Providing The Latest News With Opinions

Senator Wolk Introduces SB 42, Redrafting Water Bond

Wolk

Senator Lois Wolk (D-Davis) introduced SB 42, The California Clean, Secure, Water Supply and Delta Recovery Act of 2014, legislation to put a new water bond before voters to address the crisis in the Sacramento-San Joaquin Delta and other critical water issues facing California.

Wolk’s Senate Bill 42 will provide funding for ecosystem restoration and levee stability projects necessary to address the crisis in the delta — the heart of the state’s water system, a fertile agricultural region, the largest estuary in the Western Hemisphere and habitat to hundreds of animal and plant species.

The bond also will provide funding to communities that do not have access to clean, affordable drinking water. According to the State Water Resources Control Board, more than 2 million Californians’ major source of drinking water is contaminated.

SB 42 also will help address a growing flood risk to communities and the California economy. According to the Department of Water Resources, more than 1 million Californians live in communities at a high risk of major flooding.

Restore the Delta put out a Press Release today fully supporting the redrafting of the water bond.

“Restore the Delta is fully in favor of a water bond that puts levee restoration and habitat improvements at the center of Delta restoration.  Restore the Delta also supports a water bond that promotes regional self-sufficiency throughout California as a way to reduce water exports from the Delta and help to bring clean drinking water to communities in need,” said Barbara Barrigan-Parrilla, executive director of Restore the Delta. “I have full confidence that a water bond proposed by Senator Lois Wolk is a balanced and fair piece of legislation that will protect the Delta and improve water reliability for other California communities.”

Sources

Davis Enterprise

Restore the Delta

Here is the full text of SB 42:

 

BILL NUMBER: SB 42                    INTRODUCED

                    BILL TEXT

INTRODUCED BY   Senator Wolk

                        DECEMBER 11, 2012

   An act to repeal and add Division 26.7 (commencing with Section

79700) of the Water Code, and to repeal Section 2 of Chapter 3 of the

Seventh Extraordinary Session of the Statutes of 2012, relating to a

clean, secure water supply and Delta recovery program, by providing

the funds necessary therefor through an election for the issuance and

sale of bonds of the State of California and for the handling and

disposition of those funds.

                    LEGISLATIVE COUNSEL’S DIGEST

   SB 42, as introduced, Wolk. The California Clean, Secure Water

Supply and Delta Recovery Act of 2014.

   (1) Existing law creates the Safe, Clean, and Reliable Drinking

Water Supply Act of 2012, which, if approved by the voters, would

authorize the issuance of bonds in the amount of $11,140,000,000

pursuant to the State General Obligation Bond Law to finance a safe

drinking water and water supply reliability program. Existing law

provides for the submission of the bond act to the voters at the

November 4, 2014, statewide general election.

   This bill would repeal these provisions.

   (2) Under existing law, various measures have been approved by the

voters to provide funds for water supply and protection facilities

and programs.

   This bill would enact the California Clean, Secure Water Supply

and Delta Recovery Act of 2014, which, if adopted by the voters,

would authorize the issuance of bonds in an unspecified amount

pursuant to the State General Obligation Bond Law to finance a clean,

secure water supply and Sacramento-San Joaquin Delta recovery

program.

   The bill would provide for the submission of the bond act to the

voters at the November 4, 2014, statewide general election.

   Vote: 2/3. Appropriation: no. Fiscal committee: yes.

State-mandated local program: no.

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Division 26.7 (commencing with Section 79700) of the

Water Code is repealed.

  SEC. 2.  Division 26.7 (commencing with Section 79700) is added to

the Water Code, to read:

      DIVISION 26.7.  The California Clean, Secure Water Supply and

Delta Recovery Act of 2014

      CHAPTER 1.  GENERAL PROVISIONS

   79700.  This division shall be known and may be cited as the

California Clean, Secure Water Supply and Delta Recovery Act of 2014.

   79702.  The Legislature finds and declares all of the following:

   (a) Clean and secure water supplies are critical to sustaining

California’s communities, strengthening businesses, and preserving

our state’s strong agricultural heritage.

