Amended in Senate June 23, 2014

Amended in Assembly May 23, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2235

Introduced by Assembly Members Buchanan and Hagman

(Coauthors: Assembly Members Bocanegra, Bonta, Ian Calderon, Chávez, Chesbro, Fong, Gonzalez, Maienschein, Medina, Nazarian, Olsen, V. Manuel Pérez, Quirk-Silva, and Skinner)

February 21, 2014

An act to amend Sections 17070.40 and 17074.26 of, to add Sections 17071.15, 17072.40, and 17073.16 to, to add Part 70 (commencing with Section 101100) to Division 14 of Title 3 of, and to repeal Sections 17070.99, 17071.33, 17071.35, and 17071.40 of, the Education Code, relating to education facilities, by providing the funds necessary therefor through an election for the issuance and sale of bonds of the State of California and for the handling and disposition of those funds, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

AB 2235, as amended, Buchanan. Education facilities: Kindergarten-University Public Education Facilities Bond Act of 2014.

(1) 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.

This bill would delete a provision requiring the State Allocation Board to conduct an evaluation of the cost of new construction and modernization of small high schools in conjunction with a specified pilot program.

The bill would require each school district that elects to participate in a new construction program funded by the proceeds of any bond approved by the voters after November 1, 2014, to reestablish eligibility, as specified.

The bill would require the Office of Public School Construction to recommend regulations to the board to provide school districts with flexibility in designing instruction facilities.

(2) Existing law, the California Constitution, prohibits the Legislature from creating a debt or liability that singly or in the aggregate with any previous debts or liabilities exceeds the sum of $300,000, except by an act that (a) authorizes the debt for a single object or work specified in the act, (b) has been passed by a 2⁄3 vote of all the members elected to each house of the Legislature, (c) has been submitted to the people at a statewide general or primary election, and (d) has received a majority of all the votes cast for and against it at that election.

This bill would enact the Kindergarten-University Public Education Facilities Bond Act of 2014 to authorize begin delete $9,000,000,000 end delete begin insert an unspecified amount end insert of state general obligation bonds, as scheduled, to provide aid to school districts, county superintendents of schools, county boards of education, charter schools, the California Community Colleges, the University of California, the Hastings College of the Law, and the California State University to construct and modernize education facilities. The proceeds of these bonds would be deposited in the continuously appropriated 2014 State School Facilities Fund, which this bill would establish, thereby making an appropriation.

The bond act would become operative only if approved by the voters at the November 4, 2014, statewide general election, and would provide for its submission to the voters at that election.

(3) This bill would specify that it would become operative only if the Kindergarten-University Public Education Facilities Bond Act of 2014 is approved by the voters at the November 4, 2014, statewide general election.

(4) The bill would make conforming changes in related provisions of existing law.

(5) This bill would declare that it is to take effect immediately as an urgency statute.

Vote: ²⁄₃. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 17070.40 of the Education Code is
amended to read:

17070.40.  

(a) (1) A fund is hereby established in the State
Treasury begin insert , end insert to be known as the 1998 State School Facilities Fund.
All money in the fund, including any money deposited in that fund
from any source whatsoever, and notwithstanding Section 13340
of the Government Code, is hereby continuously appropriated
without regard to fiscal years for expenditure pursuant to this
chapter.

(2) The board may apportion funds to school districts for the
purposes of this chapter from funds transferred to the 1998 State
School Facilities Fund from any source.

(3) The board may make apportionments in amounts not
exceeding those funds on deposit in the 1998 State School Facilities
Fund, and any amount of bonds authorized by the committee, but
not yet sold by the Treasurer.

(4) The board may make disbursements pursuant to any
apportionment made from any funds in the 1998 State School
Facilities Fund, irrespective of whether there exists at the time of
the disbursement an amount in the 1998 State School Facilities
Fund sufficient to permit payment in full of all apportionments
previously made. However, no disbursement shall be made from
any funds required by law to be transferred to the General Fund.

(b) (1) A fund is hereby established in the State Treasury begin insert , end insert to
be known as the 2002 State School Facilities Fund. All money in
the fund, including any money deposited in that fund from any
source whatsoever, and notwithstanding Section 13340 of the
Government Code, is hereby continuously appropriated without
regard to fiscal years for expenditure pursuant to this chapter.

(2) The board may apportion funds to school districts for the
purposes of this chapter from funds transferred to the 2002 State
School Facilities Fund from any source.

(3) The board may make apportionments in amounts not
exceeding those funds on deposit in the 2002 State School Facilities
Fund, and any amount of bonds authorized by the committee, but
not yet sold by the Treasurer.

(4) The board may make disbursements pursuant to any
apportionment made from any funds in the 2002 State School
Facilities Fund, irrespective of whether there exists at the time of
the disbursement an amount in the 2002 State School Facilities
Fund sufficient to permit payment in full of all apportionments
previously made. However, no disbursement shall be made from
any funds required by law to be transferred to the General Fund.

