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 districtsbegin delete,end delete 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 authorizebegin delete an unspecified amountend deletebegin insert $9,000,000,000end insert of state general obligation bondsbegin insert, as scheduled,end insert 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 establishbegin insert,
thereby making an appropriationend insert.
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 17070.40 of the Education Code is
2amended to read:
(a) (1) A fund is hereby established in the State
4Treasury to be known as the 1998 State School Facilities Fund.
5All money in the fund, including any money deposited in that fund
6from any source whatsoever, and notwithstanding Section 13340
7of the Government Code, is hereby continuously appropriated
8without regard to fiscal years for expenditure pursuant to this
9chapter.
10(2) The board may apportion funds to school districts for the
11purposes of this chapter from funds transferred to the 1998 State
12School Facilities Fund from any source.
13(3) The board may make
apportionments in amounts not
14exceeding those funds on deposit in the 1998 State School Facilities
15Fund, and any amount of bonds authorized by the committee, but
16not yet sold by the Treasurer.
17(4) The board may make disbursements pursuant to any
18apportionment made from any funds in the 1998 State School
19Facilities Fund, irrespective of whether there exists at the time of
20the disbursement an amount in the 1998 State School Facilities
21Fund sufficient to permit payment in full of all apportionments
22previously made. However, no disbursement shall be made from
23any funds required by law to be transferred to the General Fund.
24(b) (1) A fund is hereby established in the State Treasury to be
25known as the 2002 State School Facilities Fund. All money in the
26fund,
including any money deposited in that fund from any source
27whatsoever, and notwithstanding Section 13340 of the Government
28Code, is hereby continuously appropriated without regard to fiscal
29
years for expenditure pursuant to this chapter.
30(2) The board may apportion funds to school districts for the
31purposes of this chapter from funds transferred to the 2002 State
32School Facilities Fund from any source.
33(3) The board may make apportionments in amounts not
34exceeding those funds on deposit in the 2002 State School Facilities
35Fund, and any amount of bonds authorized by the committee, but
36not yet sold by the Treasurer.
37(4) The board may make disbursements pursuant to any
38apportionment made from any funds in the 2002 State School
P4 1Facilities Fund, irrespective of whether there exists at the time of
2the disbursement an amount in the 2002 State School Facilities
3Fund sufficient to permit payment in
full of all apportionments
4previously made. However, no disbursement shall be made from
5any funds required by law to be transferred to the General Fund.
6(c) (1) A fund is hereby established in the State Treasury to be
7known as the 2004 State School Facilities Fund. All money in the
8fund, including any money deposited in that fund from any source
9whatsoever, and notwithstanding Section 13340 of the Government
10Code, is hereby continuously appropriated without regard to fiscal
11years for expenditure pursuant to this chapter.
12(2) The board may apportion funds to school districts for the
13purposes of this chapter from funds transferred to the 2004 State
14School Facilities Fund from any source.
15(3) The board may
make apportionments in amounts not
16exceeding those funds on deposit in the 2004 State School Facilities
17Fund, and any amount of bonds authorized by the committee, but
18not yet sold by the Treasurer.
19(4) The board may make disbursements pursuant to any
20apportionment made from any funds in the 2004 State School
21Facilities Fund, irrespective of whether there exists at the time of
22the disbursement an amount in the 2004 State School Facilities
23Fund sufficient to permit payment in full of all apportionments
24previously made. However, no disbursement shall be made from
25any funds required by law to be transferred to the General Fund.
26(d) (1) A fund is hereby established in the State Treasury, to
27be known as the 2006 State School Facilities Fund. All money in
28the
fund, including any money deposited in that fund from any
29source whatsoever, and notwithstanding Section 13340 of the
30Government Code, is hereby continuously appropriated without
31regard to fiscal years for expenditure pursuant to this chapter.
32(2) The board may apportion funds to school districts for the
33purposes of this chapter from funds transferred to the 2006 State
34School Facilities Fund from any source.
35(3) The board may make apportionments in amounts not
36exceeding those funds on deposit in the 2006 State School Facilities
37Fund, and any amount of bonds authorized by the committee, but
38not yet sold by the Treasurer.
39(4) The board may make disbursements pursuant to any
40apportionment made from any funds in the 2006 State
School
P5 1Facilities Fund, irrespective of whether there exists at the time of
2the disbursement an amount in the 2006 State School Facilities
3Fund sufficient to permit payment in full of all apportionments
4previously made. However, no disbursement shall be made from
5any funds required by law to be transferred to the General Fund.
6(e) (1) A fund is hereby established in the State Treasury, to
7be known as the 2014 State School Facilities Fund. All money in
8the fund, including any money deposited in that fund from any
9source whatsoever, and notwithstanding Section 13340 of the
10Government Code, is hereby continuously appropriated without
11regard to fiscal years for expenditure pursuant to this chapter.
