ARTICLE 3. Revenue Bonds [92470. - 92496.]

Cal. Education Code - EDC 3.

in effect

Cal. Education Code - EDC § 92470. Section 92470.

The regents shall issue revenue bonds in the name of the regents and as obligations of the regents, but neither the principal of, nor interest on, any bond issued or sold pursuant to this chapter shall be or become a lien, charge, or liability against this state or against the regents or against the property or funds of either, except to the extent of the pledge of revenues or part of revenues of the project, as may be provided by the indenture pursuant to which revenue bonds are issued, and every such bond issued by the regents shall contain a recital on its face, substantially as follows: “This bond is not a lien, charge, or liability, as to either principal or interest, against the State of California or against the Regents of the University of California or against the property or funds of either, except to the extent of the pledge of revenues or part of revenues, as provided by the indenture pursuant to which it is issued.”

Cal. Education Code - EDC § 92471. Section 92471.

The regents shall determine the time, form, and manner of the issuance of revenue bonds.

Cal. Education Code - EDC § 92472. Section 92472.

The validity of the authorization and issuance of any revenue bonds by the regents is not dependent on nor affected in any way by any of the following: (a) Proceedings taken by the regents for the acquisition, construction, or completion of any project or any part of any project. (b) Any contracts made by the regents in connection with the acquisition, construction, or completion of any project. (c) The failure to complete any project for which bonds are authorized to be issued.

Cal. Education Code - EDC § 92473. Section 92473.

Before issuing any bond or bonds pursuant to this chapter, the regents shall by resolution declare the purpose for which the proceeds of the bonds proposed to be issued shall be expended and shall specify the maximum amount of bonds to be issued or sold for such purpose. Bonds shall not be issued or sold for such purpose in an amount exceeding the maximum specified in such resolution except with the consent of bondholders, pursuant to amendment or modification of an indenture, as provided in Sections 92528 and 92529. Nothing in this section shall be construed to prevent the regents from amending any such resolution prior to the issuance of bonds authorized thereby to increase or decrease the maximum amount of bonds to be issued or sold. The issuance of bonds for one or more projects may be included in a single resolution of authorization.

Cal. Education Code - EDC § 92474. Section 92474.

The regents may provide for one or several issues of bonds and may issue bonds in series or may divide any issue into one or more divisions and fix different maturities or dates of such bonds, different rates of interest, or prescribe different terms and conditions for the bonds of the several series or divisions. It is not necessary that all bonds of the same authorized issue be of the same kind or character, have the same security, or be of the same interest rate, but the terms of such bonds shall in each case be provided for by the regents, at or prior to the issue of the bonds.

Cal. Education Code - EDC § 92475. Section 92475.

Bonds may be issued as coupon bonds or as registered bonds. The regents may provide for the interchange of coupon bonds for registered bonds and registered bonds for coupon bonds, and may provide that the bonds shall be registered as to principal only, or as to both principal and interest, or otherwise as the regents may determine.

Cal. Education Code - EDC § 92476. Section 92476.

Bonds shall bear interest at a rate of not to exceed 12 percent per annum, payable annually or semiannually, or in part annually and in part semiannually.

Cal. Education Code - EDC § 92477. Section 92477.

Bonds may be callable upon such terms, conditions, and upon such notice as the regents may determine, and upon the payment of such premium as may be fixed by the regents in the proceedings for the issuance of the bonds. No bond is subject to call or redemption prior to its fixed maturity date unless the right to exercise such call is expressly stated on the face of the bond.

Cal. Education Code - EDC § 92478. Section 92478.

The regents may provide for the payment of the principal and interest of bonds at any place within or without the state, and in specified coin or currency of the United States.

Cal. Education Code - EDC § 92479. Section 92479.

The regents may provide for the execution and authentication of bonds by the manual, lithographed, or printed facsimile signature of officers of the regents and by additional authentication by a trustee or fiscal agent appointed by the regents. If any of the officers whose signatures or countersignatures appear upon the bonds or coupons cease to be officers before the delivery of the bonds or coupons, their signatures or countersignatures are nevertheless valid and of the same force and effect as if the officers had remained in office until the delivery of the bonds and coupons.

Cal. Education Code - EDC § 92480. Section 92480.

Bonds shall bear dates prescribed by the regents. Bonds may be serial bonds or sinking fund bonds with such maturities as the regents may determine. No bond by its terms shall mature in more than 50 years from its own date and, in the event any authorized issue is divided into two or more series or divisions, the maximum maturity date authorized in this section shall be calculated from the date on the face of each bond separately, irrespective of the fact that different dates may be prescribed for the bonds of each separate series or division of any authorized issue.

