California Senate Bill SB1205 Latest Draft

 BILL NUMBER: SB 1205AMENDED BILL TEXT AMENDED IN SENATE MARCH 28, 2012 INTRODUCED BY Senator Wyland FEBRUARY 22, 2012 An act to amend Section  15272 of the Education   53532 of the Government  Code, relating to school bonds. LEGISLATIVE COUNSEL'S DIGEST SB 1205, as amended, Wyland. School bonds:  ballot requirements.   discounts.   Existing law specifies that bonds issued by a local agency, as defined, may bear interest at a coupon rate or rates as determined by the legislative body in its discretion but not to exceed 12% per year payable. Existing law also specifies that, notwithstanding this provision, a local agency may, where authorized by law, sell bonds at a discount below par.   This bill would prohibit a school district or community college district from issuing bonds at a discount exceeding 5%, as specified.   Existing law authorizes the governing board of a school district, community college district, or school facilities improvement district, pursuant to a 2/3 vote of the governing board, to pursue the authorization and issuance of bonds by a 55% vote of the electorate, subject to certain additional requirements. Existing law requires, for bond measures pursued under this authority, in addition to specified ballot requirements, that the ballot be printed with a statement that the governing board will appoint a citizens' oversight committee and conduct annual independent audits to ensure that funds are spent only on school and classroom improvements and for no other purposes.   This bill would make various nonsubstantive changes to the latter provision.  Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION   1.   Section   53532 of the   Government Code   is amended to read:  53532. The provisions of Section 53531 shall apply only to coupon rates and shall not affect the power of a local agency to sell bonds at a discount below par if permitted by law  , except that a school district or community college district shall not issue bonds at a discount exceeding 5 percent as provided by subdivi   sion (e) of Section 15146 of the Education Code  . Any provision of law permitting bonds to be sold at a discount but specifying a maximum interest yield on bonds sold at a discount to the contrary notwithstanding, the bonds may be sold at a price yielding to the purchaser an effective interest rate of not to exceed 12 percent per year, payable as permitted by law, according to standard tables of bond values.  SECTION 1.   Section 15272 of the Education Code is amended to read: 15272. In addition to the ballot requirements of Section 15122 and the ballot provisions of this code applicable to governing board member elections, for bond measures pursuant to this chapter, the ballot shall also be printed with a statement that the governing board of a school district, community college district, or school facilities improvement district will appoint a citizens' oversight committee and conduct annual independent audits to ensure that funds are spent only on school and classroom improvements and for no other purposes.