Senate Bill No. 892

Introduced by Senator Leyva

January 20, 2016

An act to amend Sections 130102, 130108, 190000, 190001, 190003, 190005, 190100, 190101, 190103, 190300, 190302, 190303, 190304, 190305, 190306, 190307, 190307.5, 190308, 190309, 190310, 190311, 190312, 190313, 190314, 190315, 190316, 190318, 190319, 190320, 190321, 190322, and 190323 of, to amend the heading of Division 20 (commencing with Section 190000) of, to amend and renumber Sections 190102, 190200, 190201, and 190202 of, to add the headings of Article 1 (commencing with Section 190000), Article 2 (commencing with 190100), and Article 3 (commencing with 190300) to Chapter 1 of Division 20 of, to add Chapter 2 (commencing with Section 190500) to Division 20 of, to repeal Sections 130054 and 130102.5 of, to repeal the headings of Chapter 2 (commencing with Section 190100), Chapter 3 (commencing with Section 190200), and Chapter 4 (commencing with Section 190300) of Division 20 of, and to repeal and add the heading of Chapter 1 (commencing with Section 190000) of Division 20 of, the Public Utilities Code, and to amend Section 149.11 of the Streets and Highways Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

SB 892, as introduced, Leyva. Transportation: San Bernardino County Transportation Authority.

Existing law authorizes a county board of supervisors to create or otherwise designate local agencies, including a transportation authority that may impose a transportation sales tax subject to voter approval, a service authority for freeway emergencies, and a transportation congestion management agency, as specified.

The Joint Exercise of Powers Act authorizes the legislative or other governing bodies of 2 or more public agencies to jointly exercise, by agreement, any power common to the contracting parties, as specified.

The County Transportation Commissions Act provides for the creation of county transportation commissions in the Counties of Los Angeles, Orange, Riverside, San Bernardino, and Ventura, with various powers and duties relative to transportation planning and funding, as specified.

This bill would create the San Bernardino County Transportation Authority as the successor agency to the powers, duties, revenues, debts, obligations, liabilities, immunities, and exemptions of the San Bernardino County Transportation Commission and San Bernardino County local transportation authority, service authority for freeway emergencies, and local congestion management agency, and of the San Bernardino Associated Governments, when it was acting on behalf, or in the capacity, of those agencies.

By imposing new duties on local government associated with this consolidation, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

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

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

SECTION 1.  

It is the intent of the Legislature that the San
Bernardino County Transportation Authority be a unified and
comprehensive institutional structure that combines the
transportation-related functions and authorities of the San
Bernardino County Transportation Commission and San
Bernardino County transportation authority, service authority for
freeway emergencies, and congestion management agency, which
are currently exercised by the San Bernardino Associated
Governments joint powers authority by statute or by designation
of the San Bernardino County Board of Supervisors. It is the intent
of the Legislature that this act vest responsibility and liability for
transportation-related functions in the County of San Bernardino
in a single entity, promote administrative efficiency, enhance public
transparency, and ensure maximum accountability to the people,
as provided in this act.

SEC. 2.  

Section 130054 of the Public Utilities Code is repealed.

begin delete

130054.  

The San Bernardino County Transportation
Commission shall be the San Bernardino Associated Governments,
consisting of the following members:

(a) Five members of the San Bernardino County Board of
Supervisors.

(b) The Mayor of the City of San Bernardino.

(c) One member from each of the other incorporated cities of
San Bernardino County, who shall be a mayor or a city councilman.

(d) One nonvoting member appointed by the Governor.

end delete

SEC. 3.  

Section 130102 of the Public Utilities Code is amended
to read:

130102.  

A majority of the members of the commission shall
constitute a quorum for the transaction of business, and all official
acts of the begin delete commission, except as otherwise provided in Section
130102.5, end delete begin insert commission end insert shall require the affirmative vote of a
majority of the members of the commission.

SEC. 4.  

Section 130102.5 of the Public Utilities Code is
repealed.

begin delete

130102.5.  

In the case of the San Bernardino County
Transportation Commission, its official acts shall require the
affirmative vote of a majority of the members representing the
cities and a majority of the members of the board of supervisors
if this is requested by either a majority of the members representing
the cities or a majority of the members of the board of supervisors.

end delete

SEC. 5.  

Section 130108 of the Public Utilities Code is amended
to read:

130108.  

(a) Each member of a commission may be
compensated at a rate not exceeding one hundred dollars ($100)
for any day attending to the business of the commission, but not
to exceed four hundred dollars ($400) in any month, and the
necessary traveling and personal expenses incurred in the
performance of his duties as authorized by the commission.
begin insert Members of the San Bernardino County Transportation Authority
shall be compensated pursuant to this subdivision. end insert Members of
the Los Angeles County Metropolitan Transportation Authority
shall be compensated pursuant to subdivision (b).

(b) Each member of the Los Angeles County Metropolitan
Transportation Authority shall be compensated at a rate not
exceeding one hundred and fifty dollars ($150) for any day
attending to the business of the authority, but not to exceed six
hundred dollars ($600) per month, and other expenses which are
directly related to the performance of duties as authorized by the
authority.

SEC. 6.  

The heading of Division 20 (commencing with Section
190000) of the Public Utilities Code is amended to read:

 

Division 20.  SAN BERNARDINO COUNTY
TRANSPORTATION begin delete COMMISSION end delete begin insert AUTHORITY end insert

 

SEC. 7.  

The heading of Chapter 1 (commencing with Section
190000) of Division 20 of the Public Utilities Code is repealed.

begin delete

 

Chapter  1. General Provisions, Findings, and Definitions

 

end delete

SEC. 8.  

