SECTIONS 132300-132314

132300.  The Legislature, by the enactment of this article, intendsthe additional funds provided government agencies by this article tosupplement existing local revenues being used for publictransportation purposes. The government agencies are furtherencouraged to maintain their existing commitment of local funds forpublic transportation purposes.132301.  A retail transactions and use tax ordinance applicable inthe incorporated and unincorporated territory of the county shall beimposed by the commission in accordance with Section 132307 and Part1.6 (commencing with Section 7251) of Division 2 of the Revenue andTaxation Code, if two-thirds of the electors voting on the measurevote to approve its imposition at a special election called for thatpurpose by the commission. The tax ordinance shall take effect at theclose of the polls on the day of election at which the propositionis adopted. The initial collection of the transactions and use taxshall take place in accordance with Section 132304. If, at any time, the voters do not approve the imposition of thetransactions and use tax, this chapter remains in full force andeffect. The commission may, at any time thereafter, submit the same,or a different, measure to the voters in accordance with thischapter.132302.  The commission, in the ordinance, shall state the nature ofthe tax to be imposed, the tax rate or the maximum tax rate, thepurposes for which the revenue derived from the tax will be used, andmay set a term during which the tax will be imposed. The purposesfor which the tax revenues will be used may include, but are notlimited to, the administration of this chapter, including legalactions related thereto, the construction, capital acquisition,maintenance, and operation of streets, roads, and highways, includingstate highways, and the construction, maintenance, and operation ofpublic transit systems, including exclusive public mass transitguideway systems. These purposes include expenditures for theplanning, environmental reviews, engineering and design costs, andrelated right-of-way acquisition. The ordinance shall contain anexpenditure plan which shall include the allocation of revenues forthe purposes authorized by this section.132303.  (a) The county shall conduct an election called by thecommission pursuant to Section 132301. (b) The election shall be called and conducted in the same manneras provided by law for the conduct of elections by a county.132304.  (a) Any transactions and use tax ordinance adopted pursuantto this article shall be operative on the first day of the firstcalendar quarter commencing more than 110 days after adoption of theordinance. (b) Prior to the operative date of the ordinance, the commissionshall contract with the State Board of Equalization to perform allfunctions incident to the administration and operation of theordinance.132305.  The revenues from the taxes imposed pursuant to thisarticle may be allocated by the commission for public transportationpurposes consistent with the adopted regional transportationimprovement program and the regional transportation plan.132306.  If taxes are imposed pursuant to this article forexpenditure for public transit purposes, the commission shallallocate revenues derived therefrom to the transit development boardsfor allocation within their respective areas of jurisdiction fortransit purposes consistent with the adopted regional transportationimprovement program and the regional transportation plan.132307.  (a) The commission, subject to the approval of the voters,may impose a maximum tax rate of 1 percent under this chapter andPart 1.6 (commencing with Section 7251) of Division 2 of the Revenueand Taxation Code, and the commission may state the maximum tax ratein terms of not to exceed 1 percent, or any lesser percentagethereof. The commission shall not levy the tax at a rate other than 1percent or three-fourths, one-half, or one-fourth of 1 percent,unless specifically authorized by the Legislature. (b) The tax rate adopted pursuant to this article, unlessotherwise prohibited, may be increased by the commission by ordinanceadopted in the manner and by the vote stated in Section 132301 andapproved by a majority of the electors voting on the measure at anelection called for that purpose by the commission.132308.  The commission may reduce a tax rate to percentages lowerthan that approved by the voters and may further provide for anincrease of the tax rate if it has previously been lowered. However,the tax rate may not be increased to a rate above the tax rateapproved by the voters. Any revised tax rate may be adopted only if the commissiondetermines, by a two-thirds vote, that the proceeds of the taxes withthe altered tax rate will be sufficient to provide for the paymentof principal of, and interest on, any limited tax bonds and any otherindebtedness incurred by the commission which was to be payable fromthe proceeds of the retail transactions and use tax.132309.  (a) The commission, as part of the ballot proposition toapprove the imposition of a retail transactions and use tax, shallseek authorization to issue bonds payable from the proceeds of thetax and establish the appropriations limit of the commission. (b) The maximum bonded indebtedness which may be outstanding atany 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 proceedsof the transactions and use tax for a period of not more than thenumber of years for which the transactions and use tax authorized bythis article is to be imposed.132310.  (a) The bonds authorized by the voters concurrently withthe approval of the retail transactions and use tax may be issued bythe commission at any time, and from time to time, payable from theproceeds of the tax. The bonds shall be referred to as "limited taxbonds." The bonds may be secured by a pledge of revenues from theproceeds of the tax. (b) The pledge of retail transactions and use taxes to the limitedtax bonds authorized under this article shall have priority over theuse of any of the taxes for "pay-as-you-go" financing, except to theextent that the priority is expressly restricted in the resolutionauthorizing the issuance of the bonds.132310.5.  The commission may provide for the bonds to bear avariable interest rate, for the manner and intervals in which therate shall vary, and for the dates on which the interest shall bepayable.132311.  Limited tax bonds shall be issued pursuant to a resolutionadopted at any time, and from time to time, by the commission by atwo-thirds vote of all members of the commission. The commission may from time to time issue bonds in accordancewith the Revenue Bond Law of 1941 (Chapter 6 (commencing with Section54300) of Part 1 of Division 2 of Title 5 of the Government Code),for the purposes set forth in the ordinance adopted pursuant toSection 132302, which shall constitute an "enterprise" within themeaning of Section 54309 of the Government Code. Article 3(commencing with Section 54380) of Chapter 6 of Part 1 of Division 2of Title 5 of the Government Code and the limitations on the rate ofinterest set forth in subdivision (b) of Section 54402 of theGovernment Code do not apply to the issuance and sale of bondspursuant to this chapter. Instead, the commission shall authorize theissuance of bonds by resolution, which resolution shall specify allof the following: (a) The purposes for which the bonds are to be issued. (b) The maximum principal amount of the bonds. (c) The maximum term for the bonds. (d) The maximum rate of interest to be payable upon the bondsshall not exceed the maximum rate permitted for bonds of thecommission by Section 53531 of the Government Code or any otherapplicable provisions of law. In the case of bonds bearing a variableinterest rate, the variable rate shall on no day exceed the maximumrate permitted for bonds of the commission on that day by Section53531 of the Government Code or any other applicable provisions oflaw. However, the variable interest rate so permitted may on any dayexceed that maximum rate if the interest paid on the bonds from theirdate of original issuance to that day does not exceed the totalinterest which would have been permitted to have been paid on thebonds if the bonds had borne interest at all times from the date ofissuance to that day at the maximum rate permitted from time to timeby Section 53531 of the Government Code or any other applicableprovisions of law. (e) The maximum discount on the sale of the bonds. However, thebonds shall not be sold at less than 95 percent of the principalamount in the manner determined by the commission. Each resolutionshall provide for the issuance of bonds in the amounts as may benecessary, until the full amount of the bonds authorized has beenissued. The full amount of bonds may be divided into two or moreseries with different dates of payment fixed for the bonds of eachseries. A bond need not mature on its anniversary date.132312.  Any bonds issued pursuant to this article are a legalinvestment for all trust funds; for the funds of insurance companies,commercial and savings banks, and trust companies; and for stateschool funds. Whenever any money or funds may, by any law now orhereafter enacted, be invested in bonds of cities, counties, schooldistricts, or other districts within the state, those funds may beinvested in the bonds issued pursuant to this article, and wheneverbonds of cities, counties, school districts, or other districtswithin this state may, by any law now or hereafter enacted, be usedas security for the performance of any act or the deposit of anypublic money, the bonds issued pursuant to this article may be soused. The provisions of this article are in addition to all otherlaws relating to legal investments and shall be controlling as thelatest expression of the Legislature with respect thereto.132313.  Any action or proceeding wherein the validity of theadoption of the retail transactions and use tax ordinance providedfor in this article or the issuance of any bonds thereunder or any ofthe proceedings in relation thereto is contested, questioned, ordenied, shall be commenced within six months from the date of theelection at wich the ordinance is approved; otherwise, the bonds andall proceedings in relation thereto, including the adoption andapproval of the ordinance, shall be held to be valid and in everyrespect legal and incontestable.132314.  The commission has no power to impose any tax other thanthe transactions and use tax imposed upon approval of the voters inaccordance with this chapter.