BILL NUMBER: SB 114 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 19, 2015
INTRODUCED BY Senator Liu
JANUARY 13, 2015
An act to amend Sections 17070.15, 17070.40, 17070.75, 17072.35,
17074.25, 17074.26, 17077.42, and 17592.70 of, to add
Sections 17070.78, 17071.15, 17072.40, and 17073.16 to, to
add Part 70 (commencing with Section 101100) to Division 14 of Title
3 of, to add and repeal Section 17254 of, and to repeal Sections
17070.99, 17071.33, 17071.35, and 17071.40 of, the Education Code,
relating to education facilities, and 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.
LEGISLATIVE COUNSEL'S DIGEST
SB 114, as amended, Liu. Education facilities:
Kindergarten-University Kindergarten Through Grade 12
Public Education Facilities Bond Act of 2016.
(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 revise the definition of modernization under the
act to include the replacement of facilities on a site containing a
permanent structure that is at least 25 years old or, in the case of
a portable classroom, that is at least 20 years old, as specified.
The bill would reduce the minimum amount that an applicant school
district under the act must set aside for ongoing and major
maintenance of school buildings from 3% to 2% of the total general
fund expenditures of that district in a fiscal year.
The bill would require a school district, as a condition for
participation in the school facilities program, to certify that it
has a long-range school facilities master plan that is consistent
with the regional sustainable communities strategy, as specified.
The 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 or modernization program to
reestablish eligibility, as specified, and to conduct an inventory of
existing facilities for purposes of maintaining a statewide school
facilities inventory.
The bill would authorize a grant for new construction or
modernization under the act to be used for seismic mitigation
purposes and for related design, study, and testing costs, and
require the State Allocation Board, in the development of guidelines
and regulations, to provide a school district with maximum
flexibility in the design, modernization, and new construction of
school facilities.
The bill would require the Office of Public School Construction to
recommend regulations to the State Allocation Board to provide
school districts with flexibility in designing instructional
facilities.
The bill would revise the provisions for the funding of joint-use
facilities to allow an additional exemption from a general
requirement that a joint-use partner contribute to at least 25% of
eligible project costs, as specified. This additional exemption would
apply if the joint-use agreement specifies that the joint-use
partner will provide 100% of the operational costs of the joint-use
project for a term of no less than 10 years.
The bill would require the State Department of Education, the
Division of the State Architect, the Office of Public School
Construction, and the Department of Toxic Substances Control to
convene for purposes of developing an interagency plan to streamline
the school facilities construction application, review, and audit
processes in order to reduce the time and improve the efficiency of
the school facilities construction process , as specified
. The bill would require that this interagency plan be submitted to
the Legislature on or before July 1, 2017.
2016.
(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
Kindergarten Through Grade 12 Public Education
Facilities Bond Act of 2016 to authorize an unspecified amount of
state general obligation bonds, as scheduled, to provide aid to
school districts, county superintendents of schools, county boards of
education, and charter schools, the California
Community Colleges, the University of California, the Hastings
College of the Law, and the California State University
schools to construct and modernize education facilities.
The proceeds of these bonds would be deposited in the 2016 State
School Facilities Fund, the 2016 California Community
College Capital Outlay Bond Fund, and the 2016 University Capital
Outlay Bond Fund, which the bill would establish as
specified.
The proposed bond act would become operative only if approved by
the voters at the November 8, 2016, statewide general election, and
the bill would provide for its submission to the voters at that
election.
(3) This bill would specify that certain of its provisions would
become operative only if the Kindergarten-University
Kindergarten Through Grade 12 Public Education
Facilities Bond Act of 2016 is approved by the voters at the November
8, 2016, statewide general election.
(4) This bill would make conforming and nonsubstantive changes in
related provisions of existing law.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17070.15 of the Education Code is amended to
read:
17070.15. The following terms, wherever used or referred to in
this chapter, shall have the following meanings, respectively, unless
a different meaning appears from the context:
(a) "Apportionment" means a reservation of funds for the purpose
of eligible new construction, modernization, or hardship approved by
the board for an applicant school district.
(b) "Attendance area" means the geographical area serving an
existing high school and those junior high schools and elementary
schools included therein.
(c) "Board" means the State Allocation Board as established by
Section 15490 of the Government Code.
