This chapter shall be known and may be cited as the California Safe Drinking Water Bond Law of 1976.
Chapter 10.5California Safe Drinking Water Bond Law of 1976
Section § 13850
This section establishes the official name of this law as the California Safe Drinking Water Bond Law of 1976. It's essentially a naming provision for future reference.
Safe Drinking Water Bond Law 1976 California water bonds clean water initiatives water quality funding water infrastructure public health protection environmental law state water resources water supply funding drinking water safety bond measures legislative naming water policy
Section § 13851
This law emphasizes the importance of ensuring that water used in homes is safe, clean, and suitable for drinking. It highlights the need for water to be available in ample amounts and at adequate pressure to meet health and cleanliness needs.
The Legislature hereby finds and declares that it is necessary for the preservation of the health, safety, and welfare of the people of California that water supplied for domestic purposes be pure, wholesome, and potable and does not endanger the health or lives of human beings and that water is available in adequate quantity at sufficient pressure for health, cleanliness, and other domestic purposes.
domestic water supply safe drinking water health standards water quality wholesome water potable water water pressure public health safety water availability clean water water supply requirements adequate quantity health and cleanliness
Section § 13854
This law states that many domestic water systems in California aren't up to health standards, which affects the safety and quality of water people use at home. To address this, California aims to provide technical and financial assistance. The goal is to ensure that residents have access to safe, reliable, and sufficient water supplies for their daily needs.
The Legislature further finds and declares that a number of domestic water supply systems are inadequate and do not meet minimum bacteriological, chemical, or other basic health standards for domestic water supplies, and that it is in the interest of the people that the State of California provide technical and financial assistance to the end that the people of California are assured a safe, dependable, and potable supply of water for domestic purposes and that water is available in adequate quantity at sufficient pressure for health, cleanliness, and other domestic purposes.
domestic water supply bacteriological standards chemical standards health standards technical assistance financial assistance potable water water quality safe drinking water adequate water pressure water supply systems California water assistance
Section § 13855
This section expresses the intention of the lawmakers to ensure that domestic water supply systems are improved to meet minimum health and safety standards. These standards are detailed in another part of the Health and Safety Code.
The Legislature further finds and declares that it is the intent of the Legislature to provide for the upgrading of domestic water supply systems to assure that all domestic water supplies at least meet minimum domestic water supply standards established under Chapter 4 (commencing with Section 116275) of Part 12 of Division 104 of the Health and Safety Code.
domestic water supply water quality standards upgrade water systems minimum domestic water standards Health and Safety Code safe drinking water water supply improvement water quality compliance public health water system regulations
Section § 13856
This law outlines the rules for issuing and managing bonds under a specific chapter. It incorporates the State General Obligation Bond Law but modifies it by allowing the State Treasurer to set interest rates with committee approval. Bonds can have a maturity period of up to 50 years.
The State General Obligation Bond Law is adopted for the purpose of the issuance, sale, and repayment of, and otherwise providing with respect to, the bonds authorized to be issued by this chapter, and the provisions of that law are included in this chapter as though set out in full in this chapter, except that notwithstanding anything in the State General Obligation Bond Law, the bonds authorized hereunder shall bear such rates of interest, or maximum rates, as may from time to time be fixed by the State Treasurer, with the approval of the committee, and the maximum maturity of bonds shall not exceed 50 years from the date of the bonds, or from the date of each respective series. The maturity of each respective series shall be calculated from the date of such series.
bond issuance State Treasurer interest rates maturity period committee approval bond repayment financial regulations 50-year maturity limit General Obligation Bonds bond sale procedures maximum interest rates state bonds public finance series maturity date
Section § 13857
This section defines terminology related to providing and managing safe drinking water in California. It clarifies that a 'Committee' oversees water finance, operating under the Department of Water Resources. A 'domestic water system' refers to any piped water service with certain minimum service connections that provides water for human consumption. The 'Fund' mentioned supports safe drinking water initiatives. 'Suppliers' are entities managing these water systems, which may receive 'federal assistance' for system improvements. 'Treatment works' are any systems ensuring water is safe for consumption, and a 'Project' is any construction or upgrade work related to water systems.
As used in this chapter, and for purposes of this chapter as used in the State General Obligation Bond Law, the following words shall have the following meanings:
(a)CA Water Code § 13857(a) “Committee” means the Safe Drinking Water Finance Committee, created by Section 13858.
