TEXT OF PROPOSED LAWS PROPOSITION 51 of 2016 to provide a comprehensive and fiscally responsible approach for addressing the school facility needs for all This initiative measure is submitted to the people in Californians. accordance with the provisions of Section 8 of Article II of the California Constitution. SEC. 2. Section 17070.41 is added to the Education Code, to read: This initiative measure adds sections to the Education Code; therefore, new provisions proposed to be added are 17070.41. Creation of 2016 State School Facilities printed in italic type to indicate that they are new. Fund. 51 (a) A fund is hereby established in the State Treasury, to PROPOSED LAW be known as the 2016 State School Facilities Fund. All SECTION 1. Findings and Declarations. money in the fund, including any money deposited in that fund from any source whatsoever, and notwithstanding The people of the State of California find and declare all of Section 13340 of the Government Code, is hereby the following: continuously appropriated without regard to fiscal years for (a) Pursuant to the California Constitution, public expenditure pursuant to this chapter. education is a state responsibility and, among other things, (b) The board may apportion funds to school districts for that responsibility requires that public schools be safe, the purposes of this chapter, as it read on January 1, 2015, secure, and peaceful. from funds transferred to the 2016 State School Facilities (b) The State of California has a fundamental interest in Fund from any source. the financing of public education and that interest extends (c) The board may make apportionments in amounts not to ensuring that K–14 facilities are constructed and exceeding those funds on deposit in the 2016 State School maintained in safe, secure, and peaceful conditions. Facilities Fund, and any amount of bonds authorized by (c) Since 1998, the State of California has successfully the committee, but not yet sold by the Treasurer. met its responsibility to provide safe, secure, and peaceful (d) The board may make disbursements pursuant to any facilities through the Leroy F. Greene School Facilities Act apportionment made from any funds in the 2016 State of 1998, contained in Article 1 (commencing with School Facilities Fund, irrespective of whether there exists Section 17070.10) of Chapter 12.5 of Part 10 of Division at the time of the disbursement an amount in the 2016 1 of Title 1 of the Education Code. State School Facilities Fund sufficient to permit payment (d) The State Allocation Board has the authority to audit in full of all apportionments previously made. However, no expenditure reports and school district records in order to disbursement shall be made from any funds required by assure bond funds are expended in accordance with law to be transferred to the General Fund. program requirements, which includes verifying that SEC. 3. Part 70 (commencing with Section 101110) is projects progress in a timely manner and that funds are not added to Division 14 of Title 3 of the Education Code, to spent on salaries or operating expenses. read: (e) The people of the State of California further find and PART 70. KINDERGARTEN THROUGH COMMUNITY declare the following: COLLEGE PUBLIC EDUCATION FACILITIES BOND ACT (1) California was among the hardest hit of the states OF 2016 during the last recession and while employment gains are CHAPTER 1. GENERAL occurring, economists caution that the state economy has 101110. This part shall be known, and may be cited, as not yet fully recovered. the Kindergarten Through Community College Public (2) Investments made through the Kindergarten Through Education Facilities Bond Act of 2016. Community College Public Education Facilities Bond Act 101112. Bonds in the total amount of nine billion dollars of 2016 will provide for career technical education ($9,000,000,000), not including the amount of any facilities to provide job training for many Californians and refunding bonds issued in accordance with Sections veterans who face challenges in completing their education 101140 and 101149, or so much thereof as is necessary, and re-entering the workforce. may be issued and sold for the purposes set forth in (3) Investments will be made in partnership with local Sections 101130 and 101144. The bonds, when sold, school districts to upgrade aging facilities to meet current shall be and constitute a valid and binding obligation of health and safety standards, including retrofitting for the State of California, and the full faith and credit of the earthquake safety and the removal of lead paint, asbestos, State of California is hereby pledged for the punctual and other hazardous materials. payment of the principal of, and interest on, the bonds as (4) Studies show that 13,000 jobs are created for each the principal and interest become due and payable. $1 billion of state infrastructure investment. These jobs CHAPTER 2. KINDERGARTEN THROUGH 12TH GRADE include building and construction trades jobs throughout Article 1. Kindergarten Through 12th Grade School the state. Facilities Program Provisions (5) The Kindergarten Through Community College Public 101120. The proceeds of bonds issued and sold pursuant Education Facilities Bond Act of 2016 provides for to this chapter shall be deposited in the 2016 State School disadvantaged school districts and local control. Facilities Fund established in the State Treasury under (6) Academic goals cannot be achieved without 21st Section 17070.41 and shall be allocated by the State Century school facilities designed to provide improved Allocation Board pursuant to this chapter. school technology and teaching facilities. 