State Codes and Statutes

Statutes > California > Gov > 63048.6-63048.9

GOVERNMENT CODE
SECTION 63048.6-63048.9



63048.6.  The definitions contained in this section are in addition
to the definitions contained in Section 63010 and together with the
definitions contained in that section shall govern the construction
of this article, unless the context requires otherwise:
   (a) "Compact assets" means moneys required to be paid to the state
under Sections 4.3.1 and 4.3.3 of the designated tribal compacts and
the state's rights to receive those payments.
   (b) "Designated tribal compacts" means the amended and new
tribal-state compacts, which are ratified by the Legislature, and
that, among other things, require certain payments to the state in
exchange for the exclusive right of the compact tribes to engage in
certain gaming activities in their respective core geographic
markets, all as specified in the amended and new compacts, and that
are designated by the Director of Finance pursuant to subdivision (a)
of Section 63048.65.
   (c) "Operating expenses" means the reasonable operating expenses
of the special purpose trust and the bank, including, but not limited
to, the costs of preparation of accounting and other reports,
maintenance of the ratings on the bonds, insurance premiums, or other
required activities of the special purpose trust, and fees and
expenses incurred for professional consultants, advisors,
fiduciaries, and legal counsel, including the fees and expenses of
the Attorney General incurred in connection with the enforcement of
the pledges and agreements of the state pursuant to Section 63048.8.




63048.63.  (a) The Legislature hereby finds and declares:
   (1) The financial and legal records of California Indian tribes
and tribal business enterprises are records of a sovereign nation and
are not subject to disclosure by private citizens or the state. This
is explicitly recognized in amendments to tribal-state gaming
compacts ratified by the Legislature, which provide for the
securitization of annual payments to be received from the tribes by
the state or by an agency, trust, fund, or entity specified by the
state.
   (2) In order to review the records of any Indian tribe relative to
this securitization, the compacts require the execution of
nondisclosure agreements.
   (3) State entities statutorily charged with participating in the
bond sale cannot perform those duties in the absence of that
agreement, and the Legislature hereby acknowledges and agrees that
documents containing tribal information are not public records, shall
not be discussed in an open meeting, and that state officials privy
to that information may execute nondisclosure agreements.
   (b) Nothing in Chapter 3.5 of Division 7 of Title 1 (commencing
with Section 6250) or any other provision of law shall permit the
disclosure of any records of an Indian tribe received by the state,
or by an agency, trust fund, or entity specified by the state, in
connection with the sale of any portions of the designated
tribal-state gaming compact assets or the issuance of bonds, or any
summaries or analyses thereof. The transmission of the records, or
the information contained in those records in an alternative form, to
the state or the special purpose trust shall not constitute a waiver
of exemption from disclosure, and the records and information once
transmitted to the state or special purpose trust shall be subject to
this same exemption from disclosure.
   (c) The state and the special purpose trust are authorized to
enter into nondisclosure agreements with Indian tribes agreeing not
to disclose the materials described in subdivision (b).
   (d) The nondisclosure agreements may include provisions limiting
the representatives of the state and the special purpose trust
authorized to review or receive records of the Indian tribe to those
individuals directly working on the sale of portions of the
designated compact assets or the issuance of the bonds.
   (e) Nothing in Article 9 (commencing with Section 11120) of
Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code
shall be construed to prevent the bank from conducting a closed
session to consider any records or information of an Indian tribe or
any summaries or analyses thereof received by the state in connection
with the sale of any portion of the compact assets or the issuance
of bonds.


