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.
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