 shall not apply to
any construction or renovation project undertaken by a school
district.
   (b) The district may use owner-controlled or wrap-up insurance
with regard to a construction or renovation project if the district
makes the following determinations:
   (1) Prospective bidders, including contractors and subcontractors,
meet minimum occupational safety and health qualifications
established to bid on the project.  The evaluation of prospective
bidders shall be based on consideration of the following factors:
   (A) Serious and willful violations of Part 1 (commencing with
Section 6300) of Division 5 of the Labor Code, by a contractor or
subcontractor during the past five-year period.
   (B) The contractor's or subcontractor's workers' compensation
experience modification factor.
   (C) A contractor's or subcontractor's injury prevention program
instituted pursuant to Section 3201.5 or 6401.7 of the Labor Code.
   (2) The use of owner-controlled or wrap-up insurance will maximize
the expenditure of public funds on the project in conjunction with
the exercise of appropriate risk management.
   (c) For purposes of this section, "owner-controlled or wrap-up
insurance" means a series of insurance policies issued to cover all
of the contractors and subcontractors on a given project for purposes
of general liability and workers' compensation.
   (d) Any use of owner-controlled or wrap-up insurance pursuant to
this section shall be subject to subparagraphs (B), (C), (D), and (E)
of paragraph (1) of subdivision (d) of Section 4420 and paragraphs
(2) and (3) of that subdivision.
  SEC. 19.  Section 65995 of the Government Code is amended to read:

   65995.  (a) Except for a fee, charge, dedication, or other
requirement authorized under Section 17620 of the Education Code, or
pursuant to Chapter 4.7 (commencing with Section 65970),  a fee,
charge, dedication, or other requirement for the construction or
reconstruction of school facilities may not be levied or imposed in
connection with, or made a condition of, any legislative or
adjudicative act, or both, by any state or local agency involving,
but not limited to, the planning, use, or development of real
property, or any change in governmental organization or
reorganization, as defined in Section 56021 or 56073.
   (b) Except as provided in Sections 65995.5 and 65995.7, the amount
of any fees, charges, dedications, or other requirements authorized
under Section 17620 of the Education Code, or pursuant to Chapter 4.7
(commencing with Section 65970), or both, may not exceed the
following:
   (1) In the case of residential construction, including the
location, installation, or occupancy of manufactured homes and
mobilehomes, one dollar and ninety-three cents ($1.93) per square
foot of assessable space.  "Assessable space," for this purpose,
means all of the square footage within the perimeter of a residential
structure, not including any carport, walkway, garage, overhang,
patio, enclosed patio, detached accessory structure, or similar area.
  The amount of the square footage within the perimeter of a
residential structure shall be calculated by the building department
of the city or county issuing the building permit, in accordance with
the standard practice of that city or county in calculating
structural perimeters.  "Manufactured home" and "mobilehome" have the
meanings set forth in subdivision (f) of Section 17625 of the
Education Code.  The application of any fee, charge, dedication, or
other form of requirement to the location, installation, or occupancy
of manufactured homes and mobilehomes is subject to Section 17625 of
the Education Code.
   (2) In the case of any commercial or industrial construction,
thirty-one cents ($0.31) per square foot of chargeable covered and
enclosed space.  "Chargeable covered and enclosed space," for this
purpose, means the covered and enclosed space determined to be within
the perimeter of a commercial or industrial structure, not including
any storage areas incidental to the principal use of the
construction, garage, parking structure, unenclosed walkway, or
utility or disposal area.  The determination of the chargeable
covered and enclosed space within the perimeter of a commercial or
industrial structure shall be made by the building department of the
city or county issuing the building permit, in accordance with the
building standards of that city or county.
   (3) The amount of the limits set forth in paragraphs (1) and (2)
shall be increased in 2000, and every two years thereafter, according
to the adjustment for inflation set forth in the statewide cost
index for class B construction, as determined by the State Allocation
Board at its January meeting, which increase shall be effective as
of the date of that meeting.
   (c) (1) Notwithstanding any other provision of law, during the
term of a contract entered into between a subdivider or builder and a
school district, city, county, or city and county, whether general
law or chartered, on or before January 1, 1987, that requires the
payment of a fee, charge, or dedication for the construction of
school facilities as a condition to the approval of residential
construction, neither Section 17620 of the Education Code nor this
chapter applies to that residential construction.
   (2) Notwithstanding any other provision of state or local law,
construction that is subject to a contract entered into between a
person and a school district, city, county, or city and county,
whether general law or chartered, after January 1, 1987, and before
the operative date of the act that adds paragraph (3) that requires
the payment of a fee, charge, or dedication for the construction of
school facilities as a condition to the approval of construction, may
not be affected by the act that adds paragraph (3).
   (3) Notwithstanding any other provision of state or local law,
until January 1, 2000, any construction not subject to a contract as
described in paragraph (2) that is carried out on real property for
which residential development was made subject to a condition
relating to school facilities imposed by a state or local agency in
connection with a legislative act approving or authorizing the
residential development of that property after January 1, 1987, and
before the operative date of the act adding this paragraph, shall be
required to comply with that condition.
