California Legislature—2015–16 Regular Session

Assembly Bill No. 2196

Introduced by Assembly Member Low

February 18, 2016

An act to amend Sections 100001.5, 100011, 100013, 100014, 100014.1, 100017, 100018, 100020, 100022, 100030, 100031, 100055, 100055.1, 100055.2, 100055.3, 100060, 100060.2, 100061, 100062.1, 100070, 100071, 100082, 100090, 100100, 100110, 100111, 100112, 100113, 100114, 100115, 100115.5, 100120, 100121, 100124, 10025, 100126, 100130, 100130.5, 100131, 100132, 100133, 100160, 100160.1, 100160.5, 100161, 100162, 100163, 100164, 100165, 100167, 100168, 100169, 100170, 100171, 100252, 100253, 100254, 100302, 100303, 100304, 100305, 100307, 100308, 100350, 100351, 100370, 100371, 100372, 100380, 100381, 100400, 100401, 100403, 100404, 100407, 100409, 100410, 100411, 100450, 100451, 100460, 100461, 100462, 100463, 100470, 100471, 100482, 100483, 100490, 100491, 100492, 100500, 100601, 100601.5, 100602, 100602.11, 100602.14, 100603, 100605, 100606, 100609, 100610, 100612, 100613, 100618, and 100619 of, to amend the headings of Article 1 (commencing with Section 100060), Article 2 (commencing with Section 100070), and Article 5 (commencing with Section 100100) of Chapter 4 of Part 12 of Division 10 of, to amend the headings of Chapter 4 (commencing with Section 100060) and Chapter 5 (commencing with Section 100110) of Part 12 of Division 10 of, to repeal Sections 100032, 100306, and 100309 of, and to repeal Article 2 (commencing with Section 100040) of Chapter 3 of Part 12 of Division 10 of, the Public Utilities Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

AB 2196, as introduced, Low. Santa Clara Valley Transportation Authority.

Existing law creates the Santa Clara Valley Transportation Authority with various powers and duties relative to transportation projects and services and the operation of public transit in the County of Santa Clara. Existing law authorizes the authority, among other things, with the approval of the Department of Transportation, to provide funding for the repair and maintenance of state highways within the boundaries of the authority.

This bill would revise numerous statutes related to the Santa Clara Valley Transportation Authority to change references from “authority” to the Santa Clara Valley Transportation Authority and various other references of “authority” or “district” to the VTA. The bill would make other nonsubstantive changes in these statutes and repeal obsolete provisions.

The bill would authorize the board of directors of the VTA to include mayors of cities within the county, as specified.

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 100001.5 of the Public Utilities Code is
amended to read:

100001.5.  

The Legislature hereby finds and declares:

(a) Since the formation of the Santa Clara begin delete County Transit
District, end delete begin insert Valley Transportation Authority, end insert unprecedented growth
has occurred in the San Francisco Bay area and in Santa Clara
County in particular. It has become apparent that additional
measures are required in order to deal more effectively with the
resultant serious traffic congestion and to foster the development
of trade and the movement of people in and around the Santa Clara
Valley and throughout the entire bay area.

(b) Transit and other modes of transportation are inextricably
intertwined, and improvement and maintenance of the road and
highway structure in conjunction and coordination with transit
improvements are essential to optimize the ability of the begin delete authority end delete
begin insert Santa Clara Valley Transportation Authority end insert to deal more
effectively with serious traffic congestion.

(c) The Santa Clara Valley Transportation Authority, having
been designated as the Congestion Management Agency for Santa
Clara County, and already authorized to construct and improve
state and local highways pursuant to Section 100115.5, is uniquely
positioned to implement programs to achieve the goal of a balanced
approach to solving transportation problems.

(d) This goal is best achieved in Santa Clara County by vesting
in the begin delete authority end delete begin insert Santa Clara Valley Transportation Authority end insert the
ability to plan, design, construct, maintain, and repair road and
highway improvements, as well as bicycle, pedestrian, and other
transportation facilities, under the conditions set forth in this part.

SEC. 2.  

Section 100011 of the Public Utilities Code is amended
to read:

100011.  

begin delete “Authority,” “district,” or end delete “VTA” means the Santa
Clara Valley Transportation Authority.

SEC. 3.  

Section 100013 of the Public Utilities Code is amended
to read:

100013.  

“Transit works” or “transit facilities” means any or
all real and personal property, equipment, begin delete rights end delete begin insert rights, end insert or interests
owned or to be acquired by the begin delete district end delete begin insert VTA end insert for transit service or
purposes.

SEC. 4.  

Section 100014 of the Public Utilities Code is amended
to read:

100014.  

“Board of directors” and “board” means the board of
directors of the begin delete district. end delete begin insert VTA. end insert

SEC. 5.  

Section 100014.1 of the Public Utilities Code is
amended to read:

100014.1.  

“Director” means a member of the board of directors
of the begin delete district. end delete begin insert VTA. end insert

SEC. 6.  

Section 100017 of the Public Utilities Code is amended
to read:

100017.  

“System” means all transit works and transit facilities
owned or held or to be owned or held by the begin delete district end delete begin insert VTA end insert for transit
purposes.

SEC. 7.  

Section 100018 of the Public Utilities Code is amended
to read:

100018.  

“Revenues” means all rates, fares, tolls, rentals or
other income and revenue actually received or receivable by or
for the account of the begin delete district end delete begin insert VTA end insert from the operation of the system,
including, without limiting the generality of the foregoing, interest
allowed on any moneys or securities and any profits derived from
the sale of any securities and any consideration in any way derived
from any properties owned, operated or at any time maintained by
the begin delete district. end delete begin insert VTA. end insert

SEC. 8.  

Section 100020 of the Public Utilities Code is amended
to read:

100020.  

“Establish” includes establish, construct, complete,
acquire, extend, or reroute. It does not, however, include the
maintenance and operation of any existing system acquired by the
begin delete district. end delete begin insert VTA. end insert

SEC. 9.  

Section 100022 of the Public Utilities Code is amended
to read:

100022.  

“Transportation works” or “transportation facilities”
means any or all real and personal property, rights, or interests
owned or to be acquired by the begin delete authority end delete begin insert VTA end insert to facilitate the
passage of vehicles or pedestrians exclusive of transit works and
transit facilities.

SEC. 10.  

Section 100030 of the Public Utilities Code is
amended to read:

100030.  

The begin insert Legislature recognizes the formation of the end insert Santa
Clara begin delete County Transit District may be formed as provided in this
chapter end delete begin insert Valley Transportation Authority end insert and begin delete when so formed end delete begin insert it end insert
may exercise the powers herein granted.

SEC. 11.  

Section 100031 of the Public Utilities Code is
amended to read:

100031.  

The begin delete district end delete begin insert territory of the VTA end insert shall include all
incorporated and unincorporated territory lying within the County
of Santa Clara.

SEC. 12.  

Section 100032 of the Public Utilities Code is
repealed.

begin delete

100032.  

The Board of Supervisors of the County of Santa Clara
may, after notice and public hearing, published pursuant to
Government Code Section 6061, adopt a resolution declaring that
in its opinion public interest or necessity demands the formation
of the Santa Clara County Transit District.

end delete

SEC. 13.  

Article 2 (commencing with Section 100040) of
Chapter 3 of Part 12 of Division 10 of the Public Utilities Code is
repealed.

SEC. 14.  

Section 100055 of the Public Utilities Code is
amended to read:

100055.  

Notwithstanding any other provision of this act, before
the begin delete district end delete begin insert VTA end insert may establish any transit service or system begin delete which end delete
begin insert that end insert may at any time divert, lessen, or compete for the patronage
or revenues of any existing system, the begin delete district end delete begin insert VTA end insert shall give a
written notice to the public utility begin delete which end delete begin insert that end insert is operating the
existing system. The written notice shall describe the transit service
or system which the begin delete district end delete begin insert VTA end insert proposes to establish and shall
state the time begin delete within which the district proposes to establish such
service or system. end delete begin insert that the VTA proposes to establish that service
or system. end insert

SEC. 15.  

Section 100055.1 of the Public Utilities Code is
amended to read:

100055.1.  

The begin delete district end delete begin insert VTA end insert shall not establish the proposed
service or system, or maintain and operate the service or system
until it has completed the purchase of the existing system or any
part thereof.

SEC. 16.  

Section 100055.2 of the Public Utilities Code is
amended to read:

100055.2.  

Subject to Section 100351, the purchase price to be
paid for the existing system, or any portion thereof to be purchased,
shall be the reproduction cost new, including going concern value,
at the date upon which the begin delete district end delete begin insert VTA end insert commences negotiations
for the purchase of the existing system, or the portion of the
existing system, less depreciation, including wear, tear and
obsolescence, if any.

SEC. 17.  

Section 100055.3 of the Public Utilities Code is
amended to read:

100055.3.  

The begin delete district end delete begin insert VTA end insert and public utility operating the
existing system may agree upon the purchase price or they may
agree that the purchase price is to be established by arbitration and
upon the method of naming arbitrators and the method of
conducting such arbitration.

SEC. 18.  

The heading of Chapter 4 (commencing with Section
100060) of Part 12 of Division 10 of the Public Utilities Code is
amended to read:

 

Chapter  4. Government of begin delete District end delete begin insert VTA end insert

 

SEC. 19.  

The heading of Article 1 (commencing with Section
100060) of Chapter 4 of Part 12 of Division 10 of the Public
Utilities Code is amended to read:

 

Article 1.  Board of begin delete Supervisors end delete begin insert Directors end insert

 

SEC. 20.  

Section 100060 of the Public Utilities Code is
amended to read:

100060.  

(a) The government of the begin delete district end delete begin insert VTA end insert shall be vested
in a board of directors which shall consist of 12 members, as
follows:

(1) Two representatives of the county and one alternate who
shall be members of the board of supervisors of the county,
appointed by the board of supervisors.

(2) Five representatives of the City of San Jose and one alternate
who shall be city council members begin insert or the mayor end insert of the City of San
Jose, appointed by the city council.

(3) Five city council members begin insert or mayors end insert selected from among
the city councils begin insert and mayors end insert of all of the cities in the county, other
than the City of San Jose, as provided by agreements among those
cities. The agreements may provide for the appointment of
alternates, who shall be city council begin delete members, end delete begin insert members or mayors, end insert
for those city representatives.

(b) An alternate may vote in the place of a director represented
by that alternate if the director is absent.

(c) To the extent possible, the appointing powers shall appoint
individuals who have expertise, experience, or knowledge relative
to transportation issues.

SEC. 21.  

Section 100060.2 of the Public Utilities Code is
amended to read:

100060.2.  

