132300-132314

PUBLIC UTILITIES CODE
SECTION 132300-132314




132300.  The Legislature, by the enactment of this article, intends
the additional funds provided government agencies by this article to
supplement existing local revenues being used for public
transportation purposes. The government agencies are further
encouraged to maintain their existing commitment of local funds for
public transportation purposes.



132301.  A retail transactions and use tax ordinance applicable in
the incorporated and unincorporated territory of the county shall be
imposed by the commission in accordance with Section 132307 and Part
1.6 (commencing with Section 7251) of Division 2 of the Revenue and
Taxation Code, if two-thirds of the electors voting on the measure
vote to approve its imposition at a special election called for that
purpose by the commission. The tax ordinance shall take effect at the
close of the polls on the day of election at which the proposition
is adopted. The initial collection of the transactions and use tax
shall take place in accordance with Section 132304.
   If, at any time, the voters do not approve the imposition of the
transactions and use tax, this chapter remains in full force and
effect. The commission may, at any time thereafter, submit the same,
or a different, measure to the voters in accordance with this
chapter.


132302.  The commission, in the ordinance, shall state the nature of
the tax to be imposed, the tax rate or the maximum tax rate, the
purposes for which the revenue derived from the tax will be used, and
may set a term during which the tax will be imposed. The purposes
for which the tax revenues will be used may include, but are not
limited to, the administration of this chapter, including legal
actions related thereto, the construction, capital acquisition,
maintenance, and operation of streets, roads, and highways, including
state highways, and the construction, maintenance, and operation of
public transit systems, including exclusive public mass transit
guideway systems. These purposes include expenditures for the
planning, environmental reviews, engineering and design costs, and
related right-of-way acquisition. The ordinance shall contain an
expenditure plan which shall include the allocation of revenues for
the purposes authorized by this section.



132303.  (a) The county shall conduct an election called by the
commission pursuant to Section 132301.
   (b) The election shall be called and conducted in the same manner
as provided by law for the conduct of elections by a county.



132304.  (a) Any transactions and use tax ordinance adopted pursuant
to this article shall be operative on the first day of the first
calendar quarter commencing more than 110 days after adoption of the
ordinance.
   (b) Prior to the operative date of the ordinance, the commission
shall contract with the State Board of Equalization to perform all
functions incident to the administration and operation of the
ordinance.



132305.  The revenues from the taxes imposed pursuant to this
article may be allocated by the commission for public transportation
purposes consistent with the adopted regional transportation
improvement program and the regional transportation plan.




132306.  If taxes are imposed pursuant to this article for
expenditure for public transit purposes, the commission shall
allocate revenues derived therefrom to the transit development boards
for allocation within their respective areas of jurisdiction for
transit purposes consistent with the adopted regional transportation
improvement program and the regional transportation plan.



132307.  (a) The commission, subject to the approval of the voters,
may impose a maximum tax rate of 1 percent under this chapter and
Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue
and Taxation Code, and the commission may state the maximum tax rate
in terms of not to exceed 1 percent, or any lesser percentage
thereof. The commission shall not levy the tax at a rate other than 1
percent or three-fourths, one-half, or one-fourth of 1 percent,
unless specifically authorized by the Legislature.
   (b) The tax rate adopted pursuant to this article, unless
otherwise prohibited, may be increased by the commission by ordinance
adopted in the manner and by the vote stated in Section 132301 and
approved by a majority of the electors voting on the measure at an
election called for that purpose by the commission.



132308.  The commission may reduce a tax rate to percentages lower
than that approved by the voters and may further provide for an
increase of the tax rate if it has previously been lowered. However,
the tax rate may not be increased to a rate above the tax rate
approved by the voters.
   Any revised tax rate may be adopted only if the commission
determines, by a two-thirds vote, that the proceeds of the taxes with
the altered tax rate will be sufficient to provide for the payment
of principal of, and interest on, any limited tax bonds and any other
indebtedness incurred by the commission which was to be payable from
the proceeds of the retail transactions and use tax.



132309.  (a) The commission, as part of the ballot proposition to
approve the imposition of a retail transactions and use tax, shall
seek authorization to issue bonds payable from the proceeds of the
tax and establish the appropriations limit of the commission.
   (b) The maximum bonded indebtedness which may be outstanding at
any one time shall be an amount equal to the sum of the principal of,
and interest on, the bonds, but not to exceed the estimated proceeds
of the transactions and use tax for a period of not more than the
number of years for which the transactions and use tax authorized by
this article is to be imposed.


