BILL NUMBER: AB 127 ENROLLED
BILL TEXT
PASSED THE ASSEMBLY MAY 5, 2006
PASSED THE SENATE MAY 4, 2006
AMENDED IN SENATE MAY 4, 2006
AMENDED IN SENATE JULY 6, 2005
INTRODUCED BY Assembly Member Nunez and Senator Perata
JANUARY 13, 2005
An act to amend Sections 17070.40, 17072.35, 17075.10, 17078.52,
17078.53, 17078.54, 17078.56, 17078.58, 17261, and 81130.3 of, to add
Sections 17070.96, 17072.11, and 81052 to, to add Article 13
(commencing with Section 17078.70) and Article 14 (commencing with
Section 17079) to Chapter 12.5 of Part 10 of, and to add Part 69
(commencing with Section 101000) to, the Education Code, to amend
Section 65997 of the Government Code, to amend Section 4 of Chapter
421 of the Statutes of 2001, and to amend Section 4 of Chapter 637 of
the Statutes of 2002, relating to education facilities, 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, and declaring the urgency thereof, to
take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 127, Nunez Education facilities: Kindergarten-University
Public Education Facilities Bond Act of 2006.
(1) 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.
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 enact the Kindergarten-University Public Education
Facilities Bond Act of 2006 to authorize $10,416,000,000 of state
general obligation bonds to provide aid to school districts, county
superintendents of schools, county boards of education, 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 bond act would become operative only if approved by the voters
at the November 7, 2006, statewide general election, and would
provide for its submission to the voters at that election.
The bill would also submit to the voters for approval an
authorization to use the proceeds of any bond act, approved on or
before January 1, 2006, that are designated for joint-use facilities
to be used for other related school facilities projects.
(2) This bill would specify that certain provisions of the bill
shall become operative only if the Kindergarten-University Public
Education Facilities Bond Act of 2006 is approved by the voters at
the November 7, 2006, statewide general election.
(3) The bill would make conforming, technical changes in related
provisions of existing law.
(4) The bill would declare that it is to take effect immediately
as an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. 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.
SEC. 2. Section 17070.96 is added to the Education Code, to read:
17070.96. As part of its application for funding under this
chapter, a school district shall certify that it has considered the
feasibility of using designs and materials for the construction or
modernization project 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.
SEC. 3. Section 17072.11 is added to the Education Code, to read:
17072.11. (a) All of the following shall apply on and after July
1, 2006, until January 1, 2008:
(1) The per-unhoused-pupil grant eligibility determined under
paragraphs (1) and (2) of subdivision (a) of Section 17072.10 shall
be increased by 7 percent.
(2) The per-unhoused-pupil grant eligibility determined under
paragraph (3) of subdivision (a) of Section 17072.10 shall be
increased by 4 percent.
(3) The board shall conduct an analysis of the relationship
between the per-unhoused-pupil grant eligibility determined under
this article and the per-pupil cost of new school construction for
elementary, middle, and high school pupils.
(b) On or after January 1, 2008, the board shall increase or
decrease the per-unhoused-pupil grant eligibility by amounts it deems
necessary to cause the grants to correspond to costs of new school
construction, provided that the increase in any fiscal year pursuant
to this section shall not exceed 6 percent.
SEC. 4. Section 17072.35 of the Education Code is amended to read:
17072.35. 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 schools.
SEC. 5. Section 17075.10 of the Education Code is amended to read:
17075.10. (a) A school district may apply for hardship assistance
in cases of extraordinary circumstances. Extraordinary
circumstances may include, but are not limited to, the need to
repair, reconstruct, or replace the most vulnerable school facilities
that are a Category 2 building, as defined in the report submitted
pursuant to Section 17317, determined by the department to pose an
unacceptable risk of injury to its occupants in the event of a
seismic event.
(b) A school district applying for hardship state funding under
this article shall comply with either paragraph (1) or (2).
(1) Demonstrate both of the following:
(A) That due to extreme financial, disaster-related, or other
hardship the school district has unmet need for pupil housing.
(B) That the school district is not financially capable of
providing the matching funds otherwise required for state
participation, that the district has made all reasonable efforts to
impose all levels of local debt capacity and development fees, and
that the school district is, therefore, unable to participate in the
program pursuant to this chapter except as set forth in this article.
(2) Demonstrate that due to unusual circumstances that are beyond
the control of the district, excessive costs need to be incurred in
the construction of school facilities. Funds for the purpose of
seismic mitigation work or facility replacement pursuant to this
section shall be allocated by the board on a 50 percent state share
basis from any funds reserved for that purpose in any bond approved
by the voters after January 1, 2006. If the board determines that the
seismic mitigation work of a school building would require funding
that is greater than 50 percent of the funds required to construct a
new facility, the school district shall be eligible for funding to
construct a new facility under this chapter.