(c) (1) A fund is hereby established in the State Treasury begin insert , end insert to
be known as the 2004 State School Facilities Fund. All money in
the fund, including any money deposited in that fund from any
source whatsoever, and notwithstanding Section 13340 of the
Government Code, is hereby continuously appropriated without
regard to fiscal years for expenditure pursuant to this chapter.

(2) The board may apportion funds to school districts for the
purposes of this chapter from funds transferred to the 2004 State
School Facilities Fund from any source.

(3) The board may make apportionments in amounts not
exceeding those funds on deposit in the 2004 State School Facilities
Fund, and any amount of bonds authorized by the committee, but
not yet sold by the Treasurer.

(4) The board may make disbursements pursuant to any
apportionment made from any funds in the 2004 State School
Facilities Fund, irrespective of whether there exists at the time of
the disbursement an amount in the 2004 State School Facilities
Fund sufficient to permit payment in full of all apportionments
previously made. However, no disbursement shall be made from
any funds required by law to be transferred to the General Fund.

(d) (1) A fund is hereby established in the State Treasury, to
be known as the 2006 State School Facilities Fund. All money in
the fund, including any money deposited in that fund from any
source whatsoever, and notwithstanding Section 13340 of the
Government Code, is hereby continuously appropriated without
regard to fiscal years for expenditure pursuant to this chapter.

(2) The board may apportion funds to school districts for the
purposes of this chapter from funds transferred to the 2006 State
School Facilities Fund from any source.

(3) The board may make apportionments in amounts not
exceeding those funds on deposit in the 2006 State School Facilities
Fund, and any amount of bonds authorized by the committee, but
not yet sold by the Treasurer.

(4) The board may make disbursements pursuant to any
apportionment made from any funds in the 2006 State School
Facilities Fund, irrespective of whether there exists at the time of
the disbursement an amount in the 2006 State School Facilities
Fund sufficient to permit payment in full of all apportionments
previously made. However, no disbursement shall be made from
any funds required by law to be transferred to the General Fund.

(e) (1) A fund is hereby established in the State Treasury, to
be known as the 2014 State School Facilities Fund. All money in
the fund, including any money deposited in that fund from any
source whatsoever, and notwithstanding Section 13340 of the
Government Code, is hereby continuously appropriated without
regard to fiscal years for expenditure pursuant to this chapter.

(2) The board may apportion funds to school districts for the
purposes of this chapter from funds transferred to the 2014 State
School Facilities Fund from any source.

(3) The board may make apportionments in amounts not
exceeding those funds on deposit in the 2014 State School Facilities
Fund, and any amount of bonds authorized by the committee, but
not yet sold by the Treasurer.

(4) The board may make disbursements pursuant to any
apportionment made from any funds in the 2014 State School
Facilities Fund, irrespective of whether there exists at the time of
the disbursement an amount in the 2014 State School Facilities
Fund sufficient to permit payment in full of all apportionments
previously made. However, no disbursement shall be made from
any funds required by law to be transferred to the General Fund.

SEC. 2.  

Section 17070.99 of the Education Code is repealed.

SEC. 3.  

Section 17071.15 is added to the Education Code, to
read:

17071.15.  

Notwithstanding Section 17071.10, the board may
require each school district that elects to participate in the new
construction program funded by the proceeds of any bond approved
by voters after November 1, 2014, to reestablish eligibility pursuant
to regulations adopted by the board.

SEC. 4.  

Section 17071.33 of the Education Code is repealed.

SEC. 5.  

Section 17071.35 of the Education Code is repealed.

SEC. 6.  

Section 17071.40 of the Education Code is repealed.

SEC. 7.  

Section 17072.40 is added to the Education Code, to
read:

17072.40.  

The Office of Public School Construction, in
consultation with the State Department of Education, shall
recommend to the board regulations that will provide school
districts with flexibility in designing instructional facilities.

SEC. 8.  

Section 17073.16 is added to the Education Code, to
read:

17073.16.  

The board may require each school district that elects
to participate in the modernization program funded by the proceeds
of any bond approved by voters after November 1, 2014, to
reestablish baseline eligibility for each schoolsite pursuant to
regulations adopted by the board.

SEC. 9.  

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.

SEC. 10.  

Part 70 (commencing with Section 101100) is added
to Division 14 of Title 3 of the Education Code, to read:

 

PART 70.  KINDERGARTEN-UNIVERSITY PUBLIC
EDUCATION FACILITIES BOND ACT OF 2014

 

Chapter  1. General

 

101100.  

This part shall be known and may be cited as the
Kindergarten-University Public Education Facilities Bond Act of
2014.

101101.  

The incorporation of, or reference to, any provision
of California statutory law in this part includes all acts amendatory
thereof and supplementary thereto.

