WGLA Initiatives Nov 2006 Prop 1D Full Extract


Proposition 1D			00.00 10/05

Full Extract

Submitted as: "Education Facilities: Kindergarten-University Public Education Facilities Bond Act of 2006"

Type: In Proposition 1D, Amendments to the Education Code, and in the Act (AB127) in which it is embedded, also changes to the Government Code, the Statutes of 2001 and the Statutes of 2002.
Subject: $10.416 Billion Bond to provide aid to school districts, county superintendents of schools, county boards of education, the California Community Colleges, the University of California, the Hastings College of the Law and the California State University, to construct and modernize education facilities.
Submitters: Nunez, California Legislature, AB 127
	Senate Vote: 29 Yes, 8 No (of 40)
	Assembly Vote: 58 Yes, 12 No (of 80)

Supporting Organization:
	Name:	The Rebuild California Plan 1127 11th Street, Suite 950 Sacramento, CA 95814
	Email:
	Web Site: www.plan4ourfuture.org
	Phone: - 916.443.5900

Opposing Organization:
	Name:	California Taxpayer Protection Committee 9971 Base Line Road Elverta, CA 95626-9411
	Email: info at protecttaxpayers.com
	Web Site: www.protecttaxpayers.com
	Phone: (916) 991-9300

Section 1

Amends Section 17070.40 of the Education Code

17070.40 (a -c) Existing text left mostly unchanged.

17070.40 (d) (1) Establishes the 2006 State School Facilities Fund in the State Treasury, for continuous appropriation, without regard to fiscal years and contrary to Section 13340 of the Government Code. [13340 says "on and after July 1, 2007, no moneys in any fund that, by any statute other than a Budget Act, are continuously appropriated without regard to fiscal years, may be encumbered unless the Legislature, by statute, specifies that the moneys in the fund are appropriated for encumbrance. "]
17070.40 (d) (2) The board is given the power to apportion money from this Fund, regardless of its source. []
17070.40 (d) (3) Funds may be apportioned in amounts up to the total of money currently deposited in this Fund and bonds authorized, but not yet sold.
17070.40 (d) (4) Additional apportionments of money may be made from this Fund, regardless of whether previous apportionments have been fully funded.

Section 2

Adds Section 17070.96 to the Education Code

17070.96 Requires that, in order to get funding under this chapter, school districts must certify that they have at least considered the use of designs and materials that use energy efficiently.

Section 3

Adds Section 17072.11 to the Education Code

17072.11 (a) Between July 1, 2006 and January 1, 2008:
17072.11 (a) (1) The per-unhoused-student new construction grant eligibility for elementary and middle-school pupils is increased by 7%, from $5200 to $5564 for elementary pupils and from $5500 to $5885 for middle-school pupils.
17072.11 (a) (2) The per-unhoused-student new construction grant eligibility for high-school pupils is increased by 7%, from $7200 to 7704.
17072.11 (a) (3) The board will conduct an "analysis of the relationship" between the per-unhoused-student grant eligibility and the per-pupil construction cost of new school construction.

17072.11 (b) On or following January 1, 2008, the board shall change the per-unhoused-student grant eligibility by amounts it considers necessary in order to match the costs of new school construction, limited to a maximum increase of 6% each fiscal year.

Section 4

Amends Section 17072.35 of the Education Code

17072.35 [This is a lengthy list of allowed uses for grants for new construction. The amendment adds a paragraph allowing the grant to be used for the costs of design and materials that promote the efficient use of energy.]

Section 5

Amends Section 17075.10 of the Education Code

17075.10 (a) A school district may apply for hardship assistance in extraordinary circumstances. [The amendment specifically adds the need to repair earthquake prone buildings as an extraordinary circumstance.]

17075.10 (b) Schools applying for hardship assistance must satisfy either (1) or (2) below:
17075.10 (b) (1) Show both of the following:
	(A) That due to extreme hardship the school district has unmet need for pupil housing.
	(B) That the school district has no other financial recourse, attempts at using the local debt capacity having failed.
17075.10 (b) (2) Due to circumstances beyond the control of the school district, excessive costs need to be incurred. [The amendment says that, if the work needed is to repair earthquake prone buildings, the funds may come 50% from funds derived from "any bond approved by the voters after January 1, 2006." If the repairs would cost more than 50% of the cost of a new building, the funds may be used to construct and entirely new school.]