(d) "Committee" means the State School Building Finance Committee
established pursuant to Section 15909.
(e) "County fund" means a county school facilities fund
established pursuant to Section 17070.43.
(f) "Department" means the Department of General Services.
(g) "Fund" means the applicable 1998 State School Facilities Fund,
the 2002 State School Facilities Fund, the 2004 State School
Facilities Fund, the 2006 State School Facilities Fund, or the 2016
State School Facilities Fund, established pursuant to Section
17070.40.
(h) "Good repair" has the same meaning as specified in subdivision
(d) of Section 17002.
(i) "Modernization" means any modification or replacement of a
permanent structure that is at least 25 years old, or, in the case of
a portable classroom, that is at least 20 years old, that will
enhance the ability of the structure to achieve educational purposes.
(j) "Portable classroom" means a classroom building of one or more
stories that is designed and constructed to be relocatable and
transportable over public streets, and with respect to a single story
portable classroom, is designed and constructed for relocation
without the separation of the roof or floor from the building and
when measured at the most exterior walls, has a floor area not in
excess of 2,000 square feet.
(k) "Property" includes all property, real, personal or mixed,
tangible or intangible, or any interest therein necessary or
desirable for carrying out the purposes of this chapter.
( l ) "School building capacity" means the capacity of
a school building to house pupils.
(m) "School district" means a school district or a county office
of education. For purposes of determining eligibility under this
chapter, "school district" may also mean a high school attendance
area.
SEC. 2. Section 17070.40 of the Education Code is amended to read:
17070.40. (a) (1) A fund is hereby established in the State
Treasury, 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, 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, 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 2016 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 2016 State
School Facilities Fund from any source.
(3) The board may make apportionments in amounts not exceeding
those funds on deposit in the 2016 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 2016 State School Facilities Fund,
irrespective of whether there exists at the time of the disbursement
an amount in the 2016 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. 3. Section 17070.75 of the Education Code
is amended to read:
17070.75. (a) As a condition of participation in the school
facilities program, the board shall require the school district to
make all necessary repairs, renewals, and replacements to ensure that
a project is at all times maintained in good repair, working order,
and condition. All costs incurred for this purpose shall be borne by
the school district.
(b) In order to ensure compliance with subdivision (a) and to
encourage school districts to maintain all buildings under their
control, the board shall require an applicant school district to do
all of the following prior to the approval of a project:
(1) Establish a restricted account within the general fund of the
school district for the exclusive purpose of providing moneys for
ongoing and major maintenance of school buildings, according the
highest priority to funding for the purposes set forth in subdivision
(a).
(2) (A) Agree to deposit into the account established pursuant to
paragraph (1), in each fiscal year for 20 years after receipt of
funds under this chapter, a minimum amount equal to or greater than 2
percent of the total general fund expenditures of the applicant
school district, including other financing uses, for that fiscal
year.
(B) A school district contribution to the account may be provided
in lieu of meeting the ongoing maintenance requirements pursuant to
Section 17014 to the extent the funds are used for purposes
established in that section. A school district that serves as the
administrative unit for a special education local plan area may elect
to exclude from its total general fund expenditures, for purposes of
this paragraph, the distribution of revenues that are passed through
to participating members of the special education local plan area.
(C) This paragraph applies only to the following school districts:
(i) High school districts with an average daily attendance greater
than 300 pupils.
(ii) Elementary school districts with an average daily attendance
greater than 900 pupils.
(iii) Unified school districts with an average daily attendance
greater than 1,200 pupils.
(3) Certify that it has publicly approved an ongoing and major
maintenance plan that outlines the use of the funds deposited, or to
be deposited, pursuant to paragraph (2). The plan may provide that
the school district need not expend all of its annual allocation for
ongoing and major maintenance in the year in which it is deposited if
the cost of major maintenance requires that the allocation be
carried over into another fiscal year. However, any state funds
carried over into a subsequent year may not be counted toward the
annual minimum contribution by the school district.
(c) For purposes of calculating a county office of education
requirement pursuant to this section, the 2 percent maintenance
requirement shall be based upon the county office of education
general fund less any restricted accounts.
(d) As a condition of participation in the school facilities
program or the receipt of funds pursuant to Section 17582, for a
fiscal year after the 2004-05 fiscal year, a school district shall
establish a facilities inspection system to ensure that each of its
schools is maintained in good repair.
