SECTIONS 101020-101031 - California Statutes

EDUCATION CODE

SECTION 101020-101031

101020. (a) Of the total amount of bonds authorized to be issued
and sold pursuant to Chapter 1 (commencing with Section 101000),
bonds in the amount of seven billion three hundred twenty-nine
million dollars ($7,329,000,000) not including the amount of any
refunding bonds issued in accordance with Section 101030, 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 chapter and
to reimburse the General Obligation Bond Expense Revolving Fund
pursuant to Section 16724.5 of the Government Code. The bonds, when
sold, shall be and constitute a valid and binding obligation of the
State of California, and the full faith and credit of the State of
California is hereby pledged for the punctual payment of the
principal of, and interest on, the bonds as the principal and
interest become due and payable.
(b) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the State School Building Finance Committee established
pursuant to Section 15909 at any different times necessary to
service expenditures required by the apportionments.

101021. The State School Building Finance Committee, established by
Section 15909 and composed of the Governor, the Controller, the
Treasurer, the Director of Finance, and the Superintendent, or their
designated representatives, all of whom shall serve thereon without
compensation, and a majority of whom shall constitute a quorum, is
continued in existence for the purpose of this chapter. The Treasurer
shall serve as chairperson of the committee. Two Members of the
Senate appointed by the Senate Committee on Rules, and two Members of
the Assembly appointed by the Speaker of the Assembly, shall meet
with and provide advice to the committee to the extent that the
advisory participation is not incompatible with their respective
positions as Members of the Legislature. For the purposes of this
chapter, the Members of the Legislature shall constitute an interim
investigating committee on the subject of this chapter and, as that
committee, shall have the powers granted to, and duties imposed upon,
those committees by the Joint Rules of the Senate and the Assembly.
The Director of Finance shall provide assistance to the committee as
it may require. The Attorney General of the state is the legal
adviser of the committee.

101022. (a) The bonds authorized by this chapter 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, except Section 16727 of the
Government Code to the extent that it conflicts with this part, apply
to the bonds and to this chapter and are hereby incorporated into
this chapter as though set forth in full within this chapter.
(b) For purposes of the State General Obligation Bond Law, the
State Allocation Board is designated the "board" for purposes of
administering the 2006 State School Facilities Fund.

101023. (a) Upon request of the State Allocation Board, the State
School Building Finance Committee shall determine whether or not it
is necessary or desirable to issue bonds authorized pursuant to this
chapter in order to fund the apportionments and, if so, the amount of
bonds to be issued and sold. Successive issues of bonds may be
authorized and sold to fund those apportionments progressively, and
it is not necessary that all of the bonds authorized to be issued be
sold at any one time.
(b) A request of the State Allocation Board pursuant to
subdivision (a) shall be supported by a statement of the
apportionments made and to be made for the purposes described in
Sections 101011 and 101012.

101024. 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. 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.

101025. Notwithstanding Section 13340 of the Government Code, there
is hereby appropriated from the General Fund in the State Treasury,
for the purposes of this chapter, 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 chapter, as the
principal and interest become due and payable.
(b) The sum necessary to carry out Section 101028, appropriated
without regard to fiscal years.

101026. The State Allocation Board may request the Pooled Money
Investment Board to make a loan from the Pooled Money Investment
Account or any other approved form of interim financing, in
accordance with Section 16312 of the Government Code, for the purpose
of carrying out this chapter. The amount of the request shall not
exceed the amount of the unsold bonds that the committee, by
resolution, has authorized to be sold for the purpose of carrying out
this chapter. The board shall execute any documents required by the
Pooled Money Investment Board to obtain and repay the loan. Any
amounts loaned shall be deposited in the fund to be allocated by the
board in accordance with this chapter.

101027. Notwithstanding any other provision of this chapter, or of
the State General Obligation Bond Law, if the Treasurer sells bonds
pursuant to this chapter that include a bond counsel opinion to the
effect that the interest on the bonds is excluded from gross income
for federal tax purposes, subject to designated conditions, the
Treasurer may maintain separate accounts for the investment of bond
proceeds and for the investment earnings on those proceeds. The
Treasurer may use or direct the use of those proceeds or earnings to
pay any rebate, penalty, or other payment required under federal law
or take any other action with respect to the investment and use of
those bond proceeds required or desirable under federal law to
maintain the tax-exempt status of those bonds and to obtain any other
advantage under federal law on behalf of the funds of this state.

101028. For the purposes of carrying out this chapter, the Director
of Finance may authorize the withdrawal from the General Fund of an
amount not to exceed the amount of the unsold bonds that have been
authorized by the State School Building Finance Committee to be sold
for the purpose of carrying out this chapter. Any amounts withdrawn
shall be deposited in the 2006 State School Facilities Fund
consistent with this chapter. Any money made available under this
section shall be returned to the General Fund, plus an amount equal
to the interest that the money would have earned in the Pooled Money
Investment Account, from proceeds received from the sale of bonds for
the purpose of carrying out this chapter.

101029. All money deposited in the 2006 State School Facilities
Fund, that is derived from premium and accrued interest on bonds sold
shall be reserved in the fund and shall be available for transfer to
the General Fund as a credit to expenditures for bond interest.

101030. The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of Chapter 4 of Part 3 of Division 4
of Title 2 of the Government Code, which is a part of the State
General Obligation Bond Law. Approval by the voters of the state for
the issuance of the bonds described in this chapter includes the
approval of the issuance of any bonds issued to refund any bonds
originally issued under this chapter or any previously issued
refunding bonds.

101031. The Legislature hereby finds and declares that, inasmuch as
the proceeds from the sale of bonds authorized by this chapter are
not "proceeds of taxes" as that term is used in Article XIII B of the
California Constitution, the disbursement of these proceeds is not
subject to the limitations imposed by that article.