California Legislature—2015–16 Regular Session

Assembly BillNo. 912


Introduced by Assembly Member Wilk

February 26, 2015


An act to amend Sections 17150 and 17150.1 of, and to amend the heading of Chapter 16 (commencing with Section 17150) of Part 10 of Division 1 of Title 1 of, the Education Code, relating to local educational agencies.

LEGISLATIVE COUNSEL’S DIGEST

AB 912, as introduced, Wilk. Local educational agencies: school bonds: notices.

(1) Existing law requires a school district to notify the county superintendent of schools and the county auditor when the governing board of the school district approves proceeding with the issuance of certificates of participation or revenue bonds or entering into specified agreements for financing school construction pursuant to the California School Finance Authority Act. The superintendent of the school district is required to provide specified information to the county auditor, the county superintendent of schools, the governing board, and the public regarding that debt.

Existing law requires the county superintendent of schools or superintendent of a school district for which the county board serves as governing board to notify the Superintendent of Public Instruction when the county board of education approves proceeding with the issuance of certificates of participation or revenue bonds or to entering into an agreement for financing pursuant to the California School Finance Authority Act. The county superintendent of schools or the superintendent of a school district for which the county board serves as the governing board is required to provide specified information to the Superintendent of Public Instruction, the governing board, and the public.

This bill would delete the language specifying that the scope of these provisions is limited to revenue bonds, and instead refer to bonds generally. The bill would also require that, no later than 30 days before the approval by the governing board of the school district to proceed with the issuance of bonds, the school district notify the county superintendent of schools and the county auditor. The bill would delete the language limiting the requirement of this notice to instruments that do not require approval of the voters of the school district or county.

To the extent that this bill would expand the requirements for the provision of notices by specified county officials, the bill would impose a state-mandated local program.

(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

P2    1

SECTION 1.  

The heading of Chapter 16 (commencing with
2Section 17150) of Part 10 of Division 1 of Title 1 of the Education
3Code
is amended to read:

4 

5Chapter  16. 6Public Disclosure ofbegin delete Non-Voter-Approvedend delete Debt
7

 

8

SEC. 2.  

Section 17150 of the Education Code is amended to
9read:

10

17150.  

(a) Upon the approval by the governing board of the
11school district to proceed with the issuance ofbegin delete revenueend delete bonds or
12to enter into an agreement for financing school construction
13pursuant to Chapter 18 (commencing with Section 17170), the
14school district shall notify the county superintendent of schools
P3    1and the county auditor. The superintendent of the school district
2shall provide the repayment schedules for that debt obligation and
3evidence of the ability of the school district to repay that obligation
4to the county auditor, the countybegin delete superintendent,end deletebegin insert superintendent
5of schools,end insert
the governing board, and the public. Within 15 days
6of the receipt of the information, the county superintendent of
7schools and the county auditor may comment publicly to the
8governing board of the school district regarding the capability of
9the school district to repay that debt obligation.

10(b) Upon the approval by the county board of education to
11proceed with the issuance ofbegin delete revenueend delete bonds or to enter into an
12agreement for financing pursuant to Chapter 18 (commencing with
13Section 17170), the county superintendent of schools or
14superintendent of a school district for which the county board
15serves as governing board shall notify the Superintendent. The
16county superintendent of schools or the superintendent of a school
17district for which the county board serves as the governing board
18shall provide the repayment schedules for that debt obligation and
19evidence of the ability of the county office of education or school
20district to repay that obligation, to the Superintendent, the
21governing board, and the public. Within 15 days of the receipt of
22the information the Superintendent may comment publicly to the
23county board of education regarding the capability of the county
24office of education or school district to repay that debt obligation.

25(c) begin deletePrior to end deletebegin insertBefore end insertdelivery of the notice required by subdivision
26(a) neither the county nor its officers shall have responsibility for
27the administration of the indebtedness of the school district. Failure
28to comply with the requirements of this section will not affect the
29validity of the indebtedness.

30

SEC. 3.  

Section 17150.1 of the Education Code is amended to
31read:

32

17150.1.  

(a) No later than 30 days before the approval by the
33governing board of the school district to proceed with the issuance
34ofbegin insert bonds,end insert certificates of participationbegin insert,end insert and other debt instruments
35that are secured by realbegin delete property and do not require approval of
36the voters of the school district,end delete
begin insert property,end insert the school district shall
37notify the county superintendent of schools and the county auditor.
38The superintendent of the school district shall provide information
39necessary to assess the anticipated effect of the debt issuance,
40including the repayment schedules for that debt obligation,
P4    1evidence of the ability of the school district to repay that obligation,
2and the issuance costs, to the county auditor, the county
3superintendent, the governing board, and the public. Within 15
4days of the receipt of the information, the county superintendent
5of schools and the county auditor may comment publicly to the
6governing board of the school district regarding the capability of
7the school district to repay that debt obligation.

8(b) No later than 30 days before the approval by the county
9board of education to proceed with the issuance of certificates of
10participation and other debt instruments that are secured by real
11begin delete property and do not require approval of the voters of the county,end delete
12begin insert property,end insert the county superintendent of schools or superintendent
13of a school district for which the county board serves as governing
14board shall notify the Superintendent. The county superintendent
15of schools or the superintendent of a school district for which the
16county board serves as the governing board shall provide
17information necessary to assess the anticipated effect of the debt
18issuance, including the repayment schedules for that debt
19obligation, the evidence of the ability of the county office of
20education or school district to repay that obligation, and issuance
21costs, to the Superintendent, the governing board, and the public.
22Within 15 days of the receipt of the information the Superintendent
23may comment publicly to the county board of education regarding
24the capability of the county office of education or school district
25to repay that debt obligation.

26

SEC. 4.  

If the Commission on State Mandates determines that
27this act contains costs mandated by the state, reimbursement to
28local agencies and school districts for those costs shall be made
29pursuant to Part 7 (commencing with Section 17500) of Division
304 of Title 2 of the Government Code.



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