101102.  

(a) Bonds in the total amount of begin delete nine billion dollars
($9,000,000,000), end delete begin insert ____ dollars ($____), end insert not including the amount
of any refunding bonds issued in accordance with Sections 101130,
101139, and 101159, or so much thereof as is necessary, may be
issued and sold to provide a fund to be used for carrying out the
purposes expressed in this part and to reimburse the General
Obligation Bond Expense Revolving Fund pursuant to Section
16724.5 of the Government Code. The bonds, when sold, shall be
and constitute a valid and binding obligation of the State of
California, and the full faith and credit of the State of California
is hereby pledged for the punctual payment of the principal of, and
interest on, the bonds as the principal and interest become due and
payable.

(b) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the State School Building Finance Committee
established by Section 15909 or the Higher Education Facilities
Finance Committee established pursuant to Section 67353, as the
case may be, at any different times necessary to service
expenditures required by the apportionments.

 

Chapter  2. Kindergarten Through 12th Grade

 

Article 1.  Kindergarten Through Grade 12 School Facilities
Program Provisions

 

101110.  

The proceeds of bonds issued and sold pursuant to
Article 2 (commencing with Section 101120) shall be deposited
in the 2014 State School Facilities Fund established in the State
Treasury under subdivision (e) of Section 17070.40, and shall be
allocated by the State Allocation Board pursuant to this chapter.

101111.  

All moneys deposited in the 2014 State School
Facilities Fund for the purposes of this chapter shall be available
to provide aid to school districts, county superintendents of schools,
and county boards of education of the state in accordance with the
Leroy F. Greene School Facilities Act of 1998 (Chapter 12.5
(commencing with Section 17070.10) of Part 10 of Division 1 of
Title 1), as set forth in Section 101112, to provide funds to repay
any money advanced or loaned to the 2014 State School Facilities
Fund under any act of the Legislature, together with interest
provided for in that act, and to reimburse the General Obligation
Bond Expense Revolving Fund pursuant to Section 16724.5 of the
Government Code.

101112.  

(a) The proceeds from the sale of bonds, issued and
sold for the purposes of this chapter, shall be allocated in
accordance with the following schedule:

(1) The amount of begin delete two billion two hundred fifty million dollars
($2,250,000,000) end delete begin insert ____ dollars ($____) end insert for new construction of
school facilities of applicant school districts under Chapter 12.5
(commencing with Section 17070.10) of Part 10 of Division 1 of
Title 1.

(2) The amount of begin delete five hundred million dollars ($500,000,000) end delete
begin insert ____ dollars ($____) end insert shall be available for providing school
facilities to charter schools pursuant to Article 12 (commencing
with Section 17078.52) of Chapter 12.5 of Part 10 of Division 1
of Title 1.

(3) The amount of begin delete three billion two hundred fifty million dollars
($3,250,000,000) end delete begin insert ____ dollars ($____) end insert for the modernization of
school facilities pursuant to Chapter 12.5 (commencing with
Section 17070.10) of Part 10 of Division 1 of Title 1.

(b) School districts may use funds allocated pursuant to
paragraph (3) of subdivision (a) only for one or more of the
following purposes in accordance with Chapter 12.5 (commencing
with Section 17070.10) of Part 10 of Division 1 of Title 1:

(1) The purchase and installation of air-conditioning equipment
and insulation materials, and related costs.

(2) Construction projects or the purchase of furniture or
equipment designed to increase school security or playground
safety.

(3) The identification, assessment, or abatement in school
facilities of hazardous asbestos.

(4) Project funding for high-priority roof replacement projects.

(5) Any other modernization of facilities pursuant to Chapter
12.5 (commencing with Section 17070.10) of Part 10 of Division
1 of Title 1.

(c) Funds allocated pursuant to paragraph (1) of subdivision (a)
may also be utilized to provide new construction grants for eligible
applicant county boards of education under Chapter 12.5
(commencing with Section 17070.10) of Part 10 of Division 1 of
Title 1 for funding classrooms for severely handicapped pupils,
or for funding classrooms for county community school pupils.

 

Article 2.  Kindergarten Through Grade 12 School Facilities
Fiscal Provisions

 

101120.  

(a) Of the total amount of bonds authorized to be
issued and sold pursuant to Chapter 1 (commencing with Section
101000), bonds in the amount of begin delete six billion dollars
($6,000,000,000), end delete begin insert ____ dollars ($____), end insert not including the amount
of any refunding bonds issued in accordance with Section 101130,
or so much thereof as is necessary, may be issued and sold to
provide a fund to be used for carrying out the purposes expressed
in this chapter and to reimburse the General Obligation Bond
Expense Revolving Fund pursuant to Section 16724.5 of the
Government Code. The bonds, when sold, shall be and constitute
a valid and binding obligation of the State of California, and the
full faith and credit of the State of California is hereby pledged
for the punctual payment of the principal of, and interest on, the
bonds as the principal and interest become due and payable.