(c) The board shall review the increased costs that may be
uniquely associated with urban construction and shall adjust the
per-pupil grant for new construction or modernization hardship
applications as necessary to accommodate those costs. The board shall
adopt regulations setting forth the standards, methodology, and a
schedule of allowable adjustments, for the urban adjustment factor
established pursuant to this subdivision.
SEC. 6. Section 17078.52 of the Education Code is amended to read:
17078.52. (a) There is hereby established the Charter Schools
Facilities Program to provide funding to qualifying entities for the
purpose of establishing school facilities for charter school pupils.
(b) (1) The 2002 Charter School Facilities Account is hereby
established within the 2002 State School Facilities Fund established
pursuant to subdivision (b) of Section 17070.40. The proceeds of
bonds, as set forth in subparagraph (A) of paragraph (1) of
subdivision (a) of Section 100620, shall be deposited into the 2002
Charter School Facilities Account for the purposes of this article.
Notwithstanding Section 13340 of the Government Code, funds deposited
into the account are hereby continuously appropriated for the
purposes of this article.
(2) The 2004 Charter School Facilities Account is hereby
established within the 2004 State School Facilities Fund established
pursuant to subdivision (c) of Section 17070.40. The proceeds of
bonds, as set forth in subparagraph (A) of paragraph (1) of
subdivision (a) of Section 100820, if approved by the voters, shall
be deposited into the 2004 Charter School Facilities Account for the
purposes of this article. Notwithstanding Section 13340 of the
Government Code, funds deposited into the account are hereby
continuously appropriated for the purposes of this article.
(3) The 2006 Charter School Facilities Account is hereby
established within the 2006 State School Facilities Fund established
pursuant to subdivision (d) of Section 17070.40. The proceeds of
bonds, as set forth in paragraph (2) of subdivision (a) of Section
101012, if approved by the voters, shall be deposited into the 2006
Charter School Facilities Account for the purposes of this article.
Notwithstanding Section 13340 of the Government Code, funds deposited
into the account are hereby continuously appropriated for the
purposes of this article.
(c) As used in this article, the following terms have the
following meanings:
(1) "Authority" means the California School Finance Authority
established pursuant to Section 17172.
(2) "Account" means the pertinent account established under
subdivision (b).
(3) "Preliminary apportionment" means an apportionment made for
eligible applicants under this article in advance of full compliance
with all of the application requirements otherwise required for an
apportionment pursuant to this chapter. The process for making
preliminary apportionments under this article shall be substantially
identical to the process established for critically overcrowded
schools pursuant to Sections 17078.22 to 17078.30, inclusive.
(4) "Financially sound" means a charter school that has
demonstrated, over a period of time determined by the authority, but
not less than 24 months immediately preceding the submission of the
application, that it has operated as a financially capable concern in
California, as measured by criteria established by the authority. A
charter school that cannot demonstrate that it has been a financially
capable concern for at least 24 months immediately preceding the
submission of the application, due solely to not having operated as a
charter school for at least 24 months, may meet this 24-month
requirement if the charter school is managed by staff who have at
least 24 months of documented experience, as measured by criteria
established by the authority and the charter school has an
educational plan, financial resources, facilities expertise,
management expertise, and has been a financially capable concern for
at least 24 months, as established by the authority.
(d) The board shall, from time to time, transfer funds within the
account to the California School Finance Authority Fund for the
purposes of this article pursuant to the request of the authority as
set forth in this article.
SEC. 7. Section 17078.53 of the Education Code is amended to read:
17078.53. (a) The initial preliminary applications for projects
to be funded pursuant to this article shall be submitted to the board
by March 31, 2003.Thereafter, the board may establish subsequent
application periods as needed.
(b) Preliminary applications may be submitted by eligible
applicants as set forth in this article by either of the following:
(1) A school district on behalf of a charter school that is
physically located within the geographical jurisdiction of the school
district.
(2) A charter school on its own behalf if the charter school has
notified both the superintendent and the governing board of the
school district in which it is physically located of its intent to do
so in writing at least 30 days prior to submission of the
preliminary application.
(c) A preliminary application shall demonstrate either of the
following:
(1) That a charter petition for the school for which the
application is submitted has been granted by the appropriate
chartering entity prior to the application deadline determined by the
board.
(2) That an already existing charter has been amended to include
the school for which the application is submitted and approved by the
appropriate chartering entity prior to the deadline determined by
the board.
(d) A preliminary application shall include either of the
following:
(1) For a preliminary application submitted pursuant to paragraph
(1) of subdivision (b), the number of unhoused pupils determined
pursuant to Article 3 (commencing with Section 17071.75) that will be
housed by the project for which the preliminary application has been
submitted.
(2) For a preliminary application submitted pursuant to paragraph
(2) of subdivision (b), a certification from the governing board of
the district within which the charter school is physically located of
the number of unhoused pupils for that district determined pursuant
to Article 3 (commencing with Section 17071.75) that will be housed
by the project for which the preliminary application has been
submitted.
