To: [aaron r p] at [netcom.com] Subject: proposition 173 Date: Wed, 01 Sep 93 22:43:38 +45722824 From: aphrael <[a--r--l] at [cats.ucsc.edu]> This law proposed by Assembly Bill 215 (Statutes of 1993, Chapter 116) is submitted to the people in accordance with the provisions of Article XVI of the Constitution. This proposed law adds sections to the Health and Safety Code. Since all provisions are new, there are no marks to distinguish them from existing law. PROPOSED LAW. SECTION 3. Part 6.1 (commencing with Section 52534) is added to Division 31 of the Health and Safety Code, to read: PART 6.1 CALIFORNIA HOUSING AND JOBS INVESTMENT BOND ACT. 52534. This part shall be known and may be cited as the California Housing and Jobs Investment Bond Act. 5234.1 The Legislature finds and declares all of the following: (a) The First-Time Home Buyers Bond Act of 1982 authorized two hundrd million dollars ($200,000,000) in bonds for a program that became unworkable. There remains one hundred eighty-five million dollars ($185,000,000) in authorized but unissued bonds under the First-Time Home Buyers Bond Act of 1982. (b) Pursuant to Section 1 of Article XVI of the California Constitution, the Legislature may reduce the amount of indebtedness authorized under a bond act approved by the voters to an amount not less than the amount issued under the bond act at the time of the reduction. (c) It is desirable to reduce the authorized indebtedness under the First-Time Home Buyers Bond Act of 1982 to an amount equal to the amount of the bonds that have been issued under that act and seek the voters' approval of the expenditure of the unused portion of that amount, which will then be used to improve the availability of mortgage financing for residential housing for persons and families of low and moderate income as provided in Part 4 (commencing with Section 51600). 52434.2 As used in this part, the following terms have the following meanings: (a) "Board" means the board of directors of the California Housing Finance Agency. The board shall be the "board" as that term is used 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). (b) "Committee" means the Housing Loan Insurance Bond Committee, which is hereby created, consisting of the Director of Finance, the Treasurer, the executive director of the agency, and the Controller. The Treasurer shall serve as the Chairperson of the committee. The committee shal be the "committee" as that term is used in the State General Obligation Bond Law. (c) "Fund" means the California Housing Loan Insurance Fund as authorized by Section 51623. 52534.3 The proceeds of bonds issued and sold pursuant to this part shall be deposited in the fund. Notwithstanding Section 13340 of the Government Code, all amounts in the fund are continuously appropriated for the purpose of mortgage guarantee insurance for low and moderate income first-time home buyers, as specified in Part 4 (commencing with section 51600). and the expenses of sale of the bonds. 52534.4 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) is hereby adopted for the purpose of the issuance, sale, and repayment of, and otherwise providing with respect to, the bonds authorized to be issued by this part, and the provisions of that law are included in this part as though set out in full in this part. Section 16727 of the Government Code shall not apply to proceeds of bonds issued pursuant to this part. 52534.5 The committee is hereby authorized and empowered to create a debt or debts and a liability or liabilities of the State of California, in the aggregate amount of one hunderd eighty-five million dollars ($185,000,000), not including the amount of any refunding bonds, or so much thereof as necessary, for carrying out the purposes specified in Section 52534.3, and shall be deposited in the fund. The proceeds of the bonds may also be used to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. 52534.6 Nowtithstanding Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code, the committee may, whenever it deems it necessary to effectuate this part or to conduct an effective sale, authorize the Treasurer to sell any issue of bonds under either, or both, of the following conditions: (a) with interest payments to be made less frequently than semiannually, and an initial interest payment later than one year after the date of the bonds, if the interest payment date is not later than the maturity date of the bonds and is fixed to coincide, as nearly as the fund may deem it to be practicable, with the dates and amounts of the estimated revenues estimated to accrue to the fund pursuant to this part. (b) At less than the par value thereof if necessary to an effective sale, but the discount pursuant to this subdivision shall not exceed 6 percent of the par value thereof. 52534.7 The committee, upon the request of the board, shall determine whether or not it is necessary or desirable to issue any bonds authorized under this part, and if so, the amount of bonds then to be issued and sold. The committee may authorize the Treasurer to sell all or any part of the bonds herein authorized at a time or times fixed by the Treasurer. The bonds may be sold with interest subject to federal income taxation. 5234.8 (a) All bonds herein authorized, which shall have been duly sold and delivered as herein provided, shall constitute valid and legally binding general 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 and interest thereon. (b) There shall be collected annually in the same manner and at the same time as other state revenue is collected, a sum, in addition to the ordinary revenues of the state, that shall be required to pay the principal and interest on the bonds as herein provided, and it is hereby made 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 shall be necessary to collect any additional sum. 52534.9 Notwithstanding Section 13340 of the Government Code, there is hereby appropritated from the General Fund in the State Treasury, for the purposes of this part, the sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this part, as the principal and interest become due and available. 52534.10 All money deposited in the fund that is derived from permium and accrued interest n 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. 52534.11 Bonds issued and sold pursuant to this part may be refunded by the issuance and sale or exchange 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. 52534.12 Notwithstanding any provision of this part or the State General Obligation Bond Law, if the Treasurer sell sbonds ursuant to this part the interest on which is intended to be excluded from gross income for federal tax purposes, the Treasurer shall be authorized to maintain separate accounts for the investment of bond proceeds and the investment earnings on those proceeds, and the Treasurer shall be authorized to use or direct the use of these proceeds or earnings to pay any rebate, penalty, or other payment required under federal law or to take any other action with respect to the investment and use of bond proceeds required or desirable under federal law so as to maintain the tax-exempt status of those bonds and to obtain any other advantage under federal law on behalf of this state. 5234.13 The board 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 purposes of carrying ou;this part. The amount of the request shall note xceed the amount of the unsold bonds that the committee has, by resolution, authorized ot be sold for the purpose of carrying out this part. The board 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 for use in accordance with this part. 5234.14 The board shall determine annually whether the moneys earned from the use of the fund exceed the required program costs and reserves so that they should be transferred to the General Fund to repay the cost, which includes principal and interest, of the bonds issued pursuant to this part. In making this determination, the board of directors shall consider the capital and surplus reserve requirements, earnings, future business needs, regulatory costs, financial conditions, and any other factors appropriate to the prudent management of the programs prescribed pursuant to this part, and the board of directors shall use actuarially sound methods and generally accepted accounting principles. 5234.15 The Legislature may, from time to time, amend the provisions of law relating to programs to which funds are, or have been, allocated pursuant to Section 52534.5 for the purpos of improving the efficiency and effectiveness of the program. The Legislature may also, from time to time, amend the provisions of law relating to the programs to which funds are, or have been, allocated pursuant to Section 52534.5 for the purpose of furthering the goals of the program. ==== Source: California Ballot Pamphlet, Special Statewide Election, November 2, 1993. Pages 42-43. --- "Without censorship, things can get terribly confused in the public mind." -William Westmoreland [a--r--l] at [cats.ucsc.edu] | Robert D. West ---