99100-99125

PUBLIC UTILITIES CODE
SECTION 99100-99125




99100.  Whenever the legislative body of any city, or the board of
supervisors of any city and county owns, a municipal transportation
system, either by means of an independent transit authority
established by charter or otherwise, and the legislative body or
board of supervisors finds that areas adjacent to any station of the
transportation system or along the route or lines of the
transportation system, exclusive of any right-of-way of a common
carrier, receive special benefit by reason of the operation thereof
and the legislative body or board of supervisors deems it necessary
to incur a bonded indebtedness for the acquisition, construction,
completion or repair of any or all improvements, works, property or
facilities for such system, or convenient or necessary to carry out
the purposes of the system, and to provide for such bonded
indebtedness to be payable from a special assessment levied upon less
than all the real property of the city or city and county, it shall,
by a resolution adopted by a vote of two-thirds of all members of
the legislative body or board of supervisors, declare and state:
   (a) The purposes for which the proposed debt is to be incurred,
which may include all costs and estimated costs incidental to or
connected with the accomplishment of such purposes, including,
without limitation, engineering, inspection, legal, fiscal agents,
financial consultant, bond and other reserve funds, working capital,
bond interest estimated to accrue during the construction period and
for a period not to exceed three years thereafter, and expenses of
all proceedings for the authorization, issuance and sale of the
bonds;
   (b) The estimated cost of accomplishing said purposes and the
amount of the principal of the indebtedness to be incurred;
   (c) That the legislative body or board of supervisors intends to
form a special benefit district of a portion of the territory of the
city or city and county which in the opinion of the legislative body
or board of supervisors will be benefited, the exterior boundaries of
which portion are set forth on a map on file with the clerk of the
legislative body or the clerk of the board of supervisors, which map
shall govern for all details as to the extent of the proposed benefit
district, and to call an election in such proposed benefit district
on a date to be fixed, for the purpose of submitting to the qualified
voters thereof the proposition of incurring indebtedness by the
issuance of bonds of the city or city and county for said benefit
district;
   (d) That assessments for the payment of said bonds and the
interest thereon shall be levied exclusively upon the taxable land in
the benefit district, except for any right-of-way of a common
carrier;
   (e) The extent to which, if at all, all or a portion of the
revenues of the city or city and county are to be used to pay the
principal of, interest on, and sinking fund payments for, said bonds,
including the establishment and maintenance of any reserve fund
therefor;
   (f) That a general description of the proposed construction area,
together with a map showing the exterior boundaries of said proposed
benefit district with relation to the territory immediately
contiguous thereto and to the proposed improvement is on file with
the clerk of the legislative body or the clerk of the board of
supervisors and is available for inspection by any person or persons
interested;
   (g) The time and place for a hearing by the legislative body or
the board of supervisors on the questions of the formation of said
proposed benefit district, the extent thereof, the proposed
construction, the estimated cost and the amount of debt to be
incurred;
   (h) That at the time and place specified in the resolution any
person interested, including all persons owning property in the city
or city and county or in the proposed benefit district, will be
heard; and
   (i) That at the same time as the board of supervisors is required
by law to fix the general tax levy and in the manner provided for
such general tax levy, the legislative body of any city, or the board
of supervisors of any city and county shall levy and collect upon
all land in the proposed benefit district, except for any
right-of-way of a common carrier, an ad valorem assessment at a
uniform rate which is sufficient, together with revenues already
collected and available therefor, to pay the interest on the said
bonds as the same will become due and such part of the principal
thereof, including any sinking fund installments required by any of
the system's agreements with holders of bonds issued for the benefit
district, as will become due before the proceeds of an assessment
levied at the time of the next general tax levy will be available for
such purposes, and sufficient to provide or to restore such reserve
fund to the amount required by any of the system's agreements with
holders of bonds issued for the benefit district.



99101.  The legislative body of any city or the board of supervisors
of any city and county may establish one or more special benefit
districts within the city and city and county pursuant to this
chapter.
   Any special benefit district may contain separate zones, which may
consist of either contiguous or noncontiguous areas of land within
the city or city and county. Each zone within a special benefit
district shall be an area adjacent to a station of the municipal
transportation system or along the route or lines of such system
which the legislative body or board of supervisors determines will
receive special benefit by reason of the operation of transportation
facilities but all zones within a special benefit district need not
be adjacent to the same station or adjacent to the same portion of
the route or lines.