(b) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the State School Building Finance Committee
established pursuant to Section 15909 at any different times
necessary to service expenditures required by the apportionments.

101121.  

The State School Building Finance Committee,
established by Section 15909 and composed of the Governor, the
Controller, the Treasurer, the Director of Finance, and the
Superintendent, or their designated representatives, all of whom
shall serve thereon without compensation, and a majority of whom
shall constitute a quorum, is continued in existence for the purpose
of this chapter. The Treasurer shall serve as chairperson of the
committee. Two Members of the Senate appointed by the Senate
Committee on Rules, and two Members of the Assembly appointed
by the Speaker of the Assembly, shall meet with and provide advice
to the committee to the extent that the advisory participation is not
incompatible with their respective positions as Members of the
Legislature. For the purposes of this chapter, the Members of the
Legislature shall constitute an interim investigating committee on
the subject of this chapter and, as that committee, shall have the
powers granted to, and duties imposed upon, those committees by
the Joint Rules of the Senate and the Assembly. The Director of
Finance shall provide assistance to the committee as it may require.
The Attorney General of the state is the legal adviser of the
committee.

101122.  

(a) The bonds authorized by this chapter shall be
prepared, executed, issued, sold, paid, and redeemed as provided
in the State General Obligation Bond Law (Chapter 4 (commencing
with Section 16720) of Part 3 of Division 4 of Title 2 of the
Government Code), and all of the provisions of that law, except
Section 16727 of the Government Code to the extent that it
conflicts with this part, apply to the bonds and to this chapter and
are hereby incorporated into this chapter as though set forth in full
within this chapter.

(b) For purposes of the State General Obligation Bond Law, the
State Allocation Board is designated the “board” for purposes of
administering the 2014 State School Facilities Fund.

101123.  

(a) Upon request of the State Allocation Board, the
State School Building Finance Committee shall determine whether
or not it is necessary or desirable to issue bonds authorized pursuant
to this chapter in order to fund the apportionments and, if so, the
amount of bonds to be issued and sold. Successive issues of bonds
may be authorized and sold to fund those apportionments
progressively, and it is not necessary that all of the bonds
authorized to be issued be sold at any one time.

(b) A request of the State Allocation Board pursuant to
subdivision (a) shall be supported by a statement of the
apportionments made and to be made for the purposes described
in Sections 101111 and 101112.

101124.  

There shall be collected each year and in the same
manner and at the same time as other state revenue is collected,
in addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year. It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act that is necessary to collect that additional sum.

101125.  

Notwithstanding Section 13340 of the Government
Code, there is hereby appropriated from the General Fund in the
State Treasury, for the purposes of this chapter, an amount that
will equal the total of the following:

(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this chapter, as the
principal and interest become due and payable.

(b) The sum necessary to carry out Section 101128, appropriated
without regard to fiscal years.

101126.  

The State Allocation Board may request the Pooled
Money Investment Board to make a loan from the Pooled Money
Investment Account or any other approved form of interim
financing, in accordance with Section 16312 of the Government
Code, for the purpose of carrying out this chapter. The amount of
the request shall not exceed the amount of the unsold bonds that
the committee, by resolution, has authorized to be sold for the
purpose of carrying out this chapter. The board shall execute any
documents required by the Pooled Money Investment Board to
obtain and repay the loan. Any amounts loaned shall be deposited
in the fund to be allocated by the board in accordance with this
chapter.

101127.  

Notwithstanding any other provision of this chapter,
or of the State General Obligation Bond Law, if the Treasurer sells
bonds pursuant to this chapter that include a bond counsel opinion
to the effect that the interest on the bonds is excluded from gross
income for federal tax purposes, subject to designated conditions,
the Treasurer may maintain separate accounts for the investment
of bond proceeds and for the investment earnings on those
proceeds. The Treasurer may use or direct the use of those proceeds
or earnings to pay any rebate, penalty, or other payment required
under federal law or take any other action with respect to the
investment and use of those bond proceeds required or desirable
under federal law to maintain the tax-exempt status of those bonds
and to obtain any other advantage under federal law on behalf of
the funds of this state.

101128.  

For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds
that have been authorized by the State School Building Finance
Committee to be sold for the purpose of carrying out this chapter.
Any amounts withdrawn shall be deposited in the 2014 State
School Facilities Fund consistent with this chapter. Any money
made available under this section shall be returned to the General
Fund, plus an amount equal to the interest that the money would
have earned in the Pooled Money Investment Account, from
proceeds received from the sale of bonds for the purpose of
carrying out this chapter.

101129.  

All money deposited in the 2014 State School Facilities
Fund that is derived from premium and accrued interest on bonds
sold shall be reserved in the fund, and shall be available for transfer
to the General Fund as a credit to expenditures for bond interest.

