This law section authorizes the issuance and sale of bonds totaling $7.329 billion, meant to fund specific purposes outlined in the chapter and to repay a government fund. These bonds are a legal obligation for California, meaning the state promises to pay them back fully, with interest. The Treasurer has the authority to sell these bonds at different times to meet financial needs as they arise.
(a)CA Education Code § 101020(a) Of the total amount of bonds authorized to be issued and sold pursuant to Chapter 1 (commencing with Section 101000), bonds in the amount of seven billion three hundred twenty-nine million dollars ($7,329,000,000) not including the amount of any refunding bonds issued in accordance with Section 101030, 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 § 101020(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.
bond issuance state funding school building finance General Obligation Bond Expense Revolving Fund Treasurer bond sale California bond obligation state financial obligation bond principal payment interest payment State School Building Finance Committee apportionment expenditures bond sale timing
(Added by Stats. 2006, Ch. 35, Sec. 16. Approved in Proposition 1D at the November 7, 2006, election.)
This section establishes the State School Building Finance Committee, which includes officials like the Governor and the Treasurer. They serve without pay and a majority are needed to make decisions. The Treasurer is the chairperson. Senators and Assembly members can advise the committee without conflict with their legislative roles. They form an interim investigating committee with specific powers and duties. The Director of Finance helps the committee and the Attorney General serves as the 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, 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 Treasurer Governor quorum Senate members Assembly members advisory participation interim investigating committee Director of Finance Attorney General Chairperson legislative roles state legal adviser committee assistance
(Added by Stats. 2006, Ch. 35, Sec. 16. Approved in Proposition 1D at the November 7, 2006, election.)
This law section outlines how certain bonds related to school facilities are to be handled in California. These bonds must follow the procedures set by the State General Obligation Bond Law, except for one specific section that doesn't apply here. It also specifies that the State Allocation Board is responsible for overseeing these bonds as part of the 2006 State School Facilities Fund.
(a)CA Education Code § 101022(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 to the extent that it conflicts with this part, 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 § 101022(b) For purposes of the State General Obligation Bond Law, the State Allocation Board is designated the “board” for purposes of administering the 2006 State School Facilities Fund.
bonds State General Obligation Bond Law State Allocation Board 2006 State School Facilities Fund bond issuance bond redemption school facilities funding financial administration state bonds education infrastructure bonds debt management public school funding bond preparation bond execution bond sale
(Added by Stats. 2006, Ch. 35, Sec. 16. Approved in Proposition 1D at the November 7, 2006, election.)
This law explains that the State School Building Finance Committee can issue bonds when the State Allocation Board requests it. These bonds help fund school building projects. The board decides if it's necessary or beneficial to issue the bonds and determines how much to sell. The bonds don't all have to be issued at once; they can be released in parts over time. Any request to issue bonds must be accompanied by details about the specific funding needs for school projects explained in other related sections.
(a)CA Education Code § 101023(a) Upon request of the State Allocation Board, 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.
(b)CA Education Code § 101023(b) A request of the State Allocation Board pursuant to subdivision (a) shall be supported by a statement of the apportionments made and to be made for the purposes described in Sections 101011 and 101012.
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(Added by Stats. 2006, Ch. 35, Sec. 16. Approved in Proposition 1D at the November 7, 2006, election.)
This law mandates that additional funds must be collected each year, along with regular state revenue, to cover the payment of both principal and interest on state bonds. All officials responsible for revenue collection are required to perform all necessary tasks to ensure these additional funds are collected.
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.
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(Added by Stats. 2006, Ch. 35, Sec. 16. Approved in Proposition 1D at the November 7, 2006, election.)
This law section allows for the allocation of funds from California's General Fund to cover the payments for any principal and interest on bonds that are issued and sold according to this chapter. These payments are mandatory as they come due. Additionally, it ensures funds are available as needed to implement Section 101028, without being restricted by the state's fiscal years.
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 § 101025(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 § 101025(b) The sum necessary to carry out Section 101028, appropriated without regard to fiscal years.
General Fund bond payments principal and interest state treasury appropriation fiscal year bonds issued Section 101028 state funding financial obligations debt service
(Added by Stats. 2006, Ch. 35, Sec. 16. Approved in Proposition 1D at the November 7, 2006, election.)
This law allows the State Allocation Board to request a loan from the Pooled Money Investment Board to fund projects in this chapter. The loan amount can't exceed the number of unsold bonds approved for sale. The board must complete all necessary paperwork to get and pay back the loan. Any loan received will be added to the fund and used as intended by the 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 unsold bonds loan request Pooled Money Investment Account Government Code Section 16312 fund allocation loan repayment borrowing process financial management chapter funding resolution project funding document execution
(Added by Stats. 2006, Ch. 35, Sec. 16. Approved in Proposition 1D at the November 7, 2006, election.)
This section allows the Treasurer to handle bond proceeds separately if the bonds are sold with a tax-exempt interest opinion, which means the interest isn't taxed federally. The Treasurer can invest the bond money separately and use the earnings to meet federal requirements, maintain the tax-exempt status, or gain other benefits under federal law.
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. 2006, Ch. 35, Sec. 16. Approved in Proposition 1D at the November 7, 2006, election.)
This law allows the Director of Finance to take money from California's General Fund, up to the amount of approved but unsold bonds, for projects related to school facilities. The money taken out should be put into a special fund called the 2006 State School Facilities Fund. Later, once bonds are sold, the money must be paid back to the General Fund along with the interest it would have earned if it had been invested.
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 2006 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. 2006, Ch. 35, Sec. 16. Approved in Proposition 1D at the November 7, 2006, election.)
Money from premiums and accrued interest from bonds sold and placed in the 2006 State School Facilities Fund can be transferred to the General Fund. This money is meant to help cover bond interest expenses.
All money deposited in the 2006 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. 2006, Ch. 35, Sec. 16. Approved in Proposition 1D at the November 7, 2006, election.)
This law explains that bonds can be refinanced using specific procedures from another set of laws called the State General Obligation Bond Law. When voters approve the issuance of these bonds, they're also approving any future bonds needed to replace or refund them.
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. 2006, Ch. 35, Sec. 16. Approved in Proposition 1D at the November 7, 2006, election.)
This law states that the money raised from selling bonds, as outlined in this chapter, is not considered 'proceeds of taxes' according to Article XIII B of the California Constitution. This means that the spending of this money isn't limited by the restrictions that usually apply to tax proceeds under that article.
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. 2006, Ch. 35, Sec. 16. Approved in Proposition 1D at the November 7, 2006, election.)
