This law section authorizes the issuance of up to $6.7 billion in bonds by the State of California. These bonds are intended to fund projects under this chapter and reimburse specific expenses. The state guarantees the repayment of these bonds, pledging its full financial backing. The State School Building Finance Committee will oversee the sale of these bonds, with the Treasurer arranging sales as needed to support related expenditures.
(a)CA Education Code § 100425(a) Bonds in the total amount of six billion seven hundred million dollars ($6,700,000,000), not including the amount of any refunding bonds issued in accordance with Section 100444, 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 § 100425(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.
bonds issuance State of California 6.7 billion dollars bond funding State School Building Finance Committee education funding bond sales General Obligation Bond Expense bond repayment California Treasurer state-backed bonds public education projects school construction funding bond apportionments financial obligations
(Added by Stats. 1998, Ch. 407, Sec. 16. Approved in Proposition 1A at the November 3, 1998, election.)
This section describes the State School Building Finance Committee, which includes several state officials like the Governor and the Treasurer. The Treasurer leads the committee, and most members must be present to make decisions. State Senators and Assembly Members join the meetings in an advisory role, but can't let it interfere with their legislative duties. They also act as an interim investigating committee for issues related to this chapter. The Director of Finance provides needed support, and the Attorney General serves as the committee's legal advisor.
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 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 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 interim investigating committee advisory role legal advisor Attorney General committee assistance Treasurer chairperson
(Added by Stats. 1998, Ch. 407, Sec. 16. Approved in Proposition 1A at the November 3, 1998, election.)
This law section details the process for handling bonds related to school facilities. These bonds are governed by the State General Obligation Bond Law, with the exception of one specific section not applying. The law essentially ensures that bonds are managed according to established rules for state bonds in general. Additionally, the State Allocation Board is specifically responsible for overseeing the 1998 State School Facilities Fund in this context.
(a)CA Education Code § 100430(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 in this chapter as though set forth in full in this chapter.
(b)CA Education Code § 100430(b) For purposes of the State General Obligation Bond Law, the State Allocation Board is designated the “board” for purposes of administering the 1998 State School Facilities Fund.
bonds State General Obligation Bond Law State Allocation Board school facilities 1998 State School Facilities Fund bond preparation bond execution bond issuance bond redemption bond administration state bonds state school funding public school infrastructure government bonds education funding
(Added by Stats. 1998, Ch. 407, Sec. 16. Approved in Proposition 1A at the November 3, 1998, election.)
This section explains that the State School Building Finance Committee can decide to issue bonds when the State Allocation Board requests it, to ensure there is enough funding for school building projects as outlined in previous sections. The committee evaluates whether bonds are needed and, if so, how many should be issued. They can issue these bonds in phases, which means not all bonds have to be sold 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 100415 and 100420, 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 State School Building Finance Committee bonds issuance apportionments school building projects funding progressive issuance bonds sale capital funding phased release of bonds school construction financing
(Added by Stats. 1998, Ch. 407, Sec. 16. Approved in Proposition 1A at the November 3, 1998, election.)
This law section requires the collection of additional funds each year, alongside other state revenues, specifically to cover the payments on bonds, including both the principal and interest. It's the responsibility of all relevant state officers to ensure these additional sums are collected properly.
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 which is necessary to collect that additional sum.
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(Added by Stats. 1998, Ch. 407, Sec. 16. Approved in Proposition 1A at the November 3, 1998, election.)
This law states that money from the state's General Fund is set aside to cover specific financial obligations related to bonds. It ensures that there will always be enough funds each year to pay off both the principal and interest on bonds issued for the purposes of this chapter. Additionally, it provides funds needed to fulfill the requirements of another section, 100440, regardless of the fiscal year.
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 § 100435(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 § 100435(b) The sum necessary to carry out Section 100440, appropriated without regard to fiscal years.
General Fund appropriation bond payments principal and interest state treasury funds Section 100440 fiscal obligations annual sum necessity non-fiscal year appropriation financial management state bond responsibilities
(Added by Stats. 1998, Ch. 407, Sec. 16. Approved in Proposition 1A at the November 3, 1998, election.)
This law allows the State Allocation Board to request a loan from the Pooled Money Investment Board to help fund projects described in this chapter. The loan can't exceed the amount of unsold bonds intended for these projects. The board must complete any necessary paperwork to secure and repay the loan, and the loaned money will be added to the fund for these projects.
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 unsold bonds loan request Section 16312 Government Code project funding resolution authorization documentation loan deposit fund allocation
(Added by Stats. 1998, Ch. 407, Sec. 16. Approved in Proposition 1A at the November 3, 1998, election.)
This law allows the Treasurer to handle bonds in a way that maintains their tax-exempt status under federal law. If bonds are sold with a specific legal opinion stating that their interest is tax-free for federal income, the Treasurer can keep separate accounts for the bond proceeds and any earnings from investments. These funds can be used to pay any necessary amounts to comply with federal law and keep the bonds' tax benefits.
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.
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(Added by Stats. 1998, Ch. 407, Sec. 16. Approved in Proposition 1A at the November 3, 1998, election.)
This law allows the Director of Finance to temporarily use money from the state's General Fund up to the amount of authorized but unsold bonds. This money is used to support the objectives of the chapter and is deposited into the 1998 State School Facilities Fund. Later, once the bonds are sold, the borrowed amount plus any potential interest it would have earned is returned 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 1998 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.
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(Added by Stats. 1998, Ch. 407, Sec. 16. Approved in Proposition 1A at the November 3, 1998, election.)
This law specifies that any extra money earned from premiums or interest on bonds that are sold should stay in the 1998 State School Facilities Fund. This money can then be moved to the General Fund to help pay for bond interest expenses.
All money deposited in the 1998 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.
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(Added by Stats. 1998, Ch. 407, Sec. 16. Approved in Proposition 1A at the November 3, 1998, election.)
This law section allows for the refinancing of certain state bonds as per an existing state procedure. It means that when voters approve the issuance of these bonds, they also approve any future refinancing of them or of bonds refinanced earlier.
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.
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(Added by Stats. 1998, Ch. 407, Sec. 16. Approved in Proposition 1A at the November 3, 1998, election.)
This section explains that money raised from selling bonds under this chapter isn't considered "proceeds of taxes" under the California Constitution. This means there's no restriction on how this money can be spent, unlike tax revenue, which has more rules.
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.
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(Added by Stats. 1998, Ch. 407, Sec. 16. Approved in Proposition 1A at the November 3, 1998, election.)
