SECTIONS 14065-14076 - California Statutes

WATER CODE

SECTION 14065-14076

14065. Bonds in the total amount of sixty-five million dollars
($65,000,000), exclusive of refunding bonds, 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.

14066. 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.

14067. (a) Solely for the purpose of authorizing the issuance and
sale, pursuant to the State General Obligation Bond Law, of the bonds
authorized by this chapter, the Clean Water and Water Reclamation
Finance Committee is hereby created. For purposes of this chapter,
the Clean Water and Water Reclamation Finance Committee is "the
committee" as that term is used in the State General Obligation Bond
Law. The committee consists of the Governor, the Controller, the
Treasurer, the Director of Finance, and the Executive Director of the
State Water Resources Control Board, or their designated
representatives. A majority of the committee may act for the
committee.
(b) For purposes of the State General Obligation Bond Law, the
State Water Resources Control Board is designated the "board."

14068. Consistent with Section 602 of the federal act, 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 Sections 14056, 14057, 14058, 14059,
and 14060, 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.

14069. 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.

14070. 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 14071, appropriated without regard to fiscal years.

14071. For the purposes of carrying out this chapter, the Director
of Finance may 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 by the committee 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 plus the interest that the amounts would
have earned in the Pooled Money Investment Account from money
received from the sale of bonds for the purpose of carrying out this
chapter.

14071.5. The board may request the Pooled Money Investment Board to
make a loan from the Pooled Money Investment Account, in accordance
with Section 16312 of the Government Code, for the purposes of
carrying out this chapter. The amount of the request shall not exceed
the amount of the unsold bonds which the committee has, by
resolution, authorized to be sold for the purpose of carrying this
chapter. The board shall execute those 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.

14072. All money deposited in the fund which 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.

14073. The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of the State General Obligation Bond
Law.

14074. (a) Notwithstanding any other provision of this chapter and
to the extent permitted by federal and state law, the money in the
fund may be used to rebate to the federal government all arbitrage
profits required by the Federal Tax Reform Act of 1986 or any
amendment thereof or supplement thereto. To the extent that the money
in the fund may not be used for that purpose due to restraints of
federal or state law, any rebates required shall be paid from the
General Fund or other sources as the Legislature may require.
(b) Notwithstanding any other provision of law, or rule or
regulation, the board may enter into contracts, or procure those
services and equipment, which may be necessary to ensure prompt and
complete compliance with any provisions relating to the fund imposed
by either the Federal Tax Reform Act of 1986 or the federal act.

14075. 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.

14076. Notwithstanding Section 14074 or 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.