5096.955-5096.967

PUBLIC RESOURCES CODE
SECTION 5096.955-5096.967




5096.955.  (a) Bonds in the total amount of four billion ninety
million dollars ($4,090,000,000), not including the amount of any
refunding bonds issued in accordance with Section 5096.966, 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 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 valid and binding
obligations 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.



5096.956.  The bonds authorized by this chapter shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law, 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.




5096.957.  (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 Disaster Preparedness and Flood
Prevention Bond Finance Committee is hereby created. For the
purposes of this chapter, the Disaster Preparedness and Flood
Prevention Bond Finance Committee is "the committee" as that term is
used in the State General Obligation Bond Law. The committee consists
of the Controller, the Director of Finance, and the Treasurer, 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
department is designated the "board."



5096.958.  The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
chapter to carry out this chapter 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.



5096.959.  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.



5096.960.  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 that is necessary to carry out Section 5096.963,
appropriated without regard to fiscal years.



5096.961.  The department 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 purpose
of carrying out this chapter. The amount of the request shall not
exceed the amount of the unsold bonds that the committee has, by
resolution, authorized to be sold for the purpose of carrying out
this chapter. The department shall execute those 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 department in accordance with this chapter.



5096.962.  Notwithstanding any other provision of this chapter, or
of the State General Obligation Bond Law, if the Treasurer sells
bonds 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 for 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.



5096.963.  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 that have been authorized by the committee 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, from
proceeds received from the sale of bonds for the purpose of carrying
out this chapter.


5096.964.  All money deposited in the fund that is derived from
premium and accrued interest on bonds sold pursuant to this chapter
shall be reserved in the fund and shall be available for transfer to
the General Fund as a credit to expenditures for bond interest.




5096.965.  Pursuant to Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2 of the Government Code, the cost of
bond issuance shall be paid out of the bond proceeds. These costs
shall be shared proportionally by each program funded through this
bond act.



5096.966.  The bonds issued and sold pursuant to this chapter 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 electors of the state for the issuance of the
bonds under this chapter shall include approval of the issuance of
any bonds issued to refund any bonds originally issued under this
chapter or any previously issued refunding bonds.



5096.967.  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.