Bill Text: CA SB222 | 2015-2016 | Regular Session | Chaptered
Bill Title: Local agencies: school bonds: general obligation bonds: statutory lien.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Passed) 2015-07-13 - Chaptered by Secretary of State. Chapter 78, Statutes of 2015. [SB222 Detail]
Download: California-2015-SB222-Chaptered.html
BILL NUMBER: SB 222 CHAPTERED
BILL TEXT
CHAPTER 78
FILED WITH SECRETARY OF STATE JULY 13, 2015
APPROVED BY GOVERNOR JULY 13, 2015
PASSED THE SENATE JUNE 29, 2015
PASSED THE ASSEMBLY JUNE 25, 2015
AMENDED IN ASSEMBLY MAY 19, 2015
AMENDED IN SENATE APRIL 15, 2015
INTRODUCED BY Senator Block
FEBRUARY 12, 2015
An act to amend Section 15251 of the Education Code, and to add
Article 5.5 (commencing with Section 53515) to Chapter 3 of Part 1 of
Division 2 of Title 5 of the Government Code, relating to local
government.
LEGISLATIVE COUNSEL'S DIGEST
SB 222, Block. Local agencies: school bonds: general obligation
bonds: statutory lien.
(1) Except as otherwise provided by law, existing law provides
that the governing board of a 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 district the question whether the bonds
of the district shall be issued and sold for the purpose of raising
money for certain school facilities purposes, including the
purchasing of school lots and the building or purchasing of school
buildings.
If the bond measure is approved by the electors, existing law
requires the board of supervisors of the county whose county
superintendent of schools has jurisdiction over the school district
or community college district to annually, at the time of making the
levy of taxes for county purposes, levy a tax for that year upon the
property in the district for the interest and redemption of all
outstanding bonds of the school district or community college
district. Existing law requires that all taxes levied, when
collected, to be paid into the county treasury, as provided, to be
used for the payment of the principal and interest of the bonds and
for no other purpose.
This bill would require bonds issued and sold pursuant to these
provisions to be secured by a statutory lien on all revenues received
pursuant to the levy and collection of the tax, as provided.
(2) Existing law authorizes local agencies to issue general
obligation bonds, as provided.
This bill would require general obligation bonds issued and sold
by or on behalf of a local agency to be secured by a statutory lien
on all revenues received pursuant to the levy and collection of the
property tax imposed to service those bonds, as provided.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 15251 of the Education Code is amended to read:
15251. (a) When collected, all taxes levied shall be paid into
the county treasury of the county whose superintendent of schools has
jurisdiction over the school district on behalf of which the tax was
levied, to the credit of the interest and sinking fund of the school
district, or community college district as designated by the
California Community Colleges Budget and Accounting Manual, and shall
be used for the payment of the principal and interest of the bonds
and for no other purpose.
(b) Bonds issued and sold pursuant to this chapter shall be
secured by a statutory lien on all revenues received pursuant to the
levy and collection of the tax. The lien shall automatically attach
without further action or authorization by the governing board of the
school district or community college district. The lien shall be
valid and binding from the time the bonds are executed and delivered.
The revenues received pursuant to the levy and collection of the tax
shall be immediately subject to the lien, and the lien shall
automatically attach to the revenues and be effective, binding, and
enforceable against the school district or community college
district, its successors, transferees, and creditors, and all others
asserting rights therein, irrespective of whether those parties have
notice of the lien and without the need for any physical delivery,
recordation, filing, or further act.
SEC. 2. Article 5.5 (commencing with Section 53515) is added to
Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code,
to read:
Article 5.5. Lien for General Obligation Bonds
53515. (a) General obligation bonds issued and sold by or on
behalf of a local agency shall be secured by a statutory lien on all
revenues received pursuant to the levy and collection of the tax. The
lien shall automatically arise without the need for any action or
authorization by the local agency or its governing body. The lien
shall be valid and binding from the time the bonds are executed and
delivered. The revenues received pursuant to the levy and collection
of the tax shall be immediately subject to the lien, and the lien
shall immediately attach to the revenues and be effective, binding,
and enforceable against the local agency, its successors,
transferees, and creditors, and all others asserting rights therein,
irrespective of whether those parties have notice of the lien and
without the need for any physical delivery, recordation, filing, or
further act.
(b) This section is not intended to supplement or limit a local
agency's power to issue general obligation bonds conferred by any
other law.
(c) For purposes of this section, both of the following shall
apply:
(1) "Local agency" means any city, county, city and county, school
district, community college district, authority, or special
district.
(2) "General obligation bonds" means bonds, warrants, notes, or
other evidence of indebtedness of a local agency payable, both
principal and interest, from the proceeds of ad valorem taxes that
may be levied pursuant to paragraphs (2) and (3) of subdivision (b)
of Section 1 of Article XIII A of the California Constitution.