101130.  

The bonds may be refunded in accordance with Article
6 (commencing with Section 16780) of Chapter 4 of Part 3 of
Division 4 of Title 2 of the Government Code, which is a part of
the State General Obligation Bond Law. Approval by the voters
of the state for the issuance of the bonds described in this chapter
includes the approval of the issuance of any bonds issued to refund
any bonds originally issued under this chapter or any previously
issued refunding bonds.

101131.  

The Legislature hereby finds and declares that,
inasmuch as the proceeds from the sale of bonds authorized by
this chapter are not “proceeds of taxes” as that term is used in
Article XIII B of the California Constitution, the disbursement of
these proceeds is not subject to the limitations imposed by that
article.

 

Chapter  3. California Community College Facilities

 

Article 1.  General

 

101132.  

(a) The 2014 California Community College Capital
Outlay Bond Fund is hereby established in the State Treasury for
deposit of funds from the proceeds of bonds issued and sold for
the purposes of this chapter.

(b) The Higher Education Facilities Finance Committee
established pursuant to Section 67353 is hereby authorized to create
a debt or debts, liability or liabilities, of the State of California
pursuant to this chapter for the purpose of providing funds to aid
the California Community Colleges.

 

Article 2.  California Community College Program Provisions

 

101133.  

(a) From the proceeds of bonds issued and sold
pursuant to Article 3 (commencing with Section 101134), the sum
of begin delete two billion dollars ($2,000,000,000) end delete begin insert ____ dollars ($____) end insert shall
be deposited in the 2014 California Community College Capital
Outlay Bond Fund for the purposes of this article. When
appropriated, these funds shall be available for expenditure for the
purposes of this article.

(b) The purposes of this article include assisting in meeting the
capital outlay financing needs of the California Community
Colleges.

(c) Proceeds from the sale of bonds issued and sold for the
purposes of this article may be used to fund construction on
existing campuses, including the construction of buildings and the
acquisition of related fixtures, construction of facilities that may
be used by more than one segment of public higher education
(intersegmental), the renovation and reconstruction of facilities,
site acquisition, the equipping of new, renovated, or reconstructed
facilities, which equipment shall have an average useful life of 10
years; and to provide funds for the payment of preconstruction
costs, including, but not limited to, preliminary plans and working
drawings for facilities of the California Community Colleges.

 

Article 3.  California Community College Fiscal Provisions

 

101134.  

(a) Of the total amount of bonds authorized to be
issued and sold pursuant to Chapter 1 (commencing with Section
101100), bonds in the total amount of begin delete two billion dollars
($2,000,000,000), end delete begin insert ____ dollars ($____), end insert not including the amount
of any refunding bonds issued in accordance with Section 101139,
or so much thereof as is necessary, may be issued and sold to
provide a fund to be used for carrying out the purposes expressed
in this chapter and to reimburse the General Obligation Bond
Expense Revolving Fund pursuant to Section 16724.5 of the
Government Code. The bonds, when sold, shall be and constitute
a valid and binding obligation of the State of California, and the
full faith and credit of the State of California is hereby pledged
for the punctual payment of the principal of, and interest on, the
bonds as the principal and interest become due and payable.

(b) It is the intent of the Legislature that the California
Community Colleges annually consider, as part of their annual
capital outlay planning process, the inclusion of facilities that may
be used by more than one segment of public higher education
(intersegmental), and, that on or before May 15 of each year, those
entities report their findings to the budget committees of each
house of the Legislature.

(c) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the Higher Education Facilities Finance Committee
established pursuant to Section 67353 at any different times
necessary to service expenditures required by the apportionments.

101134.5.  

(a) The bonds authorized by this chapter shall be
prepared, executed, issued, sold, paid, and redeemed as provided
in the State General Obligation Bond Law (Chapter 4 (commencing
with Section 16720) of Part 3 of Division 4 of Title 2 of the
Government Code), and all of the provisions of that law, except
Section 16727 of the Government Code to the extent that it
conflicts with this part, apply to the bonds and to this chapter and
are hereby incorporated into this chapter as though set forth in full
within this chapter.

(b) For the purposes of the State General Obligation Bond Law,
each state agency administering an appropriation of the 2014
Community College Capital Outlay Bond Fund is designated as
the “board” for projects funded pursuant to this chapter.

(c) The proceeds of the bonds issued and sold pursuant to this
chapter shall be available for the purpose of funding aid to the
California Community Colleges for the construction on existing
or new campuses, and their respective off-campus centers and joint
use and intersegmental facilities, as set forth in this chapter.

101135.  