63048.65.  (a) Upon a filing by the Director of Finance with the
bank of a list of designated tribal compacts and the specific
portions of the compact assets to be sold, the bank may sell for, and
on behalf of, the state, solely as its agent, those specific
portions of the compact assets to a special purpose trust. To that
end, a special purpose trust is hereby established as a
not-for-profit corporation solely for that purpose and for the
purposes necessarily incidental thereto. The bank may enter into one
or more sales agreements with the special purpose trust on terms it
deems appropriate, which may include covenants of, and binding on,
the state necessary to establish and maintain the security of the
bonds and exemption of interest on the bonds from federal income
taxation. The portion of the compact assets to be sold shall be an
amount or amounts determined by the Director of Finance that are
necessary to provide the state with net proceeds of the sale, not to
exceed one billion five hundred million dollars ($1,500,000,000),
exclusive of capitalized interest on the bonds and any costs incurred
by the bank or the special purpose trust in implementing this
article, including, but not limited to, the cost of financing one or
more reserve funds, any credit enhancements, costs incurred in the
issuance of bonds, and operating expenses. Those specific portions of
the compact assets may be sold at one time or from time to time.
   (b) The special purpose trust may issue bonds, including, but not
limited to, refunding bonds, on the terms it shall determine, and do
all things contemplated by, and authorized by, this division with
respect to the bank, and enjoy all rights, privileges, and immunities
the bank enjoys pursuant to this division, or as authorized by
Section 5140 of the Corporations Code with respect to public benefit
nonprofit corporations, or as necessary or appropriate in connection
with the issuance of bonds, and may enter into agreements with any
public or private entity and pledge the compact assets that it
purchased as collateral and security for its bonds. However, to the
extent of any conflict between any of the foregoing and the
provisions of this article, the provisions of this article shall
control. The pledge of any of these assets and of any revenues,
reserves, and earnings pledged in connection with these assets shall
be valid and binding in accordance with its terms from the time the
pledge is made, and amounts so pledged and thereafter received shall
immediately be subject to the lien of the pledge without the need for
physical delivery, recordation, filing, or other further act. The
special purpose trust, and its assets and income, and bonds issued by
the special purpose trust, and their transfer and the income
therefrom, shall be exempt from all taxation by the state and by its
political subdivisions.
   (c) (1) The net proceeds of the sale of compact assets by the bank
shall be deposited in the following order:
   (A) One billion two hundred million dollars ($1,200,000,000) plus
any interest due pursuant to paragraph (3) of subdivision (c) of
Section 14556.8, to the Traffic Congestion Relief Fund for the
purpose of funding or reimbursing the cost of projects, programs, and
activities permitted and necessary to be funded by that fund in
accordance with applicable law, and to repay loans made from the
State Highway Account and the Public Transportation Account to the
Traffic Congestion Relief Fund pursuant to Section 14556.8, in the
following priority order:
   (i) Transfer of four hundred forty-three million dollars
($443,000,000) plus any interest due pursuant to paragraph (3) of
subdivision (c) of Section 14556.8, to the State Highway Account for
project expenditures.
   (ii) Two hundred ninety million dollars ($290,000,000) for
allocation to Traffic Congestion Relief Program projects.
   (iii) Two hundred seventy-five million dollars ($275,000,000) to
the Public Transportation Account for project expenditures.
   (iv) All remaining funds for allocation to Traffic Congestion
Relief Program projects.
   (B) To the Transportation Deferred Investment Fund, an amount up
to the outstanding amount of the suspension of the 2004-05 fiscal
year transfer of the sales tax on gasoline to the Transportation
Investment Fund pursuant to requirements of Article XIX B of the
California Constitution.
   (C) To the Transportation Deferred Investment Fund, an amount up
to the outstanding amount of the suspension of the 2003-04 fiscal
year transfer of the sales tax on gasoline to the Transportation
Investment Fund pursuant to requirements of Article XIX B of the
California Constitution.
   (2) Notwithstanding paragraph (1), if and to the extent it is
necessary to ensure to the maximum extent practicable the eligibility
for exclusion from taxation under the federal Internal Revenue Code
of interest on the bonds to be issued by the special purpose trust,
the Director of Finance may adjust the application of proceeds not
eligible for exclusion from taxation among the authorized funds
described in paragraph (1). The Department of Finance shall submit a
report to the Legislature describing any proposed changes among the
authorized funds in paragraph (1), and consistent with this
paragraph, at least 30 days prior to issuing the bonds pursuant to
this article. Amounts deposited in the Traffic Congestion Relief Fund
pursuant to paragraph (1) shall be applied as a credit to transfers
from the General Fund that the Controller would otherwise be required
to make to that fund. Amounts deposited in the Transportation
Deferred Investment Fund shall be expended in conformance with
Sections 7105 and 7106 of the Revenue and Taxation Code, and the
amounts so deposited shall also be applied as a credit to the
transfers from the General Fund that the Controller would otherwise
be required to make under those sections. The Legislature hereby
finds and declares that the deposits and credits described in this
subdivision do not constitute the use of the proceeds of bonds or
other indebtedness to pay a yearend State Budget deficit as
prohibited by subdivision (c) of Section 1.3 of Article XVI of the
California Constitution. Subject to any constitutional limitation,
the use and application of the proceeds of any sale of compact assets
or bonds shall not in any way affect the legality or validity of
that sale or those bonds.
   (d) Funds received from amended tribal-state compacts, or new
compacts entered into and ratified on or after the effective date of
this article, pursuant to Section 4.3.1 of the amended compacts, or
the comparable section in new compacts, as specified in those
compacts, that are neither sold to the special purpose trust nor
otherwise appropriated, and funds received as a result of the state's
acquisition of an ownership interest in any residual interest in
compact assets attributable to Section 4.3.1 of the amended compacts,
or the comparable section in new compacts, as specified in those
compacts, shall be remitted to the California Gambling Control
Commission for deposit in the General Fund.
   (e) Funds received from amended tribal-state compacts, or new
compacts entered into and ratified on or after the effective date of
this article, pursuant to Section 4.3.3 of the amended compacts, or
the comparable section in new compacts, as specified in those
compacts, shall be held in an account within the Special Deposit Fund
until those funds are sold or otherwise applied pursuant to this
subdivision. From time to time, at the direction of the Director of
Finance, any moneys in this account shall be deposited and applied in
accordance with subdivision (c) or shall be deemed to be compact
assets for purposes of sale to the special purpose trust pursuant to
this article. If the Director of Finance determines that the bonds
authorized pursuant to this article cannot be successfully issued by
the special purpose trust, funds within the account shall be
deposited in accordance with subdivision (c). In addition, all
subsequent revenues remitted pursuant to Section 4.3.3 of the amended
compacts, or the comparable section in new compacts, as specified in
those compacts, and funds received as a result of the state's
acquisition of an ownership interest in any residual interest in
compact assets attributable to Section 4.3.3 of the amended compacts,
or the comparable section in new compacts, as specified in those
compacts, shall be used to satisfy the purposes of subdivision (c).
When the amounts described in subdivision (c) have been paid to the
funds named in that subdivision either pursuant to this article or by
other appropriations or transfers, thereafter the revenues received
by the state from Section 4.3.3 of the compact shall be remitted to
the California Gambling Control Commission for deposit in the General
Fund.
   (f) The principal office of the special purpose trust shall be
located in the County of Sacramento. The articles of incorporation of
the special purpose trust shall be prepared and filed, on behalf of
the state, with the Secretary of State by the bank. The members of
the board of directors of the bank as of the effective date of this
article, the Director of the Department of Transportation, and the
Director of General Services, shall each serve ex officio as the
directors of the special purpose trust. Any of these directors may
name a designee to act on his or her behalf as a director of the
special purpose trust. The Director of Finance or his or her designee
shall serve as chair of the special purpose trust. Directors of the
special purpose trust shall not be subject to personal liability for
carrying out the powers and duties conferred by this article. The
Legislature hereby finds and declares that the duties and
responsibilities of the directors of the special purpose trust and
the duties and responsibilities of the Director of Finance
established under this article are within the scope of the primary
duties of those persons in their official capacities. The special
purpose trust shall be treated as a separate legal entity with its
separate corporate purpose as described in this article, and the
assets, liabilities, and funds of the special purpose trust shall be
neither consolidated nor commingled with those of the bank.




63048.66.  (a) Notwithstanding Section 63048.65 or any other
provision of this article, compact assets that are subject to
designation by the Director of Finance for sale pursuant to
subdivision (a) of Section 63048.65 and that are timely deposited or
are due for deposit in the Special Deposit Fund on or after July 1,
2008, and on or before June 30, 2011, shall not be available for the
purpose of Section 63048.65.
   (b) The Director of Finance shall determine the portion of the
compact assets described in subdivision (a) that are attributable to
payments made for each fiscal year. The Director of Finance may
direct the Controller, by separate order applicable to the assets for
each fiscal year, to transfer the compact assets attributable to
that fiscal year from the Special Deposit Fund to the General Fund.
   (c) Upon order of the Director of Finance, the Controller shall
transfer the compact assets as provided in subdivision (b).
   (d) If any legal challenges to the issuance of bonds pursuant to
this article are settled sufficiently for the bonds to be sold, the
following shall occur:
   (1) Notwithstanding subdivision (a), the tribal assets described
in subdivision (a) that are in the Special Deposit Fund, or are still
due for payment to the Special Deposit Fund, may be made available
for sale pursuant to subdivision (a) of Section 63048.65.
   (2) The transfer of any compact assets to the General Fund
pursuant to this section shall be suspended until after the bonds are
sold, and any possible future transfers to the General Fund shall be
consistent with the provisions of the bond sale.



63048.7.  Notwithstanding any other provision of this division,
Article 3 (commencing with Section 63040), Article 4 (commencing with
Section 63042), and Article 5 (commencing with Section 63043) do not
apply to any bonds issued by the special purpose trust established
by this article. All matters authorized in this article are in
addition to powers granted to the bank in this division.



63048.75.  Any sale of some or all of the compact assets under this
article shall be treated as a true sale and absolute transfer of the
property so transferred to the special purpose trust and not as a
pledge or grant of a security interest by the state, the bank board,
or the bank for any borrowing. The characterization of the sale of
any of those assets as an absolute transfer by the participants shall
not be negated or adversely affected by the fact that only a portion
of the compact assets is transferred, nor by the state's acquisition
of an ownership interest in any residual interest in the compact
assets, nor by any characterization of the special purpose trust or
its bonds for purposes of accounting, taxation, or securities
regulation, nor by any other factor whatsoever.