(b)CA Water Code § 13857(b) “Department” means the Department of Water Resources.
(c)CA Water Code § 13857(c) “Domestic water system” means a system for the provision to the public of piped water for human consumption, if such system has at least 15 service connections or regularly supplies water to at least 25 individuals. Such term includes any water supply, treatment, storage, and distribution facilities under the control of the operator of such system.
(d)CA Water Code § 13857(d) “Fund” means the California Safe Drinking Water Fund.
(e)CA Water Code § 13857(e) “Supplier” or “supplier of water” means any person, partnership, corporation, association or other entity or political subdivision of the state which owns or operates a domestic water system.
(f)CA Water Code § 13857(f) “Federal assistance” means funds available or which may become available to a supplier either directly or through allocation by the state, from the federal government as grants or loans for the improvement of domestic water systems.
(g)CA Water Code § 13857(g) “Treatment works” means any devices or systems used in the treatment of water supplies, including necessary lands, which render such supplies pure, wholesome, and potable for domestic purpose.
(h)CA Water Code § 13857(h) “Project” means proposed facilities for the construction, improvement, or rehabilitation of the domestic water system, and may include water supply, treatment works, and all or part of a water distribution system, if such inclusions are necessary to carry out the purpose of this chapter.
Safe Drinking Water Finance Committee Department of Water Resources domestic water system California Safe Drinking Water Fund water supplier federal assistance water treatment works water supply improvement water system construction water distribution facilities water system rehabilitation piped water for consumption public water supply water system grants water infrastructure projects
Section § 13858
This law establishes the Safe Drinking Water Finance Committee in California. The committee includes high-level state officials like the Governor and key directors responsible for finance, water resources, and health services. The committee can make decisions based on a majority vote.
The Safe Drinking Water Finance Committee is hereby created. The committee shall consist of the Governor, the State Treasurer, the Director of Finance, the Director of Water Resources, and the State Director of Health Services or their designated representatives. A majority of the committee may act for the committee.
Safe Drinking Water Finance Committee Governor State Treasurer Director of Finance Director of Water Resources State Director of Health Services committee members majority vote designated representatives
Section § 13859
This law establishes the California Safe Drinking Water Fund in the State Treasury.
There is in the State Treasury the California Safe Drinking Water Fund which fund is hereby created.
California Safe Drinking Water Fund state treasury fund creation safe drinking water water safety fund California water resources state funding for water water fund establishment water quality public health water fund
Section § 13860
This law allows a committee to create debts or liabilities for the State of California, up to $172.5 million. The money will be used for specific projects or purposes outlined in another section, Section 13861.
The committee is hereby empowered to create a debt or debts, liability or liabilities, of the State of California, in an aggregate amount of one hundred seventy-two million five hundred thousand dollars ($172,500,000) in the manner provided in this chapter. This debt or debts, liability or liabilities, shall be created for the purpose of providing the fund to be used for the objects and works specified in Section 13861.
debt creation state liabilities funding projects state funding public works financial management appropriations California state debt Section 13861 debt limit public financing infrastructure funding government spending committee authority fund creation
Section § 13861
This section explains how funds are used to help suppliers of domestic water systems construct projects that meet safe drinking water standards. It allows the department to provide loans to these suppliers, covering eligible construction costs, which must be repaid over up to 50 years with interest and fees. Suppliers must also seek federal assistance and ensure proper operation of the project. Additionally, the law provides for grants up to $30 million for suppliers unable to meet standards, particularly for systems contaminated by hazardous compounds. However, grants are limited, and unutilized funds may revert to loans.
(a)CA Water Code § 13861(a) The moneys in the fund are hereby continuously appropriated and shall be used for the purposes set forth in this section.
(b)CA Water Code § 13861(b) The department is authorized to enter into contracts with suppliers having authority to construct, operate, and maintain domestic water systems, for loans to the suppliers to aid in the construction of projects that will enable the supplier to meet, at a minimum, safe drinking water standards established pursuant to Chapter 4 (commencing with Section 116275) of Part 12 of Division 104 of the Health and Safety Code.
(c)CA Water Code § 13861(c) Any contract pursuant to this section may include provisions as may be agreed upon by the parties thereto, and the contract shall include, in substance, the following provisions:
(1)CA Water Code § 13861(c)(1) An estimate of the reasonable cost of the project.