Cal. Education Code - EDC § 92481. Section 92481.

Bonds may be sold at either public or private sale. The regents may fix terms and conditions for the sale or other disposition of any authorized issue of bonds. The regents may sell bonds at less than their par or face value, but no bond may be sold at a price below the par or face value of the bond which would result in a sale price yielding to the purchaser an average of more than 12 percent per annum, payable semiannually, according to standard tables of bond values.

Cal. Education Code - EDC § 92482. Section 92482.

The regents may provide for the security of bonds. The regents may use and expend all or any part of any funds or proceeds of any property owned by it, whether received by gift, appropriation or otherwise, if not restricted as to the use of such funds or proceeds of property by the terms of any gift or trust or provision of law, for the redemption of bonds issued pursuant to this chapter and the payment of interest due on the bonds.

Cal. Education Code - EDC § 92483. Section 92483.

All costs and expenses incident to the issuance and sale of bonds may be paid out of the proceeds of the sale of the bonds. Interest on bonds may be paid out of the proceeds of the sale of the bonds during the actual construction of any project for the acquisition, construction, or completion of which the bonds have been issued, and for a period of not to exceed two years after the completion of the actual construction of the project as provided for in the indenture.

Cal. Education Code - EDC § 92484. Section 92484.

The regents may provide that the bonds and the interest on the bonds shall be secured by all or by part of revenues of a project upon the basis of which revenue bonds are issued or authorized to be issued, and shall constitute such lien upon the revenues of such project as may be provided for in the indenture.

Cal. Education Code - EDC § 92485. Section 92485.

Pending the actual issuance or delivery of revenue bonds, the regents may issue temporary or interim bonds, certificates, or receipts of any denominations whatsoever, and with or without coupons, to be exchanged for definitive bonds when ready for delivery.

Cal. Education Code - EDC § 92486. Section 92486.

The regents may provide for the replacement of lost, destroyed, or mutilated bonds, or coupons.

Cal. Education Code - EDC § 92487. Section 92487.

Bonds issued pursuant to this chapter and the interest or income from such bonds, are exempt from all taxation in this state other than gift, inheritance, and estate taxes.

Cal. Education Code - EDC § 92488. Section 92488.

The regents may designate a bank or trust company, qualified to do business in this state, as a trustee for the regents and the holders of bonds issued pursuant to this chapter, and may authorize the trustee to act on behalf of the holders of the bonds, or any stated percentage of the bonds, and to exercise and prosecute on behalf of the holders of the bonds such rights and remedies as may be available to the holders.

Cal. Education Code - EDC § 92489. Section 92489.

The regents may fix and determine the conditions upon which any trustee shall receive, hold, or disburse any or all revenues deposited with it by or by authority of the regents. The regents shall prescribe the duties and powers of any such trustee with respect to the issuance, authentication, sale, and delivery of the bonds and the payment of principal of, and interest on, the bonds, the redemption of the bonds, the registration and discharge from registration of the bonds, and the management of any sinking fund or other funds provided as security for the bonds.

Cal. Education Code - EDC § 92490. Section 92490.

All bonds issued pursuant to this chapter are negotiable instruments, except when registered in the name of a registered owner.

Cal. Education Code - EDC § 92491. Section 92491.

Except as provided otherwise in any indenture, the holder of any bond issued pursuant to this chapter may, by mandamus or other appropriate proceeding, require and compel the performance of any of the duties imposed upon the regents or upon any official or employee or assumed by the regents or any official or employee, in connection with the acquisition, construction, operation, maintenance, repair, reconstruction, or insurance of any project, or the collection, deposit, investment, application, and disbursement of rents, rates, charges, fees, and all other revenues derived from the operation and use of any project or in connection with the deposit, investment, and disbursement of the proceeds received from the sale of bonds pursuant to this chapter. The enumeration of such rights and remedies does not, however, exclude the exercise or prosecution of any other rights or remedies available to the holders of bonds issued pursuant to this chapter.

Cal. Education Code - EDC § 92492. Section 92492.

Notwithstanding any other provision of law, all bonds sold and delivered pursuant to this chapter are legal investments for all trust funds and for the funds of all insurance companies, banks, both commercial and savings, trust companies, the state school funds, and any public or private funds which may be invested in county, municipal, or school district bonds, and may be deposited as security for the performance of any act whenever the bonds of any county, municipality, or school district may be so deposited, and may also be used as security for the deposit of public moneys in banks and savings and loan associations of this state.

Cal. Education Code - EDC § 92493. Section 92493.

