Bonds: school districts and community college districts.

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 whether the bonds of the district should be issued and sold to raise money for specified purposes. Existing law requires the ratio of total debt service to principal for each bond series to not exceed 4 to 1. Existing law requires each bond that allows for the compounding of interest, including, but not limited to, a capital appreciation bond, maturing more than 10 years after its date of issuance to be subject to redemption before its fixed maturity date, as specified, beginning no later than the 10th anniversary of the date the bond was issued. Existing law requires, if the sale includes bonds that allow for the compounding of interest, including, but not limited to, capital appreciation bonds, the agenda item to identify that bonds that allow for the compounding of interest are proposed and require the governing board of the school district or community college district to be presented with specified information concerning the bonds. Existing law requires a school district or community college district that intends to issue bonds that allow for the compounding of interest, including, but not limited to, capital appreciation bonds, to comply with certain requirements. This bill would exempt a school district or community college district whose electors approved the issuance of a note in an election held on or before January 1, 2014, and began issuing a note pursuant to that authority on or before January 1, 2014, from, among other requirements, the requirements specified in the previous paragraph.