(2)CA Water Code § 13861(c)(2) An agreement by the department to loan to the supplier, during the progress of construction or following completion of construction as may be agreed upon by the parties, an amount that equals the portion of construction costs found by the department to be eligible for a state loan.
(3)CA Water Code § 13861(c)(3) An agreement by the supplier to repay the state, (i) over a period not to exceed 50 years, (ii) the amount of the loan, (iii) the administrative fee as described in Section 13862, and (iv) interest on the principal, that is the amount of the loan plus the administrative fee.
(4)CA Water Code § 13861(c)(4) An agreement by the supplier, (i) to proceed expeditiously with, and complete, the project, (ii) to commence operation of the project upon completion thereof, and to properly operate and maintain the project in accordance with the applicable provisions of law, (iii) to apply for and make reasonable efforts to secure federal assistance for the project, (iv) to secure approval of the department and of the State Department of Health Services before applying for federal assistance in order to maximize and best utilize the amounts of the assistance available, and (v) to provide for payment of the supplier’s share of the cost of the project, if any.
(d)CA Water Code § 13861(d) By statute, the Legislature may authorize bond proceeds to be used for a grant program, with grants provided to suppliers that are political subdivisions of the state, if it is determined that the suppliers are otherwise unable to meet minimum safe drinking water standards established pursuant to Chapter 4 (commencing with Section 116275) of Part 12 of Division 104 of the Health and Safety Code. The total amount of grants shall not exceed thirty million dollars ($30,000,000), of which up to fifteen million dollars ($15,000,000) may be used for grants for projects for the construction, improvement, or rehabilitation of domestic water systems that have become contaminated by organic or inorganic compounds (such as nitrates, DBCP (dibromochloropropane), TCE (trichloroethylene), and arsenic), or radiation, in amounts as to render the water unfit or hazardous for human consumption, and no one supplier may receive more than four hundred thousand dollars ($400,000) in total. Any of the moneys made available pursuant to this subdivision, for grants for projects, that have not been encumbered within two years after the effective date of amendments to this subdivision made by Assembly Bill No. 2404 of the 1979–80 Regular Session shall be available only for loans pursuant to this section.
The Legislative Analyst shall review the grant programs and report to the Legislature not later than February 1, 1981.
domestic water systems safe drinking water standards funds appropriation construction project loans project eligibility loan repayment terms federal assistance requirements contaminated water systems grant limitations bond proceeds contaminants project deadlines funding limits supplier obligations federal law compliance
Section § 13862
This law sets a limit on how much money the department can spend on overseeing the provisions in this chapter to no more than 3% of the total bond amount they can issue. It also requires the department to charge suppliers fees to cover the state's costs for managing these operations. An amendment made during the 1981-82 legislative session clarifies the existing law rather than changing it.
For the purpose of administering this chapter, the total expenditures of the department and the State Department of Health Services may not exceed 3 percent of the total amount of the bonds authorized to be issued under this chapter. The department shall establish a reasonable schedule of administrative fees, which fees shall be paid by the supplier pursuant to Section 13861, to reimburse the state for the costs of state administration of this chapter.
The amendment to this section enacted at the 1981–82 Regular Session of the Legislature does not constitute a change in, but is declaratory of, the existing law.
administrative fees supplier fees bond expenditure limit state administration costs 1981-82 legislative amendment reimbursement to state cost management state oversight bond issuance financial regulations state department expenditures fiscal responsibility
Section § 13863
Money from the fund should be used to repay the General Obligation Bond Expense Revolving Fund as outlined in another part of the government rules.
As much of the moneys in the fund as may be necessary shall be used to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code.
fund reimbursement General Obligation Bond Expense Revolving Fund Government Code 16724.5 repayment financial management bond expenses public funds state reimbursement California government funds monetary allocation state finance public fund usage bond financing government fund management
Section § 13864
This California law section explains that loans can be given for projects related to domestic water systems. These projects can include construction, improvement, or rehabilitation of water systems. The aim is to ensure clean and sufficient water supply for health and daily uses. The State Department of Health Services must deem the project necessary. The maximum loan to any single water supplier is $1.5 million, unless the Legislature decides to increase that limit.
