SECTIONS 17240-17255 - California Statutes

GOVERNMENT CODE

SECTION 17240-17255

17240. As used in this chapter:
(a) "Reimbursement warrants" refers to warrants drawn by the
Controller on the General Fund pursuant to this article to reimburse
the General Cash Revolving Fund for demands against the General Fund
for which warrants were drawn against the General Cash Revolving
Fund.
(b) "Refunding warrants" refers to warrants drawn by the
Controller on the General Fund pursuant to this article to provide
funds for the payment of reimbursement warrants bearing a fixed
maturity date or warrants issued pursuant to Section 17211.

17240.5. (a) If the Controller requests that registered
reimbursement warrants be issued, and the Governor determines
pursuant to Section 16381 that the need for those warrants is
justified, a copy of the written request from the Controller shall
also be provided to the chairperson and vice chairperson of the
Senate Committee on Budget and Fiscal Review and the Assembly
Committee on Budget, the chairperson and vice chairperson of the
Joint Legislative Budget Committee, and the chairperson and vice
chairperson of the Senate and Assembly Committee on Appropriations.
(b) No later than 15 days following the completion of a registered
reimbursement warrant issuance, the Controller shall report on the
specific details of the issuance to the chairperson and vice
chairperson of the Senate Committee on Budget and Fiscal Review and
the Assembly Committee on Budget, the chairperson and vice
chairperson of the Joint Legislative Budget Committee, and the
chairperson and vice chairperson of the Senate and Assembly Committee
on Appropriations.

17241. To reimburse the General Cash Revolving Fund, the Controller
may draw reimbursement warrants on the General Fund in the same
manner as if General Cash Revolving Fund warrants had not been issued
to meet the demands for which they were drawn.

17242. If a reimbursement warrant represents an amount in excess of
the balance remaining in the unapplied money in the General Fund
after first deducting from such unapplied money the amount, as
estimated by the Controller, which is required by law to be
earmarked, reserved or set apart from such unapplied money for the
payment of obligations of the State having priority over the
obligation to which such reimbursement warrant is applicable, it
shall be registered by the Treasurer pursuant to the provisions of
this chapter.

17243. The Controller may fix a maturity date for reimbursement
warrants, and indorse upon each warrant, the date upon which the
principal amount of the warrant will be paid and redeemed. The
Controller, with the concurrence of the Department of Finance and the
Office of the State Treasurer, may fix periodic payment dates for
interest on reimbursement warrants or provide that interest on
reimbursement warrants be paid only upon redemption, provided that
interest on registered reimbursement warrants for which the committee
has not fixed a maximum rate of interest pursuant to Section 17244
shall be paid only upon redemption of the registered reimbursement
warrant.

17244. (a) Notwithstanding any other provision of law, in lieu of
prescribing a precise interest rate on registered reimbursement
warrants, the committee may fix a maximum rate of interest for the
warrants, not to exceed 12 percent per annum for either fixed or
variable interest rate warrants, and prescribe that the interest rate
on the warrants, not in excess of that maximum, shall be either of
the following:
(1) Fixed in accordance with the best bids for the warrants if the
warrants are sold at public sale.
(2) Fixed or variable on the terms and conditions the Controller
shall approve at the time of sale of the warrants if the warrants are
sold in negotiated sales.
(b) Different rates of interest for any reimbursement warrants may
be so fixed or established by the Controller.

17245. Registered reimbursement warrants shall be sold by the
Controller at public sale to the best bidders or in negotiated sales
on the terms and conditions the Controller shall approve, but at no
less than face value of the registered reimbursement warrants
offered.

17246. Notice of public sale of registered reimbursement warrants
shall be given by the Controller by publication, not less than three
days prior to sale, at least once in a newspaper published in the
City of Sacramento.

17247. The notice of public sale shall specify the amount of
warrants to be sold, and the minimum amount for which the Controller
will consider bids, and shall invite sealed bids for the purchase of
the warrants. The notice shall state that no bid will be accepted
that is less than the face value of the warrants bid for, and that
the warrants will be awarded to the persons making the best bids as
determined by the Controller, considering the interest rate and
premium offered, if any.

17248. The Controller may give additional notice of any such sale
in such form and manner as he may determine.

17249. At the time specified in the notice of sale, the Controller
shall open the bids, and award the warrants to the persons making the
best bids as determined by him. The Controller may reject any and
all bids. No bid for less than the face value of any warrants shall
be accepted.

17250. The Controller shall endorse any registered reimbursement
warrant so sold or to be sold in the name of and on behalf of the
payee named in the warrant. The endorsement transfers to the holder
the warrant and the claims in pursuance of which it was drawn,
irrespective of whether the claimants have received the amount of
such claims through warrants drawn on the General Cash Revolving
Fund.

17251. The cancellation, invalidity or abatement, in whole or in
part, of any such claim, or of any warrant drawn against the General
Cash Revolving Fund, does not invalidate or otherwise affect any
registered reimbursement warrant. The certificate of the Controller
relative to any of the matters required to be found, determined or
exist as a condition to or in connection with the issuance,
registration or sale of registered reimbursement warrants, or the
making or auditing of any demand, or in respect to the issuance of
warrants on the General Cash Revolving Fund is conclusive in favor of
any holder of any registered reimbursement warrant.

17252. It is not essential to the validity of the sale of any
reimbursement warrant that it be actually registered prior to sale.

17253. The proceeds of the sale of any registered reimbursement
warrant shall be deposited in the State Treasury; an amount equal to
its face value shall be credited to the General Cash Revolving Fund;
and any premium received shall be deposited in the General Fund and
used for the payment of interest on the registered reimbursement
warrants.

17255. (a) It is the intent of the Legislature, in enacting this
section, to recognize the state's General Fund budget deficit
accumulated prior to July 1, 2009. It is further the intent of the
Legislature that proceeds from the sale of reimbursement warrants, a
short-term obligation up to the amount needed to offset the
accumulated General Fund Budget deficit through June 30, 2009, be
accounted for as a reduction in expenditures for the 2008-09 fiscal
year.
(b) For purposes of this section, the "accumulated General Fund
budget deficit through June 30, 2009" means the projected negative
balance of the Special Fund for Economic Uncertainties at the end of
the 2008-09 fiscal year, not including the effect of the accrual of
reimbursement warrants in subdivision (a) to offset expenditures in
2008-09.