180250-180264

PUBLIC UTILITIES CODE
SECTION 180250-180264




180250.  (a) As part of the ballot proposition to approve the
imposition of a retail transactions and use tax, authorization may be
sought to issue bonds to finance capital outlay expenditures as may
be provided for in the adopted county transportation expenditure
plan, payable from the proceeds of the tax.
   (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 tax, as determined by the plan. The amount of bonds
outstanding at any one time does not include the amount of bonds,
refunding bonds, or bond anticipation notes for which funds necessary
for the payment thereof have been set aside for that purpose in a
trust or escrow account.



180250.5.  Notwithstanding any other provision of law, if the
imposition of a retail transactions and use tax, together with the
establishment of an appropriations limit of seven hundred sixty-five
million dollars ($765,000,000), was approved by the voters of a
county pursuant to Section 180250 on November 8, 1988, and if the
ordinance adopted by the authority which requested the board of
supervisors to submit the proposition for approval of that tax and
appropriations limit by the voters authorized the issuance of bonds
payable from that tax, that authority may issue bonds, refunding
bonds, or bond anticipation notes pursuant to this chapter.




180251.  (a) The bonds authorized by the voters concurrently with
the approval of the retail transactions and use tax may be issued at
any time by the authority and shall be 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 the tax to the limited tax bonds authorized
under this chapter shall have priority over the use of any of the tax
for "pay-as-you-go" financing, except to the extent that that
priority is expressly restricted in the resolution authorizing the
issuance of the bonds.


180252.  Limited tax bonds shall be issued pursuant to a resolution
adopted at any time by a two-thirds vote of the authority. Each
resolution shall provide for the issuance of bonds in the amounts as
may be necessary, until the full amount of bonds authorized have been
issued. The full amount of bonds may be divided into two or more
series and different dates of payment fixed for the bonds of each
series. A bond need not mature on its anniversary date.



180253.  (a) A resolution authorizing the issuance of bonds shall
state all of the following:
   (1) The purposes for which the proposed debt is to be incurred,
which may include all costs and estimated costs incidental to, or
connected with, the accomplishment of those purposes, including,
without limitation, engineering, inspection, legal, fiscal agents,
financial consultant and other fees, bond and other reserve funds,
working capital, bond interest estimated to accrue during the
construction period and for a period not to exceed three years
thereafter, and expenses of all proceedings for the authorization,
issuance, and sale of the bonds.
   (2) The estimated cost of accomplishing those purposes.
   (3) The amount of the principal of the indebtedness.
   (4) The maximum term the bonds proposed to be issued shall run
before maturity, which shall not be beyond the date of termination of
the imposition of the retail transactions and use tax.
   (5) The maximum rate of interest to be paid, which shall not
exceed the maximum allowable by law.
   (6) The denomination or denominations of the bonds, which shall
not be less than five thousand dollars ($5,000).
   (7) The form of the bonds, including, without limitation,
registered bonds and coupon bonds, to the extent permitted by federal
law, and the form of any coupons to be attached thereto, the
registration, conversion, and exchange privileges, if any, pertaining
thereto, and the time when all of, or any part of, the principal
becomes due and payable.
   (b) The resolution may also contain any other matters authorized
by this chapter or any other law.



180254.  The bonds shall bear interest at a rate or rates not
exceeding the maximum allowable by law, payable at intervals
determined by the commission.


180255.  In the resolution authorizing the issuance of the bonds,
the authority may also provide for the call and redemption of the
bonds prior to maturity at the times and prices and upon other terms
as specified. However, no bond is subject to call or redemption prior
to maturity, unless it contains a recital to that effect or unless a
statement to that effect is printed.



180256.  The principal of, and interest on, the bonds shall be
payable in lawful money of the United States at the office of the
treasurer of the authority, or at other places as may be designated,
or at both the office and other places at the option of the holders
of the bonds.