101121. All moneys deposited in the 2016 State School (f) Therefore, the people enact the Kindergarten Through Facilities Fund for the purposes of this chapter shall be Community College Public Education Facilities Bond Act available to provide aid to school districts, county 118 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 51 CONTINUED superintendents of schools, and county boards of education 65995) of Division 1 of Title 7 of the Government Code of the state in accordance with the Leroy F. Greene School may be amended pursuant to law. Facilities Act of 1998 (Chapter 12.5 (commencing with Article 2. Kindergarten Through 12th Grade School Section 17070.10) of Part 10 of Division 1 of Title 1), as Facilities Fiscal Provisions it read on January 1, 2015, as set forth in Section 101122, to provide funds to repay any money advanced or loaned to 101130. (a) Of the total amount of bonds authorized to the 2016 State School Facilities Fund under any act of the be issued and sold pursuant to Chapter 1 (commencing Legislature, together with interest provided for in that act, with Section 101110), bonds in the amount of seven billion and to reimburse the General Obligation Bond Expense dollars ($7,000,000,000) not including the amount of 51 Revolving Fund pursuant to Section 16724.5 of the any refunding bonds issued in accordance with Government Code. Section 101140, or so much thereof as is necessary, may be issued and sold to provide a fund to be used for carrying 101122. (a) The proceeds from the sale of bonds, out the purposes expressed in this chapter and to reimburse issued and sold for the purposes of this chapter, shall be the General Obligation Bond Expense Revolving Fund allocated in accordance with the following schedule: pursuant to Section 16724.5 of the Government Code. (1) The amount of three billion dollars ($3,000,000,000) (b) Pursuant to this section, the Treasurer shall sell the for new construction of school facilities of applicant school bonds authorized by the State School Building Finance districts pursuant to Chapter 12.5 (commencing with Committee established pursuant to Section 15909 at any Section 17070.10) of Part 10 of Division 1 of Title 1. different times necessary to service expenditures required (2) The amount of five hundred million dollars by the apportionments. ($500,000,000) shall be available for providing school facilities to charter schools pursuant to Article 12 101131. The State School Building Finance Committee, (commencing with Section 17078.52) of Chapter 12.5 of established by Section 15909 and composed of the Part 10 of Division 1 of Title 1. Governor, the Controller, the Treasurer, the Director of Finance, and the Superintendent, or their designated (3) The amount of three billion dollars ($3,000,000,000) representatives, all of whom shall serve thereon without for the modernization of school facilities pursuant to compensation, and a majority of whom shall constitute a Chapter 12.5 (commencing with Section 17070.10) of quorum, is continued in existence for the purpose of this Part 10 of Division 1 of Title 1. chapter. The Treasurer shall serve as chairperson of the (4) The amount of five hundred million dollars committee. Two Members of the Senate appointed by the ($500,000,000) for facilities for career technical Senate Committee on Rules, and two Members of the education programs pursuant to Article 13 (commencing Assembly appointed by the Speaker of the Assembly, shall with Section 17078.70) of Chapter 12.5 of Part 10 of meet with and provide advice to the committee to the Division 1 of Title 1. extent that the advisory participation is not incompatible with their respective positions as Members of the (b) School districts may use funds allocated pursuant to Legislature. For the purposes of this chapter, the Members paragraph (3) of subdivision (a) only for one or more of of the Legislature shall constitute an interim investigating the following purposes in accordance with Chapter 12.5 committee on the subject of this chapter and, as that (commencing with Section 17070.10) of Part 10 of committee, shall have the powers granted to, and duties Division 1 of Title 1: imposed upon, those committees by the Joint Rules of the (1) The purchase and installation of air-conditioning Senate and the Assembly.