HomeMy WebLinkAboutMINUTES - 06032014 - C.64RECOMMENDATION(S):
ADOPT a "Support" position on SB 1455, as amended (DeSaulnier): California Reading and Literacy Improvement
and Public Library Construction and Renovation Bond Act, a bill that enacts and submits the Bond Act to the voters
at the 2016 statewide primary election, as recommended by the Legislation Committee. If approved by the voters, the
Act would authorize the issuance of an unspecified amount in general obligation bonds for public library construction
and renovation.
FISCAL IMPACT:
Senate Bill 1455 authorizes the sale of an unspecified amount of bonds, for voters to consider on the November 2016
ballot. Unknown impact on Contra Costa County.
BACKGROUND:
This bill enacts the California Reading and Literacy Improvement and Public Library Construction and Renovation
Bond Act of 2016. At its May 1, 2014 meeting, the Legislation Committee voted unanimously to recommend that the
Board of Supervisors adopt a position of "Support" on SB 1455.
Current Status:
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 06/03/2014 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: L. DeLaney,
925-335-1097
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board
of Supervisors on the date shown.
ATTESTED: June 3, 2014
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
C. 64
To:Board of Supervisors
From:LEGISLATION COMMITTEE
Date:June 3, 2014
Contra
Costa
County
Subject:Support Position on SB 1455 ,as amended, DeSaulnier: CA Reading & Literacy Improvement and Public Library
Construction and Renovation Bond Act of 2016
BACKGROUND: (CONT'D)
05/06/2014: In SENATE. Read second time and amended. Re-referred to Committee on
APPROPRIATIONS.
Background and Existing Law
When public agencies issue bonds, they essentially borrow money from investors, who provide cash in exchange
for the agencies' commitment to repay the principal amount of the bond plus interest in the future. Bonds are
usually either revenue bonds, which repay investors out of revenue generated from the project the agency buys
with bond proceeds, like a parking garage, or general-obligation bonds, which the public agency pays out of
general revenues and is guaranteed by its full faith and credit.
Section 1 of Article XVI of the California Constitution and the state's General Obligation Bond Law guide the
issuance of the state's general obligation debt. The Constitution allows the Legislature to place general obligation
bonds on the ballot for specific purposes with a two-thirds vote of the Assembly and Senate. Voters also can place
bonds on the ballot by initiative, as they have for parks, water projects, high-speed rail, and stem cell research,
among others in recent years. Either way, general obligation bonds must be ratified by majority vote of the state's
electorate. Unlike local general obligation bonds, when the state's electorate approves a state general obligation
bond, they don't automatically trigger an increased tax or other revenue stream to repay the bonds. Article XVI of
the California Constitution commits the state to repay investors from general revenues above all other claims,
except payments to public education. California voters approved $38.4 billion of general obligation bonds between
1974 and 1999, but approximately $95 billion since 2000.
Bond acts have standard provisions that authorize the Treasurer to sell a specified amount of bonds, and generally
include several uniform provisions that:
Establish the state's obligation to repay them, and pledge its full faith and credit to repayment, Set forth issuance
procedures, and link the bond act to the state's General Obligation Bond Law, Create a finance committee with
specified membership, chaired by the State Treasurer, Direct the committee to determine whether it is "necessary
or desirable" to issue the bonds, Add other mechanisms necessary for the Treasurer and the Department of
Finance to implement the Bond Act, including allowing the board to request a loan from the Pooled Money
Investment Board to advance funds for bond-funded programs prior to the bond sale, among others.
In bond acts, the Legislature generally:
* Sets forth categories of projects eligible for bond funds, such as library construction or school facility
modernization,
* Chooses an administrative agency to award the funds, such as the State Librarian or the State Allocation Board,
* Sets the criteria to guide the administrative agency's funding in each category,
* Enacts enforcement and audit provisions, and
* Provides for an election to approve the bond act.
Should the voters approve the bond act, the Legislature then appropriates funds to the chosen state agencies to
fund projects consistent with the criteria, generally as part of the Budget Act. The Department of Finance then
surveys departments to determine need for bond funds based on a project's readiness, and then asks the Treasurer
to sell bonds in a specified amount. After the bond sale, the Department of Finance determines which bond acts
and departments receive bond proceeds.
Voters have approved the following legislative bond acts for libraries:
The California Library Construction and Renovation Bond Act of 1988 for $75 million (SB 181, Keene, 1988).
The California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of
2000 for $350 million (SB 3, Rainey, 2000)
In June of 2006, the voters rejected Proposition 81, a $600 million state general obligation bond measure.
Proposed Law
Senate Bill 1455 enacts the California Reading and Literacy Improvement and Public Library Construction and
Renovation Bond Act of 2016, which authorizes the sale of an unspecified amount of bonds, for voters to
consider on the November, 2016 ballot. The State Librarian administers the bond, and can adopt rules,
regulations, and policies for implementation.
