BILL NUMBER: AB 93	CHAPTERED
	BILL TEXT

	CHAPTER  946
	FILED WITH SECRETARY OF STATE  OCTOBER 14, 2001
	APPROVED BY GOVERNOR  OCTOBER 14, 2001
	PASSED THE ASSEMBLY  SEPTEMBER 13, 2001
	PASSED THE SENATE  SEPTEMBER 10, 2001
	AMENDED IN SENATE  SEPTEMBER 7, 2001
	AMENDED IN SENATE  AUGUST 29, 2001
	AMENDED IN SENATE  JUNE 27, 2001
	AMENDED IN ASSEMBLY  MAY 7, 2001
	AMENDED IN ASSEMBLY  APRIL 16, 2001
	AMENDED IN ASSEMBLY  APRIL 3, 2001

INTRODUCED BY   Assembly Member Wayne
   (Coauthors:  Assembly Members Kehoe and Vargas)
   (Principal coauthor:  Senator Peace)
   (Coauthor: Senator Alpert)

                        JANUARY 11, 2001

   An act to add Section 21670.3 to, and to add Division 17
(commencing with Section 170000) to, the Public Utilities Code, and
to amend Sections 4 and 5 of the San Diego Unified Port District Act
(Chapter 67 of the Statutes of 1962, First Extraordinary Session),
relating to airports.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 93, Wayne.   Airports:  San Diego County Regional Airport
Authority.
   (1) Existing law establishes the San Diego Regional Government
Efficiency Commission and requires the commission to submit to the
Legislature a plan and draft legislation for the consolidation of
regional agencies within the San Diego region.
   This bill would establish the San Diego County Regional Airport
Authority as a local entity of regional government with jurisdiction
throughout the County of San Diego, and would require the authority
to adopt the comprehensive airport land use plan for that county and
coordinate the airport planning of public agencies.  The bill would
establish the governing body and structure of the authority, require
the San Diego Unified Port District to transfer the San Diego
International Airport to the authority, and assign various powers and
duties to the authority regarding the establishment and operation of
airports within the county.
   To the extent that these provisions would impose additional duties
upon the port district and other entities of local government, the
bill would create a state-mandated local program.
  (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


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


  SECTION 1.  Section 21670.3 is added to the Public Utilities Code,
to read:
   21670.3.  (a) Sections 21670 and 21670.1 do not apply to the
County of San Diego.  In that county, the San Diego County Regional
Airport Authority, as established pursuant to Section 170002, is
responsible for coordinating the airport planning of public agencies
within the county and shall, on or before June 30, 2005, after
reviewing the existing comprehensive land use plan adopted pursuant
to Section 21675, adopt a comprehensive land use plan.
   (b) Any comprehensive land use plan developed pursuant to Section
21675 and adopted pursuant to Section 21675.1 by the San Diego
Association of Governments shall remain in effect until June 30,
2005, unless the San Diego County Regional Airport Authority adopts a
plan prior to that date pursuant to subdivision (a).
  SEC. 2.  Division 17 (commencing with Section 170000) is added to
the Public Utilities Code, to read:

      DIVISION 17.  SAN DIEGO COUNTY REGIONAL AIRPORT AUTHORITY
      CHAPTER 1.  GENERAL PROVISIONS

   170000.  This division shall be known and may be cited as the San
Diego County Regional Airport Authority Act.
   170002.  There is hereby established the San Diego County Regional
Airport Authority, as a local governmental entity of regional
government, with jurisdiction extending throughout the County of San
Diego.
   170004.  The Legislature hereby finds and declares all of the
following:
   (a) The population in San Diego County is forecasted to grow to
4.1 million persons by 2030, a 45 percent increase over its
population in 2000.  In light of this growth, it is incumbent upon
the region to take actions to provide for an economy that will create
sufficient opportunity and wealth to ensure a high quality of life
for all its residents.
   (b) The globally competitive, export-oriented electronics,
communications, and biotechnology industries of San Diego County
already employ over 300,000 persons, nearly a third of the local
labor force, and will continue to drive the region's economy as it
competes in the expanding national and international markets.
   (c) Air transportation will be an important factor in fostering
continued economic growth in San Diego County, as technology workers
travel by air 40 percent more frequently than workers in other
sectors of the economy.
   (d) According to the Joint Aviation Advisory Committee established
by the San Diego Association of Governments and the San Diego
Unified Port District, San Diego International Airport today
contributes about $4.3 billion to the San Diego regional economy,
which is about 4 percent of the total output of the region's economy.
  With the demand for air travel expected to more than double to 35
million passengers in 2030, an airport capable of supporting that
demand would contribute up to $8 billion to the regional economy.
Failure to increase San Diego's regional airport capacity would
result in 56,000 fewer jobs and up to $2.5 billion less in personal
income by 2030.  More than 50 percent of the reduction in jobs would
occur in the industries related to air exports, including the
high-technology industries that manufacture machinery, electronic
equipment, and instruments.  The balance of the impact would be in
the visitor-related industries.
   (e) The San Diego Regional Government Efficiency Commission was
established under Chapter 764 of the Statutes of 2000 to evaluate
regional governance in San Diego County and to submit a report to the
Legislature for improving regional governance.  To facilitate its
purpose, that commission formed a Port Working Group, a Governance
Working Group, a Transportation Working Group, and an Environmental
and Land Use Working Group to examine regional governance in the
region and to propose options for its improvement.  The Port Working
Group studied the role and function of the San Diego Unified Port
District and in collaboration with the Transportation Working Group
created a special joint committee to examine airport development
issues in the region.  After reviewing the options developed by the
joint committee, the commission has recommended to the Legislature,
by resolution adopted on July 6, 2001, that a new airport authority
be created by statute in San Diego County.
   (f) Because of the significant regional consequences of airport
development and operations, it is important that the future
development of major airport facilities in San Diego County be
addressed in the context of a regional decisionmaking process that
has regional representation.
   (g) In an effort to assure the continued military readiness of the
United States Department of Defense (DOD), comprehensive airport
planning must consider and protect military airspace needs in the San
Diego region.  The activities of the DOD in the San Diego region
require mission-essential airspace for training and operations.  In
addition, the DOD has direct economic expenditures in San Diego
County of nearly $10 billion annually, and represents over 376,000
residents of the region.  For these reasons, the DOD is a major
stakeholder in the region's comprehensive plans for a viable airport
solution.
   170006.  For the purposes of this division, the following terms
have the following meanings, unless the context requires otherwise.
   (a) The "authority" means the San Diego County Regional Airport
Authority established under this division.
   (b) The "board" means the governing board of the authority
established as specified in Section 170016.
   (c) The "interim board" means the limited term board established
as specified in Section 170012.
   (d) The "port" means the San Diego Unified Port District
established under the San Diego Unified Port District Act (Chapter 67
of the Statutes of 1962, First Extraordinary Session).
   (e) The "San Diego International Airport" means the airport
located at Lindbergh Field in the County of San Diego.
   (f) (1) The "north area cities" mean the cities of Carlsbad, Del
Mar, Encinitas, Escondido, Oceanside, San Marcos, Solana Beach, and
Vista.
   (2) The "south area cities" mean the cities of Coronado, Imperial
Beach, Chula Vista, National City, Lemon Grove, El Cajon, La Mesa,
Santee, and Poway.

      CHAPTER 2.  GOVERNING BODY

   170010.  The interim executive director of the authority shall be
the person who is the Senior Director of Aviation of the port on
September 1, 2001.  The interim executive director shall undertake
all regular and necessary measures and decisions for the efficient
operation of the authority until January 6, 2003.
   170012.  (a) There shall be an interim board of the authority to
advise the interim executive director, to prepare and adopt the
transition plan required under Section 170062, and to oversee the
activities required pursuant to subdivisions (c), (d), (e), and (f)
of Section 170048.
   (b) The interim board shall be chaired by the interim executive
director.
   (c) The interim executive director shall appoint five members to
the interim board.  The members shall be geographically
representative of San Diego County and shall be serving as elected
officials of, appointees to, or representatives of local, state, or
federal governmental agencies or bodies, at the time of appointment.