63048.8.  (a) (1) On and after the effective date of each sale of
compact assets, the state shall have no right, title, or interest in
or to the compact assets sold, and the compact assets so sold shall
be property of the special purpose trust and not of the state, the
bank board, or the bank, and shall be owned, received, held, and
disbursed by the special purpose trust or the trustee for the
financing. None of the compact assets sold by the state pursuant to
this article shall be subject to garnishment, levy, execution,
attachment, or other process, writ, including, but not limited to, a
writ of mandate, or remedy in connection with the assertion or
enforcement of any debt, claim, settlement, or judgment against the
state, the bank board, or the bank.
   (2) On or before the effective date of any sale, the state, acting
through the Director of Finance, upon direction of the bank, shall
notify each tribe that has executed a designated tribal compact that
the particular compact assets that have been sold to the special
purpose trust and irrevocably instruct the tribe that, as of the
applicable effective date and so long as the bonds secured by the
compact assets are outstanding, the compact assets sold are to be
paid directly to the trustee for the applicable bonds of the special
purpose trust. Certification by the Director of Finance that this
notice has been given shall be conclusive evidence thereof for
purposes of this article.
   (3) The state pledges and agrees with the holders of any bonds
issued by the special purpose trust that it will not authorize anyone
other than an Indian tribe with a federally authorized compact to
engage in specified gaming activities within the defined core
geographic market of an Indian tribe that is a party to a designated
tribal compact in violation of the designated tribal compact as
ratified by the Legislature, unless adequate provision is made by law
for the protection of the holders of bonds in a manner consistent
with the indenture or trust agreement pursuant to which the bonds are
issued. The state pledges to and agrees with the holders of any
bonds issued by the special purpose trust that it will (A) enforce
its rights to collect the compact assets sold to the special purpose
trust pursuant to this article, (B) not amend any designated tribal
compact or take any other action, that would in any way diminish,
limit, or impair the rights to receive compact assets sold to the
special purpose trust pursuant to this article, and (C) not in any
way impair the rights and remedies of bondholders or the security for
their bonds until, in each case, those bonds, together with the
interest thereon and costs and expenses in connection with any action
or proceeding on behalf of the bondholders, are fully paid and
discharged or otherwise provided for pursuant to the terms of the
indenture or trust agreement pursuant to which those bonds are
issued. The special purpose trust may include these pledges and
undertakings in its bonds. Notwithstanding any other provision of
this article, inherent police powers that cannot be contracted away
are reserved to the state.
   (b) Bonds issued pursuant to this article shall not be deemed to
constitute a debt of the state nor a pledge of the faith or credit of
the state, and all bonds shall contain on the face of the bond a
statement to the effect that neither the faith and credit nor the
taxing power nor any other assets or revenues of the state or of any
political subdivision of the state other than the special purpose
trust, is or shall be pledged to the payment of the principal of or
the interest on the bonds.
   (c) Whether or not the bonds are of a form and character as to be
negotiable instruments under the terms of the Uniform Commercial
Code, the bonds are hereby made negotiable instruments for all
purposes, subject only to the provisions of the bonds for
registration.
   (d) The special purpose trust and the bank shall be treated as
public agencies for purposes of Chapter 9 (commencing with Section
860) of Title 10 of Part 2 of the Code of Civil Procedure, and any
action or proceeding challenging the validity of any matter
authorized by this article shall be brought in accordance with, and
within the time specified in, that chapter.
   (e) Notwithstanding any other provision of law, the exclusive
means to obtain review of a superior court judgment entered in an
action brought pursuant to Chapter 9 (commencing with Section 860) of
Title 10 of Part 2 of the Code of Civil Procedure to determine the
validity of any bonds to be issued, any other contracts to be entered
into, or any other matters authorized by this article shall be by
petition to the Supreme Court for writ of review. Any such petition
shall be filed within 15 days following the notice of entry of the
superior court judgment, and no extension of that period shall be
allowed. If no petition is filed within the time allowed for this
purpose, or the petition is denied, with or without opinion, the
decision of the superior court shall be final and enforceable as
provided in subdivision (a) of Section 870 of the Code of Civil
Procedure. In any case in which a petition has been filed within the
time allowed, the Supreme Court shall make any orders as it may deem
proper in the circumstances. If no answering party appeared in the
superior court action, the only issues that may be raised in the
petition are those related to the jurisdiction of the superior court.
Nothing in this subdivision or subdivision (d) shall be construed as
granting standing to challenge the designated tribal compacts.




63048.85.  (a) The Legislature finds and declares that, because the
proceeds from the sale of compact assets authorized by this article
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.
   (b) Compact assets shall not be deemed to be "State General Fund
proceeds of taxes appropriated pursuant to Article XIII B" within the
meaning of Section 8 of Article XVI of the California Constitution,
Section 41202 of the Education Code, or any other provision of law.
   (c) Compact assets are not General Fund revenues for the purposes
of Section 8 of Article XVI of the California Constitution or any
other provision of law.



63048.9.  This article and all powers granted hereby shall be
liberally construed to effectuate its intent and their purposes.


State Codes and Statutes

Statutes > California > Gov > 63048.6-63048.9

GOVERNMENT CODE
SECTION 63048.6-63048.9



63048.6.  The definitions contained in this section are in addition
to the definitions contained in Section 63010 and together with the
definitions contained in that section shall govern the construction
of this article, unless the context requires otherwise:
   (a) "Compact assets" means moneys required to be paid to the state
under Sections 4.3.1 and 4.3.3 of the designated tribal compacts and
the state's rights to receive those payments.
   (b) "Designated tribal compacts" means the amended and new
tribal-state compacts, which are ratified by the Legislature, and
that, among other things, require certain payments to the state in
exchange for the exclusive right of the compact tribes to engage in
certain gaming activities in their respective core geographic
markets, all as specified in the amended and new compacts, and that
are designated by the Director of Finance pursuant to subdivision (a)
of Section 63048.65.
   (c) "Operating expenses" means the reasonable operating expenses
of the special purpose trust and the bank, including, but not limited
to, the costs of preparation of accounting and other reports,
maintenance of the ratings on the bonds, insurance premiums, or other
required activities of the special purpose trust, and fees and
expenses incurred for professional consultants, advisors,
fiduciaries, and legal counsel, including the fees and expenses of
the Attorney General incurred in connection with the enforcement of
the pledges and agreements of the state pursuant to Section 63048.8.




