Amended in Senate June 8, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2196

Introduced by Assembly Member Low

February 18, 2016

An act to amend begin insert Section 20301 of the Public Contract Code, and to amend end insert 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, begin delete 10025, end delete begin insert 100125, end insert 100126, 100130, 100130.5, 100131, 100132, 100133, begin insert 100153, 100155, end insert 100160, 100160.1, begin insert 100160.2, end insert 100160.5, 100161, 100162, 100163, 100164, 100165, 100167, 100168, 100169, 100170, 100171, begin insert 100250, end insert 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, begin insert 100600, end insert 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 amended, 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. begin insert The bill would also authorize the board of directors of the VTA to include mayors of cities within the county, as specified. end insert

begin delete

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

end delete begin insert

  Existing law requires contracts of the Santa Clara Valley Transportation Authority for the purchase of supplies, equipment, and materials to be let to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000 and requires the authority to obtain a minimum of 3 quotations for those contracts between $2,500 and $100,000.

end insert begin insert

This bill would instead impose those bidding requirements with respect to the authority’s contracts for the purchase of supplies, equipment, and materials if the amount of the contract exceeds $150,000 and would require a minimum of 3 quotations for those contracts between $3,500 and $150,000.

end insert

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 20301 of the end insert begin insert Public Contract Code end insert begin insert is
amended to read: end insert

20301.  

(a) The purchase of all supplies, equipment, and
materials, when the expenditure required exceeds one hundred
begin insert fifty end insert thousand dollars begin delete ($100,000), end delete begin insert ($150,000), end insert shall be by contract
let to the lowest responsible bidder, or, in the authority’s discretion,
to the responsible bidder who submitted a proposal that provides
the best value to the authority on the basis of the factors identified
in the solicitation. “Best value” means the overall combination of
quality, price, and other elements of a proposal that, when
considered together, provide the greatest overall benefit in response
to the requirements described in the solicitation documents.

(b) To the extent practicable, the authority shall obtain a
minimum of three quotations, either written or oral, that permit
prices and terms to be compared whenever the expected
expenditure required for the purchase of supplies, equipment, or
materials exceeds begin delete two end delete begin insert three end insert thousand five hundred dollars begin delete ($2,500), end delete
begin insert ($3,500), end insert but does not exceed one hundred begin insert fifty end insert thousand dollars

begin delete ($100,000). end delete begin insert ($150,000). end insert

(c) Notice requesting bids shall be published at least once in a
newspaper of general circulation and on the authority’s
procurement Internet Web site, which publication shall be made
at least 10 days before the bids are received. The board may reject
any and all bids and readvertise at its discretion.

(d) This section applies solely to the procurement of supplies,
equipment, and materials, and shall not apply to construction
contracts.

begin delete SECTION 1. end delete

begin insert SEC. 2. end insert   

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 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 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 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.

begin delete SEC. 2. end delete

begin insert SEC. 3. end insert   

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

100011.  

“VTA” means the Santa Clara Valley Transportation
Authority.

begin delete SEC. 3. end delete

begin insert SEC. 4. end insert   

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, or interests owned
or to be acquired by the VTA for transit service or purposes.

begin delete SEC. 4. end delete

begin insert SEC. 5. end insert   

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

100014.  

“Board of directors” and “board” means the board of
directors of the VTA.

begin delete SEC. 5. end delete

begin insert SEC. 6. end insert   

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 VTA.

begin delete SEC. 6. end delete

begin insert SEC. 7. end insert   

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 VTA for transit
purposes.

begin delete SEC. 7. end delete

begin insert SEC. 8. end insert   

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

100018.  

