AB48 - Education finance: postsecondary education facilities: College Health and Safety Bond Act of 2026.

Amended IN Assembly May 29, 2025 Amended IN Assembly April 10, 2025 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 48 Introduced by Assembly Member Alvarez (Coauthors: Assembly Members Fong Fong, Haney, and Muratsuchi) December 02, 2024 An act to amend Sections 15102, 15106, 15268, and 15270 of, to add Article 8 (commencing with Section 89800) to Chapter 6 of Part 55 of Division 8 of Title 3 of, to add Article 7 (commencing with Section 92170) to Chapter 2 of Part 57 of Division 9 of Title 3 of, and to add Part 71 (commencing with Section 101200) to Division 14 of Title 3 of, the Education Code, relating to education finance, 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 these funds. LEGISLATIVE COUNSEL'S DIGEST AB 48, as amended, Alvarez. Education finance: postsecondary education facilities: College Health and Safety Bond Act of 2026. (1) Existing law authorizes the governing board of any school district or community college district to order an election and submit to the electors of the district the question of whether the bonds of the district shall be issued and sold to raise money for specified purposes. Existing law generally requires, to pass a school bond measure, that either at least 2 3 of the votes cast on the proposition of issuing bonds be in favor of issuing the bonds to pass the measure, or, if certain conditions are met, at least 55% of the votes cast on the proposition of issuing bonds be in favor of issuing the bonds. Existing law prohibits the total amount of bonds issued by a school district or community college district from exceeding 1.25% of the taxable property of the district, as provided. This bill would raise that limit to 2% for a community college district. (2) Existing law also authorizes a unified school district or community college district to issue bonds receiving at least 55% of the votes cast on the proposition of issuing the bonds that, in aggregation with bonds issued with a 2 3 favorable vote, do not exceed 2.5% of the taxable property of the district, as provided. This bill would raise that limit to 4% for a community college district. (3) (1) 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 2/3 2 / 3 vote of all the Members elected to each house of the Legislature, (C) has been submitted to the people at a statewide general or primary election, and (D) has received a majority of all the votes cast for and against it at that election. This bill would set forth the College Health and Safety Bond Act of 2026 as a state general obligation bond act that would provide $____ to construct and modernize education facilities, as specified. This bond act would become operative only if approved by the voters at an undefined statewide election. The bill would also provide for the submission of the bond act to the voters at that election. (4) (2) Existing law establishes the California State University, under the administration of the Trustees of the California State University, and the University of California, under the administration of the Regents of the University of California, as 2 of the segments of public postsecondary education in the state. This bill would require the Trustees and the Regents to comply with certain conditions, as provided, before receiving funds from the 2026 University Capital Outlay Bond Fund established pursuant to the College Health and Safety Bond Act of 2026. (5) (3) This bill, except for the provision making the provisions of the bill severable, would become operative upon the adoption of the College Health and Safety Bond Act of 2026 by the voters at an undefined statewide election. Digest Key Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 15102 of the Education Code is amended to read: 15102. (a) The total amount of bonds issued pursuant to this chapter and Chapter 1.5 (commencing with Section 15264) shall not exceed 1.25 percent of the taxable property of the school district, or the school facilities improvement district, if applicable, as shown by the last equalized assessment of the county or counties in which the school district or school facilities improvement district is located. (b) The total amount of bonds issued pursuant to this chapter and Chapter 1.5 (commencing with Section 15264) shall not exceed 2 percent of the taxable property of the community college district, as shown by the last equalized assessment of the county or counties in which the community college district is located. (c) For purposes of this section, the taxable property of a district for any fiscal year shall be calculated to include, but not be limited to, the assessed value of all unitary and operating nonunitary property of the district, which shall be derived by dividing the gross assessed value of the unitary and operating nonunitary property within the district for the 1987–88 fiscal year by the gross assessed value of all unitary and operating nonunitary property within the county in which the district is located for the 1987–88 fiscal year, and multiplying that result by the gross assessed value of all unitary and operating nonunitary property of the county on the last equalized assessment roll. SEC. 2. Section 15106 of the Education Code is amended to read: 15106. (a) (1) A unified school district may issue bonds that, in aggregation with bonds issued pursuant to Section 15270, shall not exceed 2.5 percent of the taxable property of the unified school district, or the school facilities improvement district, if applicable, as shown by the last equalized assessment of the county or counties in which the district is located. (2) A community college district may issue bonds that, in aggregation with bonds issued pursuant to Section 15270, shall not exceed 4 percent of the taxable property of the community college district, as shown by the last equalized assessment of the county or counties in which the community college district is located. (3) In computing the outstanding bonded indebtedness of a unified school district or community college district for purposes of this section, any outstanding bonds shall be deemed to have been issued for elementary school purposes, high school purposes, and community college purposes, respectively, in the respective amounts that the proceeds of the sale of those outstanding bonds, excluding any premium and accrued interest received on that sale, were or have been allocated by the governing board of the unified school district or community college district to each of those purposes respectively. (b) For purposes of the State School Building Aid Law of 1952 (Chapter 6 (commencing with Section 16000)) with respect to applications for apportionments and apportionments filed or made before September 15, 1961, and to the repayment thereof, Chapter 4 (commencing with Section 15700), inclusive, only, a unified school district shall be considered to have a bonding capacity in the amount permitted by law for an elementary school district and a bonding capacity in the amount permitted by law for a high school district. (c) For purposes of this section, the taxable property of a district for a fiscal year shall be calculated to include, but not be limited to, the assessed value of all unitary and operating