63048.63.  (a) The Legislature hereby finds and declares:
   (1) The financial and legal records of California Indian tribes
and tribal business enterprises are records of a sovereign nation and
are not subject to disclosure by private citizens or the state. This
is explicitly recognized in amendments to tribal-state gaming
compacts ratified by the Legislature, which provide for the
securitization of annual payments to be received from the tribes by
the state or by an agency, trust, fund, or entity specified by the
state.
   (2) In order to review the records of any Indian tribe relative to
this securitization, the compacts require the execution of
nondisclosure agreements.
   (3) State entities statutorily charged with participating in the
bond sale cannot perform those duties in the absence of that
agreement, and the Legislature hereby acknowledges and agrees that
documents containing tribal information are not public records, shall
not be discussed in an open meeting, and that state officials privy
to that information may execute nondisclosure agreements.
   (b) Nothing in Chapter 3.5 of Division 7 of Title 1 (commencing
with Section 6250) or any other provision of law shall permit the
disclosure of any records of an Indian tribe received by the state,
or by an agency, trust fund, or entity specified by the state, in
connection with the sale of any portions of the designated
tribal-state gaming compact assets or the issuance of bonds, or any
summaries or analyses thereof. The transmission of the records, or
the information contained in those records in an alternative form, to
the state or the special purpose trust shall not constitute a waiver
of exemption from disclosure, and the records and information once
transmitted to the state or special purpose trust shall be subject to
this same exemption from disclosure.
   (c) The state and the special purpose trust are authorized to
enter into nondisclosure agreements with Indian tribes agreeing not
to disclose the materials described in subdivision (b).
   (d) The nondisclosure agreements may include provisions limiting
the representatives of the state and the special purpose trust
authorized to review or receive records of the Indian tribe to those
individuals directly working on the sale of portions of the
designated compact assets or the issuance of the bonds.
   (e) Nothing in Article 9 (commencing with Section 11120) of
Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code
shall be construed to prevent the bank from conducting a closed
session to consider any records or information of an Indian tribe or
any summaries or analyses thereof received by the state in connection
with the sale of any portion of the compact assets or the issuance
of bonds.


63048.65.  (a) Upon a filing by the Director of Finance with the
bank of a list of designated tribal compacts and the specific
portions of the compact assets to be sold, the bank may sell for, and
on behalf of, the state, solely as its agent, those specific
portions of the compact assets to a special purpose trust. To that
end, a special purpose trust is hereby established as a
not-for-profit corporation solely for that purpose and for the
purposes necessarily incidental thereto. The bank may enter into one
or more sales agreements with the special purpose trust on terms it
deems appropriate, which may include covenants of, and binding on,
the state necessary to establish and maintain the security of the
bonds and exemption of interest on the bonds from federal income
taxation. The portion of the compact assets to be sold shall be an
amount or amounts determined by the Director of Finance that are
necessary to provide the state with net proceeds of the sale, not to
exceed one billion five hundred million dollars ($1,500,000,000),
exclusive of capitalized interest on the bonds and any costs incurred
by the bank or the special purpose trust in implementing this
article, including, but not limited to, the cost of financing one or
more reserve funds, any credit enhancements, costs incurred in the
issuance of bonds, and operating expenses. Those specific portions of
the compact assets may be sold at one time or from time to time.
   (b) The special purpose trust may issue bonds, including, but not
limited to, refunding bonds, on the terms it shall determine, and do
all things contemplated by, and authorized by, this division with
respect to the bank, and enjoy all rights, privileges, and immunities
the bank enjoys pursuant to this division, or as authorized by
Section 5140 of the Corporations Code with respect to public benefit
nonprofit corporations, or as necessary or appropriate in connection
with the issuance of bonds, and may enter into agreements with any
public or private entity and pledge the compact assets that it
purchased as collateral and security for its bonds. However, to the
extent of any conflict between any of the foregoing and the
provisions of this article, the provisions of this article shall
control. The pledge of any of these assets and of any revenues,
reserves, and earnings pledged in connection with these assets shall
be valid and binding in accordance with its terms from the time the
pledge is made, and amounts so pledged and thereafter received shall
immediately be subject to the lien of the pledge without the need for
physical delivery, recordation, filing, or other further act. The
special purpose trust, and its assets and income, and bonds issued by
the special purpose trust, and their transfer and the income
therefrom, shall be exempt from all taxation by the state and by its
political subdivisions.
   (c) (1) The net proceeds of the sale of compact assets by the bank
shall be deposited in the following order:
   (A) One billion two hundred million dollars ($1,200,000,000) plus
any interest due pursuant to paragraph (3) of subdivision (c) of
Section 14556.8, to the Traffic Congestion Relief Fund for the
purpose of funding or reimbursing the cost of projects, programs, and
activities permitted and necessary to be funded by that fund in
accordance with applicable law, and to repay loans made from the
State Highway Account and the Public Transportation Account to the
Traffic Congestion Relief Fund pursuant to Section 14556.8, in the
following priority order:
   (i) Transfer of four hundred forty-three million dollars
($443,000,000) plus any interest due pursuant to paragraph (3) of
subdivision (c) of Section 14556.8, to the State Highway Account for
project expenditures.
   (ii) Two hundred ninety million dollars ($290,000,000) for
allocation to Traffic Congestion Relief Program projects.
   (iii) Two hundred seventy-five million dollars ($275,000,000) to
the Public Transportation Account for project expenditures.
   (iv) All remaining funds for allocation to Traffic Congestion
Relief Program projects.
   (B) To the Transportation Deferred Investment Fund, an amount up
to the outstanding amount of the suspension of the 2004-05 fiscal
year transfer of the sales tax on gasoline to the Transportation
Investment Fund pursuant to requirements of Article XIX B of the
California Constitution.
   (C) To the Transportation Deferred Investment Fund, an amount up
to the outstanding amount of the suspension of the 2003-04 fiscal
year transfer of the sales tax on gasoline to the Transportation
Investment Fund pursuant to requirements of Article XIX B of the
California Constitution.
   (2) Notwithstanding paragraph (1), if and to the extent it is
necessary to ensure to the maximum extent practicable the eligibility
for exclusion from taxation under the federal Internal Revenue Code
of interest on the bonds to be issued by the special purpose trust,
the Director of Finance may adjust the application of proceeds not
eligible for exclusion from taxation among the authorized funds
described in paragraph (1). The Department of Finance shall submit a
report to the Legislature describing any proposed changes among the
authorized funds in paragraph (1), and consistent with this
paragraph, at least 30 days prior to issuing the bonds pursuant to
this article. Amounts deposited in the Traffic Congestion Relief Fund
pursuant to paragraph (1) shall be applied as a credit to transfers
from the General Fund that the Controller would otherwise be required
to make to that fund. Amounts deposited in the Transportation
Deferred Investment Fund shall be expended in conformance with
Sections 7105 and 7106 of the Revenue and Taxation Code, and the
amounts so deposited shall also be applied as a credit to the
transfers from the General Fund that the Controller would otherwise
be required to make under those sections. The Legislature hereby
finds and declares that the deposits and credits described in this
subdivision do not constitute the use of the proceeds of bonds or
other indebtedness to pay a yearend State Budget deficit as
prohibited by subdivision (c) of Section 1.3 of Article XVI of the
California Constitution. Subject to any constitutional limitation,
the use and application of the proceeds of any sale of compact assets
or bonds shall not in any way affect the legality or validity of
that sale or those bonds.
   (d) Funds received from amended tribal-state compacts, or new
compacts entered into and ratified on or after the effective date of
this article, pursuant to Section 4.3.1 of the amended compacts, or
the comparable section in new compacts, as specified in those
compacts, that are neither sold to the special purpose trust nor
otherwise appropriated, and funds received as a result of the state's
acquisition of an ownership interest in any residual interest in
compact assets attributable to Section 4.3.1 of the amended compacts,
or the comparable section in new compacts, as specified in those
compacts, shall be remitted to the California Gambling Control
Commission for deposit in the General Fund.
   (e) Funds received from amended tribal-state compacts, or new
compacts entered into and ratified on or after the effective date of
this article, pursuant to Section 4.3.3 of the amended compacts, or
the comparable section in new compacts, as specified in those
compacts, shall be held in an account within the Special Deposit Fund
until those funds are sold or otherwise applied pursuant to this
subdivision. From time to time, at the direction of the Director of
Finance, any moneys in this account shall be deposited and applied in
accordance with subdivision (c) or shall be deemed to be compact
assets for purposes of sale to the special purpose trust pursuant to
this article. If the Director of Finance determines that the bonds
authorized pursuant to this article cannot be successfully issued by
the special purpose trust, funds within the account shall be
deposited in accordance with subdivision (c). In addition, all
subsequent revenues remitted pursuant to Section 4.3.3 of the amended
compacts, or the comparable section in new compacts, as specified in
those compacts, and funds received as a result of the state's
acquisition of an ownership interest in any residual interest in
compact assets attributable to Section 4.3.3 of the amended compacts,
or the comparable section in new compacts, as specified in those
compacts, shall be used to satisfy the purposes of subdivision (c).
When the amounts described in subdivision (c) have been paid to the
funds named in that subdivision either pursuant to this article or by
other appropriations or transfers, thereafter the revenues received
by the state from Section 4.3.3 of the compact shall be remitted to
the California Gambling Control Commission for deposit in the General
Fund.
   (f) The principal office of the special purpose trust shall be
located in the County of Sacramento. The articles of incorporation of
the special purpose trust shall be prepared and filed, on behalf of
the state, with the Secretary of State by the bank. The members of
the board of directors of the bank as of the effective date of this
article, the Director of the Department of Transportation, and the
Director of General Services, shall each serve ex officio as the
directors of the special purpose trust. Any of these directors may
name a designee to act on his or her behalf as a director of the
special purpose trust. The Director of Finance or his or her designee
shall serve as chair of the special purpose trust. Directors of the
special purpose trust shall not be subject to personal liability for
carrying out the powers and duties conferred by this article. The
Legislature hereby finds and declares that the duties and
responsibilities of the directors of the special purpose trust and
the duties and responsibilities of the Director of Finance
established under this article are within the scope of the primary
duties of those persons in their official capacities. The special
purpose trust shall be treated as a separate legal entity with its
separate corporate purpose as described in this article, and the
assets, liabilities, and funds of the special purpose trust shall be
neither consolidated nor commingled with those of the bank.