Except as otherwise provided, the term of office for
each director shall be two years and until the appointment and
qualification of his or her successor. A successor shall be appointed
not later than 30 days immediately upon the expiration of a
director’s term. begin delete The first directors shall include those who are
members of the board of directors of the Santa Clara County
Congestion Management Agency as of January 1, 1995, and their
terms shall be equal to the time that otherwise would remain in
their congestion management agency offices. end delete A vacancy exists
whenever a director ceases to hold office on the city council or
board of supervisors from which he or she was appointed. Any
vacancy shall, within 60 days of its occurrence, be filled for the
balance of the term by the body that made the original appointment.

SEC. 22.  

Section 100061 of the Public Utilities Code is
amended to read:

100061.  

The board of directors shall annually elect a
chairperson who shall preside at all meetings. The board of
directors shall also annually elect a vice chairperson, who, in the
event of the chairperson’s absence or inability to act, shall act as
chairperson, and while so acting, shall have all of the begin delete authority end delete
begin insert power and obligations end insert of the chairperson.

SEC. 23.  

Section 100062.1 of the Public Utilities Code is
amended to read:

100062.1.  

(a) No ordinance, except an urgency ordinance,
shall be passed by the board on the day of its introduction, nor
within three days thereafter, nor at any time other than at a regular
or adjourned regular meeting. The enacting clause of all ordinances
shall be as follows:

“The Board of Directors of the Santa Clara begin delete County Transit
District end delete begin insert Valley Transportation Authority end insert ordains as follows:”

(b) All ordinances shall be signed by the chairperson of the
board or the vice chairperson and attested by the secretary. Before
the expiration of 15 days after the passage of an ordinance, it shall
be published once in a newspaper of general circulation in the
begin delete district end delete begin insert territory of the VTA end insert as provided by law for ordinances
adopted by counties. An order entered in the minutes of the board
that the ordinance has been duly published is prima facie proof of
publication.

(c) Urgency ordinances shall be adopted in the same manner as
provided by law for the adoption of urgency ordinances by
counties.

SEC. 24.  

The heading of Article 2 (commencing with Section
100070) of Chapter 4 of Part 12 of Division 10 of the Public
Utilities Code is amended to read:

 

Article 2.  Powers and Duties of Board of begin delete Supervisors end delete begin insert Directors end insert

 

SEC. 25.  

Section 100070 of the Public Utilities Code is
amended to read:

100070.  

The board of directors is the legislative body of the
begin delete district end delete begin insert VTA end insert and shall determine all questions of begin delete district end delete begin insert VTA end insert
policy.

SEC. 26.  

Section 100071 of the Public Utilities Code is
amended to read:

100071.  

It shall be the duty of the board of directors and it
shall have the power to:

(a) Determine the transit facilities to be acquired and constructed
by the begin delete district, end delete begin insert VTA, end insert the manner of operation, and the means to
finance them.

(b) Adopt an annual budget for the begin delete district end delete begin insert VTA end insert that provides
for the compensation of its officers and employees.

(c) Fix rates, rentals, charges and classifications of transit service
operated by the begin delete district. end delete begin insert VTA. end insert

(d) Adopt an administrative code that prescribes the powers and
duties of begin delete district end delete begin insert VTA end insert officers, the method of appointment of begin delete district end delete
begin insert VTA end insert employees, and the methods, procedures, and systems for the
operation and management of the begin delete district. end delete begin insert VTA. end insert

(e) Adopt rules and regulations governing the use of transit
facilities owned or operated by the begin delete district. end delete begin insert VTA. end insert

(f) Cause a postaudit of the financial transactions and records
of the begin delete district end delete begin insert VTA end insert to be made at least annually by a certified public
accountant or public accountant.

(g) Adopt reasonable rules and regulations providing for the
administration of employer-employee relations.

(h) Do any and all things necessary to carry out the purposes of
this part.

SEC. 27.  

Section 100082 of the Public Utilities Code is
amended to read:

100082.  

The advisory committees shall provide advice to the
board of directors on matters of begin delete district end delete begin insert VTA end insert policy and shall have
additional duties as provided by the board of directors.

SEC. 28.  

Section 100090 of the Public Utilities Code is
amended to read:

100090.  

The officers of the begin delete district end delete begin insert VTA end insert shall consist of the
members of the board of directors, the chairperson and vice
chairperson of the board, a secretary, a general manager, a general
counsel, and any other officers that the board deems necessary and
provides for by ordinance or resolution. The general manager and
general counsel shall be appointed and may be removed by the
affirmative votes of a majority of the board.

SEC. 29.  

The heading of Article 5 (commencing with Section
100100) of Chapter 4 of Part 12 of Division 10 of the Public
Utilities Code is amended to read:

 

Article 5.  begin delete Executive Officer end delete begin insert General Manager end insert

 

SEC. 30.  

Section 100100 of the Public Utilities Code is
amended to read:

100100.  

The power and duties of the general manager are:

(a) To head the administrative branch of the begin delete district end delete begin insert VTA end insert and
to be responsible to the board of directors for the proper
administration of all affairs of the begin delete district. end delete begin insert VTA. end insert

(b) To appoint, supervise, suspend or remove, begin delete district end delete begin insert VTA end insert
officers other than the members of the board and officers appointed
by the board.

(c) To supervise and direct the preparation of the annual budget
for the board and be responsible for its administration after its
adoption.

(d) To formulate and present to the board plans for transit begin insert and
other transportation end insert facilities within the begin delete district end delete begin insert territory of the
VTA end insert and the means to finance them.

(e) To supervise the planning, acquisition, construction,
begin delete maintenance end delete begin insert maintenance, end insert and operation of the transit facilities
of the begin delete district. end delete begin insert VTA and other transportation facilities within the
territory of the VTA, as needed. end insert

(f) To attend all meetings of the board.

(g) To prepare and submit to the board as soon as practicable
after the end of each fiscal year a complete report of the finances
and administrative activities of the begin delete district end delete begin insert VTA end insert for the preceding
year.

(h) To perform begin delete such end delete other and additional duties as the board
may require.

SEC. 31.  

The heading of Chapter 5 (commencing with Section
100110) of Part 12 of Division 10 of the Public Utilities Code is
amended to read:

 

Chapter  5. Powers and Functions of begin delete District end delete begin insert VTA end insert

 

SEC. 32.  

Section 100110 of the Public Utilities Code is
amended to read:

100110.  

The begin delete district end delete begin insert VTA end insert has perpetual succession and may
adopt a seal and alter it at its pleasure.

SEC. 33.  

Section 100111 of the Public Utilities Code is
amended to read:

100111.  

The begin delete district end delete begin insert VTA end insert may sue and be sued, except as
otherwise provided by law, in all actions and proceedings, in all
courts and tribunals of competent jurisdiction.

SEC. 34.  

Section 100112 of the Public Utilities Code is
amended to read:

100112.  

All claims for money or damages against the begin delete district end delete
begin insert VTA end insert are governed by Division 3.6 (commencing with Section 810)
of Title 1 of the Government Code except as provided therein, or
by other statutes or regulations expressly applicable thereto.

SEC. 35.  

Section 100113 of the Public Utilities Code is
amended to read:

100113.  

begin insert (a) end insert begin insert   end insert The begin delete district end delete begin insert VTA end insert shall not levy any tax unless begin delete a
majority of end delete begin insert approved by end insert the electors voting on the measure begin delete vote
to authorize the levy of the tax end delete begin insert in accordance with Article XIII end insert begin insert   end insert begin insert C
of the California Constitution end insert at a special election called for that
purpose by the board of begin delete supervisors. end delete begin insert directors. end insert

begin delete

Whenever

end delete

begin insert (b) end insert begin insert   end insert begin insert Whenever end insert a bond election is held to authorize incurring
bonded indebtedness pursuant to Section 100400, the ordinance
calling the election shall include a statement of the tax or taxes to
be levied or continued to be levied and used, to the extent begin delete such end delete
begin insert those end insert taxes are required to pay principal of and interest on the
bonds as the same become due, to provide any sinking fund
payments required therefor, or to create or maintain any reserve
fund required therefor. A vote in favor of the issuance of the bonds
shall authorize the board to levy and collect such taxes. The
ordinance levying begin delete such end delete begin insert the end insert taxes shall not be repealed until all
bonds payable from the revenues derived from begin delete such end delete begin insert the end insert taxes have
been fully paid or provision has been made for their payment in
full.

SEC. 36.  

Section 100114 of the Public Utilities Code is
amended to read:

100114.  

Except as otherwise provided in this part, begin delete district end delete begin insert VTA end insert
elections shall be called, held, and conducted as provided by the
Uniform District Election Law.

SEC. 37.  

Section 100115 of the Public Utilities Code is
amended to read:

100115.  

The begin delete district end delete begin insert VTA end insert may exercise any and all powers
granted by any other law that, by its terms, is applicable to transit
districts generally, to public agencies generally, or to any
classification of districts or public agencies that includes begin delete a district end delete
begin insert an entity end insert of the type provided for in this part, but the begin delete district end delete begin insert VTA end insert
shall not exercise any power contrary to an express provision of
this part.

SEC. 38.  

Section 100115.5 of the Public Utilities Code is
amended to read:

100115.5.  

(a) The begin delete authority end delete begin insert VTA end insert may administer and
implement any adopted countywide transportation expenditure
plan funded in an amount greater than 50 percent from revenues
derived from a retail transaction and use tax, if so designated in
the plan or if the begin delete authority end delete begin insert VTA end insert and the entity that imposes the tax
have entered into an agreement that so provides. The begin delete authority end delete
begin insert VTA end insert may exercise those powers necessary to carry out this purpose.

(b) The begin delete authority end delete begin insert VTA end insert may do any and all things necessary to
ensure the completion of any projects established in a plan as set
forth in subdivision (a). These projects may include, but are not
limited to, all of the following:

(1) The construction and improvement of state highways.

(2) The construction, maintenance, and improvement of local
roads, streets, and county highways.

(3) The construction, improvement, and operation of public
transit systems, including paratransit services.

(4) The construction and improvement of bicycle and begin insert other end insert
transportation facilities.

(c) The begin delete authority end delete begin insert VTA end insert shall consult with and coordinate any
actions for administering and implementing a plan as set forth in
subdivision (a) with the cities in the county, the board of
supervisors, and the Department of Transportation.

(d) Nothing in this section shall vary the terms of the cooperative
agreement dated July 1, 1999, between the begin delete authority end delete begin insert VTA end insert and the
County of Santa Clara for the construction of transportation
projects utilizing local transaction and use tax revenues derived
from Santa Clara County general tax Measure B approved by the
voters in November 1996. If any of the provisions of this section
conflict with the provisions of that cooperative agreement, the
provisions of the cooperative agreement shall take precedence.

SEC. 39.  

