BILL NUMBER: AB 220 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 23, 2010
AMENDED IN ASSEMBLY JANUARY 15, 2010
AMENDED IN ASSEMBLY APRIL 14, 2009
INTRODUCED BY Assembly Member Brownley
(Coauthors: Assembly Members Caballero, Solorio, and Torlakson)
FEBRUARY 4, 2009
An act to amend Sections 17071.75, 17072.32, 17074.15,
17074.16, 17074.26, and 17076.10 of the Education Code,
Section 17070.40 of, and to add Part 70 (commencing with
Section 101100) to Division 14 of Title 3 of, the Education Code,
relating to public education facilities , by providing
the funds necessary therefor through an election for the issuance and
sale of bonds of the State of California and for the handling and
disposition of those funds, and declaring the urgency thereof, to
take effect immediately .
LEGISLATIVE COUNSEL'S DIGEST
AB 220, as amended, Brownley. Public education facilities:
Kindergarten-University Public Education Facilities Bond Act.
(1) The
(1) Existing law, the California Constitution, prohibits the
Legislature from creating a debt or liability that singly or in the
aggregate with any previous debts or liabilities exceeds the sum of
$300,000, except by an act that (A) authorizes the debt for a single
object or work specified in the act, (B) has been passed by a 2/3
vote of all the members elected to each house of the Legislature, (C)
has been submitted to the people at a statewide general or primary
election, and (D) has received a majority of all the votes cast for
and against it at that election.
The Leroy F. Greene School Facilities Act of 1998
(Greene Act) requires the State Allocation Board (board) to allocate
to applicant school districts , prescribed
per-unhoused-pupil state funding for construction and modernization
of school facilities, including hardship funding, and supplemental
funding for site development and acquisition.
Existing law requires the ongoing eligibility of a school district
for new construction funding to be determined by making specified
calculations, one of which is to add the number of pupils who can be
adequately housed in the existing school building capacity of a
school district to the number of pupils for whom facilities were
provided from any state or local funding source after the existing
school building capacity was determined.
This bill would revise the calculation described above by
specifying that the 2nd addend is the number of pupils for whom
permanent facilities were provided from any state source or permanent
facilities provided entirely from a local funding source after the
existing school building capacity was determined.
(2) Existing law requires that funding for an approved new
construction school facilities project be released equal to the
amount of the local match when the school district certifies that it
has entered into a binding contract for completion of the project.
The same certification is required to be made in connection with the
release of disbursements for modernization projects. If the school
district receives an apportionment, but has not met the criteria to
have funds released within a period established by the board, but not
to exceed 18 months, the board is required to rescind the
apportionment and deny the district's application.
This bill would require the school district instead to certify
that it has entered into a binding contract for professional services
or for construction, or both, in order to complete the approved
project. The bill would no longer authorize the board to establish a
period of less than 18 months within which a school district is
allowed to meet the criteria to have funds released and would
establish 18 months as that period. The board would be authorized, at
its discretion, to extend the 18-month period.
(3) The bill also would make technical, nonsubstantive changes.
This bill would enact the Kindergarten-University Public Education
Facilities Bond Act of 2010, to become operative only if approved by
the voters at the November 2, 2010, statewide general election, and
would provide for the submission of that act to the voters at that
election. The bond act, if approved by the voters, would provide for
the issuance of $6,100,000,000 of the general obligation bonds to
provide aid to school districts, county superintendents of schools,
and county boards of education, the California Community Colleges,
the University of California, the Hastings College of the Law, and
the California State University to construct and modernize education
facilities.
(2) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: yes. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17070.40 of the
Education Code is amended to read:
17070.40. (a) (1) 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 without regard
to fiscal years for expenditure pursuant to this chapter.
(2) The 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.
(3) 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 committee, but not yet sold by
the Treasurer.
(4) 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.
(b) (1) A fund is hereby established in the State Treasury to be
known as the 2002 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 without regard to fiscal years
for expenditure pursuant to this chapter.
(2) The board may apportion funds to school districts for the
purposes of this chapter from funds transferred to the 2002 State
School Facilities Fund from any source.
