240300. The Legislature, by the enactment of this chapter, intends
the additional funds provided government agencies by this chapter to
supplement existing local revenues being used for transportation
purposes. The government agencies shall maintain their existing
commitment of local funds for street, highway, and public transit
purposes pursuant to an ordinance adopted by the commission to
enforce this section.
240301. The commission may levy a retail transactions and use tax
applicable in the incorporated and unincorporated territory of the
county in accordance with this chapter 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 commission 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
commission shall specify in the ordinance that not more than 1
percent of the annual net amount of revenues raised by the tax may be
used to fund the salaries and benefits of the staff of the
commission 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 240304.
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
commission, to the voters in accordance with this division.
240302. (a) The commission, 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 division,
including legal actions related thereto, the construction, capital
acquisition, maintenance, and operation of streets, roads, highways,
including state highways, and public transit systems. 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 which 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.
(3) The formula for distribution of the city and county portion,
which may be amended by voter approval.
(d) Following adoption of the ordinance by the voters, the
expenditure plan may only be amended, if required, by the following
process:
(1) Initiation of amendment by the commission, reciting findings
of necessity.
(2) Approval by the board of supervisors.
(3) Approval by a majority of the cities constituting a majority
of the incorporated population.
240303. (a) The county shall conduct an election called by the
board of supervisors pursuant to Section 240301.
(b) The election shall be called and conducted in the same manner
as provided by law for the conduct of elections by a county.
240304. (a) Any transactions and use tax ordinance adopted pursuant
to this chapter 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 commission
shall contract with the State Board of Equalization to perform all
functions incident to the administration and operation of the
ordinance.
240305. The revenues from the taxes imposed pursuant to this
chapter shall be allocated by the commission for transportation
purposes consistent with the adopted regional transportation
improvement program and the regional transportation plan.
240306. (a) The commission, subject to the approval of the voters,
may impose a maximum tax rate of one-half of 1 percent under this
division and Part 1.6 (commencing with Section 7251) of Division 2 of
the Revenue and Taxation Code, and the commission may state the
maximum tax rate in terms of not to exceed one-half of 1 percent, or
any lesser percentage thereof. Neither this division nor the
ordinance shall affect any tax otherwise authorized.
(b) The tax rate adopted pursuant to this chapter, unless
otherwise prohibited, may be increased by the commission by ordinance
adopted in the manner and by the vote stated in Section 240301 and
approved by a majority of the electors voting on the measure at an
election called for that purpose by the commission.
240307. Any increase or reduction in the tax rate adopted pursuant
to Section 240306 or 240307 shall become effective on the first day
of the calendar quarter which commences at least 120 days following
the date of the commission's vote approving the increased or reduced
rate.
240308. (a) If requested to do so by the commission 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 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 payment thereof have been set aside for that purpose in a
trust or escrow account.
(c) The proposition shall set forth each of the following:
(1) The actual percent of the tax.
(2) The duration of the tax if the plan specifies a time limit.
(3) The amount of bonds, if any, payable from the proceeds of the
tax.
(4) The commission as the agency imposing the tax.
(5) The appropriations limit of the commission, pursuant to
Section 4 of Article XIII B of the California Constitution.
(d) 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.
240309. (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 commission 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 chapter shall have priority over the use of any of the tax
for "pay-as-you-go" financing, except to the extent that that
priority is expressly restricted in the resolution authorizing the
issuance of the bonds.
240310. Limited tax bonds shall be issued pursuant to a resolution
adopted at any time by a two-thirds vote of the commission. 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.
240311. (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 chapter or any other law.
240312. The bonds shall bear interest at a rate or rates not
exceeding the maximum allowable by law, payable at intervals
determined by the commission, 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 commission.
240313. In the resolution authorizing the issuance of the bonds,
the commission 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.
240314. 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 commission, 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.
