2007 California Government Code Article 1. General Provisions

CA Codes (gov:16910-16913)

16910.  This chapter shall be known and may be cited as the
California Pension Obligation Financing Act.



16911.  It is the intent of the Legislature, in enacting this
chapter, to provide for an efficient, equitable, and economical means
of satisfying pension obligations of the state.



16912.  The Legislature hereby finds and declares that the state's
obligations to make payments to certain public retirement systems are
obligations imposed by law not subject to Section 1 of Article XVI
of the California Constitution and the bonds authorized to be issued
under this chapter have the same character under the Constitution as
the pension obligations funded or refunded.



16913.  Unless the context otherwise requires, the following
definitions shall govern the construction of this chapter:
   (a) "Ancillary obligation" means the obligation of the state under
any credit enhancement or liquidity agreement, including any
obligation (1) in the form of bond insurance, a letter of credit,
standby bond purchase agreement, reimbursement agreement, liquidity
facility, or other similar arrangement, or (2) under any remarketing
agreement, auction agent agreement, broker-dealer agreement, or other
agreement relating to the marketing of the bonds, interest rate or
other type of swap or hedging contract, or (3) under any investment
agreement, forward purchase agreement, or similar structured
investment contract, entered into by the committee in connection with
any bonds issued under this chapter.
   (b) "Bonds" means any bonds, notes, bond anticipation notes,
interim certificates, debentures, or other obligations or forms of
indebtedness issued pursuant to this chapter.
   (c) "Committee" means the Pension Obligation Bond Committee
created pursuant to Section 16920.
   (d) "Pension obligations" means the obligations of the state or
any state agency to the retirement systems imposed by the retirement
laws in the amounts determined by the governing boards of the
retirement systems.
   (e) "Program" means the program established by this chapter under
which the committee shall issue bonds for the purpose of funding or
refunding pension obligations.
   (f) "Retirement laws" means Section 17 of Article XVI of the
California Constitution, the Public Employees' Retirement Law (Part 3
(commencing with Section 20000) of Division 5 of Title 2), the
Teachers' Retirement Law (Part 13 (commencing with Section 22000) and
Part 14 (commencing with Section 26000) of Division 1 of Title 1 of
the Education Code) and any other laws providing for payment to be
made by the state or any state agency to any retirement system to
provide retirement benefits to employees of the state or any other
individuals for which the state has an obligation to pay all or a
portion of the contributions to a retirement system to ensure the
payment of retirement benefits to those individuals.
   (g) "Retirement systems" means the Public Employees' Retirement
System established pursuant to the Public Employees' Retirement Law
(Part 3 (commencing with Section 20000) of Division 5 of Title 2) and
the State Teachers' Retirement System established pursuant to the
Teachers' Retirement Law (Part 13 (commencing with Section 22000) and
Part 14 (commencing with Section 26000) of Division 1 of Title 1 of
the Education Code) and any other retirement system that provides
retirement benefits to employees of the state or any other
individuals for which the state has an obligation to pay all or a
portion of the contributions to the retirement system to ensure the
payment of retirement benefits to those individuals.