“Revenues” means all rates, fares, tolls, begin delete rentals end delete begin insert rentals, end insert
or other income and revenue actually received or receivable by or
for the account of the 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, begin delete operated end delete begin insert operated, end insert or at any time
maintained by the VTA.

begin delete SEC. 8. end delete

begin insert SEC. 9. end insert   

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
VTA.

begin delete SEC. 9. end delete

begin insert SEC. 10. end insert   

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 VTA to facilitate the passage of
vehicles or pedestrians exclusive of transit works and transit
facilities.

begin delete SEC. 10. end delete

begin insert SEC. 11. end insert   

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

100030.  

The Legislature recognizes the formation of the Santa
Clara Valley Transportation Authority and it may exercise the
powers herein granted.

begin delete SEC. 11. end delete

begin insert SEC. 12. end insert   

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

100031.  

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

begin delete SEC. 12. end delete

begin insert SEC. 13. end insert   

Section 100032 of the Public Utilities Code is
repealed.

begin delete SEC. 13. end delete

begin insert SEC. 14. end insert   

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

begin delete SEC. 14. end delete

begin insert SEC. 15. end insert   

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

100055.  

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

begin delete SEC. 15. end delete

begin insert SEC. 16. end insert   

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

100055.1.  

The 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.

begin delete SEC. 16. end delete

begin insert SEC. 17. end insert   

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 VTA commences negotiations for the
purchase of the existing system, or the portion of the existing
system, less depreciation, including wear, begin delete tear end delete begin insert tear, end insert and
obsolescence, if any.

begin delete SEC. 17. end delete

begin insert SEC. 18. end insert   

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

100055.3.  

The 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.

begin delete SEC. 18. end delete

begin insert SEC. 19. end insert   

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 VTA

 

begin delete SEC. 19. end delete

begin insert SEC. 20. end insert   

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 Directors

 

begin delete SEC. 20. end delete

begin insert SEC. 21. end insert   

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

100060.  

(a) The government of the 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 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.

begin delete SEC. 21. end delete

begin insert SEC. 22. end insert   

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. 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.

begin delete SEC. 22. end delete

begin insert SEC. 23. end insert   

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, begin delete and end delete begin insert and, end insert while so acting, shall have all of the power
and obligations of the chairperson.

begin delete SEC. 23. end delete

begin insert SEC. 24. end insert   

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 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 begin delete in the
territory end delete begin insert within the boundaries end insert 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.

begin delete SEC. 24. end delete

begin insert SEC. 25. end insert   

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 Directors

 

begin delete SEC. 25. end delete

begin insert SEC. 26. end insert   

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

100070.  

The board of directors is the legislative body of the
VTA and shall determine all questions of VTA policy.

begin delete SEC. 26. end delete

begin insert SEC. 27. end insert   

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 VTA, the manner of operation, and the means to finance
them.

(b) Adopt an annual budget for the VTA that provides for the
compensation of its officers and employees.

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

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

(e) Adopt rules and regulations governing the use of transit
facilities owned or operated by the VTA.

(f) Cause a postaudit of the financial transactions and records
of the 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.

begin delete SEC. 27. end delete

begin insert SEC. 28. end insert   

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 VTA policy and shall have
additional duties as provided by the board of directors.

begin delete SEC. 28. end delete

begin insert SEC. 29. end insert   

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

100090.  

The officers of the 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.

begin delete SEC. 29. end delete

begin insert SEC. 30. end insert   

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.  General Manager

 

begin delete SEC. 30. end delete

begin insert SEC. 31. end insert   

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

100100.  

The power and duties of the general manager begin delete are: end delete begin insert are
all of the following: end insert

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

(b) To appoint, supervise, begin delete suspend or remove, end delete begin insert suspend, or
remove end insert 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 begin delete territory end delete begin insert boundaries end insert of
the VTA and the means to finance them.

(e) To supervise the planning, acquisition, construction,
maintenance, and operation of the transit facilities of the VTA and
other transportation facilities within the begin delete territory end delete begin insert boundaries end insert 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 VTA for the preceding year.

