BILL NUMBER: AB 794	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 19, 2012
	AMENDED IN SENATE  SEPTEMBER 2, 2011
	AMENDED IN SENATE  AUGUST 15, 2011
	AMENDED IN SENATE  JULY 7, 2011
	AMENDED IN ASSEMBLY  MAY 3, 2011
	AMENDED IN ASSEMBLY  APRIL 13, 2011

INTRODUCED BY   Assembly Member Wieckowski

                        FEBRUARY 17, 2011

   An act to amend Section 15150 of the Education Code, relating to
school bonds.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 794, as amended, Wieckowski. Local education facility bonds:
anticipation notes.
   Existing law authorizes the governing board of a school 
district  or community college district to order an election and
submit to the electors of the district the question  of 
whether the bonds of the district shall be issued and sold for the
purpose of raising money for various facilities purposes, for
refunding bonds, or for the purchase of schoolbuses. Existing law
limits the total amount of bonds that a school or community college
district may issue to 1.25% of the taxable property of the school or
community college district.
   Existing law also authorizes the governing board of a school
district or community college district to issue bond anticipation
notes. Existing law requires a bond anticipation note to be payable
not more than 5 years from the date of the original issuance of the
note. Existing law  allows   requires  the
interest on the notes to be payable from the proceeds of the sale of
bonds or from the tax levied to pay principal of and interest on the
bonds.
   This bill, instead of  allowing   requiring
 the interest on the notes to be paid from the tax levied to pay
the principal of and interest on the bonds, would  allow
  authorize  the interest on the notes to be paid
from a property tax levied for that purpose if authorized by a
resolution of the governing board  of the school district or
community college district  and would provide that this tax is
authorized by law. The bill also would allow the premium received on
the sale of the bonds to be used to pay the interest on the notes.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 15150 of the Education Code is amended to read:

   15150.  (a) When the governing board of a school district or a
community college district deems it in the best interests of the
district, it may by resolution, upon terms and conditions that it
shall prescribe, issue notes, on a negotiated or competitive-bid
basis, maturing within a period not to exceed five years, in
anticipation of the sale of bonds authorized pursuant to Section
15100 or Section 15340 at the time the notes are issued. The proceeds
from the sale of the notes shall be used only for authorized
purposes of the bonds or to repay outstanding notes authorized by
this section.
   (b) All notes issued and any renewal of notes shall be payable at
a fixed time not more than five years from the date of the original
issuance of the note. If the sale of the bonds does not occur before
the maturity of the notes issued in anticipation of the sale, the
fiscal officer of the school district or community college district,
in order to meet the notes then maturing, shall issue renewal notes
for this purpose. The renewal of a note may not be issued after the
sale of bonds in anticipation of which the original note was issued
and the maturity date of the renewed note shall not be later than
five years from the date of the original issuance of the note.
   (c) Every note and any renewal of a note shall be payable from the
proceeds of the sale of bonds or of any renewal of notes or from
other funds of the school district or community college district
lawfully available for the purpose of repaying the notes, including
state grants. The total amount of the notes or renewals of notes
issued and outstanding may not at any time exceed the total amount of
the unsold bonds.
   (d) (1) Interest on the notes  shall   may
 be payable from proceeds of the sale of bonds in anticipation
of which the notes are issued, including any premium received on the
sale of those bonds.
   (2) Interest on the notes may be paid from a property tax levied
for that purpose if authorized by the resolution of the governing
board  of the school district   or community college
district  . The tax for payment of the interest on the notes is
a tax authorized by law for payment of the bonds in anticipation of
which the notes are issued.
   (e) The original issuance of notes and any renewal of notes may be
in the form of commercial paper notes. Each issuance of commercial
paper notes to repay outstanding notes shall be deemed to be a
renewal of notes subject only to the requirements of this section.