2704.10. (a) Bonds in the total amount of nine billion nine hundred
fifty million dollars ($9,950,000,000), exclusive of refunding bonds
issued in accordance with Section 2704.19, or so 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 chapter and to be used 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 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
principal of, and interest on, the bonds as the principal and
interest become due and payable.
(b) The Treasurer shall sell the bonds authorized by the committee
pursuant to this section. The bonds shall be sold upon the terms and
conditions specified in a resolution to be adopted by the committee
pursuant to Section 16731 of the Government Code.
2704.11. (a) Except as provided in subdivision (b), the bonds
authorized by this chapter shall be prepared, executed, issued, sold,
paid, and redeemed as provided in the State General Obligation Bond
Law, Chapter 4 (commencing with Section 16720) of Part 3 of Division
4 of Title 2 of the Government Code, and all of the provisions of
that law apply to the bonds and to this chapter and are hereby
incorporated in this chapter as though set forth in full in this
chapter.
(b) Notwithstanding any provision of the State General Obligation
Bond Law, each issue of bonds authorized by the committee shall have
a final maturity of not more than 40 years from the date of original
issuance thereof.
2704.12. (a) Solely for the purpose of authorizing the issuance and
sale of the bonds authorized by this chapter and the making of those
determinations and the taking of other actions as are authorized by
this chapter, pursuant to the State General Obligation Bond Law, the
High-Speed Passenger Train Finance Committee is hereby created. For
purposes of this chapter, the High-Speed Passenger Train Finance
Committee is "the committee" as that term is used in the State
General Obligation Bond Law. The committee consists of the Treasurer,
the Director of Finance, the Controller, the Secretary of Business,
Transportation and Housing, and the chairperson of the authority.
Notwithstanding any other provision of law, any member of the
committee may designate a representative to act as that member in his
or her place and stead for all purposes, as though the member were
personally present. The Treasurer shall serve as chairperson of the
committee. A majority of the committee shall constitute a quorum of
the committee, and may act for the committee.
(b) For purposes of the State General Obligation Bond Law, the
authority is designated the "board."
2704.13. The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
chapter in order to carry out the actions specified in Sections
2704.06 and 2704.095 and, if so, the amount of bonds to be issued and
sold. Successive issues of bonds may be issued and sold to carry out
those actions progressively, and it is not necessary that all of the
bonds authorized be issued and sold at any one time. The committee
shall consider program funding needs, revenue projections, financial
market conditions, and other necessary factors in determining the
term for the bonds to be issued. In addition to all other powers
specifically granted in this chapter and the State General Obligation
Bond Law, the committee may do all things necessary or convenient to
carry out the powers and purposes of this article, including the
approval of any indenture relating to the bonds, and the delegation
of necessary duties to the chairperson and to the Treasurer as agent
for the sale of the bonds. Any terms of any bonds issued under this
chapter may be provided under an indenture instead of under a
resolution, as determined by the committee.
2704.14. 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 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
which is necessary to collect that additional sum.
2704.15. Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this chapter, an amount equal to the
total of the following: (a) that sum annually necessary to pay the
principal of, and interest on, bonds issued and sold pursuant to this
chapter, as the principal and interest become due and payable, and
(b) the sum necessary to carry out Section 2704.17, appropriated
without regard to fiscal years.
2704.16. The board 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 purposes of this
chapter. The amount of the request shall not exceed the amount of the
unsold bonds which the committee has, by resolution, authorized to
be sold for the purpose of this chapter, less any amount borrowed
pursuant to Section 2701.17. The board shall execute such documents
as required by the Pooled Money Investment Board to obtain and repay
the loan. Any amount loaned shall be deposited in the fund to be
allocated by the board in accordance with this chapter.
2704.17. For the purpose of carrying out this chapter, the Director
of Finance may authorize the withdrawal from the General Fund of an
amount or amounts not to exceed the amount of unsold bonds which have
been authorized by the committee to be sold for the purpose of
carrying out this chapter, less any amount borrowed pursuant to
Section 2704.16. Any amount withdrawn shall be deposited in the fund.