(e) For purposes of this section, "good repair" has the same
meaning as specified in subdivision (d) of Section 17002.
SEC. 3. Section 17070.75 of the
Education Code is amended to read:
17070.75. (a) The As a condition for
participation in the school facilities program, the board shall
require the school district to make all necessary repairs, renewals,
and replacements to ensure that a project is at all times maintained
in good repair, working order, and condition. All costs incurred for
this purpose shall be borne by the school district.
(b) In order to ensure compliance with subdivision (a) and to
encourage school districts to maintain all buildings under their
control, the board shall require an applicant school district to do
all of the following prior to the approval of a project:
(1) Establish a restricted account within the general fund of the
school district for the exclusive purpose of providing moneys for
ongoing and major maintenance of school buildings, according the
highest priority to funding for the purposes set forth in subdivision
(a).
(2) (A) Agree to deposit into the account established pursuant to
paragraph (1), in each fiscal year for 20 years after receipt of
funds under this chapter, a minimum amount equal to or greater than 3
percent of the total general fund expenditures of the applicant
school district, including other financing uses, for that fiscal
year. Annual deposits to the account established pursuant to
paragraph (1) in excess of 21/2 percent of the school district
general fund budget may count towards the amount of funds required to
be contributed by a school district in order to receive
apportionments from the State School Deferred Maintenance Fund
pursuant to Section 17584 to the extent that those funds are used for
purposes that qualify for funding under that section.
(B) Notwithstanding subparagraph (A), for the 2004-05 fiscal year
only, an applicant school district shall deposit into the account
established pursuant to paragraph (1), no less than 2 percent of the
total general fund expenditures of the school district, including
other financing uses, for the fiscal year. The annual deposit to the
account in excess of 11/2 percent of the school district general fund
budget for the 2004-05 fiscal year may count towards the amount that
a school district is required to contribute in order to receive
apportionments from the State School Deferred Maintenance Fund
pursuant to Section 17584 to the extent that those funds are used for
purposes that qualify for funding under that section.
(C) A school district contribution to the account may be provided
in lieu of meeting the ongoing maintenance requirements pursuant to
Section 17014 to the extent the funds are used for purposes
established in that section. A school district that serves as the
administrative unit for a special education local plan area may elect
to exclude from its total general fund expenditures, for purposes of
this paragraph, the distribution of revenues that are passed through
to participating members of the special education local plan area.
(D) This paragraph applies only to the following school districts:
(i) High school districts with an average daily attendance greater
than 300 pupils.
(ii) Elementary school districts with an average daily attendance
greater than 900 pupils.
(iii) Unified school districts with an average daily attendance
greater than 1,200 pupils.
(3) Certify that it has publicly approved an ongoing and major
maintenance plan that outlines the use of the funds deposited, or to
be deposited, pursuant to paragraph (2). The plan may provide that
the school district need not expend all of its annual allocation for
ongoing and major maintenance in the year in which it is deposited if
the cost of major maintenance requires that the allocation be
carried over into another fiscal year. However, any state funds
carried over into a subsequent year may not be counted toward the
annual minimum contribution by the school district. A plan developed
in compliance with this section shall be deemed to meet the
requirements of Section 17585.
(c) A school district to which paragraph (2) of subdivision (b)
does not apply shall certify to the board that it can reasonably
maintain its facilities with a lesser level of maintenance.
(d) For purposes of calculating a county office of education
requirement pursuant to this section, the 3 percent maintenance
requirement shall be based upon the county office of education
general fund less any restricted accounts.
(e) As a condition of participation in the school facilities
program or the receipt of funds pursuant to Section 17582, for a
fiscal year after the 2004-05 fiscal year, a school district shall
establish a facilities inspection system to ensure that each of its
schools is maintained in good repair.
(f) For purposes of this section, "good repair" has the same
meaning as specified in subdivision (d) of Section 17002.
SEC. 4. Section 17070.78 is added to the
Education Code , to read:
17070.78. As a condition for participation in the school
facilities program, a school district shall certify that it has a
long-range school facilities master plan and that the master plan is
consistent with the regional sustainable communities strategy
established pursuant to Section 65080 of the Government Code.
SEC. 4. SEC. 5. Section 17070.99 of
the Education Code is repealed.