   Notwithstanding any other provision of state or local law, on and
after January 1, 2000, any construction not subject to a contract as
described in paragraph (2) that is carried out on real property for
which residential development was made subject to a condition
relating to school facilities imposed by a state or local agency in
connection with a legislative act approving or authorizing the
residential development of that property after January 1, 1987, and
before the operative date of the act adding this paragraph, may not
be subject to a fee, charge, dedication, or other requirement
exceeding the amount specified in paragraphs (1) and (2) of
subdivision (b), or, if a district has increased the limit specified
in paragraph (1) of subdivision (b) pursuant to either Section
65995.5 or 65995.7, that increased amount.
   (4) Any construction that is not subject to a contract as
described in paragraph (2), or to paragraph (3), and that satisfies
both of the requirements of this paragraph, may not be subject to any
increased fee, charge, dedication, or other requirement authorized
by the act that adds this paragraph beyond the amount specified in
paragraphs (1) and (2) of subdivision (b).
   (A) A tentative map, development permit, or conditional use permit
was approved before the operative date of the act that amends this
subdivision.
   (B) A building permit is issued before January 1, 2000.
   (d) For purposes of this chapter, "construction" means new
construction and reconstruction of existing building for residential,
commercial, or industrial.  "Residential, commercial, or industrial
construction" does not include any facility used exclusively for
religious purposes that is thereby exempt from property taxation
under the laws of this state, any facility used exclusively as a
private full-time day school as described in Section 48222 of the
Education Code, or any facility that is owned and occupied by one or
more agencies of federal, state, or local government.  In addition,
"commercial or industrial  construction" includes, but is not limited
to, any hotel, inn, motel, tourist home, or other lodging for which
the maximum term of occupancy for guests does not exceed 30 days, but
does not include any residential hotel, as defined in paragraph (1)
of subdivision (b) of Section 50519 of the Health and Safety Code.
   (e) The Legislature finds and declares that the financing of
school facilities and the mitigation of the impacts of land use
approvals, whether legislative or adjudicative, or both, on the need
for school facilities are matters of statewide concern.  For this
reason, the Legislature hereby occupies the subject matter of
requirements related to school facilities levied or imposed in
connection with, or made a condition of, any land use approval,
whether legislative or adjudicative act, or both, and the mitigation
of the impacts of land use approvals, whether legislative or
adjudicative, or both, on the need for school facilities, to the
exclusion of all other measures, financial or nonfinancial, on the
subjects.  For purposes of this subdivision, "school facilities"
means any school-related consideration relating to a school district'
s ability to accommodate enrollment.
   (f) Nothing in this section shall be interpreted to limit or
prohibit the use of Chapter 2.5 (commencing with Section 53311) of
Division 2 of Title 5 to finance the construction or reconstruction
of school facilities.  However, the use of Chapter 2.5 (commencing
with Section 53311) of Division 2 of Title 5 may not be required as a
condition of approval of any legislative or adjudicative act, or
both, if the purpose of the community facilities district is to
finance school facilities.
   (g) (1) The refusal of a person to agree to undertake or cause to
be undertaken an act relating to Chapter 2.5 (commencing with Section
53311) of Division 2 of Title 5, including formation of, or
annexation to, a community facilities district, voting to levy a
special tax, or authorizing another to vote to levy a special tax,
may not be a factor when considering the approval of a legislative or
adjudicative act, or both, involving, but not limited to, the
planning, use, or development of real property, or any change in
governmental organization or reorganization, as defined in Section
56021 or 56073, if the purpose of the community facilities district
is to finance school facilities.
   (2) If a person voluntarily elects to establish, or annex into, a
community facilities district and levy a special tax approved by
landowner vote to finance school facilities, the present value of the
special tax specified in the resolution of formation shall be
calculated as an amount per square foot of assessable space and that
amount shall be a credit against any applicable fee, charge,
dedication, or other requirement for the construction or
reconstruction of school facilities.  For purposes of this paragraph,
the calculation of present value shall use the interest rate paid on
the United States Treasury's 30-year bond on the date of the
formation of, or annexation to, the community facilities district, as
the capitalization rate.
   (3) For purposes of subdivisions (f), (h), and (i), and this
subdivision, "school facilities" means any school-related
consideration relating to a school district's ability to accommodate
enrollment.
                                                        (h) The
payment or satisfaction of a fee, charge, or other requirement levied
or imposed pursuant to Section 17620 of the Education Code in the
amount specified in Section 65995 and, if applicable, any amounts
specified in Section 65995.5 or 65995.7 are hereby deemed to be full
and complete mitigation of the impacts of any legislative or
adjudicative act, or both, involving, but not limited to, the
planning, use, or development of real property, or any change in
governmental organization or reorganization as defined in Section
56021 or 56073, on the provision of adequate school facilities.
   (i) A state or local agency may not deny or refuse to approve a
legislative or adjudicative act, or both, involving, but not limited
to, the planning, use, or development of real property, or any change
in governmental organization or reorganization as defined in Section
56021 or 56073 on the basis of a person's refusal to provide school
facilities mitigation that exceeds the amounts authorized pursuant to
this section or pursuant to Section 65995.5 or 65995.7, as
applicable.