(e) Prior to submitting a preliminary application, the school
district and charter school shall consider existing school district
facilities in accordance with Section 47614.
(f) The board, after consideration of the recommendations of the
authority regarding whether a charter school is financially sound,
shall approve the preliminary application and shall make the
preliminary apportionment for funding pursuant to this article.
(g) (1) The board shall establish a process to ensure that pupil
attendance in a charter school that is physically located within the
geographical jurisdiction of a school district is counted as
per-pupil eligibility for that school district and to ensure that the
same per-pupil attendance is not so counted for any other school
district or other applicant under this chapter.
(2) (A) Except as provided pursuant to subparagraph (B) and
notwithstanding subdivision (b) of Section 17071.75, the number of
pupils for which facilities are provided under this article shall not
be included in the sum determined under subdivision (b) of Section
17071.75.
(B) The number of unhoused pupils determined pursuant to
subdivision (d) that will be housed by the project for which a
preliminary application has been submitted shall be included in the
sum determined under subdivision (b) of Section 17071.75.
(h) The board shall establish a process to be used for release of
funds for approved projects pursuant to this article. Notwithstanding
Section 17072.30, the board may provide for the release of planning
and site acquisition funds prior to the approval of the project by
the Department of General Services pursuant to the Field Act, as
defined in Section 17281.
SEC. 8. Section 17078.54 of the Education Code is amended to read:
17078.54. (a) An eligible project under this article shall
include funding, as permitted by this chapter, for new construction
or rehabilitation of a school facility for charter school pupils, as
set forth in this article. A project may include, but is not limited
to, the cost of retrofitting an existing building for charter school
purposes, purchasing a building, or retrofitting a building that has
been purchased by the charter school, if those costs have not been
previously funded under this chapter, but may not exceed the amounts
set forth in subdivision (b). Existing school buildings made
available by a school district that will be rehabilitated for the
purposes of this article are not subject to Article 6 (commencing
with Section 17073.10). An allocation of funds shall not be made for
a school facility that is less than 15 years old.
(b) The maximum amount of the funding pursuant to this article
shall be determined by calculating the charter school's per-pupil
grant amount plus other allowable costs as set forth in this chapter.
Funding shall be provided by the authority for new facility
construction or rehabilitation as set forth in Section 17078.58.
(c) To be funded under this article, a project shall comply with
all of the following:
(1) It shall meet all the requirements regarding public school
construction, plan approvals, toxic substance review, site selection,
and site approval, as would any noncharter school project of a
school district under this chapter, including, but not limited to,
regulations adopted by the State Architect pursuant to Section
17280.5 relating to the retrofitting of existing buildings, as
applicable.
(2) Notwithstanding any provision of law to the contrary,
including, but not limited to paragraph (1), the board, after
consulting with the relevant regulatory agencies, shall, to the
extent feasible, adopt regulations establishing a process for
projects to be subject to a streamlined method for obtaining
regulatory approvals for all requirements described in paragraph (1),
except for the requirements of the Field Act as defined in Section
17281 which shall be complied with in the same manner as any other
project under this chapter.
(3) The board shall fund only new construction to be physically
located within the geographical jurisdiction of a school district.
(d) Facilities funded pursuant to this article shall have a 50
percent local share matching obligation that may be paid by the
applicant through lease payments in lieu of the matching share, or as
otherwise set forth in this article, including, but not limited to,
Section 17078.58.
(e) The authority may charge its administrative costs against the
respective 2002, 2004, or 2006 Charter School Facilities Account,
which shall be subject to the approval of the Department of Finance
and which may not exceed 2.5 percent of the account.
SEC. 9. Section 17078.56 of the Education Code is amended to read:
17078.56. (a) The board, in consultation with the authority,
shall approve projects pursuant to this article as otherwise set
forth in this chapter, and shall make preliminary apportionments only
to financially sound applicants in accordance with all of the
following criteria:
(1) The board shall seek to ensure that, when considered as a
whole, the applications approved pursuant to this article are fairly
representative of the various geographical regions of the state.
(2) The board shall seek to ensure that, when considered as a
whole, the applications approved pursuant to this article are fairly
representative of urban, rural, and suburban regions of the state.
(3) The board shall seek to ensure that, when considered as a
whole, the applications approved pursuant to this article are fairly
representative of large, medium, and small charter schools throughout
the state.
(4) The board shall seek to ensure that, when considered as a
whole, the applications approved pursuant to this article are fairly
representative of the various grade levels of pupils served by
charter school applicants throughout the state.
(b) While ensuring that the requirements of subdivision (a) are
met when considering all approved projects under this article as a
whole, the board shall, within each factor of the criteria set forth
in subdivision (a), give a preference to charter schools in
overcrowded school districts, charter schools in low-income areas,
charter schools operated by not-for-profit entities, and charter
schools that utilize existing school district facilities.
