Bill Text: CA SB483 | 2017-2018 | Regular Session | Amended
Bill Title: Education finance: Higher Education Facilities Bond Act of 2018.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Failed) 2018-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB483 Detail]
Download: California-2017-SB483-Amended.html
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Amended
IN
Senate
May 03, 2017 |
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Amended
IN
Senate
April 06, 2017 |
CALIFORNIA LEGISLATURE—
2017–2018 REGULAR SESSION
| Senate Bill | No. 483 |
| Introduced by Senators Glazer and Allen |
February 16, 2017 |
An act to add Part 72 (commencing with Section 102000) to Division 14 of Title 3 of the Education Code, relating to education finance.
LEGISLATIVE COUNSEL'S DIGEST
SB 483, as amended, Glazer.
Education finance: Higher Education Facilities Bond Act of 2018.
(1) Under the Higher Education Facilities Bond Act of 1986, the Higher Education Facilities Bond Act of 1988, and the Higher Education Facilities Bond Act of June 1992, the issuance, pursuant to the State General Obligation Bond Law, of bonds in an amount not to exceed $400,000,000, $600,000,000, and $900,000,000, respectively, and the expenditure of the revenues therefrom, were authorized for the purpose of aid to the University of California and the California State University for, among other things, the construction and equipping of educational facilities, as specified. Existing law establishes the Higher Education Facilities Finance Committee to administer those acts, and to authorize the issuance and sale of bonds to the extent necessary to fund the education facilities construction apportionments expressly authorized by the Legislature in the annual Budget
Act.
More recently, the Class Size Reduction Kindergarten-University Public Education Facilities Bond Act of 1998, the Kindergarten-University Public Education Facilities Bond Act of 2002, the Kindergarten-University Public Education Facilities Bond Act of 2004, and the Kindergarten-University Public Education Facilities Bond Act of 2006 authorized the issuance of bonds and the expenditure of revenues therefrom for the University of California and the California State University, as well as for public elementary and secondary schools.
This bill would enact the Higher Education Facilities Bond Act of 2018, which, upon approval by the state electorate, would authorize the issuance of state general obligation bonds in an amount not to exceed $2,000,000,000 with one-half of the amount designated for the University of California and the Hastings College of the Law and the other half designated for the California State
University, for purposes similar to those specified in the Higher Education Facilities Bond Act of 1986, the Higher Education Facilities Bond Act of 1988, and the Higher Education Facilities Bond Act of June 1992, to be issued and sold in a manner similar to that provided under those acts.
The bill would require that any request for funds from the bonds issued pursuant to the bond act enacted by this bill be accompanied by the 5-year capital outlay plan of the particular university or college and include a schedule that prioritizes the seismic retrofitting needed to significantly reduce seismic hazards in buildings identified as high priority by the university or college, as specified.
(2) This bill would provide for the submission of the Higher Education Facilities Bond Act of 2018 to the voters at the November 6, 2018, statewide primary election, as specified.
Digest Key
Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Part 72 (commencing with Section 102000) is added to Division 14 of Title 3 of the Education Code, to read:PART 72. HIGHER EDUCATION FACILITIES BOND ACT OF 2018
CHAPTER 1. General Provisions
102000.
This part shall be known, and may be cited, as the Higher Education Facilities Bond Act of 2018.102001.
The Legislature finds and declares all of the following:(a) California’s economic and social prosperity relies on a higher education system that keeps pace with California’s growth. In the coming decades, the state’s economic prosperity will depend on increasing the productivity of the workforce and on the ability to compete successfully in the world marketplace.
(b) The system of public higher education in this state includes the University of California and its 10 campuses, the California State University and its 23 campuses, and the Hastings College of the Law, and their respective off-campus centers. Each of these institutions
plays a vital role in maintaining California’s dominance in higher education in the United States.
(c) Over the last several years, studies have been completed by the University of California and the California State University to assess their long-term and short-term capital needs. Those studies demonstrate the long-term and short-term needs total, in the aggregate, hundreds of millions of dollars.
(d) The purpose of the Higher Education Facilities Bond Act of 2018 is to assist in meeting the capital outlay financing needs of California’s public higher education system.