(h) To perform other and additional duties as the board may
require.

begin delete SEC. 31. end delete

begin insert SEC. 32. end insert   

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 VTA

 

begin delete SEC. 32. end delete

begin insert SEC. 33. end insert   

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

100110.  

The VTA has perpetual succession and may adopt a
seal and alter it at its pleasure.

begin delete SEC. 33. end delete

begin insert SEC. 34. end insert   

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

100111.  

The 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.

begin delete SEC. 34. end delete

begin insert SEC. 35. end insert   

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

100112.  

All claims for money or damages against the 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.

begin delete SEC. 35. end delete

begin insert SEC. 36. end insert   

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

100113.  

(a) The VTA shall not levy any tax begin insert pursuant to
Section 100250 end insert unless approved by the electors voting on the
measure in accordance with Article XIII C of the California
Constitution at a special election called for that purpose by the
board of directors.

(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 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
the taxes shall not be repealed until all bonds payable from the
revenues derived from the taxes have been fully paid or provision
has been made for their payment in full.

begin delete SEC. 36. end delete

begin insert SEC. 37. end insert   

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

100114.  

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

begin delete SEC. 37. end delete

begin insert SEC. 38. end insert   

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

100115.  

The 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 an entity of the type
provided for in this part, but the VTA shall not exercise any power
contrary to an express provision of this part.

begin delete SEC. 38. end delete

begin insert SEC. 39. end insert   

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

100115.5.  

(a) The 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 VTA
and the entity that imposes the tax have entered into an agreement
that so provides. The VTA may exercise those powers necessary
to carry out this purpose.

(b) The 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 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 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.

begin delete SEC. 39. end delete

begin insert SEC. 40. end insert   

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

100120.  

The 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.

begin delete SEC. 40. end delete

begin insert SEC. 41. end insert   

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

100121.  

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

begin delete SEC. 41. end delete

begin insert SEC. 42. end insert   

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

100124.  

The VTA may insure against any accident or
destruction of the system or any part thereof. The 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 an amount and of a character as
may be specified and for the payment of premiums thereon. The
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.

begin delete SEC. 42. end delete

begin insert SEC. 43. end insert   

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

100125.  

The VTA may contract for the services of independent
contractors.

begin delete SEC. 43. end delete

begin insert SEC. 44. end insert   

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

100126.  

The 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 VTA
shall become the successor to certain county contracts as provided
by agreement between the county and the VTA.

begin delete SEC. 44. end delete

begin insert SEC. 45. end insert   

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

100130.  

The 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 begin delete territory end delete begin insert boundaries end insert 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 begin delete territory end delete begin insert boundaries end insert
of the VTA necessary to the full or convenient exercise of its
powers.

begin delete SEC. 45. end delete

begin insert SEC. 46. end insert   

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

100130.5.  

(a) The 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 begin delete territory end delete
begin insert boundaries end insert 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.

begin delete SEC. 46. end delete

begin insert SEC. 47. end insert   

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

100131.  

(a) The 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 VTA, in exercising 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 that are required to be moved
to a new location.

(b) No taking or acquisition by the 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 that property and that
the taking or acquisition will not unreasonably impair the ability
of the railroad corporation involved to provide safe, adequate,
economical, and efficient service.

begin delete SEC. 47. end delete

begin insert SEC. 48. end insert   

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 VTA. The VTA may
commence and maintain the eminent domain proceedings in the
Public Utilities Commission or the superior court at its option.

begin delete SEC. 48. end delete

begin insert SEC. 49. end insert   

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

100133.  

The 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, highways, or
other crossings over any public or private lands.

begin insert

begin insert SEC. 50. end insert   

end insert

begin insert Section 100153 of the end insert begin insert Public Utilities Code end insert begin insert is
amended to read: end insert

100153.  

