6540. As used in this article "bonds" means revenue bonds, notes or
other evidences of indebtedness.
6541. "Bondholder" or "holder of bonds" or any similar term, as
used in this article, shall mean any person who shall be the bearer
of any outstanding revenue bond or the owner of bonds which shall at
the time be registered to other than to bearer.
6542. "Entity" as used in this article means any agency, board or
commission provided for by a joint powers agreement pursuant to
Article 1 of this chapter. Such agency, board or commission is an
entity separate from the public agencies which are parties to such
agreement.
6542.1. "Fair and exhibition authority," as used in this article,
means an entity created by a joint powers agreement for the purpose
of financing or otherwise facilitating agricultural, livestock,
industrial, cultural, or other types of fairs or exhibitions.
6542.5. "Local agency" as used in this article means any public
agency designated in Section 6500 other than the federal government
or any federal department or agency, this state, an adjoining state,
or any state department or agency.
6543. "Governing body" as used in this article means the board or
commission provided for by a joint powers agreement, pursuant to
Article 1 of this chapter.
6544. "Indenture" as used in this article means the instrument
providing the terms and conditions for the issuance of the revenue
bonds, and may be a resolution, order, agreement or other instrument.
6545. "Project" as used in this article includes buildings,
structures, improvements and all facilities appurtenant thereto or
provided therefor together with land and offstreet parking facilities
necessary therefor to be financed by revenue bonds issued pursuant
to this article. In addition, with respect to a facility for the
generation or transmission of electric energy, a project also
includes an ownership interest or a capacity right in that facility
that may be situated in whole or in part within or without the state.
In addition, with respect to a telecommunication system or service,
a project also includes a contract for the installation, provision,
or maintenance of that system or service. In addition, a project also
includes any of the purposes specified in an agreement pursuant to
Section 6516.
6546. In addition to other powers, any agency, commission, or board
provided for by a joint powers agreement pursuant to Article 1
(commencing with Section 6500) may issue revenue bonds pursuant to
this article to pay the cost and expenses of acquiring or
constructing a project or conducting a program for any or all of the
following purposes:
(a) An exhibition building or other place for holding fairs or
exhibitions for the display of agricultural, livestock, industrial,
or other products, including movable equipment, entertainment
facilities, and other facilities to be used in conjunction with
holding a fair or exposition in several locations including those
projects and facilities specified in paragraph (1) of subdivision (a)
of Section 19606.1 of the Business and Professions Code, that
project and facility authorized by Article 3.5 (commencing with
Section 4161) of Chapter 6 of Part 3 of Division 3 of the Food and
Agricultural Code, and for those purposes specified in an agreement
pursuant to Section 6516 of the Government Code.
(b) A coliseum, a stadium, a sports arena or sports pavilion or
other building for holding sports events, athletic contests, contests
of skill, exhibitions, spectacles, and other public meetings.
(c) Any other public buildings, including, but not limited to,
general administrative facilities of a city, county, city and county,
special district, or authority.
(d) A regional or local public park, recreational area, or
recreational center, and all facilities and improvements related
thereto.
(e) A facility for the generation or transmission of electrical
energy for public or private uses and all rights, properties, and
improvements necessary therefor, including fuel and water facilities
and resources. As used in this chapter, "transmission of electric
energy" does not include the final distribution of electric energy to
the consumer.
(f) A facility for the disposal, treatment, or conversion to
energy and reusable materials of solid or hazardous waste or toxic
substances.
(g) Facilities for the production, storage, transmission, or
treatment of water or waste water.
(h) Local streets, roads, and bridges.
(i) Bridges and major thoroughfares construction pursuant to
Sections 50029 and 66484.3.
(j) Mass transit facilities or vehicles.
(k) Publicly owned or operated commercial or general aviation
airports and airport-related facilities.
(l) Police or fire stations.
(m) Public works facilities, including corporation yards.
(n) Public health facilities owned or operated by a city, county,
city and county, special district, or authority.
(o) Criminal justice facilities, including court buildings, jails,
juvenile halls, and juvenile detention facilities.
(p) Public libraries.
(q) Publicly owned or operated parking garages.
(r) Low-income housing projects owned or operated by a city,
county, city and county, or housing authority.
(s) Public improvements authorized in a project area created
pursuant to the Community Redevelopment Law, Part 1 (commencing with
Section 33000) of Division 24 of the Health and Safety Code.
(t) Public improvements authorized pursuant to the Improvement Act
of 1911, Division 7 (commencing with Section 5000) of the Streets
and Highways Code, the Improvement Bond Act of 1915, Division 10
(commencing with Section 8500) of the Streets and Highways Code, the
Municipal Improvement Act of 1913, Division 12 (commencing with
Section 10000) of the Streets and Highways Code, and the Mello-Roos
Community Facilities Act of 1982, Chapter 2.5 (commencing with
Section 53311) of Part 1 of Division 2 of Title 5.
(u) Telecommunication systems or service, including, but not
limited to, the installation, provision, or maintenance of that
system or service.
(v) Programs, facilities, rights, properties, and improvements for
the management, conservation, reuse, or recycling of electric
capacity or energy, natural gas, water, waste water, or recycled
water, including demand side or load management and other programs
and facilities designed to reduce the demand for, or permit or
promote the efficient use of, those resources.
"Programs," for the purpose of this subdivision, shall include
activities only to the extent the costs thereof may be charged to a
capital account under applicable generally accepted accounting
principles or are of a type required to be charged to a capital
account by entities subject to regulation by the Public Utilities
Commission or other regulatory body of the state.
(w) Equipment necessary to support the above-listed facilities or
necessary to deliver public services therefrom, including, but not
limited to, telecommunications equipment, computers, and service
vehicles.
Bonds may be issued pursuant to this article if the joint powers
entity, or its individual parties which contract pursuant to Section
6547.5, 6547.6, or 6547.7 to make payments to be applied to the
payment of the indebtedness, have the power to acquire, construct,
maintain, or operate one or more of the projects specified in this
section.
6546.1. In the County of Los Angeles, any agency, commission, or
board provided for by joint powers agreement entered into by cities
pursuant to Article 1 (commencing with Section 6500) of this chapter
for the purpose of the acquisition, operation, repair, maintenance,
improvement and administration of the Hollywood-Burbank Airport as a
public airport, pursuant to the Federal Aviation Act of 1958, as
amended, may carry out such purpose and may authorize the issuance of
revenue bonds, pursuant to this article, to pay for acquiring,
repairing, improving, financing and refinancing such project
including all facilities and improvements and all expenses incidental
thereto or connected therewith. Property tax revenues accruing to,
levied by, or collected by any local agency which is a party to such
a joint powers agreement shall not be used to redeem such revenue
bonds unless an ordinance authorizing the use of such property tax
revenues for such purposes is approved by a majority vote of the
electors of the local agency voting on the issue. In operating the
airport, the separate public entity above mentioned shall not permit
or authorize any activity in conjunction with the airport which
results in an increase in the size of the noise impact area based on
a community noise equivalent level of 70 decibels as established
pursuant to Title 21, California Administrative Code, Chapter 2.5,
Subchapter 6, and shall further comply with the future community
noise equivalent levels prescribed by such title as it now exists or
is hereafter amended.
The separate public entity shall implement the noise monitoring
requirements set forth in Title 21, California Administrative Code,
Chapter 2.5, Subchapter 6. In addition, the entity shall diligently
pursue all reasonable avenues available to insure that the adverse
effects of noise are being mitigated to the greatest extent
reasonably possible.
The separate public entity shall not authorize or permit the
lengthening of runways defined herein as the paved portions of the
runways presently on airport property, or the purchase of fee title
to condemned real property zoned for residential use as of the
effective date of this statute.
The power to issue revenue bonds under this section shall be of no
further force and effect after December 31, 1980, unless (1) the
entity shall have initially issued revenue bonds on or prior to
December 31, 1980, or (2) the entity is unable to initially issue
revenue bonds to accomplish the purpose of this section by reason of
litigation, in which case the power to initially issue revenue bonds
under this section shall continue to be effective until the final
determination of such litigation and for one year thereafter. If the
entity shall have initially issued revenue bonds within either of the
time periods permitted by the prior sentence of this paragraph, the
power to issue revenue bonds under this section shall continue so
long as this section shall be in effect.
6546.2. In addition to other powers, any agency, commission or
board provided for by joint powers agreement pursuant to Article 1
(commencing with Section 6500) of this chapter and created in a
county of the third class as determined by Sec. 28020 may, by
ordinance, authorize the issuance of revenue bonds pursuant to this
article to pay the cost and expenses of acquiring or improving a
regional public park or regional public recreation area and all
facilities and improvements related thereto.
6546.3. Notwithstanding any other provision of law, any local
agency entering into one or more leases or rental contracts or
agreements with a joint powers entity formed for the purposes
specified in Section 6546.2 shall do so only following the effective
date of an ordinance adopted by the governing body of the local
agency authorizing the local agency to enter into one or more such
leases or rental contracts or agreements. Any ordinance adopted
pursuant to this section shall not take effect until and unless it
shall first have been approved by a majority of the voters of the
local agency. The ordinance submitted to the voters shall, in general
terms:
(a) Describe the property or facilities to be leased or rented.
(b) State the maximum time period for which the lease or rental
contract or agreement will run.
(c) State the maximum amount to be paid by the local agency to the
joint powers entity under the lease or rental contract or agreement
and the maximum yearly or monthly payments to be made thereon.
In the event that the governing body of the local agency desires
to levy, or have levied on its behalf, a property tax rate in
addition to the maximum property tax rate established pursuant to
Article 4 (commencing with Section 2260) of Chapter 3 of Part 4 of
Division 1 of the Revenue and Taxation Code, to provide funds for the
preparation of plans and specifications, the payment of rentals and
other amounts payable by the local agency under any such lease or
rental contract or agreement or the payment of other costs and
expenses related to the operation or maintenance of the regional
public park or regional public recreation area, the governing body
may specify in the ordinance to be submitted to the voters the
additional property tax rate to be authorized for such purposes and
the number of years for which such additional property tax rate shall
be authorized. The revenue from such an additional property tax rate
shall be used only for the purposes specified in the ordinance. Such
additional property tax rate, when levied, shall be reported to the
State Controller as provided in Section 2325 of the Revenue and
Taxation Code.
As used in this section, "property tax rate" shall have the
meaning specified in Section 2213 of the Revenue and Taxation Code.
For purposes of this section "lease or rental contract or
agreement" means any lease, sublease, contract or other agreement
involving land or buildings, structures or other facilities which are
permanently attached to land, where the lease, sublease, contract or
agreement is made directly or indirectly between a local agency and
a joint powers entity, if the proceeds of the lease, sublease,
contract or agreement provided by the local agency will be used in
whole or in part by such joint powers entity for payment of principal
or interest on any bonds issued by it pursuant to Section 6546.2.
6546.4. The governing body of any local agency adopting an
ordinance pursuant to Section 6546.3 shall call an election for
purposes of submitting to the qualified electors of the agency the
question of whether the ordinance shall be adopted. Such election
shall be called, held, conducted and the votes canvassed in the same
manner, or as near thereto as is possible, as an election at which
the local agency submits a general obligation bond proposal to its
voters.
For purposes of this section the voters of the local agency shall
be the voters entitled to vote at elections for members of the
governing board of the agency, if the agency has an elected governing
board, and the vote of each such voter shall be given the same
weight as it would be given in an election for members of the
governing board. If a local agency does not have an elected governing
board, the voters of the agency shall be the voters residing within
the boundaries of the agency who would be qualified to vote for
candidates for Governor at any gubernatorial election. If a majority
of the votes cast within a local agency are for adoption of the
ordinance, the ordinance shall be deemed adopted; provided, however,
that the ordinance shall not take effect until a certified copy of
the record of the final canvass of votes is filed with the Secretary
of State.
If a local agency does not have statutory power to introduce an
ordinance and submit it to the voters of the agency, the governing
body of such local agency may introduce and submit such ordinance at
any regular meeting by the approving votes of a majority of all of
its members.
6546.5. In the event that two-thirds of the votes cast in an
election called pursuant to Section 6546.4 are against adoption of
the ordinance, no ordinance authorizing the local agency to enter
into a lease or rental contract or agreement for the same or
substantially the same purpose shall be submitted to the voters of
that local agency for a period of one year from the date of the
election.
6546.5. For purposes of an agency, commission, or board that is
authorized pursuant to subdivision (g) of Section 6546 to issue
revenue bonds for facilities for the production, storage,
transmission, or treatment of water or waste water, that authority
includes the authority to issue revenue bonds for facilities to
remove hazardous substances, pollutants, or contaminants from that
water.
6546.6. In addition to any other powers, any agency, commission, or
board provided for by joint powers agreement entered into by cities
pursuant to Article 1 (commencing with Section 6500) and created in a
county of the fifth class, as determined by Section 28020, may issue
revenue bonds pursuant to this article to pay all or part of the
cost and expenses of acquiring, constructing, or improving,
facilities for the collection, treatment or disposal of sewage,
waste, or stormwater, provided that entity has the power to
construct, maintain, or operate the facilities.
6546.7. Public agencies may enter into a joint powers agreement for
the purposes of creating a fair and exhibition authority with the
power to issue revenue bonds for financing projects under this
article. A fair and exhibition authority of which the Department of
Food and Agriculture is a contracting party, may contract with citrus
fruit fairs for the financing of projects for such fairs and may
issue revenue bonds for such purpose. A fair and exhibition authority
of which a county is a contracting party, which county contracts
with a nonprofit corporation to conduct a fair pursuant to Sections
25905 and 25906 of the Government Code, or any similar or successor
provision, may contract with such nonprofit corporation for the
financing of projects for such fairs, and may issue revenue bonds for
such purpose.
6546.11. In addition to other powers, any joint powers entity
created to exercise the powers granted by Chapter 8 (commencing with
Section 33750) of Part 1 of Division 24 of the Health and Safety Code
or Part 13 (commencing with Section 37910) of Division 24 of the
Health and Safety Code, may issue revenue bonds for the purposes, and
in accordance with the procedures, specified in those statutory
provisions.
6546.12. In any county with a population determined by the last
official census of 4,000,000 or more, any agency, commission, or
board provided for by joint powers agreement entered into by cities
pursuant to Article 1 (commencing with Section 6500) for the purpose
of the acquisition of land, design, engineering, construction,
operation, maintenance, improvement, and administration of an
intermodal container transfer facility, may carry out that purpose
and may authorize the issuance of revenue bonds, pursuant to this
article, to pay for acquiring the land, designing, engineering,
constructing, and improving that project, including all facilities,
improvements, and all expenses incidental thereto or connected
therewith.
The power to issue revenue bonds under this section shall be of no
further force and effect after December 31, 1995, unless (1) the
entity has initially issued revenue bonds on or prior to December 31,
1995, or (2) the entity is unable to initially issue revenue bonds
to accomplish the purpose of this section by reason of litigation
relating to the initial issuance, in which case the power to
initially issue revenue bonds under this section shall continue to be
effective until the final determination of that litigation and for
one year thereafter. If the entity has initially issued revenue bonds
within either of the time periods permitted by the prior sentence of
this paragraph, the power to issue subsequent issues of revenue
bonds under this section shall continue so long as this section shall
be in effect.
6546.13. (a) The Alameda Corridor Transportation Authority, or its
successor organization, may issue revenue bonds pursuant to this
article or bonds pursuant to Article 4 (commencing with Section
6584), for the limited purpose of paying for acquiring the land, and
designing, engineering, constructing, and improving that project,
including all facilities and improvements of the consolidated
transportation corridor, and including all associated financing
costs. Ineligible expenses shall include any expenses for the
maintenance, operations, and administration of the consolidated
transportation corridor.
(b) For the purposes of this section, "consolidated transportation
corridor" means a transportation corridor created to improve highway
or rail access to the Ports of Long Beach and Los Angeles.
