BILL NUMBER: AB 422	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member McCarty

                        FEBRUARY 19, 2015

   An act to add Section 102584 to the Public Utilities Code,
relating to transit.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 422, as introduced, McCarty. Sacramento Regional Transit
District: line of credit.
   Existing law provides for the creation of the Sacramento Regional
Transit District, with specified powers and duties relative to the
provision of public transit services. Existing law authorizes the
district to engage in temporary borrowing, as specified.
   This bill would additionally authorize the district to seek and
receive a short term revolving line of credit for operating purposes
in anticipation of receipt of operating grants, with the extension of
credit to the district evidenced by a note. The bill would authorize
the district to pledge anticipated grants and other available
revenues as security for repayment of the note and would prescribe
other terms.
   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 102584 is added to the Public Utilities Code,
to read:
   102584.  In addition to the borrowing authority in Section 102582,
the district may seek and obtain a short term revolving line of
credit for operating purposes in anticipation of receipt of operating
grants, with the extension of credit to the district evidenced by a
note. The district may pledge the anticipated grants and any other
available revenues as security for repayment of the note. The note
shall have a maturity date of not more than 60 months from the date
of issuance. The district may pledge anticipated operating grants
over a multiyear period, as long as the note is paid in full by the
maturity date. The maximum indebtedness under the note shall not
exceed 85 percent of the amount of the anticipated grants and other
funds pledged to repay the note.