3.9.2 State Public Works Board Lease Revenue Bonds

3.9.2 State Public Works Board Lease Revenue Bonds

The California State Public Works Board issues lease revenue bonds under the State Building and Construction Act of 1955 (California Government Code Section 15800 et seq.) to finance capital improvement projects for “state agencies,” defined as state offices, officers, departments, divisions, bureaus, boards, commissions, organizations, and agencies. State Public Works Board lease revenue bonds are payable from base rental payments made by the state agencies for whom the financings are done under leases of the financed facilities to the respective state agencies and are additionally secured by a master debt service reserve fund. State agencies make rental payments from funds authorized for that purpose in the state budget, so the ultimate source for the payment of State Public Works Board lease revenue bonds is the State’s general fund. The leases are structured to satisfy the requirements of the Lease Exception to the constitutional debt limit, including rental abatement if the state agency does not have use and occupancy of the leased facilities. See Section 1.2.4.3, Lease Exception (the “Offner-Dean Lease Exception”).