  SEC. 20.  Section 65995.5 is added to the Government Code, to read:

   65995.5.  (a) The governing board of a school district may impose
the amount calculated pursuant to this section as an alternative to
the amount that may be imposed on residential construction calculated
pursuant to subdivision (b) of Section 65995.
   (b) To be eligible to impose the fee, charge, dedication, or other
requirement up to the amount calculated pursuant to this section, a
governing board shall do all of the following:
   (1) Make a timely application to the State Allocation Board for
new construction funding for which it is eligible and be determined
by the board to meet the eligibility requirements for new
construction funding set forth in Article 2 (commencing with Section
17071.10) and Article 3 (commencing with Section 17071.75) of Chapter
12.5 of Part 10 of the Education Code.  A governing board that
submits an application to determine the district's eligibility for
new construction funding shall be deemed eligible if the State
Allocation Board fails to notify the district of the district's
eligibility within 120 days of receipt of the application.
   (2) Conduct and adopt a school facility needs analysis pursuant to
Section 65995.6.
   (3) Until January 1, 2000, satisfy at least one of the
requirements set forth in subparagraphs (A) to (D), inclusive, and,
on and after January 1, 2000, satisfy at least two of the
requirements set forth in subparagraphs (A) to (D), inclusive:
   (A) The district is a unified or elementary school district that
has a substantial enrollment of its elementary school pupils on a
multitrack year-round schedule.  "Substantial enrollment" for
purposes of this paragraph means at least 30 percent of district
pupils in kindergarten and grades 1 to 6, inclusive, in the high
school attendance area in which all or some of the new residential
units identified in the needs analysis are planned for construction.
A high school district shall be deemed to have met the requirements
of this paragraph if either of the following apply:
   (i) At least 30 percent of the high school district's pupils are
on a multitrack year-round schedule.
   (ii) At least 40 percent of the pupils enrolled in public schools
in kindergarten and grades 1 to 12, inclusive, within the boundaries
of the high school attendance area for which the school district is
applying for new facilities are enrolled in multitrack year-round
schools.
   (B) The district has placed on the ballot in the previous four
years a local general obligation bond to finance school facilities
and the measure received at least 50 percent plus one of the votes
cast.
   (C) The district meets one of the following:
   (i) The district has issued debt or incurred obligations for
capital outlay in an amount equivalent to 15 percent of the district'
s local bonding capacity, including indebtedness that is repaid from
property taxes, parcel taxes, the district's general fund, special
taxes levied pursuant to Section 4 of Article XIIIA of the California
Constitution, special taxes levied pursuant to Chapter 2.5
(commencing with Section 52211) of Division 2 of Title 5 that are
approved by a vote of registered voters, special taxes levied
pursuant to Chapter 2.5 (commencing with Section 52211) of Division 2
of Title 5 that are approved by a vote of landowners prior to
November 4, 1998, and revenues received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code).  Indebtedness or other obligation
to finance school facilities to be owned, leased, or used by the
district, that is incurred by another public agency, shall be counted
for the purpose of calculating whether the district has met the debt
percentage requirement contained herein.
   (ii) The district has issued debt or incurred obligations for
capital outlay in an amount equivalent to 30 percent of the district'
s local bonding capacity, including indebtedness that is repaid from
property taxes, parcel taxes, the district's general fund, special
taxes levied pursuant to Section 4 of Article XIIIA of the California
Constitution, special taxes levied pursuant to Chapter 2.5
(commencing with Section 52211) of Division 2 of Title 5 that are
approved by a vote of registered voters, special taxes levied
pursuant to Chapter 2.5 (commencing with Section 52211) of Division 2
of Title 5 that are approved by a vote of landowners after November
4, 1998, and revenues received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code).  Indebtedness or other obligation
to finance school facilities to be owned, leased, or used by the
district, that is incurred by another public agency, shall be counted
for the purpose of calculating whether the district has met the debt
percentage requirement contained herein.
   (D) At least 20 percent of the teaching stations within the
district are relocatable classrooms.
   (c) The maximum square foot fee, charge, dedication, or other
requirement authorized by this section that may be collected in
accordance with Chapter 6 (commencing with Section 17620) of Part
10.5 of the Education Code shall be calculated by a governing board
of a school district, as follows:
   (1) The number of unhoused pupils identified in the school
facilities needs analysis shall be multiplied by the appropriate
amounts provided in subdivision (a) of Section 17072.10.  This sum
shall be added to the site acquisition and development cost
determined pursuant to subdivision (h).
   (2) The full amount of local funds the governing board has
dedicated to facilities necessitated by new construction shall be
subtracted from the amount determined pursuant to paragraph (1).
Local funds include fees, charges, dedications, or other requirements
imposed on commercial or industrial construction.
