HEALTH AND SAFETY CODE
SECTION 125291.10-125291.85
125291.10. This article shall be known, and may be cited, as the
California Stem Cell Research and Cures Bond Act of 2004.
125291.15. As used in this article, the following terms have the
following meaning:
(a) "Act" means the California Stem Cell Research and Cures Bond
Act constituting Chapter 3 (commencing with Section 125290.10) of
Part 5 of Division 106.
(b) "Board" or "institute" means the California Institute for
Regenerative Medicine designated in accordance with subdivision (b)
of Section 125291.40.
(c) "Committee" means the California Stem Cell Research and Cures
Finance Committee created pursuant to subdivision (a) of Section
125291.40.
(d) "Fund" means the California Stem Cell Research and Cures Fund
created pursuant to Section 125291.25.
(e) "Interim debt" means any interim loans pursuant to subdivision
(b) of Section 125290.70, and Sections 125291.60 and 125291.65, bond
anticipation notes or commercial paper notes issued to make deposits
into the fund and which will be paid from the proceeds of bonds
issued pursuant to this article.
125291.20. (a) Notwithstanding Section 13340 of the Government Code
or any other provision of law, moneys in the fund are appropriated
without regard to fiscal years to the institute for the purpose of
(1) making grants or loans to fund research and construct facilities
for research, all as described in and pursuant to the act, (2) paying
general administrative costs of the institute (not to exceed 3
percent of the net proceeds of each sale of bonds), (3) paying the
annual administration costs of the interim debt or bonds after
December 31 of the fifth full calendar year after this article takes
effect, (4) paying the costs of issuing interim debt, paying the
annual administration costs of the interim debt until and including
December 31 of the fifth full calendar year after this article takes
effect, and paying interest on interim debt, if such interim debt is
incurred or issued on or prior to December 31 of the fifth full
calendar year after this article takes effect, and (5) paying the
costs of issuing bonds, paying the annual administration costs of the
bonds until and including December 31 of the fifth full calendar
year after this article takes effect, and paying interest on bonds
that accrues on or prior to December 31 of the fifth full calendar
year after this article takes effect (except that such limitation
does not apply to premium and accrued interest as provided in Section
125291.70). In addition, moneys in the fund or other proceeds of the
sale of bonds authorized by this article may be used to pay
principal of or redemption premium on any interim debt issued prior
to the issuance of bonds authorized by this article. Moneys deposited
in the fund from the proceeds of interim debt may be used to pay
general administrative costs of the institute without regard to the 3
percent limit set forth in (2) above, so long as such 3 percent
limit is satisfied for each issue of bonds.
(b) Repayment of principal and interest on any loans made by the
institute pursuant to this article shall be deposited in the fund and
used to make additional grants and loans for the purposes of this
act or for paying continuing costs of the annual administration of
outstanding bonds.
125291.25. The proceeds of interim debt and bonds issued and sold
pursuant to this article shall be deposited in the State Treasury to
the credit of the California Stem Cell Research and Cures Fund, which
is hereby created in the State Treasury, except to the extent that
proceeds of the issuance of bonds are used directly to repay interim
debt.
125291.30. Bonds in the total amount of three billion dollars
($3,000,000,000), not including the amount of any refunding bonds
issued in accordance with Section 125291.75, or as much thereof as is
necessary, may be issued and sold to provide a fund to be used for
carrying out the purposes expressed in this article and to be used
and sold for carrying out the purposes of Section 125291.20 and to
reimburse the General Obligation Bond Expense Revolving Fund pursuant
to Section 16724.5 of the Government Code. The bonds, when sold,
shall be and shall constitute a valid and binding obligation 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 the
principal of, and interest on, the bonds as the principal and
interest become due and payable.
125291.35. The bonds authorized by this article 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 of Title 2 of the Government Code),
and all of the provisions of that law except Section 16727 apply to
the bonds and to this article and are hereby incorporated in this
article as though set forth in full in this article.
125291.40. (a) Solely for the purpose of authorizing the issuance
and sale, pursuant to the State General Obligation Bond Law, of the
bonds and interim debt authorized by this article, the California
Stem Cell Research and Cures Finance Committee is hereby created. For
purposes of this article, the California Stem Cell Research and
Cures 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, the Chairperson
of the California Institute for Regenerative Medicine, and two other
members of the Independent Citizens Oversight Committee (as created
by the act) chosen by the Chairperson of the California Institute for
Regenerative Medicine, or their designated representatives. The
Treasurer shall serve as chairperson of the committee. A majority of
the committee may act for the committee.
