BILL NUMBER: AB 2196	INTRODUCED
	BILL TEXT


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  County Transit
District,   Valley Transportation Authority, 
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  authority
  Santa Clara Valley Transportation Authority  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  authority   Santa Clara Valley
Transportation Authority  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.   "Authority," "district," or  "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,  rights  
rights,  or interests owned or to be acquired by the 
district   VTA  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  district.   VTA. 
  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  district.   VTA. 
  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  district
  VTA  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  district   VTA  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  district.
 VTA. 
  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
 district.   VTA. 
  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  authority   VTA
 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  Legislature recognizes the formation of the
 Santa Clara  County Transit District may be formed as
provided in this chapter   Valley Transportation
Authority  and  when so formed   it 
may exercise the powers herein granted.
  SEC. 11.  Section 100031 of the Public Utilities Code is amended to
read:
   100031.  The  district   territory of the VTA
 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.

   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. 
  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  district   VTA  may establish any
transit service or system  which   that 
may at any time divert, lessen, or compete for the patronage or
revenues of any existing system, the  district  
VTA  shall give a written notice to the public utility 
which   that  is operating the existing system.
The written notice shall describe the transit service or system which
the  district   VTA  proposes to establish
and shall state the time  within which the district proposes
to establish such service or system.   that the VTA
proposes to establish that service or system. 
  SEC. 15.  Section 100055.1 of the Public Utilities Code is amended
to read:
   100055.1.  The  district   VTA  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  district   VTA 
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  district   VTA  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  DISTRICT   VTA



  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  Supervisors  
Directors 


  SEC. 20.  Section 100060 of the Public Utilities Code is amended to
read:
   100060.  (a) The government of the  district 
 VTA  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  or the   mayor 
of the City of San Jose, appointed by the city council.
   (3) Five city council members  or mayors  selected from
among the city councils  and mayors  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 
members,   members or mayors,  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.  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.  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  authority
  power and obligations  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  County Transit
District   Valley Transportation Authority 
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 
district   territory of the VTA  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  Supervisors
  Directors 


  SEC. 25.  Section 100070 of the Public Utilities Code is amended to
read:
   100070.  The board of directors is the legislative body of the
 district   VTA  and shall determine all
questions of  district   VTA  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  district,   VTA,  the
manner of operation, and the means to finance them.
   (b) Adopt an annual budget for the  district 
 VTA  that provides for the compensation of its officers and
employees.
   (c) Fix rates, rentals, charges and classifications of transit
service operated by the  district.   VTA. 
   (d) Adopt an administrative code that prescribes the powers and
duties of  district   VTA  officers, the
method of appointment of  district   VTA 
employees, and the methods, procedures, and systems for the operation
and management of the  district.   VTA. 
   (e) Adopt rules and regulations governing the use of transit
facilities owned or operated by the  district. 
VTA. 
   (f) Cause a postaudit of the financial transactions and records of
the  district   VTA  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  district   VTA
 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  district   VTA
 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.   Executive Officer   General
Manager 


  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  district
  VTA  and to be responsible to the board of
directors for the proper administration of all affairs of the
 district.   VTA. 
   (b) To appoint, supervise, suspend or remove,  district
  VTA  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
and other transportation  facilities within the 
district   territory of the VTA  and the means to
finance them.
   (e) To supervise the planning, acquisition, construction, 
maintenance   maintenance,  and operation of the
transit facilities of the  district.   VTA and
other transp   ortation facilities within the territory of
the VTA, as needed. 
   (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  district  
VTA  for the preceding year.
   (h) To perform  such  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  DISTRICT 
 VTA 


