Bill Text: CA AB48 | 2019-2020 | Regular Session | Amended
Bill Title: Education finance: school facilities: Public Preschool, K-12, and College Health and Safety Bond Act of 2020.
Spectrum: Strong Partisan Bill (Democrat 26-2)
Status: (Passed) 2019-10-07 - Chaptered by Secretary of State - Chapter 530, Statutes of 2019. [AB48 Detail]
Download: California-2019-AB48-Amended.html
Amended
IN
Senate
September 10, 2019 |
Amended
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Senate
July 08, 2019 |
Amended
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Senate
June 13, 2019 |
Amended
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Assembly
May 17, 2019 |
Amended
IN
Assembly
April 24, 2019 |
Amended
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Assembly
April 11, 2019 |
Amended
IN
Assembly
April 01, 2019 |
Amended
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Assembly
January 28, 2019 |
Introduced by Assembly Member O’Donnell and Senator Glazer (Principal coauthor: Senator Atkins) (Coauthors: Assembly Members Cooley, Cunningham, Diep, Eggman, Gabriel, Gloria, Kalra, Low, Medina, Muratsuchi, Nazarian, Quirk-Silva, and Robert Rivas) (Coauthors: Senators Allen, Durazo, Hertzberg, Hurtado, Leyva, McGuire, Portantino, Pan, Roth, Skinner, and Stern) |
December 03, 2018 |
LEGISLATIVE COUNSEL'S DIGEST
(1)The Leroy F. Greene School Facilities Act of 1998 provides for the adoption of rules, regulations, and procedures, under the administration of the Director of General Services, for the allocation of state funds by the State Allocation Board for the construction and modernization of public school facilities.
This bill would add provisions to the act to require the Department of General Services to process, and present to the State Allocation Board, all applications received under the act on and after July 1, 2020, within 120 days of receipt of the application. The bill would require applicants for bond funding to supply designated information to the State Department of Education. The bill would authorize school districts to receive a supplemental grant to expand an existing, or construct a new, gymnasium, multipurpose
room, library, or school kitchen under specified conditions.
The bill would specifically authorize the allocation of state funds for the replacement of school buildings that are at least 75 years old, for specified assistance to small school districts, as defined, for construction and modernization of preschool facilities at local educational agencies, and for the testing and remediation of lead levels in water fountains and faucets used for drinking or preparing food on schoolsites.
The bill would increase the maximum level of total bonding capacity, as defined, that a school district could have in order to be deemed eligible for financial hardship under the act from $5,000,000 to $10,000,000. The bill would authorize the State Allocation Board to provide specified assistance to school districts and county offices of education impacted by a natural disaster for which the Governor has declared a state of emergency. The bill
would adjust requirements related to the funding of joint-use projects to construct facilities on schoolsites serving kindergarten or any of grades 1 to 12, inclusive.
(2)The California Constitution prohibits the Legislature from creating a debt or liability that singly or in the aggregate with any previous debts or liabilities exceeds the sum of $300,000, except by an act that (A) authorizes the debt for a single object or work specified in the act, (B) has been passed by a
This bill would set forth the Kindergarten-Community Colleges Public Education Facilities
Bond Acts of 2020 and 2022 as state general obligation bond acts that would provide $13,000,000,000 and an unspecified amount of funds, respectively, to construct and modernize education facilities, as specified. These respective bond acts would become operative only if approved by the voters at the March 3, 2020, statewide primary election and the November 8, 2022, statewide general election, respectively. The bill would also provide for the submission of the bond acts to the voters at those elections.
The bill would require the Board of Governors of the California Community Colleges to review and evaluate applications for capital outlay allocations of funds made available for community college facilities pursuant to those bond acts. The bill would require the board of governors to annually prepare a capital outlay spending plan for recommended expenditures of funds pursuant to those bond acts.
Digest Key
Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 14503 of the Education Code is amended to read:14503.
(a)SEC. 2.
Section 15102 of the Education Code is amended to read:15102.
The total amount of bonds issued pursuant to this chapter and Chapter 1.5 (commencing with Section 15264) shall not exceedSEC. 3.