Section 100120 of the Public Utilities Code is
amended to read:

100120.  

The begin delete district end delete begin insert VTA end insert may make contracts and enter into
stipulations of any nature whatsoever, either in connection with
eminent domain proceedings or otherwise, including, without
limiting the generality of the foregoing, contracts and stipulations
to indemnify and save harmless, to employ labor, and to do all acts
necessary and convenient for the full exercise of the powers granted
in this part.

SEC. 40.  

Section 100121 of the Public Utilities Code is
amended to read:

100121.  

The begin delete district end delete begin insert VTA end insert may contract with any department
or agency of the United States of America, with any public agency
or with any person upon begin delete such end delete terms and conditions as the board
finds is for the best interest of the begin delete district. end delete begin insert VTA. end insert

SEC. 41.  

Section 100124 of the Public Utilities Code is
amended to read:

100124.  

The begin delete district end delete begin insert VTA end insert may insure against any accident or
destruction of the system or any part thereof. The begin delete district end delete begin insert VTA end insert may
insure against loss of revenues from any cause whatsoever. It may
provide, in the proceedings authorizing the issuance of any bonds,
for the carrying of insurance in begin delete such end delete begin insert an end insert amount and of begin delete such end delete begin insert a end insert
character as may be specified and for the payment of premiums
thereon. The begin delete district end delete begin insert VTA end insert may also provide insurance as provided
in Part 6 (commencing with Section 989) of Division 3.6 of Title
1 of the Government Code.

SEC. 42.  

Section 100125 of the Public Utilities Code is
amended to read:

100125.  

The begin delete district end delete begin insert VTA end insert may contract for the services of
independent contractors.

SEC. 43.  

Section 100126 of the Public Utilities Code is
amended to read:

100126.  

The begin delete district, end delete begin insert Santa Clara County Transit District, end insert
which was established with the approval of the voters in 1972,
shall continue as an entity under the control of its governing board
as reorganized pursuant to the amendments to this part by statutes
that were enacted in 1994. Nothing in the act that added this section
during the second year of the 1993-94 Regular Session shall be
construed to alter, impair, or terminate existing contracts between
the district and other parties, including, but not limited to, funding
agreements, grants, labor agreements, agreements entered into
pursuant to Section 13(c) of the Federal Transit Act and its
antecedents, bonds, notes, equipment trust certificates, or other
obligations of the district. All rights and powers of the district shall
continue in full force and effect and no affirmation, adoption, or
assumption by the board of directors is required for that
continuation. The begin delete district end delete begin insert VTA end insert shall become the successor to certain
county contracts as provided by agreement between the county
and the begin delete district. end delete begin insert VTA. end insert

SEC. 44.  

Section 100130 of the Public Utilities Code is
amended to read:

100130.  

The begin delete district end delete begin insert VTA end insert may take by grant, purchase, devise,
or lease, or condemn in proceedings under eminent domain, or
otherwise acquire, and hold and enjoy, real and personal property
of every kind within or without the begin delete district end delete begin insert territory of the VTA end insert
necessary to the full or convenient exercise of its powers. The
board may lease, mortgage, sell, or otherwise dispose of any real
or personal property within or without the begin delete district end delete begin insert territory of the
VTA end insert necessary to the full or convenient exercise of its powers.

SEC. 45.  

Section 100130.5 of the Public Utilities Code is
amended to read:

100130.5.  

(a) The begin delete district end delete begin insert VTA end insert may take by gift, or take or
convey by grant, purchase, devise, or lease, and hold and enjoy,
real and personal property of every kind within or without the
begin delete district end delete begin insert territory of the VTA end insert necessary for, incidental to, or
convenient for, transit-oriented joint development projects that
meet the definition and requirement set forth in subdivision (b).

(b) (1) For purposes of this section, a transit-oriented joint
development project is a commercial, residential, or mixed-use
development that is undertaken in connection with existing,
planned, or proposed transit facilities and is located 1⁄4 mile or less
from the external boundaries of that facility.

(2) Any transit-oriented joint development project created under
this section shall comply with the land use and zoning regulations
of the city, county, or city and county in which the project is
located.

(c) Notwithstanding Sections 53090 and 53091 of the
Government Code or any other provision of law, the authority
granted under this section is subject to the land use and zoning
regulations of the city, county, or city and county jurisdiction in
which the transit-oriented joint development is located, in
accordance with the Planning and Zoning Law (Title 7
(commencing with Section 65000) of the Government Code),
relating to zoning.

SEC. 46.  

Section 100131 of the Public Utilities Code is
amended to read:

100131.  

begin insert (a) end insert begin insert   end insert The begin delete district end delete begin insert VTA end insert may exercise the right of eminent
domain to take any property necessary or convenient to the exercise
of the powers granted in this part. The begin delete district, end delete begin insert VTA, end insert in exercising
begin delete such end delete begin insert this end insert power, shall in addition to the damages for the taking,
injury, or destruction of property, also pay the cost, exclusive of
betterment and with credit for salvage value, of removal,
reconstruction, or relocation of any structure, railways, mains,
pipes, conduits, wires, cables, or poles of any public utility begin delete which
is end delete begin insert that are end insert required to be moved to a new location.

begin delete

No

end delete

begin insert (b) end insert begin insert   end insert begin insert No end insert taking or acquisition by the begin delete district which end delete begin insert VTA that end insert would
involve the abandonment, removal, relocation, or use of the
property of a railroad corporation, as defined in Section 230, shall
be permitted, unless the Public Utilities Commission, after a
hearing, shall find and determine that the public interest and
necessity require the abandonment, removal, relocation, or use of
begin delete such end delete begin insert that end insert property and that begin delete such end delete begin insert the end insert taking or acquisition will not
unreasonably impair the ability of the railroad corporation involved
to provide safe, adequate, economical, and efficient service.

SEC. 47.  

Section 100132 of the Public Utilities Code is
amended to read:

100132.  

The Public Utilities Commission of the state shall
have and exercise power and jurisdiction to fix just compensation
to be paid for the taking of any property of a public utility in
eminent domain proceedings brought by the begin delete district. end delete begin insert VTA. end insert The
begin delete district end delete begin insert VTA end insert may commence and maintain begin delete such end delete begin insert the end insert eminent domain
proceedings in the Public Utilities Commission or the superior
court at its option.

SEC. 48.  

Section 100133 of the Public Utilities Code is
amended to read:

100133.  

The begin delete district end delete begin insert VTA end insert is entitled to the benefit of any
reservation or grant, in all cases, where any right has been reserved
or granted to any public agency to construct or maintain roads,
begin delete highway end delete begin insert highways, end insert or other crossings over any public or private
lands.

SEC. 49.  

Section 100160 of the Public Utilities Code is
amended to read:

100160.  

The begin delete district end delete begin insert VTA end insert may provide transit service for the
transportation of passengers and their incidental baggage by any
means.

SEC. 50.  

Section 100160.1 of the Public Utilities Code is
amended to read:

100160.1.  

The begin delete authority end delete begin insert VTA end insert may provide facilities, including
streets and highways, for the movement of vehicles, bicycles, and
pedestrians. All installations in state highways shall be developed
and implemented with the concurrence and under the oversight of
the Department of Transportation. The installation shall conform
to requirements and regulations established by the Department of
Transportation.

SEC. 51.  

Section 100160.5 of the Public Utilities Code is
amended to read:

100160.5.  

The begin delete district end delete begin insert VTA end insert may operate charter bus service
subject to the following limitations:

(a) No bus equipment begin delete which end delete begin insert that end insert is designed solely for charter
service shall be purchased. A bus equipped with a toilet or
underfloor baggage compartment shall be deemed charter
equipment.

(b) The board shall hold a public hearing prior to adopting a
charter rate schedule or any amendment thereof. Notice of the
hearing shall be mailed to each charter-party carrier operating
within the district at least 30 days prior to the hearing. The notice
shall include the proposed charter rate schedule. At the close of
the public hearing the board may adopt charter rate schedules
begin delete which end delete begin insert that end insert shall not be less than the average for the three largest
private charter-party carriers operating similar service in the
begin delete district. end delete begin insert territory of the VTA. end insert

(c) Charter service shall originate and terminate within the area
served by the begin delete district end delete begin insert VTA end insert unless a private charter-party carrier
requests the begin delete district end delete begin insert VTA end insert to provide service beyond the area served
by the begin delete district. end delete begin insert VTA. end insert

SEC. 52.  

Section 100161 of the Public Utilities Code is
amended to read:

100161.  

(a) The begin delete authority end delete begin insert VTA end insert may acquire, construct, own,
operate, control, or use rights-of-way, rail lines, buslines, stations,
platforms, switches, yards, terminals, and any and all facilities
necessary or convenient for transit service within or partly without
the begin delete authority, end delete begin insert territory of the VTA, end insert underground, upon, or above
the ground and under, upon, or over public streets or other public
ways or waterways, together with all physical structures, including
parking lots and day care centers and related child care facilities,
that are necessary or convenient for the access of persons or
vehicles thereto. The begin delete authority end delete begin insert VTA end insert may acquire any interest in or
rights to use or the joint use of any or all of those facilities.

(b) The begin delete authority end delete begin insert VTA end insert may acquire, construct, and provide for
repair and maintenance of any and all facilities necessary or
convenient for vehicular and pedestrian transportation, within or
partly without the begin delete boundaries of the authority, end delete begin insert territory of the VTA, end insert
underground, upon, or above the ground, together with all physical
structures, including parking lots and soundwalls, that are necessary
or convenient therefor. In this connection, the begin delete authority end delete begin insert VTA end insert may
exercise any power with respect to highways granted to counties
under Article 1 (commencing with Section 760) of Chapter 4 of
Division 1 of the Streets and Highways Code in connection with
any project included in the countywide transportation plan and an
adopted regional transportation plan, but shall not usurp or impinge
upon the powers and responsibilities granted to the county with
regard to county highways. Highway and other transportation
expenditures shall be consistent with adopted regional
transportation plans and programs.

(c)  begin delete Authority end delete begin insert VTA end insert installations in freeways shall be subject to
the approval of the Department of Transportation. Installations in
other state highways shall be subject to Article 2 (commencing
with Section 670) of Chapter 3 of Division 1 of the Streets and
Highways Code. Installations in county highways and city streets
shall be subject to similar encroachment permits.

(d) The begin delete authority end delete begin insert VTA end insert shall not use any state transportation
funds, including, but not limited to, begin delete money end delete begin insert moneys end insert in the State
Highway Account, or the Transportation Planning and
Development Account, in the State Transportation Fund, and
passenger rail and clean air bond act money to acquire, construct,
or operate day care centers and related child care facilities.

SEC. 53.  

Section 100162 of the Public Utilities Code is
amended to read:

100162.  