The bill creates the California Public Library Construction and Renovation Fund into which the proceeds of the
bond sale are to be deposited, and continuously appropriates moneys in the fund to the State Librarian to fund
grants to agencies authorized at the time of their application to own and maintain a library.
Grant recipients must provide a 35% match of grant funds for the costs of the project, with the remaining 65%
coming from bond funds. Agencies must match funds with cash used for specified purposes no less than five
years before they can apply for bond funds. In-kind donations do not count as matching funds, but land donated
or acquired for the facility more than five year prior to the application may count toward the 35% at its appraised
value on the date of the application so long as state education facility bonds didn't pay for it. Past payments to
architects for plans and drawings count toward the 35% regardless of when they were incurred.
The measure allows grant and matching funds to be used for:
Acquiring or constructing new facilities, adding to existing public libraries, or acquiring land necessary for either,
Remodeling or rehabilitating existing public library facilities, or converting other facilities to libraries, so long as
the funds are used to upgrade electrical and telecommunications system to accommodate the internet. Procure or
install furnishings or equipment to make a facility operable, Paying architects, engineers, and other professionals
whose services are required to plan or execute a project, Service charges paid to public works or other
departments required by the applicant jurisdiction when providing professional services if billed directly to the
project.
Grant and matching funds cannot be used for:
Books and other library materials, Administrative costs, such as preparing grant applications, procuring matching
funds, or conducting an election, Interest or other carrying charges to finance the project, and Ongoing operating
expenses.
An agency must apply for more than $500,000, and cannot apply for a project for which it has already advertised
construction bids. The agency must award construction contracts for any bond-funded projects on a competitive
basis pursuant to the Public Contracts Code.
The bill sets up the California Public Library Construction and Renovation Board, comprised of:
The State Librarian, An Assemblymember appointed by the Speaker of the Assembly, A Senator appointed by the
Senate Committee on Rules, and Two members appointed by the Governor.
Legislative members shall participate in the Board's work only to the extent it's not incompatible with their
legislative duties. Members of the Legislature who are members of the board constitute a joint committee.
The Board must consider the following factors when considering applications:
The needs of urban, suburban, and rural areas, The age and condition of existing library facilities within the area,
The degree to which existing facilities are inadequate to serve the library service areas' residents, The degree to
which the proposed projects respond to the needs of the area's residents, The degree to which the library integrates
appropriate electronic technologies into the project, The financial commitment of the applicant to open, operate,
and maintain the proposed project after completion.
The estimated costs in project applications must be consistent with normal public construction costs in the
applicant's geographic area, but may exceed that amount by up to 65% of the costs, up to $30 million, if the
applicant certifies it's capable of financing the higher amount from other sources. Applicants cannot increase
requested amounts after the board approves the application, and must return any funding allocated that exceeds the
project's costs. The applicant must return all funding to the Board if it's awarded funding, but doesn't go through
with the project. The board may withdraw a grant and award funds to another applicant if the State Librarian
determines that a grant recipient hasn't complied with the terms of its grant award.
Any facility that receives bond funds must be dedicated to public library direct service for at least 20 years. The
board can recover from the recipient an amount equal to the grant amount multiplied by a ratio of the value of the
facility or its appropriate part to the amount of the state grant if the applicant or its successor fails to maintain the
library in service for less than 20 years. The Board must deposit any recovered funds into the Fund, and can
allocate them to different projects. The State Librarian may also transfer the financial interest that the state may
have in the land or facility resulting from bond funds through an exchange for a replacement site acquired for the
same purpose.
SB 1455 includes standard provisions from bond acts, and incorporates other provisions from the General
Obligation Bond Law by reference, except for its limits on the use of the proceeds from the sale of bonds. The bill
creates a finance committee to determine whether it is necessary or desirable to issue the bonds, consisting of the
following or their designated representatives:
The State Treasurer, as chair, The Director of Finance, The State Librarian.
SB 1455 allows the State Librarian to use bonds funds for the actual amount of office, personnel, and other
customary and usual expenses for directly administering grants. The measure also:
Allows the State Librarian to request a loan from the Pooled Money Investment Board, Clarifies that bond
proceeds are not subject to the "Gann Limits" on government spending. Provides specific direction to the
Secretary of State for the contents of the ballot containing the bond act, and provides that if voting machines are
used, the voters' expression using machines complies with the bill. Directs the State Librarian to prepare a
comprehensive assessment on the statewide need for new construction, renovation, and rehabilitation of public
libraries, and submit a report to the Governor, Legislative Analyst, and appropriate policy and fiscal committees
of the Legislature on or before August 15, 2015.