12(2) The board may apportion funds to school districts for the
13purposes
of this chapter from funds transferred to the 2014 State
14School Facilities Fund from any source.
15(3) The board may make apportionments in amounts not
16exceeding those funds on deposit in the 2014 State School Facilities
17Fund, and any amount of bonds authorized by the committee, but
18not yet sold by the Treasurer.
19(4) The board may make disbursements pursuant to any
20apportionment made from any funds in the 2014 State School
21Facilities Fund, irrespective of whether there exists at the time of
22the disbursement an amount in the 2014 State School Facilities
23Fund sufficient to permit payment in full of all apportionments
24previously made. However, no disbursement shall be made from
25any funds required by law to be transferred to the General Fund.
Section 17070.99 of the Education Code is repealed.
Section 17071.15 is added to the Education Code, to
28read:
Notwithstanding Section 17071.10, the board may
30require each school district that elects to participate in the new
31construction program funded by the proceeds of any bond approved
32by voters after November 1, 2014, to reestablish eligibility pursuant
33to regulations adopted by the board.
Section 17071.33 of the Education Code is repealed.
Section 17071.35 of the Education Code is repealed.
Section 17071.40 of the Education Code is repealed.
Section 17072.40 is added to the Education Code, to
38read:
The Office of Public School Construction, in
40consultation with thebegin delete department,end deletebegin insert State Department of Education,end insert
P6 1 shall recommend to the board regulations that will provide school
2districts with flexibility in designing instructional facilities.
Section 17073.16 is added to the Education Code, to
4read:
The board may require each school district that elects
6to participate in the modernization program funded by the proceeds
7of any bond approved by voters after November 1, 2014, to
8reestablish baseline eligibility for each schoolsite pursuant to
9regulations adopted by the board.
Section 17074.26 of the Education Code is amended
11to read:
The board shall adopt regulations to adjust the
13per-pupil amounts set forth in Section 17074.10 for modernization
14projects for school buildings that are 50 years old or older based
15upon the higher costs associated with modernizing older buildings.
Part 70 (commencing with Section 101100) is added
17to Division 14 of Title 3 of the Education Code, to read:
18
21
This part shall be known and may be cited as the
25Kindergarten-University Public Education Facilities Bond Act of
262014.
The incorporation of, or reference to, any provision
28of California statutory law in this part includes all acts amendatory
29thereof and supplementary thereto.
(a) Bonds in the total amount ofbegin delete ____ dollars ($____),end delete
31begin insert nine billion dollars ($9,000,000,000),end insert not including the amount
32of any refunding bonds issued in accordance with Sections 101130,
33101139, and 101159, or so much thereof as is necessary, may be
34issued and sold to provide a fund to be used for carrying out the
35purposes expressed in this part and to reimburse the General
36Obligation Bond Expense Revolving Fund pursuant to Section
3716724.5 of the Government Code. The bonds, when sold, shall be
38and constitute a valid and binding obligation of the State of
39California, and the full
faith and credit of the State of California
40is hereby pledged for the punctual payment of the principal of, and
P7 1interest on, the bonds as the principal and interest become due and
2payable.
3(b) Pursuant to this section, the Treasurer shall sell the bonds
4authorized by the State School Building Finance Committee
5established by Section 15909 or the Higher Education Facilities
6Finance Committee established pursuant to Section 67353, as the
7case may be, at any different times necessary to service
8expenditures required by the apportionments.
9
11
The proceeds of bonds issued and sold pursuant to
16Article 2 (commencing with Section 101120) shall be deposited
17in the 2014 State School Facilities Fund established in the State
18Treasury under subdivision (e) of Section 17070.40begin insert,end insert and shall be
19allocated by the State Allocation Board pursuant to this chapter.
All moneys deposited in the 2014 State School
21Facilities Fund for the purposes of this chapter shall be available
22to provide aid to school districts, county superintendents of schools,
23and county boards of education of the state in accordance with the
24Leroy F. Greene School Facilities Act of 1998 (Chapter 12.5
25(commencing with Section 17070.10) of Part 10 of Division 1 of
26Title 1), as set forth in Section 101112, to provide funds to repay
27any money advanced or loaned to the 2014 State School Facilities
28Fund under any act of the Legislature, together with interest
29provided for in that act, and to reimburse the General Obligation
30Bond Expense Revolving Fund pursuant to Section 16724.5 of the
31Government Code.
(a) The proceeds from the sale of bonds, issued and
33sold for the purposes of this chapter, shall be allocated in
34accordance with the following schedule:
35(1) The amount ofbegin delete ____ dollars ($____)end deletebegin insert two billion two hundred
36fifty million dollars ($2,250,000,000)end insert for new construction of
37school facilities of applicant school districts under Chapter 12.5
38(commencing with Section 17070.10) of Part 10 of Division 1 of
39Title 1.
