BILL NUMBER: AB 2560	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 14, 2010

INTRODUCED BY   Assembly Member Brownley
    (   Coauthor:   Senator   Hancock
  ) 

                        FEBRUARY 19, 2010

   An act to  amend Section 17074.26 of   add
Section 12001.6 to  the Education Code, relating to 
school facilities   education finance  .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2560, as amended, Brownley.  School facilities:
construction: modernization.   Education finance:
federal tax credit bond volume cap.  
   Existing law assigns specified amounts of the state's 2009 federal
tax credit bond volume cap to the State Department of Education and
the California School Finance Authority, to be assigned and
distributed to school districts, county offices of education, and
charter schools, as specified.  
   This bill would authorize the department to assign and distribute
the state's 2010 federal tax credit bond volume cap for qualified
school construction bonds to or for the benefit of school districts
and county offices of education and would authorize the authority to
assign and distribute the state's 2010 federal tax credit bond volume
cap for qualified school construction bonds to or for the benefit of
charter schools, or to be further assigned and distributed to one or
more issuers in the state for the benefit of charter schools, as
determined by the authority.  
   Existing law, the Leroy F. Greene School Facilities Act of 1998,
requires the State Allocation 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 board to adopt regulations to
adjust the per-pupil amounts for modernization projects for school
buildings that are 50 years old or older based on the higher costs
associated with modernizing older buildings.  
   This bill would correct an erroneous cross-reference in the
provision requiring the board to adopt regulations adjusting the
grant amounts for older buildings. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) In 2009, the United States Congress passed and the President
signed into law the American Recovery and Reinvestment Act (Public
Law 111-5) in order to provide funding and other economic stimulus to
foster economic recovery among the states.  
   (b) The federal tax credit bond volume cap for qualified school
construction bonds is included in the federal American Recovery and
Reinvestment Act and can be used to lower the cost of financing the
construction, rehabilitation, or repair of a public school facility
or for the acquisition of land where a school will be built. 

   (c) On March 17, 2010, the United States Department of the
Treasury released the second and final allocation authority of eleven
billion dollars ($11,000,000,000) in federal tax credit bond volume
cap for qualified school construction bond, of which six billion six
hundred million dollars ($6,600,000,000) will be allocated directly
to the states and four billion four hundred million dollars
($4,400,000,000) will be allocated to 103 large, local educational
agencies based upon the enrollment of pupils who qualify for the
federal free or reduced price meal program.  
   (d) In order to allocate the seven hundred twenty million
fifty-eight thousand dollars ($720,058,000) in federal tax credit
bond volume cap for qualified school construction bonds provided to
California in 2010, this act is necessary to provide the authority to
the department and the California School Finance Authority to make
distributions to local educational agencies and eligible charter
schools. 
   SEC. 2.    Section 12001.6 is added to t  
he   Education Code   , to read:  
   12001.6.  (a) The Legislature hereby finds and declares that the
federal tax credit bond volume cap for qualified school construction
bonds designated for the state by the federal American Recovery and
Reinvestment Act of 2009 (Public Law 111-5), together with Internal
Revenue Service Notice 2010-17 issued pursuant thereto, does not
constitute federal moneys, federal funds, or funds of any kind for
any purpose under this code.
   (b) The department is authorized to assign and distribute the
state's 2010 federal tax credit bond volume cap for qualified school
construction bonds to or for the benefit of school districts and
county offices of education in the state.
   (c) The California School Finance Authority, established pursuant
to Section 17172, is authorized to assign and distribute the state's
2010 federal tax credit bond volume cap for qualified school
construction bonds to or for the benefit of charter schools, or to be
further assigned and distributed to one or more issuers in the state
for the benefit of charter schools, as determined by the authority.
 
  SECTION 1.    Section 17074.26 of the Education
Code is amended to read:
   17074.26.  The board shall adopt regulations to adjust the
per-pupil amounts set forth in Section 17074.10 for modernization
projects for school buildings that are 50 years old or older based
upon the higher costs associated with modernizing older buildings.