The begin delete district end delete begin insert VTA end insert may lease or contract for the use of
its transit facilities, or any portion thereof, to any operator, and
may provide for subleases by begin delete such end delete begin insert an end insert operator upon begin delete such end delete terms
and conditions as it deems in the public interest. The word
“operator” as used in this section means any public agency or any
person.

SEC. 54.  

Section 100163 of the Public Utilities Code is
amended to read:

100163.  

The board may contract with any public agency or
person to provide transit or transportation facilities and services
for the begin delete district. end delete begin insert VTA. end insert

SEC. 55.  

Section 100164 of the Public Utilities Code is
amended to read:

100164.  

(a) The begin delete authority end delete begin insert VTA end insert may construct and operate or
acquire and operate transit works and facilities and may construct,
acquire, and provide for repair and maintenance of transportation
facilities, in, under, upon, over, across, or along any state or public
highway or any stream, begin delete bay end delete begin insert bay, end insert or watercourse, or over any of
the lands that are the property of the state, to the same extent that
the rights and privileges appertaining thereto are granted to
municipalities within the state.

(b) (1) Notwithstanding subdivision (a), and subject to the
approval of the Department of Transportation, the begin delete authority end delete begin insert VTA end insert
may provide funding for the repair and maintenance of state
highways within the begin delete boundaries of the authority. end delete begin insert territory of the
VTA. end insert

(2) The begin delete authority end delete begin insert VTA end insert shall not directly, or indirectly, except
by providing funding pursuant to paragraph (1), repair or maintain
any state highway.

SEC. 56.  

Section 100165 of the Public Utilities Code is
amended to read:

100165.  

The begin delete district end delete begin insert VTA end insert may enter into agreements for the
joint use of any property and rights by the begin delete district end delete begin insert VTA end insert and any
public agency or public utility operating transit facilities; may
enter into agreements with any public agency or public utility
operating any transit facilities, and wholly or partially within or
without the begin delete district, end delete begin insert territory of the VTA, end insert for the joint use of any
property of the begin delete district end delete begin insert VTA end insert or of begin delete such end delete begin insert the end insert public agency or public
utility, or the establishment of through routes, joint fares, transfer
of begin delete passengers end delete begin insert passengers, end insert or pooling arrangements.

SEC. 57.  

Section 100167 of the Public Utilities Code is
amended to read:

100167.  

The begin delete district end delete begin insert VTA end insert shall be subject to the provisions of
Division 14.8 (commencing with Section 34500) of the Vehicle
Code with respect to operation of buses and to the rules and
regulations enforceable by the State of California Highway Patrol
pursuant to that chapter regulating the safe operation of buses.

SEC. 58.  

Section 100168 of the Public Utilities Code is
amended to read:

100168.  

The begin delete district end delete begin insert VTA end insert shall be subject to the regulations of
the Public Utilities Commission relating to safety appliances and
procedures, and the commission shall inspect all work done
pursuant to this part and may make begin delete such end delete further additions or
changes necessary for the purpose of safety to employees and the
general public. The commission shall enforce the provisions of
this section.

SEC. 59.  

Section 100169 of the Public Utilities Code is
amended to read:

100169.  

The begin delete district end delete begin insert VTA end insert and any one or more school districts
located within its begin delete boundaries end delete begin insert territory end insert may enter into agreements
pursuant to which school transportation equipment may be used
for transit purposes within the begin delete district’s boundaries end delete begin insert VTA’s territory end insert
during any time that begin delete such end delete begin insert the end insert equipment is not actually required
for school purposes.

SEC. 60.  

Section 100170 of the Public Utilities Code is
amended to read:

100170.  

The begin delete authority end delete begin insert VTA end insert may accept, without limitation by
any other provisions of this part requiring approval of indebtedness,
contributions, grants, or loans from any public agency or the United
States or any department, instrumentality, or agency thereof, for
the purpose of financing the acquisition, construction, maintenance,
or operation of transit facilities, or the acquisition and construction
of transportation facilities. The begin delete authority end delete begin insert VTA end insert may enter into
contracts and cooperate with, and accept cooperation from, any
public agency or the United States, or agency thereof, in the
acquisition, construction, maintenance, or operation, and in
financing the acquisition, construction, maintenance or operation
of any transit facilities or in the acquisition and construction of
any transportation facilities in accordance with any legislation that
Congress or the Legislature of the State of California may have
heretofore adopted or may hereafter adopt, under which aid,
assistance, and cooperation may be furnished by the United States
or any public agency in the acquisition, construction, begin delete maintenance end delete
begin insert maintenance, end insert and operation of any transit or transportation
facilities. The begin delete authority end delete begin insert VTA end insert may do any and all things necessary
in order to avail itself of aid, assistance, and cooperation under
any federal or state legislation now or hereafter enacted. Any
evidence of indebtedness issued under this section shall constitute
a negotiable instrument.

SEC. 61.  

Section 100171 of the Public Utilities Code is
amended to read:

100171.  

The begin delete district end delete begin insert VTA end insert may obtain temporary transfers of
funds in accordance with the last paragraph of Section 6 of Article
XVI of the California Constitution.

SEC. 62.  

Section 100252 of the Public Utilities Code is
amended to read:

100252.  

The begin delete district end delete begin insert VTA end insert may contract with the State Board
of Equalization for its service in the preparations necessary to
administer a transaction and use tax ordinance. The costs to be
covered by the contract are to be for services of the types described
in Section 7272 of the Revenue and Taxation Code for preparatory
work up to the date of the adoption of the ordinance. Any disputes
as to the amount of the costs shall be resolved in the same manner
as provided in that section.

SEC. 63.  

Section 100253 of the Public Utilities Code is
amended to read:

100253.  

Prior to the operative date of the transaction and use
tax ordinance, the begin delete district end delete begin insert VTA end insert shall contract with the State Board
of Equalization to perform all functions incident to the
administration and operation of the ordinance.

SEC. 64.  

Section 100254 of the Public Utilities Code is
amended to read:

100254.  

If the begin delete district end delete begin insert VTA end insert shall not have contracted with the
State Board of Equalization prior to the operative date of its
transaction and use tax ordinance, it shall nevertheless so contract,
and, in begin delete such end delete begin insert that end insert case, the operative date shall be the first day of
the first calendar quarter following the execution of the contract.

SEC. 65.  

Section 100302 of the Public Utilities Code is
amended to read:

100302.  

Whenever a majority of the employees employed by
the begin delete district end delete begin insert VTA end insert in a unit appropriate for collective bargaining
indicate a desire to be represented by a labor organization and
upon determining, as provided in Section 100301, that said labor
organization represents at least a majority of the employees in the
appropriate unit, the board and the accredited representative of
employees shall bargain in good faith and make all reasonable
efforts to reach agreement on the terms of a written contract
governing wages, begin delete hours end delete begin insert hours, end insert and working conditions.

SEC. 66.  

Section 100303 of the Public Utilities Code is
amended to read:

100303.  

(a) A contract or agreement shall not be made with
any labor organization, association, group, or individual that denies
membership on any basis listed in subdivision (a) of Section 12940
of the Government Code, as those bases are defined in Sections
12926 and 12926.1 of the Government Code. However, the
organization may preclude from membership any individual who
advocates the overthrow of the government by force or violence.

(b) The begin delete district end delete begin insert VTA end insert shall not discriminate with regard to
employment against any person on any basis listed in subdivision
(a) of Section 12940 of the Government Code, as those bases are
defined in Sections 12926 and 12926.1 of the Government Code,
except as otherwise provided in Section 12940 of the Government
Code.

SEC. 67.  

Section 100304 of the Public Utilities Code is
amended to read:

100304.  

If, after a reasonable period of time, representatives
of the begin delete district end delete begin insert VTA end insert and the accredited representatives of the
employees fail to reach agreement on the terms of a written contract
governing wages, hours, pensions and working conditions or the
interpretation or application of the terms of an existing contract,
either party may request mediation services of the State
Conciliation Service.

SEC. 68.  

Section 100305 of the Public Utilities Code is
amended to read:

100305.  

If, after a reasonable period of time, representatives
of the begin delete district end delete begin insert VTA end insert and the accredited representatives of the
employees fail to reach agreement either on the terms of a written
contract governing wages, hours, begin delete pensions end delete begin insert pensions, end insert and working
conditions or the interpretation or application of the terms of an
existing contract, upon the agreement of both the begin delete district end delete begin insert VTA end insert and
the representatives of the employees, the dispute may be submitted
to an arbitration board and the decision of the majority of begin delete such end delete begin insert the end insert
arbitration board shall be final and binding. The arbitration board
shall be composed of two representatives of the district and two
representatives of the labor organization, and they shall endeavor
to agree upon the selection of a fifth member. If they are unable
to begin delete agree end delete begin insert agree, end insert the names of five persons experienced in labor
arbitration shall be obtained from the State Conciliation Service.
The labor organization and the begin delete district end delete begin insert VTA end insert shall, alternately, strike
a name from the list so supplied, and the name remaining after the
labor organization and the begin delete district end delete begin insert VTA end insert have stricken four names,
shall be designated as the fifth arbitrator and chairman of the board
of arbitration. The labor organization and the begin delete district end delete begin insert VTA end insert shall
determine by lot who shall first strike a name from the list. The
decision of a majority of the arbitration board shall be final and
binding upon the parties thereto. Each party shall be responsible
for the expense of the presentation of its case. All other expenses
of arbitration shall be borne equally by the parties and said
expenses may include the making of a verbatim record of the
proceedings and transcript of that record.

SEC. 69.  

Section 100306 of the Public Utilities Code is
repealed.

begin delete

100306.  

In the event the district and the representatives of the
employees do not agree to submit any dispute to arbitration as
provided in Section 100305 the State Conciliation Service may be
notified by either party that a dispute exists and there is no
agreement to arbitrate.

Following such notification the State Conciliation Service shall
determine whether or not the dispute may be resolved by the parties
and, if not, the issues concerning which the dispute exists. Upon
such determination the service shall certify its findings to the
Governor of the State of California. The Governor shall, within
10 days of receipt of certification, appoint a factfinding commission
consisting of three persons.

The commission shall immediately convene and inquire into and
investigate the issues in the dispute. The commission shall have
authority to issue subpoenas for the attendance of witnesses and
subpoenas duces tecum for the production of books, documents
and other records. Subpoenas shall be served and enforced in
accordance with Chapter 2 (commencing with Section 1985) of
Title 3, Part 4, of the Code of Civil Procedure. The commission
shall report to the Governor within 30 days of the date of its
creation.

After the creation of such a commission, and for 30 days after
such commission has made its report to the Governor, no change,
except by mutual agreement, shall be made by the parties to the
controversy in the conditions out of which the dispute arose, and
service to the public shall be provided.

end delete

SEC. 70.  