The heading of Chapter 1 (commencing with Section
190000) is added to Division 20 of the Public Utilities Code, to
read:

 

Chapter  1. San Bernardino County Transportation
Sales Tax Act

 

SEC. 9.  

The heading of Article 1 (commencing with Section
190000) is added to Chapter 1 of Division 20 of the Public Utilities
Code, to read:

 

Article 1.  General Provisions, Findings, and Definitions

 

SEC. 10.  

Section 190000 of the Public Utilities Code is
amended to read:

190000.  

begin delete The division end delete begin insert This chapter end insert shall be known and may be
cited as the San Bernardino County Transportation Sales Tax Act.

SEC. 11.  

Section 190001 of the Public Utilities Code is
amended to read:

190001.  

The Legislature hereby finds and declares all of the
following:

(a) Recognizing the scarcity of resources available for all
transportation development, alternative methods of financing
provided in this begin delete division end delete begin insert chapter end insert are needed to finance the cost of
constructing, developing, acquiring, and maintaining and providing
highways, streets, roads, and public transportation services in the
County of San Bernardino and these methods will increase
economic opportunities, contribute to economic development, be
in the public interest and serve a public purpose, and promote the
health, safety, and welfare of the citizens within the County of San
Bernardino.

(b) It is the intent of the Legislature, in enacting this begin delete division, end delete
begin insert chapter end insert that the County of San Bernardino continue to receive its
equitable share of funds under the state transportation improvement
program and that incentives be provided to reward rather than to
penalize counties that adopt local sales tax measures.

(c) It is in the public interest to allow the voters of San
Bernardino County to adopt a specific revenue source and to
authorize new duties for the San Bernardino County Transportation
begin delete Commission end delete begin insert Authority end insert so that local decisions can be implemented
in a timely manner to provide improvements to the transportation
system.

SEC. 12.  

Section 190003 of the Public Utilities Code is
amended to read:

190003.  

begin delete “Commission” end delete begin insert “Authority end insert begin insert ” end insert means the San Bernardino
County Transportation begin delete Commission end delete begin insert Authority end insert created pursuant to
Section begin delete 130054. end delete begin insert 190505. end insert

SEC. 13.  

Section 190005 of the Public Utilities Code is
amended to read:

190005.  

“San Bernardino Associated Governments” means
the joint powers agency established pursuant to Chapter 5
(commencing with Section 6500) of Division 7 of Title 1 of the
Government Code. Any board, commission, department, or officer
succeeding to the functions of the association is granted the powers
and duties of the association under this begin delete division. end delete begin insert chapter. end insert

SEC. 14.  

The heading of Chapter 2 (commencing with Section
190100) of Division 20 of the Public Utilities Code is repealed.

begin delete

 

Chapter  2. Administration

 

end delete

SEC. 15.  

The heading of Article 2 (commencing with Section
190100) is added to Chapter 1 of Division 20 of the Public Utilities
Code, to read:

 

Article 2.  Administration

 

SEC. 16.  

Section 190100 of the Public Utilities Code is
amended to read:

190100.  

The begin delete commission end delete begin insert authority end insert shall expend only that
amount of the funds generated pursuant to this begin delete division end delete begin insert chapter end insert
for staff support, audit, administrative expenses, and contract
services that are necessary and reasonable to carry out its
responsibilities pursuant to this begin delete division, end delete begin insert chapter, end insert and in no case
shall the funds begin insert generated pursuant to this chapter be end insert expended
for salaries and benefits begin delete exceed end delete begin insert in excess of end insert 1 percent of the annual
amount of revenue raised by the tax.

SEC. 17.  

Section 190101 of the Public Utilities Code is
amended to read:

190101.  

The begin delete commission end delete begin insert authority end insert shall do all of the following
with respect to the revenues derived from the transactions and use
tax levied pursuant to begin delete Chapter 4 end delete begin insert Article 3 end insert (commencing with
Section 190300):

(a) Adopt an annual budget.

(b) Cause a postaudit of the financial transactions and records
of the begin delete commission end delete begin insert authority end insert and of all revenues expended pursuant
to this begin delete division end delete begin insert chapter end insert to be made at least annually by a certified
public accountant.

(c) Do any and all things necessary to carry out the purposes of
this begin delete division. end delete begin insert chapter. end insert

SEC. 18.  

Section 190102 of the Public Utilities Code is
amended and renumbered to read:

begin delete 190102. end delete
begin insert 190525. end insert   

(a) The begin delete commission end delete begin insert authority end insert shall publish, pursuant
to Section 6061 of the Government Code, notice of the time and
place of the public hearing for the adoption of the annual budget
not later than 15 days prior to the date of the hearing.

(b) The proposed annual budget shall be available for public
inspection at least 15 days prior to the hearing.

SEC. 19.  

Section 190103 of the Public Utilities Code is
amended to read:

190103.  

The begin delete commission end delete begin insert authority end insert may approve a transaction
and use tax ordinance and ballot proposition and call an election
in accordance with begin delete Chapter 4 end delete begin insert Article 3 end insert (commencing with Section
190300).

SEC. 20.  

The heading of Chapter 3 (commencing with Section
190200) of Division 20 of the Public Utilities Code is repealed.

begin delete

 

Chapter  3. Powers and Functions

 

end delete

SEC. 21.  

Section 190200 of the Public Utilities Code is
amended and renumbered to read:

begin delete 190200. end delete
begin insert 190526. end insert   

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

SEC. 22.  

Section 190201 of the Public Utilities Code is
amended and renumbered to read:

begin delete 190201. end delete
begin insert 190527. end insert   

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

SEC. 23.  

