12850-12857

PUBLIC UTILITIES CODE
SECTION 12850-12857




12850.  This article shall apply only to districts which have owned
and operated an electric distribution, water distribution, or sewage
disposal system for at least eight years and which have a population
of 250,000 or more.


12851.  A district may, from time to time, issue bonds in accordance
with the Revenue Bond Law of 1941 (Chapter 6 (commencing with
Section 54300) of Part 1 of Division 2 of Title 5 of the Government
Code), as it now reads or as hereafter amended, for the purpose of
financing the construction, reconstruction, replacement, acquisition,
or improvement of any facility or facilities necessary or convenient
for the generation, transmission, or distribution of electricity;
the storage, transmission, or distribution of water; the furnishing
of communications services; or the disposal of sewage; or incidental
to, or in connection with, the operation of the electric, water,
communications, or sewage disposal system or facilities of the
district, or for purposes of financing programs for the conservation
of electricity, which shall constitute an "enterprise" within the
meaning of Section 54309 of the Government Code. The authority hereby
granted to the districts is in addition to all powers granted local
agencies under the Revenue Bond Law of 1941, and Section 54310 of the
Government Code, insofar as it is inconsistent with that authority,
shall not apply.



12852.  Article 3 (commencing with Section 54380) of Chapter 6 of
Part 1 of Division 2 of Title 5 of the Government Code, the
limitations on the rate of interest set forth in subdivision (b) of
Section 54402 of the Government Code and on the discount set forth in
Section 54418 of the Government Code, and the requirements for
refunding revenue bonds set forth in Sections 53573, 53583, 54388,
and 54661 of the Government Code do not apply to the issuance and
sale of bonds pursuant to this article. Whenever a district proposes
to exercise the power to issue bonds pursuant to this article, the
board shall adopt a preliminary resolution declaring its intention to
authorize the issuance of bonds, which resolution shall specify all
of the following:
   (a) The purpose for which the proposed bonds are to be issued.
   (b) The maximum principal amount of the bonds then proposed to be
issued.
   (c) The maximum term for which any of the bonds are to run.
   (d) The maximum rate of interest to be payable upon the bonds
which rate shall be determined by the board.
   (e) The maximum discount, which shall be determined by the board.




12853.  When bonds are issued under this article, the preliminary
resolution of the board adopted pursuant to this article shall take
effect upon its adoption by the board subject to the right of
referendum provided for in this article. Successive issues of bonds
may be authorized under this article from time to time and the
authority herein contained shall not be limited to any particular
issue.



12854.  Upon any such resolution taking effect subject to the right
of referendum pursuant to this article, the board shall cause the
same to be published in the manner provided for the publication of
notices. At any time within 60 days after the date of the second such
publication a referendum petition, signed by voters in number equal
to at least 3 percent of the total vote cast, as defined in Section
11507, demanding the submission of such resolution to a vote of the
voters of the district for their assent to the issuance of the
proposed bonds, may be filed with the secretary. Upon presentation to
the secretary of a referendary petition, the resolution which is the
subject thereof shall be of no effect unless and until it has been
assented to by the voters.



12855.  If no such referendary petition is presented within the
period of 60 days, then upon the expiration of such period, or if the
proposition of issuing the bonds specified in the resolution of the
board adopted pursuant to this article has been assented to by a
majority of the voters voting on the proposition, whether upon
referendum or pursuant to Section 12856, then upon such proposition
having been so assented to, the resolution shall take full and final
effect, and the board may proceed in accordance with the provisions
of this article and issue bonds within the terms of the resolution
and in accordance with the applicable provisions of the Revenue Bond
Law of 1941 (Chapter 6 (commencing with Section 54300), Part 1,
Division 2, Title 5, Government Code).



12856.  The board at any time may, and upon the filing of a
referendum petition as provided in Section 12854 shall, adopt a
resolution calling a special election for the purpose of submitting
to the voters of the district the proposition of issuing revenue
bonds in conformity with the preliminary resolution adopted pursuant
to Section 12852. The resolution calling the election shall fix the
date on which the election is to be held, the proposition to be
submitted thereat, the manner of holding the election and of voting
for or against the proposition, and shall state that in all other
particulars the election shall be held and the votes canvassed as
provided by law for the holding of elections within the district.
Such election may be held separately or may be consolidated with any
other election authorized by law at which the voters of the district
may vote. The resolution calling the election shall be published and
no other notice of the election need be given. The votes of a
majority of all the voters voting on the proposition at the election
are required to authorize the issuance of revenue bonds.



12857.  The authority herein contained shall be in addition to the
authority conferred by Chapter 7 of this division and indebtedness
incurred in accordance with the authority herein contained shall not
be included in ascertaining the aggregate indebtedness specified in
Section 12842.