Amended in Assembly June 12, 2014

Senate Bill No. 869

Introduced by Committee on Budget and Fiscal Review

January 9, 2014

begin delete An act relating to the Budget Act of 2014. end delete begin insert An act to amend Section 101012 of, to add Sections 17070.965 and 17078.73 to, and to add and repeal Section 17070.53 of, the Education Code, relating to school facilities, and declaring the urgency thereof, to take effect immediately. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 869, as amended, Committee on Budget and Fiscal Review. begin delete Budget Act of 2014. end delete begin insert School facilities: construction: bond act. end insert

begin insert

(1) The Kindergarten-University Public Education Facilities Bond Act of 2006 (bond act), approved by the voters at the November 7, 2006, statewide general election, among other things, authorizes the issuance and sale of state general obligation bonds, and requires the proceeds to be allocated for specified purposes, including construction and modernization of elementary and secondary school facilities. Existing law states that the Legislature is authorized to adjust the funding amounts set aside for specific purposes related to elementary and secondary school facilities by a statute passed in each house of the Legislature by a 2⁄3 vote if the statute is consistent with, and furthers the purposes of, provisions of the bond act. The bond act, among other things, provides for the allocation of $100,000,000 for incentive grants to promote the use of designs and materials in new construction and modernization projects that include attributes of high-performance schools, as specified.

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This bill would prohibit the State Allocation Board from approving funding for the incentive grants specified above on and after January 1, 2015, and would provide for the reallocation of the amounts not yet approved by the board for other specified purposes, including new construction and modernization of school facilities, and seismic repair, reconstruction, or replacement, as specified.

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(2) Existing law establishes the Career Technical Education Facilities Program to provide funding for qualified local educational agencies for purposes of constructing new facilities or reconfiguring existing facilities for career technical education, as specified. The bond act provides for the allocation of $500,000,000 for purposes of the Career Technical Education Facilities Program.

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This bill would prohibit the State Allocation Board from approving an allocation for any projects pursuant to the Career Technical Education Facilities Program on and after January 1, 2015, and would provide for the allocation of the amounts not yet approved by the board by that date for other specified purposes, including new construction and modernization of school facilities and seismic repair, reconstruction, or replacement, as specified.

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(3) The bill would require the Office of Public School Construction to report to the State Allocation Board and the Legislature by March 1, 2015, on efforts to streamline and speed up the award of seismic mitigation funds.

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(4) The bill includes a legislative finding and declaration that this act is consistent with, and furthers the purposes of, provisions of the bond act related to elementary and secondary school facilities.

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

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This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2014.

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Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

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begin insert SECTION 1. end insert   

end insert

begin insert Section 17070.53 is added to the end insert begin insert Education Code end insert begin insert ,
to read: end insert

begin insert

begin insert 17070.53. end insert   

(a) The Office of Public School Construction shall
report to the board and the Legislature by March 1, 2015, on
efforts to streamline and speed up the award of seismic mitigation
funds.

(b) The report required to be submitted to the Legislature shall
be submitted in accordance with Section 9795 of the Government
Code.

(c)  This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2016, deletes or extends that
date.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 17070.965 is added to the end insert begin insert Education Code end insert begin insert , end insert immediately following Section 17070.96 begin insert , to read: end insert

begin insert

begin insert 17070.965. end insert   

On or after January 1, 2015, the board shall not
approve funding for incentive grants to promote the use of designs
and materials in new construction and modernization projects that
include the attributes of high-performance schools, including, but
not limited to, the elements set forth in Section 17070.96.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 17078.73 is added to the end insert begin insert Education Code end insert begin insert , to
read: end insert

begin insert

begin insert 17078.73. end insert   

On or after January 1, 2015, the board shall not
approve any projects pursuant to this article.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 101012 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

101012.  

(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 one billion nine hundred million dollars
($1,900,000,000) for new construction of school facilities of
applicant school districts under Chapter 12.5 (commencing with
Section 17070.10) of Part 10. Of the amount allocated under this
paragraph, up to 10.5 percent shall be available for purposes of
seismic repair, reconstruction, or replacement, pursuant to Section
17075.10.

(2) The amount of five hundred million dollars ($500,000,000)
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.

