BILL NUMBER: SB 1205	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 28, 2012

INTRODUCED BY   Senator Wyland

                        FEBRUARY 22, 2012

   An act to amend Section  15272 of the Education 
 53532 of the Government  Code, relating to school bonds.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1205, as amended, Wyland. School bonds:  ballot
requirements.   discounts.  
   Existing law specifies that bonds issued by a local agency, as
defined, may bear interest at a coupon rate or rates as determined by
the legislative body in its discretion but not to exceed 12% per
year payable. Existing law also specifies that, notwithstanding this
provision, a local agency may, where authorized by law, sell bonds at
a discount below par.  
   This bill would prohibit a school district or community college
district from issuing bonds at a discount exceeding 5%, as specified.
 
   Existing law authorizes the governing board of a school district,
community college district, or school facilities improvement
district, pursuant to a 2/3 vote of the governing board, to pursue
the authorization and issuance of bonds by a 55% vote of the
electorate, subject to certain additional requirements. Existing law
requires, for bond measures pursued under this authority, in addition
to specified ballot requirements, that the ballot be printed with a
statement that the governing board will appoint a citizens' oversight
committee and conduct annual independent audits to ensure that funds
are spent only on school and classroom improvements and for no other
purposes.  
   This bill would make various nonsubstantive changes to the latter
provision. 
   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   53532 of
the   Government Code   is amended to read: 
   53532.  The provisions of Section 53531 shall apply only to coupon
rates and shall not affect the power of a local agency to sell bonds
at a discount below par if permitted by law  , except that a
school district or community college district shall not issue bonds
at a discount exceeding 5 percent as provided by subdivi  
sion (e) of Section 15146 of the Education Code  . Any provision
of law permitting bonds to be sold at a discount but specifying a
maximum interest yield on bonds sold at a discount to the contrary
notwithstanding, the bonds may be sold at a price yielding to the
purchaser an effective interest rate of not to exceed 12 percent per
year, payable as permitted by law, according to standard tables of
bond values. 
  SECTION 1.    Section 15272 of the Education Code
is amended to read:
   15272.  In addition to the ballot requirements of Section 15122
and the ballot provisions of this code applicable to governing board
member elections, for bond measures pursuant to this chapter, the
ballot shall also be printed with a statement that the governing
board of a school district, community college district, or school
facilities improvement district will appoint a citizens' oversight
committee and conduct annual independent audits to ensure that funds
are spent only on school and classroom improvements and for no other
purposes.