17075.10 (c) The board is instructed to review increased costs associated with urban construction and may adjust the per-pupil grant. Regulations governing the use of this urban construction factor may be adopted.

Section 6

Amends Section 17078.52 of the Education Code

[This is left mostly unchanged, except to add 17078.52 (b) (3)]
17078.52 (b) (3) Establishes the 2006 Charter School Facilities Account within the 2006 State School Facilities Fund. A certain portion of the proceeds of the Measure 1D bonds, if passed, shall be deposited into this Account, for continuous appropriation, contrary to Section 13340. [13340 says "on and after July 1, 2007, no moneys in any fund that, by any statute other than a Budget Act, are continuously appropriated without regard to fiscal years, may be encumbered unless the Legislature, by statute, specifies that the moneys in the fund are appropriated for encumbrance. "]

Section 7

Amends Section 17078.53 of the Education Code

[The Section covers applications by Charter schools for "establishing school facilities". Except for extensive renumbering, this is left mostly unchanged, except to add and revise the paragraphs shown below.]
17078.53 (d) The preliminary application must include one of the following:
17078.53 (d) (1) If for a petition submitted by a district on behalf of a charter school, of the number of "unhoused pupils" that will be accommodated by the charter school.
17078.53 (d) (2) If for a petition submitted by the charter school on its own behalf, a statement by the school board of the district in which the charter school is located, of the number of "unhoused pupils" that will be accommodated by the charter school.

17078.53 (e) Prior to submitting the application, the charter school and school district shall consider using existing school facilities.

17078.53 (g) (1) Unchanged [A process shall be established to ensure that attendance for charter schools within a school district is counted as per-pupil eligibility for that district and only that district.]
17078.53 (g) (2)
	(A) The pupil count for the charter school is not to be counted as part of the standard formula for applying for new school construction funding.
	(B) The number of "unhoused" pupils will be counted as part of the standard formula for applying for new school construction funding.

Section 8

Amends Section 17078.54 of the Education Code

[The Section is mostly unchanged, except to allow "rehabilitation" as well as new construction, to the allowable uses of funding grants for charter schools.]

Section 9

Amends Section 17078.56 of the Education Code

[The Section, which sets criteria for approval of charter school construction projects, is mostly unchanged, except to remove 17078.56 (c), which required the California School Finance Authority to set funding caps.]

Section 10

Amends Section 17078.58 of the Education Code

[The Section, which talks about funding, says that rehabilitation funding shall not exceed what would be the costs for a new building.]

Section 11

Adds Article 13 to Chapter 12.5 of Part 10 of the Education Code

ARTICLE 13 Career Technical Education Facilities Program

17078.70 (a) Defines "reconfiguration", as modification of any structure such that it enhances opportunities for pupils in order to provide them with skills necessary for high-demand technical careers.

17078.70 (b) "Reconfiguration" may include "limited" new construction to support reconfiguration.

17078.72 (a) Establishes the Career Technical Education Facilities Program to support reconfiguration.

17078.72 (b) Requires the State Department of Education, along with the Chancellor of the Community Colleges, the Labor and Workforce Development Agency and "industry groups", to develop criteria and outcomes necessary to evaluate the Program.

17078.72 (c) Indicates that the Program will be based on grant applications.

17078.72 (d) Grants are to be allocated on a per-square-foot basis.

17078.72 (e) New construction grants per project per school are limited to $3 million, allocated only to high schools that have an active Career Technical Advisory Committee by one of the following methods:
17078.72 (e) (1) For a stand alone project on a square foot basis, per the criteria to be developed under (b).
17078.72 (e) (2) For new school projects, as a supplement to the per pupil allocation defined in 17072.10. []

17078.72 (f) Modernization grants per project per school are limited to $1.5 million, to high schools or joint power authorities that have an active Career Technical Advisory Committee. For high schools, this will be supplemental to the allocations of section 17074.10. []

17078.72 (g) (1) Funds granted under (d), (e), or (f) above must be matched by the school district form local resources, which may include private industry groups, the school district, or a joint powers authority.
17078.72 (g) (2) The district need not show that it has unhoused pupils or buildings older than 25 years in order to receive a grant.