Section 15106 of the Education Code is amended to read:15106.
(a) (1) A unified school district or community college district may issue bonds that, in aggregation with bonds issued pursuant to Section 15270, shall not exceed(a)
(b)
SEC. 4.
Section 15268 of the Education Code is amended to read:15268.
The total amount of bonds issued, including bonds issued pursuant to Chapter 1 (commencing with Section 15100), shall not exceedSEC. 5.
Section 15270 of the Education Code is amended to read:15270.
(a) Notwithstanding Sections 15102 and 15268,SEC. 6.
Section 17070.15 of the Education Code is amended to read:17070.15.
The following terms, wherever used or referred to in this chapter, shall have the following meanings, respectively, unless a different meaning appears from the context:(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
SEC. 7.
Section 17070.415 is added to the Education Code, immediately following Section 17070.41, to read:17070.415.
(a) A fund is hereby established in the State Treasury, to be known as the 2020 State School Facilities Fund. All money in the fund, including any money deposited in that fund from any source whatsoever, and notwithstanding Section 13340 of the Government Code, is hereby continuously appropriated without regard to fiscal years for expenditure pursuant to this chapter.SEC. 8.
Section 17070.43 of the Education Code is amended to read:17070.43.
(a) A county school facilities fund is hereby established in the county treasury within each county for each school district in the county.SEC. 9.
Section 17070.51 of the Education Code is amended to read:17070.51.
(a) If any certified eligibility or funding application related information is found to have been falsely certified by school districts, architects or design professionals, hereinafter referred to as a material inaccuracy, the Office of Public School Construction shall notify the board.SEC. 10.
Section 17070.53 of the Education Code is repealed.(a)The Office of Public School Construction shall report to the board and the Legislature by March 1, 2015, on efforts to streamline and speed up the award of seismic mitigation funds.
(b)The report required to be submitted to the Legislature shall be submitted in accordance with Section 9795 of the Government Code.
(c) This section shall remain in effect only until January 1, 2016, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2016, deletes or extends that date.
SEC. 11.
Section 17070.54 is added to the Education Code, to read:17070.54.
(a) As a condition of participating in the school facilities program, a school district shall submit to the department, a five-year school facilities master plan, or updated five-year school facilities master plan, approved by the governing board of the school district.SEC. 12.
Section 17070.56 is added to the Education Code, to read:17070.56.
(a) (1) On a quarterly basis, the department shall prioritize the processing and review of modernization applications to participate in the school facilities program, and associated materials submitted by school districts, consistent with the following priorities:SEC. 13.
Section 17070.57 is added to the Education Code, to read:17070.57.
(a) A school district submitting an application for an apportionment shall include all of the following as part of the school district’s application package:SEC. 14.
Section 17070.59 is added to the Education Code, to read:17070.59.
For purposes of determining the points used to compute the adjustments applied pursuant to Sections 17072.30 and 17074.16, the department shall compute the sum of the following point computations applicable to each school district:SEC. 15.
Section 17070.65 of the Education Code is amended to read:17070.65.
SEC. 16.
Section 17070.75 of the Education Code is amended to read:17070.75.
(a) The board shall require the school district to make all necessary repairs, renewals, and replacements to ensure that a project is at all times maintained in good repair, working order, and condition. All costs incurred for this purpose shall be borne by the school district.SEC. 17.
Section 17070.75 is added to the Education Code, to read:17070.75.
(a) The board shall require the school district to make all necessary repairs, renewals, and replacements to ensure that a project is at all times maintained in good repair, working order, and condition. All costs incurred for this purpose shall be borne by the school district.SEC. 18.
Section 17070.76 of the Education Code is repealed.Notwithstanding Section 17070.75, for the 2003–04 fiscal year, the board shall only require a school district to deposit into the account established pursuant to paragraph (1) of subdivision (b) of Section 17070.75 an amount equal to 2 percent of the total expenditures by a district from its general fund in the 2003–04 fiscal year.
SEC. 19.
