Article 1Purposes for Authorizing Bonds

Section § 15100

Explanation

This law allows school districts and community college districts in California to hold an election to decide if they should issue and sell bonds to raise money for various school-related needs. These needs include buying land, constructing or purchasing school buildings, making major improvements, repairing damage, buying long-lasting schoolbuses, and other permanent improvements. To proceed with such an election, the school board must first get a projection of property values from the county assessor.

(a)CA Education Code § 15100(a) Except as otherwise provided by law, the governing board of any school district or community college district may, when in its judgment it is advisable, and shall, upon a petition of the majority of the qualified electors residing in the school district or community college district, order an election and submit to the electors of the school district or community college district, as applicable, the question whether the bonds of the school district or community college district shall be issued and sold for the purpose of raising money for the following purposes:
(1)CA Education Code § 15100(a)(1) The purchasing of school lots.
(2)CA Education Code § 15100(a)(2) The building or purchasing of school buildings.
(3)CA Education Code § 15100(a)(3) The making of alterations or additions to the school building or buildings other than as may be necessary for current maintenance, operation, or repairs.
(4)CA Education Code § 15100(a)(4) The repairing, restoring, or rebuilding of any school building damaged, injured, or destroyed by fire or other public calamity.
(5)CA Education Code § 15100(a)(5) The supplying of school buildings and grounds with furniture, equipment, or necessary apparatus of a permanent nature.
(6)CA Education Code § 15100(a)(6) The permanent improvement of the school grounds.
(7)CA Education Code § 15100(a)(7) The refunding of any outstanding valid indebtedness of the school district or community college district, evidenced by bonds, or of state school building aid loans.
(8)CA Education Code § 15100(a)(8) The carrying out of the projects or purposes authorized in Section 17577.
(9)CA Education Code § 15100(a)(9) The purchase of schoolbuses the useful life of which is at least 20 years.
(10)CA Education Code § 15100(a)(10) The demolition or razing of any school building with the intent to replace it with another school building, whether in the same location or in any other location.
(b)CA Education Code § 15100(b) Any one or more of the purposes enumerated in subdivision (a), except that of refunding any outstanding valid indebtedness of the school district or community college district evidenced by bonds, may, by order of the governing board of the school district or community college district, as applicable, that is entered in its minutes, be united and voted upon as one single proposition.
(c)CA Education Code § 15100(c) Before the governing board of a school district or the governing board of a community college district may order an election for purposes of this section, it shall obtain reasonable and informed projections of assessed property valuations that take into consideration projections of assessed property valuations made by the county assessor.
school bonds school district election community college district property valuation projections buying school lots school buildings alterations repairs school furniture permanent school improvements outstanding indebtedness schoolbus purchase demolition replacement school buildings fire or calamity damage
(Amended by Stats. 2016, Ch. 129, Sec. 1. (AB 2116) Effective January 1, 2017.)

Section § 15100.3

Explanation

Small school districts in California that have voter-approved bonds can team up to form a joint powers authority. This allows them to work together to issue or sell bonds to raise money for their needs. The joint powers authority can act like a school district for the purpose of managing these bonds under specific rules, but each district still handles their own bonds separately. The idea is to save on administrative costs without changing the terms of the original bonds. A small school district is defined as one with fewer than 2,501 students attending daily on average.

(a)CA Education Code § 15100.3(a) Two or more small school districts that have had the issuance of bonds authorized by the voters pursuant to this chapter may form a joint powers authority in accordance with the provisions of Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code for the purpose of issuing or selling those bonds for raising money for the purposes authorized.
(b)CA Education Code § 15100.3(b) A joint powers authority described in subdivision (a) shall be deemed a school district for purposes of this chapter only and may exercise all authority granted to a school district under this chapter under the conditions imposed by this chapter for the issuance and sale of bonds.
(c)CA Education Code § 15100.3(c) Each small school district shall be responsible for its respective voter-approved bonds pursuant to this chapter. A joint powers authority formed pursuant to this section shall serve the purpose of sharing administrative costs associated with the issuance and sale of bonds and shall not otherwise affect the terms of the respective voter-approved bonds.
(d)CA Education Code § 15100.3(d) For purposes of this section, “small school district” means a school district with fewer than 2,501 units of average daily attendance.
small school districts joint powers authority issuance of bonds voter-approved bonds bond administration average daily attendance school district collaboration bond sales sharing administrative costs subdivision responsibilities
(Added by Stats. 2017, Ch. 451, Sec. 1. (AB 1550) Effective January 1, 2018.)

