Bill Text: CA SB1240 | 2011-2012 | Regular Session | Amended
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-Amended.html
BILL NUMBER: SB 1240 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 2, 2012
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 amended, 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 City
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 , but only if the voters of the school
district approve a measure to levy a parcel tax, the proceeds of
which shall benefit the South Monterey County Joint Union High School
District, by January 1, 2015 .
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, the West Contra Costa Unified School District, 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 purposes of determining the cost of the original emergency
loan for the West Contra Costa Unified School District, the original
interest rate is 1.532 percent, the rate established
pursuant to Section 41474 of 1.532 percent .
(B) For 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 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) (i) 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.
(ii) Clause (i) shall become operative only if a measure to levy a
parcel tax, the proceeds of which shall benefit the South Monterey
County Joint Union High School District, is approved by the voters of
the school district by January 1, 2015.
(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 every
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 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, 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.