   (3) The resulting amount determined pursuant to paragraph (2)
shall be divided by the projected total square footage of assessable
space of residential units anticipated to be constructed during the
next five-year period in the school district or the city and county
in which the school district is located.  The estimate of the
projected total square footage shall be based on information
available from the city or county within which the residential units
are anticipated to be constructed or a market report prepared by an
independent third party.
   (d) A school district that has a common territorial jurisdiction
with a district that imposes the fee, charge, dedication, or other
requirement up to the amount calculated pursuant to this section or
Section 65995.7, may not impose a fee, charge, dedication, or other
requirement on residential construction that exceeds the limit set
forth in subdivision (b) of Section 65995 less the portion of that
amount it would be required to share pursuant to Section 17623 of the
Education Code, unless that district is eligible to impose the fee,
charge, dedication, or other requirement up to the amount calculated
pursuant to this section or Section 65995.7.
   (e) Nothing in this section is intended to limit or discourage the
joint use of school facilities or to limit the ability of a school
district to construct school facilities that exceed the amount of
funds authorized by Section 17620 of the Education Code and provided
by the state grant program, if the additional costs are funded solely
by local revenue sources other than fees, charges, dedications, or
other requirements imposed on new construction.
   (f) A fee, charge, dedication, or other requirement authorized
under Section 17620 of the Education Code or pursuant to Chapter 4.7
(commencing with Section 65970) shall be expended solely on the
school facilities identified in the needs analysis as being
attributable to projected enrollment growth from the construction of
new residential units.
   (g) "Residential units" and "residences" as used in this section
and in Sections 65995.6 and 65995.7 means the development of
single-family detached housing units, single-family attached housing
units, manufactured homes and mobile homes, as defined in subdivision
(f) of Section 17625 of the Education Code, condominiums, and
multifamily housing units, including apartments, residential hotels,
as defined in paragraph (1) of subdivision (b) of Section 50519 of
the Health and Safety Code, and stock cooperatives, as defined in
Section 1351 of the Civil Code.
   (h) Site acquisition costs shall not exceed half the amount
determined by multiplying the land acreage determined to be necessary
under the guidelines of the State Department of Education, as
published in the "School Site Analysis and Development Handbook," as
that handbook read as of January 1, 1998, by the estimated cost
determined pursuant to Section 17072.12 of the Education Code.  Site
development costs shall not exceed two times the amount funded by the
State Allocation Board.
  SEC. 21.  Section 65995.6 is added to the Government Code, to read:

   65995.6.  (a) The school facilities needs analysis required by
paragraph (2) of subdivision (b) of Section 65995.5 shall be
conducted by the governing board of a school district to determine
the need for new school facilities for unhoused pupils that are
attributable to projected enrollment growth from the development of
new residential units over the next five years.  The school
facilities needs analysis shall project the number of unhoused
elementary, middle, and high school pupils generated by new
residential units, in each category of pupils enrolled in the
district.  This projection of unhoused pupils shall be based on the
historical student generation rates of new residential units
constructed during the previous five years that are of a similar type
of unit to those anticipated to be constructed either in the school
district or the city or county in which the school district is
located, and relevant planning agency information, such as
multiphased development projects, that may modify the historical
figures.  For purposes of this paragraph, "type" means a single
family detached, single family attached, or multifamily unit.  The
existing school building capacity shall be calculated pursuant to
Article 2 (commencing with Section 17071.10) of Chapter 12.5 of Part
10 of the Education Code.  If a district meets the requirements of
paragraph (3) of subdivision (b) of Section 65995.5 by having a
substantial enrollment on a multitrack year-round schedule, the
determination of whether the district has school building capacity
area shall reflect the additional capacity created by the multitrack
year-round schedule.
   (b) When determining the funds necessary to meet its facility
needs, the governing board shall do each of the following:
   (1) Identify and consider any surplus property owned by the
district that can be used as a schoolsite or that is available for
sale to finance school facilities.
   (2) Identify and consider the extent to which projected enrollment
growth may be accommodated by excess capacity in existing
facilities.
   (3) Identify and consider local sources other than fees, charges,
dedications, or other requirements imposed on residential
construction available to finance the construction or reconstruction
of school facilities needed to accommodate any growth in enrollment
attributable to the construction of new residential units.
   (c) The governing board shall adopt the school facility needs
analysis by resolution at a public hearing.  The school facilities
needs analysis may not be adopted until the school facilities needs
analysis in its final form has been made available to the public for
a period of not less than 30 days during which time the school
facilities needs analysis shall be provided to the local agency
responsible for land use planning for its review and comment.  Prior
to the adoption of the school facilities needs analysis, the public
shall have the opportunity to review and comment on the school
facilities needs analysis and the governing board shall respond to
written comments it receives regarding the school facilities needs
analysis.