   (b) The Delta’s agricultural heritage, water supply

infrastructure, and ecological resources are vital to California’s

economy.

   (c) Immediate action is necessary to reverse the severe ecosystem

decline of the Delta and to safeguard the communities, economy, and

vital infrastructure of the Delta.

   (d) The security of critical state resources within the Delta

relies upon the strength and integrity of the levee system.

   (e) Adequate flood protection is essential to protecting

California’s communities.

   (f) Frequent drought, polluted groundwater aquifers, aging water

supply infrastructure, rising water treatment costs, inadequate flood

protection, a changing climate, and watershed degradation, among

other challenges, threaten California’s ability to sustain and

protect its communities, its businesses, and its farms.

   (g) Improved local, regional, and statewide water resource

management ensures California communities are able to efficiently

respond to drought and climate change.

   (h) Funds provided by this division shall not be expended for the

design, construction, operation, or maintenance of Delta conveyance

projects. These costs are the responsibility of the water agencies

that benefit from those facilities.

   (i) Ecosystem restoration funds provided by this division shall

not be expended for environmental mitigation measures except as part

of the environmental mitigation costs associated with projects funded

by this division.

   79704.  The proceeds of bonds issued and sold pursuant to this

division shall be deposited in the Clean, Secure Water Supply and

Delta Recovery Program Fund, which is hereby created.

   79706.  As used in this division, the following terms have the

following meanings:

   (a) “Committee” means the Finance Committee created pursuant to

Section 79774.

   (b) “Fund” means the Clean, Secure Water Supply and Delta Recovery

Program Fund created pursuant to Section 79704.

   (c) “Delta” means the Sacramento-San Joaquin Delta.

      CHAPTER 2.  DELTA SECURITY AND RECOVERY

   79710.  (a) This chapter provides state funding for public benefit

projects that assist in recovering and safeguarding the Delta’s

resources including agriculture, water quality, water supply,

recreation, fish, and wildlife.

   (b) The sum of ____ dollars ($____) shall be available, upon

appropriation by the Legislature, to the Sacramento-San Joaquin Delta

Conservancy for grants and direct expenditures to help ensure

economic sustainability, Delta levee integrity, water quality

improvements, local water supply reliability, protection of critical

infrastructure, and terrestrial and aquatic ecosystem restoration

within the Delta and the Suisun Marsh.

   (c) For purposes of implementing this chapter, the Sacramento-San

Joaquin Delta Conservancy shall take into consideration the economic

sustainability plan developed by the Delta Protection Commission

pursuant to Section 29759 of the Public Resources Code and the Delta

Plan developed by the Delta Stewardship Council pursuant to Section

85300.

      CHAPTER 3.  REGIONAL WATER SUPPLY SECURITY

   79720.  The sum of ____ dollars ($____) shall be available, upon

appropriation by the Legislature, for projects that help achieve

local and regional water management objectives, including, but not

limited to, improved drinking water supplies, water quality, water

treatment, municipal and agricultural water efficiency, reduced

reliance on the Delta, climate change resiliency, and watershed

ecosystem stewardship. Projects shall implement adopted integrated

regional water management plans in accordance with Part 2.2

(commencing with Section 10530) of Division 6.

   79722.  From the funds described in Section 79720, at least ____

dollars ($____) shall be available for water recycling and advanced

treatment technology projects that improve regional water quality or

regional water supply.

   79724.  From the funds described in Section 79720, at least ____

dollars ($____) shall be available for groundwater management

projects that prevent or reduce the contamination of groundwater that

serves as a source of drinking water.

      CHAPTER 4.  CLEAN DRINKING WATER

   79730.  The sum of ____ dollars ($____) shall be available, upon

appropriation by the Legislature, for projects that help ensure

access to clean, safe, and affordable drinking water for California’s

communities. Eligible expenditures include, but are not limited to,

projects that address the critical and immediate needs of

disadvantaged, rural, or small communities and projects that leverage

state and federal drinking water quality and wastewater treatment

funds.