(c) Anticipated sources of revenue or other funds to pay the
principal of and interest on the bonds authorized by this section may
include a pledge or revenues from the Ports of Long Beach and Los
Angeles, railroad use fees, truck fees, and pledges from other public
and private sources.
(d) Any joint powers entity seeking authorization to issue revenue
bonds pursuant to this section shall do so in compliance with
Sections 6547 and 6547.5.
(e) Any joint powers entity under this section seeking to issue
bonds pursuant to the Marks-Roos Local Bond Pooling Act of 1985
(Article 4 (commencing with Section 6584)) shall do so in compliance
with all of the provisions under Article 4 (commencing with Section
6584).
(f) The authority to issue revenue bonds under this article or
bonds under Article 4 (commencing with Section 6584) shall be of no
further force and effect after December 31, 2015, unless (1) the
joint powers authority has initially issued revenue bonds or bonds on
or prior to December 31, 2015, or (2) the joint powers authority is
unable to initially issue revenue bonds or bonds to accomplish the
purpose of this section by reason of litigation relating to the
initial issuance, in which case the authority to initially issue
revenue bonds under this article and bonds under Article 4
(commencing with Section 6584) shall continue to be effective until
the final determination of that litigation and for one year
thereafter. If the joint powers authority has initially issued
revenue bonds or bonds within either of the time periods permitted by
this subdivision, the authority to issue subsequent issues of
revenue bonds or bonds and to refund any issue of revenue bonds under
this article or bonds under Article 4 (commencing with Section 6584)
shall continue as long as initially issued revenue bonds or bonds
remain outstanding and unpaid.
6547. The power of the entity to issue revenue bonds is additional
to the powers common to the parties to the joint powers agreement,
but shall not be exercised until authorized by the parties to that
agreement. However, in the case of the issuance of revenue bonds by a
fair and exhibition authority this authorization shall not be
required. In the case of the issuance of revenue bonds by an entity
created pursuant to this chapter to construct bridges and major
thoroughfares, as referred to in Section 66484.3, the power of the
entity to issue revenue bonds shall be exercised by a resolution
adopted by a majority vote of the governing body of the entity during
a regular meeting held pursuant to Section 54954. However, no member
of the entity may vote on the question of bond issuance unless the
member has been authorized to vote on that particular question by
previous resolution of the public agency the member represents. In
the case of the issuance of revenue bonds by an entity created
pursuant to this chapter to carry out a consolidated transportation
corridor project, as referred to in Section 6546.13, the power of the
entity to issue revenue bonds shall be exercised by a resolution
adopted by a majority vote of the governing body of the entity. In
the case of a project for the generation or transmission of electric
energy or a project for the disposal, treatment, or conversion to
energy and reusable materials of solid waste, or a project for an
intermodal container transfer facility, or a project for the
construction of bridges and major thoroughfares pursuant to Section
66484.3, this power shall include the power to issue notes for the
purpose of financing studies, the acquisition of options, permits,
and other preliminary costs to be incurred prior to the undertaking
of the construction or acquisition of a project, and for the purpose
of providing temporary financing of costs of construction or
acquisition of a project. These notes may be issued at public or
private sale, and may be renewed from time to time, and the principal
and interest with respect thereto may be made payable from the
revenues of the entity unless paid from the proceeds of revenue
bonds.
Every local agency shall make any authorization, as permitted
under the first sentence of this section, by ordinance, unless
otherwise prescribed in this section. Except as provided in this
section, the ordinance shall describe in general terms the project,
or projects, to be funded by the revenue bonds, the maximum amount of
the bonds proposed to be issued, and the anticipated sources of
revenue to redeem the bonds. In the case of a project for the
generation or transmission of electric energy or a project for the
disposal, treatment, or conversion to energy and reusable materials
of solid waste, or a project for an intermodal container transfer
facility, or a project for the construction of bridges and major
thoroughfares pursuant to Section 66484.3, the ordinance shall
describe in general terms the project or the studies or other
preliminary costs therefor to be funded by the revenue bonds or
notes, the estimate of the maximum amount of bonds to be issued for
the project or the studies or other preliminary costs, and the
anticipated sources of revenue or other funds to pay the principal of
and interest on the bonds or notes. In the case of a project for a
consolidated transportation corridor pursuant to Section 6546.13, the
authorizing resolution shall describe in general terms, the project
or projects to be funded by the revenue bonds, the maximum amount of
bonds proposed to be issued for the project or projects, and the
anticipated sources of revenue or other funds to pay the principal of
and interest on the bonds. However, the statement of the estimated
maximum amount of the bonds or notes shall not be deemed to prevent
the authorization by the ordinance of the issuance of bonds or notes
by the entity in amounts that may exceed the estimate without further
authorization under the ordinance if and to the extent the
additional bonds or notes shall be required to complete the financing
of the project or the studies or other preliminary costs. Each
ordinance shall state that it is subject to the provisions for
referendum prescribed by Section 9142 of the Elections Code.
A separate authorization shall be required for each separate bond
issue proposed by the entity, except that, in the case of a project
for the generation or transmission of electric energy or a project
for the disposal, treatment, or conversion to energy and reusable
materials of solid waste, or a project for an intermodal container
transfer facility, or a project for the construction of bridges and
major thoroughfares pursuant to Section 66484.3, a single
authorization shall be sufficient for bonds that may be issued in
installments from time to time for a project or the costs of studies
or other preliminary costs therefor that shall be identified in the
authorization.
The requirement of an ordinance and the right to referendum
thereon shall not apply to the issuance of revenue bonds if, prior to
March 4, 1971, one or more local or public agencies shall have taken
formal action to implement any one or more projects to be acquired
or constructed pursuant to a joint powers agreement. Formal action to
implement any one or more projects shall include, but not be limited
to, any of the following:
(a) The incurring of liability for a substantial portion of an
architectural or engineering contract or other contract relating to a
project.
(b) The acquisition of land or improvements for the project.
(c) The making of a substantial contribution toward the project.
Notwithstanding the requirement that parties to a joint powers
agreement authorize the issuance of revenue bonds, in the case of a
project that consists of the generation or transmission of electric
energy financed in whole or in part by the issuance of revenue bonds,
only those local agencies that contract to make payments to be
applied to the payment of the revenue bonds shall be required to
authorize the issuance of the revenue bonds.
Any authorizations required by this section for the issuance of
revenue bonds to construct bridges and major thoroughfares projects
pursuant to Section 50029 or 66484.3 may be by ordinance or
resolution.
6547.1. Any entity which shall have been authorized to exercise the
power to issue revenue bonds pursuant to this article shall have the
further additional power to incur other forms of indebtedness
pursuant to this section. Said further additional power shall not be
exercised until authorized by the parties to the agreement. Said
indebtedness may be evidenced by one or more bonds of any
denomination issued pursuant to this article, or may consist of a
note, warrant or other evidence of indebtedness which may be secured
by a pledge, with the power of sale, of all or any part of bonds
theretofore authorized or issued under this article. Said bond or
bonds, or notes, warrants, or other evidences of indebtedness may be
issued in negotiable form, in which case they shall be negotiable.
The resolution authorizing the incurring of an indebtedness pursuant
to this section may make any of the covenants and provide any of the
terms or conditions authorized to be made or provided for in the case
of bonds issued under this article, may provide for the sale or
other disposition of any pledged bonds, and may contain any other
covenant, term or condition which the governing body of the entity
deems necessary or desirable to facilitate the incurring of said
indebtedness or for the protection of the lender. Any such
indebtedness shall be payable only from such sources as are
authorized under this article for the payment of principal and
interest on bonds or from the proceeds of refunding bonds issued
pursuant to this article. Such indebtedness of the entity shall not
constitute a debt, liability or obligation of any of the public
agencies who are parties to the agreement creating such entity.
6547.2. Notice of the enactment of an ordinance subject to
referendum under Section 6547 shall be published after adoption as
required by Section 6040.1 within 15 days after the adoption of the
ordinance.
If a local agency does not otherwise have statutory power to enact
an ordinance pursuant to Section 6547, the governing body of the
local agency is hereby empowered to introduce and enact the ordinance
at any regular or adjourned regular meeting by the approving votes
of a majority of all of its members. If ordinances of a local agency
are not otherwise subject to referendum, then (1) the governing body
of the local agency may refer any ordinance enacted pursuant to
Section 6547 to the electors of the local agency in the same manner
as the board of supervisors of a county may refer county questions
pursuant to Section 9140 of the Elections Code, and (2) the electors
of the local agency shall have the right to petition for referendum
on the ordinance in the same manner and subject to the same rules as
are set forth in Sections 9141 to 9145, inclusive, of the Elections
Code, except that all computations referred to in those sections and
officers of the county mentioned in those sections shall be construed
to refer to comparable computations and officers of the local
agency. If the governing board of a local agency is an elected board
the electors of the local agency for the purposes of this section
shall be the electors of the territory entitled to vote at elections
for members of the governing board. If a local agency does not have
an elected governing board, the electors residing within the
boundaries of the local agency who would be qualified to vote for
candidates for Governor at any gubernatorial election shall be the
electors of the local agency for the purposes of this section.
6547.3. In the event that an ordinance enacted pursuant to Section
6547 authorizing the entity to issue revenue bonds is subjected to a
successful referendum election or is repealed or rescinded by a local
agency, no ordinance authorizing the entity to issue revenue bonds
for the same purpose shall be passed by that local agency for a
period of one year from the date of such referendum, repeal or
rescission.
6547.4. Except for the requirement of an ordinance and the right to
referendum thereon, the amendments to Section 6547 adopted at the
1971 Regular Session of the Legislature shall not limit or affect any
heretofore existing right of any public agency to be a party to a
joint powers agreement which authorizes an entity to issue bonds
under this article, including the right to accomplish a public
purpose of such public agency regardless of whether such public
agency is obligated to make any contribution or payment of public
funds or property.
6547.5. A joint powers entity created pursuant to this chapter may
issue revenue bonds pursuant to this article upon authorization by
ordinance of only those individual parties to the joint powers
agreement which contract to make payments to be applied to the
payment of the revenue bonds, provided that the nonparticipating
parties to the agreement incur no financial obligations under the
issuance.
6547.6. A joint powers entity created pursuant to this chapter may
incur other forms of indebtedness pursuant to Section 6547.1 for one
or more projects specified in Section 6546 upon authorization by
ordinance of only those individual parties to the joint powers
agreement which contract to make payments to be applied to the
payment of the instruments of indebtedness, provided that the
nonparticipating parties to the agreement incur no financial
obligations under such instruments of indebtedness.
6547.7. A joint powers entity created pursuant to this chapter may
issue mortgage revenue bonds pursuant to Part 5 (commencing with
Section 52000) of Division 31 of the Health and Safety Code and
industrial development bonds pursuant to the California Industrial
Development Financing Act (Title 10 (commencing with Section 91500)).
6547.8. No member of the governing body of the authority shall be
personally liable on the bonds or be subject to any personal
liability or accountability by reason of the issuance of bonds
pursuant to this chapter.
6547.9. The Treasurer is designated as an elected representative
for federal tax purposes of a joint powers agency created pursuant to
this chapter. In the discretion of the joint powers agency, the
Treasurer is authorized to approve or certify the issuance of bonds,
notes, or other evidence of indebtedness, issued by or on behalf of
that joint powers agency, to the extent this approval is required by
federal tax law.
6548. The revenue bonds may be issued to provide all or any part of
the funds required for the acquisition, construction and financing
of said project, including any or all expenses incidental thereto or
connected therewith, and such expenses may include engineering,
inspection, legal and fiscal agents' fees, costs of the issuance and
sale of said bonds, working capital, reserve fund, and bond interest
estimated to accrue during the construction period and for a period
of not to exceed 12 months after completion of construction. The
proceeds of the bonds shall be used only for the project provided for
in the indenture pursuant to which such revenue bonds are issued.
6548.5. The level of fees or charges imposed by, or on behalf of,
an agency or entity for the issuance of bonds pursuant to this
article shall be disclosed in a report of final sale submitted to the
California Debt and Investment Advisory Commission pursuant to
Chapter 11.5 (commencing with Section 8855) of Division 1 of Title 2.
6549. An indenture providing the terms and conditions for the
issuance of the bonds and the covenants relating thereto shall be
adopted in or approved by resolution. Such indenture shall describe
or state the revenues and funds from which the bonds shall be
payable. Such funds or revenues shall include the revenues derived
from the operation of the project or projects for which the bond
proceeds are used or expended and any other revenues derived
therefrom, and may also include revenue, including existing funds, of
the entity derived from any other building or buildings, coliseum,
stadium, facilities or other sources and any or all extensions or
renewals thereof.
6550. The principal and interest of the bonds shall be payable:
(a) First, out of the revenue derived from the operation of the
project or projects for which the bond proceeds were or are to be
used or expended, or any other revenues derived from said project;
(b) Second, from such other revenues, including existing funds, of
the entity as are described or stated as security for the bonds in
the indenture in accordance with Section 6549 hereof.
6551. Revenue bonds issued under this article and contracts or
obligations entered into to carry out the purposes for which bonds
are issued, payable in whole or in part from the proceeds of said
bonds, shall not constitute a debt, liability or obligation of any of
the public agencies who are parties to the agreement creating such
entity.
6552. All bonds issued by the entity shall contain a recital on
their face that neither the payment of the principal or any part
thereof nor any interest thereon constitutes a debt, liability or
obligation of any of the public agencies who are parties to the
agreement creating such entity.
6553. The indenture authorizing the issuance of the bonds shall
recite the objects and purposes for which the bonds are to be issued,
which may include any or all of the purposes stated in this article
and which shall comprise the project, the principal amount of the
bonds, the maximum rate of interest to be payable thereon which shall
not exceed the maximum rate permitted by Section 53531, payable at
the intervals which the governing body determines, and which may be
fixed or variable and simple or compound, the date or dates of issue
of the bonds, the maturity date or dates thereof, and the fund or
funds from which the bonds and the interest thereon and premiums upon
the redemption of any thereof are to be payable, and any other
provisions authorized by this article as the governing body of the
entity deems necessary or desirable. However, in the case of a
project for the generation or transmission of electric energy, the
maximum rate of interest shall not be applicable to bonds issued to
continue or complete financing of a project for which bonds shall
have theretofore been issued. The bonds shall be issued in negotiable
form and shall be negotiable. The recitals or regularity of
proceedings in any revenue bond issued and sold under this article
shall be conclusive evidence of compliance with this article and of
the validity of the bond. The bonds may be issued and sold to the
United States of America, or the State of California, or to any
appropriate department or agency thereof, to provide a source for the
payment of principal and interest on any loan made by the United
States of America, or the State of California, or agency thereof, to
any agency created by an agreement entered into pursuant to this
chapter.
6554. The indenture authorizing the issuance of such bonds shall
provide the denomination or denominations of the bonds, the medium of
payment of principal thereof and interest thereon, the place or
places of payment of said bonds and interest, which may be within or
without the State of California, the form of said bonds (including
recitals of regularity of the proceedings for the issuance thereof)
and of interest coupons appertaining thereto, the form, denominations
and conditions of any temporary bonds or interim certificates, and
the manual and facsimile signatures to be attached to the bonds or
certificates (one signature upon which must be manual) and the manual
or facsimile signature to be affixed to the interest coupons.
6555. In the indenture authorizing the issuance of said bonds the
governing body may also fix additional terms and conditions and may
in any article, section or clause thereof make such provision or
covenant as it may deem necessary or desirable to facilitate the
issuance and sale of the bonds or for the protection or security of
the holders thereof, including, without affecting the generality of
the foregoing, provision for any or all of the matters stated in
Sections 6556 to 6568 of this article.
6556. Said indenture may provide the terms and conditions under
which said bonds may be paid, redeemed before maturity (including the
premiums, if any, to be payable upon bonds redeemed prior to
maturity), exchanged, registered, transferred, and negotiated. No
bond shall be redeemable prior to maturity unless a statement
substantially to that effect is contained in the bond.
