2009 California Education Code - Section 12000-12002 :: Article 1. Allocation Of Federal Funds And Federal Tax Credit Bond Volume Cap

12000.  Whenever by any act of Congress funds are provided as
federal aid to education to the several states and the disposition of
the funds is not otherwise provided for by or under the act of
Congress or by or under any law of this state, the apportionment and
distribution thereof to school districts shall, insofar as consistent
with the requirements prescribed by the federal law and implementing
rules and regulations, be governed by the standards set forth in
this article.
   When any such federal law designates a state education agency or
other agency or officer primarily responsible for state supervision
of public schools, such designation shall be deemed to refer to the
State Board of Education. The State Board of Education shall make
timely application for any federal funds made available, and shall,
pursuant to the federal law and the provisions of this article,
direct the allocation and apportionment of the federal funds to local
education agencies.

12001.  The State Board of Education shall adopt rules and
regulations for the allocation of federal funds to local school
districts and other agencies entitled to receive federal funds for
the support of schools. In determining the rules and regulations by
which such allocations are to be made, the State Board of Education
shall consider all factors of local effort and all educational
programs maintained by such agencies. Such rules and regulations
shall be based upon need and the agencies' abilities and efforts
shall be carefully scrutinized.

12001.5.  (a) The Legislature hereby finds and declares that the
federal tax credit bond volume cap for qualified school construction
bonds designated for the state by the federal American Recovery and
Reinvestment Act of 2009 (Public Law 111-5), together with Internal
Revenue Service Notice 2009-35 issued pursuant thereto, does not
constitute federal moneys, federal funds, or funds of any kind for
any purpose under this code.
   (b) There is hereby assigned to the State Department of Education,
seven hundred million dollars ($700,000,000) of the state's 2009
federal tax credit bond volume cap for qualified school construction
bonds, to be further assigned and distributed to or for the benefit
of school districts and county offices of education in the state, as
the State Department of Education shall determine.
   (c) (1) There is hereby assigned to the California School Finance
Authority, established pursuant to Section 17172, seventy-three
million five hundred twenty-five thousand dollars ($73,525,000) of
the state's 2009 federal tax credit bond volume cap for qualified
school construction bonds, to be issued for the benefit of charter
schools, or to be further assigned and distributed to one or more
issuers in the state for the benefit of charter schools, as the
authority shall determine.
   (2) The parameters specified in "Borrowing Authority Parameters
and Application," dated February 10, 2010, as developed by the
California School Finance Authority and referenced in Resolution
10-04 of the authority, shall apply to all applications submitted to
the California School Finance Authority for the state's 2009 federal
tax credit bond volume cap for qualified school construction bonds.
If an applicant uses any 2009 federal tax credit bond volume cap in
conjunction with a bond that will serve as a local match for purposes
of the Charter School Facilities Program established by Section
17078.52, the applicant, in addition to the requirements of this
section, shall comply with all of the requirements of the Charter
School Facilities Program.
   (d) (1) Any of the state's 2009 federal tax credit bond volume cap
for qualified school construction bonds assigned to the State
Department of Education pursuant to subdivision (b) that has not
resulted in the issuance of qualified school construction bonds by
December 31, 2009, shall be added to the state's volume cap for 2010,
in accordance with subsection (e) of Section 54F of the Internal
Revenue Code, and assigned as set forth in this section. Those
districts and county offices of education that received an assignment
from the State Department of Education by December 31, 2009, and
notification from the State Department of Education that they were
granted an extension to issue bonds through March 31, 2010, shall
have an additional 120 days from the effective date of this
legislation to issue bonds.
   (2) Any of the state's 2009 federal tax credit bond volume cap for
qualified school construction bonds originally assigned to the State
Department of Education in 2009 pursuant to subdivision (b) that
does not result in the issuance of qualified school construction
bonds within 120 days from the effective date of this legislation
shall revert to the state, and shall be reallocated in accordance
with the process established pursuant to state law for allocating the
2010 federal tax credit bond volume cap for qualified school
construction bonds.
   (3) The department shall reassign to a school district any 2009
federal tax credit bond volume cap for qualified school construction
bonds that was directly allocated to the district by the United
States Internal Revenue Service pursuant to Internal Revenue Service
Notice 2009-35, did not result in the issuance of qualified school
construction bonds by December 31, 2009, and was reallocated by the
district to the state no later than 30 days after the effective date
of this section. The department shall grant the school district 120
days from the effective date of this section to issue the qualified
school construction bonds. Any of the state's federal tax credit bond
volume cap for qualified school construction bonds assigned to a
school district described in this paragraph that does not result in
the issuance of qualified school construction bonds within 120 days
from the effective date of this section shall revert to the state and
shall be reallocated by the department in accordance with the
process established pursuant to state law for allocating the 2010
federal tax credit bond volume cap for qualified school construction
bonds.
   (e) (1) Any of the state's 2009 federal tax credit bond volume cap
for qualified school construction bonds assigned to the California
School Finance Authority pursuant to subdivision (c) that has not
resulted in the issuance of qualified school construction bonds by
December 31, 2009, shall be added to the state's volume cap for 2010,
in accordance with subsection (e) of Section 54F of the Internal
Revenue Code, and allocated as set forth in this section. Any charter
school that received an allocation from the California School
Finance Authority prior to December 31, 2009, shall retain its
allocation pursuant to the resolution of the California School
Finance Authority.
   (2) Any of the state's 2009 federal tax credit bond volume cap for
qualified school construction bonds originally allocated to the
California School Finance Authority in 2009 pursuant to subdivision
(c) that does not result in the issuance of qualified school
construction bonds by December 31, 2010, shall be retained by the
California School Finance Authority, and reallocated in accordance
with the qualified school construction bond parameters established by
the California School Finance Authority.
   (f) Notwithstanding any other provision of law, in order to
further the purposes of the federal American Recovery and
Reinvestment Act of 2009, and allow school districts to issue federal
tax credit bonds as expeditiously as possible, the assignment and
distribution of the federal tax credit bond volume cap by the State
Department of Education and the California School Finance Authority
under this section are exempt from the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code).
   (g) It is the intent of the Legislature that the parameters and
conditions adopted by the department and the California School
Finance Authority be comparable where practical and applicable in
order to ensure consistency and equity in the state level assignment
and distribution of the federal tax credit bond volume cap,
including, but not limited to, maximum tax credit amounts per project
or school district.
   (h) Notwithstanding any other provision of this section, issuers
within the state may issue qualified school construction bonds in any
manner permitted by federal law, including, but not limited to, as
tax credit bonds or federal subsidy bonds.

12002.  There is hereby created in the State Treasury the Auxiliary
State School Fund. Any funds received under act of Congress as
federal aid to education, and not required by such act or any law of
this state to be otherwise deposited, may be deposited in the
Auxiliary State School Fund.