Section 17070.766 of the Education Code is repealed.Notwithstanding paragraph (2) of subdivision (b) of Section 17070.75, for the 2008–09, 2009–10, 2010–11, 2011–12, 2012–13, 2013–14, and 2014–15 fiscal years, the board shall require a school district to deposit into the account established pursuant to paragraph (1) of subdivision (b) of Section 17070.75 only an amount equal to 1 percent of the total expenditures by a district from its general fund in the 2008–09, 2009–10, 2010–11, 2011–12, 2012–13, 2013–14, and 2014–15 fiscal years respectively, but if the school district maintains its facilities in good repair, as defined in Section 17002, it shall be exempt from this 1 percent requirement. A school district may elect to deposit into the account an amount that is greater than the amount required by the board
pursuant to this section.
SEC. 20.
Section 17070.99 of the Education Code is repealed.(a)The board shall conduct an evaluation on the cost of new construction and modernization of small high schools in conjunction with the pilot program established pursuant to subdivision (c) of Section 17072.10, as it read on January 1, 2005.
(b)The State Department of Education shall conduct an evaluation that focuses on pupil outcomes, including, but not limited to, academic achievement and college attendance rates, at the small high schools constructed pursuant to subdivision (c) of Section 17072.10, as it read on January 1, 2005, and on the reasons school districts do not currently opt to build small high schools.
(c)The evaluations required pursuant to subdivisions (a) and (b) shall be completed no later than two years after the opening of the last small high school constructed pursuant to subdivision (c) of Section 17072.10, as it read on January 1, 2005.
(d)The evaluations conducted pursuant to subdivisions (a) and (b) shall be used to inform the direction of future school facilities construction and related bond measures.
SEC. 21.
Section 17071.10 of the Education Code is amended to read:17071.10.
(a) The calculation determined by this article shall be made on a one-time basis, and will be used as the baseline for eligibility determinations pursuant to this chapter.SEC. 22.
Section 17071.25 of the Education Code is amended to read:17071.25.
(a) The existing school building capacity in the applicant school district or, where appropriate, in the attendance area, at the time of initial application shall be calculated pursuant to the following formula:SEC. 23.
Section 17071.75 of the Education Code is amended to read:17071.75.
After(a)A school district that applies to receive funding for new construction shall use the following methods to determine projected enrollment:
(1)A school district that has two or more schoolsites each with a pupil population density that is greater than 115 pupils per acre in kindergarten and grades 1 to 6, inclusive, or a schoolsite pupil population density that is greater than 90 pupils per acre in grades 7 to 12, inclusive, as determined by the Superintendent using enrollment data from the California Basic Educational Data System for the 2004–05 school year, may submit an application for funding for projects that will relieve overcrowded conditions. That school district may also submit an alternative enrollment projection for the fifth year beyond the fiscal year in which the application is made using a methodology other than the cohort survival enrollment projection method as defined by the board pursuant to paragraph (2), to be reviewed by the Demographic Research Unit of the Department of Finance, in consultation with the department and the Office of Public School Construction. If the Office of Public School Construction and the Demographic Research Unit of the Department of Finance jointly determine that the alternative enrollment projection provides a reasonable estimate of expected enrollment demand, a recommendation shall be forwarded to the board to approve or disapprove the application, in accordance with all of the following:
(A)Total funding for new construction projects using this method shall be limited to five hundred million dollars ($500,000,000), from the Kindergarten-University Public Education Facilities Bond Act of 2004.
(B)The eligibility amount for proposed projects that relieve overcrowding is the difference between the alternative enrollment projection method for the year the application is submitted and the cohort survival enrollment projection method, as defined by paragraph (2), for the same year, adjusted by the existing pupil capacity in excess of the projected enrollment according to the cohort survival enrollment projection method.
