SECTIONS 78690-78702 - California Statutes

WATER CODE

SECTION 78690-78702

78690. The proceeds of bonds issued and sold pursuant to this
division shall be deposited in the State Treasury to the credit of
the Safe, Clean, Reliable Water Supply Fund, created by Section
78505.

78691. Bonds in the total amount of nine hundred ninety-five
million dollars ($995,000,000), not including the amount of any
refunding bonds issued in accordance with Section 78700, or as 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 division and
to be used to reimburse the General Obligation Bond Expense Revolving
Fund pursuant to Section 16724.5 of the Government Code. 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.

78692. (a) The bonds authorized by this division 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
division and are hereby incorporated in this division as though set
forth in full in this division.
(b) For purposes of the State General Obligation Bond Law, the
State Water Resources Control Board is designated the "board."

78693. Solely for the purpose of authorizing the issuance and sale,
pursuant to the State General Obligation Bond Law, of the bonds
authorized by this division, the Safe, Clean, Reliable Water Supply
Finance Committee is hereby created. For purposes of this division,
the Safe, Clean, Reliable Water Supply Finance Committee is the
"committee" as that term is used in the State General Obligation Bond
Law. The committee consists of the Treasurer, the Controller, and
the Director of Finance, or their designated representatives. A
majority of the committee may act for the committee.

78694. The committee shall determine whether or not it is necessary
or desirable to issue bonds authorized pursuant to this division in
order to carry out the actions specified in this division 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.

78695. 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. 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.

78696. Notwithstanding Section 13340 of the Government Code, there
is hereby appropriated from the General Fund in the State Treasury,
for the purposes of this division, 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 division, as the
principal and interest become due and payable.
(b) The sum necessary to carry out Section 78697, appropriated
without regard to fiscal years.

78697. For the purposes of carrying out this division, the Director
of Finance may authorize the withdrawal from the General Fund of an
amount 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 division. Any amount withdrawn shall be deposited in the
fund. Any money made available under this section shall be returned
to the General Fund, plus an amount equal to the interest that the
money would have earned in the Pooled Money Investment Account, from
money received from the sale of bonds for the purpose of carrying out
this division.

78698. 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.

78699. The State Water Resources Control 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 division. The amount of
the request shall not exceed the amount of the unsold bonds which the
committee, by resolution, has authorized to be sold for the purpose
of carrying out this division. The State Water Resources Control
Board shall execute any 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 State Water
Resources Control Board in accordance with this division.

78700. 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 of the Government Code, which is a part of the State
General Obligation Bond Law. Approval by the voters of the state for
the issuance of the bonds described in this division includes the
approval of the issuance of any bonds issued to refund any bonds
originally issued or any previously issued refunding bonds.

78701. Notwithstanding any provision of this division or the State
General Obligation Bond Law, if the Treasurer sells bonds pursuant to
this division 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 investment of bond proceeds and
the investment earnings on those proceeds. The Treasurer may use or
direct the use of those proceeds or earnings to pay any rebate,
penalty, or other payment required under federal law or to take any
other action with respect to the investment and use of bond proceeds
required or desirable under federal law 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.

78702. The Legislature hereby finds and declares that, inasmuch as
the proceeds from the sale of bonds authorized by this division 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.