(3) The board may make apportionments in amounts not exceeding
those funds on deposit in the 2002 State School Facilities Fund, and
any amount of bonds authorized by the committee, but not yet sold by
the Treasurer.
(4) The board may make disbursements pursuant to any apportionment
made from any funds in the 2002 State School Facilities Fund,
irrespective of whether there exists at the time of the disbursement
an amount in the 2002 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.
(c) (1) A fund is hereby established in the State Treasury to be
known as the 2004 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 without regard to fiscal years
for expenditure pursuant to this chapter.
(2) The board may apportion funds to school districts for the
purposes of this chapter from funds transferred to the 2004 State
School Facilities Fund from any source.
(3) The board may make apportionments in amounts not exceeding
those funds on deposit in the 2004 State School Facilities Fund, and
any amount of bonds authorized by the committee, but not yet sold by
the Treasurer.
(4) The board may make disbursements pursuant to any apportionment
made from any funds in the 2004 State School Facilities Fund,
irrespective of whether there exists at the time of the disbursement
an amount in the 2004 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.
(d) (1) A fund is hereby established in the State Treasury, to be
known as the 2006 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 without regard to fiscal years
for expenditure pursuant to this chapter.
(2) The board may apportion funds to school districts for the
purposes of this chapter from funds transferred to the 2006 State
School Facilities Fund from any source.
(3) The board may make apportionments in amounts not exceeding
those funds on deposit in the 2006 State School Facilities Fund, and
any amount of bonds authorized by the committee, but not yet sold by
the Treasurer.
(4) The board may make disbursements pursuant to any apportionment
made from any funds in the 2006 State School Facilities Fund,
irrespective of whether there exists at the time of the disbursement
an amount in the 2006 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.
(e) (1) A fund is hereby established in the State Treasury, to be
known as the 2010 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 without regard to fiscal years
for expenditure pursuant to this chapter.
(2) The board may apportion funds to school districts for the
purposes of this chapter from funds transferred to the 2010 State
School Facilities Fund from any source.
(3) The board may make apportionments in amounts not exceeding
those funds on deposit in the 2010 State School Facilities Fund, and
any amount of bonds authorized by the committee, but not yet sold by
the Treasurer.
(4) The board may make disbursements pursuant to any apportionment
made from any funds in the 2010 State School Facilities Fund,
irrespective of whether there exists at the time of the disbursement
an amount in the 2010 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.
SEC. 2. Part 70 (commencing with Section 101100)
is added to Division 14 of Title 3 of the Education Code
, to read:
PART 70. KINDERGARTEN-UNIVERSITY PUBLIC EDUCATION FACILITIES
BOND ACT OF 2010
CHAPTER 1. GENERAL
101100. This part shall be known and may be cited as the
Kindergarten-University Public Education Facilities Bond Act of 2010.
101101. The incorporation of, or reference to, any provision of
California statutory law in this part includes all acts amendatory
thereof and supplementary thereto.
101102. (a) Bonds in the total amount of six billion one hundred
million dollars ($6,100,000,000), not including the amount of any
refunding bonds issued in accordance with Sections 101130, 101139,
and 101159, 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 or the Higher Education Facilities Finance
Committee established pursuant to Section 67353, as the case may be,
at any different times necessary to service expenditures required by
the apportionments.
CHAPTER 2. KINDERGARTEN THROUGH 12TH GRADE
Article 1. Kindergarten Through 12th Grade School Facilities
Program Provisions
101110. The proceeds of bonds issued and sold pursuant to Article
2 (commencing with Section 101120) shall be deposited in the 2010
State School Facilities Fund established in the State Treasury under
subdivision (e) of Section 17070.40 and shall be allocated by the
State Allocation Board pursuant to this chapter.
101111. All moneys deposited in the 2010 State School Facilities
Fund for the purposes of this chapter shall be available to provide
aid to school districts, county superintendents of schools, and
county boards of education of the state in accordance with the Leroy
F. Greene School Facilities Act of 1998 (Chapter 12.5 (commencing
with Section 17070.10) of Part 10), as set forth in Section 101112,
to provide funds to repay any money advanced or loaned to the 2010
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.