63048.66.  (a) Notwithstanding Section 63048.65 or any other
provision of this article, compact assets that are subject to
designation by the Director of Finance for sale pursuant to
subdivision (a) of Section 63048.65 and that are timely deposited or
are due for deposit in the Special Deposit Fund on or after July 1,
2008, and on or before June 30, 2011, shall not be available for the
purpose of Section 63048.65.
   (b) The Director of Finance shall determine the portion of the
compact assets described in subdivision (a) that are attributable to
payments made for each fiscal year. The Director of Finance may
direct the Controller, by separate order applicable to the assets for
each fiscal year, to transfer the compact assets attributable to
that fiscal year from the Special Deposit Fund to the General Fund.
   (c) Upon order of the Director of Finance, the Controller shall
transfer the compact assets as provided in subdivision (b).
   (d) If any legal challenges to the issuance of bonds pursuant to
this article are settled sufficiently for the bonds to be sold, the
following shall occur:
   (1) Notwithstanding subdivision (a), the tribal assets described
in subdivision (a) that are in the Special Deposit Fund, or are still
due for payment to the Special Deposit Fund, may be made available
for sale pursuant to subdivision (a) of Section 63048.65.
   (2) The transfer of any compact assets to the General Fund
pursuant to this section shall be suspended until after the bonds are
sold, and any possible future transfers to the General Fund shall be
consistent with the provisions of the bond sale.



63048.7.  Notwithstanding any other provision of this division,
Article 3 (commencing with Section 63040), Article 4 (commencing with
Section 63042), and Article 5 (commencing with Section 63043) do not
apply to any bonds issued by the special purpose trust established
by this article. All matters authorized in this article are in
addition to powers granted to the bank in this division.



63048.75.  Any sale of some or all of the compact assets under this
article shall be treated as a true sale and absolute transfer of the
property so transferred to the special purpose trust and not as a
pledge or grant of a security interest by the state, the bank board,
or the bank for any borrowing. The characterization of the sale of
any of those assets as an absolute transfer by the participants shall
not be negated or adversely affected by the fact that only a portion
of the compact assets is transferred, nor by the state's acquisition
of an ownership interest in any residual interest in the compact
assets, nor by any characterization of the special purpose trust or
its bonds for purposes of accounting, taxation, or securities
regulation, nor by any other factor whatsoever.



63048.8.  (a) (1) On and after the effective date of each sale of
compact assets, the state shall have no right, title, or interest in
or to the compact assets sold, and the compact assets so sold shall
be property of the special purpose trust and not of the state, the
bank board, or the bank, and shall be owned, received, held, and
disbursed by the special purpose trust or the trustee for the
financing. None of the compact assets sold by the state pursuant to
this article shall be subject to garnishment, levy, execution,
attachment, or other process, writ, including, but not limited to, a
writ of mandate, or remedy in connection with the assertion or
enforcement of any debt, claim, settlement, or judgment against the
state, the bank board, or the bank.
   (2) On or before the effective date of any sale, the state, acting
through the Director of Finance, upon direction of the bank, shall
notify each tribe that has executed a designated tribal compact that
the particular compact assets that have been sold to the special
purpose trust and irrevocably instruct the tribe that, as of the
applicable effective date and so long as the bonds secured by the
compact assets are outstanding, the compact assets sold are to be
paid directly to the trustee for the applicable bonds of the special
purpose trust. Certification by the Director of Finance that this
notice has been given shall be conclusive evidence thereof for
purposes of this article.
   (3) The state pledges and agrees with the holders of any bonds
issued by the special purpose trust that it will not authorize anyone
other than an Indian tribe with a federally authorized compact to
engage in specified gaming activities within the defined core
geographic market of an Indian tribe that is a party to a designated
tribal compact in violation of the designated tribal compact as
ratified by the Legislature, unless adequate provision is made by law
for the protection of the holders of bonds in a manner consistent
with the indenture or trust agreement pursuant to which the bonds are
issued. The state pledges to and agrees with the holders of any
bonds issued by the special purpose trust that it will (A) enforce
its rights to collect the compact assets sold to the special purpose
trust pursuant to this article, (B) not amend any designated tribal
compact or take any other action, that would in any way diminish,
limit, or impair the rights to receive compact assets sold to the
special purpose trust pursuant to this article, and (C) not in any
way impair the rights and remedies of bondholders or the security for
their bonds until, in each case, those bonds, together with the
interest thereon and costs and expenses in connection with any action
or proceeding on behalf of the bondholders, are fully paid and
discharged or otherwise provided for pursuant to the terms of the
indenture or trust agreement pursuant to which those bonds are
issued. The special purpose trust may include these pledges and
undertakings in its bonds. Notwithstanding any other provision of
this article, inherent police powers that cannot be contracted away
are reserved to the state.
   (b) Bonds issued pursuant to this article shall not be deemed to
constitute a debt of the state nor a pledge of the faith or credit of
the state, and all bonds shall contain on the face of the bond a
statement to the effect that neither the faith and credit nor the
taxing power nor any other assets or revenues of the state or of any
political subdivision of the state other than the special purpose
trust, is or shall be pledged to the payment of the principal of or
the interest on the bonds.
   (c) Whether or not the bonds are of a form and character as to be
negotiable instruments under the terms of the Uniform Commercial
Code, the bonds are hereby made negotiable instruments for all
purposes, subject only to the provisions of the bonds for
registration.
   (d) The special purpose trust and the bank shall be treated as
public agencies for purposes of Chapter 9 (commencing with Section
860) of Title 10 of Part 2 of the Code of Civil Procedure, and any
action or proceeding challenging the validity of any matter
authorized by this article shall be brought in accordance with, and
within the time specified in, that chapter.
   (e) Notwithstanding any other provision of law, the exclusive
means to obtain review of a superior court judgment entered in an
action brought pursuant to Chapter 9 (commencing with Section 860) of
Title 10 of Part 2 of the Code of Civil Procedure to determine the
validity of any bonds to be issued, any other contracts to be entered
into, or any other matters authorized by this article shall be by
petition to the Supreme Court for writ of review. Any such petition
shall be filed within 15 days following the notice of entry of the
superior court judgment, and no extension of that period shall be
allowed. If no petition is filed within the time allowed for this
purpose, or the petition is denied, with or without opinion, the
decision of the superior court shall be final and enforceable as
provided in subdivision (a) of Section 870 of the Code of Civil
Procedure. In any case in which a petition has been filed within the
time allowed, the Supreme Court shall make any orders as it may deem
proper in the circumstances. If no answering party appeared in the
superior court action, the only issues that may be raised in the
petition are those related to the jurisdiction of the superior court.
Nothing in this subdivision or subdivision (d) shall be construed as
granting standing to challenge the designated tribal compacts.




