55800. (a) (1) As part of the ballot proposition to approve the
imposition of a retail transactions and use tax pursuant to Chapter 2
(commencing with Section 7285) of Part 1.7 of Division 2 of the
Revenue and Taxation Code, an authority established pursuant to
Section 7285.5 of the Revenue and Taxation Code may seek
authorization to issue bonds payable from the proceeds of the tax to
finance capital outlay expenditures as may be provided for in the
expenditure plan adopted pursuant to subdivision (c) of Section
7285.5 of the Revenue and Taxation Code.
(2) If an authority established pursuant to Section 7285.5 of the
Revenue and Taxation Code has obtained voter approval prior to the
effective date of this chapter for the imposition of a retail
transactions and use tax pursuant to Chapter 2 (commencing with
Section 7285) of Part 1.7 of Division 2 of the Revenue and Taxation
Code and the issuance of bonds payable from the proceeds of the tax,
that authority may issue bonds, refunding bonds, and bond
anticipation notes pursuant to this chapter to finance capital outlay
expenditures as may be provided for in the expenditure plan adopted
pursuant to subdivision (c) of Section 7285.5 of the Revenue and
Taxation Code.
(3) If an authority established pursuant to Section 7285.5 of the
Revenue and Taxation Code has obtained voter approval prior to the
effective date of this chapter only for the imposition of a retail
transactions and use tax pursuant to Chapter 2 (commencing with
Section 7285) of Part 1.7 of Division 2 of the Revenue and Taxation
Code, that authority may seek authorization to issue bonds pursuant
to this chapter payable from the proceeds of the tax to finance
capital outlay expenditures as may be provided for in the expenditure
plan adopted pursuant to subdivision (c) of Section 7285.5 of the
Revenue and Taxation Code only if a resolution is adopted by
two-thirds vote of the governing body of the authority and approved
by a majority of the voters.
(b) The maximum indebtedness which 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) (1) A county authorized to levy, increase, or extend a
transactions and use tax pursuant to Section 7285.5 of the Revenue
and Taxation Code may issue bonds pursuant to this chapter, and for
the purposes of this chapter shall be deemed an authority.
(2) The authorizations contained in this chapter shall apply to
any tax levied, increased, or extended by a county pursuant to
Section 7285.5 of the Revenue and Taxation Code on or after January
1, 2002.
55802. (a) The bonds authorized by the voters pursuant to Section
55800 may be issued at any time by the authority 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, including income from the investment
of those proceeds.
(b) The pledge of the retail transactions and use tax revenues for
the limited tax bonds authorized under this chapter shall have
priority over the use of any of the tax revenues for "pay-as-you-go"
financing, or any other purposes except to the extent that that
priority is expressly restricted in the resolution authorizing the
issuance of the bonds.
55803. Limited tax bonds issued under this chapter may be used only
for the following purposes:
(a) To finance the capital outlay expenditures to carry out the
purposes of the retail transactions and use tax imposed by the
authority.
(b) To pay costs incurred in the issuance of the limited tax
bonds.
(c) To fund a reserve fund for the limited tax bonds.
55804. Limited tax bonds shall be issued pursuant to a resolution
adopted at any time, and from time to time, by a two-thirds vote of
the governing board of the authority, provided voter approval
authorizing the issuance of bonds by the authority has been obtained
by a majority vote, except as provided in paragraph (2) of
subdivision (a) of Section 55800. 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.
55805. (a) A resolution providing for the issuance of bonds
pursuant to this chapter 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 costs 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 rate allowed by Section 53531, payable at
intervals determined by the authority.
(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, 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.
55806. The authority may provide for the limited tax bonds to bear
a variable or fixed interest rate, for the manner and intervals in
which the rate shall vary, and for the dates on which the interest
shall be payable.
55807. (a) In the resolution authorizing the issuance of the bonds,
the authority 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.
(b) Notwithstanding the provisions of subdivision (a), 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 therein.
55808. The principal of, and interest on, the bonds, shall be
payable in lawful money of the United States at the office of the
treasurer or auditor-controller of the authority, 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.
55809. (a) The bonds, or each series thereof, shall be signed by
the chairperson or vice chairperson of the governing board of the
authority or the treasurer or auditor-controller of the authority,
and the official seal, if any, of the authority shall be attached.
(b) The interest coupons, if any, of the bonds shall be signed by
the treasurer or auditor-controller of the authority. All of the
signatures and the seal may be printed, lithographed, photocopied, or
mechanically reproduced. However, the bonds shall not be valid or
become obligatory for any purpose until manually signed by an
authenticating agent or trustee duly appointed by the authority or
its authorized designee.