(a) If a contract for CMGC services is entered into
pursuant to this article and includes preconstruction services by
the construction manager, the begin delete authority end delete begin insert VTA end insert shall enter into a
written contract with the construction manager for preconstruction
services, under which the begin delete authority end delete begin insert VTA end insert shall pay the construction
manager a fee for preconstruction services in an amount agreed
upon by the begin delete authority end delete begin insert VTA end insert and the construction manager. The
preconstruction services contract may include fees for services to
be performed during the contract begin delete period; provided, however, the
authority end delete begin insert period. The VTA end insert shall not request or obtain a fixed price
or a guaranteed maximum price for the construction contract from
the construction manager or enter into a construction contract with
the construction manager until after the begin delete authority end delete begin insert VTA end insert has entered
into a services contract. A preconstruction services contract shall
provide for the subsequent negotiation for construction of all or
any discrete phase or phases of the project and shall provide for
the begin delete authority end delete begin insert VTA end insert to own the design plans and other preconstruction
services work product.

(b) A contract for construction services begin delete will end delete begin insert shall end insert be awarded
after the plans have been sufficiently developed and either a fixed
price or a guaranteed maximum price has been successfully
negotiated. In the event that a fixed price or a guaranteed maximum
price is not negotiated, the begin delete authority end delete begin insert VTA end insert may award the contract
for construction services utilizing any other procurement method
authorized by law.

(c) The construction manager shall perform not less than 30
percent of the work covered by the fixed price or guaranteed
maximum price agreement reached. Work that is not performed
directly by the construction manager shall be bid to subcontractors
pursuant to Section 6955 of the Public Contracts Code.

begin insert

begin insert SEC. 51. end insert   

end insert

begin insert Section 100155 of the end insert begin insert Public Utilities Code end insert begin insert is
amended to read: end insert

100155.  

(a) Upon completion of a project using the CMGC
project delivery method, the begin delete authority end delete begin insert VTA end insert shall prepare a progress
report to the board of directors. The progress report shall include,
but shall not be limited to, all of the following information:

(1) A description of the project.

(2) The entity that was awarded the project.

(3) The estimated and actual costs of the project.

(4) The estimated and actual schedule for project completion.

(5) A description of any written protests concerning any aspect
of the solicitation, bid, proposal, or award of the project, including,
but not limited to, the resolution of the protests.

(6) An assessment of the prequalification process and criteria
utilized under this article.

(7) A description of the method used to evaluate the bid or
proposal, including the weighting of each factor and an assessment
of the impact of this requirement on a project.

(8) A description of any challenges or unexpected problems
that arose during the construction of the project and a description
of the solutions that were considered and ultimately implemented
to address those challenges and problems.

(9) Recommendations to improve the CMCG project delivery
method authorized under this article.

(b) The progress report shall be made available on the begin delete authority’s end delete
begin insert VTA’s end insert Internet Web site.

begin delete SEC. 49. end delete

begin insert SEC. 52. end insert   

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

100160.  

The VTA may provide transit service for the
transportation of passengers and their incidental baggage by any
means.

begin delete SEC. 50. end delete

begin insert SEC. 53. end insert   

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

100160.1.  

The 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.

begin insert

begin insert SEC. 54. end insert   

end insert

begin insert Section 100160.2 of the end insert begin insert Public Utilities Code end insert begin insert is
amended to read: end insert

100160.2.  

The begin delete authority end delete begin insert VTA end insert may enter into agreements with
any city within the begin delete territory end delete begin insert boundaries end insert of the begin delete authority end delete begin insert VTA end insert or
with the County of Santa Clara to improve a street, road, highway,
or expressway under the jurisdiction of the city or county. This
section does not apply to highways under the jurisdiction of the
state, unless specifically permitted elsewhere in statute.

begin delete SEC. 51. end delete

begin insert SEC. 55. end insert   

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

100160.5.  

The VTA may operate charter bus service subject
to the following limitations:

(a) No bus equipment 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 that
shall not be less than the average for the three largest private
charter-party carriers operating similar service begin delete in the territory end delete
begin insert within the boundaries end insert of the VTA.

