BILL NUMBER: SB 855 CHAPTERED
BILL TEXT
CHAPTER 352
FILED WITH SECRETARY OF STATE OCTOBER 8, 2007
APPROVED BY GOVERNOR OCTOBER 8, 2007
PASSED THE SENATE SEPTEMBER 4, 2007
PASSED THE ASSEMBLY AUGUST 30, 2007
AMENDED IN ASSEMBLY JUNE 25, 2007
AMENDED IN SENATE APRIL 9, 2007
INTRODUCED BY Senator Ridley-Thomas
FEBRUARY 23, 2007
An act to amend Sections 90011, 90012, 90013, 90014, 90016, 90027,
90040, 90047, and 90073 of the Education Code, relating to the
California State University.
LEGISLATIVE COUNSEL'S DIGEST
SB 855, Ridley-Thomas. California State University: State
University Revenue Bond Act of 1947.
(1) Existing law establishes the California State University and
its various campuses under the administration of the Trustees of the
California State University. The existing State University Revenue
Bond Act of 1947 authorizes the trustees, among other things, to
utilize the proceeds of various fees, rents, or other charges,
including fees relating to the construction of student body centers,
parking and other transportation facilities, and student health
facilities, and fees charged for extension programs and other
self-supporting instructional programs, as a revenue source to repay
bonds issued by the trustees to fund the construction of these
facilities. The proceeds of these fees, rents, and other charges are
continuously appropriated to the trustees for their respective
purposes.
This bill would amend the definitions of "bonds" and "revenue
bonds" under the act to include commercial paper notes issued by the
trustees.
The bill would authorize the trustees to loan or advance proceeds
of revenue bonds or revenue bond anticipation notes to any person or
state or local governmental entity, and to enter into loan
agreements, leases, installment purchase agreements, conditional
sales contracts, and similar financing instruments with the recipient
of the loan or advance.
(2) Existing law requires the trustees to determine the interest
rate, and to pay the interest, on an annual or semiannual basis, on
revenue bond anticipation notes and revenue bonds issued under the
act.
The bill would authorize the trustees to set the interest at a
fixed or variable rate on revenue bond anticipation notes in the
time, form, and manner set forth in the indenture for the notes,
rather than annually or semiannually.
(3) Existing law authorizes the trustees to fix, prescribe, and
collect rates, rentals, or other charges in connection with the
services and facilities furnished from a project acquired,
constructed, or purchased from part or all of the proceeds of the
bonds issued under the act, sufficient to pay the principal of and
interest on the bonds as they become due.
The bill would authorize the trustees to also use revenues
securing bonds for this purpose.
(4) This bill would require the trustees to report to the Director
of Finance, the Legislative Analyst, and to the chairpersons of the
appropriate policy and fiscal committees of the Legislature on the
specific actions taken to implement this bill and an assessment of
the costs and benefits of those actions. The bill would request the
Legislative Analyst to review and comment on this report as part of
its annual analysis of the Budget Bill.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 90011 of the Education Code is amended to read:
90011. (a) The following terms wherever used or referred to in
this article, or in any indenture entered into pursuant to this
article, shall have the following meanings, respectively, unless a
different meaning appears from the context:
(1) "Board" means the Trustees of the California State University.
(2) "Bonds" or "revenue bonds" means the written evidence of any
obligation, other than revenue bond anticipation notes, issued by the
board, payment of which is secured by a pledge of revenues or any
part of revenues, as provided in this article, in order to obtain
funds with which to carry out the purposes of this article,
irrespective of the form of the obligations.
(3) The "holder of bonds" or "bondholder" or any similar term
means any person who shall be the bearer of any outstanding revenue
bond or bond registered to bearer or not registered or the registered
owner of any outstanding revenue bond or bond that shall at the time
be registered other than to the bearer.
(4) "Indenture" means an agreement entered into by the board
pursuant to which revenue bonds are issued, regardless of whether the
agreement is expressed in the form of a resolution of the board or
by other instrument.
(5) "Notes" and "revenue bond anticipation notes" mean the written
evidence of any obligation, including commercial paper notes, issued
by the board, pursuant to Section 90013, in anticipation of the sale
of revenue bonds, for the purpose of obtaining funds to carry out
the purposes of this article.
(6) "Person" includes any individual, firm, corporation,
association, copartnership, trust, business trust, receiver, trustee,
or conservator for any thereof, but does not include this state or
any public corporation, political subdivision, city, county,
district, or any agency thereof or of this state.