      CHAPTER 5.  PROTECTION OF RIVERS, LAKES, AND WATERSHEDS

   79740.  The sum of ____ dollars ($____) shall be available, upon

appropriation by the Legislature, to the Wildlife Conservation Board

for projects that protect and restore natural hydrologic and

ecological systems in watersheds that serve as sources of drinking

water.

   79742.  Prior to the expenditure of funds appropriated pursuant to

Section 79740, the Wildlife Conservation Board, in coordination with

state conservancies and the Natural Resources Agency, shall develop

an expenditure plan to guide the expenditure of funds. The

expenditure plan shall recognize and address regional and statewide

watershed protection and restoration priorities. Projects funded by

this chapter shall be selected through a competitive process.

      CHAPTER 6.  STATEWIDE WATER SUPPLY IMPROVEMENTS

   79750.  The sum of ____ dollars ($____) shall be available, upon

appropriation by the Legislature, for public benefits associated with

water storage and delivery projects that advance adopted state water

policies. Priority shall be given to the construction,

rehabilitation, or expansion of facilities that enable reduced

reliance on Delta exports during ecologically sensitive periods, as

well as projects that reoperate existing facilities to maximize water

supply or ecosystem benefits. Public benefits eligible for funding

under this section are limited to ecosystem restoration, water

quality improvements, and flood protection. Projects funded by this

chapter shall be selected through a competitive process.

      CHAPTER 7.  FLOOD PROTECTION

   79760.  The sum of ____ dollars ($____) shall be available, upon

appropriation by the Legislature, to the Department of Water

Resources for projects that support integrated flood management in

the Sacramento and San Joaquin Valleys, in accordance with the

Central Valley Flood Protection Plan described in Section 9612.

      CHAPTER 8.  FISCAL PROVISIONS

   79770.  Bonds in the total amount of ____ dollars ($____), or so

much thereof as is necessary, not including the amount of any

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 division 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 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.

   79772.  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

division and are hereby incorporated in this division as though set

forth in full in this division, except Section 16727 of the

Government Code shall not apply to the extent that it is inconsistent

with any other provision of this division.

   79774.  (a) Solely for the purpose of authorizing the issuance and

sale pursuant to 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) of the bonds authorized by this division, the

California Clean, Secure Water Supply and Delta Recovery Finance

Committee is hereby created. For purposes of this division, the

California Clean, Secure Water Supply and Delta Recovery Finance

Committee is “the committee” as that term is used in the State

General Obligation Bond Law. The committee consists of the Director

of Finance, the Treasurer, the Controller, the Director of Water

Resources, and the Secretary of the Natural Resources Agency, 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 of Water Resources is designated the “board.”

   79776.  The committee shall determine whether or not it is

necessary or desirable to issue bonds authorized pursuant to this

division in order to carry out the actions specified in this division

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.

   79778.  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

that is necessary to collect that additional sum.

   79780.  Notwithstanding Section 13340 of the Government Code,

there is hereby appropriated from the General Fund in the State

Treasury, for the purposes of this division, 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 division, as the

principal and interest become due and payable.

   (b) The sum necessary to carry out Section 79782, appropriated

without regard to fiscal years.

   79782.  For the purposes of carrying out this division, the

Director of Finance may authorize the withdrawal from the General

Fund of an amount 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 division. Any amounts withdrawn shall be deposited

in the fund. Any money made available under this section shall be

returned to the General Fund from proceeds received from the sale of

bonds for the purpose of carrying out this division.

   79784.  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.

   79786.  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.

   79788.  The Department of Water Resources may request the Pooled

Money Investment Board to make a loan from the Pooled Money

Investment Account, including other authorized forms of interim

financing that include, but are not limited to, commercial paper, in

accordance with Section 16312 of the Government Code, for purposes of

carrying out this division. 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 division. The Department of Water Resources 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 division.

