This section allows the sale of up to $1.5 billion in bonds, not including certain refunding bonds, to fund specific projects outlined in the chapter. The money is intended to support higher education facility needs and reimburse a specific government fund for expenses. The Treasurer is responsible for managing the sale of these bonds under the guidance of the Higher Education Facilities Finance Committee, ensuring that funding is available at the right times to meet necessary costs.
(a)CA Education Code § 101442(a) Of the total amount of bonds authorized to be issued and sold pursuant to Chapter 1 (commencing with Section 101400), bonds in the total amount of one billion five hundred million dollars ($1,500,000,000), not including the amount of any refunding bonds issued in accordance with Section 101451, 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.
(b)CA Education Code § 101442(b) Pursuant to this section, the Treasurer shall sell the bonds authorized by the Higher Education Facilities Finance Committee established pursuant to Section 67353 at any different times necessary to service expenditures required by the apportionments.
bonds issuance higher education facilities Treasurer duties funding projects General Obligation Bond Expense Higher Education Facilities Finance Committee apportionments bond sales timing reimbursement fund capital projects funding public education infrastructure Government Code Section 16724.5
(Added by Stats. 2024, Ch. 81, Sec. 28. (AB 247) Approved in Proposition 2 at the November 5, 2024, election. Effective November 6, 2024.)
This section of the law explains how bonds will be handled for the 2024 Community College Capital projects. These bonds are subject to the rules of the State General Obligation Bond Law, with certain exceptions. Each state agency in charge of using the bond funds for community college projects acts like a board, overseeing how the money is spent. These bonds will provide funding to help construct or develop facilities for California Community Colleges, whether they are existing campuses, new ones, or shared facilities with other institutions.
(a)CA Education Code § 101443(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). The provisions of that law, including all acts amendatory thereof and supplementary thereto, apply to those authorized bonds and this chapter, and are hereby incorporated into this chapter
as though set forth in full within this chapter, except that subdivisions (a) and (b) of Section 16727 of the Government Code shall not apply to the bonds authorized by this chapter.
(b)CA Education Code § 101443(b) For purposes of the State General Obligation Bond Law, each state agency administering an appropriation of the 2024 Community College Capital Outlay Bond Fund is designated as the “board” for projects funded pursuant to this chapter.
(c)CA Education Code § 101443(c) The proceeds of the bonds issued and sold pursuant to this chapter shall be available for the purpose of funding aid to the California Community Colleges for construction on existing or new campuses, and their respective off-campus centers and joint use and intersegmental facilities, as set forth in this chapter.
Community College Capital Outlay 2024 bond funds state agency board campus construction funding California Community Colleges bond proceeds construction projects off-campus centers intersegmental facilities bond issuance bond management college funding state bond law facility development education infrastructure
(Added by Stats. 2024, Ch. 81, Sec. 28. (AB 247) Approved in Proposition 2 at the November 5, 2024, election. Effective November 6, 2024.)
This law section allows the Higher Education Facilities Finance Committee to issue bonds, but only when deemed necessary to fund projects that have been approved by the Legislature in the annual Budget Act. The committee decides whether to issue these bonds and how much to issue based on a resolution. It also allows for issuing bonds in stages, meaning they don't have to sell all authorized bonds at once.
The Higher Education Facilities Finance Committee established pursuant to Section 67353 shall authorize the issuance of bonds under this chapter only to the extent necessary to fund the related apportionments for the purposes described in this chapter that are expressly authorized by the Legislature in the annual Budget Act. Pursuant to that legislative direction, the committee shall determine by resolution whether or not it is necessary or desirable to issue bonds
authorized pursuant to this chapter in order to carry out the purposes described in this chapter 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.
Higher Education Facilities Finance Committee bond issuance annual Budget Act funding apportionments Legislature authorization resolution issue bonds successive bond issuance bond sale stages bonds for facilities finance committee resolutions selling bonds progressively
(Added by Stats. 2024, Ch. 81, Sec. 28. (AB 247) Approved in Proposition 2 at the November 5, 2024, election. Effective November 6, 2024.)
This law requires the collection of extra money each year, alongside the state's other revenue, specifically to pay off the principal and interest on bonds. All officials responsible for collecting state revenue must do everything necessary to collect 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. 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.
state revenue collection bond repayment principal and interest additional sum collection officer duties state revenue duties annual collection revenue collection process funding bonds education funding revenue obligations state bonds revenue allocation financial obligations government funding processes
(Added by Stats. 2024, Ch. 81, Sec. 28. (AB 247) Approved in Proposition 2 at the November 5, 2024, election. Effective November 6, 2024.)
This law section states that, despite certain rules in the Government Code, money from California's General Fund is allocated to ensure that bond debts under this chapter are paid on time. This includes the necessary amount to cover both the principal (the initial loan amount) and the interest on these bonds as they come due. Additionally, it provides funds to execute another particular section, Section 101449, without being restricted to specific 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 equals the total of the following:
(a)CA Education Code § 101446(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 § 101446(b) The sum necessary to carry out Section 101449, appropriated without regard to fiscal years.
General Fund appropriation bond principal payment bond interest payment State Treasury government funding Section 101449 execution fiscal year independence bond debt service annual bond sum state financial obligations public bond financing California education funding state financial management secured bond payments public finance statute
(Added by Stats. 2024, Ch. 81, Sec. 28. (AB 247) Approved in Proposition 2 at the November 5, 2024, election. Effective November 6, 2024.)
This section allows the board responsible for higher education finance to borrow money from the Pooled Money Investment Account or through other interim financing options to support community college projects. The loan amount can't exceed the unsold bonds approved for sale, minus any loans already taken and not repaid. The borrowed funds will be placed in a designated bond fund for use in college facility projects, and the board must handle all documentation for obtaining and repaying the loan.