Loans may be made only for projects for domestic water systems. The department may make reasonable allowance for future water-supply needs and may provide for additional capacity when excessive costs would be incurred by later enlargement. Such loans may be made for all or any part of the cost of constructing, improving, or rehabilitating any such system when, in the judgment of the State Department of Health Services, such improvement or rehabilitation is necessary to provide pure, wholesome, and potable water available in adequate quantity at sufficient pressure for health, cleanliness, and other domestic purposes. No loan to an individual supplier shall be more than one million five hundred thousand dollars ($1,500,000), unless the Legislature by an act raises the limit specified in this section.
domestic water systems loan limit construction funding water system improvement water quality State Department of Health Services potable water supply future water needs rehabilitation of water systems legislative approval for increased loans clean water access water supply capacity health and cleanliness water system projects adequate water pressure
Section § 13865
This law section states that when giving out loans, priority should first go to water suppliers facing the most serious public health issues. It also says that preference should be given to suppliers who struggle financially to improve their systems.
First priority for loans shall be given to suppliers with the most critical public health problems. Priority for loans shall also be given to suppliers which have a lesser capability to reasonably finance system improvements.
priority loans water suppliers public health issues critical health problems financial capability system improvements loan eligibility financing water systems financial struggle supplier priority public health priority loan preference water system finance critical health need financial hardship
Section § 13866
This law allows for the repayment of a loan's principal, including an administrative fee, to be delayed for up to 10 years if needed, within a total 50-year repayment period. During this time, interest must still be paid. After the development period, the supplier can pay the deferred principal in annual installments for the rest of the loan term.
Repayment of all or part of the principal, which is the loan plus the administrative fee, may be deferred during a development period not exceeding 10 years within the maximum 50-year repayment period, when in the department’s judgment such development period is justified under the circumstances. Interest on the principal shall not be deferred. Repayment of principal which is deferred during a development period may, at the option of the supplier, be paid in annual installments during the remainder of the loan repayment period.
loan repayment deferred repayment development period administrative fee interest payment annual installments 50-year repayment loan principal supplier option deferment conditions
Section § 13867
This law states that when the department gives out loans under this chapter, they must charge interest. The interest rate is based on the average interest cost the state pays on its general obligation bonds, as calculated by the State Treasurer. If this average isn't a neatly rounded number, the interest rate will be rounded up to the nearest one-tenth of a percent.
The department shall require the payment of interest on each loan that is made pursuant to the provisions of this chapter at a rate equal to the average, as determined by the State Treasurer, of the net interest cost to the state on the sales of general obligation bonds pursuant to the provisions of this chapter. However, when the applicable average of the net interest costs to the state is not a multiple of one-tenth of 1 percent the interest rate shall be at the multiple of one-tenth of 1 percent next above the applicable average of the net interest costs.
loan interest rate State Treasurer general obligation bonds net interest cost interest calculation loan provisions rounded interest rate one-tenth of 1 percent interest rate adjustment financial obligations bond sales government debt financing interest cost determination state loans rounding interest rates
Section § 13868
This law talks about the job of a department in California to set up rules and guidelines to ensure people have access to clean and safe drinking water. They need to inform the public and listen to the State Department of Health Services before setting these rules. The rules will help decide which water projects and suppliers qualify for financial help based on their needs and financial capability. The department should make rules that serve the public's best interest, providing water effectively and economically. They can also deny funding if a project isn't the cheapest and most efficient way to get clean water to people.
The department, after public notice and hearing and with the advice of the State Department of Health Services, shall adopt rules and regulations necessary to carry out the purposes of this chapter. Such regulations shall include, but not be limited to, criteria and procedures for establishing the eligibility of a supplier and a project for assistance commensurate with the need for the project and the ability of the supplier to reasonably finance the project from other sources. It shall be the duty of the department to adopt such rules and regulations as in its judgment will most effectively carry out the provisions of this chapter in the public interest, to the end that the people of California are most efficiently and most economically provided supplies of pure, wholesome, and potable domestic water. Such rules and regulations may provide for the denial of funds when the purposes of this chapter may most economically and efficiently be attained by means other than the construction of the proposed project.
clean drinking water water supplier eligibility project funding criteria State Department of Health Services public interest water project regulations financial assistance domestic water supply economic efficiency public hearings denial of funds pure wholesome water potable water supply project financing rules and regulations
Section § 13868.1
This law requires the State Department of Health Services to inform water suppliers who might qualify for loans about the aims of the loan program and the associated rules they need to follow.
The State Department of Health Services shall notify suppliers that may be eligible for loans pursuant to this chapter of (a) the purposes of this chapter, and (b) the rules and regulations adopted by the department.