17078.72 (h) The local funds may be paid over time, per a repayment schedule consistent with Section 17078.57. The local fund contribution cannot be waived.

17078.72 (i) Applications must meet the criteria of (b) and must have all of the following:
17078.72 (i) (1) A Career Technical Education Plan for each course of study that will use the space.
17078.72 (i) (2) Projections of pupil enrollment.
17078.72 (i) (3) Identification of participating feeder schools, industry partners, and community colleges.
17078.72 (i) (4) Evidence that the above participants have approved the program.
17078.72 (i) (5) A method by which accountability for enrollments and outcomes will be maintained.
17078.72 (i) (6) Evidence of coordination with feeder schools, middle schools and high schools to ensure that career technical education offerings are complemented.
17078.72 (i) (7) Evidence that completion of the project will cause "the local education agency to meet all of its obligations under Section 51228.

17078.72 (j) Applications are required to take into account 5 listed weighting factors.

17078.72 (k) The Office of Public School Construction must develop, and the board approve, regulations to implement this article by April 19, 2007. The board may apply these regulations on an emergency basis for a maximum of 12 months after which standard procedures will be applied.

Section 12

Adds Article 14 to Chapter 12.5 of Part 10 of the Education Code

ARTICLE 14 Overcrowding Relief Grants

17079 (a) Defines an overcrowded school as one in which the pupil population is at least 175% of the population density recommended by the Superintendent as of January 1, 2006, adjusted by the following factors:
17079 (a) (1) Reduced to take into account multistory construction.
17079 (a) (2) Reduced to take into account new construction projects per 17078.10

17079 (b) Requires the board to adopt regulations to determine the above adjustments.

17079.10 (a) Defines an "eligible pupil" as one who is housed in a portable classroom, except those used for the Class Size Reduction Program as described starting at 17072.10.

17079.10 (b) Requires the board to provide relief grants to districts based on 17072.10, with these limitations:
17079.10 (b) (1) Grants are to be given only for a number of students whose removal from the calculation would get the student count down to the 150% level set by the Superintendent.
17079.10 (b) (2) The number of grants must not exceed the number of students housed in portable classrooms.

17079.20 (a) Grants must be used to replace portable classrooms with new school construction classrooms.

17079.20 (b) The board will create a list of projects eligible for funding and must approve grants twice a year.

17079.20 (c) Applicant school districts must comply with same conditions ordinarily applying to new construction funding.

17079.20 (d) None of this funding may be applied to the use of portable classrooms.

17079.20 (e) If funds available are less than the amount necessary to fund all applications, priority will be given to to the schools with the greatest overcrowding.

17079.30 (a) Both of the following will be required in order to receive these grants:
17079.30 (a) (1) Within six months of occupying the new facilities that were paid for by these grants, the school district will remove the portable classrooms which they replaced.
17079.30 (a) (2) The total number of portable classrooms within the district must be reduced.

17079.30 (b) The conditions of (a) do not preclude the district from using the portable classrooms for child care or preschool programs.

17079.30 (c) This section does not apply to schools operating on double session schedules in an elementary school district in a county of the second class, per Section 28023 of the Government Code. []

Section 13

Amends Section 17261 of the Education Code

17261 The State Allocation Board shall obtain school plans. [The amendment allows plans to include consideration of the use of designs and materials that use energy efficiently.]

Section 14

Adds Section 81052 to the Education Code to say the following:

81052 After July 1, 2006, work on school buildings shall be done according to the Field Act, per Section 81130.3, or according to the California Building Standards Code, as adopted by the California Building Standards Commission.

Section 15

Amends Section 81130.3 of the Education Code to say the following:

81130.3 This article, together with Article 3, starting at Section 17280, and Article 6, starting with Section 17365 of Chapter 3 of Part 10.5 and Article 3, starting with Section 81050, shall be known and may be cited as the "Field Act". [The italicized text is added.]