101112. (a) The proceeds from the sale of bonds, issued and sold
for the purposes of this chapter, shall be allocated in accordance
with the following schedule:
(1) The amount of two billion five hundred million dollars
($2,500,000,000) to fund new construction of school facilities of
applicant school districts under Chapter 12.5 (commencing with
Section 17070.10) of Part 10.
(2) The amount of two hundred fifty million dollars ($250,000,000)
shall be available to fund school facilities for charter schools
pursuant to Article 12 (commencing with Section 17078.52) of Chapter
12.5 of Part 10.
(3) The amount of one billion dollars ($1,000,000,000) to fund the
modernization of school facilities pursuant to Chapter 12.5
(commencing with Section 17070.10) of Part 10.
(4) The amount of two hundred fifty million dollars ($250,000,000)
to fund the purposes set forth in Article 13 (commencing with
Section 17078.70) of Chapter 12.5 of Part 10, relating to facilities
for career technical education programs.
(5) The amount of fifty million dollars ($50,000,000) for the
purposes set forth in Article 10.6 (commencing with Section 17077.40)
of Chapter 12.5 of Part 10, relating to joint use projects.
(6) The amount of five hundred million dollars ($500,000,000) to
fund incentive grants to promote the use of designs and materials in
new construction and modernization projects that include the
attributes of high-performance schools, including, but not limited
to, the elements set forth in Section 17070.96, pursuant to
regulations adopted by the State Allocation Board.
(7) The amount of fifty million dollars ($50,000,000) for
preschool facilities to be located on elementary and secondary
schoolsites. The State Allocation Board shall adopt regulations for
the apportionment of funding made available for purposes of this
paragraph.
(b) School districts may use funds allocated pursuant to paragraph
(3) of subdivision (a) only for one or more of the following
purposes in accordance with Chapter 12.5 (commencing with Section
17070.10) of Part 10:
(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 modernization of facilities pursuant to Chapter 12.5
(commencing with Section 17070.10) of Part 10.
(c) Funds allocated pursuant to paragraph (1) of subdivision (a)
may also be utilized to provide new construction grants for eligible
applicant county boards of education under Chapter 12.5 (commencing
with Section 17070.10) of Part 10 for funding classrooms for severely
handicapped pupils, or for funding classrooms for county community
school pupils.
(d) Funds available pursuant to this section may be used for
acquisition of school facilities authorized pursuant to Section
17280.5.
(e) For purposes of this part, "school district" includes a county
office of education and a county superintendent of schools.
Article 2. Kindergarten Through 12th Grade School Facilities
Fiscal Provisions
101120. (a) Of the total amount of bonds authorized to be issued
and sold pursuant to Chapter 1 (commencing with Section 101100),
bonds in the amount of four billion six hundred million dollars
($4,600,000,000) not including the amount of any refunding bonds
issued in accordance with Section 101130, 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.
101121. 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, 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 granted to, and duties imposed upon,
those committees by the Joint Rules of the Senate and the Assembly.
The Director of Finance shall provide assistance to the committee as
it may require. The Attorney General of the state is the legal
adviser of the committee.
101122. (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 to the extent that it conflicts with this part,
apply to the bonds and to this chapter and are hereby incorporated
into this chapter as though set forth in full within 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 2010 State School Facilities Fund.
101123. (a) Upon request of the State Allocation Board, 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.
(b) A request of the State Allocation Board pursuant to
subdivision (a) shall be supported by a statement of the
apportionments made and to be made for the purposes described in
Sections 101111 and 101112.
101124. 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 that is necessary to collect that additional sum.
101125. 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 101128, appropriated
without regard to fiscal years.
101126. 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.
101127. 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.
101128. 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 2010 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.
101129. All money deposited in the 2010 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.
101130. 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.
101131. 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 XIII B of
the California Constitution, the disbursement of these proceeds is
not subject to the limitations imposed by that article.
CHAPTER 3. CALIFORNIA COMMUNITY COLLEGE FACILITIES
Article 1. General
101132. (a) The 2010 California Community College Capital Outlay
Bond Fund is hereby established in the State Treasury for deposit of
funds from the proceeds of bonds issued and sold for the purposes of
this chapter.