SEC. 10. Section 17078.58 of the Education Code is amended to
read:
17078.58. (a) Funding granted pursuant to this article may not
exceed 100 percent of the total allowable project costs as determined
by calculating double the per-pupil grant eligibility as set forth
in Section 17072.10, and subdivision (e) of Section 17078.53, plus
100 percent of all other allowable construction project costs, as
appropriate to the project, that would otherwise be available to
school district projects as set forth in this chapter. Funding
granted for the purposes of rehabilitating buildings under Section
17078.54 shall be limited to the costs necessary to comply with
subdivision (c) of Section 17078.54, and shall not exceed the maximum
costs that would otherwise be allowable for a new construction
project funded under this article.
(b) The local share equivalent shall be collected in the form of
lease payments or otherwise as set forth in this article.
(c) Lease payments in lieu of local share payments, and any other
local share payments made pursuant to this article, shall be made to
the board for deposit into the respective 2002, 2004, or 2006 Charter
School Facilities Account. Funds deposited into the account pursuant
to this section may be used by the board only for a purpose related
to charter school facilities pursuant to this article.
(d) When a preliminary apportionment under this article is
converted to a final apportionment, any funds not needed for the
final apportionment shall remain in the 2002, 2004, or 2006 Charter
School Facilities Account for use by the board for any purpose
related to charter school facilities pursuant to this article.
SEC. 11. Article 13 (commencing with Section 17078.70) is added to
Chapter 12.5 of Part 10 of the Education Code, to read:
Article 13. Career Technical Education Facilities Program
17078.70. (a) For the purposes of this article, "reconfiguration"
means any modification of a structure of any age that will enhance
the educational opportunities for pupils in existing middle and high
schools in order to provide them with the skills and knowledge
necessary for high-demand technical careers.
(b) "Reconfiguration" may include limited new construction
necessary to accommodate the reconfiguration.
17078.72. (a) The Career Technical Education Facilities Program
is hereby established to provide funding to qualifying local
educational agencies for the purpose of constructing new facilities
or reconfiguring existing facilities, including, but not limited to,
purchasing equipment with an average useful life expectancy of at
least 10 years, to enhance educational opportunities for pupils in
existing high schools in order to provide them with the skills and
knowledge necessary for the high-demand technical careers of today
and tomorrow.
(b) The State Department of Education, in cooperation with the
Chancellor's Office of the Community Colleges, the Labor and
Workforce Development Agency, and industry groups, shall develop
criteria and pupil outcome measures to evaluate the program. The
criteria shall ensure equity, program relevance to industry needs,
and articulation with more advanced coursework at the partnering
community colleges or private institutions.
(c) The program shall be based on grant applications administered
by the board.
(d) Grants shall be allocated on a per-square-foot basis for the
applicable type of construction proposed or deemed necessary by the
board consistent with the approved application for the project.
(e) New construction grants shall not exceed three million dollars
($3,000,000) per project per schoolsite, inclusive of equipment, and
shall only be allocated to comprehensive high schools that have an
active Career Technical Advisory Committee pursuant to Section 8070,
in either of the following methods:
(1) For a stand-alone project on a per-square-foot basis for
the applicable type of construction proposed, based on the criteria
established pursuant to subdivision (b), consistent with the approved
application for the project.
(2) For new school projects, as a supplement to the per pupil
allocation pursuant to Section 17072.10. The supplement is intended
to cover excess costs uniquely related to the facilities required to
provide the career technical education program or programs.
(f) Modernization grants shall not exceed one million five hundred
thousand dollars ($1,500,000) per project per schoolsite, inclusive
of equipment and may be awarded to comprehensive high schools or
joint power authorities currently operating career technical
education programs that have an active Career Technical Advisory
Committee pursuant to Section 8070 for the purpose of
reconfiguration. For comprehensive high schools, the grant shall be
supplemental to the per pupil allocation pursuant to Section
17074.10. The supplement is intended to cover excess costs uniquely
related to the facilities required to provide the career technical
education program or programs.
(g) (1) A school district shall contribute from local resources a
dollar amount that is equal to the amount of the grant of state funds
awarded under subdivisions (d), (e), and (f). The local contribution
may be provided by private industry groups, the school district, or
a joint powers authority.
(2) A school district shall not be required to demonstrate that it
has unhoused pupils or that a permanent school building is more than
25 years old in order to receive a grant under the program.
(h) The program shall allow the local contribution to be paid over
time should sufficient local funds not be immediately available. The
board may provide for a repayment schedule consistent with
subparagraphs (C) and (D) of paragraph (1) of subdivision (a) of
Section 17078.57. The board shall not waive the local contribution on
the basis of financial hardship or on any other basis.
(i) Applications shall meet the criteria developed under
subdivision (b) and shall require all of the following:
(1) A clear and comprehensive Career Technical Education plan for
each course of study applicable to the instructional space.