The board, as defined in subdivision (b) of Section 101443, 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 Higher Education Facilities Finance Committee, by resolution, has
authorized to be sold for the purpose of carrying out this chapter excluding any refunding bonds authorized pursuant to Section 101451, less any amount loaned and not yet repaid pursuant to this section and withdrawn from the General Fund pursuant to Section 101249 and not yet returned. The board, as defined in subdivision (b) of Section 101443, 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 2024 California Community College Capital Outlay Bond Fund to be allocated by the board in accordance with this chapter.
Pooled Money Investment Account interim financing unsold bonds Higher Education Facilities Finance Committee community college projects loan repayment California Community College Capital Outlay Bond Fund higher education financing college facility projects bond fund allocation Pooled Money Investment Board loan documentation refunding bonds General Fund withdrawal capital outlay
(Added by Stats. 2024, Ch. 81, Sec. 28. (AB 247) Approved in Proposition 2 at the November 5, 2024, election. Effective November 6, 2024.)
This law is about how the state of California can handle bonds sold with certain federal tax benefits. When bonds are sold saying their interest is tax-exempt, the Treasurer can manage separate accounts for the money from those bonds. The Treasurer can spend the bond money to keep the tax-exempt status, pay federal penalties, or get other federal tax advantages.
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 under designated conditions or is otherwise entitled to any federal tax advantage, 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.
Treasurer bonds federal tax advantage tax-exempt status bond proceeds investment earnings rebate payment penalty payment federal law compliance separate accounts bond counsel opinion gross income exclusion State General Obligation Bond Law interest exclusion federal tax purposes
(Added by Stats. 2024, Ch. 81, Sec. 28. (AB 247) Approved in Proposition 2 at the November 5, 2024, election. Effective November 6, 2024.)
The Director of Finance in California has the authority to take money from the General Fund, up to the amount of unsold bonds (minus some exceptions), to support higher education facilities projects. This money goes into the 2024 California Community College Capital Outlay Bond Fund and must be paid back to the General Fund with interest, once the bonds are sold.
Additionally, any funding requests from the California Community Colleges must include a five-year capital plan showing statewide priorities, especially focusing on retrofitting buildings to reduce earthquake risks.
(a)CA Education Code § 101449(a) For 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, excluding any refunding bonds authorized pursuant to Section 101451, less any amount loaned and not yet repaid pursuant to Section 101447 and withdrawn from the General Fund pursuant to this section and not yet returned, that have been authorized by 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 2024 California Community College Capital Outlay Bond 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 purposes of carrying out this chapter.
(b)CA Education Code § 101449(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 this chapter by the California Community Colleges shall be accompanied by a five-year capital outlay plan that reflects the needs and priorities of the community college system and is prioritized on a statewide basis. Requests shall include a schedule that prioritizes the seismic
retrofitting needed to significantly reduce, in the judgment of the particular college, seismic hazards in buildings identified as high priority by the college.
California Community Colleges General Fund withdrawal unsold bonds Higher Education Facilities Finance Committee 2024 California Community College Capital Outlay Bond Fund bond repayment capital outlay plan seismic retrofitting earthquake safety educational facilities financing statewide capital priorities Pooled Money Investment Account five-year plan seismic hazards buildings safety
(Added by Stats. 2024, Ch. 81, Sec. 28. (AB 247) Approved in Proposition 2 at the November 5, 2024, election. Effective November 6, 2024.)
This section outlines how money in the 2024 California Community College Capital Outlay Bond Fund, specifically from bond premiums and interest, should be handled. Most of this money should be reserved for contributing to the state's General Fund to cover bond interest costs. However, the premium can first be used to pay for the cost of issuing the bonds before transferring any remaining money to the General Fund.
All moneys deposited in the 2024 California Community College Capital Outlay Bond Fund that are derived from premium and accrued interest on bonds sold pursuant to this chapter shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest, except those amounts derived from premium may be reserved and used to pay the cost of the bond issuance before any transfer to the General
Fund.
California Community College Capital Outlay Bond Fund bond premiums bond interest General Fund transfer capital outlay accrued interest bond issuance costs bond fund management interest expenditure credit premium reserve
(Added by Stats. 2024, Ch. 81, Sec. 28. (AB 247) Approved in Proposition 2 at the November 5, 2024, election. Effective November 6, 2024.)
This law explains that bonds issued under this chapter can be refinanced or 'refunded' under specific laws. When voters approve these bonds, they also approve any new bonds used to refinance old ones. These refinanced bonds can be legally settled according to guidelines set in the bond's authorizing resolution.
The bonds issued and sold pursuant to this chapter 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. Any bond refunded with the proceeds of refunding bonds as authorized by this section may be legally defeased to the extent permitted by law in the manner and to the extent set forth in the resolution, as amended from time to time, authorizing that refunded bond.
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(Added by Stats. 2024, Ch. 81, Sec. 28. (AB 247) Approved in Proposition 2 at the November 5, 2024, election. Effective November 6, 2024.)
This section clarifies that money earned from selling bonds under this chapter is not considered tax revenue. Therefore, this money can be spent without being restricted by the rules that normally apply to tax revenues under the California Constitution.
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, and the disbursement of these proceeds is not subject to the limitations imposed by that article.
bond proceeds California Constitution Article XIII B tax revenue bond sales tax limitations disbursement government finance spending limits public funding constitutional limitations non-tax revenue budget regulations fiscal policy
(Added by Stats. 2024, Ch. 81, Sec. 28. (AB 247) Approved in Proposition 2 at the November 5, 2024, election. Effective November 6, 2024.)
