2010 California Code
Government Code
Chapter 3.8. Instructional Facilities For Higher Education Article 1. General Provisions Article 2. Instructional Facilities Article 3. Construction Financing

15820.60.  (a) The board may issue certificates pursuant to Chapter
4 (commencing with Section 15821) or revenue bonds, negotiable notes,
or negotiable bond anticipation notes pursuant to Chapter 5
(commencing with Section 15830) to finance the cost of construction
or renovation and the equipping of the public buildings or facilities
authorized by this chapter.
   (b) The revenues, rentals, or receipts from the public buildings
or facilities and equipment authorized by this chapter shall be
pledged to the payment of the principal of, and the interest on, the
certificates, revenue bonds, notes, or anticipation notes issued to
finance the construction or renovation and the equipping of those
public buildings or facilities.
   (c) No certificates, revenue bonds, notes, or anticipation notes
shall be issued, and no construction or renovation and the equipping
for any public building or facility authorized by this chapter shall
be commenced or purchased, unless the Legislature, by statute,
authorizes the total amount of certificates, revenue bonds, notes, or
anticipation notes that may be used to finance the construction of
that public building or facility.
   (d) In addition to revenues calculated for apportionment to
community college districts pursuant to Section 84700 of the
Education Code, when a community college capital outlay project has
been approved pursuant to Section 81830 of the Education Code, the
Chancellor of the California Community Colleges shall apportion state
aid equal to the amount necessary for each district to meet its
lease or lease-purchase obligation determined pursuant to subdivision
(b) of Section 15820.55, less an amount determined to be the
district's proportional share of the lease or lease-purchase
obligation based on the calculation of the district's share of
capital outlay costs as determined by the chancellor pursuant to
Section 81838 of the Education Code. It is the intent that these
funds be appropriated annually as a part of the state's general
apportionment funds for the community colleges.
   (e) When a community college district enters into a lease or
lease-purchase agreement with the State Public Works Board pursuant
to subdivision (b) of Section 15820.55, the district shall, as a part
of that lease or lease-purchase agreement, authorize the chancellor
and Controller to withhold from its annual apportionment the amount
of funds necessary to satisfy its annual lease obligation to the
Public Works Board. The agreement shall include authorization to
withhold the additional apportionment amount and the amount
determined to be the district's proportional share of the lease or
lease-purchase obligation as determined pursuant to subdivision (d).
The authorization shall have precedence over other expenditure
obligations of the district. The chancellor shall certify the
amounts, by district, to the Controller. The Controller shall
withhold the amount so reported for each district and shall, acting
on behalf of each district, transfer the appropriate amount from
Section B of the State School Fund to the Public Works Board for the
purpose of payment of the debt service obligation for the bonds sold
to finance the projects.



15820.61.  The board may contract for a project authorized by the
Legislature before issuing certificates, revenue bonds, notes, or
bond anticipation notes pursuant to Section 15820.60 if any segment
of higher education provides from any lawful source temporary
construction financing to meet contract payments for the project or
if the board obtains a loan from the General Fund. Any loan from the
General Fund shall be specifically authorized by the Legislature and
shall not exceed the amount authorized by the Legislature.
   It is the intent of this section to reduce the cost of the
projects and time between the authorization of capital outlay
projects by the Legislature and the availability of those projects
for student and faculty use.