Amended in Assembly April 7, 2015

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 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, in addition to and as an alternative to temporary borrowing, as specified. The bill would authorize the district to pledge anticipated grants and other available funds 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, and as an alternative 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 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, as security for repayment of the
note, the interest on the note, and the related obligations evidenced
by 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 and other available funds over a
multiyear period. begin delete The end delete begin insert Notwithstanding the 60-month maturity
period for the line of credit, end insert begin insert the end insert maximum indebtedness under the
note begin insert shall not exceed the maximum amount in federal operating
grant revenues that the district anticipates receiving in a single
fiscal year, and end insert shall not exceed 85 percent of the amount of the
anticipated grants and other funds begin insert that the district anticipates
receiving in a single fiscal year that are end insert pledged to repay the note,
the interest on the note, and the related obligations evidenced by
the note.