BILL NUMBER: AB 612	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Gordon

                        FEBRUARY 16, 2011

   An act to amend Section 5544.2 of the Public Resources Code,
relating to parks and recreation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 612, as introduced, Gordon. Parks and recreation: districts:
repayment of indebtedness.
   Existing law provides for the creation and powers and duties of
regional park districts, regional park and open-space districts, and
regional open-space districts. Existing law authorizes those
districts to acquire all necessary and proper lands and facilities by
means of a plan to borrow money or by purchase on contract. Existing
law requires indebtedness that is incurred in that manner to bear
interest at a rate not exceeding 10% per annum, or if higher, not
exceeding the rate provided under provisions governing issuance of
local general obligation bonds. Under existing law, indebtedness that
is incurred in that manner on or after July 1, 1982, is generally
required to be repaid during a period that does not exceed 20 years
from the date on which it is incurred. Certain indebtedness incurred
in that manner by the East Bay Regional Park District is required to
be repaid in a period that does not exceed 30 years.
   This bill would require indebtedness that is incurred in that
manner by the East Bay Regional Park District or the Midpeninsula
Regional Open Space District, on or after January 1, 2012, to be
repaid during a period that does not exceed 30 years. The bill would
make conforming changes.
   The bill would modify the rate at which any indebtedness incurred
in that manner is required to bear interest by deleting the
requirement that it not exceed 10% per annum, and instead authorizing
a rate not exceeding the rate allowable under provisions governing
issuance of local general obligation bonds.
   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 5544.2 of the Public Resources Code is amended
to read:
   5544.2.  (a) A 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. 
   (b) The amount of indebtedness to be incurred shall not exceed an
amount equal to the anticipated property tax revenue allocations for
the next five-year period derived pursuant to Chapter 6 (commencing
with Section 95) of Part 0.5 of Division 1 of the Revenue and
Taxation Code or the anticipated tax income derived pursuant to
Section 50077 of the Government Code, or both. The time period to
repay the indebtedness shall not exceed the applicable time period
provided in subdivision (c) or (d).  
   (c) All indebtedness that is incurred on or after July 1, 1982,
pursuant to this section shall be repaid during a period not to
exceed 20 years from the date on which it is incurred and shall bear
interest at the rate allowed pursuant to Section 53531 of the
Government Code, payable annually or semiannually or in part annually
and in part semiannually. Notwithstanding any other provision of
this section, with respect to the East Bay Regional Park District
only, all indebtedness incurred pursuant to this section for
acquisition of lands and facilities designated in the district's
master plan, including the Chabot Ridgelands, shall be repaid during
a period not to exceed 30 years and at a rate not exceeding the rate
allowed in this section for other districts. All other acquisitions
of land and facilities by the East Bay Regional Park District not
designated in the master plan are subject to the 20-year repayment
period limitation of this section.  
   (d) Notwithstanding subdivision (c), all indebtedness that is
incurred by the East Bay Regional Park District or the Midpeninsula
Regional Open Space District, on or after January 1, 2012, pursuant
to this section, shall be repaid during a period not to exceed 30
years from the date on which it is incurred and shall bear interest
at the rate allowed pursuant to Section 53531 of the Government Code,
payable annually or semiannually or in part annually and in part
semiannually.  
   (b)  The amount of indebtedness to be incurred shall not exceed an
amount equal to the anticipated property tax revenue allocations for
the next five-year period derived pursuant to Chapter 6 (commencing
with Section 95) of Part 0.5 of Division 1 of the Revenue and
Taxation Code or the anticipated tax income for the next 20-year
period derived pursuant to Section 50077 of the Government Code, or
both. All indebtedness which is incurred on or after July 1, 1982,
pursuant to this section shall be repaid during a period not to
exceed 20 years from the date on which it is incurred and shall bear
interest at a rate not exceeding 10 percent per annum, or the rate
allowed pursuant to Section 53531 of the Government Code, if higher,
payable annually or semiannually or in part annually and in part
semiannually. Notwithstanding any other provision of this section,
with respect to the East Bay Regional Park District only, all
indebtedness incurred pursuant to this section for acquisition of
lands and facilities designated in the district's master plan,
including the Chabot Ridgelands, shall be repaid during a period not
to exceed 30 years and at a rate not exceeding the rate allowed in
this section for other districts. All other acquisitions of land and
facilities by the East Bay Regional Park District not designated in
the master plan are subject to the 20-year repayment period
limitation of this section. Each 
    (e)     Each  indebtedness shall be
authorized by a resolution adopted by the affirmative votes of at
least two-thirds of the members of the district board, shall be
evidenced by a promissory note or contract signed by the president of
the board and attested by the secretary or treasurer, and shall be
sold at not less than 95 percent of the principal amount in the
manner determined by the board at a discount  which 
 that  equals the underwriter's spread. The board shall
determine that the discount reflects an underwriter's spread 
which   that  is both reasonable and customary
under the prevailing market conditions. One of the two signatures may
be by facsimile reproduction. At the time of making the general tax
levy after incurring each indebtedness and annually thereafter until
the indebtedness is paid or until there is a sum in the treasury set
apart for that purpose sufficient to meet all payments of principal
and interest on the indebtedness as they become due, a portion of the
taxes levied and collected pursuant to Section 50077 of the
Government Code, if any, shall be levied and collected and set aside
sufficient to pay the interest on the indebtedness and the part of
the principal that will become due before the proceeds of a tax
levied at the next general tax levy will be available. 
    (c) 
    (f)  The indebtedness authorized to be incurred by this
section shall be in addition to, and  the provisions of
 this section shall not apply to, any bonded indebtedness
authorized by vote of the electors.
  SEC. 2.  The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of the high cost of land in the San Francisco Bay area and
the financial situation of the districts affected by this act.