17160-17165

EDUCATION CODE
SECTION 17160-17165




17160.  It is the intent of the Legislature in enacting this act to
provide a source of financing for the development of California
public schools' educational technology infrastructure for the use of
technology in instruction through the use of state revenue bonds
repaid from a dedicated portion of funds allocated to school
districts from the California State Lottery Education Fund pursuant
to Section 8880.5 of the Government Code. It is further the intent of
the Legislature in enacting this act to further the purposes of the
California State Lottery Act of 1984 as approved by the voters on
November 6, 1984.


17161.  For the purpose of this article the following terms have the
following meanings:
   (a) "Act" means the Archie-Hudson and Cunneen School Technology
Revenue Bond Act.
   (b) "Authority" means the California School Financing Authority
established pursuant to Section 17172.
   (c) "Bond" means bonds, notes, bond anticipation notes, commercial
paper, and any other evidences of indebtedness.
   (d) "Fund" means the School Technology Pooled Revenue Bond Fund
established pursuant to subdivision (c) of Section 17162.
   (e) "School district" means school district or county office of
education.



17162.  (a) Notwithstanding Section 17199.3, the authority may issue
bonds exclusively for the purposes of this act, provided that the
total amount of bonds issued and outstanding at any time under this
act shall not exceed four hundred million dollars ($400,000,000).
Authorization for the issuance of bonds under this act shall become
operative after July 1, 1997, upon receipt by the authority of
repayment pledges made by school districts, pursuant to Section
17163, which, when the pledges from all school districts are
combined, are equal to or greater than five million dollars
($5,000,000). The authority shall not issue bonds for any project
that cannot be supported by the repayment pledges of school
districts.
   (b) In administering this act, the authority shall meet all of the
requirements established by law for the issuance, holding, and
repayment of revenue bonds by the authority, including those set
forth in Chapter 17 (commencing with Section 17170), unless otherwise
provided for in this act.
   (c) Revenues from the sale of bonds issued pursuant to this act
shall be deposited in the School Technology Pooled Revenue Bond Fund,
which fund is hereby established in the State Treasury.
Notwithstanding Section 13340 of the Government Code, all moneys in
the fund shall be continuously appropriated without regard to fiscal
year for the purposes of this chapter. The authority shall allocate
moneys to each participating school district from the fund.
   (d) Allocations from the fund shall be used by school districts
only for the purpose of establishing computer-based networks and
telecommunications systems for instructional purposes, including the
procurement and installation of computer hardware and software,
multimedia audio, video, and data transfer equipment, and wiring,
cabling, and other equipment necessary to establish network
connectivity, and any planning and installation costs associated with
establishing and installing the networks.
   (e) The length of terms of the bonds issued pursuant to this act
shall be less than the useful life of the equipment to be purchased
as set forth in subdivision (d).


17163.  (a) Notwithstanding any other provision of law, a school
district may participate in this act, if the governing board of the
school district adopts a resolution approving that participation. A
participating school district shall pledge a portion of the lottery
revenues allocated annually to the school district from the
California State Lottery Education Fund as a dedicated revenue source
to repay bonds issued by the authority under the act.
   (b) A school district may pledge an amount up to the equivalent of
25 percent, but not more than 25 percent, of the allocation to the
school district for the 1996-97 fiscal year from the California State
Lottery Education Fund.
   (c) A participating school district shall guarantee the repayment
of bonds issued under this chapter by providing instructions to the
Controller as follows:
   (1) Informs the Controller of its election to participate in this
act.
   (2) Authorizes the Controller to pay the portion of the school
district's annual allocation of funds from the California State
Lottery Education Fund to the bond trustee identified by the school
district for the repayment of the school district's share of the
bonds issued under this chapter.
   (3) Contains a transfer schedule that sets forth the amounts of
funds, which shall be equal to the amount of funds pledged pursuant
to subdivisions (a) and (b) of this section, to be transferred by the
Controller to the trustee from the funds to be allocated to that
school district from the California State Lottery Education Fund.



17163.5.  The Controller shall pay bond trustees in accordance with
the instructions received pursuant to Section 17863. The Controller
shall make that payment only from moneys in the California State
Lottery Education Fund allocated to that school district. The
Controller is not authorized to pay a bond trustee any amount in
excess of a district's allocation from the California State Lottery
Education Fund.



17164.  Nothing contained in this chapter shall be deemed or
construed to create or constitute a debt, liability, or a loan or
pledge of the credit of the state.
   Notwithstanding any other provision of law, should lottery funds
pledged to repay bonds issued pursuant to this act be insufficient to
repay the revenue bonds, negotiable notes, or negotiable bond
anticipation notes sold to finance projects and related interest and
expenses, moneys in the General Fund shall not be available as an
alternative source of repayment.



17165.  The State Department of Education shall include in its
annual survey of schools on the use of lottery funds, the amount of
lottery revenues expended to repay bonds issued pursuant to this act.