Section 100307 of the Public Utilities Code is
amended to read:

100307.  

(a) Chapter 10 (commencing with Section 3500) of
Division 4 of Title 1 of the Government Code is not applicable to
the begin delete district. end delete begin insert VTA. end insert

(b) The amendments to this section made at the 1995-96 Regular
Session are not intended to modify, and shall not have the effect
of modifying, an existing bargaining unit determination made by
the Department of Industrial Relations pursuant to Section 100301.

SEC. 71.  

Section 100308 of the Public Utilities Code is
amended to read:

100308.  

County employees and employees of the Santa Clara
County Congestion Management Agency who, on a date or dates
determined by the board of directors, terminate their employment
and immediately thereafter become employees of the begin delete district, end delete begin insert VTA, end insert
shall transfer to the begin delete district, end delete begin insert VTA, end insert and the begin delete district end delete begin insert VTA end insert shall assume
liability for, all of their accrued and unused vacation, sick leave,
personal leave, compensating time off and STO balances and days
of accrued service in accordance with the records of their former
employer in lieu of any payment by the former employer for those
balances. Those employees who were covered by a county or
congestion management agency pension plan shall be entitled to
the same or equivalent rights, options, privileges, benefits,
obligations, accrued service, and status under the pension plan of
the begin delete district. end delete begin insert VTA. end insert

SEC. 72.  

Section 100309 of the Public Utilities Code is
repealed.

begin delete

100309.  

To the extent permitted by law, and until altered or
revoked as provided by law, the district shall grant recognition to
those employee organizations which served as the recognized
representatives of the former county employees described in
Section 100308 immediately prior to their employment by the
district.

The district shall assume and observe all applicable provisions,
including wages, of existing written memoranda of understanding
in effect between the county and the above recognized labor
organizations for those former county employees described in
Section 100308 who are employed by the district in positions which
would have been covered by those memoranda if the employees
had remained employed by the county. This obligation extends
only for the remainder of the term of the respective existing written
memoranda of understanding and to the extent not superseded by
a successor agreement between the district and a recognized labor
organization.

end delete

SEC. 73.  

Section 100350 of the Public Utilities Code is
amended to read:

100350.  

begin insert (a) end insert begin insert   end insert Whenever the begin delete district end delete begin insert VTA end insert acquires existing
facilities from a publicly or privately owned utility, either in
proceedings by eminent domain or otherwise, to the extent
necessary for operation of facilities, all of the employees of begin delete such end delete
begin insert the end insert public utility whose duties pertain to the facilities acquired
who have been employed by said utility for at least begin delete seventy-five
(75) end delete begin insert 75 end insert days shall be appointed to comparable positions in the
begin delete district end delete begin insert VTA end insert without examination and these employees shall be
given sick leave, begin delete seniority end delete begin insert seniority, end insert and vacation credits in
accordance with the records of the acquired public utility. No
employee of any acquired public utility shall suffer any worsening
of wages, seniority, pension, begin delete vacation end delete begin insert vacation, end insert or other benefits
by reason of the acquisition.

begin delete

Whenever

end delete

begin insert (b) end insert begin insert   end insert begin insert Whenever end insert the begin delete district end delete begin insert VTA end insert acquires existing facilities from
a publicly or privately owned utility, either in proceedings in
eminent domain or otherwise, the begin delete district end delete begin insert VTA end insert shall assume and
observe all existing labor contracts.

begin delete

The

end delete

begin insert (c) end insert begin insert   end insert begin insert The end insert provisions of this section begin delete shall end delete apply only to those
officers or supervisory employees of the acquired utility as shall
be designated by the board.

SEC. 74.  

Section 100351 of the Public Utilities Code is
amended to read:

100351.  

Whenever the begin delete district end delete begin insert VTA end insert acquires existing facilities
from a publicly or privately owned utility, either in proceedings
in eminent domain or otherwise, that has a pension plan in
operation, members and beneficiaries of the pension plan shall
continue to have the rights, privileges, benefits, begin delete obligations end delete
begin insert obligations, end insert and status with respect to the established system. The
outstanding obligations and liabilities of the public utility by reason
of the pension plan shall be considered and taken into account and
allowance made therefor in the purchase price of the public utility.
The persons entitled to pension benefits as provided for in this
section and the benefits begin delete which end delete begin insert that end insert are provided shall be specified
in the agreement or order by which any public utility is acquired
by the begin delete district. end delete begin insert VTA. end insert

SEC. 75.  

Section 100370 of the Public Utilities Code is
amended to read:

100370.  

The board may establish a retirement system for the
officers and employees of the begin delete district end delete begin insert VTA end insert and provide for the
payment of annuities, pensions, retirement allowances, disability
payments, and death benefits or any of them. The adoption, terms,
and conditions of any retirement system covering employees of
the begin delete district end delete begin insert VTA end insert in a bargaining unit represented by a labor
organization shall be pursuant to a collective bargaining agreement
between the labor organization and the begin delete district. end delete begin insert VTA. end insert For purposes
of this section, “officers” does not include members of the board
of directors.

SEC. 76.  

Section 100371 of the Public Utilities Code is
amended to read:

100371.  

The board may contract with the board of
administration of the Public Employees’ Retirement System and
enter all or any portion of its employees under begin delete such end delete begin insert that end insert system
begin delete provided that end delete begin insert if end insert no employees of the begin delete district end delete begin insert VTA end insert in a bargaining
unit begin delete which end delete begin insert that end insert is represented by a labor organization begin delete shall be end delete begin insert are end insert
included in begin delete such end delete begin insert the end insert contract except as authorized by a collective
bargaining agreement.

SEC. 77.  

Section 100372 of the Public Utilities Code is
amended to read:

100372.  

All persons receiving pension benefits from an
acquired public utility and all persons entitled to pension benefits
under any pension plan of begin delete such end delete begin insert the end insert acquired public utility may
become members or receive pensions under a pension plan
established by the begin delete district end delete begin insert VTA end insert by mutual agreement of begin delete such end delete begin insert the end insert
persons and the begin delete district. Such end delete begin insert VTA. The end insert agreement may provide
for the waiver of all rights, privileges, begin delete benefits end delete begin insert benefits, end insert and status
with respect to the pension plan of begin delete such end delete begin insert the end insert acquired public utility.

SEC. 78.  

Section 100380 of the Public Utilities Code is
amended to read:

100380.  

The begin delete district end delete begin insert VTA end insert shall take begin delete such end delete begin insert the end insert steps as may be
necessary to obtain coverage for the begin delete district end delete begin insert VTA end insert and its employees
under Title 2 of the Federal Social Security Act, as amended, and
the related provisions of the Federal Contributions Act, as
amended.

SEC. 79.  

Section 100381 of the Public Utilities Code is
amended to read:

100381.  

The begin delete district end delete begin insert VTA end insert shall take begin delete such end delete begin insert the end insert steps as may be
necessary to obtain coverage for the begin delete district end delete begin insert VTA end insert and its employees
under the workers’ compensation, unemployment compensation
begin delete disability end delete begin insert disability, end insert and unemployment insurance laws of the State
of California.

SEC. 80.  

Section 100400 of the Public Utilities Code is
amended to read:

100400.  

Whenever the board deems it necessary for the begin delete district end delete
begin insert VTA end insert to incur a bonded indebtedness for the acquisition,
construction, or repair of any or all improvements, works, property,
or facilities, authorized by this part or necessary or convenient for
the carrying out of the powers of the begin delete district, end delete begin insert VTA, end insert or for any other
purpose authorized by this part, the board shall, by ordinance,
adopted by a vote of two-thirds of all members of the board, so
declare and call an election to be held in the begin delete district end delete begin insert territory of
the VTA end insert for the purpose of submitting to the qualified voters thereof
the proposition of incurring indebtedness by the issuance of bonds
of the begin delete district, provided end delete begin insert VTA, if end insert the total amount of bonds issued
and outstanding pursuant to this article begin delete shall end delete begin insert do end insert not exceed 15
percent of the assessed value of the taxable property of the begin delete district end delete
begin insert VTA end insert as shown by the last equalized assessment roll of the County
of Santa Clara. The ordinance shall state:

(a) The purposes for which the proposed debt is to be incurred,
which may include all costs and estimated costs incidental to or
connected with the accomplishment of those purposes, including,
without limitation, engineering, inspection, legal, fiscal agents,
financial consultant, and other fees; bond and other reserve funds;
working capital; bond interest estimated to accrue during the
construction period and for a period not to exceed three years
thereafter; and expenses of all proceedings for the authorization,
issuance, and sale of the bonds.

(b) The estimated cost of accomplishing those purposes.

(c) The amount of the principal of the indebtedness.

(d) The maximum term the bonds proposed to be issued shall
run before maturity, which shall not exceed 50 years from the date
thereof or the date of each series thereof.

(e) The maximum rate of interest to be paid, which shall not
exceed 7 percent per annum.

(f) The proposition to be submitted to the voters, which may
include one or more purposes.

(g) The date of the election.

(h) The manner of holding the election and the procedure for
voting for or against the measure.

(i) The ordinance may also contain a statement that the retail
transaction and use tax mentioned in Article 9 (commencing with
Section 100250) of Chapter begin delete 5 of this part, end delete begin insert 5, end insert or a stated portion
thereof, shall be levied, or continued to be levied, and used to the
extent required to pay principal of and interest on the bonds as
they become due, to provide for any sinking fund payments
required therefor, or to create or maintain any reserve fund required
therefor.

(j) The ordinance may also contain any other matters authorized
by this part or any other law.

SEC. 81.  

Section 100401 of the Public Utilities Code is
amended to read:

100401.  

Notice of holding of the election shall be given by
publishing, pursuant to Section 6066 of the Government Code, the
ordinance calling the election in at least one newspaper published
in the begin delete district. end delete begin insert territory of the VTA. end insert No other notice of the election
need be given. Except as otherwise provided in the ordinance, the
election shall be conducted as other district elections.

SEC. 82.  

Section 100403 of the Public Utilities Code is
amended to read:

100403.  

If a majority of the electors voting on the proposition
vote for it, then the board may, by resolution, at begin delete such end delete begin insert a end insert time or
times as it deems proper, issue bonds of the begin delete district end delete begin insert VTA end insert for the
whole or any part of the amount of the indebtedness so authorized
and may from time to time, by resolution, provide for the issuance
of begin delete such end delete amounts as the necessity thereof may appear, until the full
amount of begin delete such end delete begin insert the end insert bonds authorized shall have been issued. The
full amount of bonds may be divided into two or more series and
different dates and different dates of payment fixed for the bonds
of each series. A bond need not mature on an anniversary of its
date. The maximum term the bonds of any series shall run before
maturity shall not exceed 50 years from the date of each series
respectively. In begin delete such end delete begin insert the end insert resolution or resolutions, the board shall
prescribe the form of the begin delete bonds (including, end delete begin insert bonds, including, end insert
without limitation, registered bonds and coupon begin delete bonds) end delete begin insert bonds, end insert and
the form of any coupons to be attached thereto, the registration,
conversion, and exchange privileges, if any, pertaining thereto,
and fix the time when the whole or any part of the principal shall
become due and payable.