(2) Projections of pupil enrollment.
(3) Identification of feeder schools, industry partners, and
community colleges or other postsecondary schools participating in
the development, articulation, and review of the educational program.
(4) Evidence of approval of the plan by the entities listed in
paragraph (3).
(5) The method by which accountability for pupil enrollments and
outcomes will be maintained. Outcomes shall include, but are not
limited to, certificate completion, the successful entry of pupil to
employment in the applicable industry, and successful transition to
post-secondary institutions for work in the applicable industry or
other areas of study.
(6) Evidence of coordination with all feeder schools, middle
schools, and high schools within the area to ensure that the project
and programs complement career technical education offerings in the
area.
(7) Evidence that upon completion of the project the local
educational agency will meet all of its obligations under Section
51228 relating to career technical education.
(j) Applications shall give weight to the number of pupils
expected to attend, the cost per pupil, financial participation by
industry partners in the construction and equipping of the facility,
commitment to accountability for outcomes and participation, the
strength and relevance of the educational plans to the needs of
industry for qualified technical employees applicable to the economic
development needs of the region in which the project will be
located, and coordination and articulation with feeder schools, other
high schools, and community colleges.
(k) The Office of Public School Construction shall develop and the
board shall approve regulations to implement this article on or
before April 19, 2007, and the board may promulgate those regulations
first on an emergency basis, which shall be effective for no more
than 12 months, after which any permanent regulations shall be
promulgated in accordance with the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code).
SEC. 12. Article 14 (commencing with Section 17079) is added to
Chapter 12.5 of Part 10 of the Education Code, to read:
Article 14. Overcrowding Relief Grants
17079. (a) For purposes of this article, an eligible school is a
school for which the schoolsite pupil population density is equal to
or greater than 175 percent of the schoolsite pupil population
density recommended by the Superintendent as of January 1, 2006,
adjusted by the following factors:
(1) The density calculation shall be reduced to take into account
the additional pupil capacity created by multistory construction.
(2) The schoolsite pupil population density shall be reduced to
take into account approved new construction projects, including
projects approved pursuant to Article 11 (commencing with Section
17078.10).
(b) The board shall adopt regulations to determine the adjustments
set forth in paragraphs (1) and (2) of subdivision (a).
17079.10. (a) For purposes of this article, an eligible pupil is
a pupil who is housed in a portable classroom, except portable
classrooms used for purposes of the Class Size Reduction Program set
forth in Chapter 6.10 (commencing with Section 52120) of Part 28, at
an eligible school.
(b) The board shall apportion an overcrowding relief grant to
districts on behalf of each eligible pupil equal to the appropriate
per-unhoused-pupil grant amount pursuant to Section 17072.10. The
number of overcrowding relief grants apportioned shall be subject to
the following limitations:
(1) The number of grants apportioned on behalf of an eligible
school shall not exceed the number of pupils whose removal from the
pupil density calculation would reduce the density of the eligible
schoolsite to 150 percent of the schoolsite pupil population density
recommended by the Superintendent as of January 1, 2006.
(2) A district shall not receive more grants than the number of
pupils housed in portable classrooms that were included in the
initial new construction eligibility determination of the district
pursuant to Article 3 (commencing with Section 17071.75).
17079.20. (a) The board shall require that applications for
funding pursuant to this article be used for an equivalent number of
permanent new school construction classrooms to replace the portable
classrooms upon which the determination of the number of eligible
pupils is based. The board shall also require the application to
describe how the project will relieve overcrowding at the eligible
school.
(b) The board shall create a list of projects eligible for funding
and shall approve applications semiannually on a schedule determined
by the board.
(c) The board shall require that applicant school districts comply
with all of the same conditions otherwise required for new
construction funding pursuant to this chapter with the exception of
subdivision (b) of Section 17071.75.
(d) The board shall not apportion funds for a project pursuant to
this article any portion of which involves the construction,
acquisition, or transportation of portable classrooms for any school
in the school district.
(e) In the event the funding available to the board for purposes
of this article is less than the amount necessary to fund all
eligible applications, the board shall prioritize and fund the
projects on the basis of the pupil density of the eligible schools.
17079.30. (a) The board shall require both of the following as
conditions for receiving funding pursuant to this article:
(1) Within six months after the date of initial occupancy of the
permanent school facilities constructed pursuant to this article, the
school district shall remove from the eligible school, and remove
from service as classrooms in the district, the portable classrooms
used for determining the number of eligible pupils.
(2) The new school construction funding provided pursuant to this
article shall result in a reduction in the total number of portable
classrooms in the school district.
(b) This section does not preclude the school district from using
the portable classrooms removed from eligible schools for child care
or preschool programs, if those portable classrooms are not located
at an eligible school.
(c) This section does not apply to eligible schools operating on
double session schedules in an elementary school district in a county
of the second class, as set forth in Section 28023 of the Government
Code.