   (d) The first meeting of the interim board shall be on January 7,
2002, at a time and location to be determined by the chair.
Thereafter, the chair shall hold monthly public meetings of the
interim board.
   (e) The interim board shall be dissolved on December 2, 2002.
   170014.  To assist the interim board and the interim executive
director on all matters related to the transition of San Diego
International Airport to the authority, a management advisory
committee shall be appointed, with membership as follows:
   (a) The general manager of the San Diego Metropolitan Transit
Development Board.
   (b) The executive director of the San Diego Association of
Governments, a joint exercise of powers agency.
   (c) The executive director of the North San Diego County Transit
District.
   (d) A representative of the port, appointed by the board of
directors of the port.
   170016.  (a) The permanent board shall be established pursuant to
this section.  The board shall consist of nine members, with three
members serving in an executive committee.
   (b) The following three members shall comprise the executive
committee.
   (1) A member of the public who shall be appointed by the Board of
Supervisors of the County of San Diego and shall be a resident of an
unincorporated area of the county.  The initial term for this member
shall be two years.
   (2) A member of the public who shall be appointed by the Governor
and confirmed by the Senate, shall reside in the County of San Diego,
but not within the City of San Diego.  The initial term for this
member, upon confirmation of the Senate, shall be six years.
   (3) A member the public who shall be appointed by the Mayor of the
City of San Diego and shall be confirmed by a majority vote of the
San Diego City Council.  The initial term for this member shall be
four years.
   (c) The remaining six members of the board shall be as follows:
   (1) The Mayor of the City of San Diego, or a member of the city
council designated by the mayor to be his or her alternate.
   (2) A member the public appointed by the Mayor of the City of San
Diego.  The initial term for this member shall be two years.
   (3) The mayor of the most populous city, as of the most recent
decennial census, among the north area cities.  If that mayor
declines to serve, he or she shall appoint a member of the public who
is a resident of one of north area cities.  The initial term for
this member shall be two years.
   (4) (A) If the member serving under paragraph (3) is a mayor, then
a member of the public selected by the mayors of the north area
cities from one of those cities, excluding the most populous city.
   (B) If the person serving under paragraph (3) is not a mayor, then
the mayors of the north area cities shall select a mayor or council
member of a north area city, excluding the most populous city, to
serve as the member.
   (C) The initial term for this member shall be four years.
   (5) The mayor of the most populous city, as of the most recent
decennial census, among the south area cities.  If that mayor
declines to serve, he or she shall appoint a member of the public who
is a resident of one of south area cities.  The initial term for
this member shall be six years.
   (6) (A) If the member serving under paragraph (5) is a mayor, then
a member of the public selected by the mayors of the south area
cities from one of those cities, excluding the most populous city.
   (B) If the person serving under paragraph (5) is not a mayor, then
the mayors of the south area cities shall select a mayor or council
member of a south area city, excluding the most populous city, to
serve as the member.
   (C) The initial term for this member shall be four years.
   (d) The initial chair shall be the person appointed to the board
pursuant to paragraph (2) of subdivision (b).  Thereafter, the
executive committee shall appoint the chair, who shall serve for a
two-year portion of his or her term as a board member, upon
confirmation of the full board.  A chair may be appointed to
consecutive terms, subject to confirmation of the full board.
   (e) (1) Members appointed to the first board shall be appointed on
or before October 31, 2002, and shall be seated as the board on
December 2, 2002.
   (2) Any appointment not filled by the respective appointing
authority on or before December 1, 2002, shall be filled by
appointment by the Governor, consistent with the eligibility
requirements of this section for that membership position.
   (f) (1) After the initial term, all terms shall be 4 years, except
as otherwise required under Subdivision (b) of Section 170018.
   (2) The expiration date of the term of office shall be the first
Monday in December in the year in which the term is to expire.
   170018.  (a) The appointing authority for a member whose term has
expired shall appoint that member's successor for a full term of four
years.
   (b) The membership of any member serving on the board as a result
of holding another public office shall terminate when the member
ceases holding the other public office.
   (c) Any vacancy in the membership of the board shall be filled for
the expired term by a person selected by appointing authority for
that position.
   170020.  A member may be removed only for cause and only by his or
her appointing authority.
   170022.  Any member may be reappointed to additional terms.
   170024.  (a) Except for the members of the executive committee,
members shall be paid one hundred dollars ($100) per regular,
special, or committee meetings, for not more than four meetings per
month.
   (b) Members of the executive committee shall receive a salary
equal to the salary of superior court judge in the County of San
Diego.
   (c) Members may be paid for direct out-of-pocket expenses.
   (d) The board shall adopt a compensation and reimbursement policy
within three months of being constituted.
   170026.  (a) The executive committee shall appoint the following
officers of the authority subject to confirmation of the board:
   (1) Executive Director.
   (2) General Counsel.
   (3) Auditor.
   (b) The executive director shall appoint all other officers and
employees.