(b) For purposes of the State General Obligation Bond Law, the
California Institute for Regenerative Medicine is designated the
"board."
125291.45. (a) The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
article in order to carry out the actions specified in this article
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 it is not necessary that all of the bonds
authorized to be issued be sold at any one time. The bonds may bear
interest which is includable in gross income for federal income tax
purposes if the committee determines that such treatment is necessary
in order to provide funds for the purposes of the act.
(b) The total amount of the bonds authorized by Section 125291.30
which may be issued in any calendar year, commencing in 2005, shall
not exceed three hundred fifty million dollars ($350,000,000). If
less than this amount of bonds is issued in any year, the remaining
permitted amount may be carried over to one or more subsequent years.
(c) An interest-only floating rate bond structure will be
implemented for interim debt and bonds until at least December 31 of
the fifth full calendar year after this article takes effect, with
all interest to be paid from proceeds from the sale of interim debt
or bonds, to minimize debt service payable from the General Fund
during the initial period of basic research and therapy development,
if the committee determines, with the advice of the Treasurer, that
this structure will result in the lowest achievable borrowing costs
for the state during that five-year period considering the objective
of avoiding any bond debt service payments, by the General Fund,
during that period. Upon such initial determination, the committee
may delegate, by resolution, to the Treasurer such authority in
connection with issuance of bonds as it may determine, including, but
not limited to, the authority to implement and continue this bond
financing structure (including during any time following the initial
five-year period) and to determine that an alternate financing plan
would result in significant lower borrowing costs for the state
consistent with the objectives related to the General Fund and to
implement such alternate financing plan.
125291.50. There shall be collected each year and in the same
manner and at the same time as other state revenue is collected, in
addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds maturing
each year. It is the duty of all officers charged by law with any
duty in regard to the collection of the revenue to do and perform
each and every act that is necessary to collect that additional sum.
125291.55. Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this article, 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 article, as the
principal and interest become due and payable.
(b) The sum necessary to carry out Section 125291.60 appropriated
without regard to fiscal years.
125291.60. The Director of Finance may authorize the withdrawal
from the General Fund of an amount or amounts, not to exceed the
amount of the unsold bonds that have been authorized by the
committee, to be sold for the purpose of carrying out this article.
Any amount withdrawn shall be deposited in the fund. Any money made
available under this section shall be returned to the General Fund,
plus an amount equal to the interest that the money would have earned
in the Pooled Money Investment Account, from money received from the
sale of bonds for the purpose of carrying out this article.
125291.65. The institute may request the Pooled Money Investment
Board to make a loan from the Pooled Money Investment Account in
accordance with Section 16312 of the Government Code for the purposes
of carrying out this article. The amount of the request shall not
exceed the amount of the unsold bonds that the committee, by
resolution, has authorized to be sold for the purpose of carrying out
this article. The institute shall execute any documents required by
the Pooled Money Investment Board to obtain and repay the loan. Any
amounts loaned shall be deposited in the fund to be allocated by the
institute in accordance with this article.
125291.70. All money deposited in the fund that is derived from
premium and accrued interest on bonds sold shall be reserved in the
fund and shall be available for transfer to the General Fund as a
credit to expenditures for bond interest.
125291.75. The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of Chapter 4 of Part 3 of Division 4
of Title 2 of the Government Code, which is a part of the State
General Obligation Bond Law. Approval by the voters of the state for
the issuance of the bonds described in this article includes the
approval of the issuance of any bonds issued to refund any bonds
originally issued under this article or any previously issued
refunding bonds.
125291.80. Notwithstanding any provision of this article or the
State General Obligation Bond Law, if the Treasurer sells bonds
pursuant to this article that include a bond counsel opinion to the
effect that the interest on the bonds is excluded from gross income
for federal tax purposes, subject to designated conditions, the
Treasurer may maintain separate accounts for the investment of bond
proceeds and the investment earnings on those proceeds. The Treasurer
may use or direct the use of those proceeds or earnings to pay any
rebate, penalty, or other payment required under federal law or to
take any other action with respect to the investment and use of bond
proceeds required or desirable under federal law 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.
125291.85. Inasmuch as the proceeds from the sale of bonds
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.