P8 1(2) The amount ofbegin delete ____ dollars ($____)end deletebegin insert
five hundred million
2dollars ($500,000,000)end insert shall be available for providing school
3facilities to charter schools pursuant to Article 12 (commencing
4with Section 17078.52) of Chapter 12.5 of Part 10 of Division 1
5of Title 1.
6(3) The amount ofbegin delete ____ dollars ($____)end deletebegin insert three billion two
7hundred fifty million dollars ($3,250,000,000)end insert for the
8modernization of school facilities pursuant to Chapter 12.5
9(commencing with Section 17070.10) of Part 10 of Division 1 of
10Title 1.
11(b) School districts may use funds allocated pursuant to
12paragraph (3) of subdivision (a) only for one or more of the
13following
purposes in accordance with Chapter 12.5 (commencing
14with Section 17070.10) of Part 10 of Division 1 of Title 1:
15(1) The purchase and installation of air-conditioning equipment
16and insulation materials, and related costs.
17(2) Construction projects or the purchase of furniture or
18equipment designed to increase school security or playground
19safety.
20(3) The identification, assessment, or abatement in school
21facilities of hazardous asbestos.
22(4) Project funding for high-priority roof replacement projects.
23(5) Any other modernization of facilities pursuant to Chapter
2412.5 (commencing with Section 17070.10) of
Part 10 of Division
251 of Title 1.
26(c) Funds allocated pursuant to paragraph (1) of subdivision (a)
27may also be utilized to provide new construction grants for eligible
28applicant county boards of education under Chapter 12.5
29(commencing with Section 17070.10) of Part 10 of Division 1 of
30Title 1 for funding classrooms for severely handicapped pupils,
31or for funding classrooms for county community school pupils.
32
(a) Of the total amount of bonds authorized to be
37issued and sold pursuant to Chapter 1 (commencing with Section
38101000), bonds in the amount ofbegin delete ____ dollars ($____)end deletebegin insert six billion
39dollars ($6,000,000,000),end insert not including the amount of any
40refunding bonds issued in accordance with Section 101130, or so
P9 1much thereof as is necessary, may be issued and sold to provide
2a fund to be used for carrying out the purposes expressed in this
3chapter and to reimburse the General Obligation Bond Expense
4Revolving Fund pursuant to Section 16724.5 of the Government
5Code. The bonds, when sold, shall
be and constitute a valid and
6binding obligation of the State of California, and the full faith and
7credit of the State of California is hereby pledged for the punctual
8payment of the principal of, and interest on, the bonds as the
9principal and interest become due and payable.
10(b) Pursuant to this section, the Treasurer shall sell the bonds
11authorized by the State School Building Finance Committee
12established pursuant to Section 15909 at any different times
13necessary to service expenditures required by the apportionments.
The State School Building Finance Committee,
15established by Section 15909 and composed of the Governor, the
16Controller, the Treasurer, the Director of Finance, and the
17Superintendent, or their designated representatives, all of whom
18shall serve thereon without compensation, and a majority of whom
19shall constitute a quorum, is continued in existence for the purpose
20of this chapter. The Treasurer shall serve as chairperson of the
21committee. Two Members of the Senate appointed by the Senate
22Committee on Rules, and two Members of the Assembly appointed
23by the Speaker of the Assembly, shall meet with and provide advice
24to the committee to the extent that the advisory participation is not
25incompatible with their respective positions as Members of the
26Legislature. For
the purposes of this chapter, the Members of the
27Legislature shall constitute an interim investigating committee on
28the subject of this chapter and, as that committee, shall have the
29powers granted to, and duties imposed upon, those committees by
30the Joint Rules of the Senate and the Assembly. The Director of
31Finance shall provide assistance to the committee as it may require.
32The Attorney General of the state is the legal adviser of the
33committee.
(a) The bonds authorized by this chapter shall be
35prepared, executed, issued, sold, paid, and redeemed as provided
36in the State General Obligation Bond Law (Chapter 4 (commencing
37with Section 16720) of Part 3 of Division 4 of Title 2 of the
38Government Code), and all of the provisions of that law, except
39Section 16727 of the Government Code to the extent that it
40conflicts with this part, apply to the bonds and to this chapter and
P10 1are hereby incorporated into this chapter as though set forth in full
2within this chapter.
3(b) For purposes of the State General Obligation Bond Law, the
4State Allocation Board is designated the “board” for purposes of
5administering the 2014 State School
Facilities Fund.
(a) Upon request of the State Allocation Board, the
7State School Building Finance Committee shall determine whether
8or not it is necessary or desirable to issue bonds authorized pursuant
9to this chapter in order to fund the apportionments and, if so, the
10amount of bonds to be issued and sold. Successive issues of bonds
11may be authorized and sold to fund those apportionments
12progressively, and it is not necessary that all of the bonds
13authorized to be issued be sold at any one time.