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

begin delete SEC. 52. end delete

begin insert SEC. 56. end insert   

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

100161.  

(a) The 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 begin delete territory end delete begin insert boundaries end insert 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 VTA may acquire any interest in or rights to
use or the joint use of any or all of those facilities.

(b) The 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 begin delete territory end delete begin insert boundaries end insert 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 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) 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 VTA shall not use any state transportation funds,
including, but not limited to, 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.

begin delete SEC. 53. end delete

begin insert SEC. 57. end insert   

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

100162.  

The 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 an operator upon 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.

begin delete SEC. 54. end delete

begin insert SEC. 58. end insert   

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 VTA.

begin delete SEC. 55. end delete

begin insert SEC. 59. end insert   

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

100164.  

(a) The 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, 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 VTA may
provide funding for the repair and maintenance of state highways
within the begin delete territory end delete begin insert boundaries end insert of the VTA.

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

begin delete SEC. 56. end delete

begin insert SEC. 60. end insert   

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

100165.  

The VTA may enter into agreements for the joint use
of any property and rights by the 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 begin delete territory end delete
begin insert boundaries end insert of the VTA, for the joint use of any property of the
VTA or of the public agency or public utility, or the establishment
of through routes, joint fares, transfer of passengers, or pooling
arrangements.

begin delete SEC. 57. end delete

begin insert SEC. 61. end insert   

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

100167.  

The 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.

begin delete SEC. 58. end delete

begin insert SEC. 62. end insert   

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

100168.  

The 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 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.

begin delete SEC. 59. end delete

begin insert SEC. 63. end insert   

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

100169.  

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

begin delete SEC. 60. end delete

begin insert SEC. 64. end insert   

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

100170.  

The 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 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, begin delete maintenance end delete begin insert maintenance, end insert 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,
and operation of any transit or transportation facilities. The 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.

begin delete SEC. 61. end delete

begin insert SEC. 65. end insert   

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

100171.  

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

begin insert

begin insert SEC. 66. end insert   

end insert

begin insert Section 100250 of the end insert begin insert Public Utilities Code end insert begin insert is
amended to read: end insert

100250.  

A retail transactions and use tax ordinance may be
adopted by the board begin insert of directors end insert in accordance with the provisions
of Part 1.6 (commencing with Section 7251) of Division 2 of the
Revenue and Taxation Code, begin delete provided that two-thirds of end delete begin insert if end insert the
electors voting on the measure vote begin insert in accordance with Article
XIII end insert begin insert   end insert begin insert C of the California Constitution end insert to authorize its enactment
at a special election called for that purpose by the board begin insert of
directors end insert .

begin delete SEC. 62. end delete

begin insert SEC. 67. end insert   

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

100252.  

The 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.

begin delete SEC. 63. end delete

begin insert SEC. 68. end insert   

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 VTA shall contract with the State Board of
Equalization to perform all functions incident to the administration
and operation of the ordinance.

begin delete SEC. 64. end delete

begin insert SEC. 69. end insert   

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

100254.  

If the 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 that
case, the operative date shall be the first day of the first calendar
quarter following the execution of the contract.

begin delete SEC. 65. end delete

begin insert SEC. 70. end insert   

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

100302.  

Whenever a majority of the employees employed by
the 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, and working conditions.

begin delete SEC. 66. end delete

begin insert SEC. 71. end insert   

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 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.

begin delete SEC. 67. end delete

begin insert SEC. 72. end insert   

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

100304.  

If, after a reasonable period of time, representatives
of the VTA and the accredited representatives of the employees
fail to reach agreement 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,
either party may request mediation services of the State
Conciliation Service.

begin delete SEC. 68. end delete

begin insert SEC. 73. end insert   

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

100305.  