   79790.  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 division includes the

approval of the issuance of any bonds issued to refund any bonds

originally issued under this division or any previously issued

refunding bonds.

   79792.  Notwithstanding any other provision of this division, or

of the State General Obligation Bond Law, if the Treasurer sells

bonds pursuant to this division 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 for the investment of 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 take any other action with respect to the investment and use

of those 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.

   79794.  The Legislature hereby finds and declares that, inasmuch

as the proceeds from the sale of bonds authorized by this division

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.

  SEC. 3.  Section 2 of Chapter 3 of the Seventh Extraordinary

Session of the Statutes of 2009, as amended by Section 1 of Chapter

74 of the Statutes of 2012, is repealed.

  SEC. 4.  Section 2 of this act shall be submitted to the voters at

the November 4, 2014, statewide general election in accordance with

provisions of the Government Code and the Elections Code governing

the submission of a statewide measure to the voters.

  SEC. 5.  Section 2 of this act shall take effect upon the approval

by the voters of the California Clean, Secure Water Supply and Delta

Recovery Act of 2014, as set forth in that section at the November 4,

2014, statewide general election.

BILL NUMBER: SB 42	INTRODUCED
	BILL TEXT

INTRODUCED BY   Senator Wolk

                        DECEMBER 11, 2012

   An act to repeal and add Division 26.7 (commencing with Section
79700) of the Water Code, and to repeal Section 2 of Chapter 3 of the
Seventh Extraordinary Session of the Statutes of 2012, relating to a
clean, secure water supply and Delta recovery program, by providing
the funds necessary therefor through an election for the issuance and
sale of bonds of the State of California and for the handling and
disposition of those funds.

	LEGISLATIVE COUNSEL'S DIGEST

   SB 42, as introduced, Wolk. The California Clean, Secure Water
Supply and Delta Recovery Act of 2014.
   (1) Existing law creates the Safe, Clean, and Reliable Drinking
Water Supply Act of 2012, which, if approved by the voters, would
authorize the issuance of bonds in the amount of $11,140,000,000
pursuant to the State General Obligation Bond Law to finance a safe
drinking water and water supply reliability program. Existing law
provides for the submission of the bond act to the voters at the
November 4, 2014, statewide general election.
   This bill would repeal these provisions.
   (2) Under existing law, various measures have been approved by the
voters to provide funds for water supply and protection facilities
and programs.
   This bill would enact the California Clean, Secure Water Supply
and Delta Recovery Act of 2014, which, if adopted by the voters,
would authorize the issuance of bonds in an unspecified amount
pursuant to the State General Obligation Bond Law to finance a clean,
secure water supply and Sacramento-San Joaquin Delta recovery
program.
   The bill would provide for the submission of the bond act to the
voters at the November 4, 2014, statewide general election.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Division 26.7 (commencing with Section 79700) of the
Water Code is repealed.
  SEC. 2.  Division 26.7 (commencing with Section 79700) is added to
the Water Code, to read:

      DIVISION 26.7.  The California Clean, Secure Water Supply and
Delta Recovery Act of 2014

      CHAPTER 1.  GENERAL PROVISIONS

   79700.  This division shall be known and may be cited as the
California Clean, Secure Water Supply and Delta Recovery Act of 2014.