(7) "Project" means any one or more dormitories or other housing
facilities, boarding facilities, student union or activity
facilities, vehicle parking facilities, alternative transportation
programs, or any other auxiliary or supplementary facilities for
individual or group accommodation, owned or operated or authorized to
be acquired, constructed, furnished, equipped, and operated by the
board for use by students, faculty members, or other employees of any
one or more campuses of the California State University, or a
combination of those facilities, which may include facilities already
completed and facilities authorized for future completion, or any
other facilities designated by the board as a project in providing
for the issuance of revenue bonds or notes.
(8) "Revenues" mean and include any and all fees, rates, rentals,
and other charges received or receivable in connection with, and any
and all other incomes and receipts of whatever kind and character
derived by, the board from the operation of, or arising from, a
project, including any revenue that may have been, or may be,
impounded or deposited in any fund in the State Treasury created by
this article or in any other fund or account pursuant to law for the
security of any notes or bonds issued hereunder, or for the purpose
of providing for the payment thereof, or the interest thereon.
(9) "State university" and "campus of the California State
University" means any of the institutions included within the
California State University, as listed in Section 89001.
(b) As used in this article:
(1) The present tense includes the past and future tenses, and the
future tense includes the present tense.
(2) The masculine gender includes the feminine and neuter.
(3) The singular number includes the plural, and the plural
includes the singular.
(4) "Shall" is mandatory, and "may" is permissive.
SEC. 2. Section 90012 of the Education Code is amended to read:
90012. The board, for the purposes of this article, has power and
is hereby authorized, in addition to and amplification of all other
powers conferred upon the board by the Constitution of the State of
California or by any statute of the State of California:
(a) To acquire, subject to the Property Acquisition Law (Part 11
(commencing with Section 15850) of Division 3 of Title 2 of the
Government Code), by grant, purchase, gift, devise, or lease, and to
hold and use, any real or personal property necessary, convenient, or
useful for the carrying on of any of its powers pursuant to this
article.
(b) To construct, operate, and control any project.
(c) To fix rates, rents, or other charges for the use of any
project acquired, constructed, equipped, furnished, operated or
maintained by the board, or for services rendered in connection
therewith, and to alter, change, or modify the same at its pleasure,
subject to any contractual obligation that may be entered into by the
board with respect to the fixing of rates, rents, or charges.
(d) To enter into covenants to increase rates or charges from time
to time as may be necessary pursuant to any contract or agreement
with the holders of any bonds of the board.
(e) At any time and from time to time, to issue revenue bonds in
order to raise funds for the purpose of establishing any project or
of acquiring lands for any project, or of acquiring, constructing,
improving, equipping, furnishing, financing, or refinancing any
project, including payment of principal and interest on revenue bond
anticipation notes, or for any combination of these purposes, which
bonds may be secured as provided in this article.
(f) At any time, and from time to time, in connection with the
financing or refinancing of any project, to loan or advance proceeds
of revenue bonds or revenue bond anticipation notes to any person or
state or local governmental entity, and to enter into loan
agreements, leases, installation purchase agreements, conditional
sales contracts, and similar financing instruments with the recipient
of that loan or advance, all upon terms and conditions determined by
the board.
(g) At any time and from time to time, to issue revenue bond
anticipation notes pursuant to Section 90013.
(h) To adopt rules and regulations as may be necessary to enable
the board to exercise the powers and to perform the duties conferred
or imposed upon the board by this article.
(i) Nothing contained in this section or elsewhere in this article
shall be construed directly or by implication to be in derogation of
or in limitation of powers conferred upon or existing in the board
by the Constitution or statutes of this state.
SEC. 3. Section 90013 of the Education Code is amended to read:
90013. (a) The board may issue revenue bond anticipation notes,
in anticipation of the sale of revenue bonds. Before issuing any of
these notes, the board shall, by resolution, authorize their
issuance, declare the purpose for which the proceeds of the notes
shall be expended, and specify the maximum amount of notes to be
issued for that purpose.
(b) Revenue bond anticipation notes shall bear interest at the
fixed or variable rate or rates determined by the board, not
exceeding 12 percent per annum, payable in the time, form, and manner
set forth in the indenture for the notes, and shall mature on the
date or dates determined by the board and set forth in the resolution
or indenture authorizing their issuance.
(c) The proceeds from the sale of notes shall be used only for the
purposes for which the proceeds of the sale of bonds may be used in
anticipation whereof the notes are issued.
(d) All notes issued, including renewal notes, and the interest
thereon shall be payable from the proceeds of the sale of the bonds,
the revenues of the project, any appropriations made for that purpose
or all of these sources, and not otherwise, except that if the sale
of the bonds has not occurred prior to the maturity of the notes
issued in anticipation thereof, the board may issue renewal notes to
pay the notes then maturing. No renewal notes shall be issued after
the sale of the bonds in anticipation of which the original note was
issued.