63048.85.  (a) The Legislature finds and declares that, because the
proceeds from the sale of compact assets authorized by this article
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.
   (b) Compact assets shall not be deemed to be "State General Fund
proceeds of taxes appropriated pursuant to Article XIII B" within the
meaning of Section 8 of Article XVI of the California Constitution,
Section 41202 of the Education Code, or any other provision of law.
   (c) Compact assets are not General Fund revenues for the purposes
of Section 8 of Article XVI of the California Constitution or any
other provision of law.



63048.9.  This article and all powers granted hereby shall be
liberally construed to effectuate its intent and their purposes.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Gov > 63048.6-63048.9

GOVERNMENT CODE
SECTION 63048.6-63048.9



63048.6.  The definitions contained in this section are in addition
to the definitions contained in Section 63010 and together with the
definitions contained in that section shall govern the construction
of this article, unless the context requires otherwise:
   (a) "Compact assets" means moneys required to be paid to the state
under Sections 4.3.1 and 4.3.3 of the designated tribal compacts and
the state's rights to receive those payments.
   (b) "Designated tribal compacts" means the amended and new
tribal-state compacts, which are ratified by the Legislature, and
that, among other things, require certain payments to the state in
exchange for the exclusive right of the compact tribes to engage in
certain gaming activities in their respective core geographic
markets, all as specified in the amended and new compacts, and that
are designated by the Director of Finance pursuant to subdivision (a)
of Section 63048.65.
   (c) "Operating expenses" means the reasonable operating expenses
of the special purpose trust and the bank, including, but not limited
to, the costs of preparation of accounting and other reports,
maintenance of the ratings on the bonds, insurance premiums, or other
required activities of the special purpose trust, and fees and
expenses incurred for professional consultants, advisors,
fiduciaries, and legal counsel, including the fees and expenses of
the Attorney General incurred in connection with the enforcement of
the pledges and agreements of the state pursuant to Section 63048.8.




63048.63.  (a) The Legislature hereby finds and declares:
   (1) The financial and legal records of California Indian tribes
and tribal business enterprises are records of a sovereign nation and
are not subject to disclosure by private citizens or the state. This
is explicitly recognized in amendments to tribal-state gaming
compacts ratified by the Legislature, which provide for the
securitization of annual payments to be received from the tribes by
the state or by an agency, trust, fund, or entity specified by the
state.
   (2) In order to review the records of any Indian tribe relative to
this securitization, the compacts require the execution of
nondisclosure agreements.
   (3) State entities statutorily charged with participating in the
bond sale cannot perform those duties in the absence of that
agreement, and the Legislature hereby acknowledges and agrees that
documents containing tribal information are not public records, shall
not be discussed in an open meeting, and that state officials privy
to that information may execute nondisclosure agreements.
   (b) Nothing in Chapter 3.5 of Division 7 of Title 1 (commencing
with Section 6250) or any other provision of law shall permit the
disclosure of any records of an Indian tribe received by the state,
or by an agency, trust fund, or entity specified by the state, in
connection with the sale of any portions of the designated
tribal-state gaming compact assets or the issuance of bonds, or any
summaries or analyses thereof. The transmission of the records, or
the information contained in those records in an alternative form, to
the state or the special purpose trust shall not constitute a waiver
of exemption from disclosure, and the records and information once
transmitted to the state or special purpose trust shall be subject to
this same exemption from disclosure.
   (c) The state and the special purpose trust are authorized to
enter into nondisclosure agreements with Indian tribes agreeing not
to disclose the materials described in subdivision (b).
   (d) The nondisclosure agreements may include provisions limiting
the representatives of the state and the special purpose trust
authorized to review or receive records of the Indian tribe to those
individuals directly working on the sale of portions of the
designated compact assets or the issuance of the bonds.
   (e) Nothing in Article 9 (commencing with Section 11120) of
Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code
shall be construed to prevent the bank from conducting a closed
session to consider any records or information of an Indian tribe or
any summaries or analyses thereof received by the state in connection
with the sale of any portion of the compact assets or the issuance
of bonds.