The Higher Education Facilities Finance Committee
established pursuant to Section 67353 shall authorize the issuance
of bonds under this chapter only to the extent necessary to fund
the apportionments for the purposes described in this chapter that
are expressly authorized by the Legislature in the annual Budget
Act. Pursuant to that legislative direction, the committee shall
determine whether or not it is necessary or desirable to issue bonds
authorized pursuant to this chapter in order to carry out the
purposes described in this chapter and, if so, the amount of bonds
to be issued and sold. Successive issues of bonds may be authorized
and sold to carry out those actions progressively, and it is not
necessary that all of the bonds authorized to be issued be sold at
any one time.

101135.5.  

There shall be collected each year and in the same
manner and at the same time as other state revenue is collected,
in addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year. It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act which is necessary to collect that additional sum.

101136.  

Notwithstanding Section 13340 of the Government
Code, there is hereby appropriated from the General Fund in the
State Treasury, for the purposes of this chapter, an amount that
will equal the total of the following:

(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this chapter, as the
principal and interest become due and payable.

(b) The sum necessary to carry out Section 101137.5,
appropriated without regard to fiscal years.

101136.5.  

The board, as defined in subdivision (b) of Section
101134.5, may request the Pooled Money Investment Board to
make a loan from the Pooled Money Investment Account or any
other approved form of interim financing, in accordance with
Section 16312 of the Government Code, for the purpose of carrying
out this chapter. The amount of the request shall not exceed the
amount of the unsold bonds that the committee, by resolution, has
authorized to be sold for the purpose of carrying out this chapter.
The board, as defined in subdivision (b) of Section 101134.5, shall
execute any documents required by the Pooled Money Investment
Board to obtain and repay the loan. Any amounts loaned shall be
deposited in the fund to be allocated by the board in accordance
with this chapter.

101137.  

Notwithstanding any other provision of this chapter,
or of the State General Obligation Bond Law, if the Treasurer sells
bonds pursuant to this chapter that include a bond counsel opinion
to the effect that the interest on the bonds is excluded from gross
income for federal tax purposes, subject to designated conditions,
the Treasurer may maintain separate accounts for the investment
of bond proceeds and for the investment earnings on those
proceeds. The Treasurer may use or direct the use of those proceeds
or earnings to pay any rebate, penalty, or other payment required
under federal law or take any other action with respect to the
investment and use of those bond proceeds required or desirable
under federal law to maintain the tax-exempt status of those bonds
and to obtain any other advantage under federal law on behalf of
the funds of this state.

101137.5.  

(a) For the purposes of carrying out this chapter,
the Director of Finance may authorize the withdrawal from the
General Fund of an amount not to exceed the amount of the unsold
bonds that have been authorized by the Higher Education Facilities
Finance Committee to be sold for the purpose of carrying out this
chapter. Any amounts withdrawn shall be deposited in the 2014
California Community College Capital Outlay Bond Fund
consistent with this chapter. Any money made available under this
section shall be returned to the General Fund, plus an amount equal
to the interest that the money would have earned in the Pooled
Money Investment Account, from proceeds received from the sale
of bonds for the purpose of carrying out this chapter.

(b) Any request forwarded to the Legislature and the Department
of Finance for funds from this bond issue for expenditure for the
purposes described in this chapter by the California Community
Colleges shall be accompanied by the five-year capital outlay plan
that reflects the needs and priorities of the community college
system and is prioritized on a statewide basis. Requests shall
include a schedule that prioritizes the seismic retrofitting needed
to significantly reduce, in the judgment of the particular college,
seismic hazards in buildings identified as high priority by the
college.

101138.  

All money deposited in the 2014 California
Community College Capital Outlay Bond Fund that is derived
from premium and accrued interest on bonds sold shall be reserved
in the fund, and shall be available for transfer to the General Fund
as a credit to expenditures for bond interest.

101139.  

The bonds may be refunded in accordance with Article
6 (commencing with Section 16780) of Chapter 4 of Part 3 of
Division 4 of Title 2 of the Government Code, which is a part of
the State General Obligation Bond Law. Approval by the voters
of the state for the issuance of the bonds described in this chapter
includes the approval of the issuance of any bonds issued to refund
any bonds originally issued under this chapter or any previously
issued refunding bonds.

101139.5.  

The Legislature hereby finds and declares that,
inasmuch as the proceeds from the sale of bonds authorized by
this chapter are not “proceeds of taxes” as that term is used in
Article XIII B of the California Constitution, the disbursement of
these proceeds is not subject to the limitations imposed by that
article.

 

Chapter  4. University Facilities

 

Article 1.  General

 

101140.  

(a) The system of public universities in this state
includes the University of California, the Hastings College of the
Law, and the California State University, and their respective
off-campus centers.

(b) The 2014 University Capital Outlay Bond Fund is hereby
established in the State Treasury for deposit of funds from the
proceeds of bonds issued and sold for the purposes of this chapter.

(c) The Higher Education Facilities Finance Committee
established pursuant to Section 67353 is hereby authorized to create
a debt or debts, liability or liabilities, of the State of California
pursuant to this chapter for the purpose of providing funds to aid
the University of California, the Hastings College of the Law, and
the California State University.