SEC. 5. SEC. 6. Section 17071.15 is
added to the Education Code, to read:
17071.15. Notwithstanding Section 17071.10, the board shall
require a school district that elects to participate in the new
construction program to conduct an inventory of existing facilities
and submit this information to the board, as prescribed by the board,
for purposes of maintaining a statewide school facilities inventory.
SEC. 6. SEC. 7. Section 17071.33 of
the Education Code is repealed.
SEC. 7. SEC. 8. Section 17071.35 of
the Education Code is repealed.
SEC. 8. SEC. 9. Section 17071.40 of
the Education Code is repealed.
SEC. 9. SEC. 10. Section 17072.35 of
the Education Code is amended to read:
17072.35. (a) (1) A grant for new construction may be used for
any and all costs necessary to adequately house new pupils in any
approved project, and those costs may only include the cost of
design, engineering, testing, inspection, plan checking, construction
management, site acquisition and development, evaluation and
response action costs relating to hazardous substances at a new or
existing schoolsite, demolition, construction, acquisition and
installation of portable classrooms, landscaping, necessary utility
costs, utility connections and other fees, equipment including
telecommunication equipment to increase school security, furnishings,
and the upgrading of electrical systems or the wiring or cabling of
classrooms in order to accommodate educational technology. A grant
for new construction may also be used to acquire an existing
government or privately owned building, or a privately financed
school building, and for the necessary costs of converting the
government or privately owned building for public school use. A grant
for new construction may also be used for the costs of designs and
materials that promote the efficient use of energy and water, the
maximum use of natural lighting and indoor air quality, the use of
recycled materials and materials that emit a minimum of toxic
substances, the use of acoustics conducive to teaching and learning,
and other characteristics of high performance
high-performance schools. A grant for new construction may be
used for seismic mitigation purposes and for related design, study,
and testing costs.
(2) An applicant who receives a new construction grant shall
ensure that the project incorporates designs and materials that
promote the efficient use of energy and water, the maximum use of
natural lighting and indoor air quality, the use of recycled
materials and materials that emit a minimum of toxic substances, the
use of acoustics conducive to teaching and learning, and other
characteristics of high performance
high-performance schools.
(b) In the development of guidelines and regulations, the board
shall provide a school district with maximum flexibility in the
design and new construction of school facilities.
SEC. 10. SEC. 11. 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. These
recommendations shall propose revisions to any regulations that limit
the ability of school districts to use new construction grants to
construct instructional space approved by the State Department of
Education. The proposed revisions shall ensure that a school district
has the ability to design a facility that provides a flexible
learning environment, provides for the integration and use of
technology, and serves as an instructional space and learning
environment that supports and enhances the educational delivery
process.
SEC. 11. SEC. 12. Section 17073.16
is added to the Education Code, to read:
17073.16. The board shall require a school district that elects
to participate in the modernization program to conduct an inventory
of existing facilities and submit this information to the board, as
prescribed by the board, for purposes of maintaining a statewide
school facilities inventory.
SEC. 12. SEC. 13. Section 17074.25
of the Education Code is amended to read:
17074.25. (a) (1) A modernization apportionment may be used for
an improvement to extend the useful life of, or to enhance the
physical environment of, the school. The improvement may only include
the cost of design, engineering, testing, inspection, plan checking,
construction management, demolition, construction, the replacement
of portable classrooms, necessary utility costs, utility connection
and other fees, the purchase and installation of air-conditioning
equipment and insulation materials and related costs, furniture and
equipment, including telecommunication equipment to increase school
security, fire safety improvements, playground safety improvements,
the identification, assessment, or abatement of hazardous asbestos,
seismic safety improvements, and the upgrading of electrical systems
or the wiring or cabling of classrooms in order to accommodate
educational technology. A modernization grant may not be used for
costs associated with acquisition and development of real property or
for routine maintenance and repair.
(2) A modernization apportionment may also be used for either of
the following:
(A) The cost of designs and materials that promote the efficient
use of energy and water, the maximum use of natural lighting and
indoor air quality, the use of recycled materials and materials that
emit a minimum of toxic substances, the use of acoustics conducive to
teaching and learning, and other characteristics of high-performance
schools.
(B) Seismic mitigation purposes and related design, study, and
testing costs.