(c) 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.
55810. The bonds may be sold as the authority determines by
resolution, and the bonds may be sold at a price above or below par,
whether by negotiated or public sale.
55811. Delivery of any bonds issued pursuant to this chapter may be
made at any place either inside or outside the state, and the
purchase price may be received in cash or bank credits.
55812. 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
authority or deposited with a bond trustee 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 or redemption premium 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 authority.
Bonds so purchased shall be canceled immediately.
55813. (a) The authority may provide for the issuance, sale, or
exchange of refunding bonds to redeem or retire any bonds issued by
the authority upon the terms, at the times and in the manner which it
determines.
(b) The proceeds of any bonds issued for the purpose of refunding
outstanding bonds may, in the discretion of the authority, be applied
to the purchase or retirement at maturity or redemption of
outstanding bonds either on their earliest or any subsequent
redemption date or upon the purchase or retirement at the maturity
thereof and may, pending that application, be placed in escrow to be
applied to the purchase or retirement at maturity or redemption on
the date as may be determined by the authority.
(c) Pending that use, the escrowed proceeds may be invested and
reinvested by the authority or its trustee in obligations of, or
guaranteed by, the United States, or in certificates of deposits or
time deposits secured by obligations of, or guaranteed by, the United
States, maturing at a time or times appropriate to ensure the prompt
payment of principal, interest, and redemption premium, if any, of
the outstanding bonds to be so refunded. The interest, income, and
profits, if any, earned or realized on the investment may also be
applied to the payment of the outstanding bonds to be so refunded.
After the terms of the escrow have been fully satisfied and carried
out, any balance of the proceeds and interest, income, and profits,
if any, earned or realized on the investment thereof may be returned
to the authority for use by it in any lawful manner.
55814. 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:
(a) 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 holder of the bonds.
(b) 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.
55815. (a) The authority 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 authority available therefor, including
the revenues from the retail transactions and use 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 authority 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 authority
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 authority may contain.
55816. Any limited tax bonds issued pursuant to this chapter are a
legal investment for all trust funds, for the funds of insurance
companies, commercial and savings banks, and trust companies, and for
state school funds. Whenever any money or funds may, by any law now
or hereafter enacted, be invested in bonds of cities, cities and
counties, counties, school districts, or other districts within the
state, that money or funds may be invested in the bonds issued
pursuant to this chapter. Whenever bonds of cities, cities and
counties, counties, school districts, or other districts within this
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 moneys,
the bonds issued pursuant to 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.
55817. Notwithstanding any other provision of law:
(a) The authority and its revenues are exempt from all taxes on,
or measured by, income.
(b) Bonds issued by the authority are exempt from all property
taxation, and the interest on the bonds is exempt from all taxes on
income.
(c) All property owned by the agency is exempt from property
taxes, assessments, and other public charges secured by liens.
55818. (a) Bonds issued pursuant to this chapter do not constitute
a debt or liability of the state or of any other public agency, other
than the authority issuing the bonds, or a pledge of the faith and
credit of the state or of any other public agency, other than the
issuing authority, but shall be payable solely from the funds
provided therefor. All of the bonds shall contain on the face thereof
a statement to the following effect:
"Neither the faith and credit nor the taxing power of the State of
California or any public agency, other than the (name of the issuing
authority), is pledged to the payment of the principal of or
interest on this bond."
(b) The issuance of bonds pursuant to this chapter does not in any
manner obligate the state or any other public agency thereof to
levy, or to pledge, any form of taxation therefor or to make any
appropriation for their payment.
55819. 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 pursuant to Chapter 9 (commencing with
Section 860) of Title 10 of Part 2 of the Code of Civil Procedure
within six months from the date of the election at which the
ordinance is approved or, in the case of any ordinance approved prior
to the effective date of this section, six months from the effective
date of this section. Otherwise, the bonds and all proceedings in
relation thereto, including the adoption and approval of the
ordinance and the retail transactions and use tax provided for
therein, shall be held to be valid and in every respect legal and
incontestable.
55820. The authority has no power to impose any tax other than the
transactions and use tax imposed upon approval of the voters in
accordance with this chapter.
55821. If any provision of this chapter or the application thereof
to any person or circumstance is held invalid, that invalidity shall
not affect other provisions or applications of the chapter which can
be given effect without the invalid provision or application, and to
this end the provisions of this chapter are severable.