Section 190202 of the Public Utilities Code is
amended and renumbered to read:

begin delete 190202. end delete
begin insert 190528. end insert   

The begin delete commission end delete begin insert authority end insert may make contracts and
enter into stipulations of any nature whatsoever, including, but not
limited to, contracts and stipulations to indemnify and hold
harmless, to employ labor, and to do all acts necessary and
convenient for the full exercise of the powers granted in this
division.

SEC. 24.  

The heading of Chapter 4 (commencing with Section
190300) of Division 20 of the Public Utilities Code is repealed.

begin delete

 

Chapter  4. Transactions and Use Tax

 

end delete

SEC. 25.  

The heading of Article 3 (commencing with Section
190300) is added to Chapter 1 of Division 20 of the Public Utilities
Code, to read:

 

Article 3.  Transactions and Use Tax

 

SEC. 26.  

Section 190300 of the Public Utilities Code is
amended to read:

190300.  

The Legislature, by the enactment of this begin delete chapter, end delete
begin insert article, end insert intends the additional funds provided government agencies
by this begin delete chapter end delete begin insert article end insert to supplement existing local revenues being
used for transportation purposes. The government agencies shall
maintain their existing commitment of local funds for transportation
purposes pursuant to an ordinance adopted by the begin delete commission end delete
begin insert authority end insert to enforce this section.

The begin delete commission end delete begin insert authority end insert may levy a retail transactions and use
tax applicable in the incorporated and unincorporated territory of
the county in accordance with this begin delete chapter end delete begin insert article end insert and Part 1.6
(commencing with Section 7251) of Division 2 of the Revenue
and Taxation Code. The ordinance shall only become effective if
adopted by a two-thirds vote of the begin delete commission end delete begin insert authority end insert and
subsequently approved by two-thirds of the electors voting on the
measure at a special election called for the purpose by the board
of supervisors or at any regular election. The board of supervisors
shall call the election upon being requested to do so by a resolution
adopted by the begin delete commission, end delete begin insert authority, end insert but not otherwise. The
begin delete commission end delete begin insert authority end insert shall specify in the ordinance that not more
than 1 percent of the annual amount of revenues raised by the tax
may be used to fund the salaries and benefits of the staff of the
begin delete commission end delete begin insert authority end insert in administering the programs funded from
that tax. The ordinance shall take effect at the close of the polls
on the day of election at which the proposition is adopted. The
initial collection of the transactions and use tax shall take place in
accordance with Section 190304.

If the voters do not approve the ordinance, the board of
supervisors may, at any time thereafter, submit the same, or a
different, measure, if adopted by a two-thirds vote of the
begin delete commission, end delete begin insert authority, end insert to the voters in accordance with this
begin delete division. end delete begin insert chapter. end insert

SEC. 27.  

Section 190302 of the Public Utilities Code is
amended to read:

190302.  

(a) The begin delete commission, end delete begin insert authority end insert in the ordinance, shall
state the nature of the tax to be imposed, the tax rate or the
maximum tax rate, the purposes for which the revenue derived
from the tax will be used, and shall set a term during which the
tax will be imposed.

(b) The purposes for which the tax revenues may be used may
include, but are not limited to, the administration of this begin delete division, end delete
begin insert chapter, end insert including legal actions related thereto, the construction,
capital acquisition, maintenance, and operation of streets, roads,
and highways, including state highways. These purposes include
expenditures for the planning, environmental reviews, engineering
and design costs, and related right-of-way acquisition.

(c) The ordinance shall contain an expenditure plan begin delete which end delete begin insert that end insert
shall include the allocation of revenues for the purposes authorized
by this section and shall include, at a minimum, the following
provisions:

(1) The proportional distribution of the revenues among various
purposes.

(2) The specific projects to be funded under the state highway
and freeway portion. Following adoption of the ordinance by the
voters, the plan may only be amended, if required, by the following
process:

(A) Initiation of amendment by the begin delete commission, end delete begin insert authority, end insert
reciting findings of necessity.

(B) Approval by the board of supervisors.

(C) Approval by a majority of the cities constituting a majority
of the incorporated population.

(3) The formula for distribution of the city and the county
portion, which may be amended by voter approval.

(4) A requirement that the arterial portion be expended pursuant
to a five-year project list to be adopted by the begin delete commission, end delete
begin insert authority, end insert extended annually for one year, available for public
review, to be first adopted at least 30 days prior to the election
held pursuant to Section begin delete 190301. end delete begin insert 190300. end insert

(5) A requirement that the city and the county portions be
expended pursuant to a five-year project list to be adopted by a
resolution by each city and the board of supervisors, respectively,
extended annually for one year, available for public review, to be
first adopted at least 30 days prior to the election held pursuant to
Section begin delete 190301. end delete begin insert 190300. end insert

SEC. 28.  

Section 190303 of the Public Utilities Code is
amended to read:

190303.  

(a) The county shall conduct an election called by
the board of supervisors pursuant to Section begin delete 190301. end delete begin insert 190300. end insert

(b) The election shall be called and conducted in the same
manner as provided by law for the conduct of elections by a county.

SEC. 29.  

Section 190304 of the Public Utilities Code is
amended to read:

190304.  

(a) Any transactions and use tax ordinance adopted
pursuant to this begin delete chapter end delete begin insert article end insert shall be operative on the first day
of the first calendar quarter commencing more than 120 days after
adoption of the ordinance.

(b) Prior to the operative date of the ordinance, the begin delete commission end delete
begin insert authority end insert shall contract with the State Board of Equalization to
perform all functions incident to the administration and operation
of the ordinance.

SEC. 30.  

Section 190305 of the Public Utilities Code is
amended to read:

190305.  

The revenues from the taxes imposed pursuant to this
begin delete chapter end delete begin insert article end insert shall be allocated by the begin delete commission end delete begin insert authority end insert for
transportation purposes consistent with the adopted regional
transportation improvement program and the regional transportation
plan.