Section 16

Adds Part 69 to the Education Code

Part 69 Kindergarten-University Public Education Facilities Bond Act of 2006

	Chapter 1 General

101000 This part shall be known and may be cited as the Kindergarten-University Public Education Facilities Bond Act of 2006.

101001 Amendments count.

101002 (a) Authorizes the sale of bonds in the amount of $10.416 billion for the purposes of this part, and the full faith and credit of the State of California is pledged for their repayment.

101002 (b) Per this section, the Treasurer shall sell the bonds.

	Chapter 2 Kindergarten Through 12th Grade

	Article 1 Kindergarten Through 12th Grade School Facilities Program Provisions

101010 The proceeds of bonds authorized by Article 2 below shall be deposited in the 2006 State School Facilities Fund [Created in the EC at Section 17070.40 (d) by AB127; see Section 1 above] and allocated by the State Allocation Board as required by this chapter.

101011 All money deposited to the 2006 State School Facilities Fund shall be available to provide aid to school districts, county superintendents of schools, and county boards of education, and to reimburse the General Obligation Bond Expense Revolving Fund.

101012 (a) Some of the Bond proceeds authorized by Chapter 1 will be allocated as follows:
101012 (a) (1) $1.9 billion for new construction of school facilities, consistent with the Leroy F. Greene School Facilities Act of 1998 [see Section 17070.10 et. seq. of the Education Code]. Up to 10.5% of this shall be available for seismic work.
101012 (a) (2) $500 million for school facilities for charter schools, consistent with the Charter Schools Facility Program. [see EC Section 17078.52, et seq.]
101012 (a) (3) $3.3 billion for modernization of school facilities, consistent with the Greene Act.
101012 (a) (4) $500 million for facilities for career technical education programs. [Per the Career Technical Education Facilities Program which was added to the EC by AB127. See Section 11 above.]
101012 (a) (5) Of the amounts allocated by (1) and (3) above, up to $200 million must go specifically for incentives to create smaller learning communities and small high schools. [Per Chapter 894 of the Statutes of 2004.]
101012 (a) (6) $29 million relating to joint use projects. [EC Section 17077.40, et. seq.]
101012 (a) (7) $1 billion for new construction funding to severely overcrowded school sites. [Per the creation of Overcrowding Relief Grants, which were added to the EC by AB127. See Section 12 above.]
101012 (a) (8) $100 million for incentive grants to motivate the use of energy efficient construction practices. [Per EC 17070.96, added by AB127. See Section 2 above.].

101012 (b) Funds allocated under (a) (3) above may be used only for the following:
101012 (b) (1) The purchase and installation of air conditioning equipment, and related costs.
101012 (b) (2) Construction projects or the purchase of furniture or equipment designed to increase school security or playground safety.
101012 (b) (3) The identification, assessment or abatement of hazardous asbestos.
101012 (b) (4) Project funding for high-priority roof replacement projects.
101012 (b) (5) Any other modernization of facilities consistent with the Greene Act.

101012 (c) Funds allocated under (a) (1) above may also be used by county boards of education for funding classrooms for severely handicapped pupils, or for classrooms for county community school pupils.

101012 (d) (1) The amounts specified in (a) (1-8) may be amended by the Legislature, but only by one of these two methods:
	(A) By statute, passed by a roll call vote of 2/3 in each house of the Legislature.
	(B) By statute that becomes effective when passed by the voters.
101012 (d) (2) Amendments may reallocate the amounts to be spent, but may not increase or decrease the total amount to be spent over all the categories.

101012 (e) Funds per this section may be used to acquire school facilities.

	Article 2 Kindergarten Through 12th Grade School Facilities Fiscal Provisions

101020 (a) Per the authorization granted in Chapter 1, bonds in the amount of $7.329 billion may be issued and sold to provide a fund to carry out the purposes of this chapter and to reimburse the General Obligation Bond Expense Revolving Fund, and the full faith and credit of the State of California is pledged for their repayment.

101020 (b) Per this section, the Treasurer shall sell the bonds.