(C)The Office of Public School Construction shall determine whether each proposed project will relieve overcrowding, including, but not limited to, the elimination of the use of Concept 6 calendars, four track year-round calendars, or busing in excess of 40 minutes, and recommend approval to the board. The number of unhoused pupil grants requested in the application for funding from the eligibility determined pursuant to this paragraph shall be limited to the number of seats necessary to relieve overcrowding, including, but not limited to, the elimination of the use of Concept 6 calendars, four track year-round calendars, or busing in excess of 40 minutes, less the number of unhoused pupil grants attributed to that school as a source school in an approved application pursuant to Section 17078.24.
(D)A school district shall use the same alternative enrollment projection methodology for all applications submitted pursuant to this paragraph and shall calculate those projections in accordance with the same districtwide or high school attendance area used for the enrollment projection made pursuant to paragraph (2).
(2)A school
(3)(A)
SEC. 24.
Section 17072.15 of the Education Code is repealed.In conjunction with the State Department of Education and the Department of Finance, the Legislative Analyst shall review the method of funding the construction and modernization of school facilities for special education pupils and the amount provided per unhoused special education pupil pursuant to Sections 17072.10 and 17074.10. Pursuant to this review, the Legislative Analyst shall recommend modifications to this method that he or she deems to be advisable on or before September 1, 1999.
SEC. 25.
Section 17072.17 of the Education Code is repealed.In conjunction with the State Department of Education, the Department of Finance, and the Legislative Analyst, the Department of General Services shall review the method of funding the construction and modernization of school facilities for continuation high school, community day school, county community school, and county community day school, teaching stations pursuant to Sections 17072.10 and 17074.10. Pursuant to this review, the Director of General Services shall, by September 1, 2000, recommend modifications to this method that he or she deems to be advisable.
SEC. 26.
Section 17072.25 of the Education Code is repealed.(a)The board shall adopt regulations to develop a mechanism to rank approved applications for new construction funding. This mechanism shall be used to determine the priority of approved applications when either of the following conditions are met:
(1)The total state funds necessary for funding all approved projects pursuant to this chapter exceed the total state funds in the fund for allocation pursuant to this chapter.
(2)The actual amount of unallocated proceeds of state bonds available on or after July 1, 2000, for new construction for the purposes of this chapter is at three hundred million dollars ($300,000,000).
(b)The ranking mechanism shall allocate priority points based upon the percentages of currently and projected unhoused pupils relative to the total population of the applicant district or attendance area and the total number of currently and projected unhoused pupils in an applicant district or attendance area.
(c)The board may award priority points based on other factors that in its judgment result in the most equitable distribution of resources among applicants. The additional factors may not constitute greater than a 10-percent weight in the overall priority ranking.
(d)This section shall apply only to projects funded with the proceeds of state bonds approved by the voters prior to January 1, 2002.
SEC. 27.
Section 17072.30 of the Education Code is amended to read:17072.30.
(a) Subject to the availability of funds,(b)This section is operative January 1, 2008.
(A)
SEC. 28.
Section 17072.32 of the Education Code is repealed.(a)For any project that has received an apportionment pursuant to Section 17072.30, funding shall be released in amounts equal to the amount of the local match upon certification by the school district that the school district has entered into a binding contract for completion of the approved project.
(b)This section is operative January 1, 2008.
SEC. 29.
Section 17072.35 of the Education Code is amended to read:17072.35.
(a) A grant for new construction may be used for any and all costs necessary to adequately house new pupils in any approved project, and those costs may only include the cost of design, engineering, testing, inspection, plan checking, construction management, site acquisition and development, evaluation and response action costs relating to hazardous substances at a new or existing schoolsite, demolition, construction, acquisition and installation of portable classrooms, landscaping, necessary utility costs, utility connections and other fees, equipment including telecommunication equipment to increase school security, furnishings, and the upgrading of electrical systems or the wiring or cabling of classrooms in order to accommodate educationalSEC. 30.
Section 17073.15 of the Education Code is amended to read:17073.15.
(a) A school district is eligible to receive an apportionment for the modernization of a permanent school building that is more than 25 years old or a portable classroom that is at least 20 years old. A school district is eligible to receive an additional apportionment for the modernization of a permanent school building every 25 years after the date of the previous apportionment or a portable classroom every 20 years after the previous apportionment.SEC. 31.
