BILL NUMBER: SB 613 AMENDED
BILL TEXT
AMENDED IN SENATE DECEMBER 15, 2009
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
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 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
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 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 To provide credit enhancement,
liquidity support, or both, 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) Prior to exercising the authority granted pursuant to this
section, the board shall adopt criteria to govern its determinations
to use pledges pursuant to this section. The criteria may include,
but are not limited to, evaluating the use of a pledge in lieu of or
in combination with other credit enhancement and liquidity options
available to the board.
(f)
(g) 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 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 districts and the enactment of this special
law is necessary to enable the districts to lower the financial
burden of debt service for the taxpayers of those districts.