   (d) Notice of the time and place of the hearing, including the
location and procedure for viewing or requesting a copy of the
proposed school facilities needs analysis and any proposed revision
of the school facilities needs analysis, shall be published in at
least one newspaper of general circulation within the jurisdiction of
the school district that is conducting the hearing no less than 30
days prior to the hearing.  If there is no paper of general
circulation, the notice shall be posted in at least three conspicuous
public places within the jurisdiction of the school district not
less than 30 days prior to the hearing.  In addition to these notice
requirements, the governing board shall mail a copy of the school
facilities needs analysis and any proposed revision to the school
facilities needs analysis not less than 30 days prior to the hearing
to any person who has made a written request if the written request
was made 45 days prior to the hearing.  The governing board may
charge a fee reasonably related to the cost of providing these
materials to those persons who request the school facilities needs
analysis or revision.
   (e) The school facilities needs analysis may be revised at any
time in the same manner, and the revision is subject to the same
conditions and requirements, applicable to the adoption of the school
facilities needs analysis.
   (f) A fee, charge, dedication, or other requirement in an amount
authorized by this section or Section 65995.7, shall be adopted by a
resolution of the governing board as part of the adoption or revision
of the school facilities needs analysis and may not be effective for
more than one year.  Notwithstanding subdivision (a) of Section
17621 of the Education Code, or any other provision of law, the fee,
charge, dedication, or other requirement authorized by the resolution
shall take effect immediately after the adoption of the resolution.

   (g) Division 13 (commencing with Section 21000) of the Public
Resources Code may not apply to the preparation, adoption, or update
of the school facilities needs analysis, or adoption of the
resolution specified in this section.
   (h) Notice and hearing requirements other than those provided in
this section may not be applicable to the adoption or revision of a
school facilities needs analysis or the resolutions adopted pursuant
to this section.
  SEC. 22.  Section 65995.7 is added to the Government Code, to read:

   65995.7.  (a) If state funds for new school facility construction
are not available, the governing board of a school district that
complies with Section 65995.5 may increase the alternative fee,
charge, dedication, or other requirement calculated pursuant to
subdivision (c) of Section 65995.5 by an amount that may not exceed
the amount calculated pursuant to subdivision (c) of Section 65995.5,
except that for the purposes of calculating this additional amount,
the amount identified in paragraph (2) of subdivision (c) of Section
65995.5 may not be subtracted from the amount determined pursuant to
paragraph (1) of subdivision (c) of Section 65995.5.  For purposes of
this section, state funds are not available if the State Allocation
Board is no longer approving apportionments for new construction
pursuant to Article 5 (commencing with Section 17072.20) of Chapter
12.5 of Part 10 of the Education Code due to a lack of funds
available for new construction.  Upon making a determination that
state funds are no longer available, the State Allocation Board shall
notify the Secretary of the Senate and the Chief Clerk of the
Assembly, in writing, of that determination and the date when state
funds are no longer available for publication in the respective
journal of each house.
   (b) A governing board may offer a reimbursement election to the
person subject to the fee, charge, dedication, or other requirement
that provides the person with the right to monetary reimbursement of
the supplemental amount authorized by this section, to the extent
that the district receives funds from state sources for construction
of the facilities for which that amount was required, less any amount
expended by the district for interim housing.  At the option of the
person subject to the fee, charge, dedication, or other requirement
the reimbursement election may be made on a tract or lot basis.
Reimbursement of available funds shall be made within 30 days as they
are received by the district.
   (c) A governing board may offer the person subject to the fee,
charge, dedication, or other requirement an opportunity to negotiate
an alternative reimbursement agreement if the terms of the agreement
are mutually agreed upon.
   (d) A governing board may provide that the rights granted by the
reimbursement election or the alternative reimbursement agreement are
assignable.
  SEC. 23.  Section 65996 of the Government Code is amended to read:

   65996.  (a) Notwithstanding Section 65858, or Division 13
(commencing with Section 21000) of the Public Resources Code, or any
other provision of state or local law, the following provisions shall
be the exclusive methods of considering and mitigating impacts on
school facilities that occur or might occur as a result of any
legislative or adjudicative act, or both, by any state or local
agency involving, but not limited to, the planning, use, or
development of real property or any change of governmental
organization or reorganization, as defined in Section 56021 or 56073:

   (1)  Section 17620 of the Education Code.
   (2) Chapter 4.7 (commencing with Section 65970) of Division 1 of
Title 7.
   (b) The provisions of this chapter are hereby deemed to provide
full and complete school facilities mitigation and, notwithstanding
Section 65858, or Division 13 (commencing with Section 21000) of the
Public Resources Code, or any other provision of state or local law,
a state or local agency may not deny or refuse to approve a
legislative or adjudicative act, or both, involving, but not limited
to, the planning, use, or development of real property or any change
in governmental organization or reorganization, as defined in Section
56021 or 56073, on the basis that school facilities are inadequate.

   (c) For purposes of this section, "school facilities" means any
school-related consideration relating to a school district's ability
to accommodate enrollment.
   (d) Nothing in this chapter shall be interpreted to limit or
prohibit the ability of a local agency to utilize other methods to
provide school facilities if these methods are not levied or imposed
in connection with, or made a condition of, a legislative or
adjudicative act, or both, involving, but not limited to, the
planning, use, or development of real property or a change in
governmental organization or reorganization, as defined in Section
56021 or 56073.  Nothing in this chapter shall be interpreted to
limit or prohibit the assessment or reassessment of property in
conjunction with ad valorum taxes, or the placement of a parcel on
the secured roll in conjunction with qualified special taxes as that
term is used in Section 50079.