14(b) A request of the State Allocation Board pursuant to
15subdivision (a) shall be supported by a statement of the
16apportionments made and to be made for the purposes described
17in Sections 101111 and
101112.
There shall be collected each year and in the same
19manner and at the same time as other state revenue is collected,
20in addition to the ordinary revenues of the state, a sum in an amount
21required to pay the principal of, and interest on, the bonds each
22year. It is the duty of all officers charged by law with any duty in
23regard to the collection of the revenue to do and perform each and
24every act that is necessary to collect that additional sum.
Notwithstanding Section 13340 of the Government
26Code, there is hereby appropriated from the General Fund in the
27State Treasury, for the purposes of this chapter, an amount that
28will equal the total of the following:
29(a) The sum annually necessary to pay the principal of, and
30interest on, bonds issued and sold pursuant to this chapter, as the
31principal and interest become due and payable.
32(b) The sum necessary to carry out Section 101128, appropriated
33without regard to fiscal years.
The State Allocation Board may request the Pooled
35Money Investment Board to make a loan from the Pooled Money
36Investment Account or any other approved form of interim
37financing, in accordance with Section 16312 of the Government
38Code, for the purpose of carrying out this chapter. The amount of
39the request shall not exceed the amount of the unsold bonds that
40the committee, by resolution, has authorized to be sold for the
P11 1purpose of carrying out this chapter. The board shall execute any
2documents required by the Pooled Money Investment Board to
3obtain and repay the loan. Any amounts loaned shall be deposited
4in the fund to be allocated by the board in accordance with this
5chapter.
Notwithstanding any other provision of this chapter,
7or of the State General Obligation Bond Law, if the Treasurer sells
8bonds pursuant to this chapter that include a bond counsel opinion
9to the effect that the interest on the bonds is excluded from gross
10income for federal tax purposes, subject to designated conditions,
11the Treasurer may maintain separate accounts for the investment
12of bond proceeds and for the investment earnings on those
13proceeds. The Treasurer may use or direct the use of those proceeds
14or earnings to pay any rebate, penalty, or other payment required
15under federal law or take any other action with respect to the
16investment and use of those bond proceeds required or desirable
17under federal law to maintain the tax-exempt status of those bonds
18and
to obtain any other advantage under federal law on behalf of
19the funds of this state.
For the purposes of carrying out this chapter, the
21Director of Finance may authorize the withdrawal from the General
22Fund of an amount not to exceed the amount of the unsold bonds
23that have been authorized by the State School Building Finance
24Committee to be sold for the purpose of carrying out this chapter.
25Any amounts withdrawn shall be deposited in the 2014 State
26School Facilities Fund consistent with this chapter. Any money
27made available under this section shall be returned to the General
28Fund, plus an amount equal to the interest that the money would
29have earned in the Pooled Money Investment Account, from
30proceeds received from the sale of bonds for the purpose of
31carrying out this chapter.
All money deposited in the 2014 State School Facilities
33Fund that is derived from premium and accrued interest on bonds
34sold shall be reserved in the fundbegin insert,end insert and shall be available for transfer
35to the General Fund as a credit to expenditures for bond interest.
The bonds may be refunded in accordance with Article
376 (commencing with Section 16780) of Chapter 4 of Part 3 of
38Division 4 of Title 2 of the Government Code, which is a part of
39the State General Obligation Bond Law. Approval by the voters
40of the state for the issuance of the bonds described in this chapter
P12 1includes the approval of the issuance of any bonds issued to refund
2any bonds originally issued under this chapter or any previously
3issued refunding bonds.
The Legislature hereby finds and declares that,
5inasmuch as the proceeds from the sale of bonds authorized by
6this chapter are not “proceeds of taxes” as that term is used in
7Article XIII B of the California Constitution, the disbursement of
8these proceeds is not subject to the limitations imposed by that
9article.
10
(a) The 2014 California Community College Capital
16Outlay Bond Fund is hereby established in the State Treasury for
17deposit of funds from the proceeds of bonds issued and sold for
18the purposes of this chapter.
19(b) The Higher Education Facilities Finance Committee
20established pursuant to Section 67353 is hereby authorized to create
21a debt or debts, liability or liabilities, of the State of California
22pursuant to this chapter for the purpose of providing funds to aid
23the California Community Colleges.
24
(a) From the proceeds of bonds issued and sold
28pursuant to Article 3 (commencing with Section 101134), the sum
29ofbegin delete ____ dollars ($____)end deletebegin insert two billion dollars ($2,000,000,000)end insert shall
30be deposited in the 2014 California Community College Capital
31Outlay Bond Fund for the purposes of this article. When
32appropriated, these funds shall be available for expenditure for the
33purposes of this article.