HEALTH AND SAFETY CODE
SECTION 125291.10-125291.85
125291.10. This article shall be known, and may be cited, as the
California Stem Cell Research and Cures Bond Act of 2004.
125291.15. As used in this article, the following terms have the
following meaning:
(a) "Act" means the California Stem Cell Research and Cures Bond
Act constituting Chapter 3 (commencing with Section 125290.10) of
Part 5 of Division 106.
(b) "Board" or "institute" means the California Institute for
Regenerative Medicine designated in accordance with subdivision (b)
of Section 125291.40.
(c) "Committee" means the California Stem Cell Research and Cures
Finance Committee created pursuant to subdivision (a) of Section
125291.40.
(d) "Fund" means the California Stem Cell Research and Cures Fund
created pursuant to Section 125291.25.
(e) "Interim debt" means any interim loans pursuant to subdivision
(b) of Section 125290.70, and Sections 125291.60 and 125291.65, bond
anticipation notes or commercial paper notes issued to make deposits
into the fund and which will be paid from the proceeds of bonds
issued pursuant to this article.
125291.20. (a) Notwithstanding Section 13340 of the Government Code
or any other provision of law, moneys in the fund are appropriated
without regard to fiscal years to the institute for the purpose of
(1) making grants or loans to fund research and construct facilities
for research, all as described in and pursuant to the act, (2) paying
general administrative costs of the institute (not to exceed 3
percent of the net proceeds of each sale of bonds), (3) paying the
annual administration costs of the interim debt or bonds after
December 31 of the fifth full calendar year after this article takes
effect, (4) paying the costs of issuing interim debt, paying the
annual administration costs of the interim debt until and including
December 31 of the fifth full calendar year after this article takes
effect, and paying interest on interim debt, if such interim debt is
incurred or issued on or prior to December 31 of the fifth full
calendar year after this article takes effect, and (5) paying the
costs of issuing bonds, paying the annual administration costs of the
bonds until and including December 31 of the fifth full calendar
year after this article takes effect, and paying interest on bonds
that accrues on or prior to December 31 of the fifth full calendar
year after this article takes effect (except that such limitation
does not apply to premium and accrued interest as provided in Section
125291.70). In addition, moneys in the fund or other proceeds of the
sale of bonds authorized by this article may be used to pay
principal of or redemption premium on any interim debt issued prior
to the issuance of bonds authorized by this article. Moneys deposited
in the fund from the proceeds of interim debt may be used to pay
general administrative costs of the institute without regard to the 3
percent limit set forth in (2) above, so long as such 3 percent
limit is satisfied for each issue of bonds.
(b) Repayment of principal and interest on any loans made by the
institute pursuant to this article shall be deposited in the fund and
used to make additional grants and loans for the purposes of this
act or for paying continuing costs of the annual administration of
outstanding bonds.
125291.25. The proceeds of interim debt and bonds issued and sold
pursuant to this article shall be deposited in the State Treasury to
the credit of the California Stem Cell Research and Cures Fund, which
is hereby created in the State Treasury, except to the extent that
proceeds of the issuance of bonds are used directly to repay interim
debt.
125291.30. Bonds in the total amount of three billion dollars
($3,000,000,000), not including the amount of any refunding bonds
issued in accordance with Section 125291.75, or as much thereof as is
necessary, may be issued and sold to provide a fund to be used for
carrying out the purposes expressed in this article and to be used
and sold for carrying out the purposes of Section 125291.20 and to
reimburse the General Obligation Bond Expense Revolving Fund pursuant
to Section 16724.5 of the Government Code. The bonds, when sold,
shall be and shall constitute a valid and binding obligation 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 the
principal of, and interest on, the bonds as the principal and
interest become due and payable.
125291.35. The bonds authorized by this article 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 of Title 2 of the Government Code),
and all of the provisions of that law except Section 16727 apply to
the bonds and to this article and are hereby incorporated in this
article as though set forth in full in this article.
125291.40. (a) Solely for the purpose of authorizing the issuance
and sale, pursuant to the State General Obligation Bond Law, of the
bonds and interim debt authorized by this article, the California
Stem Cell Research and Cures Finance Committee is hereby created. For
purposes of this article, the California Stem Cell Research and
Cures 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, the Chairperson
of the California Institute for Regenerative Medicine, and two other
members of the Independent Citizens Oversight Committee (as created
by the act) chosen by the Chairperson of the California Institute for
Regenerative Medicine, or their designated representatives. The
Treasurer shall serve as chairperson of the committee. A majority of
the committee may act for the committee.
