SECTIONS 99065-99077 - California Statutes

GOVERNMENT CODE

SECTION 99065-99077

99065. (a) Subject to subdivision (b), bonds in the total amount of
fifteen billion dollars ($15,000,000,000), not including the amount
of any refunding bonds issued in accordance with Section 99075, 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 title
and to reimburse the General Obligation Bond Expense Revolving Fund,
pursuant to Section 16724.5. 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 both principal of, and interest
on, the bonds as the principal and interest become due and payable.
Additionally, the bonds, when sold, shall be secured by a pledge of
revenues and any other amounts in the Fiscal Recovery Fund created
pursuant to Section 99008. The bonds may be secured by different lien
priorities on amounts in the Fiscal Recovery Fund.
(b) The amount of bonds that may be issued and sold pursuant to
subdivision (a) shall be reduced by the amount of bonds issued
pursuant to Title 17 (commencing with Section 99000), and by the
amount of bonds issued pursuant to the California Pension Obligation
Financing Act (Chapter 7 (commencing with Section 16910) of Part 3 of
Division 4 of Title 2), except to the extent those bonds will be
retired, defeased, or redeemed with the proceeds of bonds authorized
by this title.
(c) Pursuant to this section, the Treasurer shall sell the bonds
authorized by the committee. The bonds shall be sold upon the terms
and conditions specified in a resolution to be adopted by the
committee pursuant to Section 16731 and Section 99070. Whenever the
committee deems it necessary for an effective sale of the bonds, the
committee may authorize the Treasurer to sell any issue of bonds at
less than their par value. Notwithstanding Section 16754.3, the
discount with respect to any issue of the bonds shall not exceed 3
percent of the par value thereof, net of any premium.

99066. The bonds authorized by this title 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), and all of the provisions
of that law, except subdivisions (a) and (b) of Section 16727 or any
other provision in that law that is inconsistent with the terms of
this title, apply to the bonds and to this title and are hereby
incorporated in this title as though set forth in full in this title.

99067. For purposes of this title, the Department of Finance is
designated the "board" as that term is used in the State General
Obligation Bond Law.

99069. Notwithstanding any other provision of this title, or of the
State General Obligation Bond Law, if the Treasurer sells bonds
pursuant to this title 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 bond proceeds
invested and for 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 that is 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.

99070. (a) (1) The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
title in order to carry out the purposes of this title and, if so,
the amount of bonds to be issued and sold, the times at which the
proceeds of the bonds authorized by this title shall be required to
be available, and those other terms and conditions for the bonds
authorized by this title as it shall determine necessary or
desirable.
(2) In addition to all other powers specifically granted in this
title and the State General Obligation Bond Law, the committee may do
all things necessary or convenient to carry out the powers and
purposes of this title, including the approval of any indenture and
any ancillary obligation relating to those bonds, and the delegation
of necessary duties to the chairperson, and to the Treasurer as agent
for sale of the bonds.
(3) The committee shall determine the amount of the bonds to be
issued so that the net proceeds of the bonds issued to fund the
accumulated budget deficit, when added to the net proceeds of any
bonds issued pursuant to Title 17 (commencing with Section 99000) for
that purpose, exclusive of bonds issued pursuant to this title for
the purpose of refunding bonds issued pursuant to this title or Title
17 (commencing with Section 99000), will not exceed fifteen billion
dollars ($15,000,000,000) in the aggregate. Nothing in this section
shall be construed to limit the ability of the committee to authorize
the issuance of any amount of bonds that it shall determine
necessary or appropriate to accomplish the purposes of this title,
including the refunding or redemption of the bonds issued pursuant to
Title 17 (commencing with Section 99000), subject to the limit on
the total amount of bonds set forth in Section 99065.
(b) 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. In
addition to all other powers specifically granted in this title and
the State General Obligation Bond Law, the committee may do all
things necessary or convenient, including the delegation of necessary
duties to the chairperson and to the Treasurer as agent for sale of
the bonds, to carry out the powers and purposes of this title.

99071. The principal of and interest on the bonds and the payment
of any ancillary obligations shall be payable from and secured by a
pledge of all state sales and use tax revenues in the Fiscal Recovery
Fund established pursuant to Section 99008 and any earnings thereon.
To the extent that moneys in the Fiscal Recovery Fund are deemed
insufficient to make these payments, pursuant to an estimate
certified by the Director of Finance and approved by the committee,
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 and the payment of any
ancillary obligations for which payment is authorized by this title
and for which the full faith and credit of the state has been
pledged. 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 that is necessary to collect that additional sum.

99072. (a) Notwithstanding Section 13340, there is hereby
continuously appropriated from the Fiscal Recovery Fund established
pursuant to Section 99008 an amount that will equal the total of the
following:
(1) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold as described in Section 99070, as
the principal and interest become due and payable, together with any
amount necessary to satisfy any reserve and coverage requirements in
the resolution.
(2) The sum necessary to pay any ancillary obligations entered
into in connection with the bonds.
(3) Any trustee and other administrative costs incurred in
connection with servicing the bonds and ancillary obligations.
(4) Redemption, retirement, defeasance or purchase of any bonds as
authorized by the committee prior to their stated maturity dates.
(b) Notwithstanding Section 13340, if the funds appropriated by
subdivision (a) are estimated to be insufficient to meet the
requirement specified in paragraphs (1) to (4), inclusive, of
subdivision (a), as approved pursuant to Section 99071, there is
hereby continuously appropriated from the General Fund, for the
purposes of this chapter, an amount that will provide sufficient
revenues to meet whatever requirements specified in paragraphs (1) to
(4), inclusive, of subdivision (a) cannot be met from revenues
appropriated from the Fiscal Recovery Fund.
(c) The sales and use tax revenues received pursuant to Sections
6051.5 and 6201.5 of the Revenue and Taxation Code and deposited into
the Fiscal Recovery Fund are hereby irrevocably pledged to the
payment of principal and interest on the bonds issued pursuant to
this title, to payment of any ancillary obligations, and to costs
necessary for servicing and administering the bonds and ancillary
obligations. The Legislature may elect to deposit additional revenues
in the Fiscal Recovery Fund. The pledge of this subdivision shall
vest automatically upon execution and delivery of any resolution or
agreement relating to ancillary obligations, without the need for any
notice or filing in any office or location.

99074. All money deposited in the Economic Recovery Fund that is
derived from accrued interest on bonds sold shall be reserved in that
fund and shall be available for transfer to the Fiscal Recovery Fund
as a credit to expenditures for bond interest.

99075. 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, which is a part of the State General Obligation Bond Law.
Approval by the electors of the state for the issuance of the bonds
described in this title shall include approval of the issuance of any
bonds issued to refund any bonds originally issued under this title
or any previously issued refunding bonds.

99076. The Legislature hereby finds and declares that, inasmuch as
the proceeds from the sale of bonds authorized by this title 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.

99077. The state hereby pledges and agrees with the holders of any
bonds issued pursuant to this title that it will not reduce the rate
of imposition of either of the taxes imposed pursuant to Sections
6051.5 and 6201.5 of the Revenue and Taxation Code, which generate
the revenue deposited in the Fiscal Recovery Fund.