  SEC. 32.  Section 100110 of the Public Utilities Code is amended to
read:
   100110.  The  district   VTA 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  district   VTA  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 
district  VTA  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.   (a)    The  district 
 VTA  shall not levy any tax unless  a majority of
  approved by  the electors voting on the measure
 vote to authorize the levy of the tax   in
accordance with Article XIII     C of the
California Constitution  at a special election called for that
purpose by the board of  supervisors.  
directors.  
   Whenever 
    (b)     Whenever  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  such   those  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  such
  the  taxes shall not be repealed until all bonds
payable from the revenues derived from  such  
the  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, 
district   VTA  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  district   VTA  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  a district   an entity
 of the type provided for in this part, but the 
district   VTA  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  authority   VTA  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  authority  
VTA  and the entity that imposes the tax have entered into an
agreement that so provides. The  authority   VTA
 may exercise those powers necessary to carry out this purpose.

   (b) The  authority   VTA  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  other
 transportation facilities.
   (c) The  authority   VTA  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 
authority   VTA  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  district   VTA  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  district   VTA  may
contract with any department or agency of the United States of
America, with any public agency or with any person upon  such
 terms and conditions as the board finds is for the best
interest of the  district.   VTA. 
  SEC. 41.  Section 100124 of the Public Utilities Code is amended to
read:
   100124.  The  district   VTA  may insure
against any accident or destruction of the system or any part
thereof. The  district   VTA  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  such   an  amount
and of  such   a  character as may be
specified and for the payment of premiums thereon. The 
district   VTA  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  district   VTA  may
contract for the services of independent contractors.
  SEC. 43.  Section 100126 of the Public Utilities Code is amended to
read:
   100126.  The  district,   Santa Clara County
Transit District,  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  district   VTA 
shall become the successor to certain county contracts as provided by
agreement between the county and the  district. 
 VTA. 
  SEC. 44.  Section 100130 of the Public Utilities Code is amended to
read:
   100130.  The  district   VTA  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 
district   territory of the VTA  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  district   territory of
the VTA  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  district   VTA  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  district   territory of the VTA
 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.   (a)    The  district 
 VTA  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  district,   VTA,
 in exercising  such   this  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  which is 
 that are  required to be moved to a new location. 
   No 
    (b)     No  taking or acquisition by
the  district which   VTA that  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  such
  that  property and that  such 
 the  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  district.  
VTA.  The  district   VTA  may
commence and maintain  such   the  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  district   VTA  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,  highway  
highways,  or other crossings over any public or private lands.
  SEC. 49.  Section 100160 of the Public Utilities Code is amended to
read:
   100160.  The  district   VTA  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  authority   VTA  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  district   VTA  may
operate charter bus service subject to the following limitations:
   (a) No bus equipment  which   that  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 
which   that  shall not be less than the average
for the three largest private charter-party carriers operating
similar service in the  district.   territory of
the VTA. 
   (c) Charter service shall originate and terminate within the area
served by the  district   VTA  unless a