SEC. 13. Section 17261 of the Education Code is amended to read:
17261. The State Allocation Board shall obtain construction plans
for school buildings appropriate for school districts in various
climates and geographical conditions of the state. The plans shall be
composed of plans designed to meet the needs of school districts
requiring school buildings of various sizes. The plans may include
landscape suggestions. The plans may include designs 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.
SEC. 14. Section 81052 is added to the Education Code, to read:
81052. Each school building constructed, reconstructed, modified,
or expanded after July 1, 2006, on a community college campus shall
be built according to the Field Act, as defined in Section 81130.3,
or according to the California Building Standards Code, as adopted by
the California Building Standards Commission.
SEC. 15. Section 81130.3 of the Education Code is amended to read:
81130.3. This article, together with Article 3 (commencing with
Section 17280) and Article 6 (commencing with Section 17365) of
Chapter 3 of Part 10.5 and Article 3 (commencing with Section 81050),
shall be known and may be cited as the "Field Act."
SEC. 16. Part 69 (commencing with Section 101000) is added to the
Education Code, to read:
PART 69. KINDERGARTEN-UNIVERSITY PUBLIC EDUCATION FACILITIES
BOND ACT OF 2006
CHAPTER 1. General
101000. This part shall be known and may be cited as the
Kindergarten-University Public Education Facilities Bond Act of 2006.
101001. The incorporation of, or reference to, any provision of
California statutory law in this part includes all acts amendatory
thereof and supplementary thereto.
101002. (a) Bonds in the total amount of ten billion four hundred
sixteen million dollars ($10,416,000,000), not including the amount
of any refunding bonds issued in accordance with Sections 101030,
101039, and 101059, 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
Article 1. Kindergarten Through 12th Grade School Facilities
Program Provisions
101010. The proceeds of bonds issued and sold pursuant to Article
2 (commencing with Section 101020) shall be deposited in the 2006
State School Facilities Fund established in the State Treasury under
subdivision (d) of Section 17070.40 and shall be allocated by the
State Allocation Board pursuant to this chapter.
101011. All moneys deposited in the 2006 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), as set forth in Section 101012,
to provide funds to repay any money advanced or loaned to the 2006
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.
101012. (a) The proceeds from the sale of bonds, issued and sold
for the purposes of this chapter, shall be allocated in accordance
with the following schedule:
(1) The amount of one billion nine hundred million dollars
($1,900,000,000) for new construction of school facilities of
applicant school districts under Chapter 12.5 (commencing with
Section 17070.10) of Part 10. Of the amount allocated under this
paragraph, up to 10.5 percent shall be available for purposes of
seismic repair, reconstruction, or replacement, pursuant to Section
17075.10.
(2) The amount of five hundred million dollars ($500,000,000)
shall be available for providing school facilities to charter schools
pursuant to Article 12 (commencing with Section 17078.52) of Chapter
12.5 of Part 10.
(3) The amount of three billion three hundred million dollars
($3,300,000,000) for the modernization of school facilities pursuant
to Chapter 12.5 (commencing with Section 17070.10) of Part 10.
(4) The amount of five hundred million dollars ($500,000,000) for
the purposes set forth in Article 13 (commencing with Section
17078.70) of Chapter 12.5 of Part 10, relating to facilities for
career technical education programs.
(5) Of the amounts allocated under paragraphs (1) and (3), up to
two hundred million dollars ($200,000,000) for the purposes set forth
in Chapter 894 of the Statutes of 2004, relating to incentives for
the creation of smaller learning communities and small high schools.
(6) The amount of twenty-nine million dollars ($29,000,000) for
the purposes set forth in Article 10.6 (commencing with Section
17077.40) of Chapter 12.5 of Part 10, relating to joint use projects.
(7) The amount of one billion dollars ($1,000,000,000) shall be
available for providing new construction funding to severely
overcrowded schoolsites pursuant to Article 14 (commencing with
Section 17079) of Chapter 12.5 of Part 10.
(8) The amount of one hundred million dollars ($100,000,000) for
incentive grants to promote the use of designs and materials in new
construction and modernization projects that include the attributes
of high-performance schools, including, but not limited to, the
elements set forth in Section 17070.96, pursuant to regulations
adopted by the State Allocation Board.
(b) School districts may use funds allocated pursuant to paragraph
(3) of subdivision (a) only for one or more of the following
purposes in accordance with Chapter 12.5 (commencing with Section
17070.10) of Part 10:
(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.
(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 for funding classrooms for severely
handicapped pupils, or for funding classrooms for county community
school pupils.
(d) (1) The Legislature may amend this section to adjust the
funding amounts specified in paragraphs (1) to (8), inclusive, of
subdivision (a), only by either of the following methods:
(A) By a statute, passed in each house of the Legislature by
rollcall vote entered in the respective journals, by not less than
two-thirds of the membership in each house concurring, if the statute
is consistent with, and furthers the purposes of, this chapter.