 

Article 2.  Program Provisions Applicable to the University of
California and the Hastings College of the Law

 

101141.  

(a) From the proceeds of bonds issued and sold
pursuant to Article 4 (commencing with Section 101150), the sum
of begin delete five hundred million dollars ($500,000,000) end delete begin insert ____ dollars
($____) end insert shall be deposited in the 2014 University Capital Outlay
Bond Fund for the purposes of this article. When appropriated,
these funds shall be available for expenditure for the purposes of
this article.

(b) The purposes of this article include assisting in meeting the
capital outlay financing needs of the University of California and
the Hastings College of the Law.

(c) Proceeds from the sale of bonds issued and sold for the
purposes of this article may be used to fund construction on
existing campuses, including the construction of buildings and the
acquisition of related fixtures, construction of facilities that may
be used by more than one segment of public higher education
(intersegmental), the renovation and reconstruction of facilities,
site acquisition, the equipping of new, renovated, or reconstructed
facilities, which equipment shall have an average useful life of 10
years; and to provide funds for the payment of preconstruction
costs, including, but not limited to, preliminary plans and working
drawings for facilities of the University of California and the
Hastings College of the Law.

 

Article 3.  Program Provisions Applicable to the California State
University

 

101142.  

(a) From the proceeds of bonds issued and sold
pursuant to Article 4 (commencing with Section 101150), the sum
of begin delete five hundred million dollars ($500,000,000) end delete begin insert ____ dollars
($____) end insert shall be deposited in the 2014 University Capital Outlay
Bond Fund for the purposes of this article. When appropriated,
these funds shall be available for expenditure for the purposes of
this article.

(b) The purposes of this article include assisting in meeting the
capital outlay financing needs of the California State University.

(c) Proceeds from the sale of bonds issued and sold for the
purposes of this article may be used to fund construction on
existing campuses, including the construction of buildings and the
acquisition of related fixtures, construction of facilities that may
be used by more than one segment of public higher education
(intersegmental), the renovation and reconstruction of facilities,
site acquisition, the equipping of new, renovated, or reconstructed
facilities, which equipment shall have an average useful life of 10
years; and to provide funds for the payment of preconstruction
costs, including, but not limited to, preliminary plans and working
drawings for facilities of the California State University.

 

Article 4.  University Fiscal Provisions

 

101150.  

(a) Of the total amount of bonds authorized to be
issued and sold pursuant to Chapter 1 (commencing with Section
101100), bonds in the amount of begin delete one billion dollars
($1,000,000,000), end delete begin insert ____ dollars ($_____), end insert not including the amount
of any refunding bonds issued in accordance with Section 101159,
or so much thereof as is necessary, may be issued and sold to
provide a fund to be used for carrying out the purposes expressed
in this chapter and to reimburse the General Obligation Bond
Expense Revolving Fund pursuant to Section 16724.5 of the
Government Code. The bonds, when sold, shall be and constitute
a valid and binding obligation of the State of California, and the
full faith and credit of the State of California is hereby pledged
for the punctual payment of the principal of, and interest on, the
bonds as the principal and interest become due and payable.

(b) It is the intent of the Legislature that the University of
California and the California State University annually consider,
as part of their annual capital outlay planning process, the inclusion
of facilities that may be used by more than one segment of public
higher education (intersegmental), and, that on or before May 15
of each year, those entities report their findings to the budget
committees of each house of the Legislature.

(c) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the Higher Education Facilities Finance Committee
established pursuant to Section 67353 at any different times
necessary to service expenditures required by the apportionments.

101151.  

(a) The bonds authorized by this chapter shall be
prepared, executed, issued, sold, paid, and redeemed as provided
in the State General Obligation Bond Law (Chapter 4 (commencing
with Section 16720) of Part 3 of Division 4 of Title 2 of the
Government Code), and all of the provisions of that law, except
Section 16727 of the Government Code to the extent that it
conflicts with this part, apply to the bonds and to this chapter and
are hereby incorporated into this chapter as though set forth in full
within this chapter.

(b) For the purposes of the State General Obligation Bond Law,
each state agency administering an appropriation of the 2014
University Capital Outlay Bond Fund is designated as the “board”
for projects funded pursuant to this chapter.

(c) The proceeds of the bonds issued and sold pursuant to this
chapter shall be available for the purpose of funding aid to the
University of California, the Hastings College of the Law, and the
California State University, for the construction on existing or new
campuses, and their respective off-campus centers and joint use
and intersegmental facilities, as set forth in this chapter.

101152.  