private charter-party carrier requests the  district
  VTA  to provide service beyond the area served by
the  district.   VTA. 
  SEC. 52.  Section 100161 of the Public Utilities Code is amended to
read:
   100161.  (a) The  authority   VTA  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  authority, 
 territory of the VTA,  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  authority   VTA  may
acquire any interest in or rights to use or the joint use of any or
all of those facilities.
   (b) The  authority   VTA  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  boundaries of
the authority,   territory of the VTA, 
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  authority
  VTA 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)  Authority   VTA  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  authority   VTA  shall not use
any state transportation funds, including, but not limited to,
 money   moneys  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  district   VTA  may lease
or contract for the use of its transit facilities, or any portion
thereof, to any operator, and may provide for subleases by 
such   an  operator upon  such 
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
 district.   VTA. 
  SEC. 55.  Section 100164 of the Public Utilities Code is amended to
read:
   100164.  (a) The  authority   VTA  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, 
bay   bay,  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  authority
  VTA  may provide funding for the repair and
maintenance of state highways within the  boundaries of the
authority.   territory of the VTA. 
   (2) The  authority   VTA  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  district   VTA  may enter
into agreements for the joint use of any property and rights by the
 district   VTA  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
 district,   territory of the VTA,  for the
joint use of any property of the  district  
VTA or of  such   the  public agency
or public utility, or the establishment of through routes, joint
fares, transfer of  passengers   passengers,
 or pooling arrangements.
  SEC. 57.  Section 100167 of the Public Utilities Code is amended to
read:
   100167.  The  district   VTA  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  district   VTA  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
 such  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  district   VTA  and any
one or more school districts located within its  boundaries
  territory  may enter into agreements pursuant to
which school transportation equipment may be used for transit
purposes within the  district's boundaries   VTA'
s territory  during any time that  such  
the  equipment is not actually required for school purposes.
  SEC. 60.  Section 100170 of the Public Utilities Code is amended to
read:
   100170.  The  authority   VTA  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  authority   VTA  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, 
maintenance   maintenance,  and operation of any
transit or transportation facilities. The  authority
  VTA  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  district   VTA  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  district   VTA  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  district   VTA  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  district   VTA  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  such   that
 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
 district   VTA  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,  hours   hours, 
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  district   VTA  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 district   VTA  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  district   VTA  and the accredited
representatives of the employees fail to reach agreement either on
the terms of a written contract governing wages, hours, 
pensions   pensions,  and working conditions or the
interpretation or application of the terms of an existing contract,
upon the agreement of both the  district   VTA
 and the representatives of the employees, the dispute may be
submitted to an arbitration board and the decision of the majority of
 such   the  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  agree  
agree,  the names of five persons experienced in labor
arbitration shall be obtained from the State Conciliation Service.
The labor organization and the  district   VTA
 shall, alternately, strike a name from the list so supplied,
and the name remaining after the labor organization and the 
district   VTA  have stricken four names, shall be
designated as the fifth arbitrator and chairman of the board of
arbitration. The labor organization and the  district
  VTA  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.

