BILL NUMBER: SB 2057	CHAPTERED  07/21/00

	CHAPTER   179
	FILED WITH SECRETARY OF STATE   JULY 21, 2000
	APPROVED BY GOVERNOR   JULY 21, 2000
	PASSED THE ASSEMBLY   JULY 6, 2000
	PASSED THE SENATE   MAY 24, 2000
	AMENDED IN SENATE   APRIL 13, 2000

INTRODUCED BY   Senator Morrow

                        FEBRUARY 25, 2000

   An act to add Section 1179.6 to the Streets and Highways Code,
relating to highways.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 2057, Morrow.   Highways:  funding.
   The Permanent Road Division Law authorizes the formation of a
permanent road division within a county upon completion of a hearing
on the issue and approval by the county board of supervisors of a
petition requesting that formation.  The board is authorized to levy
a special tax for highway maintenance in the division, and to issue
bonds payable from the proceeds of that tax, if imposition of the tax
and issuance of the bonds are approved by a 2/3 majority of the
voters in elections held for those purposes.
   This bill, additionally, would authorize the board to issue bonds,
notes, or other evidences of indebtedness under the Permanent Road
Division Law on behalf of a road division or a zone to finance
capital improvements for a term of not more than 10 years.
   The bill would require the bonds, notes, or other evidences of
indebtedness to be repaid solely from special taxes or parcel charges
levied within the division or zone, subject to certain procedures
relating to debt collection.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1179.6 is added to the Streets and Highways
Code, to read:
   1179.6.  (a) In addition to any other authority granted under this
article, the board may issue bonds, notes, or other evidences of
indebtedness on behalf of a permanent road division or a zone to
finance capital improvements for a term of not more than 10 years, to
be repaid solely from special taxes or parcel charges levied within
the division or zone.
   (b) The provisions of Sections 53356.1 to 53356.6, inclusive, of
the Government Code shall apply within the division or zone with
regard to the collection of the special taxes or parcel charges and
to the foreclosure of liens when the board has issued bonds, notes,
or other evidences of indebtedness on behalf of the division or zone.