34(b) The purposes of this article include assisting in meeting the
35capital outlay financing needs of the California Community
36Colleges.
37(c) Proceeds from the sale of bonds issued and sold for the
38purposes of this article may be used to fund construction on
39existing campuses, including the construction of buildings and the
40acquisition of related fixtures, construction of facilities that may
P13 1be used by more than one segment of public higher education
2
(intersegmental), the renovation and reconstruction of facilities,
3site acquisition, the equipping of new, renovated, or reconstructed
4facilities, which equipment shall have an average useful life of 10
5years; and to provide funds for the payment of preconstruction
6costs, including, but not limited to, preliminary plans and working
7drawings for facilities of the California Community Colleges.
8
(a) Of the total amount of bonds authorized to be
12issued and sold pursuant to Chapter 1 (commencing with Section
13101100), bonds in the total amount ofbegin delete ____ dollars ($____),end deletebegin insert two
14billion dollars ($2,000,000,000),end insert not including the amount of any
15refunding bonds issued in accordance with Section 101139, or so
16much thereof as is necessary, may be issued and sold to provide
17a fund to be used for carrying out the purposes expressed in this
18chapter and to reimburse the General Obligation Bond Expense
19Revolving Fund pursuant to Section 16724.5 of the Government
20Code. The bonds, when sold, shall
be and constitute a valid and
21binding obligation of the State of California, and the full faith and
22credit of the State of California is hereby pledged for the punctual
23payment of the principal of, and interest on, the bonds as the
24principal and interest become due and payable.
25(b) It is the intent of the Legislature that the California
26Community Colleges annually consider, as part of their annual
27capital outlay planning process, the inclusion of facilities that may
28be used by more than one segment of public higher education
29(intersegmental), and, that on or before May 15 of each year, those
30entities report their findings to the budget committees of each
31house of the Legislature.
32(c) Pursuant to this section, the Treasurer shall sell the bonds
33authorized by the Higher
Education Facilities Finance Committee
34established pursuant to Section 67353 at any different times
35necessary to service expenditures required by the apportionments.
(a) The bonds authorized by this chapter shall be
37prepared, executed, issued, sold, paid, and redeemed as provided
38in the State General Obligation Bond Law (Chapter 4 (commencing
39with Section 16720) of Part 3 of Division 4 of Title 2 of the
40Government Code), and all of the provisions of that law, except
P14 1Section 16727 of the Government Code to the extent that it
2conflicts with this part, apply to the bonds and to this chapter and
3are hereby incorporated into this chapter as though set forth in full
4within this chapter.
5(b) For the purposes of the State General Obligation Bond Law,
6each state agency administering an appropriation of the 2014
7Community College Capital Outlay Bond
Fund is designated as
8the “board” for projects funded pursuant to this chapter.
9(c) The proceeds of the bonds issued and sold pursuant to this
10chapter shall be available for the purpose of funding aid to the
11California Community Colleges for the construction on existing
12or new campuses, and their respective off-campus centers and joint
13use and intersegmental facilities, as set forth in this chapter.
The Higher Education Facilities Finance Committee
15established pursuant to Section 67353 shall authorize the issuance
16of bonds under this chapter only to the extent necessary to fund
17the apportionments for the purposes described in this chapter that
18are expressly authorized by the Legislature in the annual Budget
19Act. Pursuant to that legislative direction, the committee shall
20determine whether or not it is necessary or desirable to issue bonds
21authorized pursuant to this chapter in order to carry out the
22purposes described in this chapter and, if so, the amount of bonds
23to be issued and sold. Successive issues of bonds may be authorized
24and sold to carry out those actions progressively, and it is not
25necessary that all of the bonds authorized to be issued be sold at
26any
one time.
There shall be collected each year and in the same
28manner and at the same time as other state revenue is collected,
29in addition to the ordinary revenues of the state, a sum in an amount
30required to pay the principal of, and interest on, the bonds each
31year. It is the duty of all officers charged by law with any duty in
32regard to the collection of the revenue to do and perform each and
33every act which is necessary to collect that additional sum.
Notwithstanding Section 13340 of the Government
35Code, there is hereby appropriated from the General Fund in the
36State Treasury, for the purposes of this chapter, an amount that
37will equal the total of the following:
38(a) The sum annually necessary to pay the principal of, and
39interest on, bonds issued and sold pursuant to this chapter, as the
40principal and interest become due and payable.
P15 1(b) The sum necessary to carry out Section 101137.5,
2appropriated without regard to fiscal years.