63048.65.  (a) Upon a filing by the Director of Finance with the
bank of a list of designated tribal compacts and the specific
portions of the compact assets to be sold, the bank may sell for, and
on behalf of, the state, solely as its agent, those specific
portions of the compact assets to a special purpose trust. To that
end, a special purpose trust is hereby established as a
not-for-profit corporation solely for that purpose and for the
purposes necessarily incidental thereto. The bank may enter into one
or more sales agreements with the special purpose trust on terms it
deems appropriate, which may include covenants of, and binding on,
the state necessary to establish and maintain the security of the
bonds and exemption of interest on the bonds from federal income
taxation. The portion of the compact assets to be sold shall be an
amount or amounts determined by the Director of Finance that are
necessary to provide the state with net proceeds of the sale, not to
exceed one billion five hundred million dollars ($1,500,000,000),
exclusive of capitalized interest on the bonds and any costs incurred
by the bank or the special purpose trust in implementing this
article, including, but not limited to, the cost of financing one or
more reserve funds, any credit enhancements, costs incurred in the
issuance of bonds, and operating expenses. Those specific portions of
the compact assets may be sold at one time or from time to time.
   (b) The special purpose trust may issue bonds, including, but not
limited to, refunding bonds, on the terms it shall determine, and do
all things contemplated by, and authorized by, this division with
respect to the bank, and enjoy all rights, privileges, and immunities
the bank enjoys pursuant to this division, or as authorized by
Section 5140 of the Corporations Code with respect to public benefit
nonprofit corporations, or as necessary or appropriate in connection
with the issuance of bonds, and may enter into agreements with any
public or private entity and pledge the compact assets that it
purchased as collateral and security for its bonds. However, to the
extent of any conflict between any of the foregoing and the
provisions of this article, the provisions of this article shall
control. The pledge of any of these assets and of any revenues,
reserves, and earnings pledged in connection with these assets shall
be valid and binding in accordance with its terms from the time the
pledge is made, and amounts so pledged and thereafter received shall
immediately be subject to the lien of the pledge without the need for
physical delivery, recordation, filing, or other further act. The
special purpose trust, and its assets and income, and bonds issued by
the special purpose trust, and their transfer and the income
therefrom, shall be exempt from all taxation by the state and by its
political subdivisions.
   (c) (1) The net proceeds of the sale of compact assets by the bank
shall be deposited in the following order:
   (A) One billion two hundred million dollars ($1,200,000,000) plus
any interest due pursuant to paragraph (3) of subdivision (c) of
Section 14556.8, to the Traffic Congestion Relief Fund for the
purpose of funding or reimbursing the cost of projects, programs, and
activities permitted and necessary to be funded by that fund in
accordance with applicable law, and to repay loans made from the
State Highway Account and the Public Transportation Account to the
Traffic Congestion Relief Fund pursuant to Section 14556.8, in the
following priority order:
   (i) Transfer of four hundred forty-three million dollars
($443,000,000) plus any interest due pursuant to paragraph (3) of
subdivision (c) of Section 14556.8, to the State Highway Account for
project expenditures.
   (ii) Two hundred ninety million dollars ($290,000,000) for
allocation to Traffic Congestion Relief Program projects.
   (iii) Two hundred seventy-five million dollars ($275,000,000) to
the Public Transportation Account for project expenditures.
   (iv) All remaining funds for allocation to Traffic Congestion
Relief Program projects.
   (B) To the Transportation Deferred Investment Fund, an amount up
to the outstanding amount of the suspension of the 2004-05 fiscal
year transfer of the sales tax on gasoline to the Transportation
Investment Fund pursuant to requirements of Article XIX B of the
California Constitution.
   (C) To the Transportation Deferred Investment Fund, an amount up
to the outstanding amount of the suspension of the 2003-04 fiscal
year transfer of the sales tax on gasoline to the Transportation
Investment Fund pursuant to requirements of Article XIX B of the
California Constitution.
   (2) Notwithstanding paragraph (1), if and to the extent it is
necessary to ensure to the maximum extent practicable the eligibility
for exclusion from taxation under the federal Internal Revenue Code
of interest on the bonds to be issued by the special purpose trust,
the Director of Finance may adjust the application of proceeds not
eligible for exclusion from taxation among the authorized funds
described in paragraph (1). The Department of Finance shall submit a
report to the Legislature describing any proposed changes among the
authorized funds in paragraph (1), and consistent with this
paragraph, at least 30 days prior to issuing the bonds pursuant to
this article. Amounts deposited in the Traffic Congestion Relief Fund
pursuant to paragraph (1) shall be applied as a credit to transfers
from the General Fund that the Controller would otherwise be required
to make to that fund. Amounts deposited in the Transportation
Deferred Investment Fund shall be expended in conformance with
Sections 7105 and 7106 of the Revenue and Taxation Code, and the
amounts so deposited shall also be applied as a credit to the
transfers from the General Fund that the Controller would otherwise
be required to make under those sections. The Legislature hereby
finds and declares that the deposits and credits described in this
subdivision do not constitute the use of the proceeds of bonds or
other indebtedness to pay a yearend State Budget deficit as
prohibited by subdivision (c) of Section 1.3 of Article XVI of the
California Constitution. Subject to any constitutional limitation,
the use and application of the proceeds of any sale of compact assets
or bonds shall not in any way affect the legality or validity of
that sale or those bonds.
   (d) Funds received from amended tribal-state compacts, or new
compacts entered into and ratified on or after the effective date of
this article, pursuant to Section 4.3.1 of the amended compacts, or
the comparable section in new compacts, as specified in those
compacts, that are neither sold to the special purpose trust nor
otherwise appropriated, and funds received as a result of the state's
acquisition of an ownership interest in any residual interest in
compact assets attributable to Section 4.3.1 of the amended compacts,
or the comparable section in new compacts, as specified in those
compacts, shall be remitted to the California Gambling Control
Commission for deposit in the General Fund.
   (e) Funds received from amended tribal-state compacts, or new
compacts entered into and ratified on or after the effective date of
this article, pursuant to Section 4.3.3 of the amended compacts, or
the comparable section in new compacts, as specified in those
compacts, shall be held in an account within the Special Deposit Fund
until those funds are sold or otherwise applied pursuant to this
subdivision. From time to time, at the direction of the Director of
Finance, any moneys in this account shall be deposited and applied in
accordance with subdivision (c) or shall be deemed to be compact
assets for purposes of sale to the special purpose trust pursuant to
this article. If the Director of Finance determines that the bonds
authorized pursuant to this article cannot be successfully issued by
the special purpose trust, funds within the account shall be
deposited in accordance with subdivision (c). In addition, all
subsequent revenues remitted pursuant to Section 4.3.3 of the amended
compacts, or the comparable section in new compacts, as specified in
those compacts, and funds received as a result of the state's
acquisition of an ownership interest in any residual interest in
compact assets attributable to Section 4.3.3 of the amended compacts,
or the comparable section in new compacts, as specified in those
compacts, shall be used to satisfy the purposes of subdivision (c).
When the amounts described in subdivision (c) have been paid to the
funds named in that subdivision either pursuant to this article or by
other appropriations or transfers, thereafter the revenues received
by the state from Section 4.3.3 of the compact shall be remitted to
the California Gambling Control Commission for deposit in the General
Fund.
   (f) The principal office of the special purpose trust shall be
located in the County of Sacramento. The articles of incorporation of
the special purpose trust shall be prepared and filed, on behalf of
the state, with the Secretary of State by the bank. The members of
the board of directors of the bank as of the effective date of this
article, the Director of the Department of Transportation, and the
Director of General Services, shall each serve ex officio as the
directors of the special purpose trust. Any of these directors may
name a designee to act on his or her behalf as a director of the
special purpose trust. The Director of Finance or his or her designee
shall serve as chair of the special purpose trust. Directors of the
special purpose trust shall not be subject to personal liability for
carrying out the powers and duties conferred by this article. The
Legislature hereby finds and declares that the duties and
responsibilities of the directors of the special purpose trust and
the duties and responsibilities of the Director of Finance
established under this article are within the scope of the primary
duties of those persons in their official capacities. The special
purpose trust shall be treated as a separate legal entity with its
separate corporate purpose as described in this article, and the
assets, liabilities, and funds of the special purpose trust shall be
neither consolidated nor commingled with those of the bank.