SEC. 31.  

Section 190306 of the Public Utilities Code is
amended to read:

190306.  

(a) The begin delete commission, end delete begin insert authority, end insert subject to the approval
of the voters, may impose a maximum tax rate of one-half of 1
percent under this begin delete division end delete begin insert chapter end insert and Part 1.6 (commencing with
Section 7251) of Division 2 of the Revenue and Taxation Code,
and the begin delete commission end delete begin insert authority end insert may state the maximum tax rate in
terms of not to exceed one-half of 1 percent, or any lesser
percentage thereof. Neither this begin delete division end delete begin insert chapter end insert nor the ordinance
shall affect any tax otherwise authorized.

(b) The tax rate adopted pursuant to this begin delete chapter, end delete begin insert article, end insert unless
otherwise prohibited, may be increased by the begin delete commission end delete
begin insert authority end insert by ordinance adopted in the manner and by the vote
stated in Section begin delete 190301 end delete begin insert 190300 end insert and approved by a majority of
the electors voting on the measure at an election called for that
purpose by the begin delete commission. end delete begin insert authority. end insert

SEC. 32.  

Section 190307 of the Public Utilities Code is
amended to read:

190307.  

The begin delete commission end delete begin insert authority end insert may reduce a tax rate to
percentages lower than that approved by the voters and may further
provide for an increase of the tax rate if it has previously been
lowered. However, the tax rate begin delete may end delete begin insert shall end insert not be increased to a rate
above the tax rate approved by the voters.

Any reduced tax rate may be adopted only if the begin delete commission end delete
begin insert authority end insert determines, by a two-thirds vote, that the proceeds of
the taxes with the altered tax rate will be sufficient to provide for
the payment of principal of, and interest on, any limited tax bonds
and any other indebtedness incurred by the begin delete commission end delete begin insert authority end insert
which was to be payable from the proceeds of the retail transactions
and use tax.

SEC. 33.  

Section 190307.5 of the Public Utilities Code is
amended to read:

190307.5.  

Any increase or reduction in the tax rate adopted
pursuant to Section 190306 or 190307 shall become effective on
the first day of the calendar quarter which commences at least 120
days following the date of the begin delete commission’s end delete begin insert authority’s end insert vote
approving the increased or reduced rate.

SEC. 34.  

Section 190308 of the Public Utilities Code is
amended to read:

190308.  

(a) If requested to do so by the begin delete commission end delete begin insert authority end insert
in its resolution calling for an election, the board of supervisors,
as part of the ballot proposition to approve the imposition of a
retail transactions and use tax, may seek authorization to issue
bonds for capital outlay expenditures as may be provided for in
the ordinance expenditure plan payable solely from the proceeds
of the tax.

(b) The maximum bonded indebtedness that may be outstanding
at any one time shall be an amount equal to the sum of the principal
of, and interest on, the bonds, but not to exceed the estimated
proceeds of the tax, as determined by the plan. The amount of
bonds outstanding at any one time does not include the amount of
bonds, refunding bonds, or bond anticipation notes for which funds
necessary for the payments thereof have been set aside for that
purpose in a trust or escrow account.

(c) The proposition shall set forth the actual percent of the tax.

(d) The proposition shall set forth the duration of the tax if the
plan specifies a time limit.

(e) The proposition shall set forth the amount of bonds, if any,
payable from the proceeds of the tax.

(f) The proposition shall set forth the begin delete commission end delete begin insert authority end insert as
the agency imposing the tax.

(g) The proposition shall set forth the appropriations limit of
the begin delete commission end delete begin insert authority end insert pursuant to Section 4 of Article XIII B
of the California Constitution.

(h) The sample ballot to be mailed to the voters, pursuant to
Section 13303 of the Elections Code, shall be the full proposition,
as set forth in the ordinance calling the election, and the voter
information handbook shall include the entire ordinance
expenditure plan.

SEC. 35.  

Section 190309 of the Public Utilities Code is
amended to read:

190309.  

(a) The bonds authorized by the voters concurrently
with the approval of the retail transactions and use tax may be
issued at any time by the begin delete commission end delete begin insert authority end insert and shall be
payable from the proceeds of the tax. The bonds shall be referred
to as “limited tax bonds.”

The bonds may be secured by a pledge of revenues from the
proceeds of the tax.

(b) The pledge of the tax to the limited tax bonds authorized
under this begin delete chapter end delete begin insert article end insert shall have priority over the use of any
of the tax for “pay-as-you-go” financing, except to the extent that
priority is expressly restricted in the resolution authorizing the
issuance of the bonds.

SEC. 36.  

Section 190310 of the Public Utilities Code is
amended to read:

190310.  

Limited tax bonds shall be issued pursuant to a
resolution adopted at any time by a two-thirds vote of the
begin delete commission. end delete begin insert authority. end insert Each resolution shall provide for the
issuance of bonds in the amounts as may be necessary, until the
full amount of bonds authorized have been issued. The full amount
of bonds may be divided into two or more series and different
dates of payment fixed for the bonds of each series. A bond need
not mature on its anniversary date.

SEC. 37.  

Section 190311 of the Public Utilities Code is
amended to read:

190311.  

(a) A resolution authorizing the issuance of bonds
shall state all of the following:

(1) 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.

(2) The estimated cost of accomplishing those purposes.

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

(4) The maximum term the bonds proposed to be issued shall
run before maturity, which shall not be beyond the date of
termination of the imposition of the retail transactions and use tax.

(5) The maximum rate of interest to be paid, which shall not
exceed the maximum allowable by law.

(6) The denomination or denominations of the bonds, which
shall not be less than five thousand dollars ($5,000).

