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Chapter 9. Golden State Financial Marketplace Program (gs $mart Program) of California Government Code >> Division 3. >> Title 2. >> Part 5.5. >> Chapter 9.
This chapter shall be known and may be cited as the Golden
State Financial Marketplace Program or GS $Mart Program.
The department is authorized to structure, administer, and
maintain the GS $Mart Program, the state's centralized financing
program available for state agencies to finance certain goods and
services as set forth in this chapter.
(a) Notwithstanding any other law, state agencies that are
statutorily authorized to acquire assets listed in subdivision (b)
are hereby eligible to apply to the GS $Mart Program to enter into
agreements for financing those assets without further competitive
bidding.
(b) (1) Assets eligible for financing pursuant to the GS $Mart Program include all of the following:
(A) Energy efficiency measures as described in Section 4217.11 or energy savings contracts as described in Section 388 of the Public Utilities Code.
(B) Goods as defined in Section 10290 of the Public Contract Code.
(C) Services as described in Section 10335 of the Public Contract Code.
(D) Technology goods or services as described in Section 11532 or information technology as defined in paragraph (2) that are capital assets eligible for tax exempt financing consistent with the Internal Revenue Code as confirmed by an opinion of bond counsel, as described in paragraph (3) of subdivision (a) of Section 14936.
(2) Information technology includes, but is not limited to, all electronic technology systems and services, automated information handling, system design and analysis, conversion of data, computer programming, information storage and retrieval, telecommunications, including voice, video, and data communications, requisite system controls, simulation, electronic commerce, and all related interactions between people and machines.
(c) State agencies may refinance any eligible asset through the GS $Mart Program for the purpose of lowering financing costs or consolidating payments, or when refinancing will achieve an overall benefit and cost savings to the state.
(d) The department shall annually provide a report by September 1 of each year to the Joint Legislative Budget Committee, the State Treasurer's Office, and the Department of Finance that shall include, but not be limited to, the following information for each loan entered into during the preceding fiscal year:
(1) Each agency that entered into a GS $Mart loan.
(2) The amount financed by each loan.
(3) The term of each loan.
(4) A description of the item, good, or service financed by each loan.
(5) The total amount of outstanding GS $Mart loans.
(b) (1) Assets eligible for financing pursuant to the GS $Mart Program include all of the following:
(A) Energy efficiency measures as described in Section 4217.11 or energy savings contracts as described in Section 388 of the Public Utilities Code.
(B) Goods as defined in Section 10290 of the Public Contract Code.
(C) Services as described in Section 10335 of the Public Contract Code.
(D) Technology goods or services as described in Section 11532 or information technology as defined in paragraph (2) that are capital assets eligible for tax exempt financing consistent with the Internal Revenue Code as confirmed by an opinion of bond counsel, as described in paragraph (3) of subdivision (a) of Section 14936.
(2) Information technology includes, but is not limited to, all electronic technology systems and services, automated information handling, system design and analysis, conversion of data, computer programming, information storage and retrieval, telecommunications, including voice, video, and data communications, requisite system controls, simulation, electronic commerce, and all related interactions between people and machines.
(c) State agencies may refinance any eligible asset through the GS $Mart Program for the purpose of lowering financing costs or consolidating payments, or when refinancing will achieve an overall benefit and cost savings to the state.
(d) The department shall annually provide a report by September 1 of each year to the Joint Legislative Budget Committee, the State Treasurer's Office, and the Department of Finance that shall include, but not be limited to, the following information for each loan entered into during the preceding fiscal year:
(1) Each agency that entered into a GS $Mart loan.
(2) The amount financed by each loan.
(3) The term of each loan.
(4) A description of the item, good, or service financed by each loan.
(5) The total amount of outstanding GS $Mart loans.
(a) The department shall develop a financing process that
requires, but shall not be limited to, all of the following:
(1) Confirmation that the term of financing shall be limited to the average expected economic life of the asset or assets.
(2) Certification that the asset or assets to be financed are eligible under Section 14934.
(3) A submission of an opinion of counsel from an independent law firm of recognized standing in the field of law relating to the exemption from federal income taxation on state or local bonds confirming that the assets subject to the financing qualify for tax exempt financing consistent with the Internal Revenue Code.
(4) The preparation and submission of payment schedules to the Controller for use by the Controller in transferring funds appropriated in the annual Budget Act to the state agency for payments due under the financing program.
(5) Prior approval by the Department of Finance and prior approval of the terms and conditions of the financing by the Treasurer for each financing over $10,000,000.
(b) The Controller may direct the transfer of funds according to the schedule or schedules submitted by the department pursuant to the GS $Mart Program.
(c) The department, in consultation with the Department of Finance, shall be responsible for the continued development and administration of, at a minimum, financing applications, instructions, and application approval pursuant to the GS $Mart Program.
(1) Confirmation that the term of financing shall be limited to the average expected economic life of the asset or assets.
(2) Certification that the asset or assets to be financed are eligible under Section 14934.
(3) A submission of an opinion of counsel from an independent law firm of recognized standing in the field of law relating to the exemption from federal income taxation on state or local bonds confirming that the assets subject to the financing qualify for tax exempt financing consistent with the Internal Revenue Code.
(4) The preparation and submission of payment schedules to the Controller for use by the Controller in transferring funds appropriated in the annual Budget Act to the state agency for payments due under the financing program.
(5) Prior approval by the Department of Finance and prior approval of the terms and conditions of the financing by the Treasurer for each financing over $10,000,000.
(b) The Controller may direct the transfer of funds according to the schedule or schedules submitted by the department pursuant to the GS $Mart Program.
(c) The department, in consultation with the Department of Finance, shall be responsible for the continued development and administration of, at a minimum, financing applications, instructions, and application approval pursuant to the GS $Mart Program.
As used in this chapter, "state agency" or "state agencies"
means every state office, officer, department, division, bureau,
board, and commission and the California State University and the
Regents of the University of California.
