This section authorizes California to issue and sell up to $7.12 billion in bonds to fund projects outlined in a specific division of state law. These bonds are a binding promise from the state that they will repay the bondholders, backed by California's full faith and credit, which means the state guarantees payment on time. The State Treasurer is responsible for selling these bonds based on terms set by a governing committee.
(a)CA Water Code § 79785(a) Bonds in the total amount of seven billion one hundred twenty million dollars ($7,120,000,000), and any additional bonds authorized, issued, and appropriated in accordance with this division pursuant to other provisions of law, or so much thereof as is necessary, not including the amount of any refunding bonds issued in accordance with Section 79797 may be issued and sold to provide a fund to be used for carrying out the purposes expressed in this division and 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.
(b)CA Water Code § 79785(b) The Treasurer shall sell the bonds authorized by the committee pursuant to this section. The bonds shall be sold upon the terms and conditions specified in a resolution to be adopted by the committee pursuant to Section 16731 of the Government Code.
bonds issuance funding projects California state bonds General Obligation Bond Expense Revolving Fund bond payment guarantee State Treasurer role bond sale conditions reimbursement bond proceeds state finance public debt interest payment economic development funding financial obligation government borrowing
(Added by Stats. 2014, Ch. 188, Sec. 8. (AB 1471) Approved in Proposition 1 at the November 4, 2014, election.)
This law section explains that the process for handling bonds in this division follows the rules of the State General Obligation Bond Law. It includes guidance on preparing, issuing, selling, paying, and redeeming bonds. All parts of the bond law apply, except for specific exceptions that conflict with other rules in this division.
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, as that law may be amended, apply to the bonds and to this division, except subdivisions (a) and (b) of Section 16727 of the Government Code to the extent that those subdivisions conflict with any
other provision of this division.
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(Added by Stats. 2014, Ch. 188, Sec. 8. (AB 1471) Approved in Proposition 1 at the November 4, 2014, election.)
This section establishes the Water Quality, Supply, and Infrastructure Improvement Finance Committee to handle the issuance and sale of certain state bonds for water projects. This committee includes the Director of Finance, the Treasurer, and the Controller, although members can send representatives in their place. The Treasurer serves as the chair of the committee, and a majority is needed to make decisions.
(a)CA Water Code § 79787(a) Solely for the purpose of authorizing the issuance and sale pursuant to 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) of the bonds authorized by this division, the Water Quality, Supply, and Infrastructure Improvement Finance Committee is hereby created. For purposes of this division, the Water Quality, Supply, and Infrastructure Improvement Finance Committee is the
“committee” as that term is used in the State General Obligation Bond Law.
(b)CA Water Code § 79787(b) The committee consists of the Director of Finance, the Treasurer, and the Controller. Notwithstanding any other provision of law, any member may designate a representative to act as that member in his or her place for all purposes, as though the member were personally present.
(c)CA Water Code § 79787(c) The Treasurer shall serve as chairperson of the committee.
(d)CA Water Code § 79787(d) A majority of the committee may act for the committee.
Water Quality Improvement Infrastructure Finance Committee State General Obligation Bond Director of Finance Treasurer Controller bond issuance bond sale committee majority Water Supply Infrastructure Improvement Finance Committee
(Added by Stats. 2014, Ch. 188, Sec. 8. (AB 1471) Approved in Proposition 1 at the November 4, 2014, election.)
This law allows a committee to decide if it's necessary or beneficial to issue bonds to support certain projects. If bonds are needed, the committee determines the amount and can issue them in stages instead of all at once.
The committee shall determine whether or not it is necessary or desirable to issue bonds authorized by 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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(Added by Stats. 2014, Ch. 188, Sec. 8. (AB 1471) Approved in Proposition 1 at the November 4, 2014, election.)
This section clarifies that in the context of the State General Obligation Bond Law, the term 'board' specifically refers to the secretary as defined in Section 16722 of the Government Code.
For purposes of the State General Obligation Bond Law, “board,” as defined in Section 16722 of the Government Code, means the secretary.
State General Obligation Bond Law board definition secretary role Section 16722 Government Code interpretation bond authority state finance terminology California water statutes bond law terms financial governance state roles designation legal terminology clarification public finance management bond law context definition of board
(Added by Stats. 2014, Ch. 188, Sec. 8. (AB 1471) Approved in Proposition 1 at the November 4, 2014, election.)
This law mandates that, on top of regular state revenues, extra funds must be collected every year to pay the main amount (principal) and the interest on state bonds. These funds must be collected at the same time and in the same way as other state revenues. All state officers involved in revenue collection must ensure these additional funds are collected properly.
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.
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(Added by Stats. 2014, Ch. 188, Sec. 8. (AB 1471) Approved in Proposition 1 at the November 4, 2014, election.)
This law specifies funding from California's General Fund to cover costs related to specific water-related projects or obligations. The state will provide the needed money each year to pay off both the principal and interest on bonds that have been issued under this particular division. Additionally, it funds other specified projects without needing to follow the usual annual budget cycle.