(7) The form of the bonds, including, without limitation,
registered bonds and coupon bonds, to the extent permitted by
federal law, and the form of any coupons to be attached thereto,
the registration, conversion, and exchange privileges, if any,
pertaining thereto, and the time when all of, or any part of, the
principal becomes due and payable.

(b) The resolution may also contain any other matters authorized
by this begin delete chapter end delete begin insert article end insert or any other law.

SEC. 38.  

Section 190312 of the Public Utilities Code is
amended to read:

190312.  

The bonds shall bear interest at a rate or rates not
exceeding the maximum allowable by law, payable at intervals
determined by the begin delete commission, end delete begin insert authority, end insert 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
begin delete commission. end delete begin insert authority. end insert

SEC. 39.  

Section 190313 of the Public Utilities Code is
amended to read:

190313.  

In the resolution authorizing the issuance of the bonds,
the begin delete commission end delete begin insert authority end insert may also provide for the call and
redemption of the bonds prior to maturity at the times and prices
and upon other terms as specified. However, no bond is 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.

SEC. 40.  

Section 190314 of the Public Utilities Code is
amended to read:

190314.  

The principal of, and interest on, the bonds shall be
payable in lawful money of the United States at the office of the
treasurer of the begin delete commission, end delete begin insert authority, end insert or at other places as may
be designated, or at both the office and other places at the option
of the holders of the bonds.

SEC. 41.  

Section 190315 of the Public Utilities Code is
amended to read:

190315.  

The bonds, or each series thereof, shall be dated and
numbered consecutively and shall be signed by the chairperson or
vice chairperson of the begin delete commission end delete begin insert authority end insert and the
auditor-controller of the begin delete commission, end delete begin insert authority, end insert and the official
seal, if any, of the begin delete commission end delete begin insert authority end insert shall be attached.

The interest coupons of the bonds shall be signed by the
auditor-controller of the begin delete commission. end delete begin insert authority. end insert All of the
signatures and seal may be printed, lithographed, or mechanically
reproduced.

If any officer whose signature appears on the bonds or coupons
ceases to be that officer before the delivery of the bonds, the
officer’s signature is as effective as if the officer had remained in
office.

SEC. 42.  

Section 190316 of the Public Utilities Code is
amended to read:

190316.  

The bonds may be sold as the begin delete commission end delete begin insert authority end insert
determines by resolution, and the bonds may be sold at a price
below par, whether by negotiated or public sale.

SEC. 43.  

Section 190318 of the Public Utilities Code is
amended to read:

190318.  

All accrued interest and premiums received on the
sale of the bonds shall be placed in the fund to be used for the
payment of the principal of, and interest on, the bonds, and the
remainder of the proceeds of the bonds shall be placed in the
treasury of the begin delete commission end delete begin insert authority end insert and applied to secure the
bonds or for the purposes for which the debt was incurred.
However, when the purposes have been accomplished, any money
remaining shall be either (a) transferred to the fund to be used for
the payment of principal of, and interest on, the bonds or (b) placed
in a fund to be used for the purchase of the outstanding bonds in
the open market at prices and in the manner, either at public or
private sale or otherwise, as determined by the begin delete commission. end delete
begin insert authority. end insert Bonds so purchased shall be canceled immediately.

SEC. 44.  

Section 190319 of the Public Utilities Code is
amended to read:

190319.  

(a) The begin delete commission end delete begin insert authority end insert may provide for the
issuance, sale, or exchange of refunding bonds to redeem or retire
any bonds issued by the begin delete commission end delete begin insert authority end insert upon the terms, at
the times and in the manner which it determines.

(b) Refunding bonds may be issued in a principal amount
sufficient to pay all, or any part of, the principal of the outstanding
bonds, the premiums, if any, due upon call and redemption thereof
prior to maturity, all expenses of the refunding, and either of the
following:

(1) The interest upon the refunding bonds from the date of sale
thereof to the date of payment of the bonds to be refunded out of
the proceeds of the sale of the refunding bonds or to the date upon
which the bonds to be refunded will be paid pursuant to call or
agreement with the holders of the bonds.

(2) The interest upon the bonds to be refunded from the date of
sale of the refunding bonds to the date of payment of the bonds to
be refunded or to the date upon which the bonds to be refunded
will be paid pursuant to call or agreement with the holder of the
bonds.

(c) The provisions of this begin delete chapter end delete begin insert article end insert for the issuance and
sale of bonds apply to the issuance and sale of refunding bonds.

SEC. 45.  

Section 190320 of the Public Utilities Code is
amended to read:

190320.  

(a) The begin delete commission end delete begin insert authority end insert may borrow money in
anticipation of the sale of bonds which have been authorized
pursuant to this begin delete chapter, end delete begin insert article, end insert but which have not been sold or
delivered, and may issue negotiable bond anticipation notes
therefor and may renew the bond anticipation notes from time to
time. However, the maximum maturity of any bond anticipation
notes, including the renewals thereof, shall not exceed five years
from the date of delivery of the original bond anticipation notes.

(b) The bond anticipation notes, and the interest thereon, may
be paid from any money of the begin delete commission end delete begin insert authority end insert available
therefor, including the revenues from the tax. If not previously
otherwise paid, the bond anticipation notes, or any portion thereof,
or the interest thereon, shall be paid from the proceeds of the next
sale of the bonds of the begin delete commission end delete begin insert authority end insert in anticipation of
which the notes were issued.

(c) The bond anticipation notes shall not be issued in any amount
in excess of the aggregate amount of the bonds which the
begin delete commission end delete begin insert authority end insert has been authorized to issue, less the amount
of any bonds of the authorized issue previously sold, and also less
the amount of other bond anticipation notes therefor issued and
then outstanding. The bond anticipation notes shall be issued and
sold in the same manner as the bonds.

