29140-29143

PUBLIC UTILITIES CODE
SECTION 29140-29143




29140.  The board shall, by ordinance, impose transactions and use
taxes in conformity with Part 1.6 (commencing with Section 7251) of
Division 2 of the Revenue and Taxation Code for the purposes
specified in Sections 29142 and 29142.2, subject to periodic
legislative review and amendment.



29141.  Any transactions and use taxes ordinance adopted pursuant to
this article shall be operative on the first day of the first
calendar quarter commencing more than 90 days after the effective
date of this article, or January 1, 1970, whichever is later.
   Prior to the operative date of the ordinance, the district shall
contract with the State Board of Equalization to perform all
functions incident to the administration and operation of the
ordinance.
   If the district shall not have contracted with the State Board of
Equalization prior to the operative date of its ordinance, it shall
nevertheless so contract and in such case the operative date shall be
the first day of the first calendar quarter following the execution
of the contract.
   The contract entered into by the district with the State Board of
Equalization prior to January 1, 1978, for the administration and
operation of the transactions and use tax ordinance shall be amended
to provide for the allocation of the transactions and use tax
revenues pursuant to Section 29142.2.



29142.  (a) Revenues derived from the transactions and use taxes,
not to exceed an aggregate principal amount of one hundred fifty
million dollars ($150,000,000), plus the costs payable by the
district to the State Board of Equalization for preparatory costs and
for its services in connection with such taxes and plus the costs of
issuance of, and interest payments on, bonds or notes secured by
such revenues, shall be used for the planning, acquiring, and
constructing of the district's approximately 75-mile system,
including the San Francisco-Oakland Rapid Transit Tube and any and
all works, structures, property, rolling stock, or other facilities
of any kind which the district is authorized to acquire, construct,
or complete.
   (b) Revenues in excess of the amount specified in subdivision (a)
shall be used for purposes specified in Section 29142.2, operational
purposes, the liquidation of operational deficits, and the payment of
principal and interest on negotiable bonds issued pursuant to
subdivision (c).
   (c) To finance the operation of its rapid transit system during
the 1974-75 fiscal year, the district may issue negotiable bonds in
an amount not to exceed sixteen million dollars ($16,000,000) in
anticipation of the revenues specified in subdivision (b). However,
upon a determination by the board that the issuance of sixteen
million dollars ($16,000,000) in negotiable bonds, together with
other funds available to the district, provide insufficient funds for
the operation of the district during the 1975-76 fiscal year, the
district may issue additional negotiable bonds in an amount not
exceeding eight million dollars ($8,000,000). The district may also
issue additional negotiable bonds in an amount not exceeding one
million three hundred thousand dollars ($1,300,000) if the board
determines that otherwise insufficient funds are available to the
district for its operation during the 1976-77 fiscal year. The
district shall pay the principal and interest on such bonds only from
such revenues. Interest on such bonds may be funded, and paid from
the proceeds of such bonds, for period of not to exceed two years
from the date of such bonds. The board, by resolution shall determine
the form, denomination, maturities, interest rates, and all other
terms and conditions relative to the issuance of such negotiable
bonds.



29142.2.  Notwithstanding Section 7271 of the Revenue and Taxation
Code, after deduction for the cost of the State Board of Equalization
in administering the transactions and use tax, the amounts collected
under the ordinance adopted pursuant to Section 29140 and available
for distribution shall be allocated as follows:
   (a) Seventy-five percent to the San Francisco Bay Area Rapid
Transit District.
   (b) Twenty-five percent shall be allocated by the Metropolitan
Transportation Commission to the San Francisco Bay Area Rapid Transit
District, the City and County of San Francisco for its municipal
railway system, and the Alameda-Contra Costa Transit District for
transit services on the basis of regional priorities established by
the commission. The allocations by the commission to these transit
operators for transit services shall be in accordance with the
criteria in the financial management plan which is to be developed
and annually revised by the commission in coordination with the
Alameda-Contra Costa Transit District, the San Francisco Bay Area
Rapid Transit District, and the City and County of San Francisco.




