BILL NUMBER: AB 422	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 7, 2015
	AMENDED IN ASSEMBLY  MARCH 17, 2015

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.  The   Notwithstanding the
60-month maturity period for the line of credit,   the 
maximum indebtedness under the note  shall not exceed the
maximum amount in federal operating grant revenues that the district
anticipates receiving in a single fiscal year, and  shall not
exceed 85 percent of the amount of the anticipated grants and other
funds  that the district anticipates receiving in a single fiscal
year that are  pledged to repay the note, the interest on the
note, and the related obligations evidenced by the note.