AB 247 – Proposed School Facilities Bond for Statewide Ballot

Late night on June 29, final amendments were made to Assembly Bill 247 to place an education facilities bond on the November 5, 2024 General Election Ballot. AB 247 is jointly authored by 3 Assembly Members and 2 Senators, and co-authored by 19 Assembly Members and 15 State Senators.

AB 247 would amend Education Code Sections 17070.15, 17070.43, 17070.51, 17071.10, 17071.75, 17072.30, 17072.35, 17073.15, 17074.16, 17074.25, 17075.15, 17077.35, 17078.52, and 17078.58 of, to add Sections 17070.42, 17070.54, 17070.59, 17070.87, 17073.16, 17074.265, 17075.20, and 17078.74 to, to add Article 10.7 (commencing with Section 17077.60), Article 11.5 (commencing with Section 17078.35), and Article 11.7 (commencing with Section 17078.45) to Chapter 12.5 of Part 10 of Division 1 of Title 1 of, to add Part 72 (commencing with Section 101400) to Division 14 of Title 3 of, and to repeal and add Section 17075.10 of, the Education Code,

AB 247 would provide a general obligation bond through an urgency measure, which means AB 247 requires a 2/3 vote of both houses of the California Legislature for passage, as well as the Governor’s signature. It is anticipated that AB 247 will be voted on Wednesday, July 3 before the Legislature begins its summer recess. July 3 is also the last day, per the Secretary of State, for the Legislature to place a measure on the November ballot.

AB 247 would create the Kindergarten Through Grade 12 Schools and Local Community College Public Education Facilities Modernization, Repair, and Safety Bond Act of 2024. If approved by the statewide voters, the act would authorize $10 billion under the California General Obligation Bond Law in order to construct and modernize education facilities, including $8,500,000,000 for elementary and secondary educational facilities and $1,500,000,000 for community college facilities. Earlier versions of the bill had proposed $14 billion in bond spending.

As a reminder, as explained by the Office of Legislative Counsel, the state 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 (1) authorizes the debt for a single object or work specified in the act, (2) has been passed by a ²/₃ vote of all the Members elected to each house of the Legislature, (3) has been submitted to the people at a statewide general or primary election, and (4) has received a majority of all the votes cast for and against it at that election.

The bill contains definitions for 17 terms and makes 7 legislative findings and declarations. 

The proceeds from the sale of bonds issued and sold for the purposes of this chapter are to be allocated in accordance with the following schedule:

(1) (A) The amount of three billion three hundred million dollars ($3,300,000,000) for new construction of school facilities of applicant school districts pursuant to Chapter 12.5 (commencing with Section 17070.10) of Part 10 of Division 1 of Title 1. Of the amount allocated under this paragraph, up to 10 percent shall be available to small school districts pursuant to Article 11.5 (commencing with Section 17078.35) of Chapter 12.5 of Part 10 of Division 1 of Title 1.

(2) (A) The amount of four billion dollars ($4,000,000,000) for the modernization of school facilities pursuant to Chapter 12.5 (commencing with Section 17070.10) of Part 10 of Division 1 of Title 1. Of the amount allocated under this paragraph, up to 10 percent shall be available to small school districts pursuant to Article 11.5 (commencing with Section 17078.35) of Chapter 12.5 of Part 10 of Division 1 of Title 1.

(3) The amount of six hundred million dollars ($600,000,000) for providing school facilities to charter schools pursuant to Article 12 (commencing with Section 17078.52) of Chapter 12.5 of Part 10 of Division 1 of Title 1.

(4) The amount of six hundred million dollars ($600,000,000) for facilities for career technical education programs pursuant to Article 13 (commencing with Section 17078.70) of Chapter 12.5 of Part 10 of Division 1 of Title 1.

In addition, from the proceeds of bonds issued and sold pursuant to Article 3 (commencing with Section 101442), the sum of one billion five hundred million dollars ($1,500,000,000) shall be deposited in the 2024 California Community College Capital Outlay Bond Fund for purposes of this chapter.

AB 247 contains other provisions, including a requirement that school districts submit to DGS a 5-year school facilities master plan. It also authorizes the allocation of state funds under the act for the replacement of school buildings that are at least 75 years old, for specified assistance to school districts with a school facility located on a military installation, and small school districts, and for the testing and remediation of lead levels in water fountains and faucets used for drinking or preparing food on schoolsites. 

The bill would authorize new construction and modernization grants to be used for seismic mitigation purposes, certain health and safety projects, and, among other things, to establish schoolsite-based infrastructure to provide broadband internet access. The bill would also authorize modernization grants to be used for the control, management, or abatement of lead.

AB 247 would increase the maximum level of total bonding capacity that a school district could have and still be eligible for financial hardship assistance under the act from $5,000,000 to $15,000,000.

Section 29 of the bill provides a severability clause. Section 30 states that Section 1 to 28 of the act will take effect upon the adoption by the statewide electorate of the Kindergarten Through Grade 12 Schools and Local Community College Public Education Facilities Modernization, Repair, and Safety Bond Act of 2024, as set forth in Section 28 of this act.

Section 31 of the bill provides the urgency clause, which is needed “In order to provide for the submission of the Kindergarten Through Grade 12 Schools and Local Community College Public Education Facilities Modernization, Repair, and Safety Bond Act of 2024 at the November 5, 2024, statewide general election to provide funding for public education facility projects as soon as possible, it is necessary for this act to take effect immediately.”