State Department of Health Services water suppliers eligible for loans loan program notification rules and regulations loan eligibility water supply program purposes supplier notification water management funding financial assistance regulatory compliance departmental rules loan requirements
Section § 13868.3
This law requires the State Department of Health Services to periodically create a list of suppliers that might receive financial support. This process includes public notice, a hearing, and advice from the department.
The State Department of Health Services, after public notice and hearing and with the advice of the department, shall from time to time establish a priority list of suppliers to be considered for financing.
State Department of Health Services priority list suppliers financing public notice hearing advice financial support water suppliers funding process supplier prioritization financial consideration
Section § 13868.5
This law allows the department to enter into a contract with a water supplier once the project's plans have been approved by the State Department of Health Services and the supplier has been issued a permit or updated permit as required by health and safety regulations.
Upon approval by the State Department of Health Services of project plans submitted by a supplier on the priority list and upon issuance to the supplier of a permit or amended permit as specified in Chapter 4 (commencing with Section 116275) of Part 12 of Division 104 of the Health and Safety Code, the department may enter into a contract with the supplier.
State Department of Health Services approval project plans priority list supplier contract permit issuance amended permit Health and Safety Code water supplier contract conditions supplier permit project approval process health department clearance water project regulations regulatory compliance supplier agreement
Section § 13868.7
This law limits the amount of state loans given for projects to $20 million per calendar quarter. Before approving any contract, the department must ensure that the supplier can repay the loan. Additionally, the Public Utilities Commission can be asked to provide input on whether suppliers have alternative financing options and their ability to repay the loan.
No more than twenty million dollars ($20,000,000) of state loans for projects shall be authorized by the department in a single calendar quarter. No contract shall be approved by the department unless the department finds that the supplier has the capacity to repay the loan amounts specified in the contract.
The Public Utilities Commission shall furnish comments at the request of the department concerning the ability of suppliers subject to their jurisdiction to finance the project from other sources and the ability to repay the loan.
state loans project financing repayment capacity supplier financing loan contract approval Public Utilities Commission input alternative financing sources loan limits financial evaluation repayment assurance supplier jurisdiction financing from other sources quarterly loan cap departmental approval process supplier's financial capability
Section § 13869
This law section states that any state bonds sold are considered valid and legally binding obligations of California. The state's full financial backing is promised for timely payment of these bonds' principal and interest.
California must collect enough money each year alongside regular state revenues to pay these debts. It's the responsibility of revenue officers to ensure this extra money is collected.
Any money made from selling bonds at a premium can be moved to the state's General Fund to help cover bond interest costs.
All bonds herein authorized, which shall have been duly sold and delivered as herein provided, shall constitute valid and legally binding general obligations 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 and interest thereon.
There shall be collected annually in the same manner and at the same time as other state revenue is collected such a sum, in addition to the ordinary revenues of the state, as shall be required to pay the principal and interest on such bonds as herein provided, and it is hereby made the duty of all officers charged by law with any duty in regard to the collection of such revenue, to do and perform each and every act which shall be necessary to collect such additional sum.
All money deposited in the fund which has been derived from premium on bonds sold shall be available for transfer to the General Fund as a credit to expenditures for bond interest.
state bonds general obligations principal and interest purchasing state bonds full faith and credit bond premiums annual revenue collection California debt obligations bond interest payments additional revenue collection state financial backing General Fund transfers premium on bonds revenue collection officers California bond obligations
Section § 13870
This law section explains that any money the state receives from contracts under Section 13861 must go into the General Fund. Once the money is in the fund, it is used to reimburse the General Fund for any payments made on the principal and interest of bonds that were issued under this chapter.
All money repaid to the state pursuant to any contract executed under the provisions of Section 13861 shall be deposited in the General Fund and when so deposited shall be applied as a reimbursement to the General Fund on account of principal and interest on bonds issued pursuant to this chapter which has been paid from the General Fund.
General Fund reimbursement contract payments Section 13861 contracts bond payments principal and interest state repayments fund allocation bonds issued financial management public funds water projects funding
Section § 13871
This law sets aside money from the State Treasury's General Fund for repaying bonds and for other related costs in this chapter. Specifically, it ensures there's enough money each year to pay both the main amount (principal) and interest on these bonds as they come due. It also allocates necessary funds to fulfill the tasks detailed in another related section, and this allocation isn't limited by specific fiscal years.