   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. 
  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
 district.  VTA. 
   (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  district,  
VTA,  shall transfer to the  district,  
VTA,  and the  district   VTA  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  district.   VTA. 
  SEC. 72.  Section 100309 of the Public Utilities Code is repealed.

   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.

  SEC. 73.  Section 100350 of the Public Utilities Code is amended to
read:
   100350.   (a)    Whenever the  district
  VTA 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  such   the  public
utility whose duties pertain to the facilities acquired who have
been employed by said utility for at least  seventy-five (75)
  75  days shall be appointed to comparable
positions in the  district   VTA  without
examination and these employees shall be given sick leave, 
seniority   seniority,  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,  vacation  
vacation,  or other benefits by reason of the acquisition.

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

   The 
    (c)     The  provisions of this
section  shall  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  district   VTA 
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,
 obligations   obligations,  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  which   that  are provided shall
be specified in the agreement or order by which any public utility is
acquired by the  district.   VTA. 
  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  district   VTA
 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  district   VTA  in a
bargaining unit represented by a labor organization shall be pursuant
to a collective bargaining agreement between the labor organization
and the  district.   VTA.  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  such   that
 system  provided that   if  no
employees of the  district   VTA  in a
bargaining unit  which   that  is
represented by a labor organization  shall be  
are  included in  such   the  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  such   the  acquired
public utility may become members or receive pensions under a pension
plan established by the  district   VTA 
by mutual agreement of  such   the  persons
and the  district. Such   VTA. The 
agreement may provide for the waiver of all rights, privileges,
 benefits   benefits,  and status with
respect to the pension plan of  such   the 
acquired public utility.
  SEC. 78.  Section 100380 of the Public Utilities Code is amended to
read:
   100380.  The  district   VTA  shall take
 such   the  steps as may be necessary to
obtain coverage for the  district   VTA 
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  district   VTA shall take
 such   the  steps as may be necessary to
obtain coverage for the  district   VTA 
and its employees under the workers' compensation, unemployment
compensation  disability   disability,  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 
district   VTA  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 
district,   VTA,  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  district  
territory of the VTA  for the purpose of submitting to the
qualified voters thereof the proposition of incurring indebtedness by
the issuance of bonds of the district, provided 
 VTA, if  the total amount of bonds issued and outstanding
pursuant to this article  shall   do  not
exceed 15 percent of the assessed value of the taxable property of
the  district   VTA  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  5 of this part,   5,
 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  district.   territory of the VTA.  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  such
  a  time or times as it deems proper, issue bonds
of the  district   VTA  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 
such  amounts as the necessity thereof may appear, until the
full amount of  such   the  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  such  
the  resolution or resolutions, the board shall prescribe the
form of the  bonds (including,   bonds,
including,  without limitation, registered bonds and coupon
 bonds)   bonds,  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  such  times and prices and upon
 such  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
 district   VTA  or at  such
  another  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  such   the 
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 
district   VTA  attached. The interest coupons of
 such   the  bonds shall be signed by the
treasurer. All  such  signatures, countersignatures,
and seal may be printed, lithographed, or mechanically reproduced,
except that one of  such   the  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  such   an  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  incurred (which 
 incurred, which  purposes shall be in conformity with an
approved general transit plan or element thereof then in 
effect); provided, however, that when such   effect.
When those  purposes have been accomplished any moneys remaining
in  such   the  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  district
  VTA  from time to time in the open market at
 such  prices and in  such   a
 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  district   territory
of the VTA  for the purpose of submitting to the qualified
voters thereof the proposition of incurring indebtedness by the
issuance of  such   the  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
 district   VTA  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  such  outstanding bonds, the interest
thereon, and the premiums, if any, due upon call and redemption
thereof prior to maturity and all expenses of  such 
 the  refunding. The provisions of this article for
issuance and sale of bonds apply to the issuance and sale of 
such   the  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
 53500),   53500) of  Chapter  3,
  3 of  Part  1,   1 of 
Division  2,   2 of  Title 5 of the
Government Code are applicable to the  district. 
 VTA. 
  SEC. 88.  Section 100450 of the Public Utilities Code is amended to
read:
   100450.  The  district   VTA  may issue
bonds, payable from revenue of any facility or enterprise to be
acquired or constructed by the  district,   VTA,
 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  district,   VTA,  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  such a   that  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  district   VTA  is a local
agency within the meaning of the Revenue Bond Law of  1941,
Chapter   1941 (Chapter  6 (commencing with Section
 54300),   54300) of  Part  1,
  1 of  Division 2,   2 of
 Title 5 of the Government  Code.   Code).
 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  district.   VTA.  The
 district   VTA  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  district   VTA  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
 such   those  transit facilities. Nothing
in this article shall prevent the  district  
VTA  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  district   VTA 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  such   the  purchase and leasing of
transit equipment and may dispose of  such  
the  equipment trust certificates upon  such 