55800. (a) (1) As part of the ballot proposition to approve the
imposition of a retail transactions and use tax pursuant to Chapter 2
(commencing with Section 7285) of Part 1.7 of Division 2 of the
Revenue and Taxation Code, an authority established pursuant to
Section 7285.5 of the Revenue and Taxation Code may seek
authorization to issue bonds payable from the proceeds of the tax to
finance capital outlay expenditures as may be provided for in the
expenditure plan adopted pursuant to subdivision (c) of Section
7285.5 of the Revenue and Taxation Code.
(2) If an authority established pursuant to Section 7285.5 of the
Revenue and Taxation Code has obtained voter approval prior to the
effective date of this chapter for the imposition of a retail
transactions and use tax pursuant to Chapter 2 (commencing with
Section 7285) of Part 1.7 of Division 2 of the Revenue and Taxation
Code and the issuance of bonds payable from the proceeds of the tax,
that authority may issue bonds, refunding bonds, and bond
anticipation notes pursuant to this chapter to finance capital outlay
expenditures as may be provided for in the expenditure plan adopted
pursuant to subdivision (c) of Section 7285.5 of the Revenue and
Taxation Code.
(3) If an authority established pursuant to Section 7285.5 of the
Revenue and Taxation Code has obtained voter approval prior to the
effective date of this chapter only for the imposition of a retail
transactions and use tax pursuant to Chapter 2 (commencing with
Section 7285) of Part 1.7 of Division 2 of the Revenue and Taxation
Code, that authority may seek authorization to issue bonds pursuant
to this chapter payable from the proceeds of the tax to finance
capital outlay expenditures as may be provided for in the expenditure
plan adopted pursuant to subdivision (c) of Section 7285.5 of the
Revenue and Taxation Code only if a resolution is adopted by
two-thirds vote of the governing body of the authority and approved
by a majority of the voters.
(b) The maximum indebtedness which 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) (1) A county authorized to levy, increase, or extend a
transactions and use tax pursuant to Section 7285.5 of the Revenue
and Taxation Code may issue bonds pursuant to this chapter, and for
the purposes of this chapter shall be deemed an authority.
(2) The authorizations contained in this chapter shall apply to
any tax levied, increased, or extended by a county pursuant to
Section 7285.5 of the Revenue and Taxation Code on or after January
1, 2002.
55802. (a) The bonds authorized by the voters pursuant to Section
55800 may be issued at any time by the authority 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, including income from the investment
of those proceeds.
(b) The pledge of the retail transactions and use tax revenues for
the limited tax bonds authorized under this chapter shall have
priority over the use of any of the tax revenues for "pay-as-you-go"
financing, or any other purposes except to the extent that that
priority is expressly restricted in the resolution authorizing the
issuance of the bonds.
55803. Limited tax bonds issued under this chapter may be used only
for the following purposes:
(a) To finance the capital outlay expenditures to carry out the
purposes of the retail transactions and use tax imposed by the
authority.
(b) To pay costs incurred in the issuance of the limited tax
bonds.
(c) To fund a reserve fund for the limited tax bonds.
55804. Limited tax bonds shall be issued pursuant to a resolution
adopted at any time, and from time to time, by a two-thirds vote of
the governing board of the authority, provided voter approval
authorizing the issuance of bonds by the authority has been obtained
by a majority vote, except as provided in paragraph (2) of
subdivision (a) of Section 55800. 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.
55805. (a) A resolution providing for the issuance of bonds
pursuant to this chapter 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 costs 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 rate allowed by Section 53531, payable at
intervals determined by the authority.
(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, 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.
55806. The authority may provide for the limited tax bonds to bear
a variable or fixed interest rate, for the manner and intervals in
which the rate shall vary, and for the dates on which the interest
shall be payable.
55807. (a) In the resolution authorizing the issuance of the bonds,
the authority 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.
(b) Notwithstanding the provisions of subdivision (a), 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 therein.
55808. The principal of, and interest on, the bonds, shall be
payable in lawful money of the United States at the office of the
treasurer or auditor-controller of the authority, 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.
55809. (a) The bonds, or each series thereof, shall be signed by
the chairperson or vice chairperson of the governing board of the
authority or the treasurer or auditor-controller of the authority,
and the official seal, if any, of the authority shall be attached.
(b) The interest coupons, if any, of the bonds shall be signed by
the treasurer or auditor-controller of the authority. All of the
signatures and the seal may be printed, lithographed, photocopied, or
mechanically reproduced. However, the bonds shall not be valid or
become obligatory for any purpose until manually signed by an
authenticating agent or trustee duly appointed by the authority or
its authorized designee.
