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AB-1482 School district bonds.(2005-2006)

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AB1482:v92#DOCUMENT

Assembly Bill No. 1482
CHAPTER 213

An act to amend Section 15146 to the Education Code, relating to education finance.

[ Approved by Governor  September 07, 2006. Filed with Secretary of State  September 07, 2006. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 1482, Canciamilla. School district bonds.
Existing law allows a school district governing board to sell bonds at a negotiated sale or by competitive bidding. Existing law requires the issuer of a proposed or actual new debt issue of state or local government to report specified information to the California Debt and Investment Advisory Commission (CDIAC).
This bill would require a school district governing board, prior to selling bonds, to adopt a resolution, as an agenda item at a public meeting, that includes several specified items, including, among others, express approval of the method of sale. The bill would require, after the sale of the bonds, the governing board to present and disclose the actual cost information at its next scheduled public meeting and to submit an itemized summary of the costs of the bond sale to the CDIAC. The bill would require the governing board to ensure that all necessary information and reports regarding the sale or planned sale of bonds by the school district it governs are submitted to the CDIAC in compliance with a specified provision.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 15146 of the Education Code is amended to read:

15146.
 (a) The bonds shall be issued and sold pursuant to Section 15140, payable out of the interest and sinking fund of the district. The governing board may sell the bonds at a negotiated sale or by competitive bidding.
(b) Prior to the sale, the governing board shall adopt a resolution, as an agenda item at a public meeting, that includes all of the following:
(1) Express approval of the method of sale.
(2) Statement of the reasons for the method of sale selected.
(3) Disclosure of the identity of the bond counsel, and the identities of the bond underwriter and the financial adviser if either or both are utilized for the sale, unless these individuals have not been selected at the time the resolution is adopted, in which case the governing board shall disclose their identities at the public meeting occurring after they have been selected.
(4) Estimates of the costs associated with the bond issuance.
(c) After the sale, the governing board shall do both of the following:
(1) Be presented with the actual cost information and disclose the actual cost information for the sale at its next scheduled public meeting.
(2) Submit an itemized summary of the costs of the bond sale to the California Debt and Investment Advisory Commission.
(d) The governing board shall ensure that all necessary information and reports regarding the sale or planned sale of bonds by the school district it governs are submitted to the California Debt and Investment Advisory Commission in compliance with Section 8855 of the Government Code.
(e) The bonds may be sold at a discount not to exceed 5 percent and at an interest rate not to exceed the maximum rate permitted by law. If the sale is by competitive bid, the governing board shall comply with Sections 15147 and 15148. The bonds shall be sold by the governing board no later than the date designated by the governing board as the final date for the sale of the bonds.
(f) The proceeds of the sale of the bonds, exclusive of any premium received, shall be deposited in the county treasury to the credit of the building fund of the school district, or community college district as designated by the California Community Colleges Budget and Accounting Manual. The proceeds deposited shall be drawn out as other school moneys are drawn out. The bond proceeds withdrawn shall not be applied to any other purposes than those for which the bonds were issued. Any premium or accrued interest received from the sale of the bonds shall be deposited in the interest and sinking fund of the district.
(g) The governing board may cause to be deposited proceeds of sale of any series of the bonds in an amount not exceeding 2 percent of the principal amount of the bonds in a costs of issuance account, which may be created in the county treasury or held by a fiscal agent appointed by the district for this purpose, separate from the building fund and the interest and sinking fund of the district. The proceeds deposited shall be drawn out on the order of the governing board or an officer of the district duly authorized by the governing board to make the order, only to pay authorized costs of issuance of the bonds. Upon the order of the governing board or duly authorized officer, the remaining balance shall be transferred to the county treasury to the credit of the building fund of the school district or community college district. The deposit of bond proceeds pursuant to this subdivision shall be a proper charge against the building fund of the district.
(h) The governing board may cause to be deposited proceeds of sale of any series of the bonds in the interest and sinking fund of the district in the amount of the annual reserve permitted by Section 15250 or in any lesser amount, as the governing board shall determine from time to time. The deposit of bond proceeds pursuant to this subdivision shall be a proper charge against the building fund of the district.
(i) The governing board may cause to be deposited proceeds of sale of any series of the bonds in the interest and sinking fund of the district in the amount not exceeding the interest scheduled to become due on that series of bonds for a period of two years from the date of issuance of that series of bonds. The deposit of bonds proceeds pursuant to this subdivision shall be a proper charge against the building fund of the district.