180257.  The bonds, or each series thereof, shall be dated and
numbered consecutively and shall be signed by the chairperson or vice
chairperson of the authority and the auditor-controller of the
authority, and the official seal, if any, of the authority shall be
attached.
   The interest coupons of the bonds shall be signed by the
auditor-controller of the authority. All of the signatures and seal
may be printed, lithographed, or mechanically reproduced.
   If any officer whose signature appears on the bonds or coupons
ceases to be that officer before the delivery of the bonds, the
officer's signature is as effective as if the officer had remained in
office.



180258.  The bonds may be sold as the authority determines by
resolution, and the bonds may be sold at a price below par, whether
by negotiated or public sale.



180259.  Delivery of any bonds may be made at any place either
inside or outside the state, and the purchase price may be received
in cash or bank credits.


180260.  All accrued interest and premiums received on the sale of
the bonds shall be placed in the fund to be used for the payment of
the principal of, and interest on, the bonds, and the remainder of
the proceeds of the bonds shall be placed in the treasury of the
authority and applied to secure the bonds or for the purposes for
which the debt was incurred. However, when the purposes have been
accomplished, any money remaining shall be either (a) transferred to
the fund to be used for the payment of principal of, and interest on,
the bonds or (b) placed in a fund to be used for the purchase of the
outstanding bonds in the open market at prices and in the manner,
either at public or private sale or otherwise, as determined by the
authority. Bonds so purchased shall be canceled immediately.




180261.  (a) The authority may provide for the issuance, sale, or
exchange of refunding bonds to redeem or retire any bonds issued by
the authority upon the terms, at the times and in the manner which it
determines.
   (b) Refunding bonds may be issued in a principal amount sufficient
to pay all, or any part of, the principal of the outstanding bonds,
the premiums, if any, due upon call and redemption thereof prior to
maturity, all expenses of the refunding, and either of the following:
   (1) The interest upon the refunding bonds from the date of sale
thereof to the date of payment of the bonds to be refunded out of the
proceeds of the sale of the refunding bonds or to the date upon
which the bonds to be refunded will be paid pursuant to call or
agreement with the holders of the bonds.
   (2) The interest upon the bonds to be refunded from the date of
sale of the refunding bonds to the date of payment of the bonds to be
refunded or to the date upon which the bonds to be refunded will be
paid pursuant to call or agreement with the holder of the bonds.
   (c) The provisions of this chapter for the issuance and sale of
bonds apply to the issuance and sale of refunding bonds.



180262.  (a) The authority may borrow money in anticipation of the
sale of bonds which have been authorized pursuant to this chapter,
but which have not been sold or delivered, and may issue negotiable
bond anticipation notes therefor and may renew the bond anticipation
notes from time to time. However, the maximum maturity of any bond
anticipation notes, including the renewals thereof, shall not exceed
five years from the date of delivery of the original bond
anticipation notes.
   (b) The bond anticipation notes, and the interest thereon, may be
paid from any money of the authority available therefor, including
the revenues from the tax. If not previously otherwise paid, the bond
anticipation notes, or any portion thereof, or the interest thereon,
shall be paid from the proceeds of the next sale of the bonds of the
agency in anticipation of which the notes were issued.
   (c) The bond anticipation notes shall not be issued in any amount
in excess of the aggregate amount of the bonds which the authority
has been authorized to issue, less the amount of any bonds of the
authorized issue previously sold, and also less the amount of other
bond anticipation notes therefor issued and then outstanding. The
bond anticipation notes shall be issued and sold in the same manner
as the bonds.
   (d) The bond anticipation notes and the resolutions authorizing
them may contain any provisions, conditions, or limitations which a
resolution of the authority may contain.



180263.  Any bonds issued under this chapter are legal investment
for all trust funds; for the funds of insurance companies, commercial
and savings banks, and trust companies; and for state school funds;
and 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, that money or funds may be
invested in the bonds issued under this chapter, and whenever bonds
of cities, counties, school districts, or other districts within the
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 under this chapter may be so used. The provisions of
this chapter 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.



180264.  Any action or proceedings wherein the validity of the
adoption of the retail transactions and use tax ordinance provided
for in this chapter 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 which 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.