(B) By a statute that becomes effective only when approved by the
voters.
(2) Amendments pursuant to this subdivision may adjust the amounts
to be expended pursuant to paragraphs (1) to (8), inclusive, of
subdivision (a), but may not increase or decrease the total amount to
be expended pursuant to that subdivision.
(e) Funds available pursuant to this section may be used for
acquisition of school facilities authorized pursuant to Section
17280.5.
Article 2. Kindergarten Through 12th Grade School Facilities
Fiscal Provisions
101020. (a) Of the total amount of bonds authorized to be issued
and sold pursuant to Chapter 1 (commencing with Section 101000),
bonds in the amount of seven billion three hundred twenty-nine
million dollars ($7,329,000,000) not including the amount of any
refunding bonds issued in accordance with Section 101030, 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.
101021. 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 thereon 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 the 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
adviser of the committee.
101022. (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 2006 State School Facilities Fund.
101023. (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 101011 and 101012.
101024. 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.
101025. 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 101028, appropriated
without regard to fiscal years.
101026. 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.
101027. 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.
101028. For the 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 2006 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.
101029. All money deposited in the 2006 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.
101030. 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.
101031. 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
101032. (a) The 2006 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 Program Provisions
101033. (a) From the proceeds of bonds issued and sold pursuant
to Article 3 (commencing with Section 101034), the sum of one billion
five hundred seven million dollars ($1,507,000,000) shall be
deposited in the 2006 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 Fiscal Provisions
101034. (a) Of the total amount of bonds authorized to be issued
and sold pursuant to Chapter 1 (commencing with Section 101000),
bonds in the total amount of one billion five hundred seven million
dollars ($1,507,000,000), not including the amount of any refunding
bonds issued in accordance with Section 101039, 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 15th of each year, those
entities report their findings 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.
101034.5. (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 the purposes of the State General Obligation Bond Law,
each state agency administering an appropriation of the 2006
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.
101035. 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.
101035.5. 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 which is necessary to collect that additional sum.
101036. 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 101037.5, appropriated
without regard to fiscal years.
101036.5. The board, as defined in subdivision (b) of Section
101034.5, 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 101034.5, 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.
101037. 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.
101037.5. (a) For the 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 2006 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.
101038. All money deposited in the 2006 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.
101039. 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.
101039.5. 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
101040. (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 2006 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. Program Provisions Applicable to the University of
California and the Hastings College of the Law
101041. (a) From the proceeds of bonds issued and sold pursuant
to Article 4 (commencing with Section 101050), the sum of eight
hundred ninety million dollars ($890,000,000) shall be deposited in
the 2006 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) Of the amount made available under subdivision (a), the amount
of two hundred million dollars ($200,000,000) shall be used for
capital improvements that expand and enhance medical education
programs with an emphasis on telemedicine aimed at developing
high-tech approaches to health care.
(d) 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. Program Provisions Applicable to the California
State University
101042. (a) From the proceeds of bonds issued and sold pursuant
to Article 4 (commencing with Section 101050), the sum of six hundred
ninety million dollars ($690,000,000) shall be deposited in the 2006
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 Fiscal Provisions
101050. (a) Of the total amount of bonds authorized to be issued
and sold pursuant to Chapter 1 (commencing with Section 101000),
bonds in the amount of one billion five hundred eighty million
dollars ($1,580,000,000), not including the amount of any refunding
bonds issued in accordance with Section 101059, 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 15th of
each year, those entities report their findings 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.
101051. (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 the purposes of the State General Obligation Bond Law,
each state agency administering an appropriation of the 2006
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.
101052. 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.
101053. 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 which is necessary to collect that additional sum.
101054. 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 101057, appropriated
without regard to fiscal years.
101055. The board, as defined in subdivision (b) of Section
101051, 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 101051, 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.
101056. 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.
101057. (a) For the 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 2006 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.
101058. All money deposited in the 2006 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.
101059. 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.
101060. 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. Section 65997 of the Government Code is amended to read:
65997. (a) The following provisions shall be the exclusive
methods of mitigating environmental effects related to the adequacy
of school facilities when considering the approval or the
establishment of conditions for the approval of a development
project, as defined in Section 17620 of the Education Code, pursuant
to Division 13 (commencing with Section 21000) of the Public
Resources Code:
(1) Chapter 12 (commencing with Section 17000) of, or Chapter 12.5
(commencing with Section 17070.10) of, Part 10 of the Education
Code.
(2) Chapter 14 (commencing with Section 17085) of Part 10 of the
Education Code.
(3) Chapter 18 (commencing with Section 17170) of Part 10 of the
Education Code.
(4) Article 2.5 (commencing with Section 17430) of Chapter 4 of
Part 10.5 of the Education Code.
(5) Section 17620 of the Education Code.