63048.66.  (a) Notwithstanding Section 63048.65 or any other
provision of this article, compact assets that are subject to
designation by the Director of Finance for sale pursuant to
subdivision (a) of Section 63048.65 and that are timely deposited or
are due for deposit in the Special Deposit Fund on or after July 1,
2008, and on or before June 30, 2011, shall not be available for the
purpose of Section 63048.65.
   (b) The Director of Finance shall determine the portion of the
compact assets described in subdivision (a) that are attributable to
payments made for each fiscal year. The Director of Finance may
direct the Controller, by separate order applicable to the assets for
each fiscal year, to transfer the compact assets attributable to
that fiscal year from the Special Deposit Fund to the General Fund.
   (c) Upon order of the Director of Finance, the Controller shall
transfer the compact assets as provided in subdivision (b).
   (d) If any legal challenges to the issuance of bonds pursuant to
this article are settled sufficiently for the bonds to be sold, the
following shall occur:
   (1) Notwithstanding subdivision (a), the tribal assets described
in subdivision (a) that are in the Special Deposit Fund, or are still
due for payment to the Special Deposit Fund, may be made available
for sale pursuant to subdivision (a) of Section 63048.65.
   (2) The transfer of any compact assets to the General Fund
pursuant to this section shall be suspended until after the bonds are
sold, and any possible future transfers to the General Fund shall be
consistent with the provisions of the bond sale.



63048.7.  Notwithstanding any other provision of this division,
Article 3 (commencing with Section 63040), Article 4 (commencing with
Section 63042), and Article 5 (commencing with Section 63043) do not
apply to any bonds issued by the special purpose trust established
by this article. All matters authorized in this article are in
addition to powers granted to the bank in this division.



63048.75.  Any sale of some or all of the compact assets under this
article shall be treated as a true sale and absolute transfer of the
property so transferred to the special purpose trust and not as a
pledge or grant of a security interest by the state, the bank board,
or the bank for any borrowing. The characterization of the sale of
any of those assets as an absolute transfer by the participants shall
not be negated or adversely affected by the fact that only a portion
of the compact assets is transferred, nor by the state's acquisition
of an ownership interest in any residual interest in the compact
assets, nor by any characterization of the special purpose trust or
its bonds for purposes of accounting, taxation, or securities
regulation, nor by any other factor whatsoever.



63048.8.  (a) (1) On and after the effective date of each sale of
compact assets, the state shall have no right, title, or interest in
or to the compact assets sold, and the compact assets so sold shall
be property of the special purpose trust and not of the state, the
bank board, or the bank, and shall be owned, received, held, and
disbursed by the special purpose trust or the trustee for the
financing. None of the compact assets sold by the state pursuant to
this article shall be subject to garnishment, levy, execution,
attachment, or other process, writ, including, but not limited to, a
writ of mandate, or remedy in connection with the assertion or
enforcement of any debt, claim, settlement, or judgment against the
state, the bank board, or the bank.
   (2) On or before the effective date of any sale, the state, acting
through the Director of Finance, upon direction of the bank, shall
notify each tribe that has executed a designated tribal compact that
the particular compact assets that have been sold to the special
purpose trust and irrevocably instruct the tribe that, as of the
applicable effective date and so long as the bonds secured by the
compact assets are outstanding, the compact assets sold are to be
paid directly to the trustee for the applicable bonds of the special
purpose trust. Certification by the Director of Finance that this
notice has been given shall be conclusive evidence thereof for
purposes of this article.
   (3) The state pledges and agrees with the holders of any bonds
issued by the special purpose trust that it will not authorize anyone
other than an Indian tribe with a federally authorized compact to
engage in specified gaming activities within the defined core
geographic market of an Indian tribe that is a party to a designated
tribal compact in violation of the designated tribal compact as
ratified by the Legislature, unless adequate provision is made by law
for the protection of the holders of bonds in a manner consistent
with the indenture or trust agreement pursuant to which the bonds are
issued. The state pledges to and agrees with the holders of any
bonds issued by the special purpose trust that it will (A) enforce
its rights to collect the compact assets sold to the special purpose
trust pursuant to this article, (B) not amend any designated tribal
compact or take any other action, that would in any way diminish,
limit, or impair the rights to receive compact assets sold to the
special purpose trust pursuant to this article, and (C) not in any
way impair the rights and remedies of bondholders or the security for
their bonds until, in each case, those bonds, together with the
interest thereon and costs and expenses in connection with any action
or proceeding on behalf of the bondholders, are fully paid and
discharged or otherwise provided for pursuant to the terms of the
indenture or trust agreement pursuant to which those bonds are
issued. The special purpose trust may include these pledges and
undertakings in its bonds. Notwithstanding any other provision of
this article, inherent police powers that cannot be contracted away
are reserved to the state.
   (b) Bonds issued pursuant to this article shall not be deemed to
constitute a debt of the state nor a pledge of the faith or credit of
the state, and all bonds shall contain on the face of the bond a
statement to the effect that neither the faith and credit nor the
taxing power nor any other assets or revenues of the state or of any
political subdivision of the state other than the special purpose
trust, is or shall be pledged to the payment of the principal of or
the interest on the bonds.
   (c) Whether or not the bonds are of a form and character as to be
negotiable instruments under the terms of the Uniform Commercial
Code, the bonds are hereby made negotiable instruments for all
purposes, subject only to the provisions of the bonds for
registration.
   (d) The special purpose trust and the bank shall be treated as
public agencies for purposes of Chapter 9 (commencing with Section
860) of Title 10 of Part 2 of the Code of Civil Procedure, and any
action or proceeding challenging the validity of any matter
authorized by this article shall be brought in accordance with, and
within the time specified in, that chapter.
   (e) Notwithstanding any other provision of law, the exclusive
means to obtain review of a superior court judgment entered in an
action brought pursuant to Chapter 9 (commencing with Section 860) of
Title 10 of Part 2 of the Code of Civil Procedure to determine the
validity of any bonds to be issued, any other contracts to be entered
into, or any other matters authorized by this article shall be by
petition to the Supreme Court for writ of review. Any such petition
shall be filed within 15 days following the notice of entry of the
superior court judgment, and no extension of that period shall be
allowed. If no petition is filed within the time allowed for this
purpose, or the petition is denied, with or without opinion, the
decision of the superior court shall be final and enforceable as
provided in subdivision (a) of Section 870 of the Code of Civil
Procedure. In any case in which a petition has been filed within the
time allowed, the Supreme Court shall make any orders as it may deem
proper in the circumstances. If no answering party appeared in the
superior court action, the only issues that may be raised in the
petition are those related to the jurisdiction of the superior court.
Nothing in this subdivision or subdivision (d) shall be construed as
granting standing to challenge the designated tribal compacts.




63048.85.  (a) The Legislature finds and declares that, because the
proceeds from the sale of compact assets authorized by this article
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.
   (b) Compact assets shall not be deemed to be "State General Fund
proceeds of taxes appropriated pursuant to Article XIII B" within the
meaning of Section 8 of Article XVI of the California Constitution,
Section 41202 of the Education Code, or any other provision of law.
   (c) Compact assets are not General Fund revenues for the purposes
of Section 8 of Article XVI of the California Constitution or any
other provision of law.



63048.9.  This article and all powers granted hereby shall be
liberally construed to effectuate its intent and their purposes.