   (e) Nothing in this section shall be interpreted to limit or
prohibit the ability of a local agency to mitigate the impacts of
land use approvals other than on the need for school facilities, as
defined in this section.
   (f) This section shall become inoperative during  any time that
Section 65997 is operative and this section shall become operative at
any time that Section 65997 is inoperative.
  SEC. 24.  Section 65997 is added to the Government Code, to read:
   65997.  (a) The following provisions shall be the exclusive
methods of mitigating environmental effects related to the adequacy
of school facilities when considering the approval or the
establishment of conditions for the approval of a development
project, as defined in Section 17620, pursuant to Division 13
(commencing with Section 21000) of the Public Resources Code:
   (1) Chapter 12 (commencing with Section 17000) of Part 10 of the
Education Code or Chapter 12.5 (commencing with Section 17070.10).
   (2) Chapter 14 (commencing with Section 17085) of Part 10 of the
Education Code.
   (3) Chapter 18 (commencing with Section 17170) of Part 10 of the
Education Code.
   (4) Article 2.5 (commencing with Section 17430) of Chapter 4 of
Part 10.5 of the Education Code.
   (5) Section 17620 of the Education Code.
   (6) Chapter 2.5 (commencing with Section 53311) of Division 2 of
Title 5 of the Government Code.
   (7) Chapter 4.7 (commencing with Section 65970) of Division 1 of
Title 7 of the Government Code.
   (b) A public agency may not, pursuant to Division 13 (commencing
with Section 21000) of the Public Resources Code or Division 2
(commencing with Section 66410) of this code, deny approval of a
project on the basis of the adequacy of school facilities.
   (c) (1) This section shall become operative on or after any
statewide election in 2006, if a statewide general obligation bond
measure submitted for voter approval in 2006 or thereafter that
includes bond issuance authority to fund construction of kindergarten
and grades 1 to 12, inclusive, public school facilities is submitted
to the voters and fails to be approved.
   (2) (A) This section shall become inoperative if subsequent to the
failure of a general obligation bond measure described in paragraph
(1) a statewide general bond measure as described in paragraph (1) is
approved by the voters.
   (B) Thereafter, this section shall become operative if a statewide
general obligation bond measure submitted for voter approval that
includes bond issuance authority to fund construction of kindergarten
and grades 1 to 12, inclusive, public school facilities is submitted
to the voters and fails to be approved and shall become inoperative
if subsequent to the failure of the general obligation bond measure a
statewide bond measure as described in this subparagraph is approved
by the voters.
   (d) Notwithstanding any other provision of law, a public agency
may deny or refuse to approve a legislative act involving, but not
limited to, the planning, use, or development of real property, on
the basis that school facilities are inadequate, except that a public
agency may not require the payment or satisfaction of a fee, charge,
dedication, or other financial requirement in excess of that levied
or imposed pursuant to Section 65995 and, if applicable, any amounts
specified in Sections 65995.5 or 65995.7.
  SEC. 25.  Section 65998 is added to the Government Code, to read:
   65998.  (a) Nothing in this chapter or in Section 17620 of the
Education Code shall be interpreted to limit or prohibit the
authority of a local agency to reserve or designate real property for
a schoolsite.
   (b) Nothing in this chapter or in Section 17620 of the Education
Code shall be interpreted to limit or prohibit the ability of a local
agency to mitigate the impacts of a land use approval involving, but
not limited to, the planning, use, or development of real property
other than on the need for school facilities.
  SEC. 26.  Chapter 9 (commencing with Section 51450) is added to
Division 31 of the Health and Safety Code, to read:

      CHAPTER 9.  SCHOOL FACILITY FEE AFFORDABLE HOUSING ASSISTANCE
PROGRAMS

   51450.  (a) It is the intent of the Legislature that affordable
homebuyer and rental housing programs be implemented to address the
needs of economically distressed entities in the state and the needs
of very low, low-, and moderate-income homebuyers and renters who may
be affected by the impact of school facility fees on the development
of affordable housing.
   (b) The Department of General Services shall contract with the
California Housing Finance Agency for the administration of the
programs established by this chapter and for the allocation of funds
to the purchasers of newly constructed residential structures and the
housing sponsors of housing developments, pursuant to this chapter.
The California Housing Finance Agency shall administer these
programs and allocate funds in accordance with that agency's
authority as set forth in Part 3 (commencing with Section 50900) of
Division 31.
   51451.  The Homebuyer Down Payment Assistance Program and the
Rental Assistance Program are hereby established to provide
assistance in the amount of the applicable school facility fee on
affordable housing developments.
   (a) A Homebuyer Down Payment Assistance Program shall provide the
following assistance:
   (1) Downpayment assistance to the purchaser of  newly constructed
residential structures in a development project in economically
distressed areas in the amount of school facility fees paid pursuant
to Sections 65995.5 or 65995.7 of the Government Code, less the
amount that would be required pursuant to subdivision (b) of Section
65995 of the Government Code notwithstanding Sections 65995.5 and
65995.7 of the Government Code, if all of the following conditions
are met:
   (A) The development project is located in a county with an
unemployment rate that equals or exceeds 125 percent of the state
unemployment rate.