(c) 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.
55810. The bonds may be sold as the authority determines by
resolution, and the bonds may be sold at a price above or below par,
whether by negotiated or public sale.
55811. Delivery of any bonds issued pursuant to this chapter may be
made at any place either inside or outside the state, and the
purchase price may be received in cash or bank credits.
55812. 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
authority or deposited with a bond trustee 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 or redemption premium 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 authority.
Bonds so purchased shall be canceled immediately.
55813. (a) The authority may provide for the issuance, sale, or
exchange of refunding bonds to redeem or retire any bonds issued by
the authority upon the terms, at the times and in the manner which it
determines.
(b) The proceeds of any bonds issued for the purpose of refunding
outstanding bonds may, in the discretion of the authority, be applied
to the purchase or retirement at maturity or redemption of
outstanding bonds either on their earliest or any subsequent
redemption date or upon the purchase or retirement at the maturity
thereof and may, pending that application, be placed in escrow to be
applied to the purchase or retirement at maturity or redemption on
the date as may be determined by the authority.
(c) Pending that use, the escrowed proceeds may be invested and
reinvested by the authority or its trustee in obligations of, or
guaranteed by, the United States, or in certificates of deposits or
time deposits secured by obligations of, or guaranteed by, the United
States, maturing at a time or times appropriate to ensure the prompt
payment of principal, interest, and redemption premium, if any, of
the outstanding bonds to be so refunded. The interest, income, and
profits, if any, earned or realized on the investment may also be
applied to the payment of the outstanding bonds to be so refunded.
After the terms of the escrow have been fully satisfied and carried
out, any balance of the proceeds and interest, income, and profits,
if any, earned or realized on the investment thereof may be returned
to the authority for use by it in any lawful manner.
55814. 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:
(a) 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 holder of the bonds.
(b) 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.
55815. (a) The authority 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 authority available therefor, including
the revenues from the retail transactions and use 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 authority 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 authority
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 authority may contain.
55816. Any limited tax bonds issued pursuant to this chapter are a
legal investment for all trust funds, for the funds of insurance
companies, commercial and savings banks, and trust companies, and for
state school funds. Whenever any money or funds may, by any law now
or hereafter enacted, be invested in bonds of cities, cities and
counties, counties, school districts, or other districts within the
state, that money or funds may be invested in the bonds issued
pursuant to this chapter. Whenever bonds of cities, cities and
counties, counties, school districts, or other districts within this
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 moneys,
the bonds issued pursuant to 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.
55817. Notwithstanding any other provision of law:
(a) The authority and its revenues are exempt from all taxes on,
or measured by, income.
(b) Bonds issued by the authority are exempt from all property
taxation, and the interest on the bonds is exempt from all taxes on
income.
(c) All property owned by the agency is exempt from property
taxes, assessments, and other public charges secured by liens.
55818. (a) Bonds issued pursuant to this chapter do not constitute
a debt or liability of the state or of any other public agency, other
than the authority issuing the bonds, or a pledge of the faith and
credit of the state or of any other public agency, other than the
issuing authority, but shall be payable solely from the funds
provided therefor. All of the bonds shall contain on the face thereof
a statement to the following effect:
"Neither the faith and credit nor the taxing power of the State of
California or any public agency, other than the (name of the issuing
authority), is pledged to the payment of the principal of or
interest on this bond."
(b) The issuance of bonds pursuant to this chapter does not in any
manner obligate the state or any other public agency thereof to
levy, or to pledge, any form of taxation therefor or to make any
appropriation for their payment.
55819. 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 pursuant to Chapter 9 (commencing with
Section 860) of Title 10 of Part 2 of the Code of Civil Procedure
within six months from the date of the election at which the
ordinance is approved or, in the case of any ordinance approved prior
to the effective date of this section, six months from the effective
date of this section. Otherwise, the bonds and all proceedings in
relation thereto, including the adoption and approval of the
ordinance and the retail transactions and use tax provided for
therein, shall be held to be valid and in every respect legal and
incontestable.
55820. The authority has no power to impose any tax other than the
transactions and use tax imposed upon approval of the voters in
accordance with this chapter.
55821. If any provision of this chapter or the application thereof
to any person or circumstance is held invalid, that invalidity shall
not affect other provisions or applications of the chapter which can
be given effect without the invalid provision or application, and to
this end the provisions of this chapter are severable.
