Bill Text: CA SB1240 | 2011-2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: School finance: emergency loans: South Monterey County

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2012-05-24 - Held in committee and under submission. [SB1240 Detail]

Download: California-2011-SB1240-Introduced.html

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BILL NUMBER: SB 1240	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Cannella
   (Principal coauthor: Assembly Member Alejo)

                        FEBRUARY 23, 2012

   An act to amend Section 41329.57 of the Education Code, relating
to school finance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1240, as introduced, Cannella. School finance: emergency loans:
South Monterey County Joint Union High School District.
   Existing law requires the Controller to transfer from Section A of
the State School Fund the amount of funds necessary to pay certain
warrants so that the effective cost of the lease financing provided
to the Oakland Unified School District, the Vallejo Unified School
District, and the West Contra Costa Unified School District is equal
to the cost of the original General Fund emergency loan made to each
school district. Existing law also specifies the original interest
rate to be used in determining the cost of the original emergency
loan made for these school districts.
   This bill would also require the Controller to make that transfer
with respect to lease financing provided to the South Monterey County
Joint Union High School District. The bill would specify the
original interest rate to be used in determining the cost of the
original emergency loan for the South Monterey County Joint Union
High School District.
   This bill would make legislative findings and declarations as to
the necessity of a special statute for the South Monterey County
Joint Union High School District.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 41329.57 of the Education Code is amended to
read:
   41329.57.  (a) (1)  Pursuant to a schedule provided to the
Controller by the bank, the Controller shall transfer from Section A
of the State School Fund the amount of funds necessary to pay the
warrants issued pursuant to paragraph (2) so that the effective cost
of the lease financing provided  pursuant to this article 
to the Oakland Unified School District, the Vallejo City Unified
School District,  and  the West Contra Costa Unified
School District  pursuant to this article   ,
  and the South Monterey County Joint Union High School
District  shall be equal to the cost of the original General
Fund emergency loan made to each district.
   (A) For  the  purposes of determining the cost of
the original emergency loan for the West Contra Costa Unified School
District, the original interest rate is the rate established
pursuant to Section 41474 of 1.532 percent.
   (B) For  the  purposes of determining the cost of
the original emergency loan for the Oakland Unified School District,
the original interest rate is 1.778 percent. This rate shall also
apply to any disbursements of the loan pursuant to Chapter 14 of the
Statutes of 2003 that are subsequent to August 23, 2004.
   (C) For  the  purposes of determining the cost of
the original emergency loan for the Vallejo City Unified School
District, the original interest rate is 1.5 percent. This rate shall
also apply to any disbursements of the loan pursuant to Chapter 53 of
the Statutes of 2004 that are subsequent to August 23, 2004. 
   (D) For purposes of determining the cost of the original emergency
loan for the South Monterey County Joint Union High School District,
the original interest rate is 1 percent. This rate shall also apply
to repayments of the original emergency loan pursuant to Chapter 20
of the Statutes of 2009 made subsequent to June 30, 2011. 
   (2) The executive director or chair of the bank shall periodically
provide a schedule to the Controller and each school district of the
actual amount of the difference between the cost of the lease
financing compared to the cost of the original emergency loan for
each  school  district for each year and the Controller
shall issue warrants to each school district pursuant to the
schedule. Payments to a  school  district shall occur only
during the term of the loan for that  school  district and
shall be made no sooner than the corresponding payments are made to
the bond trustee under the lease financing for that  school 
district.
   (3) For purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the warrants issued
pursuant to paragraph (2) are "General Fund revenues appropriated
 to   for  school districts," as defined in
subdivision (c) of Section 41202 for the fiscal years in which the
warrants are issued and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B" as defined
in subdivision (e) of Section 41202, for the fiscal years in which
the warrants are issued.
   (b) It is the intent of the Legislature that the financing cost
subsidies funded in this section not be deemed precedent nor in
conflict with Section 41329.53,  as these districts requested
loans prior to the enactment of this article   due to
the unique fiscal situation of these school districts  .
  SEC. 2.  The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of the unique circumstances relating to the fiscal emergency
in the South Monterey County Joint Union High School District.