The Higher Education Facilities Finance Committee
established pursuant to Section 67353 shall authorize the issuance
of bonds under this chapter only to the extent necessary to fund
the apportionments for the purposes described in this chapter that
are expressly authorized by the Legislature in the annual Budget
Act. Pursuant to that legislative direction, the committee shall
determine whether or not it is necessary or desirable to issue bonds
authorized pursuant to this chapter in order to carry out the
purposes described in this chapter and, if so, the amount of bonds
to be issued and sold. Successive issues of bonds may be authorized
and sold to carry out those actions progressively, and it is not
necessary that all of the bonds authorized to be issued be sold at
any one time.

101153.  

There shall be collected each year and in the same
manner and at the same time as other state revenue is collected,
in addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year. It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act which is necessary to collect that additional sum.

101154.  

Notwithstanding Section 13340 of the Government
Code, there is hereby appropriated from the General Fund in the
State Treasury, for the purposes of this chapter, an amount that
will equal the total of the following:

(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this chapter, as the
principal and interest become due and payable.

(b) The sum necessary to carry out Section 101157, appropriated
without regard to fiscal years.

101155.  

The board, as defined in subdivision (b) of Section
101151, may request the Pooled Money Investment Board to make
a loan from the Pooled Money Investment Account or any other
approved form of interim financing, in accordance with Section
16312 of the Government Code, for the purpose of carrying out
this chapter. The amount of the request shall not exceed the amount
of the unsold bonds that the committee, by resolution, has
authorized to be sold for the purpose of carrying out this chapter.
The board, as defined in subdivision (b) of Section 101151, shall
execute any documents required by the Pooled Money Investment
Board to obtain and repay the loan. Any amounts loaned shall be
deposited in the fund to be allocated by the board in accordance
with this chapter.

101156.  

Notwithstanding any other provision of this chapter,
or of the State General Obligation Bond Law, if the Treasurer sells
bonds pursuant to this chapter that include a bond counsel opinion
to the effect that the interest on the bonds is excluded from gross
income for federal tax purposes, subject to designated conditions,
the Treasurer may maintain separate accounts for the investment
of bond proceeds and for the investment earnings on those
proceeds. The Treasurer may use or direct the use of those proceeds
or earnings to pay any rebate, penalty, or other payment required
under federal law or take any other action with respect to the
investment and use of those bond proceeds required or desirable
under federal law to maintain the tax-exempt status of those bonds
and to obtain any other advantage under federal law on behalf of
the funds of this state.

101157.  

(a) For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds
that have been authorized by the Higher Education Facilities
Finance Committee to be sold for the purpose of carrying out this
chapter. Any amounts withdrawn shall be deposited in the 2014
University Capital Outlay Bond Fund consistent with this chapter.
Any money made available under this section shall be returned to
the General Fund, plus an amount equal to the interest that the
money would have earned in the Pooled Money Investment
Account, from proceeds received from the sale of bonds for the
purpose of carrying out this chapter.

(b) Any request forwarded to the Legislature and the Department
of Finance for funds from this bond issue for expenditure for the
purposes described in this chapter by the University of California,
the Hastings College of the Law, or the California State University
shall be accompanied by the five-year capital outlay plan. Requests
forwarded by a university or college shall include a schedule that
prioritizes the seismic retrofitting needed to significantly reduce,
in the judgment of the particular university or college, seismic
hazards in buildings identified as high priority by the university
or college.

101158.  

All money deposited in the 2014 University Capital
Outlay Bond Fund that is derived from premium and accrued
interest on bonds sold shall be reserved in the fund, and shall be
available for transfer to the General Fund as a credit to expenditures
for bond interest.

101159.  

The bonds may be refunded in accordance with Article
6 (commencing with Section 16780) of Chapter 4 of Part 3 of
Division 4 of Title 2 of the Government Code, which is a part of
the State General Obligation Bond Law. Approval by the voters
of the state for the issuance of the bonds described in this chapter
includes the approval of the issuance of any bonds issued to refund
any bonds originally issued under this chapter or any previously
issued refunding bonds.

101160.  

The Legislature hereby finds and declares that,
inasmuch as the proceeds from the sale of bonds authorized by
this chapter are not “proceeds of taxes” as that term is used in
Article XIII B of the California Constitution, the disbursement of
these proceeds is not subject to the limitations imposed by that
article.

SEC. 11.  

The Secretary of State shall submit Section 10 of this
act to the voters at the November 4, 2014, statewide general
election.

SEC. 12.  

The provisions of this act are severable. If any
provision of this act or its application is held invalid, that invalidity
shall not affect other provisions or applications that can be given
effect without the invalid provision or application.

SEC. 13.  

Sections 1 to 10, inclusive, of this act shall become
operative only if the voters approve the Kindergarten-University
Public Education Facilities Bond Act of 2014, as set forth in
Section 10 of this act.

SEC. 14.  

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

In order to ensure, at the earliest possible time, that the electorate
is provided with the opportunity to vote on the financing of
necessary educational facilities at the November 4, 2014, statewide
general election, including related statutory changes, it is necessary
that this act take effect immediately.