Section § 15100.5

Explanation
This law allows the governing board of the Peralta Community College District to hold an election to ask voters if they can use money from bonds that were approved earlier but not yet issued for purposes beyond what was originally planned. The board can also decide to combine this election with a proposal to issue new bonds. If at least two-thirds of the voters agree, the district can then use the bond money for new purposes and issue new bonds if needed.
Except as otherwise provided by law, the governing board of the Peralta Community College District may, when in its judgment it is advisable, order the county superintendent of schools to call an election to be conducted pursuant to this chapter and submit to the electors of the district the question of whether the proceeds of previously authorized but unissued bonds of the district may be used for a purpose or purposes in addition to the purposes for which the previously approved bonds were authorized by the electors.
The governing board may, by order entered into its minutes, call for an election to expand the purposes of prior authorized but unissued bonds either as a single proposition on the ballot or combined with the question of issuing new bonds of the district for any purpose or purposes permitted by law.
If two-thirds of the votes cast on the question of expanding the purposes for which the proceeds of previously authorized but unissued bonds of the district may be used, or the combined question of expanding the purposes for which the proceeds of previously authorized but unissued bonds of the district and issuing newly authorized bonds of the district, are in favor of the proposition, the district may use the proceeds of the previously authorized but unissued bonds for the expanded purposes and may issue newly authorized bonds, as the case may be.
Peralta Community College District bond proceeds authorized bonds unissued bonds expanded purposes bond election county superintendent of schools two-thirds vote proposition on ballot issuing new bonds voter approval district electors governing board decision election call ballot proposition
(Repealed and added by Stats. 1997, Ch. 893, Sec. 2. Effective January 1, 1998.)

Section § 15101

Explanation

This law says you can't hold an election within 45 days before or after a statewide election unless it's happening on the same day as that statewide election or on another officially scheduled election date.

Notwithstanding any other law, an election may not be held pursuant to this chapter within 45 days before a statewide election or within 45 days after a statewide election unless conducted at the same time as the statewide election, subject to Part 3 (commencing with Section 10400) of Division 10 of the Elections Code, or on an established election date pursuant to Section 1000 or 1500 of the Elections Code.
statewide election timing 45-day restriction election scheduling concurrent elections established election date Elections Code compliance local election constraints election overlap rule scheduling exceptions Section 1000 Section 1500 Part 3 of Division 10 election timing limitations pre-election period post-election period
(Amended by Stats. 2006, Ch. 289, Sec. 1. Effective January 1, 2007.)

Section § 15101.75

Explanation

This law section is about the rules for bond elections and issuing bonds specifically for school facilities improvement districts. It says the rules in this chapter apply as long as they don't conflict with another set of rules in Chapter 2. If there is a conflict, Chapter 2's rules take priority, but only where they conflict. Additionally, any bonds that were approved by voters before January 1, 2008, are to be governed by the rules that were in place as of December 31, 2007.

(a)CA Education Code § 15101.75(a) This chapter shall apply to bond elections for and the issuance of bonds for school facilities improvement districts created pursuant to Chapter 2 (commencing with Section 15300) to the extent that this chapter does not conflict with Chapter 2. In the event of a conflict, the provisions of Chapter 2 shall supersede the provisions of this chapter, but only to the extent of the conflict.
(b)CA Education Code § 15101.75(b) A bond adopted by the voters pursuant to this part prior to January 1, 2008, shall be governed by this part as it read on December 31, 2007.
bond elections school facilities improvement districts issuance of bonds conflict of laws Chapter 2 priority pre-2008 bonds voter-approved bonds school bonds rules for bonds facility improvements education bonds district bonds bond governance
(Added by Stats. 2007, Ch. 670, Sec. 1. Effective January 1, 2008.)