Section 17073.25 of the Education Code is amended to read:17073.25.
(a) Notwithstanding anySEC. 32.
Section 17074.10 of the Education Code is amended to read:17074.10.
(a) The board shall determine the total funding eligibility of a school district for modernization funding by multiplying the following amounts by each pupil of that grade level housed in school buildings that satisfy the requirements of Section 17073.15:SEC. 33.
Section 17074.15 of the Education Code is repealed.(a)The board shall release disbursements to school districts with approved applications for modernization, to the extent state funds are available for the state’s 80-percent share, and the school district has provided its 20-percent local match. Subject to the availability of funds, the board shall apportion funds to an eligible school district only upon the approval of the project by the Department of General Services pursuant to the Field Act, as defined in Section 17281, including, but not limited to, a project that complies with the Field Act by complying with Section 17280.5, and evidence that the certification by the school district that the required 20-percent matching funds from local sources have been expended by the district for the project, or have been deposited in the county fund or will be expended by the district by the time of completion of the project, and evidence that the district has entered into a binding contract for the completion of that project. If state funds are insufficient to fund all qualifying school districts, the board shall fund all qualifying school districts in the order in which the application for funding was approved by the board.
(b)This section shall apply only to an application filed on or before April 29, 2002, regardless of the source of state bond funding.
SEC. 34.
Section 17074.16 of the Education Code is amended to read:17074.16.
(a) The board shall release disbursements to school districts with approved applications for modernization, to the extent state funds are available for the state’s 60-percent share, and the school district has provided its 40-percent local match. Subject to the availability of funds, the board shall apportion funds to an eligible school district only upon the approval of the project by the Department of General Services pursuant to the Field Act, as defined in Section 17281, including, but not limited to, a project that complies with the Field Act by complying with Section 17280.5, and evidence that the certification by the school district that the required 40-percent matching funds from local sources have been expended by the district for the project, or have been deposited in the county fund or will be expended by the district by the time of completion of the project, and evidence that the district has entered into a binding contract for the completion of that project. If state funds are insufficient to fund all qualifying school districts, the board shall fund all qualifying school districts in the order in which the application for funding was approved by the board.SEC. 35.
Section 17074.25 of the Education Code is amended to read:17074.25.
(a) (1) A modernization apportionment may be used for an improvement to extend the useful life of, or to enhance the physical environment of, the school. The improvement may only include the cost of design, engineering, testing, inspection, plan checking, construction management, demolition, construction, the replacement of portable classrooms, necessary utility costs, utility connection and other fees, the purchase and installation of air-conditioning equipment and insulation materials and related costs, furniture and equipment, including telecommunication equipment to increase school security, fire safety improvements, playground safety improvements, the identification, assessment, or abatement of hazardous asbestos, seismic safety improvements, and the upgrading of electrical systems or the wiring or cabling of classrooms in order to accommodate educational(b)
SEC. 36.
Section 17074.27 of the Education Code is repealed.In addition to the uses specified in Section 17074.25, a modernization apportionment may also be used for the control, management, or abatement of lead.
SEC. 37.
Section 17075.10 of the Education Code is repealed.(a)A school district may apply for hardship assistance in cases of extraordinary circumstances. Extraordinary circumstances may include, but are not limited to, the need to repair, reconstruct, or replace the most vulnerable school facilities that are identified as a Category 2 building, as defined in the report submitted pursuant to Section 17317, determined by the department to pose an unacceptable risk of injury to its occupants in the event of a seismic event.
(b)A school district applying for hardship state funding under this article shall comply with either paragraph (1) or (2).
(1)Demonstrate both of the following:
(A)That due to extreme financial, disaster-related, or other hardship the school district has unmet need for pupil housing.
(B)That the school district is not financially capable of providing the matching funds otherwise required for state participation, that the district has made all reasonable efforts to impose all levels of local debt capacity and development fees, and that the school district is, therefore, unable to participate in the program pursuant to this chapter except as set forth in this article.