If, after a reasonable period of time, representatives
of the VTA and the accredited representatives of the employees
fail to reach agreement either 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,
upon the agreement of both the VTA and the representatives of
the employees, the dispute may be submitted to an arbitration board
and the decision of the majority of 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, the names of five
persons experienced in labor arbitration shall be obtained from the
State Conciliation Service. The labor organization and the VTA
shall, alternately, strike a name from the list so supplied, and the
name remaining after the labor organization and the VTA have
stricken four names, shall be designated as the fifth arbitrator and
chairman of the board of arbitration. The labor organization and
the 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.

begin delete SEC. 69. end delete

begin insert SEC. 74. end insert   

Section 100306 of the Public Utilities Code is
repealed.

begin delete SEC. 70. end delete

begin insert SEC. 75. end insert   

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 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.

begin delete SEC. 71. end delete

begin insert SEC. 76. end insert   

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 VTA, shall
transfer to the VTA, and the VTA shall assume liability for, all of
their accrued and unused vacation, sick leave, personal leave,
compensating time begin delete off and end delete begin insert off, end insert STO begin delete balances end delete begin insert balances, end insert 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 VTA.

begin delete SEC. 72. end delete

begin insert SEC. 77. end insert   

Section 100309 of the Public Utilities Code is
repealed.

begin delete SEC. 73. end delete

begin insert SEC. 78. end insert   

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

100350.  

(a) Whenever the 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 the public utility
whose duties pertain to the facilities acquired who have been
employed by said utility for at least 75 days shall be appointed to
comparable positions in the VTA without examination and these
employees shall be given sick leave, 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, or other benefits by reason
of the acquisition.

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

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

begin delete SEC. 74. end delete

begin insert SEC. 79. end insert   

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

100351.  

Whenever the 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, 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
that are provided shall be specified in the agreement or order by
which any public utility is acquired by the VTA.

begin delete SEC. 75. end delete

begin insert SEC. 80. end insert   

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 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
VTA in a bargaining unit represented by a labor organization shall
be pursuant to a collective bargaining agreement between the labor
organization and the VTA. For purposes of this section, “officers”
does not include members of the board of directors.

begin delete SEC. 76. end delete

begin insert SEC. 81. end insert   

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 that system if no
employees of the VTA in a bargaining unit that is represented by
a labor organization are included in the contract except as
authorized by a collective bargaining agreement.

begin delete SEC. 77. end delete

begin insert SEC. 82. end insert   

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 the acquired public utility may become
members or receive pensions under a pension plan established by
the VTA by mutual agreement of the persons and the VTA. The
agreement may provide for the waiver of all rights, privileges,
benefits, and status with respect to the pension plan of the acquired
public utility.

begin delete SEC. 78. end delete

begin insert SEC. 83. end insert   

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

100380.  

The VTA shall take the steps as may be necessary to
obtain coverage for the 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.

begin delete SEC. 79. end delete

begin insert SEC. 84. end insert   

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

100381.  

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

begin delete SEC. 80. end delete

begin insert SEC. 85. end insert   

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

100400.  

Whenever the board deems it necessary for the 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 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 begin delete in the territory end delete begin insert within the boundaries end insert 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 VTA, if the total amount of bonds issued and outstanding
pursuant to this article do not exceed 15 percent of the assessed
value of the taxable property of the 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, 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.

begin delete SEC. 81. end delete

begin insert SEC. 86. end insert   

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
begin delete in the territory end delete begin insert within the boundaries end insert 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.

begin delete SEC. 82. end delete

begin insert SEC. 87. end insert   

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 a time or times as
it deems proper, issue bonds of the 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 amounts
as the necessity thereof may appear, until the full amount of 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 the
resolution or resolutions, the board shall prescribe the form of the
bonds, including, without limitation, registered bonds and coupon
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.

begin delete SEC. 83. end delete

begin insert SEC. 88. end insert   

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 times and prices and upon 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 VTA or at 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 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 VTA attached. The interest
coupons of the bonds shall be signed by the treasurer. All
signatures, countersignatures, and begin delete seal end delete begin insert the seal end insert may be printed,
lithographed, or mechanically reproduced, except that one of 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 an officer before the delivery of
the bonds, his signature is as effective as if he had remained in
office.