Section § 15102

Explanation
This law limits the amount of bonds that a school district, community college district, or school facilities improvement district can issue to 1.25% of the district's taxable property value. The taxable property value includes various properties and is calculated using the assessed values from the county's last equalized assessment and specific figures from the 1987–88 fiscal year.
The total amount of bonds issued pursuant to this chapter and Chapter 1.5 (commencing with Section 15264) shall not exceed 1.25 percent of the taxable property of the school district or community college district, or the school facilities improvement district, if applicable, as shown by the last equalized assessment of the county or counties in which the district is located. For purposes of this section, the taxable property of a district for any fiscal year shall be calculated to include, but not be limited to, the assessed value of all unitary and operating nonunitary property of the district, which shall be derived by dividing the gross assessed value of the unitary and operating nonunitary property within the district for the 1987–88 fiscal year by the gross assessed value of all unitary and operating nonunitary property within the county in which the district is located for the 1987–88 fiscal year, and multiplying that result by the gross assessed value of all unitary and operating nonunitary property of the county on the last equalized assessment roll.
bond issuance limit taxable property value school district bonds community college bonds assessment roll unitary property operating nonunitary property 1.25% limit equalized assessment fiscal year 1987-88 property assessment calculation school facilities improvement county assessment district property value tax assessment
(Amended by Stats. 2007, Ch. 670, Sec. 2. Effective January 1, 2008.)

Section § 15103

Explanation

This law explains that when calculating the maximum amount of bonds a school district can issue, the district's taxable property value should be considered as if business inventories and homeowner property tax exemptions haven't reduced it.

Notwithstanding any other provision of law, for the purpose of computing the limit on the amount of bonds which may be issued by a district pursuant to the provisions of this chapter, the taxable property of the district shall be determined upon the basis that the district’s assessed value has not been reduced by the exemption of the assessed value of business inventories in the district or reduced by the homeowner’s property tax exemption.
bond issuance limit taxable property assessed value business inventories exemption homeowner property tax exemption school district bonds district's assessed value property value calculation tax exemptions bond limits
(Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Section § 15105

Explanation

This law is about how to determine and adjust property value assessments for specific legal purposes in California. When calculating these adjustments, the "current year" refers to the most recent fiscal year for which there is an official county assessment roll. Meanwhile, the term "two immediately preceding years" means the two fiscal years before that. If adjustments need to be made before certain official numbers are available, the adjustment factor will temporarily be set as 1.00.

For the purpose of the provisions of Sections 15102 and 15106 which require that the valuation as shown on the last equalized assessment roll be modified pursuant to Section 41201 or 84201, the “current year” as used in Section 41201 or 84201 shall be deemed to be the latest fiscal year for which there exists a last equalized county assessment roll as ascertained in accordance with Chapter 3 (commencing with Section 2050) of Part 3 of Division 1 of the Revenue and Taxation Code, and the term “two immediately preceding years” shall be deemed to be the two fiscal years immediately preceding the fiscal year for which the last equalized county assessment roll exists. Whenever in any year it becomes necessary to determine the modification under Sections 15102 and 15106, at a time between the date when the assessment roll for that year becomes the last equalized county assessment roll ascertained under Chapter 3 and the date when the factor for the current year is certified and becomes available, the factor for the current year shall be deemed to be 1.00.
property value assessment equalized assessment roll current year fiscal year county assessment roll modification valuation certified factor last equalized adjustment factor pursuant to Section 41201 fiscal years official numbers latest fiscal year Revenue and Taxation Code Chapter 3
(Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Section § 15106

Explanation

This law explains that unified school districts and community college districts in California can issue bonds, but the total from these and certain other bonds can't exceed 2.5% of the district's taxable property value. When calculating how much a district already owes, existing bonds are considered divided among elementary, high school, and community college purposes based on how their sale proceeds were allocated. There are also specific rules for determining a district's property value, using a calculation method based on values from the 1987-88 fiscal year. If districts join together after this year, their combined property values are used. Additionally, there are special provisions for bonds related to school building aid applications before a certain date.

