BILL NUMBER: SB 613	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 14, 2009
	AMENDED IN SENATE  APRIL 2, 2009

INTRODUCED BY   Senator Harman

                        FEBRUARY 27, 2009

   An act to add Section 36447.15 to the Water Code, relating to
 the Irvine Ranch Water District   water
districts  .



	LEGISLATIVE COUNSEL'S DIGEST


   SB 613, as amended, Harman. Irvine Ranch Water District  and
Santa Margarita Water District  .
   The California Water District Law provides for the formation and
operation of California water districts. That district law authorizes
the Irvine Ranch Water District  , a California water
district   and the Santa Margarita Water District, which
are California water districts  , to form improvement districts
and to issue and sell general obligation bonds and consolidated
general obligation bonds for improvement districts of  the
district   those districts  in accordance with
specified requirements.
   This bill would authorize the Irvine Ranch Water District  and
the Santa Margarita Water District  to pledge and apply all or
part of the revenues of  the district   each
district  to the payment or security of any or all of the
principal, redemption price, and purchase price of general obligation
bonds for improvement districts and consolidated general obligation
bonds for improvement districts, and the interest thereon, in
accordance with specified requirements. The bill would make
legislative findings and declarations regarding the need for special
legislation.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 36447.15 is added to the Water Code, to read:
   36447.15.  (a)  (1)    Notwithstanding Section
36447, this section applies only to the Irvine Ranch Water District
 and the Santa Margarita Water District  . 
   (2) As used in this section, "district" means the Irvine Ranch
Water District and the Santa Margarita Water District. 
   (b) In connection with, or incidental to, the issuance or carrying
by the district of any general obligation bonds for improvement
districts or consolidated general obligation bonds for improvement
districts, the district may pledge and apply all or any part of the
revenues of the district to the payment or security of any or all of
the principal, redemption price, and purchase price of those bonds,
and the interest thereon, in the manner and upon terms that the board
may deem advisable.
   (c) In connection with the pledge, the board may provide in the
resolution, order, indenture, trust agreement, loan agreement, lease,
installment sale agreement, pledge agreement, or other document in
which the pledge is provided for or created, any covenants, promises,
restrictions, and provisions that the district may deem necessary or
desirable, including, but not limited to, covenants, promises,
restrictions, and provisions relating to the use of bond proceeds,
the maintenance, operation, and preservation of the district's
facilities, any rates and charges to be established and collected by
the district, including rates and charges for the services or
products furnished or provided by the district's facilities, the
incurring of additional indebtedness payable from the revenues, and
the establishment, maintenance, and use of reserve funds, sinking
funds, interest and redemption funds, maintenance and operation
funds, and other special funds for the payment or security of any or
all of the principal, redemption price, and purchase price of bonds
and the interest thereon.
   (d) For the purposes of carrying out this section, the board may
exercise, but shall not be limited to exercising, the powers
specified in 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).
   (e) Chapter 5.5 (commencing with Section 5450) of Division 6 of
Title 1 of the Government Code shall govern the creation of pledges
authorized by this section.
   (f) The authority granted by this section is in addition to, and
not in derogation of, any authority granted by other provisions of
law relating to the payment of the district's general obligation
bonds from the proceeds of assessments to be levied upon and
collected from lands of any improvement district or relating to the
levy and collection of the assessments. This section does not affect
any other law authorizing or providing for the issuance or carrying
of bonds by the district. This section shall be deemed to provide a
complete and supplemental method for exercising the powers authorized
by this section, and shall be deemed supplemental to the powers
conferred by other applicable laws.
  SEC. 2.  The Legislature finds and declares that this act, which is
applicable only to the Irvine Ranch Water District  and the
Santa Margarita Water District  , is necessary because of the
unique and special financing requirements applicable to  the
district   those districts  . It is, therefore,
hereby declared that a general law within the meaning of Section 16
of Article IV of the California Constitution cannot be made
applicable to the  district   districts 
and the enactment of this special law is necessary to enable the
 district   districts  to lower the
financial burden of debt service for the taxpayers of  the
district   those districts  .