6557. Said indenture may include covenants or other provisions
relating to the bonds issued thereunder requiring the entity to fix,
prescribe and collect rates, tolls, fees, rentals or other charges in
connection with the services and facilities furnished from the
project acquired or constructed from the proceeds of bonds, and it
may require such rates, tolls, fees, rentals or other charges to be
sufficient to pay principal of and interest on the bonds as they
become due, together with all expenses of operation, maintenance and
repair of the project and such additional sums as may be required for
any sinking fund, reserve fund or other special fund provided for
the further security of such bonds, or as a depreciation charge or
other charge in connection with such project; provided, however, that
all rates, tolls, fees, rentals or other charges in connection with
the services and facilities furnished by the project shall be subject
to such provisions, if any, relative thereto as may be contained in
the contract or agreement between the public agencies creating such
entity.
6558. The indenture may include covenants or other provisions,
other than or in lieu of the provisions required by Article 1
(commencing with Section 6500) of this chapter, relating to the
collection, deposit and safekeeping of the revenues, the permissible
uses thereof, the special fund or funds to be kept for the payment of
principal and interest of the bonds, including reserve, sinking,
bond service, redemption and trust funds, and any bond payable from
the revenue fund may be paid from any such special fund set up
therefor; the appointment of a trustee; the permissible investments
for moneys in said funds, or any thereof, the accounts and records to
be kept, audits thereof and examination thereof by bondholders and
others, and reports to be made by the entity. Any indenture providing
for the appointment of a trustee shall limit such trustee's power of
investment to only such investments as are authorized by Section
53601.
6559. The indenture may include a covenant or other provision
relating to the insurance upon such project, or any part thereof,
against any or all risks, and in case of loss the application of the
insurance proceeds.
6560. The indenture may include a covenant or other provision
containing prohibitions against or limitations upon the sale, lease
or other disposition of such project or any part thereof.
6561. The indenture may contain covenants or other provisions
providing for prohibitions against or limitations upon the issuance
of any additional bonds or the incurring of additional indebtedness
payable from the revenues of the project.
6562. The indenture may contain covenants or other provisions
whereby the consent or agreement of a stated percentage or number of
the holders of the bonds may bind all bondholders to modifications of
or changes in all or part of the provisions of the indenture
authorizing or providing for the issuance of such bonds, and the
provisions subject to modification or change shall be specified or
stated in such indenture.
6563. The indenture may provide for the issuance of a duplicate in
the manner and upon such terms and conditions as the governing body
of the entity may determine, in the event any bond, temporary bond,
coupon or interim certificate of any issue is lost, destroyed or
mutilated.
6564. The indenture may include a covenant or provision against the
entering into of any agreement which impairs the operation of the
project or any part of it necessary to secure adequate revenues to
pay the principal and interest of the bonds, or which otherwise would
impair the rights of the bondholders with respect to the revenues or
the operation of the project.
6565. The indenture may provide for events of default and the terms
upon which the bonds may be declared due before maturity and the
terms upon which that declaration and its consequences may be waived.
6566. The indenture may provide for the rights, liabilities, powers
and duties arising upon the entity's breach of any covenants,
conditions or obligations of the indenture.
6567. The indenture may provide for a fiscal agent and the deposit
of funds therewith.
6568. The indenture may contain any other provision or covenant
valid under the Constitutions of the State of California and the
United States of America which the governing body of the entity deems
necessary or desirable to facilitate the issuance and sale of the
bonds or for the protection or security of holders thereof.
6569. The indenture authorizing the issuance of said bonds and all
resolutions or orders in the proceeding for the issuance of said
bonds shall constitute a contract with the holders of the bonds, and
such contract may be enforced by any holder by mandamus, injunction
or any applicable legal action, suit, proceeding or other remedy.
6570. Any bonds issued under this act shall be payable within not
more than forty (40) years from the date of issue thereof. No bond
may be made payable at a time later than the end of the term of the
agency, board or commission as provided in the joint powers agreement
in effect at the time the bonds are issued.
6571. The bonds shall be issued and sold as the governing body may
determine and for not less than par and accrued interest to date of
delivery, except that, in the case of a project for the generation or
transmission of electric energy, a project for the disposal,
treatment, or conversion of energy and reusable materials of solid
waste, a project for a purpose specified in Section 6546.6, a project
for the construction of bridges and major thoroughfares pursuant to
Section 66484.3, a project for an intermodal container transfer
facility specified in Section 6546.6, a project for a consolidated
transportation corridor pursuant to Section 6546.13, a project funded
by a joint powers authority formed to provide port or harbor
infrastructure pursuant to Part 1 (commencing with Section 1690) of
Division 6 of the Harbors and Navigation Code, or in the case of
bonds of a fair and exhibition authority, the bonds may be sold at
less than par if the governing body determines that the sale will
result in more favorable terms for the bonds. The sale shall be
conducted in compliance with Chapter 10 (commencing with Section
5800) of Division 6 of Title 1, unless, in the case of a project for
the generation or transmission of electric energy, a project for the
disposal, treatment, or conversion of energy and reusable materials
of solid waste, a project for the development and construction of an
intermodal container transfer facility specified in Section 6546.6, a
project for a consolidated transportation corridor pursuant to
Section 6546.13, a project for the construction of bridges and major
thoroughfares pursuant to Section 66484.3, a project funded by a
joint powers authority formed to provide port or harbor
infrastructure pursuant to Part 1 (commencing with Section 1690) of
Division 6 of the Harbors and Navigation Code, or in the case of
bonds of a fair and exhibition authority, the governing body shall
determine that a negotiated sale of the bonds is necessary, in which
case the bonds shall be sold on the terms approved by the governing
body.
The proceeds from the sale (except premium and accrued interest,
which shall be paid into the bond service or other fund designated or
established for the payment of the principal and interest of the
bonds) shall be paid into the construction fund or other fund
designated by the indenture authorizing the issuance of the bonds and
shall be applied exclusively to the objects and purposes set forth
in the indenture, including all expenses incidental thereto or in
connection therewith, and also including the payment of interest on
the bonds during the period of study and construction of the project
and for a period not to exceed 12 months after completion of the
construction.
6571.2. Any joint powers agency which, prior to January 1, 1972,
has issued revenue bonds pursuant to Section 6571.1 of this article
for the purpose of acquiring and constructing sanitary sewer
facilities, may, in addition to the powers authorized by Article 1
(commencing with Section 6500) and this article issue revenue bonds
for the following purposes:
(a) To refund all or any part of the principal amount of any
revenue bonds previously issued for the acquisition and construction
of sanitary sewer facilities.
(b) To acquire directly by acquisition of title or by acquisition
of capacity rights, and construct, sanitary sewer facilities,
including but not limited to collection, treatment, and disposal
works and facilities or the refunding of such bonds; provided, that
this subdivision shall have no force or effect after December 31,
1977.
6572. The bonds shall be secured by a pledge of and lien upon the
revenues of the project described in the indenture authorizing the
issuance of the bonds, and such revenues may be used only as provided
in said indenture. The revenues of the project include revenues from
improvements to or additions to or extensions thereof later
constructed or made. The bonds shall also be secured by additional
revenues, including existing funds, if any, of the entity from other
sources, to the extent set forth in the indenture.
6573. So long as any bonds or interest coupons thereof are
outstanding and unpaid, the revenues and interest thereon shall not
be used for any purpose not authorized by the indenture, unless the
authority to make such use of revenues shall be authorized by the
bondholders pursuant to the provisions of the indenture, and during
such period the joint powers agreement shall be irrevocable and may
not be amended or modified in any manner to the detriment of the
bondholders. Any bond for the payment and discharge of which, upon
maturity or upon redemption prior to maturity, provision has been
made through the setting apart in a reserve fund or special trust
account created pursuant to this article to insure the payment
thereof, of moneys sufficient for that purpose or through the
irrevocable segregation for that purpose in some sinking fund or
other fund or trust account of moneys sufficient therefor, shall be
deemed to be no longer outstanding and unpaid within the meaning of
any provision of this article.
6574. The entity shall operate, maintain and preserve the project
in good repair and working order, and shall operate the project in an
efficient and economical manner; provided, however, that the entity
may lease or rent concessions, or lease or rent the project or any
part thereof, or otherwise provide for the operation of the project
or any part thereof.
6575. All bonds and the interest thereon or income therefrom are
exempt from all taxation in this State other than gift, inheritance
and estate taxes.
6576. The entity may provide for the issuance, sale or exchange of
refunding bonds for the purpose of redeeming or retiring any revenue
bonds issued by the entity and any other indebtedness incurred by the
entity. All provisions of this article applicable to the issuance of
revenue bonds are applicable to the funding or refunding bonds and
to the issuance, sale or exchange thereof.
6577. Funding or refunding bonds may be issued in a principal
amount sufficient to provide funds for the payment of all of the
following:
(a) All bonds to be funded or refunded by them.
(b) All expenses incident to the calling, retiring, or paying of
the outstanding bonds and the issuance of the funding or refunding
bonds, including the costs of issuing the refunding bonds, as defined
in Section 53550.
(c) Interest upon the funding or refunding bonds from the date of
sale to the date of payment of the bonds to be funded or refunded out
of the proceeds of the sale or the date upon which the bonds to be
funded or refunded will be paid pursuant to the call or agreement
with the holders of such bonds.
(d) Any premium necessary in the calling or retiring of the
outstanding bonds and the interest accruing on them to the date of
the call or retirement.
6578. This article shall be liberally construed to effectuate its
purposes.
6579. In addition to the revenue bonds authorized by this article,
an agency or entity established pursuant to the provisions of this
chapter may also issue revenue bonds pursuant to the provisions of
the Revenue Bond Law of 1941, as contained in Chapter 6 (commencing
with Section 54300) of Part 1 of Division 2 of Title 5, for the
purposes specified in Section 54307.1.
6579.5. In addition to the revenue bonds authorized by this article
and in addition to other powers, any agency, commission, or board
provided for by a joint powers agreement entered into pursuant to
Article 1 (commencing with Section 6500) of this chapter, if such
entity has the power to acquire, construct, maintain, or operate
systems, plants, buildings, works, or other facilities or property
for the purposes of disposal, treatment, or conversion to energy and
reusable materials of solid waste, may issue revenue bonds pursuant
to the Revenue Bond Law of 1941, Chapter 6 (commencing with Section
54300) of Part 1 of Division 2 of Title 5, to pay the cost and
expenses of acquiring, constructing, improving, and financing a
project for any and all such purposes.
Upon adopting the resolution referred to in Article 3 (commencing
with Section 54380) of Chapter 6 of Part 1 of Division 2 of Title 5,
the entity shall implement the resolution by conducting an election
in its own territory as provided in Section 54307.3. The proposition
authorizing the bonds shall be deemed adopted if it receives the
affirmative vote of a majority of all the voters voting on the
proposition within the entity.
6540. As used in this article "bonds" means revenue bonds, notes or
other evidences of indebtedness.
6541. "Bondholder" or "holder of bonds" or any similar term, as
used in this article, shall mean any person who shall be the bearer
of any outstanding revenue bond or the owner of bonds which shall at
the time be registered to other than to bearer.
6542. "Entity" as used in this article means any agency, board or
commission provided for by a joint powers agreement pursuant to
Article 1 of this chapter. Such agency, board or commission is an
entity separate from the public agencies which are parties to such
agreement.
6542.1. "Fair and exhibition authority," as used in this article,
means an entity created by a joint powers agreement for the purpose
of financing or otherwise facilitating agricultural, livestock,
industrial, cultural, or other types of fairs or exhibitions.
6542.5. "Local agency" as used in this article means any public
agency designated in Section 6500 other than the federal government
or any federal department or agency, this state, an adjoining state,
or any state department or agency.
6543. "Governing body" as used in this article means the board or
commission provided for by a joint powers agreement, pursuant to
Article 1 of this chapter.
6544. "Indenture" as used in this article means the instrument
providing the terms and conditions for the issuance of the revenue
bonds, and may be a resolution, order, agreement or other instrument.
6545. "Project" as used in this article includes buildings,
structures, improvements and all facilities appurtenant thereto or
provided therefor together with land and offstreet parking facilities
necessary therefor to be financed by revenue bonds issued pursuant
to this article. In addition, with respect to a facility for the
generation or transmission of electric energy, a project also
includes an ownership interest or a capacity right in that facility
that may be situated in whole or in part within or without the state.
In addition, with respect to a telecommunication system or service,
a project also includes a contract for the installation, provision,
or maintenance of that system or service. In addition, a project also
includes any of the purposes specified in an agreement pursuant to
Section 6516.
6546. In addition to other powers, any agency, commission, or board
provided for by a joint powers agreement pursuant to Article 1
(commencing with Section 6500) may issue revenue bonds pursuant to
this article to pay the cost and expenses of acquiring or
constructing a project or conducting a program for any or all of the
following purposes:
(a) An exhibition building or other place for holding fairs or
exhibitions for the display of agricultural, livestock, industrial,
or other products, including movable equipment, entertainment
facilities, and other facilities to be used in conjunction with
holding a fair or exposition in several locations including those
projects and facilities specified in paragraph (1) of subdivision (a)
of Section 19606.1 of the Business and Professions Code, that
project and facility authorized by Article 3.5 (commencing with
Section 4161) of Chapter 6 of Part 3 of Division 3 of the Food and
Agricultural Code, and for those purposes specified in an agreement
pursuant to Section 6516 of the Government Code.
(b) A coliseum, a stadium, a sports arena or sports pavilion or
other building for holding sports events, athletic contests, contests
of skill, exhibitions, spectacles, and other public meetings.
(c) Any other public buildings, including, but not limited to,
general administrative facilities of a city, county, city and county,
special district, or authority.
(d) A regional or local public park, recreational area, or
recreational center, and all facilities and improvements related
thereto.
(e) A facility for the generation or transmission of electrical
energy for public or private uses and all rights, properties, and
improvements necessary therefor, including fuel and water facilities
and resources. As used in this chapter, "transmission of electric
energy" does not include the final distribution of electric energy to
the consumer.
(f) A facility for the disposal, treatment, or conversion to
energy and reusable materials of solid or hazardous waste or toxic
substances.
(g) Facilities for the production, storage, transmission, or
treatment of water or waste water.
(h) Local streets, roads, and bridges.
(i) Bridges and major thoroughfares construction pursuant to
Sections 50029 and 66484.3.
(j) Mass transit facilities or vehicles.
(k) Publicly owned or operated commercial or general aviation
airports and airport-related facilities.
(l) Police or fire stations.
(m) Public works facilities, including corporation yards.
(n) Public health facilities owned or operated by a city, county,
city and county, special district, or authority.
(o) Criminal justice facilities, including court buildings, jails,
juvenile halls, and juvenile detention facilities.
(p) Public libraries.
(q) Publicly owned or operated parking garages.
(r) Low-income housing projects owned or operated by a city,
county, city and county, or housing authority.
(s) Public improvements authorized in a project area created
pursuant to the Community Redevelopment Law, Part 1 (commencing with
Section 33000) of Division 24 of the Health and Safety Code.
(t) Public improvements authorized pursuant to the Improvement Act
of 1911, Division 7 (commencing with Section 5000) of the Streets
and Highways Code, the Improvement Bond Act of 1915, Division 10
(commencing with Section 8500) of the Streets and Highways Code, the
Municipal Improvement Act of 1913, Division 12 (commencing with
Section 10000) of the Streets and Highways Code, and the Mello-Roos
Community Facilities Act of 1982, Chapter 2.5 (commencing with
Section 53311) of Part 1 of Division 2 of Title 5.
(u) Telecommunication systems or service, including, but not
limited to, the installation, provision, or maintenance of that
system or service.
(v) Programs, facilities, rights, properties, and improvements for
the management, conservation, reuse, or recycling of electric
capacity or energy, natural gas, water, waste water, or recycled
water, including demand side or load management and other programs
and facilities designed to reduce the demand for, or permit or
promote the efficient use of, those resources.
"Programs," for the purpose of this subdivision, shall include
activities only to the extent the costs thereof may be charged to a
capital account under applicable generally accepted accounting
principles or are of a type required to be charged to a capital
account by entities subject to regulation by the Public Utilities
Commission or other regulatory body of the state.
