Amended in Senate July 16, 2015

Amended in Assembly April 20, 2015

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 begin insert federal end insert 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 begin insert federal end insert 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 begin insert federal end insert 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 begin insert federal end insert 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 begin delete a single end delete begin insert the next end insert fiscal begin delete 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. end delete begin insert year. Immediately upon receipt
thereof, the district shall set aside and apply all amounts received
from the pledged federal operating grant revenues to the repayment
of any outstanding indebtedness incurred pursuant to this section,
and these federal operating grant revenues may not be used for
any other purpose until such time as the indebtedness is fully
repaid. end insert