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AB-1196 School bonds: term of bonds: furnishing and equipping classrooms.(2017-2018)

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Date Published: 06/15/2017 04:00 AM
AB1196:v96#DOCUMENT

Amended  IN  Senate  June 14, 2017
Amended  IN  Senate  May 25, 2017
Amended  IN  Assembly  March 30, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1196


Introduced by Assembly Member Harper
(Coauthors: Assembly Members Gallagher and Mathis)
(Coauthor: Senator Moorlach)

February 17, 2017


An act to amend Section 15144 of the Education Code, and to amend Section 53508.6 of the Government Code, relating to school bonds.


LEGISLATIVE COUNSEL'S DIGEST


AB 1196, as amended, Harper. School bonds: term of bonds: furnishing and equipping classrooms.
(1) Existing law authorizes the governing board of a school district or community college district to order an election and submit to the electors of the district whether the bonds of the district should be issued and sold, and sets forth requirements in that regard, including specifying that the term of a bond shall not exceed 25 years from the date of the bond or bond series.
This bill would specify that a bond issued for projects that include the furnishing and equipping of classrooms shall have a weighted average maturity that does not exceed 120% of the average reasonably expected economic life of the furnishings and equipment. financed project.
(2) Existing law, additionally and alternatively to the authority described above, authorizes the issuance of bonds or refunding bonds by a school district or community college district secured by the levy of ad valorem taxes, and, pursuant to those provisions, authorizes a school district or community college district to issue bonds that do not allow for the compounding of interest and that have a maturity greater than 30 years, but no greater than 40 years, in accordance with specified requirements.
This bill, notwithstanding those provisions, would specify that a bond issued for projects that include the furnishing and equipping of classrooms shall have a weighted average maturity that does not exceed 120% of the average reasonably expected economic life of the furnishings and equipment. financed project.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 15144 of the Education Code is amended to read:

15144.
 (a) The number of years the whole or any part of the bonds are to run shall not exceed 25 years from the date of the bonds or the date of any series thereof.
(b) Notwithstanding subdivision (a), a bond issued for projects that include the furnishing and equipping of classrooms, including, but not limited to, purchasing electronic equipment, shall have a weighted average maturity that does not exceed 120 percent of the average reasonably expected economic life of the furnishings and equipment. financed project.

SEC. 2.

 Section 53508.6 of the Government Code is amended to read:

53508.6.
 (a) Notwithstanding any other law, a school district or community college district may, pursuant to this article, issue bonds that do not allow for the compounding of interest and that have a maturity greater than 30 years, but not greater than 40 years, if the school district or community college district does both of the following:
(1) Complies with the requirements of subdivisions (b) and (c) of Section 15146 of the Education Code.
(2) Makes a finding that the useful life of the facility financed with the bonds that do not allow for the compounding of interest and that have a maturity greater than 30 years, but not greater than 40 years, equals or exceeds the maturity date of those bonds.
(b) Notwithstanding subdivision (a), a bond issued for projects that include the furnishing and equipping of classrooms, including, but not limited to, purchasing electronic equipment, shall have a weighted average maturity that does not exceed 120 percent of the average reasonably expected economic life of the furnishings and equipment. financed project.