      CHAPTER 3.  POWERS AND DUTIES

   170030.  The authority has perpetual succession and may adopt a
seal and alter it at its pleasure.
   170032.  The authority may sue and be sued in all actions and
proceedings, in all courts and tribunals of competent jurisdiction.
   170034.  All the provisions of Section 120242 are applicable to
the authority, and the authority may exercise those provisions within
its area of jurisdiction.
   170038.  The authority may take by grant, purchase, devise, or
lease or otherwise acquire and hold, real and personal property
outside its area of jurisdiction in order to further its purposes.
   170040.  The authority may contract with any department or agency
of the United States, with any state or local governmental agency, or
with any person upon those terms and conditions that the authority
finds are in its best interests.
   170042.  The board may act only by ordinance or resolution.  A
majority of the membership of the board shall constitute a quorum for
the transaction of business.
   170044.  Except as otherwise specifically provided to the contrary
in this chapter, a recorded majority vote of the total membership of
the board of directors is required on each action.
   170046.  The authority shall maintain accounting records and shall
report accounting transactions in accordance with generally accepted
accounting principles as adopted by the Government Accounting
Standards Board (GASB) of the Financial Accounting Foundation for
both public reporting purposes and for reporting of activities to the
Controller.
   170048.  (a) The authority shall have the exclusive responsibility
within its area of its jurisdiction to study and plan any
improvements, expansion, or enhancements that affect the regional
airport system of San Diego County.
   (b) The authority may commission planning, engineering, economic,
and other studies to provide information to the board for making
decisions about the location, design, management, and other features
of a future airport.
   (c) The San Diego Association of Governments, or its successor,
shall include all airport system plans and facilities selected by the
authority in the regional transportation plan.
   (d) (1) Not later than 60 days after the effective date of this
chapter, the San Diego Association of Governments and the port shall
transfer and assign to the authority all contracts in force for
studying possible sites for an airport, the economic viability and
impact of an airport, the environmental consequences of an airport,
public opinion or attitudes regarding an airport's location, and any
other contracts related to the location and development of an airport
in the County of San Diego.
   (2) The contracts described in paragraph (1) shall include, but
need not be limited to, the contracts associated with the Joint
Aviation Advisory Committee.
   (3) The transfer of contracts required under this subdivision
shall include the revenue from state or federal grants, local funds,
and other sources of revenue committed to funding the contracts until
their completion.
   (e) The policy direction for the study described in subdivision
(d) shall become the responsibility of the authority.  The authority
shall consider the concepts and ideas of the San Diego Association of
Governments, the port, and other entities, both public and private.

   (f) The authority may continue the Joint Aviation Advisory
Committee to assist in conducting the analyses for determining a site
for a new airport.
   (g) The authority, the San Diego Association of Governments, local
agencies, and the Department of Transportation shall cooperate to
develop effective surface transportation access to new and existing
airports.
   170050.  The authority shall be the only agency, public or
private, in the County of San Diego that is eligible to take
ownership of airports owned by the United States government and are
declared surplus or are otherwise made available to state or local
governmental agencies.
   170052.  The authority shall be responsible for developing all
aspects of airport facilities that it operates, including, but not
limited to, all of the following:
   (a) The location of terminals, hangers, aids to air navigation,
parking lots and structures, and all other facilities and services
necessary to serve passengers and other customers of the airport.
   (b) Street and highway access and egress with the objective of
minimizing, to the extent practicable, traffic congestion on access
routes in the vicinity of the airport.
   (c) Providing for public mass transportation access in cooperation
and coordination with the responsible public transportation agency
in whose jurisdiction the airport is located.
   (d) Analyzing and developing intercity bus and passenger rail
access to terminals in cooperation with an established agency or
organization experienced in developing and operating that service, if
the service or the technology proposed for implementation is
demonstrated to be in regular, scheduled revenue service and is
demonstrated to be a cost-effective investment when considering both
direct and indirect benefits.  If that service is proven feasible,
the authority shall endeavor to maximize the convenience of its
patrons by incorporating the service into the design of its
terminals.
   170054.  (a) The authority shall form an advisory committee to
assist it in performing its responsibilities related to the planning
and development of all airport facilities for the County of San
Diego, including the airport activities and operations of the United
States Department of Defense.  In selecting members for the
committee, the authority shall include persons knowledgeable about
airport management, passenger and freight air transportation
operations and economics, general aviation, the natural environment,
regional economic development, business, including the technology
sector of the economy.
   (b) To the extent feasible, the advisory committee shall include
representatives from the Department of Transportation, local public
transit authorities, local governments, the campuses of the
University of California and the California State University in the
region, the United States Department of Defense, and other groups and
residents of San Diego County.
   (c) When forming the advisory committee, the authority shall make
its selections for membership from individuals representing all
elements of the County of San Diego.
   170056.  The port shall transfer the title and ownership of the
San Diego International Airport to the authority.  The transfer shall
be consistent with the transition plan required under Section 170062
and shall include, but need not be limited to, all of the following:

   (a) All real and personal property, including, but not limited to,
all terminals, runways, taxiways, aprons, hangers, aids to air
navigation, emergency vehicles or facilities, parking facilities for
passengers and employees, and buildings and facilities used to
operate, maintain, and manage the airport.
   (b) All contracts with airport tenants, concessionaires,
leaseholders, and others.
   (c) All financial obligations secured by revenues and fees
generated from the operations of the airport, including, but not
limited to, bonded indebtedness associated with the airport.
   (d) All financial reserves, including, but not limited to, sinking
funds and other credits.
   (e) All office equipment, including, but not limited to,
computers, records and files, software required for financial
management, personnel management, and accounting and inventory
systems.
   170058.  Property that is adjacent to the San Diego International
Airport, is owned by the port, and is commonly referred to as the
"General Dynamics Property" shall continue to be operated by the port
as a parking facility.
   170058.5.  If the authority is required to acquire the "General
Dynamics Property" described in Section 170058 as part of an adopted
airport expansion plan, the value of the property for purposes of
that acquisition shall be set at the fair market value that the
property holds on June 30, 2001, plus an adjustment for inflation.
   170059.  The port, in consultation with the authority, may
relocate parking facilities.  However, the port may not take any
action to diminish the amount of parking available at the San Diego
International Airport without the concurrence of the authority.
   170060.  The authority shall be the trustee of any public lands
and other assets transferred from the port to the authority.  The
authority shall hold and administer those lands and assets pursuant
to the terms and conditions set forth in the San Diego Port District
Act for the purposes of operating airport facilities.  The
trusteeship of those lands and assets shall revert to the port on the
date that airport operations cease on those lands.
   170062.  (a) Under the leadership of the interim board, a
transition plan shall be developed to facilitate the transfer of the
San Diego International Airport to the authority.  To facilitate the
preparation of a transition plan, the authority and the port may
jointly commission a certified audit to determine the financial
condition of the San Diego International Airport, including, but not
limited to, the obligations of the airport and the reasonableness of
the overhead charges being paid by the airport to the port.
   (b) The port shall cooperate in every way to facilitate the
transfer of the San Diego International Airport to the authority.
   (c) In the preparation of the transition plan, priority shall be
given to ensuring continuity in the programs, services, and
activities of the San Diego International Airport.
   (d) The transfer of the San Diego International Airport to the
authority shall be completed on December 2, 2002.
   (e) The transfer may not in any way impair any contracts with
vendors, tenants, employees, or other parties.
   170064.  (a) From revenues in reserve accounts attributable to
airport operations, the port shall loan the authority the sum of one
million dollars ($1,000,000) for the first year of operation of the
authority.  The authority shall repay this loan with interest on or
before January 1, 2008.  The interest rate on the loan may be no
greater than the discount rate established by the United States
Federal Reserve Bank as of December 31, 2001.
   (b) The authority may raise revenues to fund all of its
activities, operations, and investments consistent with its purposes.
  The sources of revenue available to the authority may include, but
are not limited to, imposing fees, rents, or other charges for
facilities, services, the repayment of bonded indebtedness, and other
expenditures consistent with the purposes of the authority.
   (c) To the extent practicable, the authority shall endeavor to
maximize the revenues generated from enterprises located on the
property of the authority.
   (d) The authority may receive state and federal grants for
purposes of planning, constructing, and operating an airport and for
providing ground access to the airport.
   170066.  (a) The authority is the only agency in the County of San
Diego authorized to receive proceeds from state grants for the
purposes of planning, constructing, or making other improvements to a
civilian airport.
   (b) The authority is the only agency authorized in the County of
San Diego to receive proceeds from grants from the federal
government, including,  but not limited to, the Federal Aviation
Administration, for purposes of planning, constructing, or making
other improvements to a civilian airport.
   (c) The authority shall cooperate with all other airports in the
county to further the development of a countywide aviation system.
To this end, the authority shall facilitate the pass-through of state
and federal grants, without deduction for any cost associated with
processing that pass-through, to local airport operators, if those
grants are for purposes that are consistent with the aviation element
of the regional transportation plan or with an adopted program of
projects.
   170068.  The authority may accept the transfer of ownership of
other publicly owned airports in the County of San Diego.  Any
transfer shall include the preparation of a transition plan to ensure
the orderly transfer of assets and obligations.  In accepting a
transfer, the authority may assume no financial obligations other
than those associated with the operation of the airport being
transferred.
   170070.  (a) The authority may issue bonds, payable from revenue
of any facility or enterprise operated, acquired, or constructed by
the authority, in the manner provided by 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).
   (b) The authority is a local agency within the meaning of the
Revenue Bond Law of 1941.  For all the purposes of this article, the
term "enterprise," as used in the Revenue Bond Law of 1941, includes
the airport system or any or all facilities and all additions and
improvements that the authority's governing board authorizes to be
acquired or constructed.
                           (c) Nothing in this section prohibits the
authority from availing itself of any procedure provided in this
chapter for the issuance of bonds of any type or character for any of
the authorized airport facilities.  All bond proceedings may be
carried on simultaneously or, in the alternative, as the authority
may determine.
   170072.  The authority may levy special benefit assessments
consistent with the requirements of Article XIII D of the California
Constitution to finance capital improvements, including, but not
limited to, special benefit assessments levied pursuant to any of the
following:
   (a) The Improvement Act of 1911 (Division 7 (commencing with
Section 5000) of the Streets and Highways Code).
   (b) The Improvement Bond Act of 1915 (Division 15 (commencing with
Section 8500) of the Streets and Highways Code).
   (c) The Municipal Improvement Act of 1913 (Division 12 (commencing
with Section 10000) of the Streets and Highways Code).
   (d) The Landscaping and Lighting Act of 1972 (Part 2 (commencing
with Section 22500) of Division 15 of the Streets and Highways Code).