(w) Equipment necessary to support the above-listed facilities or
necessary to deliver public services therefrom, including, but not
limited to, telecommunications equipment, computers, and service
vehicles.
Bonds may be issued pursuant to this article if the joint powers
entity, or its individual parties which contract pursuant to Section
6547.5, 6547.6, or 6547.7 to make payments to be applied to the
payment of the indebtedness, have the power to acquire, construct,
maintain, or operate one or more of the projects specified in this
section.
6546.1. In the County of Los Angeles, any agency, commission, or
board provided for by joint powers agreement entered into by cities
pursuant to Article 1 (commencing with Section 6500) of this chapter
for the purpose of the acquisition, operation, repair, maintenance,
improvement and administration of the Hollywood-Burbank Airport as a
public airport, pursuant to the Federal Aviation Act of 1958, as
amended, may carry out such purpose and may authorize the issuance of
revenue bonds, pursuant to this article, to pay for acquiring,
repairing, improving, financing and refinancing such project
including all facilities and improvements and all expenses incidental
thereto or connected therewith. Property tax revenues accruing to,
levied by, or collected by any local agency which is a party to such
a joint powers agreement shall not be used to redeem such revenue
bonds unless an ordinance authorizing the use of such property tax
revenues for such purposes is approved by a majority vote of the
electors of the local agency voting on the issue. In operating the
airport, the separate public entity above mentioned shall not permit
or authorize any activity in conjunction with the airport which
results in an increase in the size of the noise impact area based on
a community noise equivalent level of 70 decibels as established
pursuant to Title 21, California Administrative Code, Chapter 2.5,
Subchapter 6, and shall further comply with the future community
noise equivalent levels prescribed by such title as it now exists or
is hereafter amended.
The separate public entity shall implement the noise monitoring
requirements set forth in Title 21, California Administrative Code,
Chapter 2.5, Subchapter 6. In addition, the entity shall diligently
pursue all reasonable avenues available to insure that the adverse
effects of noise are being mitigated to the greatest extent
reasonably possible.
The separate public entity shall not authorize or permit the
lengthening of runways defined herein as the paved portions of the
runways presently on airport property, or the purchase of fee title
to condemned real property zoned for residential use as of the
effective date of this statute.
The power to issue revenue bonds under this section shall be of no
further force and effect after December 31, 1980, unless (1) the
entity shall have initially issued revenue bonds on or prior to
December 31, 1980, or (2) the entity is unable to initially issue
revenue bonds to accomplish the purpose of this section by reason of
litigation, in which case the power to initially issue revenue bonds
under this section shall continue to be effective until the final
determination of such litigation and for one year thereafter. If the
entity shall have initially issued revenue bonds within either of the
time periods permitted by the prior sentence of this paragraph, the
power to issue revenue bonds under this section shall continue so
long as this section shall be in effect.
6546.2. In addition to other powers, any agency, commission or
board provided for by joint powers agreement pursuant to Article 1
(commencing with Section 6500) of this chapter and created in a
county of the third class as determined by Sec. 28020 may, by
ordinance, authorize the issuance of revenue bonds pursuant to this
article to pay the cost and expenses of acquiring or improving a
regional public park or regional public recreation area and all
facilities and improvements related thereto.
6546.3. Notwithstanding any other provision of law, any local
agency entering into one or more leases or rental contracts or
agreements with a joint powers entity formed for the purposes
specified in Section 6546.2 shall do so only following the effective
date of an ordinance adopted by the governing body of the local
agency authorizing the local agency to enter into one or more such
leases or rental contracts or agreements. Any ordinance adopted
pursuant to this section shall not take effect until and unless it
shall first have been approved by a majority of the voters of the
local agency. The ordinance submitted to the voters shall, in general
terms:
(a) Describe the property or facilities to be leased or rented.
(b) State the maximum time period for which the lease or rental
contract or agreement will run.
(c) State the maximum amount to be paid by the local agency to the
joint powers entity under the lease or rental contract or agreement
and the maximum yearly or monthly payments to be made thereon.
In the event that the governing body of the local agency desires
to levy, or have levied on its behalf, a property tax rate in
addition to the maximum property tax rate established pursuant to
Article 4 (commencing with Section 2260) of Chapter 3 of Part 4 of
Division 1 of the Revenue and Taxation Code, to provide funds for the
preparation of plans and specifications, the payment of rentals and
other amounts payable by the local agency under any such lease or
rental contract or agreement or the payment of other costs and
expenses related to the operation or maintenance of the regional
public park or regional public recreation area, the governing body
may specify in the ordinance to be submitted to the voters the
additional property tax rate to be authorized for such purposes and
the number of years for which such additional property tax rate shall
be authorized. The revenue from such an additional property tax rate
shall be used only for the purposes specified in the ordinance. Such
additional property tax rate, when levied, shall be reported to the
State Controller as provided in Section 2325 of the Revenue and
Taxation Code.
As used in this section, "property tax rate" shall have the
meaning specified in Section 2213 of the Revenue and Taxation Code.
For purposes of this section "lease or rental contract or
agreement" means any lease, sublease, contract or other agreement
involving land or buildings, structures or other facilities which are
permanently attached to land, where the lease, sublease, contract or
agreement is made directly or indirectly between a local agency and
a joint powers entity, if the proceeds of the lease, sublease,
contract or agreement provided by the local agency will be used in
whole or in part by such joint powers entity for payment of principal
or interest on any bonds issued by it pursuant to Section 6546.2.
6546.4. The governing body of any local agency adopting an
ordinance pursuant to Section 6546.3 shall call an election for
purposes of submitting to the qualified electors of the agency the
question of whether the ordinance shall be adopted. Such election
shall be called, held, conducted and the votes canvassed in the same
manner, or as near thereto as is possible, as an election at which
the local agency submits a general obligation bond proposal to its
voters.
For purposes of this section the voters of the local agency shall
be the voters entitled to vote at elections for members of the
governing board of the agency, if the agency has an elected governing
board, and the vote of each such voter shall be given the same
weight as it would be given in an election for members of the
governing board. If a local agency does not have an elected governing
board, the voters of the agency shall be the voters residing within
the boundaries of the agency who would be qualified to vote for
candidates for Governor at any gubernatorial election. If a majority
of the votes cast within a local agency are for adoption of the
ordinance, the ordinance shall be deemed adopted; provided, however,
that the ordinance shall not take effect until a certified copy of
the record of the final canvass of votes is filed with the Secretary
of State.
If a local agency does not have statutory power to introduce an
ordinance and submit it to the voters of the agency, the governing
body of such local agency may introduce and submit such ordinance at
any regular meeting by the approving votes of a majority of all of
its members.
6546.5. In the event that two-thirds of the votes cast in an
election called pursuant to Section 6546.4 are against adoption of
the ordinance, no ordinance authorizing the local agency to enter
into a lease or rental contract or agreement for the same or
substantially the same purpose shall be submitted to the voters of
that local agency for a period of one year from the date of the
election.
6546.5. For purposes of an agency, commission, or board that is
authorized pursuant to subdivision (g) of Section 6546 to issue
revenue bonds for facilities for the production, storage,
transmission, or treatment of water or waste water, that authority
includes the authority to issue revenue bonds for facilities to
remove hazardous substances, pollutants, or contaminants from that
water.
6546.6. In addition to any other powers, any agency, commission, or
board provided for by joint powers agreement entered into by cities
pursuant to Article 1 (commencing with Section 6500) and created in a
county of the fifth class, as determined by Section 28020, may issue
revenue bonds pursuant to this article to pay all or part of the
cost and expenses of acquiring, constructing, or improving,
facilities for the collection, treatment or disposal of sewage,
waste, or stormwater, provided that entity has the power to
construct, maintain, or operate the facilities.
6546.7. Public agencies may enter into a joint powers agreement for
the purposes of creating a fair and exhibition authority with the
power to issue revenue bonds for financing projects under this
article. A fair and exhibition authority of which the Department of
Food and Agriculture is a contracting party, may contract with citrus
fruit fairs for the financing of projects for such fairs and may
issue revenue bonds for such purpose. A fair and exhibition authority
of which a county is a contracting party, which county contracts
with a nonprofit corporation to conduct a fair pursuant to Sections
25905 and 25906 of the Government Code, or any similar or successor
provision, may contract with such nonprofit corporation for the
financing of projects for such fairs, and may issue revenue bonds for
such purpose.
6546.11. In addition to other powers, any joint powers entity
created to exercise the powers granted by Chapter 8 (commencing with
Section 33750) of Part 1 of Division 24 of the Health and Safety Code
or Part 13 (commencing with Section 37910) of Division 24 of the
Health and Safety Code, may issue revenue bonds for the purposes, and
in accordance with the procedures, specified in those statutory
provisions.
6546.12. In any county with a population determined by the last
official census of 4,000,000 or more, any agency, commission, or
board provided for by joint powers agreement entered into by cities
pursuant to Article 1 (commencing with Section 6500) for the purpose
of the acquisition of land, design, engineering, construction,
operation, maintenance, improvement, and administration of an
intermodal container transfer facility, may carry out that purpose
and may authorize the issuance of revenue bonds, pursuant to this
article, to pay for acquiring the land, designing, engineering,
constructing, and improving that project, including all facilities,
improvements, and all expenses incidental thereto or connected
therewith.
The power to issue revenue bonds under this section shall be of no
further force and effect after December 31, 1995, unless (1) the
entity has initially issued revenue bonds on or prior to December 31,
1995, or (2) the entity is unable to initially issue revenue bonds
to accomplish the purpose of this section by reason of litigation
relating to the initial issuance, in which case the power to
initially issue revenue bonds under this section shall continue to be
effective until the final determination of that litigation and for
one year thereafter. If the entity has initially issued revenue bonds
within either of the time periods permitted by the prior sentence of
this paragraph, the power to issue subsequent issues of revenue
bonds under this section shall continue so long as this section shall
be in effect.
6546.13. (a) The Alameda Corridor Transportation Authority, or its
successor organization, may issue revenue bonds pursuant to this
article or bonds pursuant to Article 4 (commencing with Section
6584), for the limited purpose of paying for acquiring the land, and
designing, engineering, constructing, and improving that project,
including all facilities and improvements of the consolidated
transportation corridor, and including all associated financing
costs. Ineligible expenses shall include any expenses for the
maintenance, operations, and administration of the consolidated
transportation corridor.
(b) For the purposes of this section, "consolidated transportation
corridor" means a transportation corridor created to improve highway
or rail access to the Ports of Long Beach and Los Angeles.
(c) Anticipated sources of revenue or other funds to pay the
principal of and interest on the bonds authorized by this section may
include a pledge or revenues from the Ports of Long Beach and Los
Angeles, railroad use fees, truck fees, and pledges from other public
and private sources.
(d) Any joint powers entity seeking authorization to issue revenue
bonds pursuant to this section shall do so in compliance with
Sections 6547 and 6547.5.
(e) Any joint powers entity under this section seeking to issue
bonds pursuant to the Marks-Roos Local Bond Pooling Act of 1985
(Article 4 (commencing with Section 6584)) shall do so in compliance
with all of the provisions under Article 4 (commencing with Section
6584).
(f) The authority to issue revenue bonds under this article or
bonds under Article 4 (commencing with Section 6584) shall be of no
further force and effect after December 31, 2015, unless (1) the
joint powers authority has initially issued revenue bonds or bonds on
or prior to December 31, 2015, or (2) the joint powers authority is
unable to initially issue revenue bonds or bonds to accomplish the
purpose of this section by reason of litigation relating to the
initial issuance, in which case the authority to initially issue
revenue bonds under this article and bonds under Article 4
(commencing with Section 6584) shall continue to be effective until
the final determination of that litigation and for one year
thereafter. If the joint powers authority has initially issued
revenue bonds or bonds within either of the time periods permitted by
this subdivision, the authority to issue subsequent issues of
revenue bonds or bonds and to refund any issue of revenue bonds under
this article or bonds under Article 4 (commencing with Section 6584)
shall continue as long as initially issued revenue bonds or bonds
remain outstanding and unpaid.
6547. The power of the entity to issue revenue bonds is additional
to the powers common to the parties to the joint powers agreement,
but shall not be exercised until authorized by the parties to that
agreement. However, in the case of the issuance of revenue bonds by a
fair and exhibition authority this authorization shall not be
required. In the case of the issuance of revenue bonds by an entity
created pursuant to this chapter to construct bridges and major
thoroughfares, as referred to in Section 66484.3, the power of the
entity to issue revenue bonds shall be exercised by a resolution
adopted by a majority vote of the governing body of the entity during
a regular meeting held pursuant to Section 54954. However, no member
of the entity may vote on the question of bond issuance unless the
member has been authorized to vote on that particular question by
previous resolution of the public agency the member represents. In
the case of the issuance of revenue bonds by an entity created
pursuant to this chapter to carry out a consolidated transportation
corridor project, as referred to in Section 6546.13, the power of the
entity to issue revenue bonds shall be exercised by a resolution
adopted by a majority vote of the governing body of the entity. In
the case of a project for the generation or transmission of electric
energy or a project for the disposal, treatment, or conversion to
energy and reusable materials of solid waste, or a project for an
intermodal container transfer facility, or a project for the
construction of bridges and major thoroughfares pursuant to Section
66484.3, this power shall include the power to issue notes for the
purpose of financing studies, the acquisition of options, permits,
and other preliminary costs to be incurred prior to the undertaking
of the construction or acquisition of a project, and for the purpose
of providing temporary financing of costs of construction or
acquisition of a project. These notes may be issued at public or
private sale, and may be renewed from time to time, and the principal
and interest with respect thereto may be made payable from the
revenues of the entity unless paid from the proceeds of revenue
bonds.
Every local agency shall make any authorization, as permitted
under the first sentence of this section, by ordinance, unless
otherwise prescribed in this section. Except as provided in this
section, the ordinance shall describe in general terms the project,
or projects, to be funded by the revenue bonds, the maximum amount of
the bonds proposed to be issued, and the anticipated sources of
revenue to redeem the bonds. In the case of a project for the
generation or transmission of electric energy or a project for the
disposal, treatment, or conversion to energy and reusable materials
of solid waste, or a project for an intermodal container transfer
facility, or a project for the construction of bridges and major
thoroughfares pursuant to Section 66484.3, the ordinance shall
describe in general terms the project or the studies or other
preliminary costs therefor to be funded by the revenue bonds or
notes, the estimate of the maximum amount of bonds to be issued for
the project or the studies or other preliminary costs, and the
anticipated sources of revenue or other funds to pay the principal of
and interest on the bonds or notes. In the case of a project for a
consolidated transportation corridor pursuant to Section 6546.13, the
authorizing resolution shall describe in general terms, the project
or projects to be funded by the revenue bonds, the maximum amount of
bonds proposed to be issued for the project or projects, and the
anticipated sources of revenue or other funds to pay the principal of
and interest on the bonds. However, the statement of the estimated
maximum amount of the bonds or notes shall not be deemed to prevent
the authorization by the ordinance of the issuance of bonds or notes
by the entity in amounts that may exceed the estimate without further
authorization under the ordinance if and to the extent the
additional bonds or notes shall be required to complete the financing
of the project or the studies or other preliminary costs. Each
ordinance shall state that it is subject to the provisions for
referendum prescribed by Section 9142 of the Elections Code.
A separate authorization shall be required for each separate bond
issue proposed by the entity, except that, in the case of a project
for the generation or transmission of electric energy or a project
for the disposal, treatment, or conversion to energy and reusable
materials of solid waste, or a project for an intermodal container
transfer facility, or a project for the construction of bridges and
major thoroughfares pursuant to Section 66484.3, a single
authorization shall be sufficient for bonds that may be issued in
installments from time to time for a project or the costs of studies
or other preliminary costs therefor that shall be identified in the
authorization.