SB 1455 also makes legislative findings and declarations that support its purposes.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill. According to the author, "SB 1455 would place a General Obligation Bond measure on the
2016 statewide general election ballot to fund library construction and renovations. SB1455 would also require the
California State Library to conduct a needs assessment on construction and renovation of library facilities. Public
libraries are a vital part of the educational system. They provide resources and services for all residents of
California, including preschoolers, K-12, and college-aged students. Today's libraries are offering essential public
services such as online homework tutoring, computer-based resume building, job search programs, and literacy
tutoring. In new communities, residents are demanding library facilities, and in older communities, many libraries
are inadequate and are in desperate need of rehabilitation or seismic retrofit upgrade. Several libraries lack the
physical infrastructure to allow them to benefit from modern broadband technology upgrades. The 2007 needs
assessment estimated over an $8 billion need in library construction and renovations. Because construction costs
needs has changed greatly since 2007, a new comprehensive needs assessment established in SB 1455 will
demonstrate the current need for new library construction and renovations. The construction and renovation of
public library facilities are necessary to expand access to these resources to all Californians."
2. Sixteen tons. Debt is an essential part of almost every government, business, and personal balance sheet, as
borrowers seek funds from lenders in exchange for a future commitment to repay them. However, evaluating the
State's general obligation debt is difficult; both the State Treasurer and the Legislative Analyst's Office suggest
there's no correct amount. Instead, experts suggest that states should look at three criteria, affordability,
comparability, and optimality[1]:
California's debt is affordable; the State Treasurer estimates that the state will spend 7.7% of General Fund
revenues on debt service in 2012-13. However, these costs limit funding other priorities, and debt service is one
of the fastest growing state costs, expected to reach $8.6 billion in 2017-18 assuming no new authorizations,
according to the Governor's Five-Year Infrastructure Plan. The Plan proposes no new general obligation bonds,
instead relying on more limited lease-revenue bonds because of the increased debt burden.
California's comparability to other states is less favorable. The State Treasurer's Debt Affordability Report
contains the following chart:
Debt Ratios Of 10 Most Populous States, Ranked By Ratio Of Debt To Personal Income
State Moody's/
S&P/Fitch(a) )
Debt To
Personal
Income(b)
Debt Per
Capita(b)
Debt As A
% Of State
GDP(b)(c)
Texas Aaa/AA+/AAA 1.5%$580 1.16%
Michigan Aa2/AA-/AA 2.2%$800 2.05%
North Carolina Aaa/AAA/AAA 2.4%$853 1.89%
Pennsylvania Aa2/AA/AA+ 2.8%$1,208 2.66%
Ohio Aa1/AA+/AA+ 2.8%$1,047 2.50%
Florida Aa1/AAA/AAA 2.8%$1,087 2.78%
Georgia Aaa/AAA/AAA 3.0%$1,061 2.51%
Illinois A3/A-/A- 5.7%$2,526 4.85%
California A1/A/A 5.8%$2,565 4.98%
New York Aa2/AA/AA 6.3%$3,174 5.36%
Moody's
Median All
States
2.8%$1,074 2.47%
Median For
The 10 Most
Populous
States
2.8%$1,074 2.59%
(a) Moody's, Standard & Poor's, and Fitch Ratings as of September 2012.
(b) Figures as reported by Moody's in its 2012 State Debt Medians Report released May 2012. As of calendar
year end 2011.
(c) State GDP numbers have a one-year lag.
Determining optimality, or whether government is investing in the quantity and quality of public capital desired
by residents, and financing the appropriate share with debt, is very difficult. LAO recommends that the Legislature
consider the recently released Five-Year Infrastructure Plan as a starting point to developing a coordinated
approach to infrastructure funding, and establish a committee to focus on statewide infrastructure.
3. Breadboxes and Elephants. SB 1455 calls for a library bond on the 2016 ballot, provides a structure for
allocating funds, and enacts all the fiscal provisions necessary for the Treasurer to sell bonds. However, it leaves
the amount of the bond blank. As such, it's hard to assess library bonds within the state's overall priorities for
general obligation debt, and the appropriate share of that debt used for libraries compared to the rest of the state's
infrastructure needs. The Committee may wish to consider deferring action on SB 1455 until such time as the
measure contains more specificity.
4. The good news. Investors ultimately determine a state's creditworthiness and the interest rate paid on a bond
when they bid to purchase a state bond. However, ratings issued from the three major ratings agencies often
inform investors regarding the investment risk they take when purchasing a California general obligation bond.
These ratings change over time in response to a state's fiscal situation and economy, among other factors. In
January, ratings agency Standard and Poor's raised the outlook on the state's general obligation debt from stable to
positive, which often portends an upgrade, following the agency's boost for California from A- to A last year, as
well as Fitch's upgrade last August. However, the state still has the second lowest rating in the nation.
5. The bad news. California has a distinct problem: of the $127 billion that voters have authorized, almost $27
billion hasn't been issued yet. The state hasn't is-sued almost $7 billion in transportation bonds, and $9.2 billion in
high speed rail bonds, because the projects haven't yet received the needed approvals. Should the voters approve
new general obligation debt for parks, the state would either have to sell sufficient debt to fund everything, and
increase debt service, or choose which projects will be funded first. Additionally, voters are currently slated to
consider the $11.1 billion Safe, Clean, and Reliable Drinking Water Supply Act on the November, 2014 ballot
(SBx7 2, Cogdill, 2010). If the voters approve that or a substitute water bond, then bonds for parks and other
purposes may have to wait some time before proceeds are available to fund programs.
