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AB-1001 School bonds: School Disaster Resiliency Act.(2019-2020)

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Date Published: 06/29/2020 09:00 PM
AB1001:v94#DOCUMENT

Amended  IN  Senate  June 29, 2020
Amended  IN  Senate  July 03, 2019
Amended  IN  Assembly  May 16, 2019
Amended  IN  Assembly  April 30, 2019
Amended  IN  Assembly  April 12, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1001

Introduced by Assembly Member Ting
(Coauthor: Assembly Member Mullin)

February 21, 2019

An act to amend Sections 8277.6, 8279.3, 8286, 8332.3, 8335.3, 8358, 8359, 8499, 8499.3, 8499.5, and 8499.7 of, and to add Section 8499.6 to, the Education Code, relating to child care. An act to amend Section 17199.3 of, and to add Chapter 19 (commencing with Section 17200) to Part 10 of Division 1 of Title 1 of, the Education Code, relating to school bonds, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 1001, as amended, Ting. Child care: strategic planning councils. School bonds: School Disaster Resiliency Act.
The California School Finance Authority Act establishes the California School Finance Authority, and authorizes the authority to, among other things, issue revenue bonds to finance or refinance educational facility projects for school districts, charter schools, county offices of education, and community college districts. The Archie-Hudson and Cunneen School Technology Revenue Bond Act authorizes the authority to issue revenue bonds to finance, among other things, the establishment of computer-based networks and telecommunications systems for instructional purposes by school districts. Existing law establishes the State Energy Resources Conservation and Development Commission (Energy Commission) and establishes various duties and responsibilities of the Energy Commission relating to energy usage in the state.
This bill would establish the School Disaster Resiliency Act, which would require the Energy Commission to administer a program to provide loans to school districts, county offices of education, and charter schools for school resiliency projects, as provided. The bill would require the Energy Commission to allocate resiliency loan funding for projects in a specified order of priority. The bill would require the Energy Commission to develop application procedures for purposes of the program, as specified, and to provide local educational agencies with preapplication funding for technical assistance. The bill would require the authority, in consultation with the commission, to adopt regulations establishing uniform terms and conditions that are required to apply equally to all projects for resiliency loan funding under these provisions. The bill would authorize the authority to adopt, amend, or repeal rules and regulations pursuant to these provisions as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act.
The bill would establish the School Disaster Resiliency Fund, as a continuously appropriated fund, under the administration of the Energy Commission, thereby making an appropriation. The bill would authorize the authority to issue up to $1,000,000,000 in revenue bonds and require the bond revenues be deposited in the fund to be used for purposes of the loan program described above. The bill would also require that loan repayments, fees, and penalties be deposited in the fund.

Existing law requires the county board of supervisors and the county superintendent of schools to select members for the local child care and development planning council, known as a local planning council, for that county. Existing law provides requirements for the makeup of a local planning council. Existing law requires a local planning council, by May 30 of each year, and upon approval by the county board of supervisors and the county superintendent of schools, to submit to the State Department of Education the local priorities it has identified that reflect all child care needs in the county, and requires the local planning council, in order to identify those local priorities, to do certain things, including, among others, encourage public input in the development of the priorities, collaborate with specified entities to foster partnerships designed to meet local child care needs, and conduct an assessment of child care needs in the county at least once every 5 years. Existing law defines “child care” for purposes of these provisions to mean all licensed child care and development services and license-exempt child care for all children up to and including 12 years of age, as provided.

This bill would rename “local planning council” to “strategic planning council” and would revise the definition of “child care” to include early childhood education services. The bill would revise the makeup requirements for strategic planning councils, as provided. The bill would authorize a county board of supervisors and a county superintendent of schools to merge the strategic planning council with the Quality Rating and Improvement System local consortia or with another strategic planning council in a contiguous county under certain conditions, as provided. The bill would repeal all of the requirements imposed on strategic planning councils in order for the strategic planning council to identify local priorities, except those listed above, as provided. The bill would require the needs assessment to be due by May 30 of each year in which it is due, and would require a strategic planning council, beginning in 2021, to use the needs assessment template developed by the department in collaboration with the strategic planning councils. The bill would require specified state and local entities to provide to the department the information necessary for a strategic planning council to complete the needs assessment, and would require the department to share data and information necessary to complete the needs assessment with strategic planning councils and counties implementing individualized county child care subsidy plans.