   79702.  The Legislature finds and declares all of the following:
   (a) Clean and secure water supplies are critical to sustaining
California's communities, strengthening businesses, and preserving
our state's strong agricultural heritage.
   (b) The Delta's agricultural heritage, water supply
infrastructure, and ecological resources are vital to California's
economy.
   (c) Immediate action is necessary to reverse the severe ecosystem
decline of the Delta and to safeguard the communities, economy, and
vital infrastructure of the Delta.
   (d) The security of critical state resources within the Delta
relies upon the strength and integrity of the levee system.
   (e) Adequate flood protection is essential to protecting
California's communities.
   (f) Frequent drought, polluted groundwater aquifers, aging water
supply infrastructure, rising water treatment costs, inadequate flood
protection, a changing climate, and watershed degradation, among
other challenges, threaten California's ability to sustain and
protect its communities, its businesses, and its farms.
   (g) Improved local, regional, and statewide water resource
management ensures California communities are able to efficiently
respond to drought and climate change.
   (h) Funds provided by this division shall not be expended for the
design, construction, operation, or maintenance of Delta conveyance
projects. These costs are the responsibility of the water agencies
that benefit from those facilities.
   (i) Ecosystem restoration funds provided by this division shall
not be expended for environmental mitigation measures except as part
of the environmental mitigation costs associated with projects funded
by this division.
   79704.  The proceeds of bonds issued and sold pursuant to this
division shall be deposited in the Clean, Secure Water Supply and
Delta Recovery Program Fund, which is hereby created.
   79706.  As used in this division, the following terms have the
following meanings:
   (a) "Committee" means the Finance Committee created pursuant to
Section 79774.
   (b) "Fund" means the Clean, Secure Water Supply and Delta Recovery
Program Fund created pursuant to Section 79704.
   (c) "Delta" means the Sacramento-San Joaquin Delta.
      CHAPTER 2.  DELTA SECURITY AND RECOVERY

   79710.  (a) This chapter provides state funding for public benefit
projects that assist in recovering and safeguarding the Delta's
resources including agriculture, water quality, water supply,
recreation, fish, and wildlife.
   (b) The sum of ____ dollars ($____) shall be available, upon
appropriation by the Legislature, to the Sacramento-San Joaquin Delta
Conservancy for grants and direct expenditures to help ensure
economic sustainability, Delta levee integrity, water quality
improvements, local water supply reliability, protection of critical
infrastructure, and terrestrial and aquatic ecosystem restoration
within the Delta and the Suisun Marsh.
   (c) For purposes of implementing this chapter, the Sacramento-San
Joaquin Delta Conservancy shall take into consideration the economic
sustainability plan developed by the Delta Protection Commission
pursuant to Section 29759 of the Public Resources Code and the Delta
Plan developed by the Delta Stewardship Council pursuant to Section
85300.
      CHAPTER 3.  REGIONAL WATER SUPPLY SECURITY

   79720.  The sum of ____ dollars ($____) shall be available, upon
appropriation by the Legislature, for projects that help achieve
local and regional water management objectives, including, but not
limited to, improved drinking water supplies, water quality, water
treatment, municipal and agricultural water efficiency, reduced
reliance on the Delta, climate change resiliency, and watershed
ecosystem stewardship. Projects shall implement adopted integrated
regional water management plans in accordance with Part 2.2
(commencing with Section 10530) of Division 6.
   79722.  From the funds described in Section 79720, at least ____
dollars ($____) shall be available for water recycling and advanced
treatment technology projects that improve regional water quality or
regional water supply.
   79724.  From the funds described in Section 79720, at least ____
dollars ($____) shall be available for groundwater management
projects that prevent or reduce the contamination of groundwater that
serves as a source of drinking water.
      CHAPTER 4.  CLEAN DRINKING WATER

   79730.  The sum of ____ dollars ($____) shall be available, upon
appropriation by the Legislature, for projects that help ensure
access to clean, safe, and affordable drinking water for California's
communities. Eligible expenditures include, but are not limited to,
projects that address the critical and immediate needs of
disadvantaged, rural, or small communities and projects that leverage
state and federal drinking water quality and wastewater treatment
funds.
      CHAPTER 5.  PROTECTION OF RIVERS, LAKES, AND WATERSHEDS

   79740.  The sum of ____ dollars ($____) shall be available, upon
appropriation by the Legislature, to the Wildlife Conservation Board
for projects that protect and restore natural hydrologic and
ecological systems in watersheds that serve as sources of drinking
water.
   79742.  Prior to the expenditure of funds appropriated pursuant to
Section 79740, the Wildlife Conservation Board, in coordination with
state conservancies and the Natural Resources Agency, shall develop
an expenditure plan to guide the expenditure of funds. The
expenditure plan shall recognize and address regional and statewide
watershed protection and restoration priorities. Projects funded by
this chapter shall be selected through a competitive process.
      CHAPTER 6.  STATEWIDE WATER SUPPLY IMPROVEMENTS