(3) An applicant that receives a modernization apportionment shall
ensure that the project incorporates designs and materials that
promote the efficient use of energy and water, the maximum use of
natural lighting and indoor air quality, the use of recycled
materials and materials that emit a minimum of toxic substances, the
use of acoustics conducive to teaching and learning, and other
characteristics of high-performance schools.
(b) In the development of guidelines and regulations, the board
shall provide a school district with maximum flexibility in the
design and modernization of school facilities.
(c) (1) A modernization apportionment may also be used to demolish
and construct a building or buildings on an existing schoolsite if
the total cost of providing a new school building, including land, on
a new site would not protect the economic interest of the state and
school district.
(2) A project deemed to meet the requirements of paragraph (1)
shall be eligible for a grant equal to the grant provided under
Section 17072.10.
(d) The board shall establish additional requirements it deems
necessary to ensure that the economic interests of the state and the
educational interests of the children of the state are protected.
SEC. 13. SEC. 14. 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. 15. Section 17077.42 of the
Education Code is amended to read:
17077.42. In order to be approved for a grant under this article,
the applicant school district shall demonstrate that it
has complied with all of the following:
(a) The school district has entered into a joint-use agreement
with a governmental agency, public community college, public college
or public university, or a nonprofit organization approved by the
board.
(b) The joint-use agreement specifies the method of sharing
capital and operating costs, specifies relative responsibilities for
the operation and staffing of the facility, and specifies the manner
in which the safety of the pupils will be ensured.
(c) The joint-use agreement specifies the amount of the
contribution to be made by the school district and the joint-use
partner toward the 50-percent local share of eligible project costs.
The contribution made by a joint-use partner shall be no less than 25
percent of eligible project costs, unless the
either of the following conditions applies:
(1) The school district has
passed a local bond which that
specifies that proceeds of sale of the bonds are to be used for the
joint-use project, in which case the school district may opt to
provide up to the full 50-percent local share of eligible costs.
(2) The joint-use agreement specifies that the
joint-use partner will provide 100 percent of the operational costs
for the joint-use project for a term of no less than 10 years.
(d) The school district demonstrates that the facility will be
used to the maximum extent possible for both school and community
purposes, or both school and higher education purposes, as
applicable.
(e) (1) The project application qualifies for funding under
paragraph (1) of subdivision (b) of Section 17077.40 and the school
district has received all approvals necessary for apportionment under
this chapter.
(2) The project qualifies for funding under paragraph (2) or (3)
of subdivision (b) of Section 17077.40 and the school district has
completed preliminary plans for the project and has received State
Department of Education approval of the plans.
SEC. 14. SEC. 16. Section 17254 is
added to the Education Code, to read:
17254. (a) The State Department of Education, the Division of the
State Architect, the Office of Public School Construction, and the
Department of Toxic Substances Control shall convene for purposes of
developing an interagency plan to streamline the school facility
construction application, review, and audit processes in order to
reduce the time and improve the efficiency of the school facilities
construction process.
(b) The interagency plan developed pursuant to subdivision (a)
shall identify a single entity within the State Department of
Education to act as a full-service agency and to assist school
districts in navigating the school facilities process. The
interagency plan shall be submitted to the Legislature, in
accordance with Section 9795 of the Government Code, on or before
July 1, 2017. 2016.
(c) It is the intent of the Legislature that operative regulatory
language adopted by the State Allocation Board before the effective
date of this section be reviewed and revised before July 1, 2016, to
ensure that the School Facility Program is being implemented in a
manner that reduces duplicative processes for the review, approval,
and audit of school facility new construction and modernization
projects.
(d) This section shall remain in effect only until July 1, 2021,
and as of that date is repealed, unless a later enacted statute, that
is enacted before July 1, 2021, deletes or extends that date.
SEC. 15. SEC. 17. Section 17592.70
of the Education Code is amended to read:
17592.70. (a) There is hereby established the School Facilities
Needs Assessment Grant Program with the purpose to provide for a
one-time comprehensive assessment of school facilities
facility needs. The grant program shall be
administered by the State Allocation Board.
(b) (1) The grants shall be awarded to school districts on behalf
of schoolsites ranked in deciles 1 to 3, inclusive, on the Academic
Performance Index (API), pursuant to Section 52056, based on the 2003
base API score for each school newly constructed prior to January 1,
2000.