   (e) Chapter 1 (commencing with Section 99000) of Part 11 of
Division 10 of the Public Utilities Code, if the authority
participates in the development of rail access to an airport.
   170074.  The authority may borrow money in accordance with Article
7 (commencing with Section 53820) of, Article 7.6 (commencing with
Section 53850) of, or Article 7.7 (commencing with Section 53859) of,
Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code.

   170076.  (a) The authority may borrow money in anticipation of the
sale of any bonds that have been authorized to be issued, but have
not been sold and delivered, and may issue negotiable bond
anticipation notes therefor, and may renew the bond anticipation
notes from time to time, but the maximum maturity of any bond
anticipation notes, including the renewals thereof, may not exceed
five years from the date of delivery of the original bond
anticipation notes.  The bond anticipation notes may be paid from any
money of the authority available therefor and not otherwise pledged.

   (b) If not previously otherwise paid, the bond anticipation notes
shall be paid from the proceeds of the next sale of the bonds of the
authority in anticipation of which they were issued.  The bond
anticipation notes may not be issued in any amount in excess of the
aggregate amount of bonds that 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 therefore issued and then outstanding.  The bond anticipation
notes shall be issued and sold in the same manner as the bonds.  The
bond anticipation notes and the resolution or resolutions authorizing
them may contain any provisions, conditions, or limitations that a
resolution of the authority authorizing the issuance of bonds may
contain.
   170078.  The authority may bring an action to determine the
validity of any of its bonds, equipment trust certificates, warrants,
notes, or other evidences of indebtedness pursuant to Chapter 9
(commencing with Section 860) of Title 10 of Part 2 of the Code of
Civil Procedure.
   170080.  All bonds or other evidences of indebtedness issued by
the authority under this chapter, and the interest thereon, are free
and exempt from all taxation within the state, except for transfer,
franchise, inheritance, and estate taxes.
   170082.  (a) Notwithstanding any other provisions of this division
or any other law, the provisions of all ordinances, resolutions, and
other proceedings in the issuance by the authority of any bonds,
bonds with a pledge of revenues, bonds for improvement districts,
revenue bonds, equipment trust certificates, notes, or any and all
evidences of indebtedness or liability constitute a contract between
the authority and the holders of the bonds, equipment trust
certificates, notes, or evidences of indebtedness or liability, and
the provisions thereof are enforceable against the authority or any
or all of its successors or assigns, by mandamus or any other
appropriate suit, action, or proceeding in law or in equity in any
court of competent jurisdiction.
   (b) Nothing in this division or in any other law shall be held to
relieve the authority or the territory included within it from any
bonded or other debt or liability contracted by the authority.
   (c) Upon dissolution of the authority or upon withdrawal of
territory therefrom, that territory formerly included within the
authority, or withdrawn therefrom, shall continue to be liable for
the payment of all bonded and other indebtedness or liabilities
outstanding at the time of the dissolution or withdrawal as if the
authority had not been so dissolved or the territory withdrawn
therefrom, and it shall be the duty of the successors or assigns to
provide for the payment of the bonded and other indebtedness and
liabilities.
   (d) Except as may be otherwise provided in the proceedings for the
authorization, issuance, and sale of any revenue bonds, bonds
secured by a pledge of revenues, or bonds for improvement districts
secured by a pledge of revenues, revenues of any kind or nature
derived from any revenue-producing improvements, works, facilities,
or property owned, operated, or controlled by the authority shall be
