SECTIONS 101050-101060 - California Statutes

EDUCATION CODE

SECTION 101050-101060

101050. (a) Of the total amount of bonds authorized to be issued
and sold pursuant to Chapter 1 (commencing with Section 101000),
bonds in the amount of one billion five hundred eighty million
dollars ($1,580,000,000), not including the amount of any refunding
bonds issued in accordance with Section 101059, or so much thereof as
is necessary, may be issued and sold to provide a fund to be used
for carrying out the purposes expressed in this chapter and to
reimburse the General Obligation Bond Expense Revolving Fund pursuant
to Section 16724.5 of the Government Code. The bonds, when sold,
shall be and constitute a valid and binding obligation of the State
of California, and the full faith and credit of the State of
California is hereby pledged for the punctual payment of the
principal of, and interest on, the bonds as the principal and
interest become due and payable.
(b) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the Higher Education Facilities Finance Committee
established pursuant to Section 67353 at any different times
necessary to service expenditures required by the apportionments.

101051. (a) The bonds authorized by this chapter shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code),
and all of the provisions of that law, except Section 16727 of the
Government Code to the extent that it conflicts with this part, apply
to the bonds and to this chapter and are hereby incorporated into
this chapter as though set forth in full within this chapter.
(b) For the purposes of the State General Obligation Bond Law,
each state agency administering an appropriation of the 2006
University Capital Outlay Bond Fund is designated as the "board" for
projects funded pursuant to this chapter.
(c) The proceeds of the bonds issued and sold pursuant to this
chapter shall be available for the purpose of funding aid to the
University of California, the Hastings College of the Law, and the
California State University, for the construction on existing or new
campuses, and their respective off-campus centers and joint use and
intersegmental facilities, as set forth in this chapter.

101052. The Higher Education Facilities Finance Committee
established pursuant to Section 67353 shall authorize the issuance of
bonds under this chapter only to the extent necessary to fund the
apportionments for the purposes described in this chapter that are
expressly authorized by the Legislature in the annual Budget Act.
Pursuant to that legislative direction, the committee shall determine
whether or not it is necessary or desirable to issue bonds
authorized pursuant to this chapter in order to carry out the
purposes described in this chapter and, if so, the amount of bonds to
be issued and sold. Successive issues of bonds may be authorized and
sold to carry out those actions progressively, and it is not
necessary that all of the bonds authorized to be issued be sold at
any one time.

101053. There shall be collected each year and in the same manner
and at the same time as other state revenue is collected, in addition
to the ordinary revenues of the state, a sum in an amount required
to pay the principal of, and interest on, the bonds each year. It is
the duty of all officers charged by law with any duty in regard to
the collection of the revenue to do and perform each and every act
which is necessary to collect that additional sum.

101054. Notwithstanding Section 13340 of the Government Code, there
is hereby appropriated from the General Fund in the State Treasury,
for the purposes of this chapter, an amount that will equal the total
of the following:
(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this chapter, as the
principal and interest become due and payable.
(b) The sum necessary to carry out Section 101057, appropriated
without regard to fiscal years.

101055. The board, as defined in subdivision (b) of Section 101051,
may request the Pooled Money Investment Board to make a loan from
the Pooled Money Investment Account or any other approved form of
interim financing, in accordance with Section 16312 of the Government
Code, for the purpose of carrying out this chapter. The amount of
the request shall not exceed the amount of the unsold bonds that the
committee, by resolution, has authorized to be sold for the purpose
of carrying out this chapter. The board, as defined in subdivision
(b) of Section 101051, shall execute any documents required by the
Pooled Money Investment Board to obtain and repay the loan. Any
amounts loaned shall be deposited in the fund to be allocated by the
board in accordance with this chapter.

101056. Notwithstanding any other provision of this chapter, or of
the State General Obligation Bond Law, if the Treasurer sells bonds
pursuant to this chapter that include a bond counsel opinion to the
effect that the interest on the bonds is excluded from gross income
for federal tax purposes, subject to designated conditions, the
Treasurer may maintain separate accounts for the investment of bond
proceeds and for the investment earnings on those proceeds. The
Treasurer may use or direct the use of those proceeds or earnings to
pay any rebate, penalty, or other payment required under federal law
or take any other action with respect to the investment and use of
those bond proceeds required or desirable under federal law to
maintain the tax-exempt status of those bonds and to obtain any other
advantage under federal law on behalf of the funds of this state.

101057. (a) For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds that
have been authorized by the Higher Education Facilities Finance
Committee to be sold for the purpose of carrying out this chapter.
Any amounts withdrawn shall be deposited in the 2006 University
Capital Outlay Bond Fund consistent with this chapter. Any money made
available under this section shall be returned to the General Fund,
plus an amount equal to the interest that the money would have earned
in the Pooled Money Investment Account, from proceeds received from
the sale of bonds for the purpose of carrying out this chapter.
(b) Any request forwarded to the Legislature and the Department of
Finance for funds from this bond issue for expenditure for the
purposes described in this chapter by the University of California,
the Hastings College of the Law, or the California State University
shall be accompanied by the five-year capital outlay plan. Requests
forwarded by a university or college shall include a schedule that
prioritizes the seismic retrofitting needed to significantly reduce,
in the judgment of the particular university or college, seismic
hazards in buildings identified as high priority by the university or
college.

101058. All money deposited in the 2006 University Capital Outlay
Bond Fund that is derived from premium and accrued interest on bonds
sold shall be reserved in the fund and shall be available for
transfer to the General Fund as a credit to expenditures for bond
interest.

101059. The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of Chapter 4 of Part 3 of Division 4
of Title 2 of the Government Code, which is a part of the State
General Obligation Bond Law. Approval by the voters of the state for
the issuance of the bonds described in this chapter includes the
approval of the issuance of any bonds issued to refund any bonds
originally issued under this chapter or any previously issued
refunding bonds.

101060. The Legislature hereby finds and declares that, inasmuch as
the proceeds from the sale of bonds authorized by this chapter are
not "proceeds of taxes" as that term is used in Article XIII B of the
California Constitution, the disbursement of these proceeds is not
subject to the limitations imposed by that article.