BILL NUMBER: AB 612 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 23, 2011
AMENDED IN ASSEMBLY MAY 2, 2011
INTRODUCED BY Assembly Member Gordon
(Coauthor: Assembly Member Hill)
(Coauthors: Senators Simitian and Yee)
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 amended, Gordon. Parks and recreation: districts:
repayment of indebtedness.
Existing
(1) 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.
The bill would also modify the rate at which
any indebtedness incurred by all regional park districts, regional
park and open-space districts, and regional open-space districts 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.
(2) Existing law requires each indebtedness to be authorized by a
resolution of a district board, as provided.
This bill would require indebtedness that is incurred in that
manner by 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.
This bill would require, with regard to this indebtedness incurred
by the Midpeninsula Regional Open Space District, that the
resolution specify the revenue pledged by the district to repay the
indebtedness, among other things.
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 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.
The district shall identify the source of revenue to be used to repay
the indebtedness.
(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
that equals the underwriter's spread. The board shall determine that
the discount reflects an underwriter's spread 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.
(f) For indebtedness incurred pursuant to subdivision (d), the
resolution by the district board required pursuant to subdivision (e)
shall specify the revenue pledged by the district to repay the
indebtedness. The resolution shall recite in substance that the
principal of, and interest on, the indebtedness are payable solely
from the revenue pledged to repay the indebtedness and that the
district is not obligated to pay the principal or interest except
from the pledged revenue, and may provide for the same pledge to all
other indebtedness incurred pursuant to this section, including
indebtedness incurred prior to January 1, 2012, in order to maintain
a parity relationship among all outstanding indebtedness incurred by
the district pursuant to this section.
(f)
(g) 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. 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 district affected by this act.