(b) 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
California Community Colleges.
Article 2. California Community College Program Provisions
101133. (a) From the proceeds of bonds issued and sold pursuant
to Article 3 (commencing with Section 101134), the sum of eight
hundred million dollars ($800,000,000) shall be deposited in the 2010
California Community College Capital Outlay Bond Fund for the
purposes of this article. When appropriated, these funds shall be
available for expenditure for the purposes of this article.
(b) The purposes of this article include assisting in meeting the
capital outlay financing needs of the California Community Colleges.
(c) Proceeds from the sale of bonds issued and sold for the
purposes of this article may be used to fund construction on existing
campuses, including the construction of buildings and the
acquisition of related fixtures, construction of facilities that may
be used by more than one segment of public higher education
(intersegmental), 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 for facilities of the California Community Colleges.
Article 3. California Community College Fiscal Provisions
101134. (a) Of the total amount of bonds authorized to be issued
and sold pursuant to Chapter 1 (commencing with Section 101100),
bonds in the total amount of eight hundred million dollars
($800,000,000), not including the amount of any refunding bonds
issued in accordance with Section 101139, 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) It is the intent of the Legislature that the California
Community Colleges annually consider, as part of their annual capital
outlay planning process, the inclusion of facilities that may be
used by more than one segment of public higher education
(intersegmental), and, that on or before May 15th of each year, those
entities report their findings to the budget committees of each
house of the Legislature.
(c) 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.
101134.5. (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 to the extent that it conflicts with this part,
apply to the bonds and to this chapter and are hereby incorporated
into this chapter as though set forth in full within this chapter.
(b) For the purposes of the State General Obligation Bond Law,
each state agency administering an appropriation of the 2010
Community College 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
California Community Colleges for the construction on existing or new
campuses, and their respective off-campus centers and joint use and
intersegmental facilities, as set forth in this chapter.
101135. 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.
101135.5. 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.
101136. 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 101137.5, appropriated
without regard to fiscal years.
101136.5. The board, as defined in subdivision (b) of Section
101134.5, 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 101134.5, 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.
101137. 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.
101137.5. (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 2010 California
Community College 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 California Community
Colleges shall be accompanied by the five-year capital outlay plan
that reflects the needs and priorities of the community college
system and is prioritized on a statewide basis. Requests shall
include a schedule that prioritizes the seismic retrofitting needed
to significantly reduce, in the judgment of the particular college,
seismic hazards in buildings identified as high priority by the
college.
101138. All money deposited in the 2010 California Community
College 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.
101139. 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.
101139.5. 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
XIII B of the California Constitution, the disbursement of these
proceeds is not subject to the limitations imposed by that article.
CHAPTER 4. UNIVERSITY FACILITIES
Article 1. General
101140. (a) The system of public universities in this state
includes the University of California, the Hastings College of the
Law, and the California State University, and their respective
off-campus centers.
(b) The 2010 University Capital Outlay Bond Fund is hereby
established in the State Treasury for deposit of funds from the
proceeds of bonds issued and sold for the purposes of this chapter.
(c) 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, and the
California State University.
Article 2. Program Provisions Applicable to the University of
California and the Hastings College of the Law
101141. (a) From the proceeds of bonds issued and sold pursuant
to Article 4 (commencing with Section 101150), the sum of three
hundred fifty million dollars ($350,000,000) shall be deposited in
the 2010 University Capital Outlay Bond Fund for the purposes of this
article. When appropriated, these funds shall be available for
expenditure for the purposes of this article.
(b) The purposes of this article include assisting in meeting the
capital outlay financing needs of the University of California and
the Hastings College of the Law.
(c) Proceeds from the sale of bonds issued and sold for the
purposes of this article may be used to fund construction on existing
campuses, including the construction of buildings and the
acquisition of related fixtures, construction of facilities that may
be used by more than one segment of public higher education
(intersegmental), 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 for facilities of the University of California and the
Hastings College of the Law.