Support and Opposition (04/24/14)
Support: Burbank Public Library; California Library Association; California Special Districts Association;
California State Association of Counties; City of Oakland; City of Yorba Linda; County of Sacramento; Friends
of the Goleta Valley Library; Friends of the Orangevale Library; Friends of the Sacramento Public Library; Palos
Verdes Library District; Santa Cruz City Council; Santa Cruz Public Libraries; University Heights Library Task
Force; 7 individual letters of support and 7 individual letters received from the Camarillo Public Library.
Opposition: None received.
CHILDREN'S IMPACT STATEMENT:
N/A
ATTACHMENTS
SB 1455 Bill Text
AMENDED IN SENATE APRIL 9, 2014
AMENDED IN SENATE MARCH 26, 2014
SENATE BILL No. 1455
Introduced by Senator DeSaulnier
February 21, 2014
An act to add Chapter 12.5 (commencing with Section 20020) to Part
11 of Division 1 of Title 1 of the Education Code, relating to financing
a public library construction and renovation program by providing the
funds necessary therefor through an election for the issuance and sale
of bonds of the State of California, and by providing for the handling
and disposition of those funds.
legislative counsel’s digest
SB 1455, as amended, DeSaulnier. California Reading and Literacy
Improvement and Public Library Construction and Renovation Bond
Act of 2014. 2016.
Existing law establishes the California Library Construction and
Renovation Bond Act of 1988 and the California Reading and Literacy
Improvement and Public Library Construction and Renovation Bond
Act of 2000. Existing law authorizes the issuance of bonds, pursuant
to the State General Obligation Bond Law, in the amount of $72,405,000
in the 1988 bond act and in the amount of $350,000,000 in the 2000
bond act, for the purpose of financing library construction and
renovation.
This bill would enact the California Reading and Literacy
Improvement and Public Library Construction and Renovation Bond
Act of 2014, 2016, for submission to the voters at the 2014 2016
statewide general election. The bill, if approved by the voters, would
authorize the issuance, pursuant to the State General Obligation Bond
97
Law, of an unspecified amount of bonds for the purpose of financing
library construction and renovation pursuant to a program administered
by the State Librarian. The bill would require the State Librarian to
prepare a comprehensive assessment on the statewide need for the new
construction, renovation, and rehabilitation of public libraries and to
submit a report to the Governor, the Department of Finance, the
Legislative Analyst, and the appropriate policy and fiscal committees
of the Legislature on or before August 15, 2015.
Vote: 2⁄3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. Chapter 12.5 (commencing with Section 20020)
line 2 is added to Part 11 of Division 1 of Title 1 of the Education Code,
line 3 to read:
line 4
line 5 Chapter 12.5. California Reading and Literacy
line 6 Improvement and Public Library Construction and
line 7 Renovation Bond Act of 2014 2016
line 8
line 9 Article 1. General Provisions
line 10
line 11 20020. This chapter shall be known, and may be cited, as the
line 12 California Reading and Literacy Improvement and Public Library
line 13 Construction and Renovation Bond Act of 2014. 2016.
line 14 20021. The Legislature finds and declares all of the following:
line 15 (a) Reading and literacy skills are fundamental to success in
line 16 our economy and our society.
line 17 (b) Public libraries are a vital part of the educational system.
line 18 They provide resources and services for all residents of California,
line 19 including preschoolers, out-of-school adults, senior citizens, at-risk
line 20 youth, and those attending schools at all levels.
line 21 (c) In many cases, libraries serve as a community’s only public
line 22 point of access to resources for learning and by extension,
line 23 self-sufficiency.
line 24 (d) The construction and renovation of public library facilities
line 25 is necessary to expand access to reading and literacy programs in
line 26 the state public education system and to expand access to public
line 27 library services for all residents of California.
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— 2 —SB 1455
line 1 (e) The need for library facilities continues to grow. A 2007
line 2 needs assessment compiled by the California State Library found
line 3 that there is a need for over eight billion dollars ($8,000,000,000)
line 4 in public library funding.
line 5 (f) In March 2000, California voters approved a bond measure
line 6 of three hundred fifty million dollars ($350,000,000) for library
line 7 construction and renovation.
line 8 (g) Due to the overwhelming response by applicants, the
line 9 California Public Library Construction and Renovation Board was
line 10 forced to deny approximately 75 percent of all applications due to
line 11 lack of additional bond funding.
line 12 20022. As used in this chapter, the following terms have the
line 13 following meanings:
line 14 (a) “Board” means the California Public Library Construction
line 15 and Renovation Board of 2014 2016 established pursuant to Section
line 16 20023.