SEC. 83.  

Section 100404 of the Public Utilities Code is
amended to read:

100404.  

The bonds shall bear interest at a rate or rates not
exceeding 7 percent per annum, payable semiannually, except that
the first interest payable on the bonds or any series thereof may
be for any period not exceeding one year as determined by the
board. In the resolution or resolutions providing for the issuance
of the bonds, the board may also provide for call and redemption
of the bonds prior to maturity at begin delete such end delete times and prices and upon
begin delete such end delete other terms as it may specify, but no bond shall be subject to
call or redemption prior to maturity unless it contains a recital to
that effect or unless a statement to that effect is printed thereon.
The denomination or denominations of the bonds shall be stated
in the resolution providing for their issuance, but shall not be less
than one thousand dollars ($1,000). The principal of and interest
on the bonds shall be payable in lawful money of the United States
at the office of the treasurer of the begin delete district end delete begin insert VTA end insert or at begin delete such end delete begin insert another end insert
other place or places as may be designated, or at either place or
places at the option of the holders of the bonds. The bonds, or begin delete such end delete
begin insert the end insert series thereof, shall be dated and numbered consecutively and
shall be signed by the chairman of the board and the treasurer,
countersigned by the secretary and the official seal of the begin delete district end delete
begin insert VTA end insert attached. The interest coupons of begin delete such end delete begin insert the end insert bonds shall be
signed by the treasurer. All begin delete such end delete signatures, countersignatures,
and seal may be printed, lithographed, or mechanically reproduced,
except that one of begin delete such end delete begin insert the end insert signatures or countersignatures on the
bonds shall be manually affixed. If any officer whose signature or
countersignature appears on bonds or coupons ceases to be begin delete such end delete
begin insert an end insert officer before the delivery of the bonds, his signature is as
effective as if he had remained in office.

SEC. 84.  

Section 100407 of the Public Utilities Code is
amended to read:

100407.  

All accrued interest and premiums received on the
sale of bonds shall be placed in the fund to be used for the payment
of principal of and interest on the bonds and the remainder of the
proceeds of the bonds shall be placed in the treasury to the credit
of the proper improvement fund and applied exclusively to the
purposes for which the debt was begin delete incurred (which end delete begin insert incurred, which end insert
purposes shall be in conformity with an approved general transit
plan or element thereof then in begin delete effect); provided, however, that
when such end delete begin insert effect. When those end insert purposes have been accomplished
any moneys remaining in begin delete such end delete begin insert the end insert improvement fund (a) shall be
transferred to the fund to be used for the payment of principal of
and interest on the bonds, or (b) shall be placed in a fund to be
used for the purchase of outstanding bonds of the begin delete district end delete begin insert VTA end insert from
time to time in the open market at begin delete such end delete prices and in begin delete such end delete begin insert a end insert
manner, either at public or private sale or otherwise, as the board
may determine. Bonds so purchased shall be canceled immediately.

SEC. 85.  

Section 100409 of the Public Utilities Code is
amended to read:

100409.  

Whenever the board deems that the expenditure of
money for the purposes for which the bonds were authorized by
the voters is impractical or unwise, it may, by ordinance adopted
by a vote of two-thirds of all members of the board, so declare and
call an election to be held in the begin delete district end delete begin insert territory of the VTA end insert for
the purpose of submitting to the qualified voters thereof the
proposition of incurring indebtedness by the issuance of begin delete such end delete begin insert the end insert
bonds for some other purposes or, in the case where bonds have
been sold, the proposition to use the proceeds for some other
purposes. The procedure, so far as applicable, shall be the same
as when a bond proposition is originally submitted.

SEC. 86.  

Section 100410 of the Public Utilities Code is
amended to read:

100410.  

The board may provide for the issuance, sale, or
exchange of refunding bonds to redeem or retire any bonds issued
by the begin delete district end delete begin insert VTA end insert upon the terms, at the times, and in the manner
which it determines. Refunding bonds may be issued in a principal
amount sufficient to pay all or any part of the principal of begin delete such end delete
outstanding bonds, the interest thereon, and the premiums, if any,
due upon call and redemption thereof prior to maturity and all
expenses of begin delete such end delete begin insert the end insert refunding. The provisions of this article for
issuance and sale of bonds apply to the issuance and sale of begin delete such end delete
begin insert the end insert refunding bonds, except that (a) no election need be called or
held for the purpose of authorizing the issuance of refunding bonds,
and (b) when refunding bonds are to be exchanged for outstanding
bonds, the method of exchange shall be as determined by the board.

SEC. 87.  

Section 100411 of the Public Utilities Code is
amended to read:

100411.  

The provisions of Article 4 (commencing with Section
begin delete 53500), end delete begin insert 53500) of end insert Chapter begin delete 3, end delete begin insert 3 of end insert Part begin delete 1, end delete begin insert 1 of end insert Division begin delete 2, end delete begin insert 2 of end insert Title
5 of the Government Code are applicable to the begin delete district. end delete begin insert VTA. end insert

SEC. 88.  

Section 100450 of the Public Utilities Code is
amended to read:

100450.  

The begin delete district end delete begin insert VTA end insert may issue bonds, payable from
revenue of any facility or enterprise to be acquired or constructed
by the begin delete district, end delete begin insert VTA, end insert in the manner provided by the Revenue Bond
Law of 1941 (Chapter 6 (commencing with Section 54300) of Part
1 of Division 2 of Title 5 of the Government Code), all of the
provisions of which are applicable to the begin delete district, end delete begin insert VTA, end insert except that
these bonds may be paid, in whole or in part, from revenues made
available under Article 9 (commencing with Section 100250) of
Chapter 5 and, in begin delete such a end delete begin insert that end insert case, the bonds may be issued without
an election if the resolution authorizing the bonds provides that
the retail transactions and use tax shall continue to be imposed
under that Article 9 until the bonds are fully paid or provision has
been made for their payment in full.

SEC. 89.  

Section 100451 of the Public Utilities Code is
amended to read:

100451.  

The begin delete district end delete begin insert VTA end insert is a local agency within the meaning
of the Revenue Bond Law of begin delete 1941, Chapter end delete begin insert 1941 (Chapter end insert 6
(commencing with Section begin delete 54300), end delete begin insert 54300) of end insert Part begin delete 1, end delete begin insert 1 of end insert Division
begin delete 2, end delete begin insert 2 of end insert Title 5 of the Government begin delete Code. end delete begin insert Code). end insert The term
“enterprise” as used in the Revenue Bond Law of 1941 shall, for
all purposes of this part, include the system or any or all transit
facilities and all additions, extensions, and improvements thereto
authorized to be acquired, constructed, or completed by the begin delete district. end delete
begin insert VTA. end insert The begin delete district end delete begin insert VTA end insert may issue revenue bonds under the Revenue
Bond Law of 1941, for any one or more transit facilities authorized
to be acquired, constructed, or completed by the begin delete district end delete begin insert VTA end insert or,
in the alternative, may issue revenue bonds under the Revenue
Bond Law of 1941, for the acquisition, construction, and
completion of any one of begin delete such end delete begin insert those end insert transit facilities. Nothing in
this article shall prevent the begin delete district end delete begin insert VTA end insert from availing itself of,
or making use of, any procedure provided in this part for the
issuance of bonds of any type or character for any of the transit
facilities authorized hereunder, and all proceedings may be carried
on simultaneously or, in the alternative, as the board may
determine.

SEC. 90.  

Section 100460 of the Public Utilities Code is
amended to read:

100460.  

The begin delete district end delete begin insert VTA end insert shall have power to purchase transit
equipment such as cars, trolley buses, and motor buses, or rolling
equipment; and may execute agreements, leases and equipment
trust certificates in the forms customarily used by private
corporations engaged in the transit business appropriate to effect
begin delete such end delete begin insert the end insert purchase and leasing of transit equipment and may dispose
of begin delete such end delete begin insert the end insert equipment trust certificates upon begin delete such end delete terms and
conditions as the board may deem appropriate. Payment for begin delete such end delete
begin insert the end insert equipment, or rentals therefor, may be made in installments,
and the deferred installments may be evidenced by equipment trust
certificates payable from any source or sources of funds specified
in begin delete such end delete certificates that are or will be legally available to the
begin delete district. end delete begin insert VTA. end insert Title to begin delete such end delete begin insert the end insert equipment shall not rest in the
begin delete district end delete begin insert VTA end insert until the equipment trust certificates are paid.

SEC. 91.  

Section 100461 of the Public Utilities Code is
amended to read:

100461.  

The agreement to purchase or lease may direct the
vendor or lessor to sell and assign or lease the rolling equipment
to a bank or trust company duly authorized to transact business in
the State of California as trustee, for the benefit and security of
the equipment trust certificates and may direct begin delete such end delete begin insert the end insert trustee to
deliver the rolling equipment to one or more designated officers
of the begin delete district end delete begin insert VTA end insert and may authorize the begin delete district end delete begin insert VTA end insert to execute
and deliver simultaneously therewith an installment purchase
agreement or a lease of the equipment to the begin delete district. end delete begin insert VTA. end insert

SEC. 92.  

Section 100462 of the Public Utilities Code is
amended to read:

100462.  

The agreements and leases shall be duly acknowledged
before a person authorized by law to take acknowledgments of
deeds and in the form required for acknowledgment of deeds. begin delete Such end delete
begin insert These end insert agreements, leases, and equipment trust certificates shall be
authorized by resolution of the begin delete district end delete begin insert VTA end insert and shall contain begin delete such end delete
covenants, conditions, and provisions begin delete which end delete begin insert that end insert may be deemed
necessary or appropriate to begin delete insure end delete begin insert ensure end insert the payment of the
equipment trust certificates from legally available sources of funds
specified in begin delete such end delete begin insert the end insert certificates.

SEC. 93.  

Section 100463 of the Public Utilities Code is
amended to read:

100463.  

The covenants, conditions, and provisions of the
agreements, leases, and equipment trust certificates shall not
conflict with any of the provisions of any trust agreement securing
the payment of bonds, notes, or certificates of the begin delete district. end delete begin insert VTA. end insert

SEC. 94.  

Section 100470 of the Public Utilities Code is
amended to read:

100470.  