55800. (a) (1) As part of the ballot proposition to approve the
imposition of a retail transactions and use tax pursuant to Chapter 2
(commencing with Section 7285) of Part 1.7 of Division 2 of the
Revenue and Taxation Code, an authority established pursuant to
Section 7285.5 of the Revenue and Taxation Code may seek
authorization to issue bonds payable from the proceeds of the tax to
finance capital outlay expenditures as may be provided for in the
expenditure plan adopted pursuant to subdivision (c) of Section
7285.5 of the Revenue and Taxation Code.
(2) If an authority established pursuant to Section 7285.5 of the
Revenue and Taxation Code has obtained voter approval prior to the
effective date of this chapter for the imposition of a retail
transactions and use tax pursuant to Chapter 2 (commencing with
Section 7285) of Part 1.7 of Division 2 of the Revenue and Taxation
Code and the issuance of bonds payable from the proceeds of the tax,
that authority may issue bonds, refunding bonds, and bond
anticipation notes pursuant to this chapter to finance capital outlay
expenditures as may be provided for in the expenditure plan adopted
pursuant to subdivision (c) of Section 7285.5 of the Revenue and
Taxation Code.
(3) If an authority established pursuant to Section 7285.5 of the
Revenue and Taxation Code has obtained voter approval prior to the
effective date of this chapter only for the imposition of a retail
transactions and use tax pursuant to Chapter 2 (commencing with
Section 7285) of Part 1.7 of Division 2 of the Revenue and Taxation
Code, that authority may seek authorization to issue bonds pursuant
to this chapter payable from the proceeds of the tax to finance
capital outlay expenditures as may be provided for in the expenditure
plan adopted pursuant to subdivision (c) of Section 7285.5 of the
Revenue and Taxation Code only if a resolution is adopted by
two-thirds vote of the governing body of the authority and approved
by a majority of the voters.
(b) The maximum indebtedness which 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) (1) A county authorized to levy, increase, or extend a
transactions and use tax pursuant to Section 7285.5 of the Revenue
and Taxation Code may issue bonds pursuant to this chapter, and for
the purposes of this chapter shall be deemed an authority.
(2) The authorizations contained in this chapter shall apply to
any tax levied, increased, or extended by a county pursuant to
Section 7285.5 of the Revenue and Taxation Code on or after January
1, 2002.
55802. (a) The bonds authorized by the voters pursuant to Section
55800 may be issued at any time by the authority 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, including income from the investment
of those proceeds.
(b) The pledge of the retail transactions and use tax revenues for
the limited tax bonds authorized under this chapter shall have
priority over the use of any of the tax revenues for "pay-as-you-go"
financing, or any other purposes except to the extent that that
priority is expressly restricted in the resolution authorizing the
issuance of the bonds.
55803. Limited tax bonds issued under this chapter may be used only
for the following purposes:
(a) To finance the capital outlay expenditures to carry out the
purposes of the retail transactions and use tax imposed by the
authority.
(b) To pay costs incurred in the issuance of the limited tax
bonds.
(c) To fund a reserve fund for the limited tax bonds.
55804. Limited tax bonds shall be issued pursuant to a resolution
adopted at any time, and from time to time, by a two-thirds vote of
the governing board of the authority, provided voter approval
authorizing the issuance of bonds by the authority has been obtained
by a majority vote, except as provided in paragraph (2) of
subdivision (a) of Section 55800. 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.
55805. (a) A resolution providing for the issuance of bonds
pursuant to this chapter 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 costs 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 rate allowed by Section 53531, payable at
intervals determined by the authority.
(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, 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.
55806. The authority may provide for the limited tax bonds to bear
a variable or fixed interest rate, for the manner and intervals in
which the rate shall vary, and for the dates on which the interest
shall be payable.
55807. (a) In the resolution authorizing the issuance of the bonds,
the authority 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.
(b) Notwithstanding the provisions of subdivision (a), 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 therein.
55808. The principal of, and interest on, the bonds, shall be
payable in lawful money of the United States at the office of the
treasurer or auditor-controller of the authority, 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.
55809. (a) The bonds, or each series thereof, shall be signed by
the chairperson or vice chairperson of the governing board of the
authority or the treasurer or auditor-controller of the authority,
and the official seal, if any, of the authority shall be attached.
(b) The interest coupons, if any, of the bonds shall be signed by
the treasurer or auditor-controller of the authority. All of the
signatures and the seal may be printed, lithographed, photocopied, or
mechanically reproduced. However, the bonds shall not be valid or
become obligatory for any purpose until manually signed by an
authenticating agent or trustee duly appointed by the authority or
its authorized designee.