(b) For purposes of the State General Obligation Bond Law, the
California Institute for Regenerative Medicine is designated the
"board."
125291.45. (a) The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
article in order to carry out the actions specified in this article
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 it is not necessary that all of the bonds
authorized to be issued be sold at any one time. The bonds may bear
interest which is includable in gross income for federal income tax
purposes if the committee determines that such treatment is necessary
in order to provide funds for the purposes of the act.
(b) The total amount of the bonds authorized by Section 125291.30
which may be issued in any calendar year, commencing in 2005, shall
not exceed three hundred fifty million dollars ($350,000,000). If
less than this amount of bonds is issued in any year, the remaining
permitted amount may be carried over to one or more subsequent years.
(c) An interest-only floating rate bond structure will be
implemented for interim debt and bonds until at least December 31 of
the fifth full calendar year after this article takes effect, with
all interest to be paid from proceeds from the sale of interim debt
or bonds, to minimize debt service payable from the General Fund
during the initial period of basic research and therapy development,
if the committee determines, with the advice of the Treasurer, that
this structure will result in the lowest achievable borrowing costs
for the state during that five-year period considering the objective
of avoiding any bond debt service payments, by the General Fund,
during that period. Upon such initial determination, the committee
may delegate, by resolution, to the Treasurer such authority in
connection with issuance of bonds as it may determine, including, but
not limited to, the authority to implement and continue this bond
financing structure (including during any time following the initial
five-year period) and to determine that an alternate financing plan
would result in significant lower borrowing costs for the state
consistent with the objectives related to the General Fund and to
implement such alternate financing plan.
125291.50. There shall be collected each year and in the same
manner and at the same time as other state revenue is collected, in
addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds maturing
each year. It is the duty of all officers charged by law with any
duty in regard to the collection of the revenue to do and perform
each and every act that is necessary to collect that additional sum.
125291.55. Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this article, 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 article, as the
principal and interest become due and payable.
(b) The sum necessary to carry out Section 125291.60 appropriated
without regard to fiscal years.
125291.60. The Director of Finance may authorize the withdrawal
from the General Fund of an amount or amounts, not to exceed the
amount of the unsold bonds that have been authorized by the
committee, to be sold for the purpose of carrying out this article.
Any amount withdrawn shall be deposited in the fund. Any money made
available under this section shall be returned to the General Fund,
plus an amount equal to the interest that the money would have earned
in the Pooled Money Investment Account, from money received from the
sale of bonds for the purpose of carrying out this article.
125291.65. The institute may request the Pooled Money Investment
Board to make a loan from the Pooled Money Investment Account in
accordance with Section 16312 of the Government Code for the purposes
of carrying out this article. The amount of the request shall not
exceed the amount of the unsold bonds that the committee, by
resolution, has authorized to be sold for the purpose of carrying out
this article. The institute shall execute any documents required by
the Pooled Money Investment Board to obtain and repay the loan. Any
amounts loaned shall be deposited in the fund to be allocated by the
institute in accordance with this article.
125291.70. All money deposited in the fund that is derived from
premium and accrued interest on bonds sold shall be reserved in the
fund and shall be available for transfer to the General Fund as a
credit to expenditures for bond interest.
125291.75. The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of Chapter 4 of Part 3 of Division 4
of Title 2 of the Government Code, which is a part of the State
General Obligation Bond Law. Approval by the voters of the state for
the issuance of the bonds described in this article includes the
approval of the issuance of any bonds issued to refund any bonds
originally issued under this article or any previously issued
refunding bonds.
125291.80. Notwithstanding any provision of this article or the
State General Obligation Bond Law, if the Treasurer sells bonds
pursuant to this article that include a bond counsel opinion to the
effect that the interest on the bonds is excluded from gross income
for federal tax purposes, subject to designated conditions, the
Treasurer may maintain separate accounts for the investment of bond
proceeds and the investment earnings on those proceeds. The Treasurer
may use or direct the use of those proceeds or earnings to pay any
rebate, penalty, or other payment required under federal law or to
take any other action with respect to the investment and use of bond
proceeds required or desirable under federal law 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.
125291.85. Inasmuch as the proceeds from the sale of bonds
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.
