SECTIONS 67335-67343 - California Statutes

EDUCATION CODE

SECTION 67335-67343

67335. (a) Bonds in the total amount of six hundred million dollars
($600,000,000), not including the amount of any refunding bonds
issued in accordance with Section 67343, 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 be used to
reimburse the General Obligation Bond Expense Revolving Fund
pursuant to Section 16724.5 of the Government Code. The bonds shall,
when sold, 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 both
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 committee at such different times as necessary to
service expenditures required by the apportionments.

67336. 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 apply to the bonds and to this
chapter and are hereby incorporated in this chapter as though set
forth in full in this chapter. For purposes of the State General
Obligation Bond Law, the State Public Works Board is designated the
"board."

67337. The committee shall authorize the issuance of bonds under
this chapter only to the extent necessary to fund the apportionments
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 actions
specified in Section 67334 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.

67338. 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, and 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.

67339. 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 which is necessary to carry out the provisions of
Section 67340, appropriated without regard to fiscal years.

67340. For the purposes of carrying out this chapter, the Director
of Finance may, by executive order, authorize the withdrawal from the
General Fund of an amount or amounts not to exceed the amount of the
unsold bonds which have been authorized to be sold for the purpose
of carrying out this chapter. Any amounts withdrawn shall be
deposited in the fund. Any money made available under this section
shall be returned to the General Fund, together with interest at the
rate paid on moneys in the Pooled Money Investment Account, from
money received from the sale of bonds for the purpose of carrying out
this chapter.

67340.5. Notwithstanding any other provision of this bond act, or
of 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), if the Treasurer sells bonds pursuant to this bond act that
include a bond counsel opinion to the effect that the interest on the
bonds is excluded from gross income for federal tax purposes under
designated conditions, the Treasurer may maintain separate accounts
for the bond proceeds invested and the investment earnings on those
proceeds, and 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, as may be required or desirable under federal
law in order 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.

67341. All money deposited in the 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.

67342. The board may request the Pooled Money Investment Board for
a loan from the Pooled Money Investment Account, in accordance with
Section 16312 of the Government Code, and may execute those documents
required by the Pooled Money Investment Board to obtain and repay
the loan. The loan shall be deposited in the fund for the purpose of
carrying out the provisions of this chapter. The amount of the loan
shall not exceed the amount of the unsold bonds that the committee,
by resolution, has authorized to be sold for the purposes of this
chapter.

67343. Any bonds issued and sold pursuant to this chapter may be
refunded by the issuance and sale or exchange of refunding bonds 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. The
approval by the electors of this state of the issuance and sale of
bonds under this chapter includes approval of the issuance and sale
or exchange of any bonds issued to refund either those bonds or any
previously issued refunding bonds.