SECTIONS 99000-99003 - California Statutes

GOVERNMENT CODE

SECTION 99000-99003

99000. This title shall be known and may be cited as the California
Fiscal Recovery Financing Act.

99001. It is the intent of the Legislature in enacting this title
to provide for an efficient, equitable, and economical means of
funding the accumulated budget deficit in order to preserve public
education and critical health and safety programs.

99002. The Legislature finds and declares as follows:
(a) The bonds authorized to be issued by the authority under this
title, and any ancillary obligations entered into with respect to the
bonds, are not a debt or liability of the state subject to Section 1
of Article XVI of the California Constitution. The appropriation, if
any, by the Legislature of special sales tax revenues to the
California Fiscal Recovery Financing Authority created in Section
99004 is not payment on a debt or liability of the state subject to
Section 1 of Article XVI of the California Constitution.
(b) Temporary special sales tax revenues deposited in the Fiscal
Recovery Fund created in Section 99008 do not constitute General Fund
revenues for the purposes of Section 8 of Article XVI of the
California Constitution or any other provision of law.
(c) It is the intent of the Legislature that the moneys deposited
in the Fiscal Recovery Fund shall not be available for any purpose
other than payment of the principal, interest, premium, if any, and
replenishment of reserves of the bonds, payment of ancillary
obligations, or payment of administrative expenses of the California
Fiscal Recovery Financing Authority.
(d) It is the intent of the Legislature that the proceeds of the
bonds issued pursuant to this title shall be used solely to eliminate
the accumulated budget deficit identified as of June 30, 2003, or to
refund outstanding bonds issued for that purpose. It is further the
intent of the Legislature that any bonds issued pursuant to this
title, and any ancillary obligations entered into in relation to
those bonds, be repaid in the shortest practicable time consistent
with favorable bond ratings and marketing considerations. Any
legislation that results in an extension of the period during which
the additional special sales taxes provided for in Sections 6051.5
and 6201.5 of the Revenue and Taxation Code are imposed beyond the
time necessary to satisfy any obligations incurred to eliminate the
accumulated budget deficit identified as of June 30, 2003 shall be
deemed to be an increase in taxes requiring a two-thirds vote of each
house of the Legislature.
(e) It is the intent of the Legislature that the only
appropriation made by this title is set forth in subdivision (d) of
Section 99008.

99003. Unless the context requires otherwise, the following
definitions shall govern the construction of this title:
(a) "Accumulated budget deficit" means the estimated negative
balance, excluding any projected deficit financing proceeds, of the
Special Fund for Economic Uncertainties as of June 30, 2003, as
certified by the Director of Finance prior to the issuance of any
bonds pursuant to this title.
(b) "Ancillary obligation" means the obligation of the authority
under any of the following, entered into by the authority in
connection with any bonds issued under this title:
(1) A credit enhancement or liquidity agreement, including any
credit enhancement or liquidity agreement in the form of bond
insurance, letter of credit, standby bond purchase agreement,
reimbursement agreement, liquidity facility, or other similar
arrangement.
(2) A remarketing agreement.
(3) An auction agent agreement.
(4) A broker-dealer agreement or other agreement relating to the
marketing of the bonds.
(5) An interest rate or other type of swap or hedging contract.
(6) An investment agreement, forward purchase agreement, or
similar structured investment contract.
(c) "Authority" means the California Fiscal Recovery Financing
Authority created by Section 99004.
(d) "Available revenues" means the special sales tax revenues
appropriated pursuant to this title by the Legislature to pay
principal, interest, premium, if any, replenishment of reserves, and
any related costs on the bonds issued pursuant to this title or to
pay amounts relating to any ancillary obligations, together with any
reserves or other amounts that have been deposited with the trustee
to pay the bonds or to pay ancillary obligations and any investment
earnings on any of those funds. Notwithstanding any other provision
of law, the Legislature shall not be obligated to appropriate or
otherwise make available any other funds to pay the bonds or to pay
ancillary obligations.
(e) "Board" means the State Board of Equalization.
(f) "Bonds" means any bonds, notes, bond anticipation notes,
interim certificates, debentures, or similar instruments issued by
the authority pursuant to this title.
(g) "Fiscal Recovery Fund" means the special fund created by
Section 99008.
(h) "Indenture" means any resolution, trust agreement, indenture,
certificate, or other instrument authorizing the issuance of bonds by
the authority pursuant to this title, and providing for their
security and repayment.
(i) "Special sales tax revenues" means the proceeds of that
portion of the sales and use tax temporarily imposed by the state
pursuant to Section 6051.5 or 6201.5 of the Revenue and Taxation
Code.
(j) "Trustee" means the Treasurer or a bank or trust company
within or without the state acting as trustee for any issue of bonds
under this title and, if there is more than one issue of bonds, shall
refer to the trustee for each issue of bonds respectively. In the
event there are cotrustees for an issue of bonds, "trustee" shall
refer to those cotrustees collectively.