SECTIONS 12000-12002 - California Statutes

EDUCATION CODE

SECTION 12000-12002

12000. Whenever by any act of Congress funds are provided as
federal aid to education to the several states and the disposition of
the funds is not otherwise provided for by or under the act of
Congress or by or under any law of this state, the apportionment and
distribution thereof to school districts shall, insofar as consistent
with the requirements prescribed by the federal law and implementing
rules and regulations, be governed by the standards set forth in
this article.
When any such federal law designates a state education agency or
other agency or officer primarily responsible for state supervision
of public schools, such designation shall be deemed to refer to the
State Board of Education. The State Board of Education shall make
timely application for any federal funds made available, and shall,
pursuant to the federal law and the provisions of this article,
direct the allocation and apportionment of the federal funds to local
education agencies.

12001. The State Board of Education shall adopt rules and
regulations for the allocation of federal funds to local school
districts and other agencies entitled to receive federal funds for
the support of schools. In determining the rules and regulations by
which such allocations are to be made, the State Board of Education
shall consider all factors of local effort and all educational
programs maintained by such agencies. Such rules and regulations
shall be based upon need and the agencies' abilities and efforts
shall be carefully scrutinized.

12001.5. (a) The Legislature hereby finds and declares that the
federal tax credit bond volume cap for qualified school construction
bonds designated for the state by the federal American Recovery and
Reinvestment Act of 2009 (Public Law 111-5), together with Internal
Revenue Service Notice 2009-35 issued pursuant thereto, does not
constitute federal moneys, federal funds, or funds of any kind for
any purpose under this code.
(b) There is hereby assigned to the State Department of Education,
seven hundred million dollars ($700,000,000) of the state's 2009
federal tax credit bond volume cap for qualified school construction
bonds, to be further assigned and distributed to or for the benefit
of school districts and county offices of education in the state, as
the State Department of Education shall determine.
(c) (1) There is hereby assigned to the California School Finance
Authority, established pursuant to Section 17172, seventy-three
million five hundred twenty-five thousand dollars ($73,525,000) of
the state's 2009 federal tax credit bond volume cap for qualified
school construction bonds, to be issued for the benefit of charter
schools, or to be further assigned and distributed to one or more
issuers in the state for the benefit of charter schools, as the
authority shall determine.
(2) The parameters specified in "Borrowing Authority Parameters
and Application," dated February 10, 2010, as developed by the
California School Finance Authority and referenced in Resolution
10-04 of the authority, shall apply to all applications submitted to
the California School Finance Authority for the state's 2009 federal
tax credit bond volume cap for qualified school construction bonds.
If an applicant uses any 2009 federal tax credit bond volume cap in
conjunction with a bond that will serve as a local match for purposes
of the Charter School Facilities Program established by Section
17078.52, the applicant, in addition to the requirements of this
section, shall comply with all of the requirements of the Charter
School Facilities Program.
(d) (1) Any of the state's 2009 federal tax credit bond volume cap
for qualified school construction bonds assigned to the State
Department of Education pursuant to subdivision (b) that has not
resulted in the issuance of qualified school construction bonds by
December 31, 2009, shall be added to the state's volume cap for 2010,
in accordance with subsection (e) of Section 54F of the Internal
Revenue Code, and assigned as set forth in this section. Those
districts and county offices of education that received an assignment
from the State Department of Education by December 31, 2009, and
notification from the State Department of Education that they were
granted an extension to issue bonds through March 31, 2010, shall
have an additional 120 days from the effective date of this
legislation to issue bonds.
(2) Any of the state's 2009 federal tax credit bond volume cap for
qualified school construction bonds originally assigned to the State
Department of Education in 2009 pursuant to subdivision (b) that
does not result in the issuance of qualified school construction
bonds within 120 days from the effective date of this legislation
shall revert to the state, and shall be reallocated in accordance
with the process established pursuant to state law for allocating the
2010 federal tax credit bond volume cap for qualified school
construction bonds.
(3) The department shall reassign to a school district any 2009
federal tax credit bond volume cap for qualified school construction
bonds that was directly allocated to the district by the United
States Internal Revenue Service pursuant to Internal Revenue Service
Notice 2009-35, did not result in the issuance of qualified school
construction bonds by December 31, 2009, and was reallocated by the
district to the state no later than 30 days after the effective date
of this section. The department shall grant the school district 120
days from the effective date of this section to issue the qualified
school construction bonds. Any of the state's federal tax credit bond
volume cap for qualified school construction bonds assigned to a
school district described in this paragraph that does not result in
the issuance of qualified school construction bonds within 120 days
from the effective date of this section shall revert to the state and
shall be reallocated by the department in accordance with the
process established pursuant to state law for allocating the 2010
federal tax credit bond volume cap for qualified school construction
bonds.
(e) (1) Any of the state's 2009 federal tax credit bond volume cap
for qualified school construction bonds assigned to the California
School Finance Authority pursuant to subdivision (c) that has not
resulted in the issuance of qualified school construction bonds by
December 31, 2009, shall be added to the state's volume cap for 2010,
in accordance with subsection (e) of Section 54F of the Internal
Revenue Code, and allocated as set forth in this section. Any charter
school that received an allocation from the California School
Finance Authority prior to December 31, 2009, shall retain its
allocation pursuant to the resolution of the California School
Finance Authority.
(2) Any of the state's 2009 federal tax credit bond volume cap for
qualified school construction bonds originally allocated to the
California School Finance Authority in 2009 pursuant to subdivision
(c) that does not result in the issuance of qualified school
construction bonds by December 31, 2010, shall be retained by the
California School Finance Authority, and reallocated in accordance
with the qualified school construction bond parameters established by
the California School Finance Authority.
(f) Notwithstanding any other provision of law, in order to
further the purposes of the federal American Recovery and
Reinvestment Act of 2009, and allow school districts to issue federal
tax credit bonds as expeditiously as possible, the assignment and
distribution of the federal tax credit bond volume cap by the State
Department of Education and the California School Finance Authority
under this section are exempt from the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(g) It is the intent of the Legislature that the parameters and
conditions adopted by the department and the California School
Finance Authority be comparable where practical and applicable in
order to ensure consistency and equity in the state level assignment
and distribution of the federal tax credit bond volume cap,
including, but not limited to, maximum tax credit amounts per project
or school district.
(h) Notwithstanding any other provision of this section, issuers
within the state may issue qualified school construction bonds in any
manner permitted by federal law, including, but not limited to, as
tax credit bonds or federal subsidy bonds.