The board, as defined in subdivision (b) of Section
4101134.5, may request the Pooled Money Investment Board to
5make a loan from the Pooled Money Investment Account or any
6other approved form of interim financing, in accordance with
7Section 16312 of the Government Code, for the purpose of carrying
8out this chapter. The amount of the request shall not exceed the
9amount of the unsold bonds that the committee, by resolution, has
10authorized to be sold for the purpose of carrying out this chapter.
11The board, as defined in subdivision (b) of Section 101134.5, shall
12execute any documents required by the Pooled Money Investment
13Board to obtain and repay the loan. Any amounts loaned shall be
14deposited in the fund to be allocated by the board in accordance
15with this
chapter.
Notwithstanding any other provision of this chapter,
17or of the State General Obligation Bond Law, if the Treasurer sells
18bonds pursuant to this chapter that include a bond counsel opinion
19to the effect that the interest on the bonds is excluded from gross
20income for federal tax purposes, subject to designated conditions,
21the Treasurer may maintain separate accounts for the investment
22of bond proceeds and for the investment earnings on those
23proceeds. The Treasurer may use or direct the use of those proceeds
24or earnings to pay any rebate, penalty, or other payment required
25under federal law or take any other action with respect to the
26investment and use of those bond proceeds required or desirable
27under federal law to maintain the tax-exempt status of those bonds
28and
to obtain any other advantage under federal law on behalf of
29the funds of this state.
(a) For the purposes of carrying out this chapter,
31the Director of Finance may authorize the withdrawal from the
32General Fund of an amount not to exceed the amount of the unsold
33bonds that have been authorized by the Higher Education Facilities
34Finance Committee to be sold for the purpose of carrying out this
35chapter. Any amounts withdrawn shall be deposited in the 2014
36California Community College Capital Outlay Bond Fund
37consistent with this chapter. Any money made available under this
38section shall be returned to the General Fund, plus an amount equal
39to the interest that the money would have earned in the Pooled
P16 1Money Investment Account, from proceeds received from the sale
2of bonds for the purpose of carrying out this chapter.
3(b) Any request forwarded to the Legislature and the Department
4of Finance for funds from this bond issue for expenditure for the
5purposes described in this chapter by the California Community
6Colleges shall be accompanied by the five-year capital outlay plan
7that reflects the needs and priorities of the community college
8system and is prioritized on a statewide basis. Requests shall
9include a schedule that prioritizes the seismic retrofitting needed
10to significantly reduce, in the judgment of the particular college,
11seismic hazards in buildings identified as high priority by the
12college.
All money deposited in the 2014 California
14Community College Capital Outlay Bond Fund that is derived
15from premium and accrued interest on bonds sold shall be reserved
16in the fundbegin insert,end insert and shall be available for transfer to the General Fund
17as a credit to expenditures for bond interest.
The bonds may be refunded in accordance with Article
196 (commencing with Section 16780) of Chapter 4 of Part 3 of
20Division 4 of Title 2 of the Government Code, which is a part of
21the State General Obligation Bond Law. Approval by the voters
22of the state for the issuance of the bonds described in this chapter
23includes the approval of the issuance of any bonds issued to refund
24any bonds originally issued under this chapter or any previously
25issued refunding bonds.
The Legislature hereby finds and declares that,
27inasmuch as the proceeds from the sale of bonds authorized by
28this chapter are not “proceeds of taxes” as that term is used in
29Article XIII B of the California Constitution, the disbursement of
30these proceeds is not subject to the limitations imposed by that
31article.
32
34
(a) The system of public universities in this state
38includes the University of California, the Hastings College of the
39Law, and the California State University, and their respective
40off-campus centers.
P17 1(b) The 2014 University Capital Outlay Bond Fund is hereby
2established in the State Treasury for deposit of funds from the
3proceeds of bonds issued and sold for the purposes of this chapter.
4(c) The Higher Education Facilities Finance Committee
5established pursuant to Section 67353 is hereby authorized to create
6a debt or debts, liability or liabilities, of the State of California
7pursuant to this chapter for the purpose of
providing funds to aid
8the University of California, the Hastings College of the Law, and
9the California State University.
10
(a) From the proceeds of bonds issued and sold
15pursuant to Article 4 (commencing with Section 101150), the sum
16ofbegin delete ____ dollars ($____)end deletebegin insert five hundred million dollars
17($500,000,000)end insert shall be deposited in the 2014 University Capital
18Outlay Bond Fund for the purposes of this article. When
19appropriated, these funds shall be available for expenditure for the
20purposes of this article.
21(b) The purposes of this article include assisting in meeting the
22capital outlay financing needs of the University of California and
23the Hastings
College of the Law.
24(c) Proceeds from the sale of bonds issued and sold for the
25purposes of this article may be used to fund construction on
26existing campuses, including the construction of buildings and the
27acquisition of related fixtures, construction of facilities that may
28be used by more than one segment of public higher education
29(intersegmental), the renovation and reconstruction of facilities,
30site acquisition, the equipping of new, renovated, or reconstructed
31facilities, which equipment shall have an average useful life of 10
32years; and to provide funds for the payment of preconstruction
33costs, including, but not limited to, preliminary plans and working
34drawings for facilities of the University of California and the
35Hastings College of the Law.