(2) For purposes of this section, schools ranked in deciles 1 to
3, inclusive, on the 2003 base API shall include any schools
determined by the department to meet either of the following:
(A) The school meets all of the following criteria:
(i) Does not have a valid base API score for 2003.
(ii) Is operating in fiscal year 2004-05
the 2004-05 fiscal year and was operating in fiscal
year 2003-04 the 2003-04 fiscal year during the
Standardized Testing and Reporting (STAR) Program testing period.
(iii) Has a valid base API score for 2002 that was ranked in
deciles 1 to 3, inclusive, in that year.
(B) The school has an estimated base API score for 2003 that would
be in deciles 1 to 3, inclusive.
(3) The department shall estimate an API score for any school
meeting the criteria of clauses (i) and (ii) of subparagraph (A) of
paragraph (2) and not meeting the criteria of clause (iii) of
subparagraph (A) of paragraph (2), using available testing scores and
any weighting or corrective factors it deems appropriate. The
department shall provide those API scores to the Office of Public
School Construction and post them on its Internet Web site within 30
days of the enactment of this section.
(4) For purposes of this section, schools ranked in deciles 1 to
3, inclusive, on the 2003 base API shall exclude any schools
determined by the department to be operated by county offices of
education pursuant to Section 56140.
(c) The board shall allocate funds pursuant to subdivision (b) to
school districts with jurisdiction over eligible schoolsites, based
on ten dollars ($10) per pupil enrolled in the eligible school as of
October 2003, with a minimum allocation of seven thousand five
hundred dollars ($7,500) for each schoolsite.
(d) As a condition of receiving funds pursuant to this section,
school districts shall do all of the following:
(1) Use the funds to develop a comprehensive needs assessment of
all schoolsites eligible for grants pursuant to subdivision (b). The
assessment shall contain, at a minimum, all of the following
information for each schoolsite:
(A) The year each building that is currently used for
instructional purposes was constructed.
(B) The year, if any, each building that is currently used for
instructional purposes was last modernized.
(C) The pupil capacity of the school.
(D) The number of pupils enrolled in the school.
(E) The density of the school campus measured in pupils per acre.
(F) The total number of classrooms at the school.
(G) The age and number of portable classrooms at the school.
(H) Whether the school is operating on a multitrack, year-round
calendar, and, if so, what type.
(I) Whether the school has a cafeteria, or an auditorium or other
space used for pupil eating and not for class instruction.
(J) The useful life remaining of all major building systems for
each structure housing instructional space, including, but not
limited to, sewer, water, gas, electrical, roofing, and fire and life
safety protection.
(K) The estimated costs for five years necessary to maintain
functionality of each instructional space to maintain health, safety,
and a suitable learning environment, as applicable, including
classroom, counseling areas, administrative space, libraries,
gymnasiums, multipurpose and dining space, and the accessibility to
those spaces.
(L) A list of necessary repairs.
(2) Use the data currently filed with the state as part of the
process of applying for and obtaining modernization or construction
funds for school facilities, or information that is available in the
California Basic Education Data System for the element required in
subparagraphs (D), (E), (F), and (G) of paragraph (1).
(3) Use the assessment as the baseline for the facilities
inspection system required pursuant to subdivision (d) of Section
17070.75.
(4) Provide the results of the assessment to the Office of Public
School Construction, including a report on the expenditures made in
performing the assessment. It is the intent of the Legislature that
the assessments be completed as soon as possible, but not later than
January 1, 2006.
(5) If a school district does not need the full amount of the
allocation it receives pursuant to this section, the school district
shall expend the remaining funds for making facilities repairs
identified in its needs assessment. The school district shall report
to the Office of Public School Construction on the repairs completed
pursuant to this paragraph and the cost of the repairs.
(6) Submit to the Office of Public School Construction an interim
report regarding the progress made by the school district in
completing the assessments of all eligible schools.
SEC. 16. SEC. 18. Part 70
(commencing with Section 101100) is added to Division 14 of Title 3
of the Education Code, to read:
PART 70. KINDERGARTEN-UNIVERSITY
KINDERGARTEN THROUGH GRADE 12 PUBLIC EDUCATION FACILITIES BOND
ACT OF 2016
CHAPTER 1. GENERAL
101100. This part shall be known, and may be cited, as the
Kindergarten-University Kindergarten Through
Grade 12 Public Education Facilities Bond Act of 2016.
