This law section allows California to issue and sell bonds worth up to $11.4 billion. The funds generated will financially support purposes mentioned in the chapter and reimburse certain expenses. These bonds are a binding commitment by the state, with payment backed by California's full faith and credit.
The State School Building Finance Committee oversees the sale of these bonds, and the Treasurer will sell them as needed to meet financial demands of school-related expenditures.
(a)CA Education Code § 100625(a) Of the total amount of bonds authorized to be issued and sold pursuant to Chapter 1 (commencing with Section 100600), bonds in the total amount of eleven billion four hundred million dollars ($11,400,000,000) not including the amount of any refunding bonds issued in accordance with Section 100644, 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)CA Education Code § 100625(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.
state bonds bond issuance bond sale fund reimbursement General Obligation Bond Expense Revolving Fund State School Building Finance Committee Treasurer California school funding financial support public school financing bond obligation principal and interest payment state commitment educational facilities funding apportionments payment
(Added by Stats. 2002, Ch. 33, Sec. 30. Approved in Proposition 47 at the November 5, 2002, election.)
This section describes the State School Building Finance Committee, which includes high-level state officials and operates without pay. Its main role is to oversee school building finances. The committee includes the Governor, Controller, Treasurer, Director of Finance, and Superintendent of Public Instruction. The Treasurer acts as the chairperson. Additionally, select members of the Senate and Assembly can advise the committee, as long as it doesn't conflict with their legislative duties. They can also investigate issues related to this chapter. The Director of Finance supports the committee's needs, and the Attorney General acts as its legal adviser.
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 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 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.
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 of the Senate and Assembly legal adviser Attorney General assistance
(Added by Stats. 2002, Ch. 33, Sec. 30. Approved in Proposition 47 at the November 5, 2002, election.)
This law section explains how bonds related to the chapter are handled. These bonds will be managed according to existing rules set in the State General Obligation Bond Law, with all its provisions applying here, except for one specific section. It also specifies that the State Allocation Board is in charge of managing the funds associated with the 2002 State School Facilities Fund.
(a)CA Education Code § 100630(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, 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)CA Education Code § 100630(b) For purposes of the State General Obligation Bond Law, the State Allocation Board is designated the “board” for purposes of administering the 2002 State School Facilities Fund.
bonds management State General Obligation Bond Law bond issuance bond redemption State Allocation Board 2002 State School Facilities Fund bond execution bond selling fund administration state fund management bond payment school facility funding
(Added by Stats. 2002, Ch. 33, Sec. 30. Approved in Proposition 47 at the November 5, 2002, election.)
The State School Building Finance Committee checks if bonds need to be issued when the State Allocation Board asks for it, based on the need to fund school-related projects. If needed, they decide how much in bonds to issue and sell. The bonds can be issued in batches over time; they don’t have to sell all the bonds at once.
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 100615 and 100620, 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.
State Allocation Board bonds issuance school funding State School Building Finance Committee bond sales apportionments funding school projects school infrastructure financing bond authorization progressive bond funding education finance capital projects school building funds education bond sales California school bonds
(Added by Stats. 2002, Ch. 33, Sec. 30. Approved in Proposition 47 at the November 5, 2002, election.)
This law requires the state to collect extra money each year to pay off the principal and interest on certain bonds. This collection happens at the same time as regular state revenue. All officials involved in revenue collection must ensure this extra money is gathered.
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.
bond payments state revenue collection principal and interest additional sum annual collection officers' duty revenue duties bonds state finance debt repayment fiscal responsibility public bonds interest on bonds revenue process
(Added by Stats. 2002, Ch. 33, Sec. 30. Approved in Proposition 47 at the November 5, 2002, election.)
This law section states that, despite other rules, a specific amount of money will automatically be set aside from California's main financial account to cover two things: first, the payments needed each year for bonds (similar to loans) that have been issued according to this chapter; and second, any funds needed for carrying out another part of the law mentioned as Section 100640, with no time limits on when this money can be used.