The Improvement Act of 1911, the Municipal
Improvement Act of 1913 and the Improvement Bond Act of 1915
are applicable to the begin delete district. end delete begin insert VTA. end insert

SEC. 95.  

Section 100471 of the Public Utilities Code is
amended to read:

100471.  

The provisions of Chapter 1 (commencing with Section
begin delete 99000), end delete begin insert 99000) of end insert Part begin delete 11, end delete begin insert 11 of end insert Division 10 of the Public Utilities
Code are applicable to the begin delete district. end delete begin insert VTA. end insert

SEC. 96.  

Section 100482 of the Public Utilities Code is
amended to read:

100482.  

The begin delete district end delete begin insert VTA end insert may borrow money in accordance
with the provisions of Article 7 (commencing with Section 53820),
or of Article 7.6 (commencing with Section begin delete 53850), end delete begin insert 53850) of end insert
Chapter begin delete 4, end delete begin insert 4 of end insert Part begin delete 1, end delete begin insert 1 of end insert Division begin delete 2, end delete begin insert 2 of end insert Title 5 of the
Government Code.

SEC. 97.  

Section 100483 of the Public Utilities Code is
amended to read:

100483.  

The begin delete district end delete begin insert VTA end insert may borrow money in anticipation
of the sale of bonds that have been authorized to be issued, but
have not been sold and delivered, and may issue negotiable bond
anticipation notes therefor and may renew the same from time to
time, but the maximum maturity of those notes, including the
renewals thereof, shall not exceed five years from the date of
delivery of begin delete such end delete begin insert the end insert original notes. The notes may be paid from
any moneys of the begin delete district end delete begin insert VTA end insert available therefor and not otherwise
pledged. If not previously otherwise paid, the notes shall be paid
from the proceeds of the next sale of the bonds of the begin delete district end delete begin insert VTA end insert
in anticipation of which they were issued. The notes shall not be
issued in any amount in excess of the aggregate amount of bonds
begin delete which end delete begin insert that end insert the begin delete district end delete begin insert VTA end insert has been authorized to issue, less the
amount of any bonds of that authorized issue previously sold, and
also less the amount of other bond anticipation notes therefor issued
and then outstanding. The notes shall be issued and sold in the
same manner as the bonds. The notes and the resolution or
resolutions authorizing them may contain any provisions,
conditions, or limitations begin delete which end delete begin insert that end insert a resolution of the begin delete district end delete
begin insert VTA end insert authorizing the issuance of bonds may contain.

SEC. 98.  

Section 100490 of the Public Utilities Code is
amended to read:

100490.  

The begin delete district end delete begin insert VTA end insert may bring an action to determine the
validity of any of its bonds, equipment trust certificates, warrants,
notes, or other evidences of indebtedness pursuant to Chapter 9
(commencing with Section begin delete 860), end delete begin insert 860) of end insert Title begin delete 10, end delete begin insert 10 of end insert Part 2 of
the Code of Civil Procedure.

SEC. 99.  

Section 100491 of the Public Utilities Code is
amended to read:

100491.  

All bonds and other evidences of indebtedness issued
by the begin delete district end delete begin insert VTA end insert under the provisions of this part, and the interest
thereon, are free and exempt from all taxation within the State of
California, except for transfer, franchise, inheritance, and estate
taxes.

SEC. 100.  

Section 100492 of the Public Utilities Code is
amended to read:

100492.  

Notwithstanding any other provisions of this part or
any other law, the provisions of all ordinances, resolutions, and
other proceedings in the issuance by the begin delete district end delete begin insert VTA end insert of any bonds,
bonds with a pledge of revenues, bonds for improvement districts,
revenue bonds, equipment trust certificates, notes, or any and all
evidences of indebtedness or liability shall constitute a contract
between the begin delete district end delete begin insert VTA end insert and the holders of begin delete such end delete begin insert the end insert bonds,
equipment trust certificates, notes, or evidences of indebtedness
or liability and the provisions thereof shall be enforceable against
the begin delete district, end delete begin insert VTA, end insert or any or all of its successors or assigns, by
mandamus or any other appropriate suit, action, or proceeding in
law or in equity in any court of competent jurisdiction. Nothing
contained in this part or in any other law shall be held to relieve
the begin delete district end delete begin insert VTA end insert or the territory included within it from any bonded
or other debt or liability contracted by the begin delete district. end delete begin insert VTA. end insert Upon
dissolution of the begin delete district end delete begin insert VTA end insert or upon withdrawal of territory
therefrom, the property formerly included within begin delete the district end delete begin insert it end insert or
withdrawn therefrom shall continue to be liable for the payment
of all bonded and other indebtedness or liabilities outstanding at
the time of begin delete such end delete begin insert the end insert dissolution or withdrawal the same as if the
begin delete district end delete begin insert VTA end insert had not been so dissolved or the territory withdrawn
therefrom, and it shall be the duty of the successors or assigns to
provide for the payment of begin delete such end delete begin insert the end insert bonded and other indebtedness
and liabilities. Except as may be otherwise provided in the
proceedings for the authorization, issuance, and sale of any revenue
bonds, bonds secured by a pledge of revenues or bonds for
improvement districts secured by a pledge of revenues, revenues
of any kind or nature derived from any revenue-producing
improvements, works, facilities, or property owned, operated or
controlled by the begin delete district end delete begin insert VTA end insert shall be pledged, charged, assigned,
and have a lien thereon for the payment of begin delete such end delete begin insert the end insert bonds as long
as they are outstanding, regardless of any change in ownership,
operation, or control of begin delete such end delete begin insert the end insert revenue-producing improvements,
works, facilities, or property and it shall, in begin delete such end delete begin insert the end insert later event or
events, be the duty of the successors or assigns to continue to
maintain and operate begin delete such end delete begin insert the end insert revenue-producing improvements,
works, facilities, or property as long as bonds are outstanding.

SEC. 101.  

Section 100500 of the Public Utilities Code is
amended to read:

100500.  

The begin delete district end delete begin insert VTA end insert may be dissolved pursuant to the
Cortese-Knox-Hertzberg Local Government Reorganization Act
of 2000 (Division 3 (commencing with Section 56000) of Title 5
of the Government Code).

SEC. 102.  

Section 100601 of the Public Utilities Code is
amended to read:

100601.  

(a) Whenever the board finds that property adjacent
to, or in the vicinity of, one or more rail transit stations, or proposed
rail transit stations, of the begin delete authority end delete begin insert VTA end insert receives or will receive
special benefit by reason of the location or operation of one or
more of those rail transit stations, the board may, by resolution
adopted by a two-thirds vote of its members, provide for notice
and hearing on its intention to establish one or more special benefit
districts and levy a special benefit assessment on real property
therein for the purpose of financing, in whole or in part, the
acquisition, construction, development, joint development,
operation, maintenance, or repair of one or more rail transit stations
and rail transit related facilities located within the benefit district.

(b) In connection with the levy of a special benefit assessment,
the board shall comply with the notice, protest, and hearing
procedures set forth in Section 53753 of the Government Code.

(c) The resolution may provide that the proposed benefit district
will contain separate zones, which may consist of either contiguous
or noncontiguous areas of land within the begin delete district. end delete begin insert territory of the
VTA. end insert The proposed benefit district and each proposed zone, if any,
therein shall be an area adjacent to, or in the vicinity of, one or
more rail transit stations or proposed rail transit stations. The
boundaries of the benefit district and of each zone, if any, therein
shall be drawn so as to reflect, as accurately as possible, the areas
in which special benefits are conferred by reason of the proximity
and operation of one or more rail transit stations.

(d) A notice stating the time and place of the hearing, and setting
forth the boundaries and purpose of the proposed benefit district,
shall be published prior to the time fixed for the hearing pursuant
to Section 6066 of the Government Code.

(e) For purposes of this chapter, “benefit district” means a
special benefit assessment district established pursuant to this
chapter, the area of which shall not lie more than one-half mile
from the center point of any rail transit station or proposed rail
transit station.

(f) For purposes of this chapter, “transit related facilities” means
land, buildings, and equipment, or any interest therein, whether or
not the operation thereof produces revenue, which has, as its
primary purpose, the operation of the rail transit system or the
providing of services to the passengers of the rail transit system,
but does not mean any land, buildings, or equipment, or interest
therein, which is used primarily for the production of revenue not
arising from the operation of the rail transit system.

SEC. 103.  

Section 100601.5 of the Public Utilities Code is
amended to read:

100601.5.  

(a) The resolution shall state, as appropriate, the
maximum and minimum rate of assessment, the amount of the
special benefit assessment and the purposes for which it is to be
levied, the estimated cost of accomplishing the purposes, and the
dates or approximate intervals at which the assessment shall be
levied. The resolution shall also state that the exterior boundaries
of the benefit district are set forth on a map on file with the
secretary of the begin delete authority, end delete begin insert VTA, end insert which map shall govern for all
purposes as to the extent of the benefit district and zones, if any,
therein and that the area set forth on the map shall thereupon
constitute and be known as “Benefit District No. ____ of the Santa
Clara Valley Transportation Authority,” or as “Benefit Zone ____
of the Benefit District No. ____ of the Santa Clara Valley
Transportation Authority,” as designated by the board.

(b) A copy of the resolution shall be included with the notice
given pursuant to Section 53753 of the Government Code.

SEC. 104.  

Section 100602 of the Public Utilities Code is
amended to read:

100602.  

(a) In determining the amount of a special benefit
assessment, the board shall measure the benefit to real property in
the benefit district or zones therein according to the procedures
and approval process set forth in Section 4 of Article XIII D of the
California Constitution.

(b) The special benefit assessment constitutes a charge imposed
on particular real property for begin delete an authority end delete begin insert a VTA end insert project of direct
benefit to that property, and does not constitute ad valorem taxes
or any other form of general tax levy applying a given rate to the
assessed valuation of all taxable property within the begin delete authority. end delete
begin insert territory of the VTA. end insert

(c) The authority shall possess all powers necessary for,
incidental to, or convenient for, the collection, enforcement,
administration, or distribution of the special benefit assessment in
accordance with California law.

(d) The revenue from a special benefit assessment, which is
imposed pursuant to this chapter, or from bonds secured by begin delete such
a end delete begin insert the end insert special benefit assessment, for the purpose of financing a rail
transit station or rail transit related facility located within the
benefit district, shall be used only for financing of the facility for
which it was levied, and that revenue shall not be used for any
other purpose or the payment of any other expense of the begin delete authority, end delete
begin insert VTA, end insert including, but not limited to, transit, transportation, or
operating expense.

SEC. 105.  

Section 100602.11 of the Public Utilities Code is
amended to read:

100602.11.  

