SECTIONS 17240-17255

17240.  As used in this chapter: (a) "Reimbursement warrants" refers to warrants drawn by theController on the General Fund pursuant to this article to reimbursethe General Cash Revolving Fund for demands against the General Fundfor which warrants were drawn against the General Cash RevolvingFund. (b) "Refunding warrants" refers to warrants drawn by theController on the General Fund pursuant to this article to providefunds for the payment of reimbursement warrants bearing a fixedmaturity date or warrants issued pursuant to Section 17211.17240.5.  (a) If the Controller requests that registeredreimbursement warrants be issued, and the Governor determinespursuant to Section 16381 that the need for those warrants isjustified, a copy of the written request from the Controller shallalso be provided to the chairperson and vice chairperson of theSenate Committee on Budget and Fiscal Review and the AssemblyCommittee on Budget, the chairperson and vice chairperson of theJoint Legislative Budget Committee, and the chairperson and vicechairperson of the Senate and Assembly Committee on Appropriations. (b) No later than 15 days following the completion of a registeredreimbursement warrant issuance, the Controller shall report on thespecific details of the issuance to the chairperson and vicechairperson of the Senate Committee on Budget and Fiscal Review andthe Assembly Committee on Budget, the chairperson and vicechairperson of the Joint Legislative Budget Committee, and thechairperson and vice chairperson of the Senate and Assembly Committeeon Appropriations.17241.  To reimburse the General Cash Revolving Fund, the Controllermay draw reimbursement warrants on the General Fund in the samemanner as if General Cash Revolving Fund warrants had not been issuedto meet the demands for which they were drawn.17242.  If a reimbursement warrant represents an amount in excess ofthe balance remaining in the unapplied money in the General Fundafter first deducting from such unapplied money the amount, asestimated by the Controller, which is required by law to beearmarked, reserved or set apart from such unapplied money for thepayment of obligations of the State having priority over theobligation to which such reimbursement warrant is applicable, itshall be registered by the Treasurer pursuant to the provisions ofthis chapter.17243.  The Controller may fix a maturity date for reimbursementwarrants, and indorse upon each warrant, the date upon which theprincipal amount of the warrant will be paid and redeemed. TheController, with the concurrence of the Department of Finance and theOffice of the State Treasurer, may fix periodic payment dates forinterest on reimbursement warrants or provide that interest onreimbursement warrants be paid only upon redemption, provided thatinterest on registered reimbursement warrants for which the committeehas not fixed a maximum rate of interest pursuant to Section 17244shall be paid only upon redemption of the registered reimbursementwarrant.17244.  (a) Notwithstanding any other provision of law, in lieu ofprescribing a precise interest rate on registered reimbursementwarrants, the committee may fix a maximum rate of interest for thewarrants, not to exceed 12 percent per annum for either fixed orvariable interest rate warrants, and prescribe that the interest rateon the warrants, not in excess of that maximum, shall be either ofthe following: (1) Fixed in accordance with the best bids for the warrants if thewarrants are sold at public sale. (2) Fixed or variable on the terms and conditions the Controllershall approve at the time of sale of the warrants if the warrants aresold in negotiated sales. (b) Different rates of interest for any reimbursement warrants maybe so fixed or established by the Controller.17245.  Registered reimbursement warrants shall be sold by theController at public sale to the best bidders or in negotiated saleson the terms and conditions the Controller shall approve, but at noless than face value of the registered reimbursement warrantsoffered.17246.  Notice of public sale of registered reimbursement warrantsshall be given by the Controller by publication, not less than threedays prior to sale, at least once in a newspaper published in theCity of Sacramento.17247.  The notice of public sale shall specify the amount ofwarrants to be sold, and the minimum amount for which the Controllerwill consider bids, and shall invite sealed bids for the purchase ofthe warrants. The notice shall state that no bid will be acceptedthat is less than the face value of the warrants bid for, and thatthe warrants will be awarded to the persons making the best bids asdetermined by the Controller, considering the interest rate andpremium offered, if any.17248.  The Controller may give additional notice of any such salein such form and manner as he may determine.17249.  At the time specified in the notice of sale, the Controllershall open the bids, and award the warrants to the persons making thebest bids as determined by him. The Controller may reject any andall bids. No bid for less than the face value of any warrants shallbe accepted.17250.  The Controller shall endorse any registered reimbursementwarrant so sold or to be sold in the name of and on behalf of thepayee named in the warrant. The endorsement transfers to the holderthe warrant and the claims in pursuance of which it was drawn,irrespective of whether the claimants have received the amount ofsuch claims through warrants drawn on the General Cash RevolvingFund.17251.  The cancellation, invalidity or abatement, in whole or inpart, of any such claim, or of any warrant drawn against the GeneralCash Revolving Fund, does not invalidate or otherwise affect anyregistered reimbursement warrant. The certificate of the Controllerrelative to any of the matters required to be found, determined orexist as a condition to or in connection with the issuance,registration or sale of registered reimbursement warrants, or themaking or auditing of any demand, or in respect to the issuance ofwarrants on the General Cash Revolving Fund is conclusive in favor ofany holder of any registered reimbursement warrant.17252.  It is not essential to the validity of the sale of anyreimbursement warrant that it be actually registered prior to sale.17253.  The proceeds of the sale of any registered reimbursementwarrant shall be deposited in the State Treasury; an amount equal toits face value shall be credited to the General Cash Revolving Fund;and any premium received shall be deposited in the General Fund andused for the payment of interest on the registered reimbursementwarrants.17255.  (a) It is the intent of the Legislature, in enacting thissection, to recognize the state's General Fund budget deficitaccumulated prior to July 1, 2009. It is further the intent of theLegislature that proceeds from the sale of reimbursement warrants, ashort-term obligation up to the amount needed to offset theaccumulated General Fund Budget deficit through June 30, 2009, beaccounted for as a reduction in expenditures for the 2008-09 fiscalyear. (b) For purposes of this section, the "accumulated General Fundbudget deficit through June 30, 2009" means the projected negativebalance of the Special Fund for Economic Uncertainties at the end ofthe 2008-09 fiscal year, not including the effect of the accrual ofreimbursement warrants in subdivision (a) to offset expenditures in2008-09.