(2)Demonstrate that due to unusual circumstances that are beyond the control of the district, excessive costs need to be incurred in the construction of school facilities. Funds for the purpose of seismic mitigation work or facility replacement pursuant to this section shall be allocated by the board on a 50-percent state share basis from funds reserved for that purpose in any bond approved by the voters after January 1, 2006. If the board determines that the seismic mitigation work of a school building would require funding that is greater than 50 percent of the funds required to construct a new facility, the school district shall be eligible for funding to construct a new facility under this chapter.
(c)The board shall review the increased costs that may be uniquely associated with urban construction and shall adjust the per-pupil grant for new construction or modernization hardship applications as necessary to accommodate those costs. The board shall adopt regulations setting forth the standards, methodology, and a schedule of allowable adjustments, for the urban adjustment factor established pursuant to this subdivision.
SEC. 38.
Section 17075.10 is added to the Education Code, to read:17075.10.
(a) (1) A school district shall demonstrate, for health and safety projects that are determined by the department to pose an unacceptable risk of injury to its occupants in the event of a seismic event, both of the following to the satisfaction of the board:SEC. 39.
Section 17075.15 of the Education Code is amended to read:17075.15.
(a) From funds available from any bond act for the purpose of funding facilities for school districts with a financial hardship, the board may provide other construction, modernization, or relocation assistance as set forth in this chapter or Chapter 14 (commencing with Section 17085) to the extent that severe circumstances may require, and may adjust or defer the local financial participation, as pupil health and safety considerations require to the extent that bond act funds are provided for this purpose.SEC. 40.
Section 17075.20 is added to the Education Code, immediately following Section 17075.15, to read:17075.20.
(a) Notwithstanding any other law, the board may provide assistance under this chapter for purposes of procuring interim housing, including, but not limited to, the leasing or acquisition of portable classrooms and any work associated with placing them on a site, to school districts and county offices of education impacted by a natural disaster for which the Governor has declared a state of emergency. The allocated funds shall supplement funding from insurance or any other local, state, or federal government disaster assistance.SEC. 41.
Section 17077.35 of the Education Code is amended to read:17077.35.
(a) An applicant school districtSEC. 42.
Article 10.7 (commencing with Section 17077.60) is added to Chapter 12.5 of Part 10 of Division 1 of Title 1 of the Education Code, to read:Article 10.7. Testing and Remediation of Lead Levels in Water at Schoolsites
17077.60.
(a) (1) With funds made available for this purpose, the board shall provide a grant to test for lead in water outlets used for drinking or preparing food on schoolsites serving kindergarten or any of grades 1 to 12, inclusive, that were constructed before January 1, 2010, and for the remediation of any water outlet used for drinking or preparing food with lead levels in excess of 15 parts per billion.SEC. 43.
Article 11.5 (commencing with Section 17078.40) is added to Chapter 12.5 of Part 10 of Division 1 of Title 1 of the Education Code, to read:Article 11.5. Assistance to Small School Districts
17078.40.
The following definitions apply to this article:17078.41.
(a) Unless this article expressly provides otherwise, the provisions contained in the other articles of this chapter shall apply with equal force to a project funded under this article. This article shall control over the provisions of this chapter contained in other articles only to the extent that this article expressly conflicts with those provisions.17078.42.
Notwithstanding subdivision (a) of Section 17072.30 and subdivision (a) of Section 17074.16, as applicable:17078.43.
The board shall adopt regulations setting forth all of the following:SEC. 44.
Section 17078.52 of the Education Code is amended to read:17078.52.
(a) There is hereby established the Charter Schools Facilities Program to provide funding to qualifying entities for the purpose of establishing school facilities for charter school pupils.SEC. 45.
Section 17078.53 of the Education Code is amended to read:17078.53.
(a) The initial preliminary applications for projects to be funded pursuant to this article shall be submitted to the board by March 31, 2003. Thereafter, the board may establish subsequent application periods as needed.SEC. 46.
Section 17078.54 of the Education Code is amended to read:17078.54.
(a) An eligible project under this article shall include funding, as permitted by this chapter, for new construction orSEC. 47.
