BILL NUMBER: AB 1919	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Quirk

                        FEBRUARY 11, 2016

   An act to amend Section 180260 of the Public Utilities Code,
relating to transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1919, as introduced, Quirk. Local transportation authorities:
bonds.
   The Local Transportation Authority and Improvement Act provides
for the creation in any county of a local transportation authority
and authorizes the imposition of a retail transactions and use tax by
ordinance, subject to approval of the ordinance by 2/3 of the
voters. Existing law authorizes the ballot proposition submitted to
the voters to include a provision authorizing bonds to be issued that
would be payable from the proceeds of the transactions and use tax.
Existing law requires the bond proceeds to be placed in the treasury
of the local transportation authority and to be used for allowable
transportation purposes, except that accrued interest and premiums
received on the sale of the bonds are required to be placed in a fund
to be used for the payment of bond debt service.
   This bill would instead provide for accrued interest and premiums
received on the sale of the bonds to be placed in the treasury of the
local transportation authority to be used for allowable
transportation purposes.
   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 180260 of the Public Utilities Code is amended
to read:
   180260.  All  bond proceeds, including proceeds from 
accrued interest and premiums received on the sale of the 
bonds   bonds,  shall be placed in the 
fund to be used for the payment of the principal of, and interest on,
the bonds, and the remainder of the proceeds of the bonds shall be
placed in the  treasury of the authority and applied to
secure the bonds or for the purposes for which the debt was incurred.
However, when the purposes have been accomplished, any money
remaining shall be either (a) transferred to the fund to be used for
the payment of principal of, and interest on, the bonds or (b) placed
in a fund to be used for the purchase of the outstanding bonds in
the open market at prices and in the manner, either at public or
private sale or otherwise, as determined by the authority. Bonds so
purchased shall be canceled immediately.