nonunitary property of the district, which shall be derived by dividing the gross assessed value of the unitary and operating nonunitary property within the district for the 1987–88 fiscal year by the gross assessed value of all unitary and operating nonunitary property within the county in which the district is located for the 1987–88 fiscal year, and multiplying the result by the gross assessed value of all unitary and operating nonunitary property of the county on the last equalized assessment roll. If two or more school districts or community college districts are unified subsequent to the 1987–88 fiscal year, the assessed value of all unitary and operating nonunitary property of the unified district or community college district shall be deemed to be the total of the assessed value of the taxable property of each of the unifying districts as that assessed value would be determined under Section 15102. SEC. 3. Section 15268 of the Education Code is amended to read: 15268. (a) The total amount of bonds issued, including bonds issued pursuant to Chapter 1 (commencing with Section 15100), shall not exceed 1.25 percent of the taxable property of the school district as shown by the last equalized assessment of the county or counties in which the school district is located. (b) The total amount of bonds issued, including bonds issued pursuant to Chapter 1 (commencing with Section 15100), shall not exceed 2 percent of the taxable property of the community college district as shown by the last equalized assessment of the county or counties in which the community college district is located. (c) The bonds may only be issued if the tax rate levied to meet the requirements of Section 18 of Article XVI of the California Constitution in the case of indebtedness incurred by a school district pursuant to this chapter, at a single election, would not exceed thirty dollars ($30) per year per one hundred thousand dollars ($100,000) of taxable property when assessed valuation is projected by the school district to increase in accordance with Article XIII A of the California Constitution. (d) For purposes of this section, the taxable property of a school district or community college district for any fiscal year shall be calculated to include, but not be limited to, the assessed value of all unitary and operating nonunitary property of the district, which shall be derived by dividing the gross assessed value of the unitary and operating nonunitary property within the district for the 1987–88 fiscal year by the gross assessed value of all unitary and operating nonunitary property within the county in which the district is located for the 1987–88 fiscal year, and multiplying that result by the gross assessed value of all unitary and operating nonunitary property of the county on the last equalized assessment roll. SEC. 4. Section 15270 of the Education Code is amended to read: 15270. (a) Notwithstanding Sections 15102 and 15268, a unified school district may issue bonds pursuant to this article that, in aggregation with bonds issued pursuant to Chapter 1 (commencing with Section 15100), shall not exceed 2.5 percent of the taxable property of the district as shown by the last equalized assessment of the county or counties in which the district is located. The bonds may only be issued if the tax rate levied to meet the requirements of Section 18 of Article XVI of the California Constitution in the case of indebtedness incurred pursuant to this chapter at a single election, by a unified school district, would not exceed sixty dollars ($60) per year per one hundred thousand dollars ($100,000) of taxable property when assessed valuation is projected by the district to increase in accordance with Article XIII A of the California Constitution. (b) Notwithstanding Sections 15102 and 15268, a community college district may issue bonds pursuant to this article that, in aggregation with bonds issued pursuant to Chapter 1 (commencing with Section 15100), shall not exceed 4 percent of the taxable property of the district as shown by the last equalized assessment of the county or counties in which the district is located. The bonds may only be issued if the tax rate levied to meet the requirements of Section 18 of Article XVI of the California Constitution in the case of indebtedness incurred pursuant to this chapter at a single election, by a community college district, would not exceed twenty-five dollars ($25) per year per one hundred thousand dollars ($100,000) of taxable property when assessed valuation is projected by the district to increase in accordance with Article XIII A of the California Constitution. (c) In computing the outstanding bonded indebtedness of any unified school district or community college district for purposes of this section, any outstanding bonds shall be deemed to have been issued for elementary school purposes, high school purposes, and community college purposes, respectively, in the respective amounts that the proceeds of the sale of those outstanding bonds, excluding any premium and accrued interest received on that sale, were or have been allocated by the governing board of the unified school district or community college district to each of those purposes respectively. (d) For purposes of this section, the taxable property of a district for any fiscal year shall be calculated to include, but not be limited to, the assessed value of all unitary and operating nonunitary property of the district, which shall be derived by dividing the gross assessed value of the unitary and operating nonunitary property within the district for the 1987–88 fiscal year by the gross assessed value of all unitary and operating nonunitary property within the county in which the district is located for the 1987–88 fiscal year, and multiplying the result by the gross assessed value of all unitary and operating nonunitary property of the county on the last equalized assessment roll. If two or more school districts are unified subsequent to the 1987–88 fiscal year, the assessed value of all unitary and operating nonunitary property of the unified district shall be deemed to be the total of the assessed value of the taxable property of each of the unifying districts as that assessed value would be determined under Section 15268. (e) For purposes of this article, “general obligation bonds,” as that term is used in Section 18 of Article XVI of the California Constitution, means bonds of a school district or community college district, the repayment of which is provided for by this chapter and Chapter 1 (commencing with Section 15100), and includes bonds of a school facilities improvement district, the repayment of which is provided for by this chapter and Chapter 2 (commencing with Section 15300). SEC. 5. SECTION 1. Article 8 (commencing with Section 89800) is added to Chapter 6 of Part 55 of Division 8 of Title 3 of the Education Code, to read: Article 8. 2026 University Capital Outlay Bond Fund Conditions 89800. (a) As a condition of receiving funds from the 2026 University Capital Outlay Bond Fund established in Section 101230, the Trustees of the California State University shall adopt a five-year affordable student housing plan for each campus covering the 202 [Text truncated for display. Full text available on Congress.gov.]