begin delete SEC. 84. end delete

begin insert SEC. 89. end insert   

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 purposes shall
be in conformity with an approved general transit plan or element
thereof then in effect. When those purposes have been
accomplished any moneys remaining in 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 VTA
from time to time in the open market at prices and in a manner,
either at public or private sale or otherwise, as the board may
determine. Bonds so purchased shall be canceled immediately.

begin delete SEC. 85. end delete

begin insert SEC. 90. end insert   

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 begin delete in the territory end delete begin insert within the boundaries end insert of
the VTA for the purpose of submitting to the qualified voters
thereof the proposition of incurring indebtedness by the issuance
of 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.

begin delete SEC. 86. end delete

begin insert SEC. 91. end insert   

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 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 outstanding
bonds, the interest thereon, and the premiums, if any, due upon
call and redemption thereof prior to maturity and all expenses of
the refunding. The provisions of this article for issuance and sale
of bonds apply to the issuance and sale of 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.

begin delete SEC. 87. end delete

begin insert SEC. 92. end insert   

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

100411.  

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

begin delete SEC. 88. end delete

begin insert SEC. 93. end insert   

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

100450.  

The VTA may issue bonds, payable from revenue of
any facility or enterprise to be acquired or constructed by the 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 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 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.

begin delete SEC. 89. end delete

begin insert SEC. 94. end insert   

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

100451.  

The VTA is a local agency within the meaning of 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).
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 VTA. The 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 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 those transit facilities. Nothing in this article shall
prevent the 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.

begin delete SEC. 90. end delete

begin insert SEC. 95. end insert   

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

100460.  

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

begin delete SEC. 91. end delete

begin insert SEC. 96. end insert   

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 the trustee to deliver
the rolling equipment to one or more designated officers of the
VTA and may authorize the VTA to execute and deliver
simultaneously therewith an installment purchase agreement or a
lease of the equipment to the VTA.

begin delete SEC. 92. end delete

begin insert SEC. 97. end insert   

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.
These agreements, leases, and equipment trust certificates shall
be authorized by resolution of the VTA and shall contain
covenants, conditions, and provisions that may be deemed
necessary or appropriate to ensure the payment of the equipment
trust certificates from legally available sources of funds specified
in the certificates.

begin delete SEC. 93. end delete

begin insert SEC. 98. end insert   

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 VTA.

begin delete SEC. 94. end delete

begin insert SEC. 99. end insert   

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

100470.  

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

begin delete SEC. 95. end delete

begin insert SEC. 100. end insert   

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

100471.  

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

begin delete SEC. 96. end delete

begin insert SEC. 101. end insert   

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

100482.  

The 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) of Chapter 4 of Part
1 of Division 2 of Title 5 of the Government Code.

begin delete SEC. 97. end delete

begin insert SEC. 102. end insert   

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

100483.  

The 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 the original
notes. The notes may be paid from any moneys of the 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 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 that the 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 that a resolution of the VTA
authorizing the issuance of bonds may contain.

begin delete SEC. 98. end delete

begin insert SEC. 103. end insert   

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

100490.  

The 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) of Title 10 of Part 2 of the Code
of Civil Procedure.

begin delete SEC. 99. end delete

begin insert SEC. 104. end insert   

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

100491.  