(d) The bond anticipation notes and the resolutions authorizing
them may contain any provisions, conditions, or limitations which
a resolution of the begin delete commission end delete begin insert authority end insert may contain.

SEC. 46.  

Section 190321 of the Public Utilities Code is
amended to read:

190321.  

Any bonds issued under this begin delete chapter end delete begin insert article end insert are legal
investment for all trust funds; for the funds of insurance companies,
commercial and savings banks, and trust companies; and for state
school funds; and whenever any money or funds may, by any law
now or hereafter enacted, be invested in bonds of cities, counties,
school districts, or other districts within the state, that money or
those funds may be invested in the bonds issued under this begin delete chapter, end delete
begin insert article, end insert and whenever bonds of cities, counties, school districts,
or other districts within the state may, by any law now or hereafter
enacted, be used as security for the performance of any act or the
deposit of any public money, the bonds issued under this begin delete chapter end delete
begin insert article end insert may be so used. The provisions of this begin delete chapter end delete begin insert article end insert are
in addition to all other laws relating to legal investments and shall
be controlling as the latest expression of the Legislature with
respect thereto.

SEC. 47.  

Section 190322 of the Public Utilities Code is
amended to read:

190322.  

Any action or proceeding wherein the validity of the
adoption of the retail transactions and use tax ordinance provided
for in this begin delete chapter end delete begin insert article end insert or the issuance of any bonds thereunder
or any of the proceedings in relation thereto is contested,
questioned, or denied, shall be commenced within six months from
the date of the election at which the ordinance is approved;
otherwise, the bonds and all proceedings in relation thereto,
including the adoption and approval of the ordinance, shall be held
to be valid and in every respect legal and incontestable.

SEC. 48.  

Section 190323 of the Public Utilities Code is
amended to read:

190323.  

begin delete The commission has no end delete begin insert This chapter does not vest in
the authority the end insert power to impose any tax other than the
transactions and use tax imposed upon approval of the voters in
accordance with this begin delete division. end delete begin insert chapter. end insert

SEC. 49.  

Chapter 2 (commencing with Section 190500) is
added to Division 20 of the Public Utilities Code, to read:

 

Chapter  2. San Bernardino County Transportation
Authority Consolidation Act of 2016

 

190500.  

This chapter shall be known and may be cited as the
San Bernardino County Transportation Authority Consolidation
Act of 2016.

190503.  

For purposes of this chapter, the following definitions
shall apply:

(a) “Authority” means the San Bernardino County
Transportation Authority established pursuant to Section 190505.

(b) “Local congestion management agency” means a San
Bernardino County congestion management agency established
pursuant to subdivision (a) of Section 65089 of the Government
Code.

(c) “Local transportation authority” means a San Bernardino
County transportation authority established pursuant to Section
180050.

(d) “Service authority for freeway emergencies” means a San
Bernardino County service authority for freeway emergencies
established pursuant to Section 2551 of the Streets and Highways
Code.

190505.  

(a) There is hereby created the San Bernardino County
Transportation Authority. The authority shall be the successor
agency to the powers, duties, revenues, debts, obligations,
liabilities, immunities, and exemptions of the San Bernardino
County Transportation Commission established pursuant to Section
130050, local transportation authority, service authority for freeway
emergencies, and local congestion management agency, and of
the San Bernardino Associated Governments, established pursuant
to Section 6502 of the Government Code, when it was acting on
behalf, or in the capacity, of those agencies.

(b) The authority may, at its own election, exercise any statutory
or regulatory powers and rely upon any immunities or exemptions
provided by law for the county transportation commission, local
transportation authority, service authority for freeway emergencies,
or local congestion management agency.

(c) The governing body of the authority shall consist of the
following members:

(1) Five members of the San Bernardino County Board of
Supervisors.

(2) One member from each of the incorporated cities of the
County of San Bernardino, who shall be a mayor or a city council
member of his or her incorporated city.

(3) One nonvoting member appointed by the Governor.

(d) Each incorporated city of the County of San Bernardino may
appoint an alternate member to represent it at a meeting, but only
if the regular member cannot attend the meeting. The alternate
member shall be either the mayor or a city council member of that
incorporated city.

190510.  

(a) Any reference in this division, or in any other
provision of law or regulation, to the San Bernardino County
Transportation Commission or to a San Bernardino County
transportation commission, local transportation authority, service
authority for freeway emergencies, or local congestion management
agency, shall be deemed to refer to the authority.

(b) By operation of law, the authority shall assume the rights,
obligations, assets, and liabilities of the San Bernardino County
Transportation Commission and San Bernardino County local
transportation authority, service authority for freeway emergencies,
and local congestion management agency, and of the San
Bernardino Associated Governments when it was acting on behalf,
or in the capacity, of those agencies, under any contract to which
any of them is a party and which was entered into before January
1, 2017. All real and personal property owned by any of them shall
be transferred to the authority by operation of law.

(c) The authority shall indemnify, defend, and hold harmless
the San Bernardino Associated Governments and its member
agencies from any and all powers, duties, debts, obligations,
liabilities, or claims arising out of or related to the powers, duties,
debts, obligations, and liabilities transferred to the authority under
this act by operation of law.

190512.  

Except as otherwise provided in this division, Chapter
1 (commencing with Section 130000), Chapter 2 (commencing
with Section 130050), Chapter 3 (commencing with 130100), and
Chapter 4 (commencing with Section 130200) of Division 12 shall
be applicable to the authority and shall be in addition to the powers
and functions of the authority set forth in this chapter.

190514.  