   (B) Five hundred or more residential structures have been
constructed in the county during 1997.
   (C) A building permit for an eligible residential structure in the
development project is issued by the local agency on or after
January 1, 1999.
   (D) The eligible residential structure is to be owner occupied for
at least five years.  If a structure is owner occupied for fewer
than five years,                                             the
recipient of the assistance shall repay the School Facilities Fee
Assistance Fund the amount of the assistance, on a prorated basis.
   (E) The sales price of the eligible residential structure does not
exceed 175 percent of the median sales price of residential
structures in the county during the average of the previous five
years.
   (2) Downpayment assistance to the purchaser of any newly
constructed residential structure in the development project in the
amount of school facility fees paid pursuant to Sections 65995.5 or
65995.7 of the Government Code, less the amount that would be
required pursuant to subdivision (b) of Section 65995 of the
Government Code notwithstanding Sections 65995.5 and 65995.7 of the
Government Code, if all of the following conditions are met:
   (A) The development project is located in the state of California.

   (B) The sales price of the eligible residential structure in the
development project does not exceed one hundred ten thousand dollars
($110,000).
   (C) A building permit for an eligible residential structure in the
development project is issued by the local agency on or after
January 1, 1999.
   (D) The eligible residential structure is to be owner occupied for
at least five years.  If a structure is owner occupied for fewer
than five years, the recipient of the assistance shall repay the
School Facilities Fee Assistance Fund the amount of the assistance,
on a prorated basis.
   (3) Downpayment to the purchaser of any newly constructed
residential structure in a development project in the amount of
school facility fees paid pursuant to subdivision (b) of Section
65995 of the Government Code, Section 65995.5 of the Government Code,
or Section 65995.7 of the Government Code for the eligible
residential structure if all of the following conditions are met:
   (A) The assistance is provided to a qualified first-time homebuyer
pursuant to Section 50068.5.
   (B) The qualified first-time homebuyer meets the very low or
low-income requirements set forth in Section 50052.5.
   (C) A building permit for an eligible residential structure in the
development project is issued by the local agency on or after
January 1, 1999.
   (D) The eligible residential structure is to be owner occupied for
at least five years.  If a structure is owner occupied for fewer
than five years, the recipient of the assistance shall repay the
School Facilities Fee Assistance Fund the amount of the assistance,
on a prorated basis.
   (b) A Rental Assistance Program shall provide assistance to the
housing sponsor of a housing development in the amount of the school
facility fees paid pursuant to subdivision (b) of Section 65995 of
the Government Code, Section 65995.5 of the Government Code, or
Section 65995.7 of the Government Code that meets all of the
following conditions:
   (1) The units are deed restricted to very low income households
and are continuously available to or occupied by very low income
households at rents that do not exceed those prescribed by Section
50053, except that for the purposes of this subdivision, very low
income shall be defined as 30 percent times 30 percent of the median
income adjusted for family size appropriate for the unit.
   (2) The number of dedicated residential units must equal or exceed
the number of units supported by the reimbursed school impact fees
determined by the average per unit development cost.
   (3) The dedicated residential units are regulated by an
appropriate local or state agency for a minimum of 30 years.
   (4) A building permit for an eligible residential unit in the
development project is issued by the local agency on or after January
1, 1999.
   51452.  (a) The School Facilities Fee Assistance Fund is hereby
established in the State Treasury and, notwithstanding Section 13340
of the Government Code, is continuously appropriated to the
Department of General Services for the purposes of this chapter.
   (b) The amount of one hundred sixty million dollars ($160,000,000)
is hereby appropriated from the General Fund to the School
Facilities Fee Assistance Fund for administrative costs and to make
payments to purchasers of newly constructed residential structures
and housing sponsors of housing developments pursuant to this chapter
from that fund for a period of four years as follows:
   (1) Twenty-eight million dollars ($28,000,000) shall be available
for the program set forth in paragraph (1) of subdivision (a) of
Section 51451, except that any funds not expended within 18 months
shall be available for programs set forth in paragraphs (2) and (3)
of subdivision (a) of Section 51451.
   (2) Twenty-eight million dollars ($28,000,000) shall be available
for the program set forth in paragraph (2) of subdivision (a) of
Section 51451.
   (3) Fifty-two million dollars ($52,000,000) shall be available for
the program set forth in paragraph (3) of subdivision (a) of Section
51451.
   (4) Fifty-two million dollars ($52,000,000) shall be available for
the program set forth in subdivision (b) of Section 51451.
   51453.  Twenty-five percent of the funds available in each of the
programs pursuant to Section 51452 shall be allocated in each of the
four fiscal years, commencing with the 1998-99 fiscal year.
   51454.  The Legislative Analyst's Office shall submit a report to
the Legislature and the Governor no later than January 1, 2001,
regarding the effectiveness of the programs established pursuant to
this chapter.
