This law section allows California to issue bonds totaling nearly $2.99 billion to fund certain educational projects. These bonds are considered a solid obligation of the state, meaning that California is fully responsible for paying them back with interest. The State Treasurer is responsible for selling these bonds as needed to cover costs when they arise, as authorized by the Higher Education Facilities Finance Committee.
(a)CA Education Code § 100125(a) Bonds in the total amount of two billion nine hundred eighty-seven million thirty-five thousand dollars ($2,987,035,000), not including the amount of any refunding bonds issued in accordance with Section 100175, 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 both principal of, and interest on, the bonds as the principal and
interest become due and payable.
(b)CA Education Code § 100125(b) Pursuant to this section, the Treasurer shall sell the bonds authorized by the Higher Education Facilities Finance Committee created pursuant to Section 67353 at any different times necessary to service expenditures required by the apportionments.
bonds higher education funding state obligation finance committee bond sales fund reimbursement educational projects general obligation bonds state treasurer expenditure servicing
(Amended by Stats. 2012, Ch. 39, Sec. 5. (SB 1018) Effective June 27, 2012. Note: This section was added by Stats. 1996, Ch. 1, and approved in Prop. 203 on March 26, 1996.)
This law section continues the State School Building Finance Committee, which includes high-level state officials like the Governor and the Treasurer, for managing school building finance matters. The committee doesn't get paid for this service, and a majority must be present to make decisions. The Treasurer is the chair. Two Senate and two Assembly members will advise the committee, provided it doesn’t conflict with their legislative roles. These legislators serve as an interim investigating committee with specific powers. The Director of Finance supports the committee, and the Attorney General advises them legally.
The State School Building Finance Committee, created by Section 15909 and composed of the Governor, Controller, Treasurer, Director of Finance, and the Superintendent of Public Instruction, 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 be designated to chair 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 and duties imposed upon those committees by the Joint Rules of the Senate and the Assembly. The Director of Finance shall provide the assistance to the committee as it may require. The Attorney General of the state shall be the legal adviser of the committee.
State School Building Finance Committee Governor Controller Treasurer Director of Finance Superintendent of Public Instruction quorum Senate Members Assembly Members advisory participation interim investigating committee Joint Rules Treasurer as chair Attorney General legal adviser school building finance
(Added by Stats. 1996, Ch. 1, Sec. 1. Approved in Proposition 203 at the March 26, 1996, election.)
This law section explains how certain bonds related to education in California are managed. These bonds are handled according to a specific set of state rules called the State General Obligation Bond Law. The State Allocation Board is in charge of these bonds, especially for school building projects. Additionally, different state agencies, when dealing with funds from the 1996 Higher Education Capital Outlay Bond Fund, are recognized as the main authority for their respective projects.
(a)CA Education Code § 100135(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 apply to the bonds and to this chapter and are hereby incorporated in this chapter as though set forth in full in this chapter.
(b)CA Education Code § 100135(b) For purposes of the State General Obligation Bond Law, the State Allocation Board is designated the “board” for purposes of administering the State School Building Lease-Purchase Fund.
(c)CA Education Code § 100135(c) For purposes of the State General Obligation Bond Law, each state agency administering an appropriation of the 1996 Higher Education Capital Outlay Bond Fund is designated as the “board” for projects funded by those appropriations.
State General Obligation Bond Law State Allocation Board education bonds 1996 Higher Education Capital Outlay Bond Fund school building projects bond management state agency designation lease-purchase fund bond issuance bond redemption
(Added by Stats. 1996, Ch. 1, Sec. 1. Approved in Proposition 203 at the March 26, 1996, election.)
This law explains the process for issuing bonds to fund school and higher education facility projects in California. When the State Allocation Board requests, the State School Building Finance Committee decides if bonds need to be issued to finance the projects listed in specific sections. Bonds can be issued progressively, not all at once. Similarly, the Higher Education Facilities Finance Committee can issue bonds as directed by the Legislature's Budget Act, specifically for projects listed in Section 100120. Again, bonds can be issued progressively instead of in a single batch.
(a)CA Education Code § 100140(a) Upon request of the State Allocation Board from time to time, supported by a statement of the apportionments made and to be made for the purposes described in Sections 100015, 100020, 100025, 100030, and 100035, the State School Building Finance Committee created pursuant to Section 15909 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)CA Education Code § 100140(b) The Higher Education Facilities Finance Committee created 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 Section 100120 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 actions specified in Section 100120 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.
State Allocation Board State School Building Finance Committee bonds issuance school building funding Higher Education Facilities Finance Committee Budget Act authorization progressive bond issuance apportionment of funds issuance of bonds for education Section 100120 projects facility funding bond sales legislative direction educational finance California education funding
(Added by Stats. 1996, Ch. 1, Sec. 1. Approved in Proposition 203 at the March 26, 1996, election.)
Every year, the state has to collect extra money along with regular state taxes to cover the payment of bond principal and interest. This means all government officials involved in revenue collection must do everything needed to gather this additional amount.
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, and 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.
state revenue collection bond payments annual bond principal bond interest payments government revenue officers additional revenue collection state taxes financial obligations government bonds fund collection revenue duty fiscal responsibility tax collection process additional state funds public debt service
(Added by Stats. 1996, Ch. 1, Sec. 1. Approved in Proposition 203 at the March 26, 1996, election.)
This law section states that money will be automatically allocated from California's General Fund to cover two things. First, it will pay off the principal and interest on specific bonds as they come due. Second, it provides funds needed to implement Section 100165, and this allocation isn't limited by the state's usual fiscal year calendar.
