Bill Text: CA AB2116 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: School bonds: projections of assessed property valuations.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Passed) 2016-08-17 - Chaptered by Secretary of State - Chapter 129, Statutes of 2016. [AB2116 Detail]

Download: California-2015-AB2116-Amended.html

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BILL NUMBER: AB 2116	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 14, 2016

INTRODUCED BY   Assembly Member Gallagher
   (Coauthors: Assembly Members Brough and Harper)
   (Coauthor: Senator Nielsen)

                        FEBRUARY 17, 2016

   An act to amend  Sections 15100, 15278, and 15284
  Section 15100  of the Education Code, relating to
school bonds.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2116, as amended, Gallagher. School bonds:  citizens'
oversight committees: school bond waste prevention actions. 
 projections of assessed property valuations.  
   (1) Existing 
    Existing  law authorizes the governing board of any
school district or community college district to order an election
and submit to the electors of the district the question whether the
bonds of the district should be issued and sold for the purpose of
raising money for specified purposes, including, among other things,
the supplying of school buildings and grounds with furniture,
equipment, or necessary apparatus of a permanent nature.
   This bill would require the governing board of a school district
to obtain reasonable and informed projections of assessed property
valuations  from an independent third party not associated
with the bond measure before placing a bond measure on a ballot.
  that take into consideration projections of assessed
property valuations made by the county assessor. The bill would also
delete obsolete references and make other nonsubstantive changes.
 
   (2) Existing law requires the governing board of a school district
or community college district to establish and appoint members to an
independent citizens' oversight committee, as specified, if a bond
measure authorized pursuant to certain provisions of the California
Constitution is approved by 55% of the voters. Existing law requires
the citizens' oversight committee to convene to at least ensure the
bond revenues are expended only for specified purposes and not used
for any teacher or administrative salaries or other school operating
expenses.  
   This bill would additionally require a citizens' oversight
committee that is established by the governing board of a school
district to annually review the school district's arrangements for
issuing and repaying its bonds.  
   (3) Existing law authorizes an action to obtain an order
restraining and preventing any expenditure of funds received by a
school district or community college district through the sale of
bonds described above against any officer, agent, or other person
acting on behalf of, that school district or community college
district, by citizens who are or were liable to pay an ad valorem tax
on real property within the school or community college district if
it appears by the complaint or affidavits that certain conditions are
present, including, among others, that the governing board of a
school district or community college district has willfully failed to
appoint the citizens' oversight committee. Existing law defines
these actions as a "School Bond Waste Prevention Action." 

   This bill would, in the case of a school district only, authorize
a county auditor with jurisdiction over the school district to also
bring a School Bond Waste Prevention Action.  
   (4) This bill also would delete obsolete references and make other
nonsubstantive changes. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 15100 of the Education Code is amended to read:

   15100.  (a) Except as otherwise provided by law, the governing
board of any school district or community college district may, when
in its judgment it is advisable, and shall, upon a petition of the
majority of the qualified electors residing in the school district or
community college district, order an election and submit to the
electors of the school district or community college district, as
applicable, the question whether the bonds of the school district or
community college district shall be issued and sold for the purpose
of raising money for the following purposes:
   (1) The purchasing of school lots.
   (2) The building or purchasing of school buildings.
   (3) The making of alterations or additions to the school building
or buildings other than as may be necessary for current maintenance,
operation, or repairs.
   (4) The repairing, restoring, or rebuilding of any school building
damaged, injured, or destroyed by fire or other public calamity.
   (5) The supplying of school buildings and grounds with furniture,
equipment, or necessary apparatus of a permanent nature.
   (6) The permanent improvement of the school grounds.
   (7) The refunding of any outstanding valid indebtedness of the
school district or community college district, evidenced by bonds, or
of state school building aid loans.
   (8) The carrying out of the projects or purposes authorized in
Section 17577.
   (9) The purchase of schoolbuses the useful life of which is at
least 20 years.
   (10) The demolition or razing of any school building with the
intent to replace it with another school building, whether in the
same location or in any other location.
   (b) Any one or more of the purposes enumerated in subdivision (a),
except that of refunding any outstanding valid indebtedness of the
school district or community college district evidenced by bonds,
may, by order of the governing board of the school district or
community college district, as applicable, that is entered in its
minutes, be united and voted upon as one single proposition.
   (c) Before the governing board of a school district may order an
election for purposes of this section, it shall obtain reasonable and
informed projections of assessed property valuations  from
an independent third party not associated with the bond measure.
  that take into consideration projections of assessed
property valuations made by the county assessor.  
  SEC. 2.    Section 15278 of the Education Code is
amended to read:
   15278.  (a) If a bond measure authorized pursuant to paragraph (3)
of subdivision (b) of Section 1 of Article XIII A of the California
Constitution and subdivision (b) of Section 18 of Article XVI of the
California Constitution is approved, the governing board of the
school district or community college shall establish and appoint
members to an independent citizens' oversight committee, pursuant to
Section 15282, within 60 days of the date that the governing board
enters the election results on its minutes pursuant to Section 15274.