132310.  (a) The bonds authorized by the voters concurrently with
the approval of the retail transactions and use tax may be issued by
the commission at any time, and from time to time, payable from the
proceeds of the tax. The bonds shall be referred to as "limited tax
bonds." The bonds may be secured by a pledge of revenues from the
proceeds of the tax.
   (b) The pledge of retail transactions and use taxes to the limited
tax bonds authorized under this article shall have priority over the
use of any of the taxes for "pay-as-you-go" financing, except to the
extent that the priority is expressly restricted in the resolution
authorizing the issuance of the bonds.



132310.5.  The commission may provide for the bonds to bear a
variable interest rate, for the manner and intervals in which the
rate shall vary, and for the dates on which the interest shall be
payable.


132311.  Limited tax bonds shall be issued pursuant to a resolution
adopted at any time, and from time to time, by the commission by a
two-thirds vote of all members of the commission.
   The commission 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),
for the purposes set forth in the ordinance adopted pursuant to
Section 132302, which shall constitute an "enterprise" within the
meaning of Section 54309 of the Government Code. Article 3
(commencing with Section 54380) of Chapter 6 of Part 1 of Division 2
of Title 5 of the Government Code and the limitations on the rate of
interest set forth in subdivision (b) of Section 54402 of the
Government Code do not apply to the issuance and sale of bonds
pursuant to this chapter. Instead, the commission shall authorize the
issuance of bonds by resolution, which resolution shall specify all
of the following:
   (a) The purposes for which the bonds are to be issued.
   (b) The maximum principal amount of the bonds.
   (c) The maximum term for the bonds.
   (d) The maximum rate of interest to be payable upon the bonds
shall not exceed the maximum rate permitted for bonds of the
commission by Section 53531 of the Government Code or any other
applicable provisions of law. In the case of bonds bearing a variable
interest rate, the variable rate shall on no day exceed the maximum
rate permitted for bonds of the commission on that day by Section
53531 of the Government Code or any other applicable provisions of
law. However, the variable interest rate so permitted may on any day
exceed that maximum rate if the interest paid on the bonds from their
date of original issuance to that day does not exceed the total
interest which would have been permitted to have been paid on the
bonds if the bonds had borne interest at all times from the date of
issuance to that day at the maximum rate permitted from time to time
by Section 53531 of the Government Code or any other applicable
provisions of law.
   (e) The maximum discount on the sale of the bonds. However, the
bonds shall not be sold at less than 95 percent of the principal
amount in the manner determined by the commission. Each resolution
shall provide for the issuance of bonds in the amounts as may be
necessary, until the full amount of the bonds authorized has been
issued. The full amount of bonds may be divided into two or more
series with different dates of payment fixed for the bonds of each
series. A bond need not mature on its anniversary date.



132312.  Any bonds issued pursuant to this article are a legal
investment for all trust funds; for the funds of insurance companies,
commercial and savings banks, and trust companies; and for state
school funds. Whenever any money or funds may, by any law now or
hereafter enacted, be invested in bonds of cities, counties, school
districts, or other districts within the state, those funds may be
invested in the bonds issued pursuant to this article, and whenever
bonds of cities, counties, school districts, or other districts
within this state may, by any law now or hereafter enacted, be used
as security for the performance of any act or the deposit of any
public money, the bonds issued pursuant to this article may be so
used. The provisions of this article are in addition to all other
laws relating to legal investments and shall be controlling as the
latest expression of the Legislature with respect thereto.



132313.  Any action or proceeding wherein the validity of the
adoption of the retail transactions and use tax ordinance provided
for in this article or the issuance of any bonds thereunder or any of
the proceedings in relation thereto is contested, questioned, or
denied, shall be commenced within six months from the date of the
election at wich the ordinance is approved; otherwise, the bonds and
all proceedings in relation thereto, including the adoption and
approval of the ordinance, shall be held to be valid and in every
respect legal and incontestable.



132314.  The commission has no power to impose any tax other than
the transactions and use tax imposed upon approval of the voters in
accordance with this chapter.