The requirement of an ordinance and the right to referendum
thereon shall not apply to the issuance of revenue bonds if, prior to
March 4, 1971, one or more local or public agencies shall have taken
formal action to implement any one or more projects to be acquired
or constructed pursuant to a joint powers agreement. Formal action to
implement any one or more projects shall include, but not be limited
to, any of the following:
(a) The incurring of liability for a substantial portion of an
architectural or engineering contract or other contract relating to a
project.
(b) The acquisition of land or improvements for the project.
(c) The making of a substantial contribution toward the project.
Notwithstanding the requirement that parties to a joint powers
agreement authorize the issuance of revenue bonds, in the case of a
project that consists of the generation or transmission of electric
energy financed in whole or in part by the issuance of revenue bonds,
only those local agencies that contract to make payments to be
applied to the payment of the revenue bonds shall be required to
authorize the issuance of the revenue bonds.
Any authorizations required by this section for the issuance of
revenue bonds to construct bridges and major thoroughfares projects
pursuant to Section 50029 or 66484.3 may be by ordinance or
resolution.
6547.1. Any entity which shall have been authorized to exercise the
power to issue revenue bonds pursuant to this article shall have the
further additional power to incur other forms of indebtedness
pursuant to this section. Said further additional power shall not be
exercised until authorized by the parties to the agreement. Said
indebtedness may be evidenced by one or more bonds of any
denomination issued pursuant to this article, or may consist of a
note, warrant or other evidence of indebtedness which may be secured
by a pledge, with the power of sale, of all or any part of bonds
theretofore authorized or issued under this article. Said bond or
bonds, or notes, warrants, or other evidences of indebtedness may be
issued in negotiable form, in which case they shall be negotiable.
The resolution authorizing the incurring of an indebtedness pursuant
to this section may make any of the covenants and provide any of the
terms or conditions authorized to be made or provided for in the case
of bonds issued under this article, may provide for the sale or
other disposition of any pledged bonds, and may contain any other
covenant, term or condition which the governing body of the entity
deems necessary or desirable to facilitate the incurring of said
indebtedness or for the protection of the lender. Any such
indebtedness shall be payable only from such sources as are
authorized under this article for the payment of principal and
interest on bonds or from the proceeds of refunding bonds issued
pursuant to this article. Such indebtedness of the entity shall not
constitute a debt, liability or obligation of any of the public
agencies who are parties to the agreement creating such entity.
6547.2. Notice of the enactment of an ordinance subject to
referendum under Section 6547 shall be published after adoption as
required by Section 6040.1 within 15 days after the adoption of the
ordinance.
If a local agency does not otherwise have statutory power to enact
an ordinance pursuant to Section 6547, the governing body of the
local agency is hereby empowered to introduce and enact the ordinance
at any regular or adjourned regular meeting by the approving votes
of a majority of all of its members. If ordinances of a local agency
are not otherwise subject to referendum, then (1) the governing body
of the local agency may refer any ordinance enacted pursuant to
Section 6547 to the electors of the local agency in the same manner
as the board of supervisors of a county may refer county questions
pursuant to Section 9140 of the Elections Code, and (2) the electors
of the local agency shall have the right to petition for referendum
on the ordinance in the same manner and subject to the same rules as
are set forth in Sections 9141 to 9145, inclusive, of the Elections
Code, except that all computations referred to in those sections and
officers of the county mentioned in those sections shall be construed
to refer to comparable computations and officers of the local
agency. If the governing board of a local agency is an elected board
the electors of the local agency for the purposes of this section
shall be the electors of the territory entitled to vote at elections
for members of the governing board. If a local agency does not have
an elected governing board, the electors residing within the
boundaries of the local agency who would be qualified to vote for
candidates for Governor at any gubernatorial election shall be the
electors of the local agency for the purposes of this section.
6547.3. In the event that an ordinance enacted pursuant to Section
6547 authorizing the entity to issue revenue bonds is subjected to a
successful referendum election or is repealed or rescinded by a local
agency, no ordinance authorizing the entity to issue revenue bonds
for the same purpose shall be passed by that local agency for a
period of one year from the date of such referendum, repeal or
rescission.
6547.4. Except for the requirement of an ordinance and the right to
referendum thereon, the amendments to Section 6547 adopted at the
1971 Regular Session of the Legislature shall not limit or affect any
heretofore existing right of any public agency to be a party to a
joint powers agreement which authorizes an entity to issue bonds
under this article, including the right to accomplish a public
purpose of such public agency regardless of whether such public
agency is obligated to make any contribution or payment of public
funds or property.
6547.5. A joint powers entity created pursuant to this chapter may
issue revenue bonds pursuant to this article upon authorization by
ordinance of only those individual parties to the joint powers
agreement which contract to make payments to be applied to the
payment of the revenue bonds, provided that the nonparticipating
parties to the agreement incur no financial obligations under the
issuance.
6547.6. A joint powers entity created pursuant to this chapter may
incur other forms of indebtedness pursuant to Section 6547.1 for one
or more projects specified in Section 6546 upon authorization by
ordinance of only those individual parties to the joint powers
agreement which contract to make payments to be applied to the
payment of the instruments of indebtedness, provided that the
nonparticipating parties to the agreement incur no financial
obligations under such instruments of indebtedness.
6547.7. A joint powers entity created pursuant to this chapter may
issue mortgage revenue bonds pursuant to Part 5 (commencing with
Section 52000) of Division 31 of the Health and Safety Code and
industrial development bonds pursuant to the California Industrial
Development Financing Act (Title 10 (commencing with Section 91500)).
6547.8. No member of the governing body of the authority shall be
personally liable on the bonds or be subject to any personal
liability or accountability by reason of the issuance of bonds
pursuant to this chapter.
6547.9. The Treasurer is designated as an elected representative
for federal tax purposes of a joint powers agency created pursuant to
this chapter. In the discretion of the joint powers agency, the
Treasurer is authorized to approve or certify the issuance of bonds,
notes, or other evidence of indebtedness, issued by or on behalf of
that joint powers agency, to the extent this approval is required by
federal tax law.
6548. The revenue bonds may be issued to provide all or any part of
the funds required for the acquisition, construction and financing
of said project, including any or all expenses incidental thereto or
connected therewith, and such expenses may include engineering,
inspection, legal and fiscal agents' fees, costs of the issuance and
sale of said bonds, working capital, reserve fund, and bond interest
estimated to accrue during the construction period and for a period
of not to exceed 12 months after completion of construction. The
proceeds of the bonds shall be used only for the project provided for
in the indenture pursuant to which such revenue bonds are issued.
6548.5. The level of fees or charges imposed by, or on behalf of,
an agency or entity for the issuance of bonds pursuant to this
article shall be disclosed in a report of final sale submitted to the
California Debt and Investment Advisory Commission pursuant to
Chapter 11.5 (commencing with Section 8855) of Division 1 of Title 2.
6549. An indenture providing the terms and conditions for the
issuance of the bonds and the covenants relating thereto shall be
adopted in or approved by resolution. Such indenture shall describe
or state the revenues and funds from which the bonds shall be
payable. Such funds or revenues shall include the revenues derived
from the operation of the project or projects for which the bond
proceeds are used or expended and any other revenues derived
therefrom, and may also include revenue, including existing funds, of
the entity derived from any other building or buildings, coliseum,
stadium, facilities or other sources and any or all extensions or
renewals thereof.
6550. The principal and interest of the bonds shall be payable:
(a) First, out of the revenue derived from the operation of the
project or projects for which the bond proceeds were or are to be
used or expended, or any other revenues derived from said project;
(b) Second, from such other revenues, including existing funds, of
the entity as are described or stated as security for the bonds in
the indenture in accordance with Section 6549 hereof.
6551. Revenue bonds issued under this article and contracts or
obligations entered into to carry out the purposes for which bonds
are issued, payable in whole or in part from the proceeds of said
bonds, shall not constitute a debt, liability or obligation of any of
the public agencies who are parties to the agreement creating such
entity.
6552. All bonds issued by the entity shall contain a recital on
their face that neither the payment of the principal or any part
thereof nor any interest thereon constitutes a debt, liability or
obligation of any of the public agencies who are parties to the
agreement creating such entity.
6553. The indenture authorizing the issuance of the bonds shall
recite the objects and purposes for which the bonds are to be issued,
which may include any or all of the purposes stated in this article
and which shall comprise the project, the principal amount of the
bonds, the maximum rate of interest to be payable thereon which shall
not exceed the maximum rate permitted by Section 53531, payable at
the intervals which the governing body determines, and which may be
fixed or variable and simple or compound, the date or dates of issue
of the bonds, the maturity date or dates thereof, and the fund or
funds from which the bonds and the interest thereon and premiums upon
the redemption of any thereof are to be payable, and any other
provisions authorized by this article as the governing body of the
entity deems necessary or desirable. However, in the case of a
project for the generation or transmission of electric energy, the
maximum rate of interest shall not be applicable to bonds issued to
continue or complete financing of a project for which bonds shall
have theretofore been issued. The bonds shall be issued in negotiable
form and shall be negotiable. The recitals or regularity of
proceedings in any revenue bond issued and sold under this article
shall be conclusive evidence of compliance with this article and of
the validity of the bond. The bonds may be issued and sold to the
United States of America, or the State of California, or to any
appropriate department or agency thereof, to provide a source for the
payment of principal and interest on any loan made by the United
States of America, or the State of California, or agency thereof, to
any agency created by an agreement entered into pursuant to this
chapter.
6554. The indenture authorizing the issuance of such bonds shall
provide the denomination or denominations of the bonds, the medium of
payment of principal thereof and interest thereon, the place or
places of payment of said bonds and interest, which may be within or
without the State of California, the form of said bonds (including
recitals of regularity of the proceedings for the issuance thereof)
and of interest coupons appertaining thereto, the form, denominations
and conditions of any temporary bonds or interim certificates, and
the manual and facsimile signatures to be attached to the bonds or
certificates (one signature upon which must be manual) and the manual
or facsimile signature to be affixed to the interest coupons.
6555. In the indenture authorizing the issuance of said bonds the
governing body may also fix additional terms and conditions and may
in any article, section or clause thereof make such provision or
covenant as it may deem necessary or desirable to facilitate the
issuance and sale of the bonds or for the protection or security of
the holders thereof, including, without affecting the generality of
the foregoing, provision for any or all of the matters stated in
Sections 6556 to 6568 of this article.
6556. Said indenture may provide the terms and conditions under
which said bonds may be paid, redeemed before maturity (including the
premiums, if any, to be payable upon bonds redeemed prior to
maturity), exchanged, registered, transferred, and negotiated. No
bond shall be redeemable prior to maturity unless a statement
substantially to that effect is contained in the bond.
6557. Said indenture may include covenants or other provisions
relating to the bonds issued thereunder requiring the entity to fix,
prescribe and collect rates, tolls, fees, rentals or other charges in
connection with the services and facilities furnished from the
project acquired or constructed from the proceeds of bonds, and it
may require such rates, tolls, fees, rentals or other charges to be
sufficient to pay principal of and interest on the bonds as they
become due, together with all expenses of operation, maintenance and
repair of the project and such additional sums as may be required for
any sinking fund, reserve fund or other special fund provided for
the further security of such bonds, or as a depreciation charge or
other charge in connection with such project; provided, however, that
all rates, tolls, fees, rentals or other charges in connection with
the services and facilities furnished by the project shall be subject
to such provisions, if any, relative thereto as may be contained in
the contract or agreement between the public agencies creating such
entity.
6558. The indenture may include covenants or other provisions,
other than or in lieu of the provisions required by Article 1
(commencing with Section 6500) of this chapter, relating to the
collection, deposit and safekeeping of the revenues, the permissible
uses thereof, the special fund or funds to be kept for the payment of
principal and interest of the bonds, including reserve, sinking,
bond service, redemption and trust funds, and any bond payable from
the revenue fund may be paid from any such special fund set up
therefor; the appointment of a trustee; the permissible investments
for moneys in said funds, or any thereof, the accounts and records to
be kept, audits thereof and examination thereof by bondholders and
others, and reports to be made by the entity. Any indenture providing
for the appointment of a trustee shall limit such trustee's power of
investment to only such investments as are authorized by Section
53601.
6559. The indenture may include a covenant or other provision
relating to the insurance upon such project, or any part thereof,
against any or all risks, and in case of loss the application of the
insurance proceeds.
6560. The indenture may include a covenant or other provision
containing prohibitions against or limitations upon the sale, lease
or other disposition of such project or any part thereof.
6561. The indenture may contain covenants or other provisions
providing for prohibitions against or limitations upon the issuance
of any additional bonds or the incurring of additional indebtedness
payable from the revenues of the project.
6562. The indenture may contain covenants or other provisions
whereby the consent or agreement of a stated percentage or number of
the holders of the bonds may bind all bondholders to modifications of
or changes in all or part of the provisions of the indenture
authorizing or providing for the issuance of such bonds, and the
provisions subject to modification or change shall be specified or
stated in such indenture.
6563. The indenture may provide for the issuance of a duplicate in
the manner and upon such terms and conditions as the governing body
of the entity may determine, in the event any bond, temporary bond,
coupon or interim certificate of any issue is lost, destroyed or
mutilated.
6564. The indenture may include a covenant or provision against the
entering into of any agreement which impairs the operation of the
project or any part of it necessary to secure adequate revenues to
pay the principal and interest of the bonds, or which otherwise would
impair the rights of the bondholders with respect to the revenues or
the operation of the project.
6565. The indenture may provide for events of default and the terms
upon which the bonds may be declared due before maturity and the
terms upon which that declaration and its consequences may be waived.
6566. The indenture may provide for the rights, liabilities, powers
and duties arising upon the entity's breach of any covenants,
conditions or obligations of the indenture.
6567. The indenture may provide for a fiscal agent and the deposit
of funds therewith.
6568. The indenture may contain any other provision or covenant
valid under the Constitutions of the State of California and the
United States of America which the governing body of the entity deems
necessary or desirable to facilitate the issuance and sale of the
bonds or for the protection or security of holders thereof.
6569. The indenture authorizing the issuance of said bonds and all
resolutions or orders in the proceeding for the issuance of said
bonds shall constitute a contract with the holders of the bonds, and
such contract may be enforced by any holder by mandamus, injunction
or any applicable legal action, suit, proceeding or other remedy.
6570. Any bonds issued under this act shall be payable within not
more than forty (40) years from the date of issue thereof. No bond
may be made payable at a time later than the end of the term of the
agency, board or commission as provided in the joint powers agreement
in effect at the time the bonds are issued.
6571. The bonds shall be issued and sold as the governing body may
determine and for not less than par and accrued interest to date of
delivery, except that, in the case of a project for the generation or
transmission of electric energy, a project for the disposal,
treatment, or conversion of energy and reusable materials of solid
waste, a project for a purpose specified in Section 6546.6, a project
for the construction of bridges and major thoroughfares pursuant to
Section 66484.3, a project for an intermodal container transfer
facility specified in Section 6546.6, a project for a consolidated
transportation corridor pursuant to Section 6546.13, a project funded
by a joint powers authority formed to provide port or harbor
infrastructure pursuant to Part 1 (commencing with Section 1690) of
Division 6 of the Harbors and Navigation Code, or in the case of
bonds of a fair and exhibition authority, the bonds may be sold at
less than par if the governing body determines that the sale will
result in more favorable terms for the bonds. The sale shall be
conducted in compliance with Chapter 10 (commencing with Section
5800) of Division 6 of Title 1, unless, in the case of a project for
the generation or transmission of electric energy, a project for the
disposal, treatment, or conversion of energy and reusable materials
of solid waste, a project for the development and construction of an
intermodal container transfer facility specified in Section 6546.6, a
project for a consolidated transportation corridor pursuant to
Section 6546.13, a project for the construction of bridges and major
thoroughfares pursuant to Section 66484.3, a project funded by a
joint powers authority formed to provide port or harbor
infrastructure pursuant to Part 1 (commencing with Section 1690) of
Division 6 of the Harbors and Navigation Code, or in the case of
bonds of a fair and exhibition authority, the governing body shall
determine that a negotiated sale of the bonds is necessary, in which
case the bonds shall be sold on the terms approved by the governing
body.