240315. The bonds, or each series thereof, shall be dated and
numbered consecutively and shall be signed by the chairperson or vice
chairperson of the commission and the auditor-controller of the
commission, and the official seal, if any, of the commission shall be
attached.
The interest coupons of the bonds shall be signed by the
auditor-controller of the commission. 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.
240316. The bonds may be sold as the commission determines by
resolution, and the bonds may be sold at a price below par, whether
by negotiated or public sale.
240317. Delivery of any bonds may be made at any place either
inside or outside the state, and the purchase price may be received
in cash or bank credits.
240318. 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
commission 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
commission. Bonds so purchased shall be canceled immediately.
240319. (a) The commission may provide for the issuance, sale, or
exchange of refunding bonds to redeem or retire any bonds issued by
the commission 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 chapter for the issuance and sale of
bonds apply to the issuance and sale of refunding bonds.
240320. (a) The commission may borrow money in anticipation of the
sale of bonds which have been authorized pursuant to this chapter,
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 commission 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
commission 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 commission
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 commission may contain.
240321. Any bonds issued under this chapter 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 chapter, 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 chapter may be so used. The provisions of
this chapter 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.
240322. Any action or proceeding wherein the validity of the
adoption of the retail transactions and use tax ordinance provided
for in this chapter 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.
240323. The commission has no power to impose any tax other than
the transactions and use tax imposed upon approval of the voters in
accordance with this division.
240300. The Legislature, by the enactment of this chapter, intends
the additional funds provided government agencies by this chapter to
supplement existing local revenues being used for transportation
purposes. The government agencies shall maintain their existing
commitment of local funds for street, highway, and public transit
purposes pursuant to an ordinance adopted by the commission to
enforce this section.
240301. The commission may levy a retail transactions and use tax
applicable in the incorporated and unincorporated territory of the
county in accordance with this chapter 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 commission 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
commission shall specify in the ordinance that not more than 1
percent of the annual net amount of revenues raised by the tax may be
used to fund the salaries and benefits of the staff of the
commission 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 240304.
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
commission, to the voters in accordance with this division.
240302. (a) The commission, 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 division,
including legal actions related thereto, the construction, capital
acquisition, maintenance, and operation of streets, roads, highways,
including state highways, and public transit systems. 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 which 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.
(3) The formula for distribution of the city and county portion,
which may be amended by voter approval.
(d) Following adoption of the ordinance by the voters, the
expenditure plan may only be amended, if required, by the following
process:
(1) Initiation of amendment by the commission, reciting findings
of necessity.
(2) Approval by the board of supervisors.
(3) Approval by a majority of the cities constituting a majority
of the incorporated population.
240303. (a) The county shall conduct an election called by the
board of supervisors pursuant to Section 240301.
(b) The election shall be called and conducted in the same manner
as provided by law for the conduct of elections by a county.
240304. (a) Any transactions and use tax ordinance adopted pursuant
to this chapter 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 commission
shall contract with the State Board of Equalization to perform all
functions incident to the administration and operation of the
ordinance.
240305. The revenues from the taxes imposed pursuant to this
chapter shall be allocated by the commission for transportation
purposes consistent with the adopted regional transportation
improvement program and the regional transportation plan.
240306. (a) The commission, subject to the approval of the voters,
may impose a maximum tax rate of one-half of 1 percent under this
division and Part 1.6 (commencing with Section 7251) of Division 2 of
the Revenue and Taxation Code, and the commission may state the
maximum tax rate in terms of not to exceed one-half of 1 percent, or
any lesser percentage thereof. Neither this division nor the
ordinance shall affect any tax otherwise authorized.
(b) The tax rate adopted pursuant to this chapter, unless
otherwise prohibited, may be increased by the commission by ordinance
adopted in the manner and by the vote stated in Section 240301 and
approved by a majority of the electors voting on the measure at an
election called for that purpose by the commission.
240307. Any increase or reduction in the tax rate adopted pursuant
to Section 240306 or 240307 shall become effective on the first day
of the calendar quarter which commences at least 120 days following
the date of the commission's vote approving the increased or reduced
rate.