(a) (1) The University of California may pledge, along with its other revenues, its annual General Fund support appropriation less the amount of that appropriation that is required to fund general obligation bond payments and the State Public Works Board rental payments, to secure the payment of any of the university’s general revenue bonds or commercial paper associated with the general revenue bond program and to secure payment for any availability payments, lease payments, installment payments, and other similar or related payments. (2) To the extent the university pledges any part of its support appropriation as a source of revenue securing any obligation, it shall provide that this commitment of revenue is subject to annual appropriation by the Legislature. (3) The university may fund debt service for capital expenditures defined in subdivision (b), and make availability payments, lease payments, installment payments, and other similar or related payments for capital expenditures defined in subdivision (b), from its General Fund support appropriation pursuant to Sections 92495 and 92495.5. (4) The state hereby covenants with the holders of the university’s obligations secured by the pledge of the university permitted by this section that, so long as any of the obligations referred to in this subdivision remain outstanding, the state will not impair or restrict the ability of the university to pledge any support appropriation or support appropriations that may be enacted for the university. The university may include this covenant of the state in the agreements or other documents underlying the university’s obligations to this effect. (b) For purposes of this section, the following definitions shall apply: (1) “Availability payments” are payments made by the university to a contractor for providing an available facility. (2) “Capital expenditures” means any of the following: (A) The costs to design, construct, or equip academic facilities to address seismic and life safety needs, enrollment growth, or modernization of out-of-date facilities, and renewal or expansion of infrastructure to serve academic programs. (B) The debt service amount associated with refunding, defeasing, or retiring State Public Works Board lease revenue bonds. (C) The costs to design, construct, or equip energy conservation projects. (D) The costs of deferred maintenance of academic facilities and related infrastructure. (c) Nothing in this section shall require the Legislature to make an appropriation from the General Fund in any specific amount to support the University of California. (d) The ability to utilize its support appropriation as stated in this section shall not be used as a justification for future increases in student tuition, additional employee layoffs, or reductions in employee compensation at the University of California.

Cal. Education Code - EDC § 92494. Section 92494.

(a) The University of California may fund pay-as-you-go capital outlay projects from its General Fund support appropriation pursuant to Sections 92495 and 92495.5. (b) For purposes of this section, “capital outlay project” means both of the following: (1) The costs to design, construct, or equip academic facilities to address seismic and life safety needs, enrollment growth, or modernization of out-of-date facilities, and renewal or expansion of infrastructure to serve academic programs. (2) The costs to design, construct, or equip energy conservation projects.

Cal. Education Code - EDC § 92495. Section 92495.