The proceeds from the sale (except premium and accrued interest,
which shall be paid into the bond service or other fund designated or
established for the payment of the principal and interest of the
bonds) shall be paid into the construction fund or other fund
designated by the indenture authorizing the issuance of the bonds and
shall be applied exclusively to the objects and purposes set forth
in the indenture, including all expenses incidental thereto or in
connection therewith, and also including the payment of interest on
the bonds during the period of study and construction of the project
and for a period not to exceed 12 months after completion of the
construction.
6571.2. Any joint powers agency which, prior to January 1, 1972,
has issued revenue bonds pursuant to Section 6571.1 of this article
for the purpose of acquiring and constructing sanitary sewer
facilities, may, in addition to the powers authorized by Article 1
(commencing with Section 6500) and this article issue revenue bonds
for the following purposes:
(a) To refund all or any part of the principal amount of any
revenue bonds previously issued for the acquisition and construction
of sanitary sewer facilities.
(b) To acquire directly by acquisition of title or by acquisition
of capacity rights, and construct, sanitary sewer facilities,
including but not limited to collection, treatment, and disposal
works and facilities or the refunding of such bonds; provided, that
this subdivision shall have no force or effect after December 31,
1977.
6572. The bonds shall be secured by a pledge of and lien upon the
revenues of the project described in the indenture authorizing the
issuance of the bonds, and such revenues may be used only as provided
in said indenture. The revenues of the project include revenues from
improvements to or additions to or extensions thereof later
constructed or made. The bonds shall also be secured by additional
revenues, including existing funds, if any, of the entity from other
sources, to the extent set forth in the indenture.
6573. So long as any bonds or interest coupons thereof are
outstanding and unpaid, the revenues and interest thereon shall not
be used for any purpose not authorized by the indenture, unless the
authority to make such use of revenues shall be authorized by the
bondholders pursuant to the provisions of the indenture, and during
such period the joint powers agreement shall be irrevocable and may
not be amended or modified in any manner to the detriment of the
bondholders. Any bond for the payment and discharge of which, upon
maturity or upon redemption prior to maturity, provision has been
made through the setting apart in a reserve fund or special trust
account created pursuant to this article to insure the payment
thereof, of moneys sufficient for that purpose or through the
irrevocable segregation for that purpose in some sinking fund or
other fund or trust account of moneys sufficient therefor, shall be
deemed to be no longer outstanding and unpaid within the meaning of
any provision of this article.
6574. The entity shall operate, maintain and preserve the project
in good repair and working order, and shall operate the project in an
efficient and economical manner; provided, however, that the entity
may lease or rent concessions, or lease or rent the project or any
part thereof, or otherwise provide for the operation of the project
or any part thereof.
6575. All bonds and the interest thereon or income therefrom are
exempt from all taxation in this State other than gift, inheritance
and estate taxes.
6576. The entity may provide for the issuance, sale or exchange of
refunding bonds for the purpose of redeeming or retiring any revenue
bonds issued by the entity and any other indebtedness incurred by the
entity. All provisions of this article applicable to the issuance of
revenue bonds are applicable to the funding or refunding bonds and
to the issuance, sale or exchange thereof.
6577. Funding or refunding bonds may be issued in a principal
amount sufficient to provide funds for the payment of all of the
following:
(a) All bonds to be funded or refunded by them.
(b) All expenses incident to the calling, retiring, or paying of
the outstanding bonds and the issuance of the funding or refunding
bonds, including the costs of issuing the refunding bonds, as defined
in Section 53550.
(c) Interest upon the funding or refunding bonds from the date of
sale to the date of payment of the bonds to be funded or refunded out
of the proceeds of the sale or the date upon which the bonds to be
funded or refunded will be paid pursuant to the call or agreement
with the holders of such bonds.
(d) Any premium necessary in the calling or retiring of the
outstanding bonds and the interest accruing on them to the date of
the call or retirement.
6578. This article shall be liberally construed to effectuate its
purposes.
6579. In addition to the revenue bonds authorized by this article,
an agency or entity established pursuant to the provisions of this
chapter may also issue revenue bonds pursuant to the provisions of
the Revenue Bond Law of 1941, as contained in Chapter 6 (commencing
with Section 54300) of Part 1 of Division 2 of Title 5, for the
purposes specified in Section 54307.1.
6579.5. In addition to the revenue bonds authorized by this article
and in addition to other powers, any agency, commission, or board
provided for by a joint powers agreement entered into pursuant to
Article 1 (commencing with Section 6500) of this chapter, if such
entity has the power to acquire, construct, maintain, or operate
systems, plants, buildings, works, or other facilities or property
for the purposes of disposal, treatment, or conversion to energy and
reusable materials of solid waste, may issue revenue bonds pursuant
to the Revenue Bond Law of 1941, Chapter 6 (commencing with Section
54300) of Part 1 of Division 2 of Title 5, to pay the cost and
expenses of acquiring, constructing, improving, and financing a
project for any and all such purposes.
Upon adopting the resolution referred to in Article 3 (commencing
with Section 54380) of Chapter 6 of Part 1 of Division 2 of Title 5,
the entity shall implement the resolution by conducting an election
in its own territory as provided in Section 54307.3. The proposition
authorizing the bonds shall be deemed adopted if it receives the
affirmative vote of a majority of all the voters voting on the
proposition within the entity.
6540. As used in this article "bonds" means revenue bonds, notes or
other evidences of indebtedness.
6541. "Bondholder" or "holder of bonds" or any similar term, as
used in this article, shall mean any person who shall be the bearer
of any outstanding revenue bond or the owner of bonds which shall at
the time be registered to other than to bearer.
6542. "Entity" as used in this article means any agency, board or
commission provided for by a joint powers agreement pursuant to
Article 1 of this chapter. Such agency, board or commission is an
entity separate from the public agencies which are parties to such
agreement.
6542.1. "Fair and exhibition authority," as used in this article,
means an entity created by a joint powers agreement for the purpose
of financing or otherwise facilitating agricultural, livestock,
industrial, cultural, or other types of fairs or exhibitions.
6542.5. "Local agency" as used in this article means any public
agency designated in Section 6500 other than the federal government
or any federal department or agency, this state, an adjoining state,
or any state department or agency.
6543. "Governing body" as used in this article means the board or
commission provided for by a joint powers agreement, pursuant to
Article 1 of this chapter.
6544. "Indenture" as used in this article means the instrument
providing the terms and conditions for the issuance of the revenue
bonds, and may be a resolution, order, agreement or other instrument.
6545. "Project" as used in this article includes buildings,
structures, improvements and all facilities appurtenant thereto or
provided therefor together with land and offstreet parking facilities
necessary therefor to be financed by revenue bonds issued pursuant
to this article. In addition, with respect to a facility for the
generation or transmission of electric energy, a project also
includes an ownership interest or a capacity right in that facility
that may be situated in whole or in part within or without the state.
In addition, with respect to a telecommunication system or service,
a project also includes a contract for the installation, provision,
or maintenance of that system or service. In addition, a project also
includes any of the purposes specified in an agreement pursuant to
Section 6516.
6546. In addition to other powers, any agency, commission, or board
provided for by a joint powers agreement pursuant to Article 1
(commencing with Section 6500) may issue revenue bonds pursuant to
this article to pay the cost and expenses of acquiring or
constructing a project or conducting a program for any or all of the
following purposes:
(a) An exhibition building or other place for holding fairs or
exhibitions for the display of agricultural, livestock, industrial,
or other products, including movable equipment, entertainment
facilities, and other facilities to be used in conjunction with
holding a fair or exposition in several locations including those
projects and facilities specified in paragraph (1) of subdivision (a)
of Section 19606.1 of the Business and Professions Code, that
project and facility authorized by Article 3.5 (commencing with
Section 4161) of Chapter 6 of Part 3 of Division 3 of the Food and
Agricultural Code, and for those purposes specified in an agreement
pursuant to Section 6516 of the Government Code.
(b) A coliseum, a stadium, a sports arena or sports pavilion or
other building for holding sports events, athletic contests, contests
of skill, exhibitions, spectacles, and other public meetings.
(c) Any other public buildings, including, but not limited to,
general administrative facilities of a city, county, city and county,
special district, or authority.
(d) A regional or local public park, recreational area, or
recreational center, and all facilities and improvements related
thereto.
(e) A facility for the generation or transmission of electrical
energy for public or private uses and all rights, properties, and
improvements necessary therefor, including fuel and water facilities
and resources. As used in this chapter, "transmission of electric
energy" does not include the final distribution of electric energy to
the consumer.
(f) A facility for the disposal, treatment, or conversion to
energy and reusable materials of solid or hazardous waste or toxic
substances.
(g) Facilities for the production, storage, transmission, or
treatment of water or waste water.
(h) Local streets, roads, and bridges.
(i) Bridges and major thoroughfares construction pursuant to
Sections 50029 and 66484.3.
(j) Mass transit facilities or vehicles.
(k) Publicly owned or operated commercial or general aviation
airports and airport-related facilities.
(l) Police or fire stations.
(m) Public works facilities, including corporation yards.
(n) Public health facilities owned or operated by a city, county,
city and county, special district, or authority.
(o) Criminal justice facilities, including court buildings, jails,
juvenile halls, and juvenile detention facilities.
(p) Public libraries.
(q) Publicly owned or operated parking garages.
(r) Low-income housing projects owned or operated by a city,
county, city and county, or housing authority.
(s) Public improvements authorized in a project area created
pursuant to the Community Redevelopment Law, Part 1 (commencing with
Section 33000) of Division 24 of the Health and Safety Code.
(t) Public improvements authorized pursuant to the Improvement Act
of 1911, Division 7 (commencing with Section 5000) of the Streets
and Highways Code, the Improvement Bond Act of 1915, Division 10
(commencing with Section 8500) of the Streets and Highways Code, the
Municipal Improvement Act of 1913, Division 12 (commencing with
Section 10000) of the Streets and Highways Code, and the Mello-Roos
Community Facilities Act of 1982, Chapter 2.5 (commencing with
Section 53311) of Part 1 of Division 2 of Title 5.
(u) Telecommunication systems or service, including, but not
limited to, the installation, provision, or maintenance of that
system or service.
(v) Programs, facilities, rights, properties, and improvements for
the management, conservation, reuse, or recycling of electric
capacity or energy, natural gas, water, waste water, or recycled
water, including demand side or load management and other programs
and facilities designed to reduce the demand for, or permit or
promote the efficient use of, those resources.
"Programs," for the purpose of this subdivision, shall include
activities only to the extent the costs thereof may be charged to a
capital account under applicable generally accepted accounting
principles or are of a type required to be charged to a capital
account by entities subject to regulation by the Public Utilities
Commission or other regulatory body of the state.
(w) Equipment necessary to support the above-listed facilities or
necessary to deliver public services therefrom, including, but not
limited to, telecommunications equipment, computers, and service
vehicles.
Bonds may be issued pursuant to this article if the joint powers
entity, or its individual parties which contract pursuant to Section
6547.5, 6547.6, or 6547.7 to make payments to be applied to the
payment of the indebtedness, have the power to acquire, construct,
maintain, or operate one or more of the projects specified in this
section.
6546.1. In the County of Los Angeles, any agency, commission, or
board provided for by joint powers agreement entered into by cities
pursuant to Article 1 (commencing with Section 6500) of this chapter
for the purpose of the acquisition, operation, repair, maintenance,
improvement and administration of the Hollywood-Burbank Airport as a
public airport, pursuant to the Federal Aviation Act of 1958, as
amended, may carry out such purpose and may authorize the issuance of
revenue bonds, pursuant to this article, to pay for acquiring,
repairing, improving, financing and refinancing such project
including all facilities and improvements and all expenses incidental
thereto or connected therewith. Property tax revenues accruing to,
levied by, or collected by any local agency which is a party to such
a joint powers agreement shall not be used to redeem such revenue
bonds unless an ordinance authorizing the use of such property tax
revenues for such purposes is approved by a majority vote of the
electors of the local agency voting on the issue. In operating the
airport, the separate public entity above mentioned shall not permit
or authorize any activity in conjunction with the airport which
results in an increase in the size of the noise impact area based on
a community noise equivalent level of 70 decibels as established
pursuant to Title 21, California Administrative Code, Chapter 2.5,
Subchapter 6, and shall further comply with the future community
noise equivalent levels prescribed by such title as it now exists or
is hereafter amended.
The separate public entity shall implement the noise monitoring
requirements set forth in Title 21, California Administrative Code,
Chapter 2.5, Subchapter 6. In addition, the entity shall diligently
pursue all reasonable avenues available to insure that the adverse
effects of noise are being mitigated to the greatest extent
reasonably possible.
The separate public entity shall not authorize or permit the
lengthening of runways defined herein as the paved portions of the
runways presently on airport property, or the purchase of fee title
to condemned real property zoned for residential use as of the
effective date of this statute.
The power to issue revenue bonds under this section shall be of no
further force and effect after December 31, 1980, unless (1) the
entity shall have initially issued revenue bonds on or prior to
December 31, 1980, or (2) the entity is unable to initially issue
revenue bonds to accomplish the purpose of this section by reason of
litigation, in which case the power to initially issue revenue bonds
under this section shall continue to be effective until the final
determination of such litigation and for one year thereafter. If the
entity shall have initially issued revenue bonds within either of the
time periods permitted by the prior sentence of this paragraph, the
power to issue revenue bonds under this section shall continue so
long as this section shall be in effect.
6546.2. In addition to other powers, any agency, commission or
board provided for by joint powers agreement pursuant to Article 1
(commencing with Section 6500) of this chapter and created in a
county of the third class as determined by Sec. 28020 may, by
ordinance, authorize the issuance of revenue bonds pursuant to this
article to pay the cost and expenses of acquiring or improving a
regional public park or regional public recreation area and all
facilities and improvements related thereto.
6546.3. Notwithstanding any other provision of law, any local
agency entering into one or more leases or rental contracts or
agreements with a joint powers entity formed for the purposes
specified in Section 6546.2 shall do so only following the effective
date of an ordinance adopted by the governing body of the local
agency authorizing the local agency to enter into one or more such
leases or rental contracts or agreements. Any ordinance adopted
pursuant to this section shall not take effect until and unless it
shall first have been approved by a majority of the voters of the
local agency. The ordinance submitted to the voters shall, in general
terms:
(a) Describe the property or facilities to be leased or rented.
(b) State the maximum time period for which the lease or rental
contract or agreement will run.
(c) State the maximum amount to be paid by the local agency to the
joint powers entity under the lease or rental contract or agreement
and the maximum yearly or monthly payments to be made thereon.
In the event that the governing body of the local agency desires
to levy, or have levied on its behalf, a property tax rate in
addition to the maximum property tax rate established pursuant to
Article 4 (commencing with Section 2260) of Chapter 3 of Part 4 of
Division 1 of the Revenue and Taxation Code, to provide funds for the
preparation of plans and specifications, the payment of rentals and
other amounts payable by the local agency under any such lease or
rental contract or agreement or the payment of other costs and
expenses related to the operation or maintenance of the regional
public park or regional public recreation area, the governing body
may specify in the ordinance to be submitted to the voters the
additional property tax rate to be authorized for such purposes and
the number of years for which such additional property tax rate shall
be authorized. The revenue from such an additional property tax rate
shall be used only for the purposes specified in the ordinance. Such
additional property tax rate, when levied, shall be reported to the
State Controller as provided in Section 2325 of the Revenue and
Taxation Code.
As used in this section, "property tax rate" shall have the
meaning specified in Section 2213 of the Revenue and Taxation Code.
For purposes of this section "lease or rental contract or
agreement" means any lease, sublease, contract or other agreement
involving land or buildings, structures or other facilities which are
permanently attached to land, where the lease, sublease, contract or
agreement is made directly or indirectly between a local agency and
a joint powers entity, if the proceeds of the lease, sublease,
contract or agreement provided by the local agency will be used in
whole or in part by such joint powers entity for payment of principal
or interest on any bonds issued by it pursuant to Section 6546.2.
