BILL NUMBER: AB 422	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 20, 2015
	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  , pursuant to a
resolution adopted by the board of directors of the district  .
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. 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.