HEALTH AND SAFETY CODE
SECTION 125291.10-125291.85
125291.10. This article shall be known, and may be cited, as the
California Stem Cell Research and Cures Bond Act of 2004.
125291.15. As used in this article, the following terms have the
following meaning:
(a) "Act" means the California Stem Cell Research and Cures Bond
Act constituting Chapter 3 (commencing with Section 125290.10) of
Part 5 of Division 106.
(b) "Board" or "institute" means the California Institute for
Regenerative Medicine designated in accordance with subdivision (b)
of Section 125291.40.
(c) "Committee" means the California Stem Cell Research and Cures
Finance Committee created pursuant to subdivision (a) of Section
125291.40.
(d) "Fund" means the California Stem Cell Research and Cures Fund
created pursuant to Section 125291.25.
(e) "Interim debt" means any interim loans pursuant to subdivision
(b) of Section 125290.70, and Sections 125291.60 and 125291.65, bond
anticipation notes or commercial paper notes issued to make deposits
into the fund and which will be paid from the proceeds of bonds
issued pursuant to this article.
125291.20. (a) Notwithstanding Section 13340 of the Government Code
or any other provision of law, moneys in the fund are appropriated
without regard to fiscal years to the institute for the purpose of
(1) making grants or loans to fund research and construct facilities
for research, all as described in and pursuant to the act, (2) paying
general administrative costs of the institute (not to exceed 3
percent of the net proceeds of each sale of bonds), (3) paying the
annual administration costs of the interim debt or bonds after
December 31 of the fifth full calendar year after this article takes
effect, (4) paying the costs of issuing interim debt, paying the
annual administration costs of the interim debt until and including
December 31 of the fifth full calendar year after this article takes
effect, and paying interest on interim debt, if such interim debt is
incurred or issued on or prior to December 31 of the fifth full
calendar year after this article takes effect, and (5) paying the
costs of issuing bonds, paying the annual administration costs of the
bonds until and including December 31 of the fifth full calendar
year after this article takes effect, and paying interest on bonds
that accrues on or prior to December 31 of the fifth full calendar
year after this article takes effect (except that such limitation
does not apply to premium and accrued interest as provided in Section
125291.70). In addition, moneys in the fund or other proceeds of the
sale of bonds authorized by this article may be used to pay
principal of or redemption premium on any interim debt issued prior
to the issuance of bonds authorized by this article. Moneys deposited
in the fund from the proceeds of interim debt may be used to pay
general administrative costs of the institute without regard to the 3
percent limit set forth in (2) above, so long as such 3 percent
limit is satisfied for each issue of bonds.
(b) Repayment of principal and interest on any loans made by the
institute pursuant to this article shall be deposited in the fund and
used to make additional grants and loans for the purposes of this
act or for paying continuing costs of the annual administration of
outstanding bonds.
125291.25. The proceeds of interim debt and bonds issued and sold
pursuant to this article shall be deposited in the State Treasury to
the credit of the California Stem Cell Research and Cures Fund, which
is hereby created in the State Treasury, except to the extent that
proceeds of the issuance of bonds are used directly to repay interim
debt.
125291.30. Bonds in the total amount of three billion dollars
($3,000,000,000), not including the amount of any refunding bonds
issued in accordance with Section 125291.75, or as much thereof as is
necessary, may be issued and sold to provide a fund to be used for
carrying out the purposes expressed in this article and to be used
and sold for carrying out the purposes of Section 125291.20 and to
reimburse the General Obligation Bond Expense Revolving Fund pursuant
to Section 16724.5 of the Government Code. The bonds, when sold,
shall be and shall constitute a valid and binding obligation 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 the
principal of, and interest on, the bonds as the principal and
interest become due and payable.
125291.35. The bonds authorized by this article 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 of Title 2 of the Government Code),
and all of the provisions of that law except Section 16727 apply to
the bonds and to this article and are hereby incorporated in this
article as though set forth in full in this article.
125291.40. (a) Solely for the purpose of authorizing the issuance
and sale, pursuant to the State General Obligation Bond Law, of the
bonds and interim debt authorized by this article, the California
Stem Cell Research and Cures Finance Committee is hereby created. For
purposes of this article, the California Stem Cell Research and
Cures 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, the Chairperson
of the California Institute for Regenerative Medicine, and two other
members of the Independent Citizens Oversight Committee (as created
by the act) chosen by the Chairperson of the California Institute for
Regenerative Medicine, or their designated representatives. The
Treasurer shall serve as chairperson of the committee. A majority of
the committee may act for the committee.