line 17 (b) “Committee” means the California Library Construction
line 18 and Renovation Finance Committee established pursuant to Section
line 19 19972 and continued in existence pursuant to Section 20038 for
line 20 purposes of this chapter.
line 21 (c) “Fund” means the California Public Library Construction
line 22 and Renovation Fund of 2014 2016 established pursuant to Section
line 23 20024.
line 24 20023. (a) The California Public Library Construction and
line 25 Renovation Board of 2014 2016 is hereby established.
line 26 (b) The board is comprised of the State Librarian, the Treasurer,
line 27 the Director of Finance, an Assembly Member appointed by the
line 28 Speaker of the Assembly, a Senator appointed by the Senate
line 29 Committee on Rules, and two members appointed by the Governor.
line 30 (c) Legislative members of the board shall meet with, and
line 31 participate in, the work of the board to the extent that their
line 32 participation is not incompatible with their duties as Members of
line 33 the Legislature. For the purpose of this chapter, Members of the
line 34 Legislature who are members of the board constitute a joint
line 35 legislative committee on the subject matter of this chapter.
line 36
line 37 Article 2. Program Provisions
line 38
line 39 20024. The proceeds of bonds issued and sold pursuant to this
line 40 chapter shall be deposited in the California Public Library
97
SB 1455— 3 —
line 1 Construction and Renovation Fund of 2014, 2016, which is hereby
line 2 established.
line 3 20025. All moneys deposited in the fund, except as provided
line 4 in Section 20048, are continuously appropriated to the State
line 5 Librarian, notwithstanding Section 13340 of the Government Code,
line 6 and are available for grants to any city, county, city and county,
line 7 or library district that is authorized at the time of the project
line 8 application to own and maintain a public library facility for the
line 9 purposes set forth in Section 20026.
line 10 20026. The grant funds authorized pursuant to Section 20025
line 11 and the matching funds provided pursuant to Section 20031 shall
line 12 be used by the recipient for any of the following purposes:
line 13 (a) Acquisition or construction of new facilities or additions to
line 14 existing public library facilities.
line 15 (b) Acquisition of land necessary for purposes of subdivision
line 16 (a).
line 17 (c) Remodeling or rehabilitation of existing public library
line 18 facilities or of other facilities for the purpose of their conversion
line 19 to public library facilities. All remodeling and rehabilitation
line 20 projects funded with grants authorized pursuant to this chapter
line 21 shall include necessary upgrading of electrical and
line 22 telecommunications systems to accommodate Internet and similar
line 23 computer technology.
line 24 (d) Procurement or installation, or both, of furnishings and
line 25 equipment required to make a facility fully operable if the
line 26 procurement or installation is part of a construction or remodeling
line 27 project funded pursuant to this chapter.
line 28 (e) Payment of fees charged by architects, engineers, and other
line 29 professionals, whose services are required to plan or execute a
line 30 project authorized pursuant to this chapter.
line 31 (f) Service charges if the services in question are required by
line 32 the applicant jurisdiction to be provided by a public works or
line 33 similar department, or by other departments providing professional
line 34 services if the costs are billed directly to the project pursuant to
line 35 this chapter.
line 36 20027. Grant funds authorized pursuant to Section 20025, or
line 37 matching funds provided pursuant to Section 20031, shall not be
line 38 used by a recipient for any of the following purposes:
line 39 (a) Books and other library materials.
97
— 4 —SB 1455
line 1 (b) Administrative costs of the project, including, but not limited
line 2 to, the costs of any of the following:
line 3 (1) Preparation of the grant application.
line 4 (2) Procurement of matching funds.
line 5 (3) Conduct of an election for obtaining voter approval of the
line 6 project.
line 7 (c) Except as set forth in this chapter, including, but not limited
line 8 to, Section 20046, interest or other carrying charges for financing
line 9 the project, including, but not limited to, costs of loans or
line 10 lease-purchase agreements in excess of the direct costs of any of
line 11 the authorized purposes specified in Section 20026.
line 12 (d) Ongoing operating expenses for the facility, its personnel,
line 13 supplies, or any other library operations.
line 14 20028. All construction contracts for projects funded in part
line 15 through grants awarded pursuant to this chapter shall be awarded
line 16 through competitive bidding pursuant to Part 3 (commencing with
line 17 Section 20100) of Division 2 of the Public Contract Code.
line 18 20029. This chapter shall be administered by the State
line 19 Librarian. The board shall adopt rules, regulations, and policies
line 20 for implementation of this chapter.
line 21 20030. A city, county, city and county, or library district may
line 22 apply to the State Librarian for a grant pursuant to this chapter as
line 23 follows:
line 24 (a) Each application shall be for a project for a purpose
line 25 authorized by Section 20026.
line 26 (b) An application shall not be submitted for a project for which
line 27 construction bids already have been advertised.
line 28 (c) The applicant shall request not less than five hundred
line 29 thousand dollars ($500,000) per project.
line 30 20031. (a) Each grant recipient shall provide matching funds
line 31 from any available source in an amount equal to 35 percent of the
line 32 costs of the project. The remaining 65 percent of the costs of the
line 33 project, up to a maximum of thirty million dollars ($30,000,000)
line 34 per project, shall be provided through allocations from the fund.
line 35 (b) Qualifying matching funds shall be cash expenditures in the
line 36 categories specified in Section 20026 that are made not earlier
line 37 than five years before the submission of the application to the State
line 38 Librarian. Except as otherwise provided in subdivision (c), in-kind
line 39 expenditures do not qualify as matching funds.
