Chapter 6. Bonds of California Public Utilities Code >> Division 10. >> Part 11.5. >> Chapter 6.
This chapter shall be known and may be cited as the Clean
Air and Transportation Improvement Bond Act of 1990.
Bonds in the total amount of one billion nine hundred
ninety million dollars ($1,990,000,000), exclusive of refunding
bonds, or so much thereof as is necessary, may be issued and sold to
be used for carrying out the purposes expressed in this part and to
be used 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 and interest as they become due and payable.
The proceeds of bonds and notes issued and sold pursuant to
this chapter shall be deposited in the Clean Air and Transportation
Improvement Fund created by Section 99610.
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 provisions of that law shall apply to the bonds and are
hereby incorporated in this chapter as though set forth in full in
(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 Transportation Improvement Finance
Committee is hereby created. For purposes of this chapter, the
Transportation Improvement Finance Committee is "the committee" as
that term is used in the State General Obligation Bond Law. The
committee shall consist 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 this chapter, the commission is hereby
designated as "the board."
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 this part, 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 purposes progressively, and it
is not necessary that all of the bonds authorized to be issued be
sold at any one time.
There shall be collected annually 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 which
is necessary to collect that additional sum.
Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund, for the purposes
of this part, 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 Section 99694,
appropriated without regard to fiscal years.
For the purposes of carrying out this part, the Director of
Finance may authorize the withdrawal from the General Fund of an
amount or amounts not to exceed the amount of unsold bonds which have
been authorized by the committee to be sold for the purpose of
carrying out those provisions. Any amounts withdrawn shall be
deposited in the fund. Any money made available under this section
shall be returned to the General Fund from money received from the
sale of bonds which would otherwise be deposited in the fund.
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.
The board may request the Pooled Money Investment Board to
make a loan from the Pooled Money Investment Account in the General
Fund, in accordance with Section 16312 of the Government Code, to
carry out this part. The amount of the loan shall not exceed the
amount of the unsold bonds which the committee has, by resolution,
authorized to be sold for the purposes of this chapter. The board
shall execute any documents as 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 in accordance with
All money derived from premium and accrued interest on bonds
sold shall be reserved and shall be available for transfer to the
General Fund as a credit to expenditures for bond interest.
Any bonds issued or 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 4 of Title 2 of the Government Code. Approval by the
electors of the state for the issuance of the bonds shall include
approval of the issuance of any bonds issued to refund any bonds
originally issued or any previously issued refunding bonds.
The people of California hereby find and declare that,
inasmuch as the proceeds from the sale of bonds authorized by this
part 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 limitation imposed by that article.