(3) The amount of three billion three hundred million dollars
($3,300,000,000) for the modernization of school facilities pursuant
to Chapter 12.5 (commencing with Section 17070.10) of Part 10.

(4)  begin insert (A) end insert begin insert   end insert The amount of five hundred million dollars
($500,000,000) for the purposes set forth in Article 13
(commencing with Section 17078.70) of Chapter 12.5 of Part 10,
relating to facilities for career technical education programs.

begin insert

(B) Of the amount not yet approved for allocation by the State
Allocation Board pursuant to this paragraph by January 1, 2015,
50 percent shall be available for the purpose of paragraph (1),
and 50 percent shall be available for purposes of paragraph (3).
If an apportionment or State Allocation Board approval pursuant
to this paragraph is rescinded after January 1, 2015, the rescinded
amount shall be available for the purposes of paragraphs (1) and
(3). The State Allocation Board shall determine the percentage of
the rescinded amount to be used for purposes of paragraph (1)
and the percentage of the rescinded amount to be used for purposes
of paragraph (3).

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(5) Of the amounts allocated under paragraphs (1) and (3), up
to two hundred million dollars ($200,000,000) for the purposes
set forth in Chapter 894 of the Statutes of 2004, relating to
incentives for the creation of smaller learning communities and
small high schools.

(6) The amount of twenty-nine million dollars ($29,000,000)
for the purposes set forth in Article 10.6 (commencing with Section
17077.40) of Chapter 12.5 of Part begin delete 10, end delete begin insert 10 of Division 1 of Title 1, end insert
relating to joint use projects.

(7) The amount of one billion dollars ($1,000,000,000) shall be
available for providing new construction funding to severely
overcrowded schoolsites pursuant to Article 14 (commencing with
Section 17079) of Chapter 12.5 of Part begin delete 10. end delete begin insert 10 of Division 1 of Title
1. end insert

(8)  begin insert (A) end insert begin insert   end insert The amount of one hundred million dollars
($100,000,000) for incentive grants to promote the use of designs
and materials in new construction and modernization projects that
include the attributes of high-performance schools, including, but
not limited to, the elements set forth in Section 17070.96, pursuant
to regulations adopted by the State Allocation Board.

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(B) Of the amount not yet approved for allocation by the State
Allocation Board pursuant to this paragraph by January 1, 2015,
50 percent shall be available for purposes of paragraph (1), and
50 percent shall be available for purposes of paragraph (3). If an
apportionment or State Allocation Board approval pursuant to
this paragraph is rescinded on or after January 1, 2015, the
rescinded amount shall be available for purposes of paragraphs
(1) and (3). The State Allocation Board shall determine the
percentage of the rescinded amount to be used for purposes of
paragraph (1) and the percentage of the rescinded amount to be
used for purposes of paragraph (3).

end insert

(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 begin delete 10: end delete begin insert 10 of Division 1 of Title 1: end insert

(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 begin delete 10. end delete begin insert 10 of
Division 1 of Title 1. end insert

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

(d) (1) The Legislature may amend this section to adjust the
funding amounts specified in paragraphs (1) to (8), inclusive, of
subdivision (a), only by either of the following methods:

(A) By a statute, passed in each house of the Legislature by
rollcall vote entered in the respective journals, by not less than
two-thirds of the membership in each house concurring, if the
statute is consistent with, and furthers the purposes of, this chapter.

(B) By a statute that becomes effective only when approved by
the voters.

(2) Amendments pursuant to this subdivision may adjust the
amounts to be expended pursuant to paragraphs (1) to (8), inclusive,
of subdivision (a), but may not increase or decrease the total
amount to be expended pursuant to that subdivision.

(e) Funds available pursuant to this section may be used for
acquisition of school facilities authorized pursuant to Section
17280.5.

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begin insert SEC. 5. end insert   

end insert begin insert

The Legislature finds and declares that this act is
consistent with, and furthers the purposes of, Chapter 2
(commencing with Section 101010) of Part 69 of Division 14 of
Title 3 of the Education Code.

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begin insert

begin insert SEC. 6. end insert   

end insert begin insert

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:

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In order for school districts to access bond authority for
necessary school facility construction, it is necessary for this act
to take effect immediately.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact statutory
changes relating to the Budget Act of 2014.

end delete