BILL NUMBER: AB 422	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 16, 2015
	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  federal  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  federal  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  federal  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  federal  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   the next
 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.   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.