Chapter 16Public Disclosure of Non-Voter-Approved Debt

Section § 17150

Explanation

This law is about the process school districts and county boards must follow when they plan to issue revenue bonds or make financing agreements for school construction. First, they need to get approval from their respective governing boards. Then, they must inform relevant officials like the county superintendent and the county auditor. They need to provide repayment plans and show that they can pay back the debt. These officials have a chance to publicly comment on the district's ability to repay. However, even if these steps aren't perfectly followed, it doesn't invalidate the debt, and the county isn't responsible for managing the district's debt before they're notified.

(a)CA Education Code § 17150(a) Upon the approval by the governing board of the school district to proceed with the issuance of revenue bonds or to enter into an agreement for financing school construction pursuant to Chapter 18 (commencing with Section 17170), the school district shall notify the county superintendent of schools and the county auditor. The superintendent of the school district shall provide the repayment schedules for that debt obligation and evidence of the ability of the school district to repay that obligation to the county auditor, the county superintendent, the governing board, and the public. Within 15 days of the receipt of the information, the county superintendent of schools and the county auditor may comment publicly to the governing board of the school district regarding the capability of the school district to repay that debt obligation.
(b)CA Education Code § 17150(b) Upon the approval by the county board of education to proceed with the issuance of revenue bonds or to enter into an agreement for financing pursuant to Chapter 18 (commencing with Section 17170), the county superintendent of schools or superintendent of a school district for which the county board serves as governing board shall notify the Superintendent. The county superintendent of schools or the superintendent of a school district for which the county board serves as the governing board shall provide the repayment schedules for that debt obligation and evidence of the ability of the county office of education or school district to repay that obligation, to the Superintendent, the governing board, and the public. Within 15 days of the receipt of the information the Superintendent may comment publicly to the county board of education regarding the capability of the county office of education or school district to repay that debt obligation.
(c)CA Education Code § 17150(c) Prior to delivery of the notice required by subdivision (a) neither the county nor its officers shall have responsibility for the administration of the indebtedness of the school district. Failure to comply with the requirements of this section will not affect the validity of the indebtedness.
revenue bonds school construction financing governing board approval county superintendent county auditor debt repayment schedules public comment debt obligation financial capability county board of education school district notification Superintendent indebtedness administration
(Amended by Stats. 2008, Ch. 128, Sec. 1. Effective January 1, 2009.)

Section § 17150.1

Explanation

This law section explains the steps that a school district or county board of education must follow before they can issue certain types of debt without voter approval, like certificates of participation. They need to notify relevant officials, like the county superintendent and county auditor, at least 30 days before getting the governing board's approval to proceed. These officials will be given information about how the debt will affect the school district or county, including repayment plans and costs. The county officials can then publicly comment on the school district or county's ability to pay back the debt within 15 days of receiving the information.

(a)CA Education Code § 17150.1(a) No later than 30 days before the approval by the governing board of the school district to proceed with the issuance of certificates of participation and other debt instruments that are secured by real property and do not require approval of the voters of the school district, the school district shall notify the county superintendent of schools and the county auditor. The superintendent of the school district shall provide information necessary to assess the anticipated effect of the debt issuance, including the repayment schedules for that debt obligation, evidence of the ability of the school district to repay that obligation, and the issuance costs, to the county auditor, the county superintendent, the governing board, and the public. Within 15 days of the receipt of the information, the county superintendent of schools and the county auditor may comment publicly to the governing board of the school district regarding the capability of the school district to repay that debt obligation.
(b)CA Education Code § 17150.1(b) No later than 30 days before the approval by the county board of education to proceed with the issuance of certificates of participation and other debt instruments that are secured by real property and do not require approval of the voters of the county, the county superintendent of schools or superintendent of a school district for which the county board serves as governing board shall notify the Superintendent. The county superintendent of schools or the superintendent of a school district for which the county board serves as the governing board shall provide information necessary to assess the anticipated effect of the debt issuance, including the repayment schedules for that debt obligation, the evidence of the ability of the county office of education or school district to repay that obligation, and issuance costs, to the Superintendent, the governing board, and the public. Within 15 days of the receipt of the information the Superintendent may comment publicly to the county board of education regarding the capability of the county office of education or school district to repay that debt obligation.
school district debt certificates of participation real property voter approval exemption repayment schedules county superintendent county auditor debt issuance costs governing board approval public comment on debt education finance debt obligation assessment financial review process district financial capability county board of education
(Added by Stats. 2008, Ch. 128, Sec. 2. Effective January 1, 2009.)