(a) (1) Commencing with the 2013–14 fiscal year and for each fiscal year thereafter, if the University of California plans to use any of its support appropriation in the annual budget for the subsequent fiscal year for capital expenditures pursuant to Section 92493, as defined in subparagraph (A) or (D) of paragraph (2) of subdivision (b) of that section, or for capital outlay projects pursuant to Section 92494, as defined in paragraph (1) of subdivision (b) of that section, it shall simultaneously submit, on or before September 1, 10 months before the commencement of that fiscal year, a report to the committees in each house of the Legislature that consider the annual state budget, the budget subcommittees in each house of the Legislature that consider appropriations for the University of California, and the Department of Finance. (2) The report shall detail the scope of capital expenditures or capital outlay projects and how the capital expenditures or capital outlay projects will be funded, and it shall provide the same level of detail as a capital outlay budget change proposal. The certifications required by subdivision (e) shall be attached to the report. (3) The Department of Finance shall review the report and submit, by February 1, a list of preliminarily approved capital expenditures and capital outlay projects, including the certifications required by subdivision (e) for each applicable expenditure and project, to the committees in each house of the Legislature that consider the annual state budget and the budget subcommittees in each house of the Legislature that consider appropriations for the University of California. These committees may review and respond to the list of preliminarily approved capital expenditures and capital outlay projects before April 1. (4) The Department of Finance shall submit a final list of approved capital expenditures and capital outlay projects to the University of California no earlier than April 1, three months before the commencement of the fiscal year of the planned expenditures. (b) The Department of Finance may approve capital expenditures defined in subparagraph (C) of paragraph (2) of subdivision (b) of Section 92493, or capital outlay projects defined in paragraph (2) of subdivision (b) of Section 92494, no sooner than 30 days after submitting, in writing, a list of capital expenditures and capital outlay projects being considered for approval, with the applicable certifications required by subdivision (e), to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and the appropriate subcommittees in each house of the Legislature that consider the State Budget, and the Chairperson of the Joint Legislative Budget Committee. (c) The University of California shall not use its General Fund support appropriation to fund a capital expenditure defined in subparagraph (A), (C), or (D) of paragraph (2) of subdivision (b) of Section 92493, or capital outlay project defined in subdivision (b) of Section 92494, before receiving approval from the Department of Finance pursuant to this section. (d) (1) The University of California may proceed with capital expenditures pursuant to Section 92493, as defined in paragraph (2) of subdivision (b) of that section, or capital outlay projects pursuant to Section 92494, only if all work traditionally performed by persons with University of California Service Unit (SX) job classifications is performed only by employees of the University of California. This paragraph shall become inoperative on January 1, 2021. (2) Commencing January 1, 2021, the University of California may proceed with capital expenditures, as defined in subparagraph (A), (C), or (D) of paragraph (2) of subdivision (b) of Section 92493, or capital outlay projects defined in subdivision (b) of Section 92494, only upon certification that during the subsequent fiscal year and at all times thereafter, all cleaning, maintenance, groundskeeping, food service, or other work traditionally performed by persons with University of California Service Unit (SX) job classifications, shall be performed only by employees of the University of California at each beneficially affected facility, building, or other property. (3) This subdivision does not apply to, and shall not restrict the performance of, work done under contract and paid for in whole or in part out of public funds, when the work is either of the following: (A) Construction, alteration, demolition, installation, or repair work, including work performed during the design, preconstruction, and postconstruction phases of construction. (B) Carpentry, electrical, plumbing, glazing, painting, and other craft work designed to preserve, protect, or keep any publicly owned facility in a safe and continuously usable condition, including repairs, cleaning, and other operations on machinery and other equipment permanently attached to the building or real property as fixtures. (e) Commencing with the 2021–22 fiscal year, and for each fiscal year thereafter, the Department of Finance shall approve each new and ongoing capital expenditure defined in subparagraph (A), (C), or (D) of paragraph (2) of subdivision (b) of Section 92493, and each capital outlay project defined in subdivision (b) of Section 92494, only after the University of California has demonstrated ongoing and continuous compliance with subdivisions (c) and (d). For each capital expenditure and each capital outlay project, a demonstration of compliance shall include a certification of compliance with subdivision (d) signed by the President of the University of California, or their duly authorized designee, indicating that, at each facility, building, or other property that will benefit from state funding for a capital expenditure or capital outlay project, both of the following occur: (1) All work specified in subdivision (d) will be performed exclusively by University of California employees. (2) Either of the following: (A) All work described in subdivision (d) has been performed exclusively by University of California employees at all times since the University of California received state funding for a capital expenditure or capital outlay project after January 1, 2017. (B) The University of California shall provide a written report detailing any noncompliance with subdivision (c) or (d), specifying how many contract workers performed work at each site, for what periods of time, and what the University of California has done to remedy the noncompliance, and, on or before February 1 of each calendar year, shall certify to the satisfaction of the chairpersons of the budget committee of each house of the Legislature that it has maintained subsequent compliance with subdivisions (c) and (d). (f) Notwithstanding Section 10231.5 of the Government Code, commencing with the 2014–15 fiscal year, on or before February 1 of each fiscal year, the University of California shall simultaneously submit a progress report to the Joint Legislative Budget Committee and the Department of Finance detailing the scope, funding, and current status of all capital expenditures undertaken pursuant to Section 92493 and for all capital outlay projects undertaken pursuant to Section 92494. (g) All reporting, certification requirements, approval procedures, and other provisions of this section shall apply to all General Fund support appropriations for capital expenditures or capital outlay projects, regardless of whether those projects involve academic or nonacademic facilities. This subdivision does not authorize appropriations for capital expenditures or capital outlay projects for nonacademic facilities.

Cal. Education Code - EDC § 92495.5. Section 92495.5.

The university shall manage its general revenue bond program and the payments referenced in Section 92493, in a manner so that not more than 15 percent of its General Fund support appropriation, less the amount of that appropriation that is required to fund general obligation bond payments and State Public Works Board rental payments, is used for the total of all of the following: (a) Payments for capital expenditures pursuant to Section 92493. (b) Pay-as-you-go capital outlay projects pursuant to Section 92494. (c) State Public Works Board rental payments.

Cal. Education Code - EDC § 92495.6. Section 92495.6.

Notwithstanding Sections 13332.11 and 13332.19 of the Government Code or any other law, the University of California may proceed with capital expenditures and capital outlay projects pursuant to Sections 92495 and 92495.5 without any further limitations or approvals, except those delineated in Sections 92495 and 92495.5.

Cal. Education Code - EDC § 92496. Section 92496.

If the university is able to reduce annual debt service costs by refunding, defeasing, or retiring general obligation bonds or State Public Works Board lease revenue bonds, as described in Section 92493, the university shall annually contribute an equal amount to reduce the existing unfunded liability of the University of California Retirement Plan.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026