101021 The State School Building Finance Committee is continued in existence. This Committee consists of the Governor, the Controller, the Treasurer, the Director of Finance, and the Superintendent, or their representatives. In addition, they shall be advised by 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.

101022 (a) The bonds will be handled in accord with the State General Obligation Bond Law.

101022 (b) For the purposes of that law, the State Allocation Board is the designated "board" for purposes of administering the 2006 State School Facilities Fund.

101023 (a) Bonds may be issued upon request of the State Allocation Board.

101023 (b) A request from the State Allocation Board must be supported by a statement of the way the funds will be distributed, consistent with 101011 and 101012.

101024 Demands that "there shall be collected annually, ... in addition to the ordinary revenue of the state", "a sum of money ... sufficient to pay the principal of, and interest on" the bonds.

101025 Contrary to Section 13340 of this Code, this initiative immediately withdraws from the General Fund an amount equal to the sum of (a) the principal and interest on the bonds, when they become due and payable, and (b) any additional funds required to carry out 101028 below. [13340 says "on and after July 1, 2007, no moneys in any fund that, by any statute other than a Budget Act, are continuously appropriated without regard to fiscal years, may be encumbered unless the Legislature, by statute, specifies that the moneys in the fund are appropriated for encumbrance. "]

101026 The State Allocation Board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account per Section 16312 of the Government Code. The amount requested may not exceed the amount of bonds authorized to be sold but not yet actually sold. [The PMIB, consisting of the Controller, Treasurer and Director of Finance, is created and discussed starting at 16480 of the Government Code. The PMIA holds state funds available for expenditure but not currently committed.]

101027 The Treasurer will take all steps possible to maintain the tax-exempt status of these bonds.

101028 The Director of Finance may withdraw from the General Fund any amount less than the amount of bonds authorized to be sold but not yet actually sold. Amounts withdrawn MUST be deposited to the 2006 State School Facilities Fund. The sale of bonds must then be used to repay the amount with interest.

101029 Any interest paid on the bonds shall be transferred to the General Fund as a credit to expenditures for bond interest.

101030 Bonds may be refunded. Voter approval of this initiative constitutes approval of refunding bonds. ["Refund" means to pay off an existing bond by taking out a new one, for example at a lower interest rate.]

101031 The Legislature declares revenues from this bond are not "proceeds of taxes" and therefore not liable to the limitations imposed by Article XIII B of the state Constitution [Prop 13]

	Chapter 3 California Community College Facilities

	Article 1 General

101032 (a) Establishes the 2006 California Community College Capital Outlay Bond Fund in the State Treasury.

101023 (b) The Higher Education Facilities Finance Committee is authorized to create a debt persuant to this chapter in order to provide funds for the California Community Colleges.

	Article 2 California Community College Program Provisions

101033 (a) From the bonds defined at Article 3, 101034 below, $1.507 billion dollars shall be deposited in the 2006 California Community College Capital Outlay Bond Fund, for use when appropriated.

101033 (b) Affirms that the purpose of this article is to assist "in meeting the capital outlay financing needs of the California Community Colleges".

101033 (c) Lists possible uses of the bond money.

	Article 3 California Community College Fiscal Provisions

101034 (a) Per the authorization granted in Chapter 1, bonds in the amount of $1.507 billion may be issued and sold to provide a fund to carry out the purposes of this chapter and to reimburse the General Obligation Bond Expense Revolving Fund, and the full faith and credit of the State of California is pledged for their repayment.

101034 (b) The Legislature expects the California Community Colleges, as part of their planning capital outlay process, to consider the inclusion of facilities that could be used by other segments of higher education, and to prepare a report, due May 15th of each year, showing their findings.

101034 (c) Per this section, the Treasurer shall sell the bonds.

101034.5 (a) The bonds will be handled in accord with the State General Obligation Bond Law.

101034.5 (b) For the purposes of the Bond Law, each state agency administering an appropriation from the 2006 California Community College Capital Outlay Bond Fund is a "board".

101034.5 (c) Bond proceeds are to go to the California Community Colleges as described in this chapter.

101035 The Higher Education Facilities Finance Committee shall authorize the issuance of bonds only to fund apportionments expressly authorized by the Legislature in the Annual Budget Act.

