Bill Text: CA AB1919 | 2015-2016 | Regular Session | Chaptered

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Bill Title: Local transportation authorities: bonds.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2016-09-28 - Chaptered by Secretary of State - Chapter 745, Statutes of 2016. [AB1919 Detail]

Download: California-2015-AB1919-Chaptered.html

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BILL NUMBER: AB 1919	CHAPTERED
	BILL TEXT

	CHAPTER  745
	FILED WITH SECRETARY OF STATE  SEPTEMBER 28, 2016
	APPROVED BY GOVERNOR  SEPTEMBER 28, 2016
	PASSED THE SENATE  AUGUST 16, 2016
	PASSED THE ASSEMBLY  MAY 12, 2016
	AMENDED IN ASSEMBLY  APRIL 4, 2016

INTRODUCED BY   Assembly Member Quirk

                        FEBRUARY 11, 2016

   An act to amend Section 180260 of the Public Utilities Code,
relating to transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1919, Quirk. Local transportation authorities: bonds.
   The Local Transportation Authority and Improvement Act provides
for the creation in any county of a local transportation authority
and authorizes the imposition of a retail transactions and use tax by
ordinance, subject to approval of the ordinance by 2/3 of the
voters. Existing law authorizes the ballot proposition submitted to
the voters to include a provision authorizing bonds to be issued that
would be payable from the proceeds of the transactions and use tax.
Existing law requires the bond proceeds to be placed in the treasury
of the local transportation authority and to be used for allowable
transportation purposes, except that accrued interest and premiums
received on the sale of the bonds are required to be placed in a fund
to be used for the payment of bond debt service.
   This bill would instead require the premiums received on the sale
of the bonds to be placed in the treasury of the local transportation
authority to be used for allowable transportation purposes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 180260 of the Public Utilities Code is amended
to read:
   180260.  All accrued interest 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.