Governor Vetoes AB 375

On October 10, 2013, Governor Brown vetoed Assembly Bill 375.  AB 375 had proposed to "streamline" the certificated dismissal process, but would have imposed significant burdens on districts that potentially would have made it more difficult to dismiss teachers.  Governor Brown specifically acknowledged problems with the ability to amend charges and the limit to five depositions per side.

In his veto message, Governor Brown urged the Legislature and stakeholders to continue working towards a solution that would reduce procedural complexities of the teacher dismissal process.

Opponents of the bill included CSBA and ACSA.

~Meghan Covert Russell

Governor Signs Assembly Bill 182 Adding Requirements for Issuance of Capital Appreciation Bonds and Current Interest Bonds

On October 2, 2013 the Governor signed into law Assembly Bill 182 (“AB 182”).  AB 182 requires that the total debt payments for each bond series be limited to no more than four times the principal amount.  Further, capital appreciation bonds (“CABs”) are limited to a maximum term of 25 years.  CABs that mature more than 10 years after their date of issuance must be subject to refinancing on the 10th anniversary of the date the bond was issued or earlier.  AB 182 also requires that if the proposed bond sale includes CABs, school board members must be presented with specific information about the total overall cost of the bonds, a comparison to the overall cost of current interest bonds, and the reasoning that CABs are recommended.  The school board’s resolution authorizing the sale of the CABs must include the financing terms, maturity dates, repayment ratio and estimated change in the assessed value of taxable property within the district.  School boards must also make certain findings with respect to current interest bonds with maturities greater than 30 years.

The full text of AB 182 can be found here.

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