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 ____ dollars ($____),
not including the amount of any refunding bonds issued in accordance
with Sections 101130, 101139, and 101159,
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 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
GRADE 12
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 2016
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 2016 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 2016 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 ____ dollars ($____) for new construction of
school facilities of applicant school districts under Chapter 12.5
(commencing with Section 17070.10) of Part 10 of Division 1 of Title
1.
(2) The amount of ____ dollars ($____) 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.
(3) Of the amount allocated in this subdivision, up to 5 percent
shall be available for providing 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.
(b) School districts may use funds allocated pursuant to paragraph
(2) 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.
101113. The board shall assign priority for funding under this
chapter to applicant school districts that demonstrate participation
in a community-based effort to coordinate educational, developmental,
family, health, and other comprehensive services by engaging in
public and private partnerships with local public entities and other
nonprofit or private community partners. Criteria that demonstrate
this participation shall include all of the following:
(a) Institutionalized structures for cross-agency collaboration,
including, but not limited to, memoranda of understanding to
coordinate activities and services.
(b) Agreements for joint use and operations of school facilities
, in accordance with the requirements of subdivision (c) of
Section 17077.42, that provide for extended hours of use for
pupils, families, and the community, integration of libraries, early
childhood education, child care centers, senior centers, outdoor
recreation or environmental education, arts education, and career
technical education and adult education offerings for pupils and
community members.
(c) Participation in the State Community Schools Network.
(d) Participation in technical assistance and training, including
professional development, for full-service community schools.
(e) Certification that the district's school facilities master
plan is consistent with the regional sustainable communities strategy
established pursuant to Section 65080 of the Government Code.
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 101100),
bonds in the amount of ____ dollars ($____), 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 on the committee
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 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 advisor 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 2016 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 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 2016 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 2016 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 2016 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 Facilities Program
Provisions
101133. (a) From the proceeds of bonds issued and sold pursuant
to Article 3 (commencing with Section 101134), the sum of ____
dollars ($____) shall be deposited in the 2016 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 Facilities 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 ____ dollars ($____), 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 regarding inclusion of facilities for
intersegmental use 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 purposes of the State General Obligation Bond Law, each
state agency administering an appropriation of the 2016 California
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 that 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 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 2016 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 2016 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 2016 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. Facilities 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 ____
dollars ($____) shall be deposited in the 2016 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. Facilities 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 ____
dollars ($____) shall be deposited in the 2016 University Capital
Outlay Bond Fund for the purposes of this article. When appropriated,
these funds shall be available for expenditure for the purposes of
this article.
(b) The purposes of this article include assisting in meeting the
capital outlay financing needs of the California State University.
(c) Proceeds from the sale of bonds issued and sold for the
purposes of this article may be used to fund construction on existing
campuses, including the construction of buildings and the
acquisition of related fixtures, construction of facilities that may
be used by more than one segment of public higher education
(intersegmental), the renovation and reconstruction of facilities,
site acquisition, the equipping of new, renovated, or reconstructed
facilities, which equipment shall have an average useful life of 10
years; and to provide funds for the payment of preconstruction costs,
including, but not limited to, preliminary plans and working
drawings for facilities of the California State University.
Article 4. University Facilities Fiscal Provisions
101150. (a) Of the total amount of bonds authorized to be issued
and sold pursuant to Chapter 1 (commencing with Section 101100),
bonds in the amount of ____ dollars ($____), 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 regarding inclusion
of facilities for intersegmental use 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 purposes of the State General Obligation Bond Law, each
state agency administering an appropriation of the 2016 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 that 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 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 2016 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 2016 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. 17. SEC. 19. The Secretary of
State shall submit Section 16 18 of
this act to the voters at the November 8, 2016, statewide general
election.
SEC. 18. SEC. 20. 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. 19. SEC. 21. Sections 1 to
13, 15, inclusive, and Sections
15 and 16 17 and 18 of this act shall
become operative only if the voters approve the
Kindergarten-University Kindergarten Through Grade 12
Public Education Facilities Bond Act of 2016, as set forth in
Section 16 18 of this act.