It is the intent of the Legislature in enacting this act to provide a source of financing for the development of California public schools’ educational technology infrastructure for the use of technology in instruction through the use of state revenue bonds repaid from a dedicated portion of funds allocated to school districts from the California State Lottery Education Fund pursuant to Section 8880.5 of the Government Code. It is further the intent of the Legislature in enacting this act to further the purposes of the California State Lottery Act of 1984 as approved by the voters on November 6, 1984.
Chapter 17The Archie-Hudson and Cunneen School Technology Revenue Bond Act
Section § 17160
This law states that the California Legislature wants to use state revenue bonds to fund technology in public school education. The money to repay these bonds will come from the funds that schools receive from the California State Lottery. This aligns with the goals of the California State Lottery Act of 1984, which aims to support education.
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Section § 17161
This law section defines specific terms used in the context of the Archie-Hudson and Cunneen School Technology Revenue Bond Act. It clarifies that the 'Act' refers to the named legislation, 'Authority' is the California School Financing Authority, and 'Bond' includes various financial instruments like notes and commercial paper. The 'Fund' is a specific pool for school technology revenue bonds, and 'School district' refers to both school districts and county education offices.
For the purpose of this article the following terms have the following meanings:
(a)CA Education Code § 17161(a) “Act” means the Archie-Hudson and Cunneen School Technology Revenue Bond Act.
(b)CA Education Code § 17161(b) “Authority” means the California School Financing Authority established pursuant to Section 17172.
(c)CA Education Code § 17161(c) “Bond” means bonds, notes, bond anticipation notes, commercial paper, and any other evidences of indebtedness.
(d)CA Education Code § 17161(d) “Fund” means the School Technology Pooled Revenue Bond Fund established pursuant to subdivision (c) of Section 17162.
(e)CA Education Code § 17161(e) “School district” means school district or county office of education.
Archie-Hudson and Cunneen Act California School Financing Authority School Technology Revenue Bond Bond anticipation notes Commercial paper School district definition County office of education Pooled Revenue Bond Fund School Technology Fund Indebtedness evidences Financial instruments in education Section 17172 Subdivision (c) of Section 17162
Section § 17162
This law allows a specific authority to issue up to $400 million in bonds to fund technology improvements in schools. The bonds can be issued if school districts promise to repay at least $5 million together. The money from these bonds goes into a special fund and must be used by schools to set up computer networks and telecommunications systems. This includes buying and installing computer hardware, software, and related equipment necessary for connecting networks. The bond terms must be shorter than the lifespan of the purchased technology.
(a)CA Education Code § 17162(a) Notwithstanding Section 17199.3, the authority may issue bonds exclusively for the purposes of this act, provided that the total amount of bonds issued and outstanding at any time under this act shall not exceed four hundred million dollars ($400,000,000). Authorization for the issuance of bonds under this act shall become operative after July 1, 1997, upon receipt by the authority of repayment pledges made by school districts, pursuant to Section 17163, which, when the pledges from all school districts are combined, are equal to or greater than five million dollars ($5,000,000). The authority shall not issue bonds for any project that cannot be supported by the repayment pledges of school districts.
(b)CA Education Code § 17162(b) In administering this act, the authority shall meet all of the requirements established by law for the issuance, holding, and repayment of revenue bonds by the authority, including those set forth in Chapter 17 (commencing with Section 17170), unless otherwise provided for in this act.
(c)CA Education Code § 17162(c) Revenues from the sale of bonds issued pursuant to this act shall be deposited in the School Technology Pooled Revenue Bond Fund, which fund is hereby established in the State Treasury. Notwithstanding Section 13340 of the Government Code, all moneys in the fund shall be continuously appropriated without regard to fiscal year for the purposes of this chapter. The authority shall allocate moneys to each participating school district from the fund.
(d)CA Education Code § 17162(d) Allocations from the fund shall be used by school districts only for the purpose of establishing computer-based networks and telecommunications systems for instructional purposes, including the procurement and installation of computer hardware and software, multimedia audio, video, and data transfer equipment, and wiring, cabling, and other equipment necessary to establish network connectivity, and any planning and installation costs associated with establishing and installing the networks.
(e)CA Education Code § 17162(e) The length of terms of the bonds issued pursuant to this act shall be less than the useful life of the equipment to be purchased as set forth in subdivision (d).
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Section § 17163
This section allows a school district to participate in a program by which they use a part of their annual allocation from the California State Lottery Education Fund to repay bonds. The district can pledge up to 25% of its lottery funds based on the amount received in the 1996-97 fiscal year. To ensure proper repayment of these bonds, the district must notify the Controller, authorize the required payments to the bond trustee, and provide a schedule for fund transfers.
(a)CA Education Code § 17163(a) Notwithstanding any other provision of law, a school district may participate in this act, if the governing board of the school district adopts a resolution approving that participation. A participating school district shall pledge a portion of the lottery revenues allocated annually to the school district from the California State Lottery Education Fund as a dedicated revenue source to repay bonds issued by the authority under the act.
(b)CA Education Code § 17163(b) A school district may pledge an amount up to the equivalent of 25 percent, but not more than 25 percent, of the allocation to the school district for the 1996–97 fiscal year from the California State Lottery Education Fund.
(c)CA Education Code § 17163(c) A participating school district shall guarantee the repayment of bonds issued under this chapter by providing instructions to the Controller as follows:
(1)CA Education Code § 17163(c)(1) Informs the Controller of its election to participate in this act.
(2)CA Education Code § 17163(c)(2) Authorizes the Controller to pay the portion of the school district’s annual allocation of funds from the California State Lottery Education Fund to the bond trustee identified by the school district for the repayment of the school district’s share of the bonds issued under this chapter.
(3)CA Education Code § 17163(c)(3) Contains a transfer schedule that sets forth the amounts of funds, which shall be equal to the amount of funds pledged pursuant to subdivisions (a) and (b) of this section, to be transferred by the Controller to the trustee from the funds to be allocated to that school district from the California State Lottery Education Fund.
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Section § 17163.5
This law specifies that the Controller will make payments to bond trustees based on instructions outlined in a different section, but only using the money that a school district receives from the California State Lottery Education Fund. The Controller cannot pay more than what the school district is allocated from this fund.
The Controller shall pay bond trustees in accordance with the instructions received pursuant to Section 17863. The Controller shall make that payment only from moneys in the California State Lottery Education Fund allocated to that school district. The Controller is not authorized to pay a bond trustee any amount in excess of a district’s allocation from the California State Lottery Education Fund.
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Section § 17164
This section clarifies that the chapter doesn't create a state debt or promise to pay using state credit. Even if lottery funds fall short in repaying bonds used for financing projects, the General Fund cannot be used to cover the shortfall.
Nothing contained in this chapter shall be deemed or construed to create or constitute a debt, liability, or a loan or pledge of the credit of the state.
Notwithstanding any other provision of law, should lottery funds pledged to repay bonds issued pursuant to this act be insufficient to repay the revenue bonds, negotiable notes, or negotiable bond anticipation notes sold to finance projects and related interest and expenses, moneys in the General Fund shall not be available as an alternative source of repayment.
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Section § 17165
This law requires the State Department of Education to report each year on how schools are using lottery funds, specifically focusing on how much of that money is spent on paying back bonds that were issued as part of this act.
The State Department of Education shall include in its annual survey of schools on the use of lottery funds, the amount of lottery revenues expended to repay bonds issued pursuant to this act.
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