Any money made available under this section shall be returned to the
General Fund, plus the interest that the amounts would have earned
in the Pooled Money Investment Account, from the sale of bonds for
the purpose of carrying out this chapter.
2704.18. All money deposited in the fund which is derived from
premium on bonds sold shall be available to pay costs of issuing the
bonds, and to the extent not so needed, together with accrued
interest derived from sale of the bonds, shall be available for
transfer to the General Fund as a credit to expenditures for bond
interest.
2704.19. The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of the State General Obligation Bond
Law. Approval by the electors of the state for the issuance of bonds
shall include approval of the issuance of any bonds issued to refund
any bonds originally issued or any previously issued refunding bonds.
2704.20. The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this chapter are
not "proceeds of taxes" as that term is used in Article XIII B of
the California Constitution, the disbursement of these proceeds is
not subject to the limitations imposed by that article.
2704.21. Notwithstanding any provision of this chapter or the State
General Obligation Bond Law, if the Treasurer sells bonds pursuant
to this chapter that include a bond counsel opinion to the effect
that the interest on the bonds is excluded from gross income for
federal tax purposes under designated conditions, the Treasurer may
maintain separate accounts for the bond proceeds invested and the
investment earnings on those proceeds, and may use or direct the use
of those proceeds or earnings to pay any rebate, penalty, or other
payment required under federal law, or take any other action with
respect to the investment and use of those bond proceeds, as may be
required or desirable under federal law in order 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.
2704.10. (a) Bonds in the total amount of nine billion nine hundred
fifty million dollars ($9,950,000,000), exclusive of refunding bonds
issued in accordance with Section 2704.19, or so 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 chapter and to be used 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 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
principal of, and interest on, the bonds as the principal and
interest become due and payable.
(b) The Treasurer shall sell the bonds authorized by the committee
pursuant to this section. The bonds shall be sold upon the terms and
conditions specified in a resolution to be adopted by the committee
pursuant to Section 16731 of the Government Code.
2704.11. (a) Except as provided in subdivision (b), the bonds
authorized by this chapter shall be prepared, executed, issued, sold,
paid, and redeemed as provided in the State General Obligation Bond
Law, Chapter 4 (commencing with Section 16720) of Part 3 of Division
4 of Title 2 of the Government Code, and all of the provisions of
that law apply to the bonds and to this chapter and are hereby
incorporated in this chapter as though set forth in full in this
chapter.
(b) Notwithstanding any provision of the State General Obligation
Bond Law, each issue of bonds authorized by the committee shall have
a final maturity of not more than 40 years from the date of original
issuance thereof.
2704.12. (a) Solely for the purpose of authorizing the issuance and
sale of the bonds authorized by this chapter and the making of those
determinations and the taking of other actions as are authorized by
this chapter, pursuant to the State General Obligation Bond Law, the
High-Speed Passenger Train Finance Committee is hereby created. For
purposes of this chapter, the High-Speed Passenger Train Finance
Committee is "the committee" as that term is used in the State
General Obligation Bond Law. The committee consists of the Treasurer,
the Director of Finance, the Controller, the Secretary of Business,
Transportation and Housing, and the chairperson of the authority.
Notwithstanding any other provision of law, any member of the
committee may designate a representative to act as that member in his
or her place and stead for all purposes, as though the member were
personally present. The Treasurer shall serve as chairperson of the
committee. A majority of the committee shall constitute a quorum of
the committee, and may act for the committee.
(b) For purposes of the State General Obligation Bond Law, the
authority is designated the "board."
2704.13. The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
chapter in order to carry out the actions specified in Sections
2704.06 and 2704.095 and, if so, the amount of bonds to be issued and
sold. Successive issues of bonds may be issued and sold to carry out
those actions progressively, and it is not necessary that all of the
bonds authorized be issued and sold at any one time. The committee
shall consider program funding needs, revenue projections, financial
market conditions, and other necessary factors in determining the
term for the bonds to be issued. In addition to all other powers
specifically granted in this chapter and the State General Obligation
Bond Law, the committee may do all things necessary or convenient to
carry out the powers and purposes of this article, including the
approval of any indenture relating to the bonds, and the delegation
of necessary duties to the chairperson and to the Treasurer as agent
for the sale of the bonds. Any terms of any bonds issued under this
chapter may be provided under an indenture instead of under a
resolution, as determined by the committee.