102002.
As used in this part, the following terms have the following meanings:(a) “Committee” means the 2018 Higher Education Facilities Bond Act Finance Committee created pursuant to Section 67353. 102011.
(b) “Fund” means the 2018 Higher Education Capital Outlay Bond
Fund created pursuant to Section 102010.
CHAPTER 2. Higher Education Facilities Bond Act Program
102010.
The proceeds of bonds issued and sold pursuant to this part shall be deposited in the 2018 Higher Education Capital Outlay Bond Fund, which is hereby created.102011.
The 2018 Higher Education Facilities Bond Act Finance Committee is hereby created. The committee shall consist of the Governor, the Controller, the Treasurer, the Director of Finance, the President of the University of California, and the Chancellor of the California State University, or their designees. The Treasurer shall serve as chairperson of the committee.102011.102012.
The committee shall be and is hereby authorized to create a debt or debts, liability or liabilities, of the State of California pursuant to this part for the purpose of funding aid to the University of California, the California State University, and the Hastings College of the Law for the construction, reconstruction, and remodeling of existing or new facilities, including the construction of buildings and the acquisition of related fixtures; the equipping of new, renovated, or reconstructed facilities; funding for the payment of preconstruction costs, including,
but not necessarily limited to, preliminary plans and working drawings; renovation and reconstruction of facilities; and the construction or improvement of off-campus facilities of the California State University approved by the Trustees of the California State University on or before July 1, 2014, including the acquisition of sites upon which these facilities are to be constructed. The addition of the Hastings College of the Law to this section is not intended to mark a change from the funding authorizations made by Section 67354, as contained in the Higher Education Facilities Bond Act of 1986, or by Section 67334, as contained in the Higher Education Facilities Bond Act of 1988, but is intended to state more clearly what was intended by the Legislature in those sections as well.102012.102013.
Of the total amount, of bonds authorized by this part, one-half shall be designated for the University of California and the Hastings College of the Law and one-half shall be designated for the California State University.CHAPTER 3. Fiscal Provisions
102020.
(a) Bonds in the total amount of two billion dollars ($2,000,000,000), not including the amount of any refunding bonds issued in accordance with Section 102028, or so much thereof as is necessary, may be issued and sold to provide a fund to be used for carrying out the purposes expressed in this part and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds, when(b) Pursuant to this section, the Treasurer shall sell the bonds authorized by the committee at any different times necessary to service expenditures required by the apportionments.
102021.
The bonds authorized by this part shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code), and all of the provisions of that law shall apply to the bonds and to this part and are hereby incorporated in this part as though set forth in full in this part. For purposes of the State General Obligation Bond Law, each state agency administering an appropriation of the bond fund is designated as the “board” for projects funded by those appropriations.102022.
The committee shall authorize the issuance of bonds under this chapter only to the extent necessary to fund the apportionments that are expressly authorized by the Legislature in the annual Budget Act. Pursuant to that legislative direction, the committee shall determine whether it is necessary or desirable to issue bonds authorized pursuant to this part in order to carry out the actions specified in Section102023.
There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds each year, and it is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and perform each and every act that is necessary to collect that additional sum.102024.
Notwithstanding Section 13340 of the Government Code, there is hereby appropriated from the General Fund in the State Treasury, for purposes of this part, an amount that will equal the total of the following:(a) The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this part as the principal and interest become due and payable.
(b) The sum necessary to carry out the provisions of Section 102025, appropriated without regard to fiscal years.
102025.
(a) For purposes of carrying out this part, the Director of Finance may, by executive order, authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds that have been authorized by the committee to be sold for the purpose of carrying out this(b) Any request forwarded to the Legislature and the Department of Finance for funds from this bond issue for expenditure for the
purposes described in Section 102011 102012 by the University of California or the California State University shall be accompanied by the five-year capital outlay plan of the particular university or college, and shall include a schedule that prioritizes the seismic retrofitting needed to significantly reduce, by the 2024–25 fiscal year, in the judgment of the particular university or college, seismic hazards in buildings identified as high priority by the university or college.
