An act to add Part 53 (commencing with Section 88700) to Division 7 of Title 3 of the Education Code, relating to financing community college career technical education facilities and equipment, by providing the funds necessary therefor through an election for the issuance and sale of bonds of the State of California and for the handling and disposition of those funds.

The people of the State of California do enact as follows:


SECTION 1.
Part 53 (commencing with Section 87700) is added to Division 7 of Title 3 of the Education Code, to read:
PART 53. Community College Career Technical Education Bond Act
Article  1. Title
87700.
This part shall be known, and may be cited, as the Community College Career Technical Education Bond Act.
Article  2. Definitions
87701.
As used in this part, the following terms have the following meanings:
(a) “Committee” means the Community College Career Technical Education Bond Act Finance Committee created pursuant to Section 87721.
(b) “Fund” means the Community College Career Technical Education Bond Fund created pursuant to Section 87705.
Article  3. Community College Career Technical Education Bond Fund
87705.
The proceeds of bonds issued and sold pursuant to this part shall be deposited in the Community College Career Technical Education Bond Fund, which is hereby created in the State Treasury.
87706.
The Chancellor of the California Community Colleges may issue grants from the fund for the limited purpose of buying and maintaining career technical education facilities and equipment to regions in the state that do both of the following:
(a) Establish a need for career technical education equipment and facilities in order to meet a local employment need.
(b) Within the region, establish community colleges that specialize in various types of career technical education, including, but not limited to, health-related industries, automotive and transportation industries, information technology industries, entertainment and culinary arts, and performing art technology.
87707.
Nothing in this article shall prevent a community college from charging tuition and fees commensurate with the costs of providing career technical education. Moneys from the fund shall supplement and not supplant moneys received from charging tuition and fees.
Article  4. Fiscal Provisions
87720.
(a) Bonds in the total amount of five hundred million dollars ($500,000,000), or so much thereof as is necessary, not including the amount of any refunding bonds issued in accordance with Section 87726 may be issued and sold to provide a fund to be used for carrying out the purposes expressed in this part 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) The Treasurer shall sell the bonds authorized by the committee pursuant to this section. The bonds shall be sold upon the terms and conditions specified in a resolution to be adopted by the committee pursuant to Section 16731 of the Government Code.
87720.5.
The bonds authorized by this part 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 part and are hereby incorporated in this part as though set forth in full in this part, except subdivisions (a) and (b) of Section 16727 of the Government Code.
87721.
(a) Solely for the purpose of authorizing the issuance and sale pursuant to 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) of the bonds authorized by this part, the Community College Career Technical Education Bond Act Finance Committee is hereby created. For purposes of this part, the Community College Career Technical Education Bond Act Finance Committee is “the committee” as that term is used in the State General Obligation Bond Law.
(b) The committee consists of the Governor, the Controller, the Treasurer, the Director of Finance, and the Chancellor of the California Community Colleges. Notwithstanding any other provision of law, any member may designate a representative to act as that member in his or her place for all purposes, as though the member were personally present.
(c) The Chancellor of the California Community Colleges shall serve as chairperson of the committee.
(d) A majority of the committee may act for the committee.
87721.5.
The committee shall determine whether or not it is necessary or desirable to issue bonds authorized pursuant to this part in order to carry out the actions specified in this part 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.
87722.
For purposes of the State General Obligation Bond Law, “board,” as defined in Section 16722 of the Government Code, means the Chancellor of the California Community Colleges.
87722.5.
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. 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 that is necessary to collect that additional sum.
87723.
Notwithstanding Section 13340 of the Government Code, there is hereby appropriated from the General Fund in the State Treasury, for the purposes of this part, 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 part, as the principal and interest become due and payable.
(b) The sum that is necessary to carry out the provisions of Section 87724.5, appropriated without regard to fiscal years.
87723.5.
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 part less any amount withdrawn pursuant to Section 87724.5. 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 part. 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 in accordance with this part.
87724.
Notwithstanding any other provision of this part, or of the State General Obligation Bond Law, 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 under designated conditions or is otherwise entitled to any federal tax advantage, 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, as may be 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.
87724.5.
For the purposes of carrying out this part, 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 committee to be sold for the purpose of carrying out this part less any amount borrowed pursuant to Section 87723.5. Any amounts withdrawn shall be deposited in the fund. Any money made available under this section shall be returned to the General Fund, with interest at the rate earned by the money in the Pooled Money Investment Account, from proceeds received from the sale of bonds for the purpose of carrying out this part.
87725.
All money deposited in the fund that is derived from premium and accrued interest on bonds sold pursuant to this part shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest, except that amounts derived from premium may be reserved and used to pay the cost of bond issuance prior to any transfer to the General Fund.
87725.5.
Pursuant to Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code, the cost of bond issuance shall be paid out of the bond proceeds, including premium, if any. To the extent the cost of bond issuance is not paid from premiums received from the sale of bonds, these costs shall be shared proportionately by each program funded through this part by the applicable bond sale.
87726.
The bonds issued and sold pursuant to this part 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 voters of the state for the issuance of the bonds under this part shall include approval of the issuance of any bonds issued to refund any bonds originally issued under this part or any previously issued refunding bonds.
87726.5.
The proceeds from the sale of bonds authorized by this part are not “proceeds of taxes” as that term is used in Article XIII B and Section 8 of Article XVI of the California Constitution, and the disbursement of these proceeds is not subject to the limitations imposed by Article XIII B of the California Constitution.
SEC. 2.
Section 1 of this act shall take effect upon the approval by the voters of the Community College Career Technical Education Bond Act, as set forth in that section, which shall be submitted to the voters at the November 8, 2016, statewide general election.

Summary: Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law establishes community college districts throughout the state, and authorizes them to operate campuses and provide instruction to students.
This bill would enact the Community College Career Technical Education Bond Act, which, if adopted by the voters at the November 8, 2016, statewide general election, would authorize the issuance of bonds in amount of $500,000,000 pursuant to the State General Obligation Bond Law to finance a community college career technical education bond program.