(6) Chapter 2.5 (commencing with Section 53311) of Division 2 of
Title 5.
(7) Chapter 4.7 (commencing with Section 65970) of Division 1 of
Title 7.
(b) A public agency may not, pursuant to Division 13 (commencing
with Section 21000) of the Public Resources Code or Division 2
(commencing with Section 66410) of this code, deny approval of a
project on the basis of the adequacy of school facilities.
(c) (1) This section shall become operative on or after any
statewide election in 2012, if a statewide general obligation bond
measure submitted for voter approval in 2012 or thereafter that
includes bond issuance authority to fund construction of kindergarten
and grades 1 to 12, inclusive, public school facilities is submitted
to the voters and fails to be approved.
(2) (A) This section shall become inoperative if subsequent to the
failure of a general obligation bond measure described in paragraph
(1) a statewide general bond measure as described in paragraph (1) is
approved by the voters.
(B) Thereafter, this section shall become operative if a statewide
general obligation bond measure submitted for voter approval that
includes bond issuance authority to fund construction of kindergarten
and grades 1 to 12, inclusive, public school facilities is submitted
to the voters and fails to be approved and shall become inoperative
if subsequent to the failure of the general obligation bond measure a
statewide bond measure as described in this subparagraph is approved
by the voters.
(d) Notwithstanding any other provision of law, a public agency
may deny or refuse to approve a legislative act involving, but not
limited to, the planning, use, or development of real property, on
the basis that school facilities are inadequate, except that a public
agency may not require the payment or satisfaction of a fee, charge,
dedication, or other financial requirement in excess of that levied
or imposed pursuant to Section 65995 and, if applicable, any amounts
specified in Sections 65995.5 or 65995.7.
SEC. 18. Section 4 of Chapter 421 of the Statutes of 2001 is
amended to read:
Sec. 4. This act shall remain in effect only until January 1,
2010, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2010, deletes or extends
that date.
SEC. 19. Section 4 of Chapter 637 of the Statutes of 2002 is
amended to read:
Sec. 4. This act shall remain in effect only until January 1,
2011, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2011, deletes or extends
that date.
SEC. 20. (a) Up to twenty-one million dollars ($21,000,000) of any
funds that are required to be made available for rehabilitation or
construction of joint-use facilities for public schools and that
result or are derived from the sale of bonds issued on or before
January 1, 2006, shall be transferred to the State Allocation Board
and may be apportioned by that board for the purposes of Article 10.6
(commencing with Section 17077.40) of Chapter 12.5 of Part 10 of the
Education Code.
(b) Any funds remaining after the transfer required under
subdivision (a) that conform to the description set forth in that
subdivision shall be transferred to the State Allocation Board and
may be apportioned by that board for any of the purposes of Chapter
12.5 (commencing with Section 17070.10) of Part 10 of the Education
Code.
SEC. 21. The Secretary of State shall submit Sections 16 and 20 of
this act to the voters at the November 7, 2006, statewide general
election.
SEC. 22. Notwithstanding any other provision of law, with respect
to the Kindergarten-University Public Education Facilities Bond Act
of 2006, as set forth in Section 16 of this act, all
ballots of the November 7, 2006, statewide
general election shall have printed thereon and in a square thereof,
exclusively the words: "Kindergarten-University Public Education
Facilities Bond Act of 2006" and in the same square under those
words, the following in 8-point type:
"This ten billion four hundred sixteen million dollar
($10,416,000,000) bond issue will provide needed funding to relieve
public school overcrowding and to repair older schools. It will
improve earthquake safety and fund vocational educational facilities
in public schools. Bond funds must be spent according to strict
accountability measures. Funds will also be used to repair and
upgrade existing public college and university buildings and to build
new classrooms to accommodate the growing student enrollment in the
California Community Colleges, the University of California, and the
California State University."
Opposite the square, there shall be left spaces in which the
voters may place a cross in the manner required by law to indicate
whether they vote for or against the act.
SEC. 23. Notwithstanding Sections 13247 and 13281 of the Elections
Code, the language in Section 22 shall be the only language included
in the ballot label for the condensed statement of the ballot title,
and the Attorney General shall not supplement, subtract from, or
revise that language, except that the Attorney General may include
the financial impact summary prepared pursuant to Section 9087 of the
Elections Code and Section 88003 of the Government Code. The ballot
label is the condensed statement of the ballot title and the
financial impact summary.
SEC. 24. 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. 25. Sections 1 to 15, inclusive, and Sections 18 and 19 of
this act shall become operative only if the voters approve the
Kindergarten-University Public Education Facilities Bond Act of 2006,
as set forth in Section 16 of this act.
SEC. 26. This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
In order to ensure, at the earliest possible time, that the
electorate is provided with the opportunity to vote on the financing
of necessary educational facilities at the November 7, 2006,
statewide general election, including related statutory changes, it
is necessary that this act take effect immediately.