Section 17078.58 of the Education Code is amended to read:17078.58.
(a) Funding granted pursuant to this article may not exceed 100 percent of the total allowable project costs as determined by calculating double the per-pupil grant eligibility as set forth in Section 17072.10, and subdivision (e) of Section 17078.53, plus 100 percent of all other allowable construction project costs, as appropriate to the project, that would otherwise be available to school district projects as set forth in this chapter. Funding granted forSEC. 48.
Section 17078.62 of the Education Code is amended to read:17078.62.
(a) As a first priority, the existing charter school shall be permitted to continue to use the facility until it is no longer needed by the charter school for charter school purposes.SEC. 49.
Section 17078.66 of the Education Code is repealed.The State Allocation Board and the California School Finance Authority shall jointly report to the Legislature by July 1, 2005, regarding all of the following:
(a)The implementation of this article, including, but not limited to, a description of the projects funded pursuant to this article from the Kindergarten-University Public Education Facilities Bond Act of 2004.
(b)A description of the process whereby the board provides funding for charter school facilities under provisions of this chapter other than this article.
(c)Recommendations, if any, regarding statutory changes needed to facilitate and streamline the process described in subdivision (b).
SEC. 50.
Section 17219 of the Education Code is amended to read:17219.
(a)SEC. 51.
Section 41024 of the Education Code is amended to read:41024.
(a) (1) Commencing April 1, 2017, a local educational agency that receives any funds pursuant to the Leroy F. Greene School Facilities Act of 1998 (Chapter 12.5 (commencing with Section 17070.10) of Part 10 of Division 1 of Title 1) shall annually report a detailed list of all expenditures of state funds, including interest, and of the local educational agency’s matching funds for completed projects until all state funds, including interest, all of the local educational agency’s matching funds, and savings achieved, including interest, pursuant to Section 17070.63, are expended in accordance with the requirements of the Leroy F. Greene School Facilities Act of 1998, associated regulations, and any accompanying grant agreement signed by a local educational agency. A local educational agency’s detailed list of expenditures shall identify expenditures on a project-by-project basis, reflect completed projects that were reimbursed within that fiscal year, and shall clearly indicate the list of projects that have been completed.(c)(1)The department shall provide the Office of Public School Construction with a copy of the audit identifying the amounts to be adjusted if, as a result of the audit conducted in accordance with the requirements of subdivisions (a) and (b), any of the following is determined:
(A)A local educational agency has unspent funds for the project not identified as savings pursuant to Section 17070.63, which are therefore required to be returned pursuant to subparagraphs (C) to (G), inclusive, of paragraph (1) of subdivision (b), and any accompanying grant agreement signed by a local educational agency.
(B)A local educational agency is subject to an increase or decrease in funds
provided pursuant to subparagraphs (C) to (G), inclusive, of paragraph (1) of subdivision (b), and any accompanying grant agreement signed by a local educational agency.
(C)A local educational agency failed to expend funds in accordance with the Leroy F. Greene School Facilities Act of 1998 (Chapter 12.5 (commencing with Section 17070.10) of Part 10 of Division 1 of Title 1) and any accompanying grant agreement signed by a local educational agency.
(2)Upon receipt of the audit, the Office of Public School Construction shall present any grant adjustments required pursuant to subparagraphs (A) and (B) of paragraph (1) for a specified project to the State Allocation Board for an adjustment to the project apportionment. Funds identified for purposes of subparagraphs (A) and (B) of paragraph (1) shall be apportioned from, or returned to, the appropriate funds, as established in the
State Treasury pursuant to Section 17070.40 or 17070.41, as applicable. If a school district is required to return unspent funds, the fund source for returned funds shall be the county school facilities fund identified in subdivision (a) of Section 17070.43.
(3)The auditor conducting the audit pursuant to this section shall notify the department of any audit exceptions identified pursuant to this section and any amounts or adjustments identified pursuant to subparagraph (C) of paragraph (1) consistent with the notification requirements established in subdivision (l) of Section 41020.