240308. (a) If requested to do so by the commission 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 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 payment thereof have been set aside for that purpose in a
trust or escrow account.
(c) The proposition shall set forth each of the following:
(1) The actual percent of the tax.
(2) The duration of the tax if the plan specifies a time limit.
(3) The amount of bonds, if any, payable from the proceeds of the
tax.
(4) The commission as the agency imposing the tax.
(5) The appropriations limit of the commission, pursuant to
Section 4 of Article XIII B of the California Constitution.
(d) 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.
240309. (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 commission 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 chapter shall have priority over the use of any of the tax
for "pay-as-you-go" financing, except to the extent that that
priority is expressly restricted in the resolution authorizing the
issuance of the bonds.
240310. Limited tax bonds shall be issued pursuant to a resolution
adopted at any time by a two-thirds vote of the commission. 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.
240311. (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 chapter or any other law.
240312. The bonds shall bear interest at a rate or rates not
exceeding the maximum allowable by law, payable at intervals
determined by the commission, 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 commission.
240313. In the resolution authorizing the issuance of the bonds,
the commission 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.
240314. 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 commission, 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.
240315. The bonds, or each series thereof, shall be dated and
numbered consecutively and shall be signed by the chairperson or vice
chairperson of the commission and the auditor-controller of the
commission, and the official seal, if any, of the commission shall be
attached.
The interest coupons of the bonds shall be signed by the
auditor-controller of the commission. 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.
240316. The bonds may be sold as the commission determines by
resolution, and the bonds may be sold at a price below par, whether
by negotiated or public sale.
240317. Delivery of any bonds may be made at any place either
inside or outside the state, and the purchase price may be received
in cash or bank credits.
240318. 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
commission 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
commission. Bonds so purchased shall be canceled immediately.
240319. (a) The commission may provide for the issuance, sale, or
exchange of refunding bonds to redeem or retire any bonds issued by
the commission 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 chapter for the issuance and sale of
bonds apply to the issuance and sale of refunding bonds.
240320. (a) The commission may borrow money in anticipation of the
sale of bonds which have been authorized pursuant to this chapter,
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 commission 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
commission 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 commission
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 commission may contain.
240321. Any bonds issued under this chapter 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 chapter, 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 chapter may be so used. The provisions of
this chapter 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.
240322. Any action or proceeding wherein the validity of the
adoption of the retail transactions and use tax ordinance provided
for in this chapter 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.
240323. The commission has no power to impose any tax other than
the transactions and use tax imposed upon approval of the voters in
accordance with this division.
240300. The Legislature, by the enactment of this chapter, intends
the additional funds provided government agencies by this chapter to
supplement existing local revenues being used for transportation
purposes. The government agencies shall maintain their existing
commitment of local funds for street, highway, and public transit
purposes pursuant to an ordinance adopted by the commission to
enforce this section.
240301. The commission may levy a retail transactions and use tax
applicable in the incorporated and unincorporated territory of the
county in accordance with this chapter 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 commission 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
commission shall specify in the ordinance that not more than 1
percent of the annual net amount of revenues raised by the tax may be
used to fund the salaries and benefits of the staff of the
commission 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 240304.
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
commission, to the voters in accordance with this division.
240302. (a) The commission, 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 division,
including legal actions related thereto, the construction, capital
acquisition, maintenance, and operation of streets, roads, highways,
including state highways, and public transit systems. 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 which 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.
(3) The formula for distribution of the city and county portion,
which may be amended by voter approval.
(d) Following adoption of the ordinance by the voters, the
expenditure plan may only be amended, if required, by the following
process:
(1) Initiation of amendment by the commission, reciting findings
of necessity.
(2) Approval by the board of supervisors.
(3) Approval by a majority of the cities constituting a majority
of the incorporated population.
240303. (a) The county shall conduct an election called by the
board of supervisors pursuant to Section 240301.