The bill would require a strategic planning council, on or before March 30, 2021, and every 3 years thereafter, to develop and submit to the county board of supervisors and the county board of education a strategic plan and investment priorities, and would require the strategic plan to address facility needs, workforce needs, family access, and quality and transition planning, as provided. The bill would require the county board of supervisors and the county board of education to hold public hearings on the proposed strategic plan and investment priorities at a regularly scheduled meeting. The bill would require a strategic planning council, at least twice each year, to convene a forum for stakeholders to provide input to and receive updates from the Quality Rating and Improvement System local consortium. The bill would require a strategic planning council to work with the county office of education, special education local plan areas, and the school districts and regional centers in the county to facilitate the transition of children with exceptional needs into the K–12 system. By imposing new duties on strategic planning councils, the bill would impose a state-mandated local program. The bill would provide that the operation of these provisions is contingent upon an appropriation in the annual Budget Act for these purposes.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Vote: MAJORITY   Appropriation: NOYES   Fiscal Committee: YES   Local Program: YESNO  

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


SECTION 1.

 Section 17199.3 of the Education Code is amended to read:

17199.3.
 (a) The total amount of revenue bonds that may be issued and outstanding at any time for purposes of this chapter shall not exceed four billion four hundred million dollars ($4,400,000,000).
(b) For purposes of subdivision (a) bonds that meet any of the following conditions shall not be deemed to be outstanding:
(1) Bonds that have been refunded pursuant to Section 17188.
(2) Bonds for which money or securities in amounts necessary to pay or redeem the principal, interest, or any redemption premium on the bonds have been deposited in trust.
(3) Bonds that have been issued to finance or refinance working capital.
(4) Bonds that have been issued pursuant to Chapter 19 (commencing with Section 17200).

SEC. 2.

 Chapter 19 (commencing with Section 17200) is added to Part 10 of Division 1 of Title 1 of the Education Code, to read:
CHAPTER  19. School Disaster Resiliency Act

17200.
 (a) The Legislature finds and declares all of the following:
(1) Public schools are community centers that need to function during disasters that affect their communities.
(2) The disasters could be related to climate change, including fires and floods, or to other natural disasters, including earthquakes and pandemics.
(3) Disasters can create great pressure on communities and school districts in the communities.
(4) Schools provide vital community services, including meals to pupils and families, direct education either in the classroom or through distance learning, and shelter for residents during and after disasters.
(5) Schools need to be open to provide these services to their communities when there is a disaster.
(6) The purpose of the School Disaster Resiliency Act is to provide loans for school resiliency projects and provide financial hardship loan repayment provisions for those local educational agencies that need assistance to pay a portion of the loans.
(b) It is the intent of the Legislature to meet this goal by creating a loan program that will provide school districts needed resources to create resilient schools that are able to function during disasters, and that these schools be able to create clean energy generation and battery energy storage systems sufficient to provide ongoing community services during and after disasters.
(c) This chapter shall be known, and may be cited, as the School Disaster Resiliency Act.

17201.
 For purposes of this chapter the following terms apply:
(a) “Act” means the School Disaster Resiliency Act.
(b) “Authority” means the California School Finance Authority established pursuant to Section 17172.
(c) “Bond” means bonds, notes, bond anticipation notes, commercial paper, and any other evidences of indebtedness.
(d) “Community school” means a school that mitigates the educational disadvantages associated with poverty and improves pupils’ attendance, behavior, and achievement by operating as a hub of community resources, providing integrated educational, health, and mental health services to pupils with a wide range of needs.
(e) “Energy Commission” means the State Energy Resources Conservation and Development Commission.
(f) “Fund” means the School Disaster Resiliency Fund established pursuant to subdivision (c) of Section 17202.
(g) “Local educational agency” means a school district, county office of education, or charter school.
(h) “Priority development community” means any of the following:
(1) A disadvantaged community identified pursuant to Section 39711 of the Health and Safety Code.
(2) A low-income community, as defined in Section 39713 of the Health and Safety Code.
(3) Locations within one-half mile of a low-income community.
(i) “Public safety power shutoff event” means an intentional deenergization of electrical infrastructure for the purpose of avoiding hazardous conditions on the electrical grid.

17202.
 (a) Notwithstanding Section 17199.3, the authority may issue bonds exclusively for the purposes of this chapter, provided that the total amount of bonds issued under this chapter shall not exceed one billion dollars ($1,000,000,000), and no more than three hundred fifty million dollars ($350,000,000) of bonds shall be issued in any fiscal year.
(b) In administering this chapter, the authority shall meet all of the requirements established by law for the issuance, holding, and repayment of revenue bonds by the authority, including those set forth in Chapter 18 (commencing with Section 17170), unless otherwise provided for in this chapter.
(c) (1) Revenues from the sale of bonds issued pursuant to this chapter shall be deposited in the School Disaster Resiliency Fund, which fund is hereby established in the State Treasury. Notwithstanding Section 13340 of the Government Code, all moneys in the fund shall be continuously appropriated without regard to fiscal year to the Energy Commission for the purposes of this chapter.
(2) All moneys received for repayment of a loan, and any penalties, interest, and fees in connection with a loan under this chapter shall be deposited into the fund.
(3) The authority may establish accounts and subaccounts within the fund to separately account for each bond series issued by the authority under this chapter.
(d) The terms of repayment for bonds issued pursuant to this chapter shall be consistent with United States Internal Revenue Service requirements for tax-exempt obligations.
(e) It is the intent of the Legislature that, to the extent possible, the bonds or borrowing under this chapter should be tax exempt, but taxable borrowing is authorized.

17203.
 (a) (1) Bonds issued under this chapter shall not be deemed to constitute a debt or liability of the state or of any political subdivision thereof, other than the authority, or a pledge of the faith and credit of the state or of any political subdivision, but shall be payable solely from the fund and the assets of the fund, and the security provided by the fund. All bonds issued under this chapter shall contain on the face of the bonds a statement to the same effect.
(2) Notwithstanding any other law, should loan repayment funds pledged to repay bonds issued pursuant to this chapter be insufficient to repay the revenue bonds, negotiable notes, or negotiable bond anticipation notes sold to finance projects and related interest and expenses, moneys in the General Fund shall not be available as an alternative source of repayment.
(b) Except as may be provided in the governing documents with respect to bond anticipation notes, each of the bonds issued under this chapter may, to the extent provided in the governing documents, be payable from, and secured by, all or a portion of the revenues in the fund and the assets of the fund, to the extent the revenues and assets are pledged by the Energy Commission for those purposes.
(c) (1) Administrative costs of the authority may be funded from the proceeds of the borrowing or by a surcharge on loans issued pursuant to this chapter.
(2) Administrative costs of the Energy Commission may be funded from the proceeds of borrowing or by a surcharge on the local educational agency.
(3) Administrative costs for the authority and the Energy Commission may each not exceed 2 percent of the loans.

17204.
 (a) The Energy Commission shall establish and administer a loan program to provide low-interest loans to local educational agencies for school resiliency projects to enable local educational agencies to create clean energy generation and battery energy storage systems sufficient to provide ongoing community services during and after a disaster.
(b) (1) The authority shall adopt regulations to create a system to validate the amount and percentage of the state principal and interest payment that may be made for an eligible local educational agency. The regulations shall ensure that the system includes the financial detail necessary and a financial soundness determination made by the authority to determine the amount of principal and interest and the percentage of the principal and interest the local educational agency is able to pay.
(2) The Energy Commission shall develop application procedures for applicant local educational agencies.
(3) The Energy Commission shall determine which proposed local educational agency projects within each of the priorities described in Section 17206 will receive a resiliency loan based on the project and the financial soundness determination made by the authority. The Energy Commission shall determine if the local educational agency is eligible for hardship assistance and if so, the percentage of the hardship funding assistance that may be provided based on the financial soundness determination by the authority.
(c) The Energy Commission shall provide assistance to local educational agencies, including preapplication funding for technical assistance to support development of an application for a resiliency loan. Eligible technical assistance services may include, but are not necessarily limited to, all of the following:
(1) Analysis of historical energy usage and strategies for using energy storage to reduce utility costs and for using energy storage to provide electricity during an electric grid outage for a specified duration.
(2) Analysis of schoolsite conditions.
(3) Meetings with facility managers to determine resiliency plan objectives.
(4) Development of an application for a resiliency loan.
(d) A resiliency loan may include funding for additional technical assistance, including any of the following:
(1) Preparation of a competitive solicitation proposal for the installation of equipment and electrical work
(2) Review and evaluation of responses to the solicitation.
(3) Provision of contracting, project management, and commissioning oversight support.
(e) A local educational agency may use loan funding under this chapter for approved school resiliency projects, including for all of the following project costs:
(1) An energy storage system and associated components.
(2) Energy controls to operate the energy storage system during an outage of the electric grid.
(3) Electrical work and equipment needed to configure the connection of the solar and energy storage systems so that they can operate during an outage of the electric grid.
(4) Electrical work to isolate circuits to be served by the energy storage system.

17205.
 All of the following shall apply to resiliency loans to local educational agencies entered into pursuant to Section 17204:
(a) At a minimum, loan repayments for the first five years of each loan may be for interest only.
(b) The loan interest and principal payments shall be the responsibility of the borrowing local educational agency. The state may, but is not required or obligated to, make a portion of the principal payment and interest on behalf of a borrowing local educational agency pursuant to Section 17206.
(c) A borrowing local educational agency may repay its loan on terms consistent with the authority’s bonds issued for the local educational agency’s resiliency loan.

17206.
 (a) The Energy Commission shall make resiliency loan funding to local educational agencies under this chapter in the following order of priority:
(1) Community schools.
(2) Projects for school facilities, including school campuses, administrative offices, and operations facilities, in priority development communities that are also in high fire threat districts or in locations that have experienced at least one public safety power shutoff event, if funding for the site is not available from the equity resiliency budget of the self-generation incentive program established pursuant to Section 379.6 of the Public Utilities Code.
(3) Projects for school facilities in priority development communities that are not in high fire threat districts but are in locations that have experienced at least one public safety power shutoff event.
(4) Projects for school facilities in high fire threat districts, or in locations that have experienced at least one public safety power shutoff event, but that are not in a priority development community.
(5) Projects for school facilities that have existing solar energy systems, or solar-plus-storage systems.
(6) Projects for schools that serve as community emergency centers.
(7) Projects for a local educational agency that include an energy resiliency plan in an application for modernization funding to the Office of Public School Construction.
(b) (1) In cases of financial hardship or formal certification by the state, or a local or tribal government as cooling centers, emergency shelter facilities, or emergency operations centers, approved at the time of application and loan approval, the state may, but is not required or obligated to, provide funding to repay a portion of the loan principal and interest payments for the local educational agency from any source identified by the state.
(2) For eligible local educational agencies the state may, but is not required or obligated to, pay up to 30 percent of the loan principal and interest for the local educational agency.
(3) At the time of loan application, eligible local educational agencies shall document why they need assistance in paying their full amount of principal and interest.
(c) (1) A local educational entity shall be eligible for assistance pursuant to subdivision (b) if it meets any of the following conditions:
(A) The local educational agency has a per-pupil assessed valuation that is less than ____ percent of the state median per-pupil assessed valuation.
(B) The local educational agency has 2,500 or fewer pupils and is located in a county of the third to eighth class, inclusive, as described in Sections 28024 to 28029, inclusive, of the Government Code.
(C) The local educational agency’s percentage of unduplicated pupils, as described in Section 42238.02, is 80 percent or more.
(2) The Energy Commission shall establish guidelines for documentation of a local educational agency receiving formal certification by the state, or a local or tribal government as a cooling center, emergency shelter facility, or emergency operations center to be eligible for assistance pursuant to subdivision (b).

17207.
 (a) The authority, in consultation with the commission, shall adopt regulations establishing uniform terms and conditions that shall apply equally to all projects for resiliency loan funding under this chapter, including, but not limited to, all of the following:
(1) (A) The process for determining the manner in which the applicant will pay its obligation.
(B) For purposes of subparagraph (A), the authority may use the payment process set forth in Section 17199.4 for purposes of this chapter.
(2) The method for integrating funding pursuant to this chapter with the general procedures of the authority pursuant to subdivision (i) of Section 17180 for funding projects otherwise eligible for funding under this chapter, if appropriate.
(b) The authority may adopt, amend, or repeal rules and regulations pursuant to this chapter as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2). The adoption, amendment, or repeal of these regulations is conclusively presumed to be necessary for the immediate preservation of the public peace, health, safety, or general welfare within the meaning of Section 11346.1 of the Government Code.