Bonds in the total amount of five billion three hundred and eighty eight million dollars ($5,388,000,000), not including the amount of any refunding bonds issued in accordance with Section 75088, or so much thereof as is necessary, may be issued and sold to be used for carrying out the purposes set forth 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 bond proceeds shall be deposited in the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Fund of 2006 created by Section 75009. 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 they become due and payable.
Chapter 11Fiscal Provisions
Section § 75080
This section allows California to issue and sell bonds totaling up to over $5.3 billion to fund water and environmental projects. These bonds will be placed in the Safe Drinking Water fund and are guaranteed by the state, ensuring repayment with interest. Any costs related to these bonds can also be reimbursed from a specific government fund.
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Section § 75081
This law section states that bonds authorized by this division must follow the rules outlined in the State General Obligation Bond Law. It means that the entire legal framework applicable to state general obligation bonds, including preparation, execution, sale, payment, and redemption processes, is automatically applied to these bonds by reference.
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 provisions of that law shall apply to the bonds and to this division and are hereby incorporated in this division by this reference as though fully set forth in this division.
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Section § 75082
This law sets up a specific finance committee called the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Finance Committee to manage the issuance and sale of certain bonds. These are general obligation bonds under state law, and the committee includes key financial officials like the Controller, the Director of Finance, and the Treasurer, with the Treasurer as the chairperson.
The committee can act with a majority agreement. Additionally, within the context of this law and the bond law, the role of 'the board' is assigned to the secretary.
(a)CA Public Resources Code § 75082(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 division, the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Finance Committee is hereby created. For purposes of this division, the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Finance Committee is “the committee” as that term is used by the State General Obligation Bond Law. The committee shall consist of the Controller, the Director of Finance, and the Treasurer, or their designated representatives. The Treasurer shall serve as chairperson of the committee. A majority of the committee may act for the committee.
(b)CA Public Resources Code § 75082(b) For purposes of this chapter and the State General Obligation Bond Law, the secretary is designated as “the board.”
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Section § 75083
This law explains that a committee has the responsibility to decide if it should issue bonds to support the actions outlined in this division. If it decides to move forward, the committee also needs to determine how many bonds to sell. The law allows for multiple rounds of bond sales, so they don't need to sell all the bonds at once.
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.
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Section § 75084
This law section requires the collection of additional money every year, alongside regular state revenue. This extra sum is specifically needed to cover the payments for principal and interest on bonds that are due each year. It's the responsibility of all relevant officials to ensure this money is collected by performing any tasks necessary to do so.
There shall be collected annually 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 maturing 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 so and perform each and every act that is necessary to collect that additional sum.
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Section § 75085
This law sets aside money from California's General Fund to cover two main things: first, the annual payments needed for the principal and interest on bonds that are part of this division; and second, the funds required to implement Section 75086, without being restricted by fiscal years.
Notwithstanding Section 13340 of the Government Code, there is hereby appropriated from the General Fund, for purposes of this division, an amount that will equal the total of the following:
(a)CA Public Resources Code § 75085(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)CA Public Resources Code § 75085(b) The sum which is necessary to carry out the provisions of Section 75086, appropriated without regard to fiscal years.
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Section § 75086
This law allows the Director of Finance to temporarily move money from California's General Fund to a specific fund associated with unsold bonds. The amount moved cannot exceed the total amount of these unsold bonds. Once the bonds are sold, the borrowed money must be repaid to the General Fund, along with any interest that would have been earned if the money had remained in the Pooled Money Investment Account.
For the purposes of carrying out this division, 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 that have been authorized to be sold for the purpose of carrying out this division. 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 that would otherwise be deposited in that fund.
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Section § 75087
This law states that all money earned from the premium and interest on bonds that are sold must be set aside. This money can then be transferred to the General Fund to cover costs related to bond interest payments.
All money derived from premium and accrued interest on bonds sold shall be reserved and shall be available for transfer to the General Fund as a credit to expenditures for bond interest.
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Section § 75088
This law allows for the bonds that are issued or sold under this division to be refunded by issuing new refunding bonds, following specific government procedures. Additionally, when voters approve the original issuance of bonds, it automatically includes their approval for any future refunding bonds that may be issued to replace them.
Any bonds issued or sold pursuant to this division may be refunded by the issuance of refunding bonds 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. Approval by the electors of the state for the issuance of the bonds shall include approval of the issuance of any bonds issued to refund any bonds originally issued or any previously issued refunding bonds.
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Section § 75089
This law section states that $105 million from unissued bonds, previously authorized for a certain purpose, will now be redirected to focus on clean water projects as outlined in another section of the Water Code. This reprioritization of funds will be distributed proportionally from the different bond allocations within the division.
Notwithstanding any other law, one hundred five million dollars ($105,000,000) of the unissued bonds authorized for the purposes of this division are reallocated for the purposes of, and shall be authorized, issued, and appropriated in accordance with, Division 26.7 (commencing with Section 79700) of the Water Code.
The funds available for reallocation shall be made on a pro-rata basis from each bond allocation of this division.
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Section § 75089.5
This section reallocates funds from unissued bonds previously authorized for specific purposes. It's moving $12,000,000, $315,000, and $4,328,000 to be used in accordance with another division (Division 45), starting with Section 80000. This means the money will now be spent on the new purposes outlined in that division, despite what other laws might say.
Notwithstanding any other law, twelve million dollars ($12,000,000) of the unissued bonds authorized for the purpose of subdivision (a) of Section 75063, three hundred fifteen thousand dollars ($315,000) of the unissued bonds authorized for the purposes of subdivision (b) of Section 75063, and four million three hundred twenty-eight thousand dollars ($4,328,000) of the unissued bonds authorized for the purposes of subdivision (b) of Section 75065 are reallocated to finance the purposes of, and shall be authorized, issued, and appropriated in accordance with, Division 45 (commencing with Section 80000).
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Section § 75090
This law declares that the money from selling specific bonds in California isn't considered 'tax revenue' under a certain part of the California Constitution. Therefore, spending this bond money isn't restricted by the usual limits on tax money spending.
The people of California hereby find and declare 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 limitation imposed by that article.
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