2009 California Government Code - Section 8879.5-8879.16 :: Article 3. Fiscal Provisions

8879.5.  Bonds in the total amount of two billion dollars
($2,000,000,000), exclusive of refunding bonds, or so much thereof as
is necessary, are hereby authorized to be issued and sold for
carrying out the purposes expressed in this chapter and to reimburse
the General Obligation Bond Expense Revolving Fund pursuant to
Section 16724.5. All bonds herein authorized which have been duly
sold and delivered as provided herein shall constitute valid and
legally binding general obligations of the state, and the full faith
and credit of the state is hereby pledged for the punctual payment of
both principal and interest thereof.

8879.6.  The bonds authorized by this chapter 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), except Section 16727, and all of the
other provisions of that law as amended from time to time apply to
the bonds and to this chapter and are hereby incorporated in this
chapter as though set forth in full in this chapter.

8879.7.  (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 chapter, the Seismic Retrofit Finance Committee
is hereby created. For the purposes of this chapter, the Seismic
Retrofit 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, the Director of Finance, and the
Secretary of the Business, Transportation and Housing Agency, or a
designated representative of each of those officials. The Treasurer
shall serve as the chairperson of the committee. A majority of the
committee may act for the committee.
   (b) The committee may adopt guidelines establishing requirements
for administration of its financing programs to the extent necessary
to protect the validity of, and tax exemption for, interest on the
bonds. The guidelines shall not constitute rules, regulations,
orders, or standards of general application.
   (c) For the purposes of the State General Obligation Bond Law, any
department receiving an allocation from the Department of Finance is
designated to be the "board."

8879.8.  Upon request of the board stating that funds are needed for
earthquake relief purposes, the committee shall determine whether or
not it is necessary or desirable to issue bonds authorized pursuant
to this chapter in order to carry out the actions specified in
Section 8879.3, 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 be sold at any one time. Bonds
may bear interest subject to federal income tax.

8879.9.  There shall be collected annually, in the same manner and
at the same time as other state revenue is collected, a sum of money
in addition to the ordinary revenues of the state, sufficient to pay
the principal of, and interest on, the bonds as provided herein, and
all officers required by law to perform any duty in regard to the
collections of state revenues shall collect that additional sum.

8879.10.  Notwithstanding Section 13340, there is hereby
appropriated from the General Fund in the State Treasury, for the
purposes of this chapter, an amount that will equal the total of the
following:
   (a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this chapter, as the
principal and interest become due and payable.
   (b) The sum which is necessary to carry out Section 8879.12,
appropriated without regard to fiscal years.

8879.11.  The board may request the Pooled Money Investment Board to
make a loan from the Pooled Money Investment Account, in accordance
with Section 16312, for purposes of this chapter. The amount of the
request shall not exceed the amount of the unsold bonds which the
committee has, by resolution, authorized to be sold for the purpose
of this chapter, less any amount withdrawn pursuant to Section
8879.12. The board shall execute any documents as required by the
Pooled Money Investment Board to obtain and repay the loan. Any
amount loaned shall be deposited in the fund to be allocated by the
California Transportation Commission in accordance with this chapter.

8879.12.  For the purpose of carrying out this chapter, the Director
of Finance may, by executive order, authorize the withdrawal from
the General Fund of any 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 Seismic Retrofit Bond Fund of
1996. 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 which would otherwise be deposited in that
fund.

8879.13.  The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of the State General Obligation Bond
Law. Approval by the electors of this act shall constitute approval
of any refunding bonds issued pursuant to the State General
Obligation Bond Law.

8879.14.  Notwithstanding anything in the State General Obligation
Bond Law, the maximum maturity of any bonds authorized by this
chapter shall not exceed 30 years from the date of each respective
series. The maturity of each series shall be calculated from the date
of each series.

8879.15.  The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this chapter 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.

8879.16.  Notwithstanding any provision of the State General
Obligation Bond Law with regard to the proceeds from the sale of
bonds authorized by this chapter that are subject to investment under
Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of
Division 4, the Treasurer may maintain a separate account for
investment earnings, order the payment of those earnings to comply
with any rebate requirement applicable under federal law, and may
otherwise direct the use and investment of those proceeds so as 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.