19970-19981

EDUCATION CODE
SECTION 19970-19981




19970.  Bonds in the total amount of seventy-five million dollars
($75,000,000) (exclusive of refunding bonds), 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 shall,
when sold, 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.



19971.  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.



19972.  (a) Solely for the purpose of authorizing the issuance and
sale, pursuant to the State General Obligation Bond Law, of the bonds
authorized by this chapter, the California Library Construction and
Renovation Finance Committee is hereby created. For purposes of this
chapter, the California Library Construction and Renovation Finance
Committee is the "committee" as that term is used in the State
General Obligation Bond Law. The committee consists of the Treasurer,
the State Librarian, the Director of Finance, 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 Library Construction and Renovation Board is designated
the "board."



19973.  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 Article 2 (commencing
with Section 19955), 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.



19974.  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, and 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.



19975.  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 that will equal the total
of the following:
   (a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this chapter, as the
principal and interest become due and payable.
   (b) The sum which is necessary to carry out the provisions of
Section 19976, appropriated without regard to fiscal years.



19976.  For the purposes 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 the unsold bonds which
have been authorized to be sold for the purpose of carrying out this
chapter. Any amounts withdrawn shall be deposited in the fund. Any
money made available under this section shall be returned to the
General Fund, with interest at the rate earned by the money in the
Pooled Money Investment Account during the time the money was
withdrawn from the General Fund pursuant to this section from money
received from the sale of bonds for the purpose of carrying out this
chapter.


19976.5.  Notwithstanding any other provision of this bond act, or
of 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), if the Treasurer sells bonds pursuant to this bond act 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.



19977.  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 the purposes of
carrying out 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 carrying out this chapter.
The board 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 board in
accordance with this chapter.


19978.  Any bonds issued and sold pursuant to this chapter may be
refunded by the issuance of refunding bonds in accordance with
Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of
Division 2 of Title 2 of the Government Code. Approval by the
electors of the state for the issuance of bonds shall include the
approval of the issuance of any bonds issued to refund any bonds
originally issued or any previously issued refunding bonds.



19979.  All money deposited in the fund which 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.


19980.  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.




19981.  An amount not to exceed 1 percent of the fund may be used by
the State Librarian for costs of administering this chapter.