Bill Text: CA AB2076 | 2023-2024 | Regular Session | Amended
Bill Title: California Student Housing Revolving Loan Fund Act of 2022: state fund loan.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-05-22 - In Senate. Read first time. To Com. on RLS. for assignment. [AB2076 Detail]
Download: California-2023-AB2076-Amended.html
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Amended
IN
Assembly
May 16, 2024 |
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Amended
IN
Assembly
March 19, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 2076
| Introduced by Assembly Member McCarty |
February 05, 2024 |
An act to add Section 67329.3.5 to amend Section 67329.3 of the Education Code, relating to postsecondary education, and making an appropriation therefor. education.
LEGISLATIVE COUNSEL'S DIGEST
AB 2076, as amended, McCarty.
California Student Housing Revolving Loan Fund Act of 2022: state fund loan.
Under existing law, the California Student Housing Revolving Loan Fund Act of 2022, 2022 (loan act), the California School Finance Authority or the California Educational Facilities Authority, as applicable, provide zero-interest loans to qualifying applicants of the University of California, the California State University, and the California Community Colleges for the purpose of constructing affordable student housing and affordable faculty and staff housing, as provided. Existing law establishes the California Student Housing Revolving Loan Fund as a continuously appropriated fund in the State Treasury.
Existing law requires the Pooled Money Investment
Board to determine whether moneys on deposit in the State Treasury, exclusive of the General Fund and other specified funds, is not necessary for immediate use and, if so, to determine the amount which is then designated as surplus moneys. Existing law creates the Surplus Money Investment Fund and requires the Controller to transfer surplus moneys to it, provided that moneys from a special fund are not to be transferred if that will interfere with carrying out the purposes that the special fund supports. Existing law requires that moneys in the Surplus Money Investment Fund be invested by the Treasurer as part of the Pooled Money Investment Account. Under existing law, moneys in the Surplus Money Investment Fund are continuously appropriated.
This bill would require require, upon appropriation by the
Legislature, as described, the Controller to transfer $200,000,000 in the 2024–25 fiscal year to the California Student Housing Revolving Loan Fund from the Surplus Money Investment Fund and other funds in the Pooled Money Investment Account that accrue interest to the General Fund as a cash loan, for purposes of funding, commencing with the 2024–25 fiscal year, funding the program supported by the California Student Housing Revolving Loan Fund. The bill would require the loan principal and interest to be fully repaid on or before June 30, 2029,
2035, as described. By providing that moneys in a continuously appropriated fund may be used for a new purpose, and by depositing new moneys into a continuously appropriated fund, the bill would make an appropriation.
The bill would require that loans made to applicants under the loan act from moneys made available pursuant to the cash loan be repaid at a 3% interest rate.
Digest Key
Vote:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 67329.3 of the Education Code is amended to read:67329.3.
(a) (1) The California Student Housing Revolving Loan Fund is hereby established in the State Treasury to provide zero-interest(2) (A) For the 2023–24 fiscal
year, the sum of two hundred million dollars ($200,000,000) is hereby appropriated from the General Fund, to be deposited in the California Student Housing Revolving Loan Fund.
(B) It is the intent of the Legislature to appropriate three hundred million dollars ($300,000,000) in the 2024–25 fiscal year, three hundred million dollars ($300,000,000) in the 2025–26 fiscal year, three hundred million dollars ($300,000,000) in the 2026–27 fiscal year, three hundred million dollars ($300,000,000) in the 2027–28 fiscal year, and three hundred million dollars ($300,000,000) in the 2028–29 fiscal year, to be deposited in the California Student Housing Revolving Loan Fund.
(3)
(C) Of the total amount appropriated pursuant to subparagraph (A) of paragraph (2),
(A), and intended to be appropriated pursuant to subparagraph (B) of paragraph (2), (B), in support of this chapter, 75 percent of the available funds shall be available for University of California and California State University applicants and 25 percent of the available funds shall be available for community college applicants.
(4)
(D) Notwithstanding paragraph (3),
subparagraph (C), the amounts designated in paragraph (3) subparagraph (C) for the postsecondary segments may be adjusted to shift unused funds from a segment to accommodate excess demand from another segment, upon written notification by the Director of Finance to the Joint Legislative Budget Committee, and approval by the Joint Legislative Budget Committee. This written notification may be submitted 12 months after the funds for a fiscal year have been appropriated.
(3) (A) Notwithstanding any other law, but subject to subparagraphs (B) and (C), the Controller shall transfer two hundred million dollars
($200,000,000) in the 2024–25 fiscal year to the California Student Housing Revolving Loan Fund from the Surplus Money Investment Fund, and other funds in the Pooled Money Investment Account that accrue interest to the General Fund, as a cash loan, for purposes of funding the program supported by the California Student Housing Revolving Loan Fund.
(B) Notwithstanding any other provision of this chapter, the following provisions shall apply to moneys transferred into the California Student Housing Revolving Loan Fund pursuant to this paragraph:
(i) Loans to applicants made pursuant to Article 4 (commencing with Section 67329.4) that are from moneys transferred pursuant
to subparagraph (A) shall be repaid at a 3-percent interest rate.
(ii) The principal and interest for the cash loan made pursuant to subparagraph (A) shall be fully repaid on or before June 30, 2035. The loan may be fully repaid sooner than that date without incurring a penalty.
(iii) The interest rate on the cash loan made pursuant to subparagraph (A) shall be equal to the Pooled Money Investment Account average monthly effective yield rate, as determined by the Treasurer. The interest shall be repaid from the General Fund.
(C) This paragraph shall become operative only upon appropriation by the Legislature of sufficient moneys to the California Student Housing Revolving Loan Fund to fully fund repayment of
the cash loan transfer pursuant to subparagraph (A).
(b) The Treasurer may pledge any or all of the moneys in the fund as security for payment of the principal of, and interest on, a particular issuance of bonds by a designated lending authority pursuant to this chapter. For that purpose, or as convenient or necessary to the accomplishment of any other purpose of this chapter, the Treasurer may divide the fund into separate accounts or subaccounts.
(c) The Treasurer may invest moneys in the fund that are not required for its current needs, including proceeds from the sale of bonds, in eligible securities specified in Section 16430 of the Government Code, and may include deposit for investment in the Surplus Money Investment Fund pursuant to Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code.
Notwithstanding Section 16305.7 of the Government Code, all interest or other increment resulting from the investment or deposit of moneys from the fund shall be deposited in the fund. Moneys in the fund shall not be subject to transfer to any other funds pursuant to any provision of Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except to the Surplus Money Investment Fund.
(d) If the Treasurer sells bonds for either authority 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 of 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.
(a)Notwithstanding any other law, the Controller shall, in accordance with this section, transfer two hundred million dollars ($200,000,000) to the California Student Housing Revolving Loan Fund, established by Section 67329.3, from the Surplus Money Investment Fund and other funds in the Pooled Money Investment Account that accrue interest to the General Fund as a cash loan, for purposes of funding, commencing with the 2024–25 fiscal year, the program supported by the California Student Housing Revolving Loan Fund.
(b)The loan principal and interest shall be fully repaid on or before June 30, 2029. The loan may be fully repaid sooner than that date without incurring a penalty.
(c)The interest rate on the loan shall be equal to the Pooled Money Investment Account average monthly effective yield rate, as determined by the Treasurer. The interest shall be repaid from the General Fund.