(b) The election shall be called and conducted in the same manner
as provided by law for the conduct of elections by a county.
240304. (a) Any transactions and use tax ordinance adopted pursuant
to this chapter 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 commission
shall contract with the State Board of Equalization to perform all
functions incident to the administration and operation of the
ordinance.
240305. The revenues from the taxes imposed pursuant to this
chapter shall be allocated by the commission for transportation
purposes consistent with the adopted regional transportation
improvement program and the regional transportation plan.
240306. (a) The commission, subject to the approval of the voters,
may impose a maximum tax rate of one-half of 1 percent under this
division and Part 1.6 (commencing with Section 7251) of Division 2 of
the Revenue and Taxation Code, and the commission may state the
maximum tax rate in terms of not to exceed one-half of 1 percent, or
any lesser percentage thereof. Neither this division nor the
ordinance shall affect any tax otherwise authorized.
(b) The tax rate adopted pursuant to this chapter, unless
otherwise prohibited, may be increased by the commission by ordinance
adopted in the manner and by the vote stated in Section 240301 and
approved by a majority of the electors voting on the measure at an
election called for that purpose by the commission.
240307. Any increase or reduction in the tax rate adopted pursuant
to Section 240306 or 240307 shall become effective on the first day
of the calendar quarter which commences at least 120 days following
the date of the commission's vote approving the increased or reduced
rate.
240308. (a) If requested to do so by the commission 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 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 payment thereof have been set aside for that purpose in a
trust or escrow account.
(c) The proposition shall set forth each of the following:
(1) The actual percent of the tax.
(2) The duration of the tax if the plan specifies a time limit.
(3) The amount of bonds, if any, payable from the proceeds of the
tax.
(4) The commission as the agency imposing the tax.
(5) The appropriations limit of the commission, pursuant to
Section 4 of Article XIII B of the California Constitution.
(d) 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.
240309. (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 commission 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 chapter shall have priority over the use of any of the tax
for "pay-as-you-go" financing, except to the extent that that
priority is expressly restricted in the resolution authorizing the
issuance of the bonds.
240310. Limited tax bonds shall be issued pursuant to a resolution
adopted at any time by a two-thirds vote of the commission. 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.
240311. (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 chapter or any other law.
240312. The bonds shall bear interest at a rate or rates not
exceeding the maximum allowable by law, payable at intervals
determined by the commission, 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 commission.
240313. In the resolution authorizing the issuance of the bonds,
the commission 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.
240314. 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 commission, 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.
240315. The bonds, or each series thereof, shall be dated and
numbered consecutively and shall be signed by the chairperson or vice
chairperson of the commission and the auditor-controller of the
commission, and the official seal, if any, of the commission shall be
attached.
The interest coupons of the bonds shall be signed by the
auditor-controller of the commission. 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.
240316. The bonds may be sold as the commission determines by
resolution, and the bonds may be sold at a price below par, whether
by negotiated or public sale.
240317. Delivery of any bonds may be made at any place either
inside or outside the state, and the purchase price may be received
in cash or bank credits.
240318. 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
commission 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
commission. Bonds so purchased shall be canceled immediately.
240319. (a) The commission may provide for the issuance, sale, or
exchange of refunding bonds to redeem or retire any bonds issued by
the commission 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 chapter for the issuance and sale of
bonds apply to the issuance and sale of refunding bonds.
240320. (a) The commission may borrow money in anticipation of the
sale of bonds which have been authorized pursuant to this chapter,
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 commission 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
commission 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 commission
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 commission may contain.
240321. Any bonds issued under this chapter 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 chapter, 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 chapter may be so used. The provisions of
this chapter 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.
240322. Any action or proceeding wherein the validity of the
adoption of the retail transactions and use tax ordinance provided
for in this chapter 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.
240323. The commission has no power to impose any tax other than
the transactions and use tax imposed upon approval of the voters in
accordance with this division.
