BILL NUMBER: SB 1268 CHAPTERED 06/27/02 CHAPTER 75 FILED WITH SECRETARY OF STATE JUNE 27, 2002 APPROVED BY GOVERNOR JUNE 26, 2002 PASSED THE ASSEMBLY JUNE 13, 2002 PASSED THE SENATE APRIL 4, 2002 AMENDED IN SENATE FEBRUARY 26, 2002 INTRODUCED BY Senator Battin JANUARY 15, 2002 An act to amend Section 90 of, to repeal and add Section 91 of, and to repeal Sections 92, 93, 94, 95, 96, 97, 98, 99, 100, and 101 of, the Lake Cuyamaca Recreation and Park District Act (Chapter 1654 of the Statutes of 1961), relating to parks and recreation. LEGISLATIVE COUNSEL'S DIGEST SB 1268, Battin. Lake Cuyamaca Recreation and Park District. (1) Existing law establishes the Lake Cuyamaca Recreation and Park District, and prescribes the functions and duties of the district. Existing law authorizes the district to acquire all necessary and proper lands and facilities by borrowing funds or purchasing on contract. Existing law prohibits the amount of indebtedness incurred from exceeding an amount equal to the anticipated tax income for a 2-year period, and requires that all indebtedness be repaid in approximately equal annual installments during a period not to exceed 5 years from the date on which the indebtedness is incurred, at a rate not to exceed 6% per annum. Existing law requires that a tax be levied and collected sufficient to pay the interest and principal on the indebtedness. This bill would specify that the amount of indebtedness shall not exceed an amount equal to the anticipated revenue for a 2-year period, and would require that all indebtedness be repaid in annual installments during a period not to exceed 10 years from the date on which the indebtedness is incurred, at a rate that is less than or equal to the rate permitted under certain provisions of existing law. The bill would delete those provisions requiring that a tax be levied to repay the principal and interest on the indebtedness. (2) Existing law authorizes the district board to call an election for the issuance of bonds to pay for the acquisition of a structure or improvement of real property if the acquisition or improvement reasonably requires an expenditure of funds in excess of available funds of the district derived from ordinary taxation. Existing law prescribes procedures for, and imposes conditions upon, the issuance of bonds by the district. This bill would require the district to proceed under certain provisions of existing law relating to issuance of bonds by recreation and park districts, if the district elects to incur general obligation bonded indebtedness for the acquisition or improvement of real property or for the funding or refunding of any outstanding indebtedness. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 90 of the Lake Cuyamaca Recreation and Park District Act (Chapter 1654 of the Statutes of 1961) is amended to read: Sec. 90. The district may acquire all necessary and proper lands and facilities, or any portion thereof, by means of a plan to borrow money or by purchase on contract. The amount of indebtedness to be incurred shall not exceed an amount equal to the anticipated revenue for a two-year period, and shall be repaid in approximately equal annual installments during a period not to exceed 10 years from the date on which it is incurred. An indebtedness shall bear interest at a rate that is less than or equal to the rate permitted under Article 7 (commencing with Section 53530) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code. Each obligation shall be authorized by a resolution adopted by the affirmative votes of at least four-fifths of the members of the district board and shall be evidenced by a promissory note or contract approved by at least four-fifths of the members of the district board. The indebtedness authorized to be incurred by this section shall be in addition to, and this section shall not apply to, any bonded indebtedness authorized by vote of the electors. SEC. 2. Section 91 of the Lake Cuyamaca Recreation and Park District Act (Chapter 1654 of the Statutes of 1961) is repealed. SEC. 3. Section 91 is added to the Lake Cuyamaca Recreation and Park District Act (Chapter 1654 of the Statutes of 1961), to read: Sec. 91. If the district board elects to incur general obligation bonded indebtedness for the acquisition or improvement of real property or for the funding or refunding of any outstanding indebtedness, the district board shall proceed under Article 11 (commencing with Section 5790) of Chapter 4 of Division 5 of the Public Resources Code. SEC. 4. Section 92 of the Lake Cuyamaca Recreation and Park District Act (Chapter 1654 of the Statutes of 1961) is repealed. SEC. 5. Section 93 of the Lake Cuyamaca Recreation and Park District Act (Chapter 1654 of the Statutes of 1961) is repealed. SEC. 6. Section 94 of the Lake Cuyamaca Recreation and Park District Act (Chapter 1654 of the Statutes of 1961) is repealed. SEC. 7. Section 95 of the Lake Cuyamaca Recreation and Park District Act (Chapter 1654 of the Statutes of 1961) is repealed. SEC. 8. Section 96 of the Lake Cuyamaca Recreation and Park District Act (Chapter 1654 of the Statutes of 1961) is repealed. SEC. 9. Section 97 of the Lake Cuyamaca Recreation and Park District Act (Chapter 1654 of the Statutes of 1961) is repealed. SEC. 10. Section 98 of the Lake Cuyamaca Recreation and Park District Act (Chapter 1654 of the Statutes of 1961) is repealed. SEC. 11. Section 99 of the Lake Cuyamaca Recreation and Park District Act (Chapter 1654 of the Statutes of 1961) is repealed. SEC. 12. Section 100 of the Lake Cuyamaca Recreation and Park District Act (Chapter 1654 of the Statutes of 1961) is repealed. SEC. 13. Section 101 of the Lake Cuyamaca Recreation and Park District Act (Chapter 1654 of the Statutes of 1961) is repealed.