(a) From the proceeds of bonds issued and sold
5pursuant to Article 4 (commencing with Section 101150), the sum
6ofbegin delete ____ dollars ($____)end deletebegin insert five hundred million dollars
7($500,000,000)end insert shall be deposited in the 2014 University Capital
8Outlay Bond Fund for the purposes of this article. When
9appropriated, these funds shall be available for expenditure for the
10purposes of this article.
11(b) The purposes of this article include assisting in meeting the
12capital outlay financing needs of the California State University.
13(c) Proceeds from the sale of bonds issued and sold for the
14purposes of this article may be used to fund construction on
15existing campuses, including the construction of buildings and the
16acquisition of related fixtures, construction of facilities that may
17be used by more than one segment of public higher education
18(intersegmental), the renovation and reconstruction of facilities,
19site acquisition, the equipping of new, renovated, or reconstructed
20facilities, which equipment shall have an average useful life of 10
21years; and to provide funds for the payment of preconstruction
22costs, including, but not limited to, preliminary plans and working
23drawings for facilities of the California State University.
24
(a) Of the total amount of bonds authorized to be
28issued and sold pursuant to Chapter 1 (commencing with Section
29101100), bonds in the amount ofbegin delete ____ dollars ($____),end deletebegin insert one billion
30dollars ($1,000,000,000),end insert not including the amount of any
31refunding bonds issued in accordance with Section 101159, or so
32much thereof as is necessary, may be issued and sold to provide
33a fund to be used for carrying out the purposes expressed in this
34chapter and to reimburse the General Obligation Bond Expense
35Revolving Fund pursuant to Section 16724.5 of the Government
36Code. The bonds, when sold, shall
be and constitute a valid and
37binding obligation of the State of California, and the full faith and
38credit of the State of California is hereby pledged for the punctual
39payment of the principal of, and interest on, the bonds as the
40principal and interest become due and payable.
P19 1(b) It is the intent of the Legislature that the University of
2California and the California State University annually consider,
3as part of their annual capital outlay planning process, the inclusion
4of facilities that may be used by more than one segment of public
5higher education (intersegmental), and, that on or before May 15
6of each year, those entities report their findings to the budget
7committees of each house of the Legislature.
8(c) Pursuant to this section, the Treasurer shall sell the bonds
9authorized
by the Higher Education Facilities Finance Committee
10established pursuant to Section 67353 at any different times
11necessary to service expenditures required by the apportionments.
(a) The bonds authorized by this chapter shall be
13prepared, executed, issued, sold, paid, and redeemed as provided
14in the State General Obligation Bond Law (Chapter 4 (commencing
15with Section 16720) of Part 3 of Division 4 of Title 2 of the
16Government Code), and all of the provisions of that law, except
17Section 16727 of the Government Code to the extent that it
18conflicts with this part, apply to the bonds and to this chapter and
19are hereby incorporated into this chapter as though set forth in full
20within this chapter.
21(b) For the purposes of the State General Obligation Bond Law,
22each state agency administering an appropriation of the 2014
23University Capital Outlay Bond Fund is
designated as the “board”
24for projects funded pursuant to this chapter.
25(c) The proceeds of the bonds issued and sold pursuant to this
26chapter shall be available for the purpose of funding aid to the
27University of California, the Hastings College of the Law, and the
28California State University, for the construction on existing or new
29campuses, and their respective off-campus centers and joint use
30and intersegmental facilities, as set forth in this chapter.
The Higher Education Facilities Finance Committee
32established pursuant to Section 67353 shall authorize the issuance
33of bonds under this chapter only to the extent necessary to fund
34the apportionments for the purposes described in this chapter that
35are expressly authorized by the Legislature in the annual Budget
36Act. Pursuant to that legislative direction, the committee shall
37determine whether or not it is necessary or desirable to issue bonds
38authorized pursuant to this chapter in order to carry out the
39purposes described in this chapter and, if so, the amount of bonds
40to be issued and sold. Successive issues of bonds may be authorized
P20 1and sold to carry out those actions progressively, and it is not
2necessary that all of the bonds authorized to be issued be sold at
3
any one time.
There shall be collected each year and in the same
5manner and at the same time as other state revenue is collected,
6in addition to the ordinary revenues of the state, a sum in an amount
7required to pay the principal of, and interest on, the bonds each
8year. It is the duty of all officers charged by law with any duty in
9regard to the collection of the revenue to do and perform each and
10every act which is necessary to collect that additional sum.