(b) For purposes of the State General Obligation Bond Law, the
California Institute for Regenerative Medicine is designated the
"board."
125291.45. (a) The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
article in order to carry out the actions specified in this article
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 it is not necessary that all of the bonds
authorized to be issued be sold at any one time. The bonds may bear
interest which is includable in gross income for federal income tax
purposes if the committee determines that such treatment is necessary
in order to provide funds for the purposes of the act.
(b) The total amount of the bonds authorized by Section 125291.30
which may be issued in any calendar year, commencing in 2005, shall
not exceed three hundred fifty million dollars ($350,000,000). If
less than this amount of bonds is issued in any year, the remaining
permitted amount may be carried over to one or more subsequent years.
(c) An interest-only floating rate bond structure will be
implemented for interim debt and bonds until at least December 31 of
the fifth full calendar year after this article takes effect, with
all interest to be paid from proceeds from the sale of interim debt
or bonds, to minimize debt service payable from the General Fund
during the initial period of basic research and therapy development,
if the committee determines, with the advice of the Treasurer, that
this structure will result in the lowest achievable borrowing costs
for the state during that five-year period considering the objective
of avoiding any bond debt service payments, by the General Fund,
during that period. Upon such initial determination, the committee
may delegate, by resolution, to the Treasurer such authority in
connection with issuance of bonds as it may determine, including, but
not limited to, the authority to implement and continue this bond
financing structure (including during any time following the initial
five-year period) and to determine that an alternate financing plan
would result in significant lower borrowing costs for the state
consistent with the objectives related to the General Fund and to
implement such alternate financing plan.
125291.50. There shall be collected each year and in the same
manner and at the same time as other state revenue is collected, in
addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds maturing
each year. It is the duty of all officers charged by law with any
duty in regard to the collection of the revenue to do and perform
each and every act that is necessary to collect that additional sum.
125291.55. Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this article, 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 article, as the
principal and interest become due and payable.
(b) The sum necessary to carry out Section 125291.60 appropriated
without regard to fiscal years.
125291.60. The Director of Finance may authorize the withdrawal
from the General Fund of an amount or amounts, not to exceed the
amount of the unsold bonds that have been authorized by the
committee, to be sold for the purpose of carrying out this article.
Any amount withdrawn shall be deposited in the fund. Any money made
available under this section shall be returned to the General Fund,
plus an amount equal to the interest that the money would have earned
in the Pooled Money Investment Account, from money received from the
sale of bonds for the purpose of carrying out this article.
125291.65. The institute may request the Pooled Money Investment
Board to make a loan from the Pooled Money Investment Account in
accordance with Section 16312 of the Government Code for the purposes
of carrying out this article. The amount of the request shall not
exceed the amount of the unsold bonds that the committee, by
resolution, has authorized to be sold for the purpose of carrying out
this article. The institute shall execute any documents required by
the Pooled Money Investment Board to obtain and repay the loan. Any
amounts loaned shall be deposited in the fund to be allocated by the
institute in accordance with this article.
125291.70. All money deposited in the fund that is derived from
premium and accrued interest on bonds sold shall be reserved in the
fund and shall be available for transfer to the General Fund as a
credit to expenditures for bond interest.
125291.75. The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of Chapter 4 of Part 3 of Division 4
of Title 2 of the Government Code, which is a part of the State
General Obligation Bond Law. Approval by the voters of the state for
the issuance of the bonds described in this article includes the
approval of the issuance of any bonds issued to refund any bonds
originally issued under this article or any previously issued
refunding bonds.
125291.80. Notwithstanding any provision of this article or the
State General Obligation Bond Law, if the Treasurer sells bonds
pursuant to this article that include a bond counsel opinion to the
effect that the interest on the bonds is excluded from gross income
for federal tax purposes, subject to designated conditions, the
Treasurer may maintain separate accounts for the investment of bond
proceeds and the investment earnings on those proceeds. The Treasurer
may use or direct the use of those proceeds or earnings to pay any
rebate, penalty, or other payment required under federal law or to
take any other action with respect to the investment and use of bond
proceeds required or desirable under federal law 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.
125291.85. Inasmuch as the proceeds from the sale of bonds
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.