A unified school district or community college district may issue bonds that, in aggregation with bonds issued pursuant to Section 15270, shall not exceed 2.5 percent of the taxable property of the school district or community college district, or the school facilities improvement district, if applicable, as shown by the last equalized assessment of the county or counties in which the district is located.
In computing the outstanding bonded indebtedness of a unified school district or community college district for all purposes of this section, any outstanding bonds shall be deemed to have been issued for elementary school purposes, high school purposes, and community college purposes, respectively, in the respective amounts that the proceeds of the sale of those outstanding bonds, excluding any premium and accrued interest received on that sale, were or have been allocated by the governing board of the unified school district or community college district to each of those purposes respectively.
(a)CA Education Code § 15106(a) For the purposes of the State School Building Aid Law of 1952 (Chapter 6 (commencing with Section 16000)) with respect to applications for apportionments and apportionments filed or made prior to September 15, 1961, and to the repayment thereof, Chapter 4 (commencing with Section 15700), inclusive, only, a unified school district shall be considered to have a bonding capacity in the amount permitted by law for an elementary school district and a bonding capacity in the amount permitted by law for a high school district.
(b)CA Education Code § 15106(b) For purposes of this section, the taxable property of a district for a fiscal year shall be calculated to include, but not be limited to, the assessed value of all unitary and operating nonunitary property of the district, which shall be derived by dividing the gross assessed value of the unitary and operating nonunitary property within the district for the 1987–88 fiscal year by the gross assessed value of all unitary and operating nonunitary property within the county in which the district is located for the 1987–88 fiscal year, and multiplying the result by the gross assessed value of all unitary and operating nonunitary property of the county on the last equalized assessment roll. In the event of the unification of two or more school districts or community college districts subsequent to the 1987–88 fiscal year, the assessed value of all unitary and operating nonunitary property of the unified district or community college district shall be deemed to be the total of the assessed value of the taxable property of each of the unifying districts as that assessed value would be determined under Section 15102.
bond issuance limits taxable property school district bonds community college bonds bonded indebtedness assessment roll equalized assessment unitary property nonunitary property 1987-88 fiscal year school facilities improvement bond allocation outstanding bonds unified districts State School Building Aid Law
(Amended by Stats. 2007, Ch. 670, Sec. 3. Effective January 1, 2008.)

Section § 15107

Explanation
This section explains how a school district or community college district's debt limit is calculated when it includes territory from a previously existing district. Any outstanding debt from a previous district is usually not counted against the new district's debt limit unless two-thirds of voters agree to assume it. However, property taxes will still be used to pay off any existing debt. This method does not allow issuing more bonds than specified elsewhere in the law.
In computing the limitation of indebtedness of a school district, community college district, or school facilities improvement district of any kind or class up to this time or in the future formed or organized, hereinafter in this section referred to as the “bonding district,” the outstanding indebtedness of any previously existing district all or any part of which forms a component part of the bonding district and the outstanding indebtedness of any district for which any territory that has become a part of the bonding district is liable shall be excluded and shall not be deemed, for the purposes of computing the limitation of indebtedness under Section 15102 or 15106, to constitute outstanding indebtedness of the bonding district, except to the extent that the outstanding indebtedness has been expressly assumed by the bonding district by vote of not less than two-thirds of the electors of the bonding district voting at an election at which the proposition of assuming the indebtedness is voted upon. Nothing contained in this section shall operate to release any property from liability for taxes to pay the principal and interest of indebtedness incurred by any component district or for which any territory that has become a part of the bonding district is liable and in which the taxable property is located at the time of the incurring of the indebtedness. It is the intent of the Legislature to provide in this section a special method of computing the limitation of indebtedness of school districts or community college districts irrespective of liability of the area embraced within the school districts for the payment of any bonded indebtedness. This section does not authorize the issuance of bonds in excess of the limits expressed in Section 15334.5.
school district debt community college district indebtedness limitation bonding district outstanding indebtedness debt assumption voter approval property taxes component district future organization Section 15102 Section 15106 assumed indebtedness territory liability bond issuance limits
(Amended by Stats. 2007, Ch. 670, Sec. 4. Effective January 1, 2008.)

