AB 1979 Summary

• Expands the definition of "project" under the California School Finance Authority Act to include reimbursement for costs of facility acquisition, construction, expansion, and improvement when reimbursement from bond proceeds is required to comply with federal tax law.

• Increases the total amount of revenue bonds that may be issued and outstanding under the act from $400,000,000 (plus a separate $4,000,000,000 limit) to a combined limit of $4,400,000,000.

• Deletes a provision allowing public credit providers to require participating parties to agree that the Controller can allocate school apportionments to the credit provider if payment obligations arise.

• Revises Section 17199.4 to authorize participating parties to fund bond payments, credit enhancement agreements, reserve funds, and related costs through apportionments, with specific procedures for notice to the Controller and restrictions on participating parties with qualified or negative financial certifications.

• Repeals Section 17193.5 of the Education Code and includes a coordination provision with Senate Bill 971 regarding amendments to Section 17199.4.