29142.4.  No funds shall be allocated to an entity pursuant to
Section 29142.2, after January 1, 1978, unless, as determined by the
Metropolitan Transportation Commission, the transit operator:
   (a) Is a participating member of a regional transit coordinating
council which the commission shall establish to better coordinate
routes, schedules, fares, and transfers among the San Francisco Bay
area transit operators and to explore potential advantages of joint
ventures in areas such as marketing, maintenance, and purchasing. The
commission shall be a member of the council.
   (b) Establishes, for the period for which the funds are allocated,
fare levels such that fare revenues equal at least 33 percent of its
operating cost, which shall be all of its costs in the expense
object classes, exclusive of the costs of the depreciation and
amortization expense object classes, of the uniform system of
accounts and records adopted by the State Controller pursuant to
Section 99243. The allocation period shall not be less than one
calendar quarter nor longer than one fiscal year, as determined by
the commission. For purposes of this subdivision, the two special
transit service districts of the Alameda-Contra Costa Transit
District shall be considered separate transit districts. On and after
July 1, 1981, the commission may grant, any operator which was in
compliance with the 33 percent requirement prior to that date, a
credit not to exceed 5 percent to meet that requirement on the basis
of special operating characteristics of its transit system,
including, but not limited to, its transfer and special fare
policies. In no event shall the combined fare revenues of the three
operators, excluding any credit granted by the commission, be less
than 33 percent of their combined operating cost.
   (c) Has complied with standards established by the commission
pursuant to Section 66517.5 of the Government Code.




29142.5.  On and after July 1, 1984, for purposes of meeting the
requirement of subdivision (b) of Section 29142.4, the Metropolitan
Transportation Commission may consider, as fare revenues, that
portion of the local support of an operator for its transit system
which exceeds its base level of operating support as determined by
the commission, if the commission finds that this consideration will
enable the operator to maintain or improve vital transit within a
coordinated fare structure.



29142.6.  Upon determination by the Metropolitan Transportation
Commission that an operator has met the conditions specified in
Section 29142.4, the commission shall notify the State Board of
Equalization of the percentage of the transaction and use taxes to be
allocated to the operator. Upon such notification, the State Board
of Equalization shall transmit to the operator, as promptly as
feasible, its share of the transaction and use taxes.



29142.8.  (a) Any portion of the transactions and use tax revenues
available for allocation and not allocated by the Metropolitan
Transportation Commission shall be invested through the Surplus Money
Investment Fund. The amount invested and the accrued interest
therefrom shall be available for allocation by the commission.
   (b) Any funds which accumulated during a period an operator is not
in compliance with Section 29142.4 may be allocated to any operator
in compliance with that section at the time of allocation.



29143.  (a) The district is hereby authorized to issue revenue
bonds, payable, in whole or in part, from revenues made available
under this article. Those revenues are deemed to be revenues of the
enterprise for all purposes of the Revenue Bond Law of 1941 (Chapter
6 (commencing with Section 54300) of Part 1 of Division 2 of Title 5
of the Government Code), and the restrictions therein provided
against the securing of bonds by the taxing power or the proceeds of
taxation do not apply. The district is deemed a "local agency" and
the planning, acquiring, constructing, operating or maintaining of
the district's rapid transit facilities, or any part thereof, is
deemed an "enterprise," within the meaning of the Revenue Bond Law of
1941. The provisions of that law not inconsistent with any of the
provisions of this article are made applicable to the district,
except that no election shall be required for the issuance of revenue
bonds authorized by the board pursuant to this article and secured,
in whole or in part, by the revenues made available under this
article. Notwithstanding any provision of the Revenue Bond Law of
1941, the resolution or indenture authorizing the issuance of any
revenue bonds secured, in whole or in part, by those revenues shall
provide that the use of the revenues by the district to redeem bonds
shall be continued in effect until the bonds are fully paid or
provision has been made for their payment in full.
   (b) Notwithstanding Section 54388 of the Government Code or any
other law, the revenue bonds authorized by this article may be sold
through negotiated sale conducted in accordance with Section 53591 of
the Government Code.
   (c) The district may borrow money in anticipation of the revenues
made available under this article and may, from time to time, issue
negotiable notes for that purpose.
   (d) In addition to pledging revenues for the payment of any
revenue bonds, the district may pledge for the payment of the bonds
all other income or receipts of the district which are not required
by law to be used for other purposes.