Article 3. Program Provisions Applicable to the California
State University
101142. (a) From the proceeds of bonds issued and sold pursuant
to Article 4 (commencing with Section 101150), the sum of three
hundred fifty million dollars ($350,000,000) shall be deposited in
the 2010 University Capital Outlay Bond Fund for the purposes of this
article. When appropriated, these funds shall be available for
expenditure for the purposes of this article.
(b) The purposes of this article include assisting in meeting the
capital outlay financing needs of the California State University.
(c) Proceeds from the sale of bonds issued and sold for the
purposes of this article may be used to fund construction on existing
campuses, including the construction of buildings and the
acquisition of related fixtures, construction of facilities that may
be used by more than one segment of public higher education
(intersegmental), 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 for facilities of the California State University.
Article 4. University Fiscal Provisions
101150. (a) Of the total amount of bonds authorized to be issued
and sold pursuant to Chapter 1 (commencing with Section 101100),
bonds in the amount of seven hundred million dollars ($700,000,000),
not including the amount of any refunding bonds issued in accordance
with Section 101159, 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.
101151. (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 to the extent that it conflicts with this part,
apply to the bonds and to this chapter and are hereby incorporated
into this chapter as though set forth in full within this chapter.
(b) For the purposes of the State General Obligation Bond Law,
each state agency administering an appropriation of the 2010
University 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, and the
California State University, for the construction on existing or new
campuses, and their respective off-campus centers and joint use and
intersegmental facilities, as set forth in this chapter.
101152. 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.
101153. 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.
101154. 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 101157, appropriated
without regard to fiscal years.
101155. The board, as defined in subdivision (b) of Section
101151, 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 101151, 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.
101156. 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.
101157. (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 2010 University
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 Hastings College of the Law, or the California State University
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,
in the judgment of the particular university or college, seismic
hazards in buildings identified as high priority by the university or
college.
101158. All money deposited in the 2010 University 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.
101159. 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.
101160. 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 XIII B of
the California Constitution, the disbursement of these proceeds is
not subject to the limitations imposed by that article.
SEC. 3. Section 2 of this act shall take effect
only upon the approval by the voters of the Kindergarten-University
Public Education Facilities Bond Act of 2010, as set forth in that
section.
SEC. 4. Notwithstanding Section 9040 of the
Elections Code, the Secretary of State shall submit Section 2 of this
act to the voters at the November 2, 2010, statewide general
election in accordance with provisions of the Government Code and the
Elections Code governing the submission of a statewide measure to
the voters.
SEC. 5. (a) 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 2 of this act to the voters at the November 2, 2010,
statewide general election.
(b) Notwithstanding Section 13115 of the Elections Code, Section 2
of this act and any other measure placed on the ballot by the
Legislature for the November 2, 2010, statewide general election
after the 131-day deadline set forth in Section 9040 of the Elections
Code shall be placed on the ballot, following all other ballot
measures, in the order in which they qualified as determined by
chapter number.
SEC. 6. Where voting in the election is done by
means of voting machines used pursuant to law in a manner that
carries out the intent of Section 7 of this act, the use of the
voting machines and the expression of the voters' choice by means
thereof are in compliance with Section 7 of this act.
SEC. 7. Notwithstanding any other provision of
law, all ballots of the November 2, 2010, statewide general election,
shall have printed thereon and in a square thereof, exclusively the
words: "Kindergarten-University Public Education Facilities Bond Act
of 2010" and in the same square under those words, the following in
8-point type:
"This six billion one hundred million dollar ($6,100,000,000) bond
issue will provide funding for education facilities to relieve
overcrowding and to repair older schools. Funds will also be used to
upgrade and build new classrooms in the California Community
Colleges, the California State University, the Hastings College of
the Law, and the University of California, to provide higher
education facilities to accommodate the growing student enrollment."
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.
SEC. 8. Notwithstanding Sections 13247 and 13281
of the Elections Code, the language in Section 7 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.
SEC. 9. 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 for this measure to be placed on the ballot for approval
by the voters at the November 2, 2010, statewide general election, so
that necessary funds for the construction and modernization of
public education facilities are available as soon as possible, it is
necessary that this act take effect immediately. All matter
omitted in this version of the bill appears in the bill as amended in
the Assembly, January 15, 2010. (JR11)