   51455.  This chapter shall remain in effect only until January 1,
2002, and as of that date is repealed.
  SEC. 27.   The Legislature declares that it is the policy of the
state to exercise prudence in undertaking the sale of bonds otherwise
authorized for sale by the act adding this section.  In this regard,
the Legislature encourages undertaking the sale of bonds in a manner
not to exceed debt service to General Fund revenue ratio of 6
percent unless the sale is in the best fiscal interest of the state.
  SEC. 28.   Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
   Notwithstanding Section 17580 of the Government Code, unless
otherwise specified, the provisions of this act shall become
operative on the same date that the act takes effect pursuant to the
California Constitution.
  SEC. 29.   Section 16 of this act shall become effective upon the
approval by the voters, at the November 3, 1998, statewide general
election, of the Class Size Reduction Kindergarten-University Public
Education Facilities Bond Act of 1998, as set forth in Section 16 of
this act.
  SEC. 30.   (a) Notwithstanding any other provision of law, with
respect to the Class Size Reduction Kindergarten-University Public
Education Facilities Bond Act of 1998, all ballots of the November 3,
1998, statewide general election shall have printed thereon and in a
square thereof, exclusively the words:  "Class Size Reduction
Kindergarten-University Public Education Facilities Bond Act of 1998"
and in the same square under those words, the following in 8-point
type:  "This nine  billion two hundred million dollar
($9,200,000,000) bond issue will provide funding for necessary
education facilities for at least four years for class size
reduction, to relieve overcrowding and accommodate student enrollment
growth and to repair older schools and for wiring and cabling for
education technology.  Funds will also be used to upgrade and build
new classrooms in community colleges, the California State
University, and the University of California.  These bonds may be
used only for eligible construction projects."  Opposite the square,
there shall be left spaces in which the voters may place a cross in
the manner required by law to indicate whether they vote for or
against the act.
   (b) Notwithstanding Sections 13247 and 13281 of the Elections
Code, the language in subdivision (a) shall be the only language
included in the ballot label for the condensed statement of the
ballot title, and the Attorney General shall not supplement, subtract
from, or revise that language, except that the Attorney General may
include the financial impact summary prepared pursuant to Section
9087 of the Elections Code and Section 88003 of the Government Code.
The ballot label is the condensed statement of the ballot title and
the financial impact summary.
   (c) Where the voting in the election is done by means of voting
machines used pursuant to law in a manner that carries out the intent
of this section, the use of the voting machines and the expression
of the voters' choice by means thereof are in compliance with this
section.
  SEC. 31.   Section 3, Section 12, and Section 18 to  28, inclusive,
of this act shall not become operative before November 4, 1998, and
on that date shall become operative only if the Class Size Reduction
Kindergarten-University Public Education Facilities Bond Act of 1998
is approved by the voters at the November 3, 1998, statewide general
election.
  SEC. 32.   If the Class Size Reduction Kindergarten-University
Public Education Facilities Bond Act of 1998 is not approved by the
voters at the November 3, 1998, statewide general election, Section
17009.3 of the Education Code, as added by Section 2 of, and Chapter
12.5 (commencing with Section 17070.10) of Part 10 of the Education
Code, as added by Section 4 of, this act shall become inoperative on
November 4, 1998.
  SEC. 33.   Notwithstanding the requirements of Sections 9040, 9043,
9044, 9061, and 9082 of the Elections Code or any other provision of
law, the Secretary of State shall submit Section 16 of this act to
the voters at the November 3, 1998, statewide general election.
  SEC. 34.  Notwithstanding Section 13115 of the Elections Code,
Section 16 of this act shall be placed first on the ballot for the
November 3, 1998, statewide general election, and shall be designated
as Proposition 1A.
  SEC. 35.  Notwithstanding Section 13282 of the Elections Code, the
public shall be permitted to examine the condensed statement of the
ballot title regarding the measure set forth in Section 16 of this
act for not more than eight days, and the financial impact statement
from the time it is received by the Secretary of State until the end
of the eight days.  Any voter may seek a writ of mandate for the
purpose of requiring any statement of the ballot title, or portion
thereof, to be amended or deleted only within that eight-day period.

  SEC. 36.   The Secretary of State shall include, in the ballot
pamphlets mailed pursuant to Section 9094 of the Elections Code, the
information specified in Section 9084 of the Elections Code regarding
the bond act contained in Section 16 of this act.  If that inclusion
is not possible, the Secretary of State shall publish a supplemental
ballot pamphlet regarding this act to be mailed with the ballot
pamphlet.  If the supplemental ballot pamphlet cannot be mailed with
the ballot pamphlet, the supplemental ballot pamphlet shall be mailed
separately.
  SEC. 37.   This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  The facts constituting the necessity are:
   In order to provide adequate school facilities to house the
growing pupil population attending the California schools, to
facilitate class size reduction, to renovate existing facilities, to
provide for joint-use facilities, and to provide adequate higher
education facilities to accommodate the growing number of students,
it is necessary that this act take effect immediately.