Amended in Senate February 24, 2014

Amended in Senate February 12, 2014

Amended in Senate July 2, 2013

Amended in Senate June 13, 2013

Amended in Assembly May 24, 2013

Amended in Assembly April 1, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 582


Introduced by Assembly Members Levine and Chesbro

(Principal coauthor: Senator Evans)

February 20, 2013


An act to add Section 5451.7 to the Government Code, relating to local finance, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

AB 582, as amended, Levine. Palm Drive Health Care District: certificates of participation: lien.

The Local Health Care District Law authorizes health care districts in the state to provide for various forms of financing for the purpose of carrying out their duties under the law, including financing secured by public revenues.

This bill would require that all obligations of the Palm Drive Health Care District in connection with specified certificates of participation be secured by a statutory lien on all of the revenues generated from certain dedicated parcel taxes, according to specified criteria.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Palm Drive Health Care District.

This bill would declare that it would take effect immediately as an urgency statute.

Vote: 23. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 5451.7 is added to the Government Code,
2to read:

3

5451.7.  

(a) All obligations of the Palm Drive Health Care
4District in connection with any and all certificates of participation
5executed and delivered, or revenue bonds issued, by or on behalf
6of the district betweenbegin delete August 15, 2005,end deletebegin insert January 1, 2005,end insert and
7December 31, 2014, including certificates of participation executed
8and delivered or revenue bonds issued before 2035 to refund the
9revenue bonds or certificates of participation, shall be secured by
10a statutory lien on all of the revenues generated from parcel taxes
11levied pursuant to Measure W, approved by the voters of the district
12at the general election held on November 2, 2004.

13(b) This lien shall arise automatically without the need for any
14action or authorization by the district or the board of directors of
15 the district. The lien shall be valid and binding from the time the
16certificates of participation are executed and delivered or the
17revenue bonds are issued.

18(c) The parcel tax revenue shall immediately be subject to this
19lien, and the lien shall immediately attach to the parcel tax revenue
20and be effective, binding, and enforceable against the district, its
21successors, purchasers of those revenues, creditors, and all others
22asserting rights therein, irrespective of whether those parties have
23notice of the lien and without the need for any physical delivery,
24recordation, filing, or further act.

25

SEC. 2.  

The Legislature finds and declares that a special law
26is necessary and that a general law cannot be made applicable
27within the meaning of Section 16 of Article IV of the California
28Constitution because of the unique circumstances regarding
29financing obligations of the Palm Drive Health Care District.

30

SEC. 3.  

This act is an urgency statute necessary for the
31immediate preservation of the public peace, health, or safety within
P3    1the meaning of Article IV of the Constitution and shall go into
2immediate effect. The facts constituting the necessity are:

3In order to enable the Palm Drive Health Care District to
4complete its financing, and meet its obligations to employees,
5vendors, and other creditors in a timely manner, it is necessary for
6this act to take effect immediately.



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