97
SB 1455— 5 —
line 1 (c) Land donated or otherwise acquired for use as a site for the
line 2 facility, including, but not limited to, land purchased more than
line 3 five years before the submission of the application to the State
line 4 Librarian, may count towards the required 35 percent local fund
line 5 contribution at its appraised value as of the date of the application.
line 6 This subdivision does not apply to land acquired with funds
line 7 authorized pursuant to Part 68 (commencing with Section 100400),
line 8 Part 68.1 (commencing with Section 100600), Part 68.2
line 9 (commencing with Section 100800), or Part 69 (commencing with
line 10 Section 101000), of Division 14 of Title 3.
line 11 (d) Expenditures for payment of architect fees for plans and
line 12 drawings for library renovation and new construction, including,
line 13 but not limited to, plans and drawings purchased more than five
line 14 years before the submission of the application to the State
line 15 Librarian, may count towards the required 35 percent local funds
line 16 contribution.
line 17 20032. (a) The estimated costs of a project for which an
line 18 application is submitted shall be consistent with normal public
line 19 construction costs in the geographic area of the applicant.
line 20 (b) An applicant wishing to construct a project having costs that
line 21 exceed normal public construction costs in the area may apply for
line 22 a grant in an amount not to exceed 65 percent of the normal costs
line 23 up to a maximum of thirty million dollars ($30,000,000) per project
line 24 if the applicant certifies that it is capable of financing the remainder
line 25 of the project costs from other sources.
line 26 20033. (a) After an application is approved by the board and
line 27 included in the request of the State Librarian to the committee, the
line 28 amount of the funding to be provided to the applicant shall not be
line 29 increased. Actual changes in project costs are the responsibility
line 30 of the applicant. If the amount of funding that is provided is greater
line 31 than the cost of the project, the applicant shall return that amount
line 32 of funding that exceeds the cost of the project to the fund. If an
line 33 applicant is awarded funding by the board, but decides not to
line 34 proceed with the project, the applicant shall return all of the funding
line 35 to the fund.
line 36 (b) If the State Librarian determines that a grant recipient has
line 37 not complied with the terms of its grant award or its grant award
line 38 agreement with the California State Library, the board may
line 39 withdraw a grant award and award the funds previously granted
line 40 to the recipient to other eligible applicants. The State Librarian
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— 6 —SB 1455
line 1 shall notify the affected grant recipient at least 90 days before a
line 2 board meeting where the withdrawal of a grant award will be
line 3 considered.
line 4 20034. (a) In reviewing applications, the board shall consider
line 5 all of the following factors:
line 6 (1) The needs of urban, suburban, and rural areas.
line 7 (2) The age and condition of existing library facilities within
line 8 an area.
line 9 (3) The degree to which existing library facilities are inadequate
line 10 in meeting the needs of the residents in the library service area.
line 11 (4) The degree to which the proposed project responds to the
line 12 needs of the residents in the library service area.
line 13 (5) The degree to which the library integrates appropriate
line 14 electronic technologies into the proposed project.
line 15 (6) The financial commitment of the local agency submitting
line 16 the application to open, operate, and maintain the proposed library
line 17 project upon its completion.
line 18 (b) If, after an application has been submitted, material changes
line 19 occur that would alter the evaluation of an application, the State
line 20 Librarian may accept an additional written statement from the
line 21 applicant for consideration by the board.
line 22 (c) It is the intent of the Legislature that the State Librarian and
line 23 the board develop an application process that is sufficiently
line 24 streamlined to decrease application costs and provide incentives
line 25 for a high number of library applicants to participate.
line 26 20035. (a) A facility, or a part of a facility, acquired,
line 27 constructed, remodeled, or rehabilitated with grants received
line 28 pursuant to this chapter shall be dedicated to public library direct
line 29 service use for a period of at least 20 years following completion
line 30 of the project.
line 31 (b) The financial interest that the state may have in the land or
line 32 facility, or both, resulting from the funding of a project under this
line 33 chapter, as described in subdivision (a), may be transferred by the
line 34 State Librarian through an exchange for a replacement site and
line 35 facility acquired or constructed for the purpose of providing public
line 36 library direct service.