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)CA Water Code § 79791(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 Water Code § 79791(b) The sum that is necessary to carry out the provisions of Section 79794, appropriated without regard to fiscal years.
General Fund appropriation bond payments principal and interest water projects funding Section 79794 annual funding fiscal year exemption bonds issued state treasury California water projects
(Added by Stats. 2014, Ch. 188, Sec. 8. (AB 1471) Approved in Proposition 1 at the November 4, 2014, election.)
This law states that the board can ask for a loan from a specific investment account to help carry out certain tasks, as long as they don't exceed the value of unsold bonds that are already approved to be sold. These actions must follow the rules in a different section of government code. The board must also fill out any necessary paperwork to secure and repay the loan, which will be added to a designated fund for specific uses outlined in related regulations.
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 purpose of carrying out this division less any amount withdrawn pursuant to Section 79794. The amount of the request shall not exceed the amount of the unsold bonds that the committee has, by resolution, authorized to be sold for the purpose of carrying out this division. 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 in accordance with this division.
Pooled Money Investment Board Pooled Money Investment Account unsold bonds loan request Government Code Section 16312 authorized bonds sale loan documentation repayment fund allocation financial management public funds usage investment account loan board responsibilities water management division
(Added by Stats. 2014, Ch. 188, Sec. 8. (AB 1471) Approved in Proposition 1 at the November 4, 2014, election.)
If the state sells bonds that qualify for federal tax benefits, like tax-exempt interest, the Treasurer can manage the funds from these bonds in special accounts. These funds and their earnings can then be used for necessary federal tax-related payments or actions to keep the bonds' tax-exempt status and obtain any other federal tax advantages.
Notwithstanding any other provision of this division, or of the State General Obligation Bond Law, if the Treasurer sells bonds 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 or is otherwise entitled to any federal tax advantage, 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, 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.
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(Added by Stats. 2014, Ch. 188, Sec. 8. (AB 1471) Approved in Proposition 1 at the November 4, 2014, election.)
This law allows the Director of Finance to take money from the General Fund, up to the amount of unsold bonds approved for sale, to support specific projects. This amount should be reduced by any borrowed money under a different section. The funds taken must be put back into the General Fund with interest, using money from bond sales later on.
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 by the committee to be sold for the purpose of carrying out this division less any amount borrowed pursuant to Section 79792. Any amounts withdrawn shall be deposited in the fund. Any moneys made available under this section shall be returned to the General Fund, with
interest at the rate earned by the moneys in the Pooled Money Investment Account, from proceeds received from the sale of bonds for the purpose of carrying out this division.
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(Added by Stats. 2014, Ch. 188, Sec. 8. (AB 1471) Approved in Proposition 1 at the November 4, 2014, election.)
This law outlines how money from premiums and interest on certain bonds should be handled. The money goes into a fund and is mainly used to offset bond interest costs by transferring it to the General Fund. However, the money from premiums can also be used to cover the costs of issuing the bonds before it's transferred to the General Fund.
All moneys deposited in the fund that are derived from premium and accrued interest on bonds sold pursuant to this division shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest, except that amounts derived from premium may be reserved and used to pay the cost of bond issuance prior to any transfer to the General Fund.
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(Added by Stats. 2014, Ch. 188, Sec. 8. (AB 1471) Approved in Proposition 1 at the November 4, 2014, election.)
This law states that the expenses related to issuing bonds will be covered by the money raised from selling those bonds, including any extra fees (called premiums). If these costs are not fully covered by the premiums, then each program that gets funding from the bond sale will share the remaining costs equally.
Pursuant to Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code, the cost of bond issuance shall be paid out of the bond proceeds, including premium, if any. To the extent the cost of bond issuance is not paid from premiums received from the sale of bonds, these costs shall be shared proportionately by each program funded through this division by the applicable bond sale.
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(Added by Stats. 2014, Ch. 188, Sec. 8. (AB 1471) Approved in Proposition 1 at the November 4, 2014, election.)
This section talks about refunding bonds that were originally issued under a specific division. If voters approve these bonds, that approval also covers any future bonds issued to refund the original bonds or any prior refunding bonds. It operates under the guidelines of a state law specific to general obligation bonds.
The bonds issued and sold pursuant to this division 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 under this division shall include approval of the issuance of any bonds issued to refund any bonds originally issued under this division or any previously issued
refunding bonds.
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(Added by Stats. 2014, Ch. 188, Sec. 8. (AB 1471) Approved in Proposition 1 at the November 4, 2014, election.)
This law states that when bonds are sold under this division, the money made from those sales isn't considered tax money. Because of this, the way the money is spent doesn't have to follow the usual rules that apply to tax revenue.
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, and the disbursement of these proceeds is not subject to the limitations imposed by that article.
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(Added by Stats. 2014, Ch. 188, Sec. 8. (AB 1471) Approved in Proposition 1 at the November 4, 2014, election.)