Chapter 1 (commencing with Section 180000), Chapter
5 (commencing with Section 180200), and Chapter 6 (commencing
with Section 180250) of Division 19 shall be applicable to the
authority and shall be in addition to the powers and functions of
the authority set forth in this chapter.

190520.  

A majority of the members of the authority shall
constitute a quorum for the transaction of business, and all official
acts of the authority shall require the affirmative vote of a majority
of the members of the authority.

190530.  

(a) After the creation of the authority and on the
effective date of a contract with the San Bernardino County
Employees’ Retirement Association providing retirement benefits
to the authority’s employees equivalent to those provided to
employees of the San Bernardino Associated Governments, existing
balances in the San Bernardino County Associated Governments’
Account in the San Bernardino County Employees’ Retirement
Association fund shall be transferred to the authority’s account in
that fund.

(b) After the creation of the authority and on the effective date
of a contract with the California Public Employees’ Retirement
System, the authority shall assume all retirement fund obligations
of the retired employees of San Bernardino Associated
Governments, and existing balances in the San Bernardino County
Associated Governments’ Account in the California Public
Employees’ Retirement System fund shall be transferred to the
authority’s account in that fund.

(c) As of the effective date of the transfer of retirement funds
under subdivision (a), all then current employees of the San
Bernardino Associated Governments shall be deemed to be
employees of the authority and all duties and obligations of the
employment relationship shall be assumed by the authority.

(d) The authority may contract to provide the services of its
employees to San Bernardino Associated Governments upon lawful
terms and conditions as the authority and the San Bernardino
Associated Governments shall agree.

190550.  

Notwithstanding Section 130233, if, after rejecting
bids received under Section 130232, the authority determines and
declares, by a majority vote of all of its members, that the supplies,
equipment, or materials may be purchased at a lower price in the
open market, the authority may proceed to purchase those supplies,
equipment, or materials in the open market without further
observance of the provisions in Article 2 (commencing with
Section 130220) of Chapter 4 of Division 12 regarding contracts,
bids, advertisement, or notice.

SEC. 50.  

Section 149.11 of the Streets and Highways Code,
as added by Chapter 702 of the Statutes of 2015, is amended to
read:

149.11.  

(a) (1) Notwithstanding Sections 149 and 30800 of
this code, and Section 21655.5 of the Vehicle Code, the San
Bernardino County Transportation begin delete Commission, end delete begin insert Authority, end insert created
pursuant to Section begin delete 130054 end delete begin insert 190505 end insert of the Public Utilities Code,
may conduct, administer, and operate a value-pricing program in
the Interstate 10 and Interstate 15 corridors in the County of San
Bernardino. The value-pricing program may include
high-occupancy toll lanes or other toll facilities. The San
Bernardino County Transportation begin delete Commission end delete begin insert Authority end insert may
also extend the program to include the approaching and departing
connectors on Interstate 10 extending into the County of Los
Angeles, as designated by an agreement with the Los Angeles
County Metropolitan Transportation Authority, and the connection
to the Interstate 15 express lanes project in the County of Riverside,
as designated by an agreement with the Riverside County
Transportation Commission. The San Bernardino County
Transportation begin delete Commission end delete begin insert Authority end insert may exercise its existing
powers of eminent domain pursuant to Section 130220.5 of the
Public Utilities Code to acquire property necessary to carry out
the purposes of the value-pricing program.

(2) The value-pricing program authorized pursuant to paragraph
(1) may only be implemented upon a determination that the
program and the resulting facilities will improve the performance
of the affected corridors. Improved performance may be
demonstrated by factors that include, but are not limited to,
increased passenger throughput or improved travel times. The San
Bernardino County Transportation begin delete Commission end delete begin insert Authority end insert shall
make the determination required by this paragraph in a public
meeting prior to operation of the value-pricing program.

(3) The San Bernardino County Transportation begin delete Commission end delete
begin insert Authority end insert shall have the authority to set, levy, and collect tolls,
user fees, or other similar charges payable for the use of the toll
facilities in the County of San Bernardino, and any other incidental
or related fees or charges, and to collect those revenues, in a
manner determined by the San Bernardino County Transportation
begin delete Commission, end delete begin insert Authority, end insert in amounts as required for the following
expenditures relative to the program and for the purposes of
paragraph (4):

(A) Development, including the costs of design, construction,
right-of-way acquisition, and utilities adjustment.

(B) Operations and maintenance, including, but not limited to,
insurance, collection, and enforcement of tolls, fees, and charges.

(C) Repair, rehabilitation, and reconstruction.

(D) Indebtedness incurred and internal loans and advances,
including related financial costs.

(E) Administration, which shall not exceed 3 percent of the
revenues of toll facilities and associated transportation facilities.

(F) Reserves for the purposes described in subparagraphs (A)
to (E), inclusive.

(4) All revenue generated pursuant to paragraph (3) in excess
of the expenditure needs of that paragraph shall be used exclusively
for the benefit of the transportation corridors included in the
value-pricing program created pursuant to this section. These
excess revenue expenditures shall be described in an excess revenue
expenditure plan developed in consultation with the department
and adopted and periodically updated by the board of directors of
the San Bernardino County Transportation begin delete Commission end delete begin insert Authority end insert
and may include, but need not be limited to, the following eligible
expenditures:

(A) Expenditures to enhance transit service designed to reduce
traffic congestion within the transportation corridors included in
the value-pricing program created pursuant to this section. Eligible
expenditures include, but are not limited to, transit operating
assistance, the acquisition of transit vehicles, and transit capital
improvements otherwise eligible to be funded under the state
transportation improvement program pursuant to Section 164.

