63030-63036

GOVERNMENT CODE
SECTION 63030-63036




63030.  Bonds issued by the bank or a special purpose trust are
legal investments for all trust funds, the funds of all insurance
companies, banks, both commercial and savings, trust companies,
executors, administrators, trustees, and other fiduciaries, for state
school funds, pension funds, and for any funds that may be invested
in county, school, or municipal bonds. These bonds are securities
that may legally be deposited with, and received by, any state or
municipal officer or agency or political subdivision of the state for
any purpose for which the deposit of bonds or obligations of the
state is now, or may hereafter be, authorized by law, including,
deposits to secure public funds.



63031.  No liability shall be incurred by the bank beyond the extent
to which funds have been provided under this division. However, for
the purposes of meeting the necessary expenses of initial
organization and operation until the date that the bank derives
revenues or proceeds from bonds as provided under this division, the
bank may borrow money as needed for the purposes of meeting the
necessary expenses of initial organization and operation from the
Pooled Money Investment Account, as specified in subdivision (w) of
Section 63025.1 or from any special funds, including the special
funds of existing financing authorities. The borrowed money shall be
repaid with interest within a reasonable time after the bank receives
revenues or proceeds from bonds as provided under this division.



63032.  (a) Neither the bank nor a special purpose trust authorized
by the bank is required to pay any property taxes or assessments
upon, or with respect to, any project or any property acquired by, or
for, the bank under this division, or upon the income therefrom, so
long as the bank, on behalf of the state, holds title to the project
or to the property contained in the project.
   (b) The exemption of the bank or of a special purpose trust from
taxation of any property shall cease when title to the property is
transferred from the bank to any taxable person or entity. This
section does not exempt any taxable person or entity from taxation,
including, but not limited to, taxation upon a possessory interest,
with respect to any project, or the property of facilities contained
in any project that may otherwise be applicable to the person.



63033.  The state does hereby pledge to, and agrees with, the
holders of any bonds issued under this division, and with those
parties who may enter into contracts with the bank pursuant to this
division, that the state will not limit or alter the rights hereby
vested in the bank to finance any project and to fulfill the terms of
any loan agreement, lease, or other contract with the agency
pursuant to this division, or in any way impair the rights or
remedies of the bondholders or of the parties until those bonds,
together with interest thereon, are fully discharged or provision for
this discharge has been made and those contracts are fully performed
on the part of the bank. The bank, as agent for the state, may
include this pledge and undertaking for the state in its obligations
or contracts.



63034.  The bank shall establish a reasonable schedule of
administrative fees, which shall be paid by the sponsor or the
participating party pursuant to Section 63074, to reimburse the state
for the costs of administering this division.



63035.  The bank shall, not later than November 1 of each year,
submit to the Governor and the Joint Legislative Budget Committee a
report of its activities pursuant to this division for the preceding
fiscal year. The report shall include all of the following:
   (a) (1) A listing of applications accepted, including a
description of the expected employment impact of each project.
   (2) A separate summary of applications for the Infrastructure
State Revolving Fund Program, including a summary of the number of
preliminary applications that did not receive funding and the reason
the applicant did not qualify.
   (b) A specification of bonds sold and interest rates thereon.
   (c) The amount of other public and private funds leveraged by the
assistance provided.
   (d) A report of revenues and expenditures for the preceding fiscal
year, including all of the bank's costs. The information provided
pursuant to this subdivision shall include, but need not be limited
to, both of the following:
   (1) The amount and source of total bank revenues. Revenues shall
be shown by main categories of revenues, including interest earnings,
fees collected, and bond proceeds, for each bank program.
   (2) The amount and type of total bank expenditures. Expenditures
shall be shown by major categories of expenditures, including loans
provided, debt service payments, and program support costs, for each
bank program.
   (e) A projection of the bank's needs and requirements for the
coming year.
   (f) Recommendations for changes in state and federal law necessary
to meet the objectives of this division.



63035.5.  The report required by Section 63035 shall be submitted to
the Governor and the Joint Legislative Budget Committee on a
quarterly basis during the 1999-2000 fiscal year and the 2000-01
fiscal year.


63036.  It is the intent of the Legislature that the activities of
the bank be fully coordinated with any future legislative plan
involving growth management strategies designed to protect California'
s land resource, and ensure its preservation and use it in ways which
are economically and socially desirable. Further, all public works
financed pursuant to this division, including those projects financed
through the use of industrial development bonds under Title 10
(commencing with Section 91500), shall comply with Chapter 1
(commencing with Section 1720) of Part 7 of Division 2 of the Labor
Code.