Section § 15108

Explanation

This law says that when a school district, community college district, or school facilities improvement district is figuring out how much debt it can have, it should not count any debt for which another district is responsible. So, if part of the debt is actually the responsibility of another district, that part doesn't count against the first district's debt limits.

For the purpose of determining the limitation of indebtedness of a school district, community college district, or school facilities improvement district of any kind or class under Section 15102 or 15106, that portion of the bonded indebtedness of the district for which another district or territory in another district is liable shall be excluded and shall not be deemed to constitute outstanding bonded indebtedness of the district.
school district debt community college district school facilities improvement indebtedness limitation bonded indebtedness outstanding debt exclusion district liability shared debt responsibility debt calculation Section 15102 Section 15106
(Amended by Stats. 2007, Ch. 670, Sec. 5. Effective January 1, 2008.)

Section § 15109

Explanation

This law allows a governing board, which oversees both a large elementary and high school district sharing the same board, to adjust the limits on how much money they can raise through bonds. Specifically, they can decrease the limit on bonds for the elementary school district and increase it for the high school district by the same amount. This applies when students in grades seven and eight attend high school within the high school district.

Where an elementary school district and a high school district with a combined average daily attendance of 300,000 or more are governed by the same governing board, and the pupils in grades seven and eight in the districts are in attendance at high schools maintained by the high school district, the governing board, by resolution filed with the county auditor, may provide that the bond issuance limitations determined under Section 15102 shall be adjusted by reducing the bond issuance limitation of the elementary school district by 1 percent of its total and by augmenting the bond issuance limitation for the high school district by the amount by which that of the elementary district was reduced.
bond issuance limitations elementary school district high school district combined attendance grades seven and eight governing board county auditor bond adjustment financial management education funding capacity augmentation district governance school finance resolution filing attendance criteria
(Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Section § 15110

Explanation

This law says that if someone wants to challenge the validity of certain bonds or the decision to improve or acquire something, they can do this by taking legal action according to a specific part of the civil procedure code. In such a case, the decisions made by the governing body that organized these plans are final unless it can be proved that fraud actually occurred.

An action to determine the validity of bonds and of the ordering of the improvement or acquisition may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. In such action, all findings, conclusions and determinations of the legislative body which conducted the proceedings shall be conclusive in the absence of actual fraud.
bonds validity improvement challenges acquisition challenges legal action civil procedure challenge legislative body conclusive findings absence of fraud government decision fraud proof requirement
(Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Section § 15111

Explanation

This law requires school and community college district boards to submit a report to their county's superintendent of schools within 30 days after the fiscal year ends. The report must detail any elections about bond issues or indebtedness approvals. It needs to include the total amount involved, the voter turnout percentage, and the election results.

The governing board of each school district or community college district shall, within 30 days after the end of each fiscal year, submit to the county superintendent of schools who has jurisdiction over the school district or community college district a report containing the following information, concerning any election held pursuant to Sections 4152, 15120, 15121, and 16058 for the approval of the issuance of bonds or the assumption of any bonded indebtedness or other indebtedness:
(1)CA Education Code § 15111(1) The total amount of the bond issue, bonded indebtedness or other indebtedness involved.
(2)CA Education Code § 15111(2) The percentage of registered electors of the district who voted at the election.
(3)CA Education Code § 15111(3) The results of the election, with the percentage of votes cast for and against the proposition involved.
school district reporting community college district election results bond issue bonded indebtedness voter turnout fiscal year reporting county superintendent election approval debt assumption elections registered electors vote percentage report submission timeline
(Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)