100125-100180

EDUCATION CODE
SECTION 100125-100180




100125.  (a) Bonds in the total amount of three billion dollars
($3,000,000,000), not including the amount of any refunding bonds
issued in accordance with Section 100175, or so much thereof as is
necessary, may be issued and sold to provide a fund to be used for
carrying out the purposes expressed in this chapter and to reimburse
the General Obligation Bond Expense Revolving Fund pursuant to
Section 16724.5 of the Government Code. The bonds, when sold, shall
be and constitute a valid and binding obligation of the State of
California, and the full faith and credit of the State of California
is hereby pledged for the punctual payment of both principal of, and
interest on, the bonds as the principal and interest become due and
payable.
   (b) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the Higher Education Facilities Finance Committee
created pursuant to Section 67353 at any different times necessary to
service expenditures required by the apportionments.



100130.  The State School Building Finance Committee, created by
Section 15909 and composed of the Governor, Controller, Treasurer,
Director of Finance, and the Superintendent of Public Instruction, or
their designated representatives, all of whom shall serve thereon
without compensation, and a majority of whom shall constitute a
quorum, is continued in existence for the purpose of this chapter.
The Treasurer shall be designated to chair the committee. Two Members
of the Senate appointed by the Senate Committee on Rules, and two
Members of the Assembly appointed by the Speaker of the Assembly,
shall meet with and provide advice to the committee to the extent
that the advisory participation is not incompatible with their
respective positions as Members of the Legislature. For the purposes
of this chapter, the Members of the Legislature shall constitute an
interim investigating committee on the subject of this chapter and,
as that committee, shall have the powers and duties imposed upon
those committees by the Joint Rules of the Senate and the Assembly.
The Director of Finance shall provide the assistance to the committee
as it may require. The Attorney General of the state shall be the
legal adviser of the committee.



100135.  (a) The bonds authorized by this chapter shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code),
and all of the provisions of that law apply to the bonds and to this
chapter and are hereby incorporated in this chapter as though set
forth in full in this chapter.
   (b) For purposes of the State General Obligation Bond Law, the
State Allocation Board is designated the "board" for purposes of
administering the State School Building Lease-Purchase Fund.
   (c) For purposes of the State General Obligation Bond Law, each
state agency administering an appropriation of the 1996 Higher
Education Capital Outlay Bond Fund is designated as the "board" for
projects funded by those appropriations.



100140.  (a) Upon request of the State Allocation Board from time to
time, supported by a statement of the apportionments made and to be
made for the purposes described in Sections 100015, 100020, 100025,
100030, and 100035, the State School Building Finance Committee
created pursuant to Section 15909 shall determine whether or not it
is necessary or desirable to issue bonds authorized pursuant to this
chapter in order to fund the apportionments and, if so, the amount of
bonds to be issued and sold. Successive issues of bonds may be
authorized and sold to fund those apportionments progressively, and
it is not necessary that all of the bonds authorized to be issued be
sold at any one time.
   (b) The Higher Education Facilities Finance Committee created
pursuant to Section 67353 shall authorize the issuance of bonds under
this chapter only to the extent necessary to fund the apportionments
for the purposes described in Section 100120 that are expressly
authorized by the Legislature in the annual Budget Act. Pursuant to
that legislative direction, the committee shall determine whether or
not it is necessary or desirable to issue bonds authorized pursuant
to this chapter in order to carry out the actions specified in
Section 100120 and, if so, the amount of bonds to be issued and sold.
Successive issues of bonds may be authorized and sold to carry out
those actions progressively, and it is not necessary that all of the
bonds authorized to be issued be sold at any one time.



100145.  There shall be collected each year and in the same manner
and at the same time as other state revenue is collected, in addition
to the ordinary revenues of the state, a sum in an amount required
to pay the principal of, and interest on, the bonds each year, and it
is the duty of all officers charged by law with any duty in regard
to the collection of the revenue to do and perform each and every act
which is necessary to collect that additional sum.



100150.  Notwithstanding Section 13340 of the Government Code, there
is hereby appropriated from the General Fund in the State Treasury,
for the purposes of this chapter, an amount that will equal the total
of the following:
   (a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this chapter, as the
principal and interest become due and payable.
   (b) The sum that is necessary to carry out the provisions of
Section 100165, appropriated without regard to fiscal years.



100155.  The board may request the Pooled Money Investment Board to
make a loan from the Pooled Money Investment Account, in accordance
with Section 16312 of the Government Code, for the purpose of
carrying out this chapter. The amount of the request shall not exceed
the amount of the unsold bonds that the committee has, by
resolution, authorized to be sold for the purpose of carrying out
this chapter. The board shall execute those documents required by the
Pooled Money Investment Board to obtain and repay the loan. Any
amounts loaned shall be deposited in the fund to be allocated by the
board in accordance with this chapter.


100160.  Notwithstanding any other provision of this chapter, or of
the State General Obligation Bond Law (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code), if the Treasurer sells bonds 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 bond
proceeds invested and for the investment earnings on those proceeds,
and 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 that is required or desirable under federal law in
order 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.


100165.  (a) For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount or amounts not to exceed the amount of the unsold
bonds that have been authorized by the State School Building Finance
Committee or the Higher Education Facilities Finance Committee to be
sold for the purpose of carrying out this chapter. Any amounts
withdrawn shall be deposited in the State School Building
Lease-Purchase Fund and the 1996 Higher Education Capital Outlay Bond
Fund. Any money made available under this section shall be returned
to the General Fund, plus an amount equal to the interest the money
would have earned in the Pooled Money Investment Account, from
proceeds received from the sale of bonds for the purpose of carrying
out this chapter.
   (b) Any request forwarded to the Legislature and the Department of
Finance for funds from this bond issue for expenditure for the
purposes described in Section 100120 by the University of California,
the California State University, or the California Community
Colleges shall be accompanied by the five-year capital outlay plan of
the particular university or college and shall include a schedule
that prioritizes the seismic retrofitting needed to significantly
reduce, by the 2002-03 fiscal year, in the judgment of the particular
university or college, seismic hazards in buildings identified as
high priority by the university or college.



100170.  All money deposited in the State School Building
Lease-Purchase Fund, the Education Technology Fund, and the 1996
Higher Education Capital Outlay Bond Fund that is derived from
premium and accrued interest on bonds sold shall be reserved in the
fund and shall be available for transfer to the General Fund as a
credit to expenditures for bond interest.



100175.  The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of Chapter 4 of Part 3 of Division 4
of Title 2 of the Government Code, which is a part of the State
General Obligation Bond Law. Approval by the electors of the state
for the issuance of the bonds described in this chapter shall include
approval of the issuance of any bonds issued to refund any bonds
originally issued under this chapter or any previously issued
refunding bonds.


100180.  The Legislature hereby finds and declares that, inasmuch as
the proceeds from the sale of bonds authorized by this chapter are
not "proceeds of taxes" as that term is used in Article XIII B of the
California Constitution, the disbursement of these proceeds is not
subject to the limitations imposed by that article.