Amended in Assembly March 17, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 422

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 amended, 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 begin delete additionally end delete authorize the district to seek and receive a begin delete short term end delete begin insert short-term end insert 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 begin delete note. end delete begin insert note, in addition to and as an alternative to temporary borrowing, as specified. end insert The bill would authorize the district to pledge anticipated grants and other available begin delete revenues end delete begin insert funds end insert 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 begin delete to end delete begin insert to, and as an alternative to, end insert the
borrowing authority in Section 102582, the district may seek and
obtain a begin delete short term end delete begin insert short-term end insert 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 begin delete available revenues end delete
begin insert funds available to the district, including, but not limited to, fare
revenues collected by the district in connection with the operation
of its transit system and any other revenues, income, or receipts, end insert
as security for repayment of the note begin insert , the interest on the note, and
the related obligations evidenced by the note end insert . 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 begin insert and
other available funds end insert over a multiyear begin delete period, as long as the note
is paid in full by the maturity date. end delete begin insert period. end insert 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 begin insert , the interest on the note, and the related obligations
evidenced by the note end insert .