SECTIONS 79210-79221 - California Statutes

WATER CODE

SECTION 79210-79221

79210. Bonds in the total amount of one billion nine hundred
seventy million dollars ($1,970,000,000), not including the amount of
any refunding bonds issued in accordance with Section 79219, 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
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 the principal of, and interest on, the bonds as the
principal and interest become due and payable.

79211. (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),
except Section 16727, 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, each
state agency that administers an appropriation of the Safe Drinking
Water, Clean Water, Watershed Protection, and Flood Protection Bond
Fund is designated the "board."

79212. 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 Drinking Water, Clean Water,
Watershed Protection, and Flood Protection Finance Committee is
hereby created. For purposes of this division, the Safe Drinking
Water, Clean Water, Watershed Protection, and Flood Protection
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.

79213. 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.

79214. 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
that is necessary to collect that additional sum.

79215. 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 79216, appropriated
without regard to fiscal years.

79216. 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 that 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
proceeds received from the sale of bonds for the purpose of carrying
out this division.

79217. 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.

79218. The agency that administers an appropriation of the Safe
Drinking Water, Clean Water, Watershed Protection, and Flood
Protection Bond Fund 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 purpose of
carrying out this division. The amount of the request shall not
exceed the amount of the unsold bonds that the committee, by
resolution, has authorized to be sold for the purpose of carrying out
this division. The requesting agency 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 requesting agency in accordance with this division.

79219. 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 other bonds issued to refund any
bonds originally issued under this division or any previously issued
refunding bonds.

79220. 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
for 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 those 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 that state.

79221. 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.