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 § 100635(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 § 100635(b) The sum necessary to carry out Section 100640, appropriated without regard to fiscal years.
automatic appropriation General Fund bond payments principal and interest public financing annual allocation state treasury fiscal years Section 100640 financial obligations state bonds public treasury government funding investment in programs
(Added by Stats. 2002, Ch. 33, Sec. 30. Approved in Proposition 47 at the November 5, 2002, election.)
This law allows the State Allocation Board to ask for a loan from a special state investment account to help finance projects covered by this chapter. This loan can only be for the amount that the state has already agreed to sell in bonds but hasn't yet sold. The board needs to fill out the necessary paperwork to get and pay back the loan, and any borrowed money will go into a fund to support the specific projects under this chapter.
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.
State Allocation Board Pooled Money Investment Board interim financing Pooled Money Investment Account unsold bonds loan request project financing bond sales authorization loan repayment document execution fund allocation Chapter financing Government Code Section 16312 project funding board responsibilities
(Added by Stats. 2002, Ch. 33, Sec. 30. Approved in Proposition 47 at the November 5, 2002, election.)
This law allows the California Treasurer to handle funds from certain bonds in a way that keeps them tax-exempt under federal law. Specifically, if bonds are sold with a legal opinion stating their interest is not taxable federally, the Treasurer can set up separate accounts for those funds and earnings. The Treasurer can use those funds to comply with federal rules, like paying penalties, to ensure the bonds stay tax-exempt and possibly gain other federal benefits for California.
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.
tax-exempt bonds bond proceeds management separate accounts federal tax purposes bond counsel opinion investment earnings rebate payment federal law compliance Treasurer's authority bond tax status financial advantages state funds management penalty payment investment of bond proceeds
(Added by Stats. 2002, Ch. 33, Sec. 30. Approved in Proposition 47 at the November 5, 2002, election.)
This law allows the Director of Finance to temporarily borrow money from the General Fund to support state school facilities if needed. They can withdraw up to the amount of bonds that have been approved but not yet sold. This money goes into a special fund for school facilities. Once the bonds are sold, the borrowed money plus any interest it would have earned must be paid back to the General Fund.
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 2002 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.
Director of Finance withdrawal General Fund unsold bonds State School Building Finance Committee 2002 State School Facilities Fund bond sales school facilities funding Pooled Money Investment Account interest repayment temporary borrowing bond proceeds
(Added by Stats. 2002, Ch. 33, Sec. 30. Approved in Proposition 47 at the November 5, 2002, election.)
This law states that any extra money earned from selling bonds, like premiums or interest, must be kept in the 2002 State School Facilities Fund. This money can then be moved to the General Fund to help cover the costs of bond interest payments.
All money deposited in the 2002 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.
2002 State School Facilities Fund bond premiums accrued interest bond sales fund transfer General Fund credit to expenditures bond interest financial management school facilities funding expenditure credit government bonds investment income public school financing interest payments
(Added by Stats. 2002, Ch. 33, Sec. 30. Approved in Proposition 47 at the November 5, 2002, election.)
This section explains that existing bonds can be refinanced or refunded according to a specific set of rules in the Government Code. When voters approve the issuance of these bonds, they also approve any future refinanced bonds that replace the originals or any previous refinanced bonds.
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.
bond refinancing refunding bonds State General Obligation Bond Law voter approval refinanced bonds Government Code Article 6 original issue bonds previously issued refunding bonds bond issuances California bond law
(Added by Stats. 2002, Ch. 33, Sec. 30. Approved in Proposition 47 at the November 5, 2002, election.)
This law states that the money obtained from selling certain bonds doesn't count as "proceeds of taxes" under a specific part of the California Constitution. Therefore, the spending of this money isn't limited by the rules that apply to tax proceeds.
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 proceeds of taxes California Constitution Article XIII B spending limitations bond proceeds tax rules financial legislation budget restrictions disbursement of bond money bond authorization exemptions from tax limits financial disbursement non-tax revenue bond disbursement rules constitutional tax restrictions
(Added by Stats. 2002, Ch. 33, Sec. 30. Approved in Proposition 47 at the November 5, 2002, election.)