2704.14. 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 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
which is necessary to collect that additional sum.
2704.15. Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this chapter, an amount equal to the
total of the following: (a) that sum annually necessary to pay the
principal of, and interest on, bonds issued and sold pursuant to this
chapter, as the principal and interest become due and payable, and
(b) the sum necessary to carry out Section 2704.17, appropriated
without regard to fiscal years.
2704.16. The board 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 purposes of this
chapter. The amount of the request shall not exceed the amount of the
unsold bonds which the committee has, by resolution, authorized to
be sold for the purpose of this chapter, less any amount borrowed
pursuant to Section 2701.17. The board shall execute such documents
as required by the Pooled Money Investment Board to obtain and repay
the loan. Any amount loaned shall be deposited in the fund to be
allocated by the board in accordance with this chapter.
2704.17. For the purpose of carrying out this chapter, the Director
of Finance may authorize the withdrawal from the General Fund of an
amount or amounts not to exceed the amount of unsold bonds which have
been authorized by the committee to be sold for the purpose of
carrying out this chapter, less any amount borrowed pursuant to
Section 2704.16. Any amount withdrawn shall be deposited in the fund.
Any money made available under this section shall be returned to the
General Fund, plus the interest that the amounts would have earned
in the Pooled Money Investment Account, from the sale of bonds for
the purpose of carrying out this chapter.
2704.18. All money deposited in the fund which is derived from
premium on bonds sold shall be available to pay costs of issuing the
bonds, and to the extent not so needed, together with accrued
interest derived from sale of the bonds, shall be available for
transfer to the General Fund as a credit to expenditures for bond
interest.
2704.19. The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of the State General Obligation Bond
Law. Approval by the electors of the state for the issuance of bonds
shall include approval of the issuance of any bonds issued to refund
any bonds originally issued or any previously issued refunding bonds.
2704.20. The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this chapter are
not "proceeds of taxes" as that term is used in Article XIII B of
the California Constitution, the disbursement of these proceeds is
not subject to the limitations imposed by that article.
2704.21. Notwithstanding any provision of this chapter or the State
General Obligation Bond Law, if the Treasurer sells bonds pursuant
to this chapter that include a bond counsel opinion to the effect
that the interest on the bonds is excluded from gross income for
federal tax purposes under designated conditions, the Treasurer may
maintain separate accounts for the bond proceeds invested and the
investment earnings on those proceeds, and may use or direct the use
of those proceeds or earnings to pay any rebate, penalty, or other
payment required under federal law, or take any other action with
respect to the investment and use of those bond proceeds, as may be
required or desirable under federal law in order 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.
2704.10. (a) Bonds in the total amount of nine billion nine hundred
fifty million dollars ($9,950,000,000), exclusive of refunding bonds
issued in accordance with Section 2704.19, or so 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 chapter and to be used 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 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
principal of, and interest on, the bonds as the principal and
interest become due and payable.
(b) The Treasurer shall sell the bonds authorized by the committee
pursuant to this section. The bonds shall be sold upon the terms and
conditions specified in a resolution to be adopted by the committee
pursuant to Section 16731 of the Government Code.
2704.11. (a) Except as provided in subdivision (b), the bonds
authorized by this chapter shall be prepared, executed, issued, sold,
paid, and redeemed as provided in the State General Obligation Bond
Law, Chapter 4 (commencing with Section 16720) of Part 3 of Division
4 of Title 2 of the Government Code, and all of the provisions of
that law apply to the bonds and to this chapter and are hereby
incorporated in this chapter as though set forth in full in this
chapter.
(b) Notwithstanding any provision of the State General Obligation
Bond Law, each issue of bonds authorized by the committee shall have
a final maturity of not more than 40 years from the date of original
issuance thereof.