   (b) The purpose of the citizens' oversight committee shall be to
inform the public concerning the expenditure of bond revenues. The
citizens' oversight committee shall actively review and report on the
proper expenditure of taxpayers' money for school construction. The
citizens' oversight committee shall advise the public as to whether a
school district or community college district is in compliance with
the requirements of paragraph (3) of subdivision (b) of Section 1 of
Article XIII A of the California Constitution. The citizens'
oversight committee shall convene to provide oversight for, but not
be limited to, both of the following:
   (1) Ensuring that bond revenues are expended only for the purposes
described in paragraph (3) of subdivision (b) of Section 1 of
Article XIII A of the California Constitution.
   (2) Ensuring that, as prohibited by subparagraph (A) of paragraph
(3) of subdivision (b) of Section 1 of Article XIII A of the
California Constitution, no funds are used for any teacher or
administrative salaries or other school operating expenses.
   (c) In furtherance of its purpose, the citizens' oversight
committee may engage in any of the following activities:
   (1) Receiving and reviewing copies of the annual, independent
performance audit required by subparagraph (C) of paragraph (3) of
subdivision (b) of Section 1 of Article XIII A of the California
Constitution.
   (2) Receiving and reviewing copies of the annual, independent
financial audit required by subparagraph (C) of paragraph (3) of
subdivision (b) of Section 1 of Article XIII A of the California
Constitution.
   (3) Inspecting school facilities and grounds to ensure that bond
revenues are expended in compliance with the requirements of
paragraph (3) of subdivision (b) of Section 1 of Article XIII A of
the California Constitution.
   (4) Receiving and reviewing copies of any deferred maintenance
proposals or plans developed by a school district or community
college district.
   (5) Reviewing efforts by the school district or community college
district to maximize bond revenues by implementing cost-saving
measures, including, but not limited to, all of the following:
   (A) Mechanisms designed to reduce the costs of professional fees.
   (B) Mechanisms designed to reduce the costs of site preparation.
   (C) Recommendations regarding the joint use of core facilities.
   (D) Mechanisms designed to reduce costs by incorporating
efficiencies in schoolsite design.
   (E) Recommendations regarding the use of cost-effective and
efficient reusable facility plans.
   (d) A citizens' oversight committee that is established by the
governing board of a school district shall also annually review the
school district's arrangements for issuing and repaying its bonds.
 
  SEC. 3.    Section 15284 of the Education Code is
amended to read:
   15284.  (a) An action to obtain an order restraining and
preventing any expenditure of funds received by a school district or
community college district through the sale of bonds authorized by
this chapter pursuant to paragraph (3) of subdivision (b) of Section
1 of Article XIII A of the California Constitution and subdivision
(b) of Section 18 of Article XVI of the California Constitution may
be maintained against any officer, agent, or other person acting on
behalf of, that school district or community college district, by a
citizen residing in the school district or community college district
who is assessed and is liable to pay an ad valorem tax on real
property within the school district or community college district, or
who has paid an ad valorem tax on real property within the school
district or community college district within one year before the
commencement of the action, or, in the case of a school district
only, a county auditor with jurisdiction over the school district, if
it appears by the complaint or affidavits that any of the following
conditions are present:
   (1) An expenditure of funds received by a school district or
community college district through the sale of bonds authorized by
this chapter is for purposes other than those specified in paragraph
(3) of subdivision (b) of Section 1 of Article XIII A of the
California Constitution.
   (2) The expenditure is not in compliance with paragraph (3) of
subdivision (b) of Section 1 of Article XIII A of the California
Constitution.
   (3) That an expenditure in violation of paragraph (3) of
subdivision (b) of Section 1 of Article XIII A of the California
Constitution will be made or will continue to be made during the
litigation that would produce waste or great or irreparable injury.
   (4) The governing board of a school district or community college
district has willfully failed to appoint the citizens' oversight
committee in violation of the requirements of Section 15278.
   (b) An action brought pursuant to this section shall take special
precedence over all civil matters on the calendar of the court except
those matters granted equal precedence by law.
   (c) The rights, remedies, or penalties established by this section
are cumulative to the rights, remedies, or penalties established
under other laws, including subdivision (a) of Section 526 of the
Code of Civil Procedure.
   (d) If an order is obtained to restrain and prevent an expenditure
of funds pursuant to subdivision (a), a court may award attorneys'
fees pursuant to Chapter 6 (commencing with Section 1021.5) of Title
14 of Part 2 of the Code of Civil Procedure.
   (e) The action authorized by this section shall be known as a
"School Bond Waste Prevention Action."