Local education facility bonds: anticipation notes.

Existing law authorizes the governing board of a 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 for the purpose of raising money for various facilities purposes, for refunding bonds, or for the purchase of schoolbuses. Existing law limits the total amount of bonds that a school district or community college district may issue to 1.25% of the taxable property of the school district or community college district. Existing law also authorizes the governing board of a school district or community college district to issue bond anticipation notes. Existing law requires a bond anticipation note to be payable not more than 5 years from the date of the original issuance of the note. Existing law requires the interest on the notes to be payable from the proceeds of the sale of bonds or from the tax levied to pay principal of and interest on the bonds. This bill, instead of requiring the interest on the notes to be paid from the tax levied to pay the principal of and interest on the bonds, would authorize the interest on the notes to be paid from a property tax levied for that purpose if authorized by a resolution of the governing board of the school district or community college district and if the principal amount of the notes does not exceed the remaining principal amount of authorized but unissued bonds. The bill would provide that this tax is authorized by law. The bill also would allow the premium received on the sale of the bonds to be used to pay the interest on the notes. The bill also would provide that the notes may be issued only if the tax rate levied to pay interest on the notes would not cause the school district or community college district to exceed the limitations set forth in specified existing law.