   79750.  The sum of ____ dollars ($____) shall be available, upon
appropriation by the Legislature, for public benefits associated with
water storage and delivery projects that advance adopted state water
policies. Priority shall be given to the construction,
rehabilitation, or expansion of facilities that enable reduced
reliance on Delta exports during ecologically sensitive periods, as
well as projects that reoperate existing facilities to maximize water
supply or ecosystem benefits. Public benefits eligible for funding
under this section are limited to ecosystem restoration, water
quality improvements, and flood protection. Projects funded by this
chapter shall be selected through a competitive process.
      CHAPTER 7.  FLOOD PROTECTION

   79760.  The sum of ____ dollars ($____) shall be available, upon
appropriation by the Legislature, to the Department of Water
Resources for projects that support integrated flood management in
the Sacramento and San Joaquin Valleys, in accordance with the
Central Valley Flood Protection Plan described in Section 9612.
      CHAPTER 8.  FISCAL PROVISIONS

   79770.  Bonds in the total amount of ____ dollars ($____), or so
much thereof as is necessary, not including the amount of any
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 division 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 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.
   79772.  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
division and are hereby incorporated in this division as though set
forth in full in this division, except Section 16727 of the
Government Code shall not apply to the extent that it is inconsistent
with any other provision of this division.
   79774.  (a) Solely for the purpose of authorizing the issuance and
sale pursuant to 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) of the bonds authorized by this division, the
California Clean, Secure Water Supply and Delta Recovery Finance
Committee is hereby created. For purposes of this division, the
California Clean, Secure Water Supply and Delta Recovery Finance
Committee is "the committee" as that term is used in the State
General Obligation Bond Law. The committee consists of the Director
of Finance, the Treasurer, the Controller, the Director of Water
Resources, and the Secretary of the Natural Resources Agency, 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 of Water Resources is designated the "board."
   79776.  The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
division in order to carry out the actions specified in this division
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.
   79778.  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
that is necessary to collect that additional sum.
   79780.  Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this division, 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 division, as the
principal and interest become due and payable.
   (b) The sum necessary to carry out Section 79782, appropriated
without regard to fiscal years.
   79782.  For the purposes of carrying out this division, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount 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 division. Any amounts withdrawn shall be deposited
in the fund. Any money made available under this section shall be
returned to the General Fund from proceeds received from the sale of
bonds for the purpose of carrying out this division.
   79784.  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.
   79786.  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.
   79788.  The Department of Water Resources may request the Pooled
Money Investment Board to make a loan from the Pooled Money
Investment Account, including other authorized forms of interim
financing that include, but are not limited to, commercial paper, in
accordance with Section 16312 of the Government Code, for purposes of
carrying out this division. 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 division. The Department of Water Resources 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 division.
   79790.  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 division includes the
approval of the issuance of any bonds issued to refund any bonds
originally issued under this division or any previously issued
refunding bonds.
   79792.  Notwithstanding any other provision of this division, or
of the State General Obligation Bond Law, if the Treasurer sells
bonds pursuant to this division 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 for the investment of 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 take any other action with respect to the investment and use
of those 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.
   79794.  The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this division
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.
  SEC. 3.  Section 2 of Chapter 3 of the Seventh Extraordinary
Session of the Statutes of 2009, as amended by Section 1 of Chapter
74 of the Statutes of 2012, is repealed.
  SEC. 4.  Section 2 of this act shall be submitted to the voters at
the November 4, 2014, statewide general election in accordance with
provisions of the Government Code and the Elections Code governing
the submission of a statewide measure to the voters.
  SEC. 5.  Section 2 of this act shall take effect upon the approval
by the voters of the California Clean, Secure Water Supply and Delta
Recovery Act of 2014, as set forth in that section at the November 4,
2014, statewide general election.
Advertisements

Tagged as: , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: