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.
Chapter 10Fiscal Provisions
Section § 79210
This section authorizes the issuance and sale of bonds up to $1.97 billion, not counting any additional bonds issued to refund previous ones. These bonds aim to finance specific purposes stated in this division and repay certain revolving funds. They are a legal obligation of California, meaning the state's full financial support is promised to ensure the bondholders are paid both the principal and interest when due.
bonds issuance funding purposes bond reimbursement General Obligation Bond Expense Revolving Fund State of California obligation financial support bond principal payment interest payment state credit pledge refunding bonds bond sales California financial obligation public finance debt issuance bondholders payment
Section § 79211
This section explains how bonds, which are a way for the state to borrow money for certain projects, should be handled in accordance with the State General Obligation Bond Law. It states that all procedures related to these bonds, like issuing and repaying them, follow this existing law except for one specific part (Section 16727). Additionally, it designates specific state agencies as the responsible bodies ('board') for managing funds from the Safe Drinking Water, Clean Water, Watershed Protection, and Flood Protection Bond Fund.
(a)CA Water Code § 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)CA Water Code § 79211(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.”
bonds state agency Safe Drinking Water Clean Water Watershed Protection Flood Protection bond fund management State General Obligation Bond Law appropriation bond execution bond issuance bond redemption State General Obligation Bonds fund administration public finance
Section § 79212
This section establishes the Safe Drinking Water, Clean Water, Watershed Protection, and Flood Protection Finance Committee specifically to manage the issuance and sale of bonds under the State General Obligation Bond Law. The committee includes the Treasurer, Controller, and Director of Finance, or their representatives, and a majority is needed to make decisions.
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.
bond issuance finance committee Safe Drinking Water Clean Water Watershed Protection Flood Protection State General Obligation Bond Law Treasurer Controller Director of Finance bond sale committee members environmental bonds water protection funding government finance
Section § 79213
This law explains that a committee decides if and when to issue and sell bonds to fund specific projects. They determine how much money is needed and may sell bonds in phases, rather than all 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.
committee decision bond issuance project funding bond sale phases financial determination progressive bond sales funding projects authorized bonds public financing incremental bond issues
Section § 79214
This law states that each year, additional money must be collected alongside regular state revenue to pay off bond debts. It is the responsibility of all officers involved in revenue collection to ensure this extra amount is collected.
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.
state revenue collection bond payments principal and interest additional sum debt repayment revenue officers annual collection state financial obligations collection duties state bonds payment public debt management tax collection fiscal responsibility revenue enforcement tax officers
Section § 79215
This law ensures that California's General Fund will cover certain expenses for water resource projects. It specifically guarantees payment for the principal and interest on bonds related to these projects when they are due. Additionally, it allocates the necessary funds to implement another specific provision, Section 79216, without being limited by fiscal year constraints.
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 § 79215(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 § 79215(b) The sum necessary to carry out Section 79216, appropriated without regard to fiscal years.
water resource projects bond payments principal and interest General Fund appropriation funding allocation fiscal year flexibility budget provisions Section 79216 government financing state treasury payments
Section § 79216
This law allows the Director of Finance to take money from the General Fund up to the total value of unsold bonds approved for sale. This money must be deposited into a specific fund to support the objectives of this law. Eventually, the withdrawn funds, along with the interest it would have earned, must be returned to the General Fund once the bonds are sold.
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.
Director of Finance General Fund withdrawal unsold bonds fund deposit bond sales interest return Pooled Money Investment Account bond proceeds financial management funding allocation government finance
Section § 79217
This law states that any money made from the premiums and interest earned on bonds will be kept in a specific fund. This money is earmarked to help pay down the state's bond interest costs by moving it to the General Fund when needed.
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.
bond premiums accrued interest fund transfer General Fund credit to expenditures bond interest financial management state funds money allocation interest on bonds fiscal policy budgetary fund management
Section § 79218
This law allows agencies managing funds for safe drinking water and environmental protection to ask for loans from a special state investment account. The loan amount can't be more than the unsold bonds available for these purposes. Agencies must fill out necessary paperwork to get and repay the loan, and any borrowed money must go into the fund to use as intended.
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.
Safe Drinking Water Clean Water Watershed Protection Flood Protection Bond Fund Pooled Money Investment Board loan request unsold bonds fund allocation state investment account Government Code 16312 loan repayment environmental protection agency funding investment loans
Section § 79219
This law says that bonds can be refinanced or "refunded" under certain rules outlined in a specific section of the state's General Obligation Bond Law. When voters in California approve the issuance of these bonds, they also approve the potential future issuance of other bonds that might be needed to refinance the original ones or any bonds that were previously refinanced. This means voters give consent for both the initial and any necessary future refinancing bonds with one vote.
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.
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Section § 79220
This section allows the Treasurer to take specific actions when selling bonds that come with a legal opinion stating interest on them is tax-exempt federally. The Treasurer can keep separate accounts for the money from selling these bonds and the earnings from investing that money. The Treasurer can then use the money to meet federal requirements, ensure the bonds stay tax-exempt, and gain any other benefits under federal law.
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.
treasurer bonds tax-exempt bonds federal tax exclusion bond counsel opinion separate accounts investment proceeds rebate payments penalty payments federal law compliance investment earnings tax-exempt status bond proceeds maintaining tax-exemption financial advantage
Section § 79221
This section explains that the money raised from selling bonds under this specific division isn't considered as "proceeds of taxes" according to the California Constitution. As a result, spending this bond money doesn't have to follow the usual restrictions that apply to tax money.
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.
bond sales proceeds of taxes California Constitution Article XIII B spending limitations budget restrictions bond proceeds tax limitations financial disbursement legislative findings public finance constitutional interpretation expenditure guidelines non-tax revenue budget law fiscal policy
Section § 79222
This section redirects funds from previously authorized bonds to support specific new projects. A total of $34 million, originally earmarked under Section 79157, and $52 million from Section 79195, are now assigned to projects outlined in Division 26.7, starting with Section 79700. These projects will proceed with the reallocated funds.
Notwithstanding any other law, thirty-four million dollars ($34,000,000) of the unissued bonds authorized for the purposes of Section 79157, and fifty-two million dollars ($52,000,000) of the unissued bonds authorized for the purposes of Section 79195 are reallocated to finance the purposes of, and shall be authorized, issued, and appropriated in accordance with, Division 26.7 (commencing with Section 79700).
bond reallocation unissued bonds Section 79157 Section 79195 Division 26.7 Section 79700 California water projects funding redirection environmental projects financing state bonds project funding water resources fiscal appropriation