line 37 (c) If the facility, or a part of the facility, acquired, constructed,
line 38 remodeled, or rehabilitated with grants received pursuant to this
line 39 chapter ceases to be used for public library direct service before
line 40 the expiration of the period specified in subdivision (a), the board
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line 1 shall be entitled to recover from the grant recipient, or the successor
line 2 of the recipient, an amount that bears the same ratio to the value
line 3 of the facility, or appropriate part of the value of the facility, at
line 4 the time it ceased to be used for public library direct service, as
line 5 the amount of the original grant bore to the original cost of the
line 6 facility, or to an appropriate part of the facility. For purposes of
line 7 this subdivision, the value of the facility, or appropriate part of the
line 8 facility, shall be determined by the mutual agreement of the board
line 9 and the grant recipient or successor, or through an action brought
line 10 for that purpose in the superior court.
line 11 (d) Notwithstanding subdivision (f) of Section 16724 of the
line 12 Government Code, any money recovered pursuant to subdivision
line 13 (c) shall be deposited in the fund, and shall be available for the
line 14 purpose of awarding grants for other projects.
line 15
line 16 Article 3. Fiscal Provisions
line 17
line 18 20036. Bonds in the total amount not to exceed ____ dollars
line 19 ($____), exclusive of refunding bonds issued in accordance with
line 20 Section 20044, or so much of refunding bonds as is necessary,
line 21 may be issued and sold for deposit in the fund to be used in
line 22 accordance with, and for carrying out the purposes expressed in,
line 23 this chapter, including all acts amendatory of this chapter and
line 24 supplementary to this chapter, and to be used to reimburse the
line 25 General Obligation Bond Expense Revolving Fund pursuant to
line 26 Section 16724.5 of the Government Code. The bonds, when sold,
line 27 shall be and constitute a valid and binding obligation of the State
line 28 of California, and the full faith and credit of the State of California
line 29 is hereby pledged for the punctual payment of both principal and
line 30 interest on bonds as the principal and interest become due and
line 31 payable.
line 32 20037. The bonds authorized by this chapter shall be prepared,
line 33 executed, issued, sold, paid, and redeemed as provided in the State
line 34 General Obligation Bond Law (Chapter 4 (commencing with
line 35 Section 16720) of Part 3 of Division 4 of Title 2 of the Government
line 36 Code), and all of the provisions of that law apply to the bonds and
line 37 to this chapter and are hereby incorporated in this chapter as though
line 38 set forth in full in this chapter, except Section 16727 of the
line 39 Government Code to the extent that it may be inconsistent with
line 40 this chapter.
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line 1 20038. (a) For purposes of this chapter, the California Library
line 2 Construction and Renovation Finance Committee established
line 3 pursuant to Section 19972 is continued in existence and is the
line 4 “committee” as that term is used in the State General Obligation
line 5 Bond Law for purposes of this chapter.
line 6 (b) For purposes of the State General Obligation Bond Law, the
line 7 California Public Library Construction and Renovation Board of
line 8 2014 2016 established pursuant to Section 20023 is designated the
line 9 board.
line 10 20039. The committee shall determine whether or not it is
line 11 necessary or desirable to issue bonds authorized pursuant to this
line 12 chapter in order to carry out the actions specified in this chapter,
line 13 including all acts amendatory of this chapter and supplementary
line 14 to this chapter, and, if so, the amount of bonds to be issued and
line 15 sold. Successive issues of bonds may be authorized and sold to
line 16 carry out those actions progressively, and it is not necessary that
line 17 all of the bonds authorized to be issued be sold at any one time.
line 18 20040. There shall be collected each year and in the same
line 19 manner and at the same time as other state revenue is collected,
line 20 in addition to the ordinary revenues of the state, a sum in an amount
line 21 required to pay the principal of, and interest on, the bonds each
line 22 year. It is the duty of all officers charged by law with any duty in
line 23 regard to the collection of the revenue to do and perform each and
line 24 every act that is necessary to collect that additional sum.
line 25 20041. Notwithstanding Section 13340 of the Government
line 26 Code, there is hereby appropriated from the General Fund in the
line 27 State Treasury, for purposes of this chapter, an amount that will
line 28 equal the total of the following:
line 29 (a) The sum annually necessary to pay the principal of, and
line 30 interest on, bonds issued and sold pursuant to this chapter, as the
line 31 principal and interest become due and payable.
line 32 (b) The sum necessary to carry out Section 20042, appropriated
line 33 without regard to fiscal years.
line 34 20042. For purposes of carrying out this chapter, the Director
line 35 of Finance may authorize the withdrawal from the General Fund
line 36 of an amount or amounts not to exceed the amount of the unsold
line 37 bonds that have been authorized to be sold for purposes of carrying
line 38 out this chapter. Amounts withdrawn shall be deposited in the
line 39 fund. Money made available under this section shall be returned
line 40 to the General Fund, with interest at the rate earned by the money
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line 1 in the Pooled Money Investment Account during the time the
line 2 money was withdrawn from the General Fund pursuant to this
line 3 section, from money received from the sale of bonds for purposes
line 4 of carrying out this chapter.
