AB 794 Assembly Bill

BILL NUMBER: AB 794	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 24, 2012
	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  district  or community college district
may issue to 1.25% of the taxable property of the school 
district  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 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 requiring the interest on the notes to be
paid from the tax levied to pay the principal of and interest on the
bonds, would 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  if the principal amount of the notes does not
exceed the remaining principal amount of authorized but unissued
bonds. The bill  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.  The bill
also would provide that the notes may be issued only if the tax rate
levied to pay interest on the notes would not cause the school
district or community college district to exceed the limitations set
forth in specified existing law. 
   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 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   under
the following conditions: 
    (A)     A  resolution of the governing
board of the school district or community college district 
authorizes the levying of the tax  . 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. 
   (B) The principal amount of the notes does not exceed the
remaining principal amount of authorized but unissued bonds. 

    (3) The notes may be issued only if the tax rate levied to pay
interest on the notes would not cause the school district or
community college district to exceed any of the limitations set forth
in Section 15268 or 15270, as applicable. 
   (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.