terms and conditions as the board may deem appropriate. Payment for
 such   the  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  such 
certificates that are or will be legally available to the 
district.   VTA.  Title to  such 
 the  equipment shall not rest in the  district
  VTA  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  such 
 the  trustee to deliver the rolling equipment to one or
more designated officers of the  district   VTA
 and may authorize the  district   VTA
 to execute and deliver simultaneously therewith an installment
purchase agreement or a lease of the equipment to the 
district.   VTA. 
  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.  Such
  These  agreements, leases, and equipment trust
certificates shall be authorized by resolution of the 
district   VTA  and shall contain  such
 covenants, conditions, and provisions  which
  that may be deemed necessary or appropriate to
 insure   ensure  the payment of the
equipment trust certificates from legally available sources of funds
specified in  such   the  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 
district.   VTA. 
  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  district.   VTA. 
  SEC. 95.  Section 100471 of the Public Utilities Code is amended to
read:
   100471.  The provisions of Chapter 1 (commencing with Section
 99000),   99000) of  Part  11,
  11 of  Division 10 of the Public Utilities Code
are applicable to the  district.   VTA. 
  SEC. 96.  Section 100482 of the Public Utilities Code is amended to
read:
   100482.  The  district   VTA  may borrow
money in accordance with the provisions of Article 7 (commencing
with Section 53820), or of Article 7.6 (commencing with Section
 53850),   53850) of  Chapter  4,
  4 of  Part  1,  1 of 
Division  2,   2 of  Title 5 of the
Government Code.
  SEC. 97.  Section 100483 of the Public Utilities Code is amended to
read:
   100483.  The  district   VTA  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  such   the  original notes.
The notes may be paid from any moneys of the  district
  VTA  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 
district   VTA  in anticipation of which they were
issued. The notes shall not be issued in any amount in excess of the
aggregate amount of bonds  which   that 
the  district   VTA  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  which  
that  a resolution of the  district   VTA
 authorizing the issuance of bonds may contain.
  SEC. 98.  Section 100490 of the Public Utilities Code is amended to
read:
   100490.  The  district   VTA  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 
860),   860   ) of  Title  10,
  10 of  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  district   VTA  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 district  
VTA  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  district  
VTA  and the holders of  such   the 
bonds, equipment trust certificates, notes, or evidences of
indebtedness or liability and the provisions thereof shall be
enforceable against the  district,   VTA, 
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  district
  VTA  or the territory included within it from any
bonded or other debt or liability contracted by the 
district.   VTA.  Upon dissolution of the 
district   VTA  or upon withdrawal of territory
therefrom, the property formerly included within  the
district   it  or withdrawn therefrom shall
continue to be liable for the payment of all bonded and other
indebtedness or liabilities outstanding at the time of  such
  the  dissolution or withdrawal the same as if the
 district   VTA  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  such
  the  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  district
  VTA  shall be pledged, charged, assigned, and
have a lien thereon for the payment of  such  
the  bonds as long as they are outstanding, regardless of any
change in ownership, operation, or control of  such 
 the  revenue-producing improvements, works, facilities, or
property and it shall, in  such   the 
later event or events, be the duty of the successors or assigns to
continue to maintain and operate  such   the
 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  district   VTA  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  authority   VTA
 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  district.
  territory of the VTA.  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  authority,   VTA,  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  an authority  a
VTA  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  authority.   territory of
the VTA. 
   (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 
such a   the  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  authority,   VTA, 
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  authority. 
 VTA. 
   (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  authority   VTA  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  authority
  VTA  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  authority,   VTA,
 for the benefit district which the board has formed, or intends
to form, within a portion of the  authority.  
territory of the VTA. 

      (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  authority
  VTA  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  authority   VTA  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
authority's   VTA's  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.   (a)    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  authority   VTA
 issued for the benefit district or zone. Other revenues of the
 authority   VTA  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  authority 
 VTA  for the benefit of bondholders. 
   Special 
    (b)     Special  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.   (a)    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. 
   In 
    (b)     In  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  authority   VTA  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  authority
  VTA  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. 
   If 
    (c)     If  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.   (a)    All accrued interest and
premiums received on the sale of bonds issued by the 
authority   VTA  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. 
   When 
    (b)     When  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
 authority,   VTA,  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.   (a)    The board may provide for the
issuance, sale, or exchange of refunding bonds to redeem or retire
any bonds issued by the  authority   VTA 
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. 
   The 
    (b)     The  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  authority
  VTA  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  authority.   VTA. 
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
 authority. Provided, however, that any   VTA.
Any  proposed increases to a special benefit assessment 
may   shall  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  authority.   territory of
the VTA. 
  SEC. 115.  Section 100619 of the Public Utilities Code is amended
to read:
   100619.  Notwithstanding any other provision of this chapter, the
 authority   VTA  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.