Amended in Assembly April 4, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1919


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 amended, 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 insteadbegin delete provide for accrued interest andend deletebegin insert require theend insert 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:

P2    1

SECTION 1.  

Section 180260 of the Public Utilities Code is
2amended to read:

3

180260.  

Allbegin delete bond proceeds, including proceeds fromend delete accrued
4interestbegin delete and premiumsend delete received on the sale of thebegin delete bonds,end deletebegin insert bondsend insert
5 shall be placed in thebegin insert fund to be used for the payment of the
6principal of, and interest on, the bonds, and the remainder of the
7proceeds of the bonds shall be placed in theend insert
treasury of the
8authority and applied to secure the bonds or for the purposes for
9which the debt was incurred. However, when the purposes have
10been accomplished, any money remaining shall be either (a)
11transferred to the fund to be used for the payment of principal of,
12and interest on, the bonds or (b) placed in a fund to be used for the
13purchase of the outstanding bonds in the open market at prices and
14in the manner, either at public or private sale or otherwise, as
15determined by the authority. Bonds so purchased shall be canceled
16immediately.



O

    98