(B) Expenditures to make operational or capacity improvements
designed to reduce traffic congestion or improve the flow of traffic
in the transportation corridors included in the value-pricing
program created pursuant to this section. Eligible expenditures
include, but are not limited to, any phase of project delivery to
make capital improvements to on ramps, off ramps, connector
roads, roadways, bridges, or other structures that are necessary for
or related to the tolled or nontolled transportation facilities in the
transportation corridors included in the value-pricing program
created pursuant to this section.

(5) To the extent the San Bernardino County Transportation
begin delete Commission end delete begin insert Authority end insert plans to extend the value-pricing program
into the Counties of Los Angeles or Riverside, it shall enter into
an agreement with the Los Angeles County Metropolitan
Transportation Authority or the Riverside County Transportation
Commission, as applicable, subject to approval of the board of
directors of the San Bernardino County Transportation begin delete Commission end delete
begin insert Authority end insert and the board of directors of the affected entity. If the
value-pricing program developed and operated by the San
Bernardino County Transportation begin delete Commission end delete begin insert Authority end insert connects
to, or is near, similar toll facilities constructed and operated by the
Los Angeles County Metropolitan Transportation Authority or the
Riverside County Transportation Commission, the respective
entities shall enter into an agreement providing for the coordination
of the toll facilities operated by each entity.

(b) (1) The San Bernardino County Transportation begin delete Commission end delete
begin insert Authority end insert shall carry out the program in cooperation with the
Department of the California Highway Patrol pursuant to an
agreement that addresses all matters related to enforcement on
state highway system facilities in connection with the value-pricing
program, and with the department pursuant to an agreement that
addresses all matters related to the design, construction,
maintenance, and operation of state highway system facilities in
connection with the value-pricing program, including, but not
limited to, financing, repair, rehabilitation, and reconstruction.

(2) The San Bernardino County Transportation begin delete Commission end delete
begin insert Authority end insert shall be responsible for reimbursing the department and
the Department of the California Highway Patrol for costs related
to the toll facility pursuant to an agreement between the San
Bernardino County Transportation begin delete Commission end delete begin insert Authority end insert and the
department and between the San Bernardino County Transportation
begin delete Commission end delete begin insert Authority end insert and the Department of the California
Highway Patrol.

(c) Single-occupant vehicles that are certified or authorized by
the San Bernardino County Transportation begin delete Commission end delete begin insert Authority end insert
for entry into, and use of, the high-occupancy toll lanes
implemented pursuant to this section are exempt from Section
21655.5 of the Vehicle Code, and the driver shall not be in violation
of the Vehicle Code because of that entry and use.

(d) (1) The San Bernardino County Transportation begin delete Commission end delete
begin insert Authority end insert may issue bonds at any time to finance any costs
necessary to implement the program established pursuant to this
section and any expenditures provided for in paragraphs (3) and
(4) of subdivision (a), payable from the revenues generated from
the program and any other sources of revenues available to the
San Bernardino County Transportation begin delete Commission end delete begin insert Authority end insert that
may be used for these purposes, including, but not limited to, sales
tax revenue, development impact fees, or state and federal grants.

(2) The maximum bonded indebtedness that may be outstanding
at any one time shall not exceed an amount that may be serviced
from the projected revenues available as described in paragraph
(1).

(3) The bonds shall bear interest at a rate or rates not exceeding
the maximum allowable by law, payable at intervals determined
by the San Bernardino County Transportation begin delete Commission. end delete
begin insert Authority. end insert

(4) Any bond issued pursuant to this subdivision shall contain
on its face a statement to the following effect:

“Neither the full faith and credit nor the taxing power of the
State of California is pledged to the payment of principal of, or
interest on, this bond.”

(5) Bonds shall be issued pursuant to a resolution of the
governing board of the San Bernardino County Transportation
begin delete Commission end delete begin insert Authority end insert adopted by a majority vote of its governing
board. The resolution or bond authorizing instrument shall state
all of the following:

(A) The purposes for which the proposed debt is to be incurred.

(B) The estimated cost of accomplishing those purposes.

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

(D) The maximum term of the bonds and the maximum interest
rate.

(E) The denomination or denominations of the bonds, which
shall not be less than five thousand dollars ($5,000).

(F) The form of the bonds.

(e) Not later than three years after begin insert either end insert the San Bernardino
County Transportation Commission begin insert or the San Bernardino County
Transportation Authority end insert first collects revenues from the program
authorized by this section, the San Bernardino County
Transportation begin delete Commission end delete begin insert Authority end insert shall submit a report to the
Legislative Analyst on its findings, conclusions, and
recommendations concerning the program. The report shall include
an analysis of the effect of the transportation facilities on the
adjacent mixed-flow lanes and any comments submitted by the
department and the Department of the California Highway Patrol
regarding operation of the transportation facilities.

(f) This section shall not prevent the department or any local
agency from constructing improvements in the transportation
corridors that compete with the program, and the San Bernardino
County Transportation begin delete Commission end delete begin insert Authority end insert shall not be entitled
to compensation for the adverse effects on toll revenue due to those
competing improvements.

(g) If any provision of this section or the application thereof is
held invalid, that invalidity shall not affect other provisions or
applications of this section that can be given effect without the
invalid provision or application, and to this extent the provisions
are severable.

(h) Nothing in this section shall authorize the conversion of any
existing nontoll or nonuser-fee lanes into tolled or user-fee lanes,
except that a high-occupancy vehicle lane may be converted into
a high-occupancy toll lane.

SEC. 51.  

The provisions of this act are severable. If any
provision of this act or its application is held invalid, that invalidity
shall not affect other provisions or applications that can be given
effect without the invalid provision or application.

SEC. 52.  

If the Commission on State Mandates determines
that this act contains costs mandated by the state, reimbursement
to local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.