Notwithstanding Section 13340 of the Government
12Code, there is hereby appropriated from the General Fund in the
13State Treasury, for the purposes of this chapter, an amount that
14will equal the total of the following:
15(a) The sum annually necessary to pay the principal of, and
16interest on, bonds issued and sold pursuant to this chapter, as the
17principal and interest become due and payable.
18(b) The sum necessary to carry out Section 101157, appropriated
19without regard to fiscal years.
The board, as defined in subdivision (b) of Section
21101151, may request the Pooled Money Investment Board to make
22a loan from the Pooled Money Investment Account or any other
23approved form of interim financing, in accordance with Section
2416312 of the Government Code, for the purpose of carrying out
25this chapter. The amount of the request shall not exceed the amount
26of the unsold bonds that the committee, by resolution, has
27authorized to be sold for the purpose of carrying out this chapter.
28The board, as defined in subdivision (b) of Section 101151, shall
29execute any documents required by the Pooled Money Investment
30Board to obtain and repay the loan. Any amounts loaned shall be
31deposited in the fund to be allocated by the board in accordance
32with this
chapter.
Notwithstanding any other provision of this chapter,
34or of the State General Obligation Bond Law, if the Treasurer sells
35bonds pursuant to this chapter that include a bond counsel opinion
36to the effect that the interest on the bonds is excluded from gross
37income for federal tax purposes, subject to designated conditions,
38the Treasurer may maintain separate accounts for the investment
39of bond proceeds and for the investment earnings on those
40proceeds. The Treasurer may use or direct the use of those proceeds
P21 1or earnings to pay any rebate, penalty, or other payment required
2under federal law or take any other action with respect to the
3investment and use of those bond proceeds required or desirable
4under federal law to maintain the tax-exempt status of those bonds
5and
to obtain any other advantage under federal law on behalf of
6the funds of this state.
(a) For the purposes of carrying out this chapter, the
8Director of Finance may authorize the withdrawal from the General
9Fund of an amount not to exceed the amount of the unsold bonds
10that have been authorized by the Higher Education Facilities
11Finance Committee to be sold for the purpose of carrying out this
12chapter. Any amounts withdrawn shall be deposited in the 2014
13University Capital Outlay Bond Fund consistent with this chapter.
14Any money made available under this section shall be returned to
15the General Fund, plus an amount equal to the interest that the
16money would have earned in the Pooled Money Investment
17Account, from proceeds received from the sale of bonds for the
18purpose of carrying out this chapter.
19(b) Any request forwarded to the Legislature and the Department
20of Finance for funds from this bond issue for expenditure for the
21purposes described in this chapter by the University of California,
22the Hastings College of the Law, or the California State University
23shall be accompanied by the five-year capital outlay plan. Requests
24forwarded by a university or college shall include a schedule that
25prioritizes the seismic retrofitting needed to significantly reduce,
26in the judgment of the particular university or college, seismic
27hazards in buildings identified as high priority by the university
28or college.
All money deposited in the 2014 University Capital
30Outlay Bond Fund that is derived from premium and accrued
31interest on bonds sold shall be reserved in the fundbegin insert,end insert and shall be
32available for transfer to the General Fund as a credit to expenditures
33for bond interest.
The bonds may be refunded in accordance with Article
356 (commencing with Section 16780) of Chapter 4 of Part 3 of
36Division 4 of Title 2 of the Government Code, which is a part of
37the State General Obligation Bond Law. Approval by the voters
38of the state for the issuance of the bonds described in this chapter
39includes the approval of the issuance of any bonds issued to refund
P22 1any bonds originally issued under this chapter or any previously
2issued refunding bonds.
The Legislature hereby finds and declares that,
4inasmuch as the proceeds from the sale of bonds authorized by
5this chapter are not “proceeds of taxes” as that term is used in
6Article XIII B of the California Constitution, the disbursement of
7these proceeds is not subject to the limitations imposed by that
8article.
The Secretary of State shall submit Section 10 of this
10act to the voters at the November 4, 2014, statewide general
11election.
The provisions of this act are severable. If any
13provision of this act or its application is held invalid, that invalidity
14shall not affect other provisions or applications that can be given
15effect without the invalid provision or application.
Sections 1 to 10, inclusive, of this act shall become
17operative only if the voters approve the Kindergarten-University
18Public Education Facilities Bond Act of 2014, as set forth in
19Section 10 of this act.
This act is an urgency statute necessary for the
21immediate preservation of the public peace, health, or safety within
22the meaning of Article IV of the Constitution and shall go into
23immediate effect. The facts constituting the necessity are:
24In order to ensure, at the earliest possible time, that the electorate
25is provided with the opportunity to vote on the financing of
26necessary educational facilities at the November 4, 2014, statewide
27general election, including related statutory changes, it is necessary
28that this act take effect immediately.
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