12001.6. (a) The Legislature hereby finds and declares that the
federal tax credit bond volume cap for qualified school construction
bonds designated to California by the federal American Recovery and
Reinvestment Act of 2009 (Public Law 111-5), together with Internal
Revenue Service Notice 2010-17 issued pursuant thereto, does not
constitute federal moneys, federal funds, or funds of any kind for
any purpose under this code.
(b) The department is authorized to assign and distribute the
state's 2010 federal tax credit bond volume cap for qualified school
construction bonds to or for the benefit of school districts and
county offices of education in the state.
(c) There is hereby assigned to the department six hundred
fifty-one million six hundred fifty-two thousand dollars
($651,652,000) of the state's 2010 federal tax credit bond volume cap
for qualified school construction bonds.
(1) A school district or county office of education may apply for
the federal tax credit bond volume cap for qualified school
construction bonds if the project is funded by local voter-approved
bonds issued by the school district or bond anticipation notes as
authorized by Section 15150. A county office of education and a
school district with an enrollment of 2,500 or less may use other
forms of financing with the submission of a resolution adopted by the
county board of education or governing board of the school district
authorizing the issuance of the financing.
(2) A school district or county office of education that received
a 2009 allocation but did not make any issuance may apply for 2010
federal tax credit bond volume cap for qualified school construction
bonds nine months after the effective date of this section.
(3) A school district or county office of education that received
a 2009 or 2010 federal tax credit bond volume cap for qualified
school construction bond allocation from the United States Department
of the Treasury is not eligible to apply.
(4) Five business days after the enactment of this legislation,
the department shall post the application form on its Internet Web
site.
(A) An application must be submitted via certified mail.
(B) An application shall not be postmarked until 30 business days
after the enactment of this legislation.
(C) An application shall include the total number of enrolled
pupils who qualify for the federal free and reduced priced meal
program and the total overall pupil enrollment for the 2008-09 school
year.
(5) An application not meeting the conditions set forth in
paragraphs (1) and (4) shall be returned to the applicant.
(6) Applications meeting the conditions set forth in paragraphs
(1) and (4) shall be accepted on a first-come-first-served basis by
date of postmark. If this program is oversubscribed, order of
allocation shall be established using the following criteria:
(A) First, earliest date of postmark.
(B) Second, the project for which the federal qualified school
construction bond authorization will be applied received approval
from the Division of the State Architect before the application was
submitted.
(C) Third, the greater percentage of pupils who qualify for the
federal free and reduced priced meals program and are enrolled in the
applying school district or county office of education in the
2008-09 school year. The department shall certify the number of
pupils who qualify and the overall enrollment and calculate the
percentage to the nearest one-hundredth of 1 percent.
(7) The department shall authorize the 2010 federal tax credit
bond volume cap for qualified school construction bonds no sooner
than December 1, 2010.
(8) The department shall maintain a waiting list of eligible
school districts and county offices of education that did not receive
an allocation in the order established pursuant to paragraph (6).
(9) An applicant may not apply for more than twenty-five million
dollars ($25,000,000) of 2010 federal tax credit bond volume cap for
qualified school construction bonds.
(10) A school district or county office of education applying for
2010 federal tax credit bond volume cap for qualified school
construction bonds authorization shall certify in its application
that it will fulfill all of the federal qualified school construction
bond program requirements, including both of the following
requirements:
(A) Within six months of the date of issuance, the school district
or county office of education shall enter into a contract or
contracts for use of an amount of bond proceeds equal to 10 percent
of the authorization.
(B) Within three years of the date of issuance, the school
district or county office of education shall spend 100 percent of the
bond proceeds for a qualified purpose.
(11) Fifteen days after bond issuance, the school district or
county office of education shall submit to the department a copy of
the appropriate federal Internal Revenue Service Form, Information
Return for Tax-Exempt Bonds, as confirmation of issuance.
(12) Thirty days after the completion of the expenditure the
recipient shall submit a completion report to the department. The
completion report must be certified by the bond counsel of the school
district or county office of education.
(13) If any or all of the federal qualified school construction
bond authorizations to a school district or county office of
education are not issued within six months from the date of
authorization, any or all unused federal qualified school
construction bond authorizations shall revert to the department. No
extensions shall be provided.
(A) The department shall reallocate any remaining federal