101035.5 Demands that "there shall be collected annually, ... in addition to the ordinary revenue of the state", "a sum of money ... sufficient to pay the principal of, and interest on" the bonds.

101036 Contrary to Section 13340 of this Code, this initiative immediately withdraws from the General Fund an amount equal to the sum of (a) the principal and interest on the bonds, when they become due and payable, and (b) any additional funds required to carry out 101037.5 below. [13340 says "on and after July 1, 2007, no moneys in any fund that, by any statute other than a Budget Act, are continuously appropriated without regard to fiscal years, may be encumbered unless the Legislature, by statute, specifies that the moneys in the fund are appropriated for encumbrance. "]

101036.5 The board may request the Pooled Money Investment Board [PMIB] to make a loan from the Pooled Money Investment Account [PMIA], per Section 16312 of the Government Code. The amount requested may not exceed the amount of bonds authorized to be sold but not yet actually sold. [The PMIB, consisting of the Controller, Treasurer and Director of Finance, is created and discussed starting at 16480 of the Government Code. The PMIA holds state funds available for expenditure but not currently committed.]

101037 The Treasurer will take all steps possible to maintain the tax-exempt status of these bonds.

101037.5 (a) The Director of Finance may withdraw from the General Fund any amount less than the amount of bonds authorized to be sold but not yet actually sold. Amounts withdrawn MUST be deposited to the 2006 State School Facilities Fund. The sale of bonds must then be used to repay the amount with interest.

101037.5 (b) Requests for expenditure from this fund must be accompanied by the five-year capital outlay plan for the community college system, prioritized on a statewide basis. The plan must include a schedule giving priority to seismic retrofitting.

101038 Any interest paid on the bonds shall be transferred to the General Fund as a credit to expenditures for bond interest.

101039 Bonds may be refunded. Voter approval of this initiative constitutes approval of refunding bonds. ["Refund" means to pay off an existing bond by taking out a new one, for example at a lower interest rate.]

101039.5 The Legislature declares revenues from this bond are not "proceeds of taxes" and therefore not liable to the limitations imposed by Article XIII B of the state Constitution [Prop 13]

	Chapter 4 University Facilities

	Article 1 General

101040 (a) Clarifies what the system of public universities is. (University of California, Hastings College of the Law, and the California State Universities).

101040 (b) Establishes the 2006 University Capital Outlay Bond Fund in the State Treasury.

101040 (c) The Higher Education Facilities Finance Committee is authorized to create a debt persuant to this chapter in order to provide funds for the above named.

	Article 2 Program Revisions Applicable to the University of California and the Hastings College of the Law.

101041 (a) From the bonds defined at Article 4, 101050 below, $890 million dollars shall be deposited in the 2006 University Capital Outlay Bond Fund, for use when appropriated.

101041 (b) Affirms that the purpose of this article is to assist "in meeting the capital outlay financing needs of the University of California and the Hastings College of the Law".

101041 (c) Requires that, of the amount authorized by (a), $200 million go specifically to improvements that support medical education programs with an " emphasis on 'telemedicine' aimed at developing high-tech approaches to health care."

101041 (d) Lists possible uses of the bond money.

	Article 3 Program Revisions Applicable to the California State University.

101042 (a) From the bonds defined at Article 4, 101050 below, $690 million dollars shall be deposited in the 2006 University Capital Outlay Bond Fund, for use when appropriated.

101042 (b) Affirms that the purpose of this article is to assist "in meeting the capital outlay financing needs of the California State University".

101042 (c) Lists possible uses of the bond money.

	Article 4 University Fiscal Provisions

101050 (a) Per the authorization granted in Chapter 1, bonds in the amount of $1.580 billion may be issued and sold to provide a fund to carry out the purposes of this chapter and to reimburse the General Obligation Bond Expense Revolving Fund, and the full faith and credit of the State of California is pledged for their repayment.

101050 (b) The Legislature expects the University of California and the California State University, as part of their planning capital outlay process, to consider the inclusion of facilities that could be used by other segments of higher education, and to prepare a report, due by May 15th of each year, showing their findings.

