BILL NUMBER: SB 1161	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Lowenthal

                        FEBRUARY 18, 2010

   An act to amend Section 17070.51 of the Education Code, relating
to school finance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1161, as introduced, Lowenthal. Education: school finance.
   Existing law, the Leroy F. Greene School Facilities Act of 1998,
provides the funding for the new construction and modernization of
school facilities. A procedure is provided for school districts to
apply for funding school construction or modernization pursuant to
this act.
   Existing law provides that if any certified eligibility or funding
application containing a material inaccuracy is found to have been
falsely certified by specified entities, the Office of Public School
Construction is required to notify the State Allocation Board of the
inaccuracy.
   Existing law requires the board to prohibit a school district from
self-certifying certain project information for any subsequent
applications for project funding for a period of up to 5 years
following the date of the finding of a material inaccuracy, or until
the district's repayment of the entire amount owed the fund.
   This bill would authorize the board to make the prohibition
against self-certification at its discretion, and would delete the
exception from the prohibition for the district's repayment. The bill
would make other technical changes.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 17070.51 of the Education Code is amended to
read:
   17070.51.  (a)  If  any  certified eligibility or
funding application  related  information 
identified by the board  is found to have been falsely certified
by school districts, architects or design professionals, hereinafter
referred to as a material inaccuracy, the Office of Public School
Construction shall notify the board.
   (b)  The board shall impose the following penalties if an
apportionment and fund release has been made based upon information
in the project application or related materials that constitutes a
material inaccuracy  , pursuant to subdivision (a)  .
   (1)  Pursuant to a repayment schedule approved by the board of no
more than five years, the school district shall repay to the board,
for deposit into the 1998 State School Facilities Fund, the 2002
State School Facilities Fund, or the 2004 State School Facilities
Fund, as the case may be, an amount proportionate to the additional
funding received as a result of the material inaccuracy including
interest at the rate paid on moneys in the Pooled Money Investment
Account or at the highest rate of interest for the most recent issue
of state general obligation bonds as established pursuant to the
Chapter 4 (commencing with Section 16720), of Part 3 of Division 4 of
Title 2 of the Government Code, whichever is greater.
   (2)  The board  shall   may  prohibit
the school district from self-certifying certain project information
for any subsequent applications for project funding for a period of
up to five years following the date of the finding of a material
inaccuracy  or until the district's repayment of the entire
amount owed under paragraph (1)  . Although a school
district that is subject to this paragraph may not self-certify, the
school district shall not be prohibited from applying for state
funding under this chapter. The board shall establish an alternative
method for state or independent certification of compliance that
shall be applicable in these cases. The process shall include, but
shall not be limited to, procedures for payment by the school
district of any increased costs associated with the alternative
certification process.
   (c)  For school districts found to have provided material
inaccuracies when a funding apportionment has occurred, but no fund
release has been made, the board shall direct its staff to reduce the
apportionment as necessary to reflect the actual nature of the
project and to disregard the inaccurate information or material, and
paragraph (2) of subdivision (b) shall apply.
   (d)  For those school districts found to have provided material
inaccuracies when no funding apportionment or fund release has been
made, the inaccurate information or materials shall not be
considered, and paragraph (2) of subdivision (b) shall apply. The
project may continue if the application, minus the inaccurate
materials, is still complete.