6546.4. The governing body of any local agency adopting an
ordinance pursuant to Section 6546.3 shall call an election for
purposes of submitting to the qualified electors of the agency the
question of whether the ordinance shall be adopted. Such election
shall be called, held, conducted and the votes canvassed in the same
manner, or as near thereto as is possible, as an election at which
the local agency submits a general obligation bond proposal to its
voters.
For purposes of this section the voters of the local agency shall
be the voters entitled to vote at elections for members of the
governing board of the agency, if the agency has an elected governing
board, and the vote of each such voter shall be given the same
weight as it would be given in an election for members of the
governing board. If a local agency does not have an elected governing
board, the voters of the agency shall be the voters residing within
the boundaries of the agency who would be qualified to vote for
candidates for Governor at any gubernatorial election. If a majority
of the votes cast within a local agency are for adoption of the
ordinance, the ordinance shall be deemed adopted; provided, however,
that the ordinance shall not take effect until a certified copy of
the record of the final canvass of votes is filed with the Secretary
of State.
If a local agency does not have statutory power to introduce an
ordinance and submit it to the voters of the agency, the governing
body of such local agency may introduce and submit such ordinance at
any regular meeting by the approving votes of a majority of all of
its members.
6546.5. In the event that two-thirds of the votes cast in an
election called pursuant to Section 6546.4 are against adoption of
the ordinance, no ordinance authorizing the local agency to enter
into a lease or rental contract or agreement for the same or
substantially the same purpose shall be submitted to the voters of
that local agency for a period of one year from the date of the
election.
6546.5. For purposes of an agency, commission, or board that is
authorized pursuant to subdivision (g) of Section 6546 to issue
revenue bonds for facilities for the production, storage,
transmission, or treatment of water or waste water, that authority
includes the authority to issue revenue bonds for facilities to
remove hazardous substances, pollutants, or contaminants from that
water.
6546.6. In addition to any other powers, any agency, commission, or
board provided for by joint powers agreement entered into by cities
pursuant to Article 1 (commencing with Section 6500) and created in a
county of the fifth class, as determined by Section 28020, may issue
revenue bonds pursuant to this article to pay all or part of the
cost and expenses of acquiring, constructing, or improving,
facilities for the collection, treatment or disposal of sewage,
waste, or stormwater, provided that entity has the power to
construct, maintain, or operate the facilities.
6546.7. Public agencies may enter into a joint powers agreement for
the purposes of creating a fair and exhibition authority with the
power to issue revenue bonds for financing projects under this
article. A fair and exhibition authority of which the Department of
Food and Agriculture is a contracting party, may contract with citrus
fruit fairs for the financing of projects for such fairs and may
issue revenue bonds for such purpose. A fair and exhibition authority
of which a county is a contracting party, which county contracts
with a nonprofit corporation to conduct a fair pursuant to Sections
25905 and 25906 of the Government Code, or any similar or successor
provision, may contract with such nonprofit corporation for the
financing of projects for such fairs, and may issue revenue bonds for
such purpose.
6546.11. In addition to other powers, any joint powers entity
created to exercise the powers granted by Chapter 8 (commencing with
Section 33750) of Part 1 of Division 24 of the Health and Safety Code
or Part 13 (commencing with Section 37910) of Division 24 of the
Health and Safety Code, may issue revenue bonds for the purposes, and
in accordance with the procedures, specified in those statutory
provisions.
6546.12. In any county with a population determined by the last
official census of 4,000,000 or more, any agency, commission, or
board provided for by joint powers agreement entered into by cities
pursuant to Article 1 (commencing with Section 6500) for the purpose
of the acquisition of land, design, engineering, construction,
operation, maintenance, improvement, and administration of an
intermodal container transfer facility, may carry out that purpose
and may authorize the issuance of revenue bonds, pursuant to this
article, to pay for acquiring the land, designing, engineering,
constructing, and improving that project, including all facilities,
improvements, and all expenses incidental thereto or connected
therewith.
The power to issue revenue bonds under this section shall be of no
further force and effect after December 31, 1995, unless (1) the
entity has initially issued revenue bonds on or prior to December 31,
1995, or (2) the entity is unable to initially issue revenue bonds
to accomplish the purpose of this section by reason of litigation
relating to the initial issuance, in which case the power to
initially issue revenue bonds under this section shall continue to be
effective until the final determination of that litigation and for
one year thereafter. If the entity has initially issued revenue bonds
within either of the time periods permitted by the prior sentence of
this paragraph, the power to issue subsequent issues of revenue
bonds under this section shall continue so long as this section shall
be in effect.
6546.13. (a) The Alameda Corridor Transportation Authority, or its
successor organization, may issue revenue bonds pursuant to this
article or bonds pursuant to Article 4 (commencing with Section
6584), for the limited purpose of paying for acquiring the land, and
designing, engineering, constructing, and improving that project,
including all facilities and improvements of the consolidated
transportation corridor, and including all associated financing
costs. Ineligible expenses shall include any expenses for the
maintenance, operations, and administration of the consolidated
transportation corridor.
(b) For the purposes of this section, "consolidated transportation
corridor" means a transportation corridor created to improve highway
or rail access to the Ports of Long Beach and Los Angeles.
(c) Anticipated sources of revenue or other funds to pay the
principal of and interest on the bonds authorized by this section may
include a pledge or revenues from the Ports of Long Beach and Los
Angeles, railroad use fees, truck fees, and pledges from other public
and private sources.
(d) Any joint powers entity seeking authorization to issue revenue
bonds pursuant to this section shall do so in compliance with
Sections 6547 and 6547.5.
(e) Any joint powers entity under this section seeking to issue
bonds pursuant to the Marks-Roos Local Bond Pooling Act of 1985
(Article 4 (commencing with Section 6584)) shall do so in compliance
with all of the provisions under Article 4 (commencing with Section
6584).
(f) The authority to issue revenue bonds under this article or
bonds under Article 4 (commencing with Section 6584) shall be of no
further force and effect after December 31, 2015, unless (1) the
joint powers authority has initially issued revenue bonds or bonds on
or prior to December 31, 2015, or (2) the joint powers authority is
unable to initially issue revenue bonds or bonds to accomplish the
purpose of this section by reason of litigation relating to the
initial issuance, in which case the authority to initially issue
revenue bonds under this article and bonds under Article 4
(commencing with Section 6584) shall continue to be effective until
the final determination of that litigation and for one year
thereafter. If the joint powers authority has initially issued
revenue bonds or bonds within either of the time periods permitted by
this subdivision, the authority to issue subsequent issues of
revenue bonds or bonds and to refund any issue of revenue bonds under
this article or bonds under Article 4 (commencing with Section 6584)
shall continue as long as initially issued revenue bonds or bonds
remain outstanding and unpaid.
6547. The power of the entity to issue revenue bonds is additional
to the powers common to the parties to the joint powers agreement,
but shall not be exercised until authorized by the parties to that
agreement. However, in the case of the issuance of revenue bonds by a
fair and exhibition authority this authorization shall not be
required. In the case of the issuance of revenue bonds by an entity
created pursuant to this chapter to construct bridges and major
thoroughfares, as referred to in Section 66484.3, the power of the
entity to issue revenue bonds shall be exercised by a resolution
adopted by a majority vote of the governing body of the entity during
a regular meeting held pursuant to Section 54954. However, no member
of the entity may vote on the question of bond issuance unless the
member has been authorized to vote on that particular question by
previous resolution of the public agency the member represents. In
the case of the issuance of revenue bonds by an entity created
pursuant to this chapter to carry out a consolidated transportation
corridor project, as referred to in Section 6546.13, the power of the
entity to issue revenue bonds shall be exercised by a resolution
adopted by a majority vote of the governing body of the entity. In
the case of a project for the generation or transmission of electric
energy or a project for the disposal, treatment, or conversion to
energy and reusable materials of solid waste, or a project for an
intermodal container transfer facility, or a project for the
construction of bridges and major thoroughfares pursuant to Section
66484.3, this power shall include the power to issue notes for the
purpose of financing studies, the acquisition of options, permits,
and other preliminary costs to be incurred prior to the undertaking
of the construction or acquisition of a project, and for the purpose
of providing temporary financing of costs of construction or
acquisition of a project. These notes may be issued at public or
private sale, and may be renewed from time to time, and the principal
and interest with respect thereto may be made payable from the
revenues of the entity unless paid from the proceeds of revenue
bonds.
Every local agency shall make any authorization, as permitted
under the first sentence of this section, by ordinance, unless
otherwise prescribed in this section. Except as provided in this
section, the ordinance shall describe in general terms the project,
or projects, to be funded by the revenue bonds, the maximum amount of
the bonds proposed to be issued, and the anticipated sources of
revenue to redeem the bonds. In the case of a project for the
generation or transmission of electric energy or a project for the
disposal, treatment, or conversion to energy and reusable materials
of solid waste, or a project for an intermodal container transfer
facility, or a project for the construction of bridges and major
thoroughfares pursuant to Section 66484.3, the ordinance shall
describe in general terms the project or the studies or other
preliminary costs therefor to be funded by the revenue bonds or
notes, the estimate of the maximum amount of bonds to be issued for
the project or the studies or other preliminary costs, and the
anticipated sources of revenue or other funds to pay the principal of
and interest on the bonds or notes. In the case of a project for a
consolidated transportation corridor pursuant to Section 6546.13, the
authorizing resolution shall describe in general terms, the project
or projects to be funded by the revenue bonds, the maximum amount of
bonds proposed to be issued for the project or projects, and the
anticipated sources of revenue or other funds to pay the principal of
and interest on the bonds. However, the statement of the estimated
maximum amount of the bonds or notes shall not be deemed to prevent
the authorization by the ordinance of the issuance of bonds or notes
by the entity in amounts that may exceed the estimate without further
authorization under the ordinance if and to the extent the
additional bonds or notes shall be required to complete the financing
of the project or the studies or other preliminary costs. Each
ordinance shall state that it is subject to the provisions for
referendum prescribed by Section 9142 of the Elections Code.
A separate authorization shall be required for each separate bond
issue proposed by the entity, except that, in the case of a project
for the generation or transmission of electric energy or a project
for the disposal, treatment, or conversion to energy and reusable
materials of solid waste, or a project for an intermodal container
transfer facility, or a project for the construction of bridges and
major thoroughfares pursuant to Section 66484.3, a single
authorization shall be sufficient for bonds that may be issued in
installments from time to time for a project or the costs of studies
or other preliminary costs therefor that shall be identified in the
authorization.
The requirement of an ordinance and the right to referendum
thereon shall not apply to the issuance of revenue bonds if, prior to
March 4, 1971, one or more local or public agencies shall have taken
formal action to implement any one or more projects to be acquired
or constructed pursuant to a joint powers agreement. Formal action to
implement any one or more projects shall include, but not be limited
to, any of the following:
(a) The incurring of liability for a substantial portion of an
architectural or engineering contract or other contract relating to a
project.
(b) The acquisition of land or improvements for the project.
(c) The making of a substantial contribution toward the project.
Notwithstanding the requirement that parties to a joint powers
agreement authorize the issuance of revenue bonds, in the case of a
project that consists of the generation or transmission of electric
energy financed in whole or in part by the issuance of revenue bonds,
only those local agencies that contract to make payments to be
applied to the payment of the revenue bonds shall be required to
authorize the issuance of the revenue bonds.
Any authorizations required by this section for the issuance of
revenue bonds to construct bridges and major thoroughfares projects
pursuant to Section 50029 or 66484.3 may be by ordinance or
resolution.
6547.1. Any entity which shall have been authorized to exercise the
power to issue revenue bonds pursuant to this article shall have the
further additional power to incur other forms of indebtedness
pursuant to this section. Said further additional power shall not be
exercised until authorized by the parties to the agreement. Said
indebtedness may be evidenced by one or more bonds of any
denomination issued pursuant to this article, or may consist of a
note, warrant or other evidence of indebtedness which may be secured
by a pledge, with the power of sale, of all or any part of bonds
theretofore authorized or issued under this article. Said bond or
bonds, or notes, warrants, or other evidences of indebtedness may be
issued in negotiable form, in which case they shall be negotiable.
The resolution authorizing the incurring of an indebtedness pursuant
to this section may make any of the covenants and provide any of the
terms or conditions authorized to be made or provided for in the case
of bonds issued under this article, may provide for the sale or
other disposition of any pledged bonds, and may contain any other
covenant, term or condition which the governing body of the entity
deems necessary or desirable to facilitate the incurring of said
indebtedness or for the protection of the lender. Any such
indebtedness shall be payable only from such sources as are
authorized under this article for the payment of principal and
interest on bonds or from the proceeds of refunding bonds issued
pursuant to this article. Such indebtedness of the entity shall not
constitute a debt, liability or obligation of any of the public
agencies who are parties to the agreement creating such entity.
6547.2. Notice of the enactment of an ordinance subject to
referendum under Section 6547 shall be published after adoption as
required by Section 6040.1 within 15 days after the adoption of the
ordinance.
If a local agency does not otherwise have statutory power to enact
an ordinance pursuant to Section 6547, the governing body of the
local agency is hereby empowered to introduce and enact the ordinance
at any regular or adjourned regular meeting by the approving votes
of a majority of all of its members. If ordinances of a local agency
are not otherwise subject to referendum, then (1) the governing body
of the local agency may refer any ordinance enacted pursuant to
Section 6547 to the electors of the local agency in the same manner
as the board of supervisors of a county may refer county questions
pursuant to Section 9140 of the Elections Code, and (2) the electors
of the local agency shall have the right to petition for referendum
on the ordinance in the same manner and subject to the same rules as
are set forth in Sections 9141 to 9145, inclusive, of the Elections
Code, except that all computations referred to in those sections and
officers of the county mentioned in those sections shall be construed
to refer to comparable computations and officers of the local
agency. If the governing board of a local agency is an elected board
the electors of the local agency for the purposes of this section
shall be the electors of the territory entitled to vote at elections
for members of the governing board. If a local agency does not have
an elected governing board, the electors residing within the
boundaries of the local agency who would be qualified to vote for
candidates for Governor at any gubernatorial election shall be the
electors of the local agency for the purposes of this section.
6547.3. In the event that an ordinance enacted pursuant to Section
6547 authorizing the entity to issue revenue bonds is subjected to a
successful referendum election or is repealed or rescinded by a local
agency, no ordinance authorizing the entity to issue revenue bonds
for the same purpose shall be passed by that local agency for a
period of one year from the date of such referendum, repeal or
rescission.
6547.4. Except for the requirement of an ordinance and the right to
referendum thereon, the amendments to Section 6547 adopted at the
1971 Regular Session of the Legislature shall not limit or affect any
heretofore existing right of any public agency to be a party to a
joint powers agreement which authorizes an entity to issue bonds
under this article, including the right to accomplish a public
purpose of such public agency regardless of whether such public
agency is obligated to make any contribution or payment of public
funds or property.
6547.5. A joint powers entity created pursuant to this chapter may
issue revenue bonds pursuant to this article upon authorization by
ordinance of only those individual parties to the joint powers
agreement which contract to make payments to be applied to the
payment of the revenue bonds, provided that the nonparticipating
parties to the agreement incur no financial obligations under the
issuance.
6547.6. A joint powers entity created pursuant to this chapter may
incur other forms of indebtedness pursuant to Section 6547.1 for one
or more projects specified in Section 6546 upon authorization by
ordinance of only those individual parties to the joint powers
agreement which contract to make payments to be applied to the
payment of the instruments of indebtedness, provided that the
nonparticipating parties to the agreement incur no financial
obligations under such instruments of indebtedness.
6547.7. A joint powers entity created pursuant to this chapter may
issue mortgage revenue bonds pursuant to Part 5 (commencing with
Section 52000) of Division 31 of the Health and Safety Code and
industrial development bonds pursuant to the California Industrial
Development Financing Act (Title 10 (commencing with Section 91500)).