101050 (c) Per this section, the Treasurer shall sell the bonds.

101051 (a) The bonds will be handled in accord with the State General Obligation Bond Law.

101051 (b) For the purposes of the Bond Law, each state agency administering an appropriation from the 2006 University Capital Outlay Bond Fund is a "board".

101051 (c) Bond proceeds are to go to the University of California, the Hastings College of the Law, and the California State University as described in this chapter.

101052 The Higher Education Facilities Finance Committee shall authorize the issuance of bonds only to fund apportionments expressly authorized by the Legislature in the Annual Budget Act.

101053 Demands that "there shall be collected annually, ... in addition to the ordinary revenue of the state", "a sum of money ... sufficient to pay the principal of, and interest on" the bonds.

101054 Contrary to Section 13340 of this Code, this initiative immediately withdraws from the General Fund an amount equal to the sum of (a) the principal and interest on the bonds, when they become due and payable, and (b) any additional funds required to carry out 101037.5 below. [13340 says "on and after July 1, 2007, no moneys in any fund that, by any statute other than a Budget Act, are continuously appropriated without regard to fiscal years, may be encumbered unless the Legislature, by statute, specifies that the moneys in the fund are appropriated for encumbrance. "]

101055 The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, per Section 16312 of the Government Code. The amount requested may not exceed the amount of bonds authorized to be sold but not yet actually sold. [The PMIB, consisting of the Controller, Treasurer and Director of Finance, is created and discussed starting at 16480 of the Government Code. The PMIA holds state funds available for expenditure but not currently committed.]

101056 The Treasurer will take all steps possible to maintain the tax-exempt status of these bonds.

101057 (a) The Director of Finance may withdraw from the General Fund any amount less than the amount of bonds authorized to be sold but not yet actually sold. Amounts withdrawn MUST be deposited to the 2006 State School Facilities Fund. The sale of bonds must then be used to repay the amount with interest.

101057 (b) Requests for expenditure from this fund must be accompanied by the five-year capital outlay plan for the community college system, prioritized on a statewide basis. The plan must include a schedule giving priority to seismic retrofitting.

101058 Any interest paid on the bonds shall be transferred to the General Fund as a credit to expenditures for bond interest.

101059 Bonds may be refunded. Voter approval of this initiative constitutes approval of refunding bonds. ["Refund" means to pay off an existing bond by taking out a new one, for example at a lower interest rate.]

101060 The Legislature declares revenues from this bond are not "proceeds of taxes" and therefore not liable to the limitations imposed by Article XIII B of the state Constitution [Prop 13]

Section 17

Amends Section 65997 of the Government Code
[Very minor changes]

Section 18

Amends Section 4 of Chapter 421 of the Statutes of 2001

Section 4 Repeals the act as of January 1, 2010, unless a later statute, enacted prior to January 1, 2010, deletes or extends the repeal date. []

Section 19

Amends Section 4 of Chapter 637 of the Statutes of 2002

Section 4 Repeals the act as of January 1, 2011, unless a later statute, enacted prior to January 1, 2010, deletes or extends the repeal date.

Section 20

(a) Authorizes the move of up to $21 million dollars intended for joint-use facilities, resulting from bonds issued on or before January 1, 2006, to the State Allocation Board.

(b) Authorizes the move of any remaining funds to the State Allocation Board.

Section 21

Sections 16 and 20 are to be submitted to the voters.

Section 22

Specifies the exact wording to be used on the ballot to describe this Initiative.

Section 23

Contrary to sections 13247 and 13281 of the Elections Code, specifies that the wording of Section 22 must be used to describe this Initiative on the ballot. [13427 limits the ballot statement to an abbreviated 75 words prepared by the Attorney General; 13281 repeats this.]

Section 24

Provisions of the Act are severable.

Section 25

Sections 1 to 15, inclusive, and sections 18 and 19 become operative only if the voters approve the Kindergarten-University Public Education Facilities Bond Act of 2006, as provided in Sections 16 and 20.

Section 26

Declares AB 127 to be an emergency act, because of the need to get the initiative onto the November 2006 ballot

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