(c) 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.
55810. The bonds may be sold as the authority determines by
resolution, and the bonds may be sold at a price above or below par,
whether by negotiated or public sale.
55811. Delivery of any bonds issued pursuant to this chapter may be
made at any place either inside or outside the state, and the
purchase price may be received in cash or bank credits.
55812. 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
authority or deposited with a bond trustee 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 or redemption premium 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 authority.
Bonds so purchased shall be canceled immediately.
55813. (a) The authority may provide for the issuance, sale, or
exchange of refunding bonds to redeem or retire any bonds issued by
the authority upon the terms, at the times and in the manner which it
determines.
(b) The proceeds of any bonds issued for the purpose of refunding
outstanding bonds may, in the discretion of the authority, be applied
to the purchase or retirement at maturity or redemption of
outstanding bonds either on their earliest or any subsequent
redemption date or upon the purchase or retirement at the maturity
thereof and may, pending that application, be placed in escrow to be
applied to the purchase or retirement at maturity or redemption on
the date as may be determined by the authority.
(c) Pending that use, the escrowed proceeds may be invested and
reinvested by the authority or its trustee in obligations of, or
guaranteed by, the United States, or in certificates of deposits or
time deposits secured by obligations of, or guaranteed by, the United
States, maturing at a time or times appropriate to ensure the prompt
payment of principal, interest, and redemption premium, if any, of
the outstanding bonds to be so refunded. The interest, income, and
profits, if any, earned or realized on the investment may also be
applied to the payment of the outstanding bonds to be so refunded.
After the terms of the escrow have been fully satisfied and carried
out, any balance of the proceeds and interest, income, and profits,
if any, earned or realized on the investment thereof may be returned
to the authority for use by it in any lawful manner.
55814. 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:
(a) 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 holder of the bonds.
(b) 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.
55815. (a) The authority 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 authority available therefor, including
the revenues from the retail transactions and use 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 authority 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 authority
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 authority may contain.
55816. Any limited tax bonds issued pursuant to this chapter are a
legal investment for all trust funds, for the funds of insurance
companies, commercial and savings banks, and trust companies, and for
state school funds. Whenever any money or funds may, by any law now
or hereafter enacted, be invested in bonds of cities, cities and
counties, counties, school districts, or other districts within the
state, that money or funds may be invested in the bonds issued
pursuant to this chapter. Whenever bonds of cities, cities and
counties, counties, school districts, or other districts within this
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 moneys,
the bonds issued pursuant to 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.
55817. Notwithstanding any other provision of law:
(a) The authority and its revenues are exempt from all taxes on,
or measured by, income.
(b) Bonds issued by the authority are exempt from all property
taxation, and the interest on the bonds is exempt from all taxes on
income.
(c) All property owned by the agency is exempt from property
taxes, assessments, and other public charges secured by liens.
55818. (a) Bonds issued pursuant to this chapter do not constitute
a debt or liability of the state or of any other public agency, other
than the authority issuing the bonds, or a pledge of the faith and
credit of the state or of any other public agency, other than the
issuing authority, but shall be payable solely from the funds
provided therefor. All of the bonds shall contain on the face thereof
a statement to the following effect:
"Neither the faith and credit nor the taxing power of the State of
California or any public agency, other than the (name of the issuing
authority), is pledged to the payment of the principal of or
interest on this bond."
(b) The issuance of bonds pursuant to this chapter does not in any
manner obligate the state or any other public agency thereof to
levy, or to pledge, any form of taxation therefor or to make any
appropriation for their payment.
55819. 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 pursuant to Chapter 9 (commencing with
Section 860) of Title 10 of Part 2 of the Code of Civil Procedure
within six months from the date of the election at which the
ordinance is approved or, in the case of any ordinance approved prior
to the effective date of this section, six months from the effective
date of this section. Otherwise, the bonds and all proceedings in
relation thereto, including the adoption and approval of the
ordinance and the retail transactions and use tax provided for
therein, shall be held to be valid and in every respect legal and
incontestable.
55820. The authority has no power to impose any tax other than the
transactions and use tax imposed upon approval of the voters in
accordance with this chapter.
55821. If any provision of this chapter or the application thereof
to any person or circumstance is held invalid, that invalidity shall
not affect other provisions or applications of the chapter which can
be given effect without the invalid provision or application, and to
this end the provisions of this chapter are severable.