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)CA Education Code § 100150(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)CA Education Code § 100150(b) The sum that is necessary to carry out the provisions of Section 100165, appropriated without regard to fiscal years.
General Fund allocation bond payments interest on bonds principal on bonds funding for Section 100165 automatic funds appropriation bonds issued under this chapter fiscal year exemption state treasury funding necessary sum for provisions interest due payments principal due payments state funding for bonds annual bond payment state treasury appropriation
(Added by Stats. 1996, Ch. 1, Sec. 1. Approved in Proposition 203 at the March 26, 1996, election.)
This law allows the board to request a loan from the Pooled Money Investment Board to support activities under this chapter, as long as the requested loan amount does not surpass the value of unsold bonds designated for this purpose. To obtain and repay the loan, the board needs to complete certain documents required by the investment board. Once borrowed, the funds must be deposited in a specific fund and used as the chapter dictates.
The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, 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 has, by resolution, authorized to be sold for the purpose of carrying out this chapter. The board shall execute those 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.
Pooled Money Investment Board loan request unsold bonds bond resolution loan repayment fund allocation Pooled Money Investment Account Government Code Section 16312 investment loan document execution fund deposit loan purpose monetary funding request loan authorization financial management by board
(Added by Stats. 1996, Ch. 1, Sec. 1. Approved in Proposition 203 at the March 26, 1996, election.)
This law allows the California State Treasurer to keep separate accounts for money made from selling bonds if a bond counsel advises that the bond interest is tax-free under federal law. This is to ensure the tax-free status of the bonds. The Treasurer can use this money to make necessary payments or take actions needed under federal law to maintain the bonds' tax exemption and possibly gain other benefits for the state funds.
Notwithstanding any other provision of this chapter, or of 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), if the Treasurer sells bonds 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 bond proceeds invested and for the investment earnings on those proceeds, and 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 that is required or desirable under federal law in order 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.
California State Treasurer bond sales tax-exempt bonds bond counsel opinion federal tax purposes separate accounts bond proceeds investment earnings federal law compliance tax-free interest rebate payments penalty payments bond tax exemption federal law advantages state funds management
(Added by Stats. 1996, Ch. 1, Sec. 1. Approved in Proposition 203 at the March 26, 1996, election.)
This section explains that the Director of Finance in California can approve withdrawing money from the General Fund up to the amount of unsold bonds authorized by designated committees. The funds withdrawn are to be used specifically for school building and higher education projects. These funds must be returned to the General Fund with interest once the bonds are sold.
Additionally, for any funds requested by the University of California, California State University, or California Community Colleges for projects related to this bond issue, they must submit a five-year capital outlay plan. This plan must prioritize projects that address seismic retrofitting needs to reduce earthquake hazards by the 2002–03 fiscal year.
(a)CA Education Code § 100165(a) For the purposes of carrying out this chapter, the Director of Finance may authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds that have been authorized by the State School Building Finance Committee or 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 State School Building Lease-Purchase Fund and the 1996 Higher Education Capital Outlay Bond Fund. Any money made available under this section shall be returned to the General Fund, plus an amount equal to the interest 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)CA Education Code § 100165(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 Section 100120 by the University of California, the California State University, or the California Community Colleges shall be accompanied by the five-year capital outlay plan of the particular university or college and shall include a schedule that prioritizes the seismic retrofitting needed to significantly reduce, by the 2002–03 fiscal year, in the judgment of the particular university or college, seismic hazards in buildings identified as high priority by the university or college.
Director of Finance General Fund withdrawal unsold bonds State School Building Finance Committee Higher Education Facilities Finance Committee State School Building Lease-Purchase Fund 1996 Higher Education Capital Outlay Bond Fund Pooled Money Investment Account University of California California State University California Community Colleges five-year capital outlay plan seismic retrofitting seismic hazards bond issue requests
(Added by Stats. 1996, Ch. 1, Sec. 1. Approved in Proposition 203 at the March 26, 1996, election.)
This law states that any money from premiums and interest gained from the sale of bonds, which is deposited in specific educational funds, is set aside in those funds. This money can then be moved to the General Fund to help pay for bond interest expenses.
All money deposited in the State School Building Lease-Purchase Fund, the Education Technology Fund, and the 1996 Higher Education 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.
State School Building Lease-Purchase Fund Education Technology Fund Higher Education Capital Outlay Bond Fund bond premiums accrued interest bond sales fund transfer General Fund credit to expenditures bond interest
(Added by Stats. 1996, Ch. 1, Sec. 1. Approved in Proposition 203 at the March 26, 1996, election.)
This law states that bonds can be refinanced or "refunded" according to specific rules in the Government Code. If voters approved the original bond issuance, they automatically approve any future bonds that refund the original or previously refunded ones.
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 electors of the state for the issuance of the bonds described in this chapter shall include approval of the issuance of any bonds issued to refund any bonds originally issued under this chapter or any previously issued refunding bonds.
bond refinancing bond refunding government bond rules elector approval state bonds general obligation bond bond issuance voter approval refunding bonds original bond refunding
(Added by Stats. 1996, Ch. 1, Sec. 1. Approved in Proposition 203 at the March 26, 1996, election.)
This law states that money raised from selling certain government bonds isn't considered tax revenue. Therefore, there are no constitutional limits on how this money can be spent.
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.
bond sales constitutional limitations tax revenue exclusion government bonds Article XIII B California Constitution bond proceeds spending limitations disbursement of proceeds Legislature declaration tax proceeds definition
(Added by Stats. 1996, Ch. 1, Sec. 1. Approved in Proposition 203 at the March 26, 1996, election.)