2704.12. (a) Solely for the purpose of authorizing the issuance and
sale of the bonds authorized by this chapter and the making of those
determinations and the taking of other actions as are authorized by
this chapter, pursuant to the State General Obligation Bond Law, the
High-Speed Passenger Train Finance Committee is hereby created. For
purposes of this chapter, the High-Speed Passenger Train Finance
Committee is "the committee" as that term is used in the State
General Obligation Bond Law. The committee consists of the Treasurer,
the Director of Finance, the Controller, the Secretary of Business,
Transportation and Housing, and the chairperson of the authority.
Notwithstanding any other provision of law, any member of the
committee may designate a representative to act as that member in his
or her place and stead for all purposes, as though the member were
personally present. The Treasurer shall serve as chairperson of the
committee. A majority of the committee shall constitute a quorum of
the committee, and may act for the committee.
(b) For purposes of the State General Obligation Bond Law, the
authority is designated the "board."
2704.13. The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
chapter in order to carry out the actions specified in Sections
2704.06 and 2704.095 and, if so, the amount of bonds to be issued and
sold. Successive issues of bonds may be issued and sold to carry out
those actions progressively, and it is not necessary that all of the
bonds authorized be issued and sold at any one time. The committee
shall consider program funding needs, revenue projections, financial
market conditions, and other necessary factors in determining the
term for the bonds to be issued. In addition to all other powers
specifically granted in this chapter and the State General Obligation
Bond Law, the committee may do all things necessary or convenient to
carry out the powers and purposes of this article, including the
approval of any indenture relating to the bonds, and the delegation
of necessary duties to the chairperson and to the Treasurer as agent
for the sale of the bonds. Any terms of any bonds issued under this
chapter may be provided under an indenture instead of under a
resolution, as determined by the committee.
2704.14. 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 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
which is necessary to collect that additional sum.
2704.15. Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this chapter, an amount equal to the
total of the following: (a) that sum annually necessary to pay the
principal of, and interest on, bonds issued and sold pursuant to this
chapter, as the principal and interest become due and payable, and
(b) the sum necessary to carry out Section 2704.17, appropriated
without regard to fiscal years.
2704.16. The board 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 purposes of this
chapter. The amount of the request shall not exceed the amount of the
unsold bonds which the committee has, by resolution, authorized to
be sold for the purpose of this chapter, less any amount borrowed
pursuant to Section 2701.17. The board shall execute such documents
as required by the Pooled Money Investment Board to obtain and repay
the loan. Any amount loaned shall be deposited in the fund to be
allocated by the board in accordance with this chapter.
2704.17. For the purpose of carrying out this chapter, the Director
of Finance may authorize the withdrawal from the General Fund of an
amount or amounts not to exceed the amount of unsold bonds which have
been authorized by the committee to be sold for the purpose of
carrying out this chapter, less any amount borrowed pursuant to
Section 2704.16. Any amount withdrawn shall be deposited in the fund.
Any money made available under this section shall be returned to the
General Fund, plus the interest that the amounts would have earned
in the Pooled Money Investment Account, from the sale of bonds for
the purpose of carrying out this chapter.
2704.18. All money deposited in the fund which is derived from
premium on bonds sold shall be available to pay costs of issuing the
bonds, and to the extent not so needed, together with accrued
interest derived from sale of the bonds, shall be available for
transfer to the General Fund as a credit to expenditures for bond
interest.
2704.19. The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of the State General Obligation Bond
Law. Approval by the electors of the state for the issuance of bonds
shall include approval of the issuance of any bonds issued to refund
any bonds originally issued or any previously issued refunding bonds.
2704.20. The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this chapter are
not "proceeds of taxes" as that term is used in Article XIII B of
the California Constitution, the disbursement of these proceeds is
not subject to the limitations imposed by that article.
2704.21. Notwithstanding any provision of this chapter or the State
General Obligation Bond Law, if the Treasurer sells bonds pursuant
to this chapter that include a bond counsel opinion to the effect
that the interest on the bonds is excluded from gross income for
federal tax purposes under designated conditions, the Treasurer may
maintain separate accounts for the bond proceeds invested and the
investment earnings on those proceeds, and may use or direct the use
of those proceeds or earnings to pay any rebate, penalty, or other
payment required under federal law, or take any other action with
respect to the investment and use of those bond proceeds, as may be
required or desirable under federal law in order 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.