At the time and place provided in the notice or at
any time and place to which the hearing is adjourned, the board
or its appointed hearing officer shall hear all of the following:

(a) The petition for exclusion or reduction.

(b) All evidence or proofs that may be introduced by or on behalf
of the petitioners.

(c) All objections to the petition that may be presented in writing
by any person, including the begin delete authority. end delete begin insert VTA. end insert

(d) All evidence or proofs that may be introduced in support of
objections to the petition.

SEC. 106.  

Section 100602.14 of the Public Utilities Code is
amended to read:

100602.14.  

The board, after the hearing on an exclusion or
reduction petition, shall order one of the following by resolution:

(a) In the case of an exclusion petition, order the exclusion of
all or any part of the real property described in the petition upon
its finding that the property will not be benefited by the operations
of the begin delete authority end delete begin insert VTA end insert in the vicinity of the benefit district.

(b) In the case of a reduction petition, order a change in the
benefit assessment to all or any portion of the real property
described in the petition to provide that it not exceed the amount
of benefit derived by the operations of the begin delete authority end delete begin insert VTA end insert in the
vicinity of the benefit district.

(c) Confirm the assessment on the real property subject to the
petition as correctly reflecting the amount of benefit to the real
property.

SEC. 107.  

Section 100603 of the Public Utilities Code is
amended to read:

100603.  

(a) Following formation of the benefit district or
concurrently therewith, if the board deems it necessary to incur a
bonded indebtedness for the acquisition, construction, development,
joint development, completion, operation, maintenance, or repair
of one or more rail transit stations and related rail transit facilities
located within the benefit district, the board may provide, by
resolution, that the bonded indebtedness shall be payable from
special benefit assessments levied within the benefit district. The
resolution shall be adopted by a two-thirds vote of the members
of the board, and shall declare and state all of the following:

(1) That the board intends to incur an indebtedness, by the
issuance of bonds of the begin delete authority, end delete begin insert VTA, end insert for the benefit district
which the board has formed, or intends to form, within a portion
of the begin delete authority. end delete begin insert territory of the VTA. end insert

(2) The purposes for which the proposed debt is to be incurred,
which may include all costs and estimated costs necessary or
convenient for, incidental to, or connected with, the
accomplishment of the purposes, including, without limitation,
engineering, inspection, legal, fiscal agent, financial consultant,
bond and other reserve funds, working capital, bond interest
estimated to accrue during the construction period, if any, and for
a period not exceeding three years thereafter, and the expenses of
all proceedings for the authorization, issuance, and sale of the
bonds.

(3) The estimated cost of accomplishing the purposes and the
amount of the principal of the indebtedness to be incurred.

(4) That a general description of the benefit district and of each
zone, if any, therein and maps showing the exterior boundaries
thereof are on file with the secretary of the begin delete authority end delete begin insert VTA end insert and
available for inspection by any interested person.

(5) That special benefit assessments for the payment of the
bonds, and the interest thereon, have been, or are proposed to be
levied in the benefit district or zones therein in accordance with
the procedures and approval process set forth in Section 4 of Article
XIII D of the California Constitution.

(6) The extent to which, if at all, all or a portion of the revenues
of the begin delete authority end delete begin insert VTA end insert are to be used to pay the principal of, interest
on, and sinking fund payments for, the bonds, including the
establishment and maintenance of any reserve fund therefor.

(7) The time and place set for hearing on the proposed issuance
of the bonds.

(8) That, prior to levying a special benefit assessment, the board
shall comply with the notice, protest, and hearing procedures set
forth in Section 53753 of the Government Code.

(9) The maximum term the proposed bonds shall run before
maturity, which shall not exceed 40 years from the date of the
bonds or any series thereof.

(10) The maximum rate or rates of interest to be paid, which
shall not exceed 12 percent per annum.

(11) That the pledge of special benefit assessment revenues to
the bonds authorized by this section has priority over the use of
any of those revenues for pay-as-you-go financing, except to the
extent that this priority is expressly restricted by any of the
begin delete authority’s end delete begin insert VTA’s end insert agreements with bondholders.

(b) The notice stating the time and place of the hearing on the
proposed issuance of bonds shall be published prior to the time
fixed for the hearing pursuant to Section 6066 of the Government
Code.

SEC. 108.  

Section 100605 of the Public Utilities Code is
amended to read:

100605.  

begin insert (a) end insert begin insert   end insert Special benefit assessments for the payment of
the principal of, and interest on, bonds issued for a benefit district
or zone shall be levied in the benefit district or zone at rates that
are sufficient in the aggregate, together with revenues already
collected and available, to pay the principal of, and interest on, all
bonds the begin delete authority end delete begin insert VTA end insert issued for the benefit district or zone.
Other revenues of the begin delete authority end delete begin insert VTA end insert shall be used for the payment
of the principal of, and interest on, the bonds only to the extent set
forth in any agreement of the begin delete authority end delete begin insert VTA end insert for the benefit of
bondholders.

begin delete

Special

end delete

begin insert (b) end insert begin insert   end insert begin insert Special end insert benefit assessments in the benefit district and zones,
if any, therein shall be calculated in accordance with the
requirements set forth in Section 4 of Article XIII D of the
California Constitution.

SEC. 109.  

Section 100606 of the Public Utilities Code is
amended to read:

100606.  

begin insert (a) end insert begin insert   end insert The bonds issued pursuant to this chapter shall
bear interest at a rate or rates not exceeding 12 percent per annum,
payable semiannually, except that the first interest payable on the
bonds or any series thereof may be for any period not to exceed
one year as determined by the board.

begin delete

In

end delete

begin insert (b) end insert begin insert   end insert begin insert In end insert the resolution or resolutions providing for the issuance
of bonds, the board may also provide for call and redemption of
the bonds prior to maturity at times and prices and upon any other
terms that it may specify. However, no bond is subject to call or
redemption prior to maturity unless the bond contains a recital to
that effect. The denomination or denominations of bonds shall be
stated in the resolution providing for their issuance, but shall not
be less than five thousand dollars ($5,000). The principal of, and
interest on, the bonds shall be payable in lawful money of the
United States at the office of the treasurer of the begin delete authority end delete begin insert VTA end insert or
at any other place or places that may be designated by the board,
or at either place or places at the option of the holders of the bonds.
The bonds shall be dated, numbered consecutively, signed by the
board chairperson and chief financial officer, and countersigned
by the secretary and shall have the official seal of the begin delete authority end delete
begin insert VTA end insert attached. The interest coupons of the bonds shall be signed
by the chief financial officer. The seal and all signatures and
countersignatures may be printed, lithographed, or mechanically
reproduced, except that one signature or countersignature shall be
manually affixed.

begin delete

If

end delete

begin insert (c) end insert begin insert   end insert begin insert If end insert an officer, whose signature or countersignature appears
on the bonds or coupons, leaves office for any reason prior to the
delivery of the bonds, the officer’s signature is as effective as if
the officer had remained in office.

SEC. 110.  

Section 100609 of the Public Utilities Code is
amended to read:

100609.  

begin insert (a) end insert begin insert   end insert All accrued interest and premiums received on
the sale of bonds issued by the begin delete authority end delete begin insert VTA end insert pursuant to this
chapter shall be placed in the fund to be used for the payment of
principal of, and interest on, those bonds. The remainder of the
proceeds received on the sale of the bonds shall be placed in the
treasury to secure those bonds or for the purposes for which the
debt was incurred.

begin delete

When

end delete

begin insert (b) end insert begin insert   end insert begin insert When end insert the purposes for which the debt was incurred 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 those outstanding bonds of the begin delete authority, end delete begin insert VTA, end insert from
time to time, in the open market at the prices and in the manner,
either at public or private sale or otherwise, that the board
determines. Bonds so purchased shall be canceled immediately.

SEC. 111.  

Section 100610 of the Public Utilities Code is
amended to read:

100610.  

begin insert (a) end insert begin insert   end insert The board may provide for the issuance, sale, or
exchange of refunding bonds to redeem or retire any bonds issued
by the begin delete authority end delete begin insert VTA end insert under this chapter upon the terms, at the
times, and in the manner that it determines. Refunding bonds may
be issued in a principal amount sufficient to pay all, or any part,
of the principal of the outstanding bonds issued under this chapter,
the interest thereon, and the premiums, if any, due upon call and
redemption thereof prior to maturity and all expenses of the
refunding.

begin delete

The

end delete

begin insert (b) end insert begin insert   end insert begin insert The end insert provisions of this chapter, for the issuance and sale of
bonds apply to the issuance and sale of refunding bonds, except
that, when refunding bonds are to be exchanged for outstanding
bonds, the method of exchange shall be as determined by the board.

SEC. 112.  

Section 100612 of the Public Utilities Code is
amended to read:

100612.  

The board may change the purposes for which any
proposed debt is to be incurred, the estimated cost, the amount of
bonded debt to be incurred, or the boundaries of the benefit district
or zones, if any, therein or one or all of those matters, except that
the board shall not change the boundaries to include any territory
which will not, in its judgment, be benefited by the begin delete authority end delete begin insert VTA end insert
action.

SEC. 113.  

Section 100613 of the Public Utilities Code is
amended to read:

100613.  

(a) The board shall not change the purposes, the
estimated cost, the boundaries of the benefit district or zones, if
any, therein, or the amount of bonded debt to be incurred until
after it gives notice of its intention to do so, stating each proposed
change in the purpose and stating, if applicable, that the exterior
boundaries proposed to be changed are set forth on a map on file
with the secretary of the begin delete authority. end delete begin insert VTA. end insert The notice shall also
specify the time and the place set for hearing.

(b) The notice shall be published prior to the time set for the
hearing pursuant to Section 6066 of the Government Code.

(c) The notice shall also be mailed at least 30 days prior to the
hearing to all owners of real property affected by the proposed
change whose names and addresses appear on the last equalized
assessment roll or are otherwise known to the board of supervisors
of the county in which the benefit district is located or to the
begin delete authority. Provided, however, that any end delete begin insert VTA. Any end insert proposed increases
to a special benefit assessment begin delete may end delete begin insert shall end insert not be made unless all
notice, protest, and hearing procedures set forth in Section 53753
of the Government Code have been followed.

SEC. 114.  

Section 100618 of the Public Utilities Code is
amended to read:

100618.  

In the event of conflict with any other law, the
provisions of this chapter shall prevail with respect to benefit
districts within the begin delete authority. end delete begin insert territory of the VTA. end insert

SEC. 115.  

Section 100619 of the Public Utilities Code is
amended to read:

100619.  

Notwithstanding any other provision of this chapter,
the begin delete authority end delete begin insert VTA end insert shall not pledge any portion of its general fund
revenues to pay any part of any bonded indebtedness incurred
under this chapter unless required by provisions of the California
Constitution.