All bonds and other evidences of indebtedness issued
by the 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.

begin delete SEC. 100. end delete

begin insert SEC. 105. end insert   

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 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
VTA and the holders of the bonds, equipment trust certificates,
notes, or evidences of indebtedness or liability and the provisions
thereof shall be enforceable against the 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 VTA or the territory included within it from
any bonded or other debt or liability contracted by the VTA. Upon
dissolution of the VTA or upon withdrawal of territory therefrom,
the property formerly included within 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 the dissolution
or withdrawal the same as if the 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 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, begin delete operated end delete
begin insert operated, end insert or controlled by the VTA shall be pledged, charged,
assigned, and have a lien thereon for the payment of the bonds as
long as they are outstanding, regardless of any change in
ownership, operation, or control of the revenue-producing
improvements, works, facilities, or property and it shall, in the
later event or events, be the duty of the successors or assigns to
continue to maintain and operate the revenue-producing
improvements, works, facilities, or property as long as bonds are
outstanding.

begin delete SEC. 101. end delete

begin insert SEC. 106. end insert   

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

100500.  

The 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).

begin insert

begin insert SEC. 107. end insert   

end insert

begin insert Section 100600 of the end insert begin insert Public Utilities Code end insert begin insert is
amended to read: end insert

100600.  

The Legislature finds and declares that:

(a) It is necessary and in the best interest of the citizens of the
state to authorize the begin delete Santa Clara Valley Transportation Authority end delete
begin insert VTA end insert to levy special benefit assessments for needed public rail
rapid transit facilities and services on the property that benefits
from those facilities and services.

(b) The rail rapid transit facilities and services provide special
benefits to parcels of land, and improvements thereon, in the
vicinity of rail rapid transit stations, and provide general benefits
to the community at large. The Board of Directors of the begin delete Santa
Clara Valley Transportation Authority end delete begin insert VTA end insert shall be the conclusive
judge of the proportion of special and general benefits produced
by the facilities and of the distribution of the special benefits among
parcels of property within the benefit assessment district.

begin delete SEC. 102. end delete

begin insert SEC. 108. end insert   

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 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 begin delete territory end delete begin insert boundaries end insert 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.

begin delete SEC. 103. end delete

begin insert SEC. 109. end insert   

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 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.

begin delete SEC. 104. end delete

begin insert SEC. 110. end insert   

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 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 begin delete territory end delete begin insert boundaries end insert
of the VTA.

(c) The begin delete authority end delete begin insert VTA end insert 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 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 VTA,
including, but not limited to, transit, transportation, or operating
expense.

begin delete SEC. 105. end delete

begin insert SEC. 111. end insert   

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 VTA.

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

begin delete SEC. 106. end delete

begin insert SEC. 112. end insert   

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 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 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.

begin delete SEC. 107. end delete

begin insert SEC. 113. end insert   

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 VTA, for the benefit district which the
board has formed, or intends to form, within a portion of the
begin delete territory end delete begin insert boundaries end insert 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 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 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 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.

begin delete SEC. 108. end delete

begin insert SEC. 114. end insert   

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 VTA issued for the benefit district or zone. Other
revenues of the 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 VTA for the benefit of bondholders.

(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.

begin delete SEC. 109. end delete

begin insert SEC. 115. end insert   

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.

(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 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 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.

(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.

begin delete SEC. 110. end delete

begin insert SEC. 116. end insert   

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 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.

(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 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.

begin delete SEC. 111. end delete

begin insert SEC. 117. end insert   

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 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.

(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.

begin delete SEC. 112. end delete

begin insert SEC. 118. end insert   

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 begin insert of the benefit district or
zones end insert to include any territory which will not, in its judgment, be
benefited by the VTA action.

begin delete SEC. 113. end delete

begin insert SEC. 119. end insert   

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 begin insert of the benefit district or zones end insert proposed to be changed
are set forth on a map on file with the secretary of the 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 VTA.
Any proposed increases to a special benefit assessment shall not
be made unless all notice, protest, and hearing procedures set forth
in Section 53753 of the Government Code have been followed.

begin delete SEC. 114. end delete

begin insert SEC. 120. end insert   

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 territory end delete begin insert boundaries end insert of the VTA.

begin delete SEC. 115. end delete

begin insert SEC. 121. end insert   

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

100619.  

Notwithstanding any other provision of this chapter,
the 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.