6547.8. No member of the governing body of the authority shall be
personally liable on the bonds or be subject to any personal
liability or accountability by reason of the issuance of bonds
pursuant to this chapter.
6547.9. The Treasurer is designated as an elected representative
for federal tax purposes of a joint powers agency created pursuant to
this chapter. In the discretion of the joint powers agency, the
Treasurer is authorized to approve or certify the issuance of bonds,
notes, or other evidence of indebtedness, issued by or on behalf of
that joint powers agency, to the extent this approval is required by
federal tax law.
6548. The revenue bonds may be issued to provide all or any part of
the funds required for the acquisition, construction and financing
of said project, including any or all expenses incidental thereto or
connected therewith, and such expenses may include engineering,
inspection, legal and fiscal agents' fees, costs of the issuance and
sale of said bonds, working capital, reserve fund, and bond interest
estimated to accrue during the construction period and for a period
of not to exceed 12 months after completion of construction. The
proceeds of the bonds shall be used only for the project provided for
in the indenture pursuant to which such revenue bonds are issued.
6548.5. The level of fees or charges imposed by, or on behalf of,
an agency or entity for the issuance of bonds pursuant to this
article shall be disclosed in a report of final sale submitted to the
California Debt and Investment Advisory Commission pursuant to
Chapter 11.5 (commencing with Section 8855) of Division 1 of Title 2.
6549. An indenture providing the terms and conditions for the
issuance of the bonds and the covenants relating thereto shall be
adopted in or approved by resolution. Such indenture shall describe
or state the revenues and funds from which the bonds shall be
payable. Such funds or revenues shall include the revenues derived
from the operation of the project or projects for which the bond
proceeds are used or expended and any other revenues derived
therefrom, and may also include revenue, including existing funds, of
the entity derived from any other building or buildings, coliseum,
stadium, facilities or other sources and any or all extensions or
renewals thereof.
6550. The principal and interest of the bonds shall be payable:
(a) First, out of the revenue derived from the operation of the
project or projects for which the bond proceeds were or are to be
used or expended, or any other revenues derived from said project;
(b) Second, from such other revenues, including existing funds, of
the entity as are described or stated as security for the bonds in
the indenture in accordance with Section 6549 hereof.
6551. Revenue bonds issued under this article and contracts or
obligations entered into to carry out the purposes for which bonds
are issued, payable in whole or in part from the proceeds of said
bonds, shall not constitute a debt, liability or obligation of any of
the public agencies who are parties to the agreement creating such
entity.
6552. All bonds issued by the entity shall contain a recital on
their face that neither the payment of the principal or any part
thereof nor any interest thereon constitutes a debt, liability or
obligation of any of the public agencies who are parties to the
agreement creating such entity.
6553. The indenture authorizing the issuance of the bonds shall
recite the objects and purposes for which the bonds are to be issued,
which may include any or all of the purposes stated in this article
and which shall comprise the project, the principal amount of the
bonds, the maximum rate of interest to be payable thereon which shall
not exceed the maximum rate permitted by Section 53531, payable at
the intervals which the governing body determines, and which may be
fixed or variable and simple or compound, the date or dates of issue
of the bonds, the maturity date or dates thereof, and the fund or
funds from which the bonds and the interest thereon and premiums upon
the redemption of any thereof are to be payable, and any other
provisions authorized by this article as the governing body of the
entity deems necessary or desirable. However, in the case of a
project for the generation or transmission of electric energy, the
maximum rate of interest shall not be applicable to bonds issued to
continue or complete financing of a project for which bonds shall
have theretofore been issued. The bonds shall be issued in negotiable
form and shall be negotiable. The recitals or regularity of
proceedings in any revenue bond issued and sold under this article
shall be conclusive evidence of compliance with this article and of
the validity of the bond. The bonds may be issued and sold to the
United States of America, or the State of California, or to any
appropriate department or agency thereof, to provide a source for the
payment of principal and interest on any loan made by the United
States of America, or the State of California, or agency thereof, to
any agency created by an agreement entered into pursuant to this
chapter.
6554. The indenture authorizing the issuance of such bonds shall
provide the denomination or denominations of the bonds, the medium of
payment of principal thereof and interest thereon, the place or
places of payment of said bonds and interest, which may be within or
without the State of California, the form of said bonds (including
recitals of regularity of the proceedings for the issuance thereof)
and of interest coupons appertaining thereto, the form, denominations
and conditions of any temporary bonds or interim certificates, and
the manual and facsimile signatures to be attached to the bonds or
certificates (one signature upon which must be manual) and the manual
or facsimile signature to be affixed to the interest coupons.
6555. In the indenture authorizing the issuance of said bonds the
governing body may also fix additional terms and conditions and may
in any article, section or clause thereof make such provision or
covenant as it may deem necessary or desirable to facilitate the
issuance and sale of the bonds or for the protection or security of
the holders thereof, including, without affecting the generality of
the foregoing, provision for any or all of the matters stated in
Sections 6556 to 6568 of this article.
6556. Said indenture may provide the terms and conditions under
which said bonds may be paid, redeemed before maturity (including the
premiums, if any, to be payable upon bonds redeemed prior to
maturity), exchanged, registered, transferred, and negotiated. No
bond shall be redeemable prior to maturity unless a statement
substantially to that effect is contained in the bond.
6557. Said indenture may include covenants or other provisions
relating to the bonds issued thereunder requiring the entity to fix,
prescribe and collect rates, tolls, fees, rentals or other charges in
connection with the services and facilities furnished from the
project acquired or constructed from the proceeds of bonds, and it
may require such rates, tolls, fees, rentals or other charges to be
sufficient to pay principal of and interest on the bonds as they
become due, together with all expenses of operation, maintenance and
repair of the project and such additional sums as may be required for
any sinking fund, reserve fund or other special fund provided for
the further security of such bonds, or as a depreciation charge or
other charge in connection with such project; provided, however, that
all rates, tolls, fees, rentals or other charges in connection with
the services and facilities furnished by the project shall be subject
to such provisions, if any, relative thereto as may be contained in
the contract or agreement between the public agencies creating such
entity.
6558. The indenture may include covenants or other provisions,
other than or in lieu of the provisions required by Article 1
(commencing with Section 6500) of this chapter, relating to the
collection, deposit and safekeeping of the revenues, the permissible
uses thereof, the special fund or funds to be kept for the payment of
principal and interest of the bonds, including reserve, sinking,
bond service, redemption and trust funds, and any bond payable from
the revenue fund may be paid from any such special fund set up
therefor; the appointment of a trustee; the permissible investments
for moneys in said funds, or any thereof, the accounts and records to
be kept, audits thereof and examination thereof by bondholders and
others, and reports to be made by the entity. Any indenture providing
for the appointment of a trustee shall limit such trustee's power of
investment to only such investments as are authorized by Section
53601.
6559. The indenture may include a covenant or other provision
relating to the insurance upon such project, or any part thereof,
against any or all risks, and in case of loss the application of the
insurance proceeds.
6560. The indenture may include a covenant or other provision
containing prohibitions against or limitations upon the sale, lease
or other disposition of such project or any part thereof.
6561. The indenture may contain covenants or other provisions
providing for prohibitions against or limitations upon the issuance
of any additional bonds or the incurring of additional indebtedness
payable from the revenues of the project.
6562. The indenture may contain covenants or other provisions
whereby the consent or agreement of a stated percentage or number of
the holders of the bonds may bind all bondholders to modifications of
or changes in all or part of the provisions of the indenture
authorizing or providing for the issuance of such bonds, and the
provisions subject to modification or change shall be specified or
stated in such indenture.
6563. The indenture may provide for the issuance of a duplicate in
the manner and upon such terms and conditions as the governing body
of the entity may determine, in the event any bond, temporary bond,
coupon or interim certificate of any issue is lost, destroyed or
mutilated.
6564. The indenture may include a covenant or provision against the
entering into of any agreement which impairs the operation of the
project or any part of it necessary to secure adequate revenues to
pay the principal and interest of the bonds, or which otherwise would
impair the rights of the bondholders with respect to the revenues or
the operation of the project.
6565. The indenture may provide for events of default and the terms
upon which the bonds may be declared due before maturity and the
terms upon which that declaration and its consequences may be waived.
6566. The indenture may provide for the rights, liabilities, powers
and duties arising upon the entity's breach of any covenants,
conditions or obligations of the indenture.
6567. The indenture may provide for a fiscal agent and the deposit
of funds therewith.
6568. The indenture may contain any other provision or covenant
valid under the Constitutions of the State of California and the
United States of America which the governing body of the entity deems
necessary or desirable to facilitate the issuance and sale of the
bonds or for the protection or security of holders thereof.
6569. The indenture authorizing the issuance of said bonds and all
resolutions or orders in the proceeding for the issuance of said
bonds shall constitute a contract with the holders of the bonds, and
such contract may be enforced by any holder by mandamus, injunction
or any applicable legal action, suit, proceeding or other remedy.
6570. Any bonds issued under this act shall be payable within not
more than forty (40) years from the date of issue thereof. No bond
may be made payable at a time later than the end of the term of the
agency, board or commission as provided in the joint powers agreement
in effect at the time the bonds are issued.
6571. The bonds shall be issued and sold as the governing body may
determine and for not less than par and accrued interest to date of
delivery, except that, in the case of a project for the generation or
transmission of electric energy, a project for the disposal,
treatment, or conversion of energy and reusable materials of solid
waste, a project for a purpose specified in Section 6546.6, a project
for the construction of bridges and major thoroughfares pursuant to
Section 66484.3, a project for an intermodal container transfer
facility specified in Section 6546.6, a project for a consolidated
transportation corridor pursuant to Section 6546.13, a project funded
by a joint powers authority formed to provide port or harbor
infrastructure pursuant to Part 1 (commencing with Section 1690) of
Division 6 of the Harbors and Navigation Code, or in the case of
bonds of a fair and exhibition authority, the bonds may be sold at
less than par if the governing body determines that the sale will
result in more favorable terms for the bonds. The sale shall be
conducted in compliance with Chapter 10 (commencing with Section
5800) of Division 6 of Title 1, unless, in the case of a project for
the generation or transmission of electric energy, a project for the
disposal, treatment, or conversion of energy and reusable materials
of solid waste, a project for the development and construction of an
intermodal container transfer facility specified in Section 6546.6, a
project for a consolidated transportation corridor pursuant to
Section 6546.13, a project for the construction of bridges and major
thoroughfares pursuant to Section 66484.3, a project funded by a
joint powers authority formed to provide port or harbor
infrastructure pursuant to Part 1 (commencing with Section 1690) of
Division 6 of the Harbors and Navigation Code, or in the case of
bonds of a fair and exhibition authority, the governing body shall
determine that a negotiated sale of the bonds is necessary, in which
case the bonds shall be sold on the terms approved by the governing
body.
The proceeds from the sale (except premium and accrued interest,
which shall be paid into the bond service or other fund designated or
established for the payment of the principal and interest of the
bonds) shall be paid into the construction fund or other fund
designated by the indenture authorizing the issuance of the bonds and
shall be applied exclusively to the objects and purposes set forth
in the indenture, including all expenses incidental thereto or in
connection therewith, and also including the payment of interest on
the bonds during the period of study and construction of the project
and for a period not to exceed 12 months after completion of the
construction.
6571.2. Any joint powers agency which, prior to January 1, 1972,
has issued revenue bonds pursuant to Section 6571.1 of this article
for the purpose of acquiring and constructing sanitary sewer
facilities, may, in addition to the powers authorized by Article 1
(commencing with Section 6500) and this article issue revenue bonds
for the following purposes:
(a) To refund all or any part of the principal amount of any
revenue bonds previously issued for the acquisition and construction
of sanitary sewer facilities.
(b) To acquire directly by acquisition of title or by acquisition
of capacity rights, and construct, sanitary sewer facilities,
including but not limited to collection, treatment, and disposal
works and facilities or the refunding of such bonds; provided, that
this subdivision shall have no force or effect after December 31,
1977.
6572. The bonds shall be secured by a pledge of and lien upon the
revenues of the project described in the indenture authorizing the
issuance of the bonds, and such revenues may be used only as provided
in said indenture. The revenues of the project include revenues from
improvements to or additions to or extensions thereof later
constructed or made. The bonds shall also be secured by additional
revenues, including existing funds, if any, of the entity from other
sources, to the extent set forth in the indenture.
6573. So long as any bonds or interest coupons thereof are
outstanding and unpaid, the revenues and interest thereon shall not
be used for any purpose not authorized by the indenture, unless the
authority to make such use of revenues shall be authorized by the
bondholders pursuant to the provisions of the indenture, and during
such period the joint powers agreement shall be irrevocable and may
not be amended or modified in any manner to the detriment of the
bondholders. Any bond for the payment and discharge of which, upon
maturity or upon redemption prior to maturity, provision has been
made through the setting apart in a reserve fund or special trust
account created pursuant to this article to insure the payment
thereof, of moneys sufficient for that purpose or through the
irrevocable segregation for that purpose in some sinking fund or
other fund or trust account of moneys sufficient therefor, shall be
deemed to be no longer outstanding and unpaid within the meaning of
any provision of this article.
6574. The entity shall operate, maintain and preserve the project
in good repair and working order, and shall operate the project in an
efficient and economical manner; provided, however, that the entity
may lease or rent concessions, or lease or rent the project or any
part thereof, or otherwise provide for the operation of the project
or any part thereof.
6575. All bonds and the interest thereon or income therefrom are
exempt from all taxation in this State other than gift, inheritance
and estate taxes.
6576. The entity may provide for the issuance, sale or exchange of
refunding bonds for the purpose of redeeming or retiring any revenue
bonds issued by the entity and any other indebtedness incurred by the
entity. All provisions of this article applicable to the issuance of
revenue bonds are applicable to the funding or refunding bonds and
to the issuance, sale or exchange thereof.
6577. Funding or refunding bonds may be issued in a principal
amount sufficient to provide funds for the payment of all of the
following:
(a) All bonds to be funded or refunded by them.
(b) All expenses incident to the calling, retiring, or paying of
the outstanding bonds and the issuance of the funding or refunding
bonds, including the costs of issuing the refunding bonds, as defined
in Section 53550.
(c) Interest upon the funding or refunding bonds from the date of
sale to the date of payment of the bonds to be funded or refunded out
of the proceeds of the sale or the date upon which the bonds to be
funded or refunded will be paid pursuant to the call or agreement
with the holders of such bonds.
(d) Any premium necessary in the calling or retiring of the
outstanding bonds and the interest accruing on them to the date of
the call or retirement.
6578. This article shall be liberally construed to effectuate its
purposes.
6579. In addition to the revenue bonds authorized by this article,
an agency or entity established pursuant to the provisions of this
chapter may also issue revenue bonds pursuant to the provisions of
the Revenue Bond Law of 1941, as contained in Chapter 6 (commencing
with Section 54300) of Part 1 of Division 2 of Title 5, for the
purposes specified in Section 54307.1.
6579.5. In addition to the revenue bonds authorized by this article
and in addition to other powers, any agency, commission, or board
provided for by a joint powers agreement entered into pursuant to
Article 1 (commencing with Section 6500) of this chapter, if such
entity has the power to acquire, construct, maintain, or operate
systems, plants, buildings, works, or other facilities or property
for the purposes of disposal, treatment, or conversion to energy and
reusable materials of solid waste, may issue revenue bonds pursuant
to the Revenue Bond Law of 1941, Chapter 6 (commencing with Section
54300) of Part 1 of Division 2 of Title 5, to pay the cost and
expenses of acquiring, constructing, improving, and financing a
project for any and all such purposes.
Upon adopting the resolution referred to in Article 3 (commencing
with Section 54380) of Chapter 6 of Part 1 of Division 2 of Title 5,
the entity shall implement the resolution by conducting an election
in its own territory as provided in Section 54307.3. The proposition
authorizing the bonds shall be deemed adopted if it receives the
affirmative vote of a majority of all the voters voting on the
proposition within the entity.