qualified school construction bond allocation to school districts or
county offices of education that were eligible and applied for the
authorization but did not receive an allocation.
(B) Reverted 2010 federal tax credit bond volume cap for qualified
school construction bonds shall be allocated to school districts or
county offices of education pursuant to the order of priority
established by paragraph (6).
(C) The department shall allocate reverted federal qualified
school construction bond authorizations as they are available and
until all are issued.
(d) The California School Finance Authority, established pursuant
to Section 17172, is authorized to assign and distribute the state's
2010 federal tax credit bond volume cap for qualified school
construction bonds to or for the benefit of charter schools, or to be
further assigned and distributed to one or more issuers in the state
for the benefit of charter schools, as determined by the authority.
(1) There is hereby assigned to the California School Finance
Authority, established pursuant to Section 17172, sixty-eight million
four hundred six thousand dollars ($68,406,000) of the state's 2010
federal tax credit bond volume cap for qualified school construction
bonds, to be issued for the benefit of charter schools, or to be
further assigned and distributed to one or more issuers in the state
for the benefit of charter schools, as the authority shall determine.
(2) A charter school may apply for the federal qualified school
construction bond volume cap if it meets all of the following
criteria:
(A) The charter school is operated as, or is operated by, a
nonprofit entity.
(B) The charter school has an approved charter in place that is
current at the time of application and continuously through the date
of bond issuance.
(C) The chartering authority certifies that the charter school is
in good standing and is in compliance with the terms of its charter.
(D) The charter school provides the level of classroom-based
instruction specified in paragraph (1) of subdivision (e) of Section
47612.5.
(E) The applicant has completed at least three full school years
of instructional operation as a charter school as of the end of the
previous school year.
(3) Five business days after the effective date of this section,
the California School Finance Authority shall post the application
form and fee schedule on its Internet Web site.
(4) An application shall not be postmarked until 30 business days
after the effective date of this section.
(5) Following a review of all applications and a preliminary award
of borrowing authority, the California School Finance Authority
shall ask applicants to provide additional information as necessary
for the issuance of the bonds.
(6) Applications that meet the conditions set forth in paragraph
(2) shall be considered by the California School Finance Authority on
a first-come-first-served basis by date of postmark. If the program
is oversubscribed, staff shall present a priority list to the
authority pursuant to paragraph (7).
(7) In the event that the program is oversubscribed, priority
shall be assigned first to those charter schools that are best able
to demonstrate to the California School Finance Authority, in its
sole discretion, that they will be capable of accessing the capital
markets or be privately placed with an investor. The order of
allocation shall be established using the following criteria:
(A) Applicants who are able to obtain credit enhancement for a
qualified school construction bond financing, including a bank letter
of credit, who contribute substantial equity to a project, or who
are otherwise able to obtain investment-grade credit ratings shall
receive priority over other applicants.
(B) In the event that multiple applicants satisfy the criteria
described in subparagraph (A), priority shall be assigned to
applications with the earliest postmark date. An application that is
hand delivered and does not have a postmark date will be ranked based
on the time the application is received by the California School
Finance Authority.
(8) Applicants shall not apply for more than twenty-five million
dollars ($25,000,000) of qualified school construction bond
authorization per project.
(9) Subsequent application cycles may be considered if borrowing
authority for qualified school construction bonds remains available
after the initial application period.
(10) Subject to the sole discretion of the California School
Finance Authority, any authorization to borrow qualified school
construction bond proceeds is contingent on the issuance of the
qualified school construction bonds by December 31, 2011, after which
time the authorization expires and the authority may allocate the
authorization to another qualified applicant.
(11) The California School Finance Authority shall allocate
reverted federal qualified school construction bond authorization as
it becomes available and until all of the authorization is issued.
(12) If an applicant uses any federal tax credit bond volume cap
in conjunction with a bond that will serve as a local match for
purposes of the Charter School Facilities Program established by
Section 17078.52, the applicant, in addition to the requirements of
this section, shall comply with all of the requirements of the
Charter School Facilities Program.

12002. There is hereby created in the State Treasury the Auxiliary
State School Fund. Any funds received under act of Congress as
federal aid to education, and not required by such act or any law of
this state to be otherwise deposited, may be deposited in the
Auxiliary State School Fund.