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AB-1674 School facilities: California School Finance Authority.(2019-2020)

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Date Published: 03/19/2019 09:00 PM
AB1674:v98#DOCUMENT

Amended  IN  Assembly  March 19, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1674


Introduced by Assembly Member Gloria

February 22, 2019


An act to amend Section 19826 of the Health and Safety Code, relating to building permits. An act to amend Section 17173 of the Education Code, relating to school facilities, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 1674, as amended, Gloria. Local building permits. School facilities: California School Finance Authority.
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. Existing law defines “education facility” for these purposes to mean any property, facility, structure, equipment, or furnishings used or operated in conjunction with one or more public schools, and specifically including as facilities, among other things, classrooms and sports facilities. Existing law establishes the California School Finance Authority Fund, administered by the authority, and continuously appropriates moneys in the fund for purposes of the act.
This bill would revise the definition of “education facility” for those purposes to include California state preschool programs as a public school, and to specifically include housing for professors, teachers, staff, and students as a type of facility covered under the definition. By expanding the purposes for which a continuously appropriated fund may be expended, the bill would make an appropriation.

Existing law prohibits a city or county from issuing a building permit without a properly executed declaration by the owner, applicant, contractor, or agent of the owner, contractor, or applicant.

This bill would make technical, nonsubstantive changes to that provision.

Vote: MAJORITY   Appropriation: NOYES   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Section 17173 of the Education Code is amended to read:

17173.
 As used in this chapter, the following words and terms shall have the following meanings, unless the context indicates or requires another or different meaning or intent:
(a) “Act” means the California School Finance Authority Act.
(b) “Agent” means a county or city board of education or superintendent of schools acting with the board’s consent, on behalf of one or more school districts for any purpose of this chapter, the Board of Governors of the California Community Colleges or the Chancellor of the California Community Colleges acting with the Board of Governors’ consent, on behalf of one or more community college districts for any purpose of this chapter, and the school district, county office of education, or other chartering entity acting with the consent of, and on behalf of, one or more charter schools for any purpose of this chapter.
(c) “Authority” means the California School Finance Authority, or any board, body, commission, department, or officer succeeding to the principal functions of the authority, or to which the powers conferred upon the authority by this chapter shall be given by law.
(d) “Bonds” or “revenue bonds” means bonds, notes, lease obligations, certificates of participation, commercial paper, and any other evidences of indebtedness.
(e) “Certificate of participation” means an undivided interest in one or more bonds, leases, loans, installment sales, or other agreements of a participating party or parties.
(f) “Charter school” means a school established pursuant to Part 26.8 (commencing with Section 47600) of Division 4 of Title 2.
(g) “Cost,” as applied to all or part of a project financed or refinanced pursuant to this chapter, means and includes all or any part of the cost of any of the following:
(1) Construction.
(2) Acquisition or improvement of all lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and interests acquired or used for a project.
(3) Demolition or removal of any buildings or structures on land acquired for a project, including the acquisition of any lands to which the buildings or structures may be moved.
(4) All machinery and equipment.
(5) Financing or refinancing charges, including, but not limited to, credit enhancement costs, and prepayment penalties.
(6) Interest before, during, and for a period following, the completion of any construction or improvement determined by the authority.
(7) Provisions for working capital.
(8) Reserves for principal and interest, and for extensions, enlargements, additions, replacements, renovations, and improvements.
(9) Engineering, architectural, financial, and legal services, plans, specifications, studies, surveys, estimates, administrative expenses, and other expenses necessary or incident to the construction, acquisition, or improvement of any project or any financing or refinancing under this chapter.
(h) “Educational facility” means any property, facility, structure, equipment, or furnishings used or operated in conjunction with one or more public schools, including charter schools, schools and California state preschool programs, or community colleges, including, but not limited to, all of the following:
(1) Classrooms.
(2) Auditoriums.
(3) Student centers.
(4) Administrative offices.
(5) Sports facilities.
(6) Maintenance, storage, or utility facilities.
(7) Housing for professors, teachers, staff, and students.

(7)

(8) All necessary or usual attendant and related facilities and equipment, including streets, parking, and supportive service facilities or structures required or useful for the effective operation of the educational facility.
(i) “Participating party” means:
(1) A school district, charter school, county office of education, or community college district that undertakes, itself or through an agent, the financing or refinancing of a project or of working capital pursuant to this chapter.
(2) Any person, company, association, state or municipal government entity, partnership, firm, or other entity or group of entities that undertakes the financing or refinancing of a project pursuant to this chapter in conjunction with an entity described in paragraph (1).
(3) “Participating party” shall also be deemed to refer to the agent to the extent the agent is acting on behalf of the school district, charter school, county office of education, or community college district for any purpose of this chapter.
(4) For purposes of subdivision (d) of Section 17183, subdivisions (a) and (b) of Section 17199.1, and Section 17199.4, “participating party” shall be deemed to refer to an entity described in paragraph (1) in conjunction with which an entity described in paragraph (2), if any, that applied for financing from the authority.
(j) “Project” means the acquisition, construction, expansion, remodeling, renovation, improvement, furnishing, or equipping of an educational facility to be financed or refinanced pursuant to this chapter. “Project” may include reimbursement for the costs of acquisition, construction, expansion, remodeling, renovation, improvement, furnishing, or equipping of an educational facility to be financed or refinanced pursuant to this chapter, provided that reimbursement from bond proceeds is required to comply with federal tax law in accordance with an opinion of counsel that supports special treatment under federal tax law for the bonds issued for the applicable financing or refinancing. “Project” may include any combination of the foregoing undertaken jointly by any participating party with one or more other participating parties.
(k) “Working capital” means funds to be used by, or on behalf of, a participating party to pay maintenance or operating expenses, or any other costs that would be treated as an expense item under generally accepted accounting principles in connection with the ownership or operation of an educational facility, including, but not limited to, all of the following:
(1) Reserves for maintenance or operating expenses.
(2) Interest for a period not to exceed two years on any loan for working capital made pursuant to this chapter.
(3) Reserves for debt service, and any other costs necessary or incidental to, financing pursuant to this chapter.
(4) Payments made by a participating party for the rent or lease of an educational facility.

SECTION 1.Section 19826 of the Health and Safety Code is amended to read:
19826.

(a)A city or county, whether general law or chartered, shall not issue a building permit that does not contain all applicable declarations required by Section 19825 properly executed by the owner, applicant, contractor, or agent of the owner, contractor, or applicant. The properly executed declarations shall be a condition for issuance of the building permit. A properly executed declaration may include a declaration signed and transmitted by facsimile or other electronic means. However, a city or county or its employees shall not be responsible for determining the truth or accuracy of the declarations, and no monetary liability on the part of, and no cause of action for damages against it, shall arise from a failure to verify the truth or accuracy of the declarations.

(b)A city or county may require that within 15 days of issuance, the issuing agency of the city or county deliver copies of all building permits to the assessor of the county.

(c)For purposes of this section, an “application for a building permit” shall be construed as a “transaction” and all declarations required shall be construed as “records” under Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code.