There is hereby appropriated from the General Fund in the State Treasury for the purpose of this chapter such an amount as will equal the following:
(a)CA Water Code § 13871(a) Such sum annually as will be necessary to pay the principal of and the interest on the bonds issued and sold pursuant to the provisions of this chapter, as such principal and interest become due and payable.
(b)CA Water Code § 13871(b) Such sum as is necessary to carry out the provisions of Section 13872, which sum is appropriated without regard to fiscal years.
General Fund appropriation bond repayment interest payments principal amount Section 13872 California Treasury state bonds annual payment state financial allocation multiyear funding fiscal year independence funding provisions principal and interest state-funded bonds water-related bonds
Section § 13872
This section allows the Director of Finance in California to authorize withdrawals from the General Fund, within certain limits, to fund activities covered under this chapter. Specifically, the Director can allow withdrawals up to the amount of bonds that are planned to be sold in the future, as approved by a resolution. Once the bonds are eventually sold, the money withdrawn must be paid back to the General Fund using the proceeds from the bond sales.
For the purpose of carrying out the provisions of this chapter, the Director of Finance may by executive order authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds which the committee has by resolution authorized to be sold for the purpose of carrying out this chapter. Any amounts withdrawn shall be deposited in the fund and shall be disbursed by the department in accordance with this chapter. Any moneys made available under this section to the department shall be returned by the department to the General Fund from moneys received from the first sale of bonds sold for the purpose of carrying out this chapter subsequent to such withdrawal.
withdrawal from General Fund Director of Finance unsold bonds bond sales deposit in fund disbursement by department return funds executive order finance authorization funding provisions resolution to sell bonds
Section § 13872.5
This law allows the Treasurer to keep separate accounts for certain bonds if selling them keeps the bond interest tax-exempt under federal law. If needed, the Treasurer can use these proceeds to meet federal requirements to maintain their tax-exempt status. This includes paying any necessary penalties or charges under federal law to benefit the state's funds.
Notwithstanding any other provision of this bond act, or of 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), if the Treasurer sells bonds pursuant to this bond act 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, the Treasurer may maintain separate accounts for the bond proceeds invested and 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.
Treasurer bonds tax-exempt federal law bond proceeds investment earnings rebate penalty separate accounts bond counsel opinion tax-exempt status federal tax purposes interest exclusion state funds
Section § 13873
This section explains that when a department requests, the committee must decide if it's necessary to issue bonds to fund certain arrangements. If bonds are needed, the committee decides how much should be issued and sold. Bonds can be issued and sold in stages, rather than all at once.
Upon request of the department, supported by a statement of the proposed arrangements to be made pursuant to Section 13861 for the purposes therein stated, the committee shall determine whether or not it is necessary or desirable to issue any bonds authorized under this chapter in order to make such arrangements, and, if so, the amount of bonds then to be issued and sold. Successive issues of bonds may be authorized and sold to make such arrangements progressively, and it shall not be necessary that all of the bonds herein authorized to be issued shall be sold at any one time.
bonds issuance department request committee decision funding arrangements progressive bond sales financial issuance successive bond issues bond authorization bond selling funding through bonds staged bond issues legal approval for bonds financial arrangements through bonds
Section § 13874
This law section allows the committee to give the State Treasurer permission to sell some or all of the authorized bonds whenever the State Treasurer decides it is the right time.
The committee may authorize the State Treasurer to sell all or any part of the bonds herein authorized at such time or times as may be fixed by the State Treasurer.
State Treasurer bonds bond sale authorization committee approval timing of bond sales California bonds bond issuance finance management public finance government bonds state committee bond sales timing financial authorization public funds management state financial decisions
Section § 13875
This law section specifies that money from selling certain bonds can only be used for specific purposes mentioned in another section (Section 13861). It cannot be used to pay off the bond's principal or interest, nor can it be transferred to the General Fund. Essentially, the money must be used only as this section outlines.
All proceeds from the sale of bonds, except those derived from premiums and accrued interest, shall be available for the purpose provided in Section 13861, but shall not be available for transfer to the General Fund to pay principal and interest on bonds. The money in the fund may be expended only as herein provided.
bond proceeds funding restrictions premium exclusions accrued interest Section 13861 General Fund transfer bond principal bond interest specified purposes expenditure limitations