(e) Revenue bond anticipation notes may be secured by a pledge of,
and lien upon, the proceeds of the sale of bonds, the revenues of
the project, and any other legally available funds.
(f) A resolution or indenture authorizing the issuance of revenue
bond anticipation notes may include provisions deemed necessary or
advisable by the board for the security of the notes issued
thereunder, and may include any and all provisions authorized to be
included in indentures by this article.
SEC. 4. Section 90014 of the Education Code is amended to read:
90014. Notes authorized to be issued under this article shall be
sold by the Treasurer, for cash, in the manner that the Treasurer
shall be directed by a resolution requesting the sale adopted by the
board. Notes in the form of commercial paper notes shall be sold in
the manner specified in the indenture for the notes.
SEC. 5. Section 90016 of the Education Code is amended to read:
90016. The board shall issue revenue bonds and revenue bond
anticipation notes in its name and as its obligation, but no bond or
note issued or sold pursuant to this article shall be or become a
lien, charge, or liability against the State of California or against
the board or against the property or funds of either, except, in the
case of revenue bonds, to the extent of the pledge of revenues or
part of revenues of the project, as may be provided by the indenture
pursuant to which revenue bonds are issued, and, in the case of
notes, to the extent of the pledge of revenues of the project and
proceeds of the sale of bonds, as may be provided in the resolution
or indenture authorizing the issuance of the notes. Each of these
bonds and notes issued by the board shall contain a recital on the
face thereof, stating that neither the payment of the principal nor
any part thereof, nor any interest thereon, constitutes a debt,
liability, or obligation of the State of California.
SEC. 6. Section 90027 of the Education Code is amended to read:
90027. An indenture may include a clause relating to the bonds
issued thereunder requiring the board to fix, prescribe, and collect
rates, rentals, or other charges in connection with the services and
facilities furnished from the project acquired, constructed, or
purchased from part or all of the proceeds of the bonds, or from the
revenues securing the bonds, sufficient to pay the principal of and
interest on the bonds as they become due and payable, together with
additional sums that may be required for any fund created by this
article, for the further security of the bonds or as a depreciation
charge or other charge in connection with the project.
SEC. 7. Section 90040 of the Education Code is amended to read:
90040. Bonds shall bear interest at a fixed or variable rate of
not to exceed 12 percent per annum, payable in the time, form, and
manner set forth in the indenture for the bonds.
SEC. 8. Section 90047 of the Education Code is amended to read:
90047. When the bonds authorized to be issued under this article
are duly executed, they shall be sold by the Treasurer, for cash, in
those parcels and numbers as the Treasurer shall be directed by a
resolution adopted by the board. Before offering any of the bonds for
sale, the Treasurer shall detach therefrom all coupons, if any, that
have matured or will mature before the day fixed for the sale. Bonds
in the form of commercial paper notes shall be sold in the manner
specified in the indenture for the bonds.
SEC. 9. Section 90073 of the Education Code is amended to read:
90073. The proceeds from the sale of all bonds and notes
authorized under this article, except those proceeds used to redeem
outstanding bonds or notes, shall be deposited forthwith by the
Treasurer, on order of the Controller, in the State Treasury to the
credit of a fund to be designated as the California State University
Dormitory Construction Fund, which is hereby created. The money in
the California State University Dormitory Construction Fund shall be
expended, pursuant to claims filed by the board with the Controller,
for the purposes authorized by this article, or as provided in the
indenture or notes, and for any other purposes, subject to the
restrictions provided by law, by the notes, or by the indenture, as
may be authorized by resolution of the board. In carrying out these
purposes, the money may be used to make loans to builders and
developers for the establishment, acquisition, or construction of
projects, to acquire leasehold interests in projects, or otherwise to
provide funds for projects in any manner that the board may
authorize by resolution. Moneys required to meet the costs of
acquisition, construction, improvement, equipment, furnishing,
financing, or refinancing of any project authorized by this article,
and all costs incident thereto, shall be paid from the California
State University Dormitory Construction Fund as provided in this
article upon claim filed by the board and after audit by the
Controller in the manner provided by law and upon warrants drawn by
the Controller.
SEC. 10. On or before January 1, 2012, the Trustees of the
California State University shall report to the Director of Finance,
the Legislative Analyst, and to the chairpersons of the appropriate
policy and fiscal committees of the Legislature on the specific
actions taken to implement the act that adds this section and an
assessment of the costs and benefits of those actions. The
Legislative Analyst is requested to review and comment on this report
as part of its annual analysis of the Budget Bill.