13100-13129
PUBLIC RESOURCES CODE
SECTION 13100-13129
13100. Whenever the board deems it necessary for the district to incur a bonded indebtedness, it shall by resolution set forth all of the following: (a) A declaration of the necessity for the indebtedness. (b) The purpose for which the proposed debt is to be incurred. (c) The amount of the proposed debt. (d) The time and place for a hearing by the board on the questions: (1) Will the whole or a portion of the district be benefited by the accomplishment of the purpose (2) If only a portion of the district will be benefited, what portion will be so benefited 13101. Notice of the hearing shall be given by publication of a copy of the resolution pursuant to Section 6066 of the Government Code in a newspaper of general circulation circulated within the area. 13102. The copy of the resolution published shall be accompanied by a notice subscribed by the clerk that: (a) The hearing referred to in the resolution will be had at the time and place specified in the resolution. (b) At that time and place any person interested, including all persons owning property in the district, will be heard upon the question stated in the resolution. 13103. At the time and place fixed for the hearing on the resolution declaring the necessity for incurring the bonded indebtedness or at any time and place to which the hearing is adjourned, the board shall proceed with the hearing. 13104. At the hearing any person interested, including persons owning property within the district, may appear and present any matters material to the questions set forth in the resolution declaring the necessity for incurring the bonded indebtedness. 13105. At the conclusion of the hearing, the board shall by resolution determine whether the whole or part of the district will be benefited by the accomplishment of the purpose stated in the resolution. 13106. If the board determines that the whole of the district will not be benefited, the resolution shall also describe the portion of the district which will be benefited, in a manner sufficient for identification, which portion of the district described in the resolution shall thereupon constitute and be known as "Improvement Area No. ____" of the district. 13107. After the formation of an improvement area within the district pursuant to this chapter, all proceedings for the purpose of a bond election within the improvement area and for the purpose of taxation for the payment of the bonds and interest shall be limited, and apply only to the improvement area. 13108. The determination of the board that the whole of the district will be benefited by the bond issue or only that a described portion of the district will be benefited by the bond issue is final and conclusive. 13109. After the board has made its determination pursuant to Section 13105, if it deems it necessary to incur the bonded indebtedness, it shall by resolution state: (a) That it deems it necessary to incur the bonded indebtedness. (b) The purpose for which the bonded indebtedness will be incurred. (c) Either of the following in accordance with its previous determination: (1) That the whole of the district will be benefited by incurring the bonded indebtedness. (2) That a portion of the district will be benefited by incurring the bonded indebtedness, which portion shall be described in the resolution of the board made pursuant to Section 13105. (d) The amount of debt to be incurred. (e) The maximum term the bonds to be issued shall run before maturity, which term shall not exceed 40 years. (f) The annual rate of interest to be paid, which rate shall not exceed 7 percent, payable annually or semiannually, or in part annually and in part semiannually. (g) The proposition to be submitted to the voters. (h) The date of the special district election (which may be consolidated with a general election) at which such proposition shall be submitted to the voters; the hours between which the polls shall be open; the boundaries of voting precincts within the area or portion thereof benefited by incurring the bonded indebtedness; the location of polling places; and the names of the officers selected to conduct such election in each precinct, who shall consist of one judge, one inspector and two clerks. 13110. The resolution provided for in Section 13109 shall constitute the notice of such special bond election and such resolution shall be published pursuant to Section 6066 of the Government Code in a newspaper of general circulation circulating within the area. 13111. The provisions of the Elections Code relating to the qualifications of electors, the manner of voting, the duties of election officers, the canvassing of returns, and all other particulars in respect to the management of general elections so far as they may be applicable shall govern all district elections except: (a) To the extent that the provisions of the Elections Code pertaining to the conduct of local elections are inconsistent with the provisions of that code pertaining to general elections, the provisions pertaining to local elections shall control. (b) Inconsistent provisions of this division shall control over any provisions of the Elections Code. 13112. Every voter within the area designated in the resolution adopted pursuant to Section 13109, but no others, may vote on the proposition to authorize the bonds. If the area does not include the entire district, a separate ballot shall be prepared for the vote upon such proposition and only the voters entitled thereto shall be given such ballots. 13113. A two-thirds vote shall be required for the issuance of general obligation bonds. 13114. If two-thirds of the vote cast at the election are in favor of incurring the indebtedness, the board may by resolution, at the time or times it deems proper, provide for the following: (a) The form of the bonds. (b) The execution of the bonds. (c) The issuance of any part of the bonds. 13115. The bonds shall be signed by the chair of the board and countersigned by the clerk of the board or the clerk's deputy and the coupons shall be signed by the clerk of the board or the clerk's deputy. All signatures, except that of the clerk, on the bonds may be printed, lithographed, or engraved. If an officer whose signature appears on the bonds or coupons ceases to be an officer before the delivery of the bonds, the signature is as effective as if the officer had remained in office. All bonds shall be payable at the office of the county treasurer, who is the depositary of the district. 13116.5. An action to determine the validity of bonds may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. 13117. The district may sell the bonds so issued at the times or in the manner the board deems to be to the public interest, provided, that all bonds shall be sold on sealed proposals to the highest bidder. Public notice shall be given in the manner determined by the board. If no bids are received or if the board determines that the bids received are not satisfactory as to price or responsibility of the bidders, the board may reject all bids received, if any, and either readvertise or sell the bonds at private sale. 13118. Any bonds issued by any area organized under this division are hereby given the same force, value, and use as bonds issued by any municipality and shall be exempt from all taxation within the state. All bonds issued by any area payable from taxes are legal investments for all trust funds, for the trust funds of all insurance companies, the state school funds, and any funds that may be invested in bonds of cities, counties, cities and counties, school districts, or municipalities in the state. 13119. The board may, by resolution, do the following: (a) Submit to voters a measure to issue new bonds to refund any or all of the district bonds outstanding. (b) Submit to the voters of any improvement area a measure to issue new bonds to refund any improvement area bonds outstanding. 13120. The measure may be voted on at any district election or an election may be called for the purpose. 13121. The procedure upon the election shall be in accordance, so far as applicable, with the procedure upon an original issue of bonds, except that: (a) No hearing need be held upon the question whether the bond issue will benefit the entire district or only a portion of it. (b) A vote of two-thirds of the voters voting upon the measure is sufficient to authorize the issue of refunding bonds. 13122. The refunding bonds may, if the holders of the bonds of an original issue and the board so agree, be exchanged for original bonds. 13123. The face value of refunding bonds exchanged for original bonds shall not exceed the face value of the original bonds. 13124. The board may raise money by rates or taxes to pay principal and interest of the refunding bonds in the same manner as prescribed for payment of bonds of an original issue. 13125. Any bonds issued by the district may be made callable by resolution of the board adopted at or prior to the time of issuing the bonds. 13126. When bonds are made callable a statement to that effect shall be set forth on the face of the bond. 13127. Callable bonds may be redeemed on any interest payment date prior to their fixed maturity in such amounts and manner and at such prices as the board may prescribe in the resolution provided for in Section 13125. 13128. Notice designating the bonds called for redemption shall be published in a newspaper determined by the board to be the one most likely to reach the holders of the bonds. The first publication of the redemption notice shall not be less than 30 nor more than 90 days prior to the date fixed for redemption. 13129. If on the date fixed for redemption the district has provided funds available for payment of the principal and interest of the bonds called, interest on them ceases. None of the provisions of this chapter shall apply to any proceedings for the authorization, issue or sale of revenue bonds of a county service area.