line 5 20043. The board may request the Pooled Money Investment
line 6 Board to make a loan from the Pooled Money Investment Account
line 7 or any other approved form of interim financing, in accordance
line 8 with Section 16312 of the Government Code, for purposes of
line 9 carrying out this chapter. The amount of the request shall not
line 10 exceed the amount of the unsold bonds that the committee, by
line 11 resolution, has authorized to be sold for purposes of carrying out
line 12 this chapter. The board shall execute any documents required by
line 13 the Pooled Money Investment Board to obtain and repay the loan.
line 14 Any amounts loaned shall be deposited in the fund to be allocated
line 15 by the board in accordance with this chapter.
line 16 20044. Bonds issued and sold pursuant to this chapter may be
line 17 refunded by the issuance of refunding bonds in accordance with
line 18 Article 6 (commencing with Section 16780) of Chapter 4 of Part
line 19 3 of Division 4 of Title 2 of the Government Code. Approval by
line 20 the electors of the state for the issuance of bonds under this chapter
line 21 shall include the approval of the issuance of any bonds issued to
line 22 refund bonds originally issued or previously issued refunding
line 23 bonds.
line 24 20045. Notwithstanding any other provision of this chapter,
line 25 or of the State General Obligation Bond Law, if the Treasurer sells
line 26 bonds pursuant to this chapter that include a bond counsel opinion
line 27 to the effect that the interest on the bonds is excluded from gross
line 28 income for federal tax purposes, subject to designated conditions,
line 29 the Treasurer may maintain separate accounts for the investment
line 30 of bond proceeds and for the investment earnings on those
line 31 proceeds. The Treasurer may use or direct the use of those proceeds
line 32 or earnings to pay a rebate, penalty, or other payment required
line 33 under federal law or take any other action with respect to the
line 34 investment and use of those bond proceeds required or desirable
line 35 under federal law to maintain the tax-exempt status of those bonds
line 36 and to obtain any other advantage under federal law on behalf of
line 37 the funds of this state.
line 38 20046. All money deposited in the fund that is derived from
line 39 premium and accrued interest on bonds sold pursuant to this chapter
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line 1 shall be reserved in the fund and shall be available for transfer to
line 2 the General Fund as a credit to expenditures for bond interest.
line 3 20047. The Legislature hereby finds and declares that,
line 4 inasmuch as the proceeds from the sale of bonds authorized by
line 5 this chapter are not “proceeds of taxes” as that term is used in
line 6 Article XIII B of the California Constitution, the disbursement of
line 7 these proceeds is not subject to the limitations imposed by that
line 8 article.
line 9 20048. Amounts deposited in the fund pursuant to this chapter
line 10 may be appropriated in the annual Budget Act to the State Librarian
line 11 for the actual amount of office, personnel, and other customary
line 12 and usual expenses incurred in the direct administration of grant
line 13 projects pursuant to this chapter, including, but not limited to,
line 14 expenses incurred by the State Librarian in providing technical
line 15 assistance to an applicant for a grant under this chapter.
line 16 SEC. 2. (a) Section 1 of this act shall take effect upon the
line 17 adoption by the voters of the California Reading and Literacy
line 18 Improvement and Public Library Construction and Renovation
line 19 Bond Act of 2014, 2016, as set forth in Section 1 of this act.
line 20 (b) Section 1 of this act shall be submitted to the voters at the
line 21 2014 2016 statewide general election in accordance with provisions
line 22 of the Elections Code and the Government Code governing
line 23 submission of statewide measures to voters.
line 24 SEC. 3. (a) Notwithstanding any other law, all ballots of the
line 25 election shall have printed on the ballot and in a square of the
line 26 ballot, the words: “California Reading and Literacy Improvement
line 27 and Public Library Construction and Renovation Bond Act of
line 28 2014” 2016” and in the same square under those words, the
line 29 following in 8-point type: “This act provides for a bond issue in
line 30 an amount not to exceed a total of ____ dollars ($____) to provide
line 31 funds for the construction and renovation of public library facilities
line 32 in order to expand access to reading and literacy programs in
line 33 California’s public education system and to expand access to public
line 34 library services for all residents of California.” Opposite the square,
line 35 there shall be left spaces in which the voters may place a cross in
line 36 the manner required by law to indicate whether they vote for or
line 37 against the act.
line 38 (b) If the voting in the election is done by means of voting
line 39 machines used pursuant to law in the manner that carries out the
line 40 intent of this section, the use of the voting machines and the
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line 1 expression of the voters’ choice by means of the voting machines
line 2 are in compliance with this section.
line 3 SEC. 4. The State Librarian shall prepare a comprehensive
line 4 assessment on the statewide need for the new construction,
line 5 renovation, and rehabilitation of public libraries, and submit a
line 6 report to the Governor, the Department of Finance, the Legislative
line 7 Analyst, and the appropriate policy and fiscal committees of the
line 8 Legislature on or before August 15, 2015.
O
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