LawWiki
HomeCodesSearchGlossaryAPIAbout
LawWiki

Plain English summaries of California law with zero-hallucination AI. Every summary is verified against official source text.

Product

  • Search
  • Codes
  • About

Legal

  • Privacy Policy
  • Terms of Service
  • Disclaimer

© 2026 LawWiki. All rights reserved.

HomeEducation CodeCh. 6Art. 1§ 16032 School Bond Fund Misuse

§ 16032 School Bond Fund Misuse

Education Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 16032 School Bond Fund Misuse

This rule lets the board say that if a school district spends bond money on things the law doesn’t allow, that money won’t count as approved debt service, so the district doesn’t have to add extra money to the project.

Key Takeaways

  • •The board can find when bond money is used for the wrong purpose.
  • •If misuse is found, the board can declare that money not eligible as bond debt service.
  • •When declared ineligible, the school district isn’t required to add its own funds to the original project.

Example

A school district sells bonds to build a new cafeteria, but it uses part of that money to buy new computers, which isn’t allowed under the bond rules.

The board can decide that the money spent on computers doesn’t count as eligible bond debt, so the district isn’t forced to put more of its own money into the cafeteria project.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 16032 School Bond Fund Misuse

Notwithstanding any other provisions of this chapter, whenever the board makes a finding pursuant to Section 16031 that proceeds from the sale of district bonds have been expended or encumbered by a school district for purposes outside the scope and intent of this chapter the board, in lieu of requiring the district to contribute toward the project for which an apportionment is sought from any funds of the district, may stipulate that such bond funds expended or encumbered shall not be considered as “eligible bonded debt service” as defined in Section 16070 and 16084. (Repealed and added by Stats. 1996, Ch. 277, Sec. 2. Effective January 1, 1997. Operative January 1, 1998.)

Last verified: January 10, 2026

Key Terms

eligible bonded debt serviceproceeds from the sale of district bonds

Related Statutes

  • § 16025 School Facility Repayment Adjustment
  • § 16028.5 Year-Round School Funding Penalty
  • § 16071.5 Bond Repayment Excess Limits
  • § 16072 Bonded Debt Service Certification
  • § 16072.5 Bond Proceeds Debt Service

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 16032.
View Official Source