pledged, charged, assigned, and have a lien thereon for the payment
of the bonds as long as they are outstanding, regardless of any
change in ownership, operation, or control of the revenue-producing
improvements, works, facilities, or property and it shall, in any
later event or events, be the duty of the successors or assigns to
continue to maintain and operate the revenue-producing improvements,
works, facilities, or property as long as bonds are outstanding.
   170084.  The authority shall assume and be bound by the terms and
conditions of employment set forth in any collective bargaining
agreement between the port and any labor organization affected by the
creation of the authority, as well as the duties, obligations, and
liabilities arising from, or relating to, labor obligations imposed
by state or federal law upon the port.  The employees of the port
affected by this division shall become employees of the authority and
shall suffer no loss of employment or reduction in wages, health and
welfare benefits, seniority, retirement benefits or contributions
made to retirement plans, or any other term of condition of
employment as a result of the enactment of this division.
  SEC. 3.  Section 4 of the San Diego Unified Port District Act
(Chapter 67 of the Statutes of 1962, First Extraordinary Session), as
amended by Section 1 of Chapter 399 of the Statutes of 1996, is
amended to read:
  Sec. 4.  (a) A port district for the acquisition, construction,
maintenance, operation, development and regulation of harbor works
and improvements, including rail and water, for the development,
operation, maintenance, control, regulation, and management of the
harbor of San Diego upon the tidelands and lands lying under the
inland navigable waters of San Diego Bay, and for the promotion of
commerce, navigation, fisheries, and recreation thereon, may be
established or organized and governed as provided in this act and it
may exercise the powers expressly granted herein.
   (b) Subject to Section 87 and any other provision of applicable
law, the district may use the powers and authority granted pursuant
to this section to protect, preserve, and enhance all of the
following:
   (1) The physical access to the bay.
   (2) The natural resources of the bay, including plant and animal
life.
   (3) The quality of water in the bay.
   (c) Notwithstanding any other provision of law, the powers and
authority specified in this section are to be used only as necessary
or incident to the development and operation of a port and shall not
apply to public utilities operated under the jurisdiction of the
Public Utilities Commission of the State of California.
   (d) This section shall become operative on December 2, 2002.
  SEC. 4.  Section 5 of the San Diego Unified Port District Act
(Chapter 67 of the Statutes of 1962, First Extraordinary Session), as
amended by Section 1.5 of Chapter 399 of the Statutes of 1996, is
amended to read:
  Sec. 5.  (a) The area within the district shall include all of the
corporate area of each of the cities of San Diego, Chula Vista,
Coronado, National City, and Imperial Beach which establish the
district as provided in this act, and any unincorporated territory in
the County of San Diego contiguous thereto, which is economically
linked to the development and operation of San Diego Bay, included in
the district by the board of supervisors of the county as provided
in this act.  The regulatory, taxing, and police power jurisdiction
of the district, as otherwise provided for in this act, shall apply
to the above-described area.
   (b) In addition to the powers and authority described in
subdivision (a), the district shall exercise its land management
authority and powers over the following areas:
   (1) The tidelands and submerged lands granted to the district
pursuant to this act or any other act of the Legislature.
   (2) Any other lands conveyed to the district by any city or the
County of San Diego or acquired by the district in furtherance of the
district's powers and purposes as provided in Section 87.
   (c) This section shall become operative on December 2, 2002.
  SEC. 5.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.