99102.  Whenever the legislative body of a city or the board of
supervisors of a city and county finds that areas adjacent to two or
more stations of the municipal transportation system or adjacent to
different portions of the system's route or lines, exclusive of any
right-of-way of a common carrier, receive special benefit by reason
of the operation of such system and deems it necessary to form a
special benefit district containing two or more zones, in order to
incur a bonded indebtedness for the acquisition, construction,
completion or repair of any or all improvements, works, property or
facilities for the municipal transportation system, or convenient or
necessary to carry out the functions of the system, and in order to
provide for such bonded indebtedness to be payable from a special
assessment tax levied upon less than all the real property of the
city or city and county, it shall, by a resolution adopted by a vote
of two-thirds of all members of the board, declare and state:
   (a) The purposes for which the proposed debt is to be incurred,
which may include all costs and estimated costs incidental to or
connected with the accomplishment of such purposes, including,
without limitation, engineering, inspection, legal, fiscal agents,
financial consultant, bond and other reserve funds, working capital,
bond interest estimated to accrue during the construction period and
for a period not to exceed three years thereafter, and expenses of
all proceedings for the authorization, issuance and sale of the
bonds;
   (b) The estimated cost of accomplishing said purposes and the
amount of the principal of the indebtedness to be incurred;
   (c) That the legislative body or board of supervisors intends to
form a special benefit district composed of a specified number of
zones within a portion of the territory of the city or city and
county, which in the opinion of the legislative body or board of
supervisors will be benefited, and that the exterior boundaries of
each such zone within the special benefit district are set forth on a
map on file with the clerk of the legislative body or board of
supervisors, which map shall govern for all details as to the extent
of the zones within the proposed benefit district;
   (d) That the legislative body or board of supervisors intends to
call an election in all zones of the proposed benefit district on a
date to be fixed for the purpose of submitting to the qualified
voters of the proposed benefit district the proposition of incurring
indebtedness by the issuance of bonds of the city or city and county
for the special benefit district, which shall be deemed for all
purposes to be a single election;
   (e) That assessments for the payment of the bonds and the interest
thereon shall be levied exclusively upon the taxable land in all
zones of the benefit district, except for any right-of-way of a
common carrier, at a uniform rate to pay the indebtedness of the
entire special benefit district;
   (f) The extent to which, if at all, all or a portion of the
revenues of the city or city and county are to be used to pay the
principal of, interest on, and sinking fund payments for, said bonds,
including the establishment and maintenance of any reserve fund
therefor;
   (g) That a general description of each proposed construction area,
together with a map showing the exterior boundaries of each zone of
the benefit district with relation to the territory contiguous
thereto and to the proposed improvements, is on file with the clerk
of the legislative body or board of supervisors and is available for
inspection by any person or persons interested;
   (h) The time and place for a hearing by the legislative body or
board of supervisors on the questions of the formation of said
proposed benefit district, the extent thereof, the proposed
construction, the estimated cost and the amount of debt to be
incurred;
   (i) That at the time and place specified in the resolution any
person interested, including all persons owning property in the
county or city and county or in the proposed benefit district, will
be heard; and
   (j) That at the same time as the board of supervisors is required
by law to fix the general tax levy and in the manner provided for
such general tax levy, the legislative body of any city, or the board
of supervisors of any city and county shall levy and collect upon
all land in the proposed benefit district, except for any
right-of-way of a common carrier, an ad valorem assessment at a
uniform rate which is sufficient, together with revenues already
collected and available therefor, to pay the interest on the said
bonds as the same will become due and such part of the principal
thereof, including any sinking fund installments required by any of
the system's agreements with holders of bonds issued for the benefit
district, as will become due before the proceeds of an assessment
levied at the time of the next general tax levy will be available for
such purposes, and sufficient to provide or to restore such reserve
fund to the amount required by any of the system's agreements with
holders of bonds issued for the benefit district.



99103.  Notice of the time and place of the hearing specified in
Section 99100 or 99102 shall be given by publishing a copy of the
resolution declaring the necessity pursuant to Section 6066 of the
Government Code prior to the time fixed for the hearing in at least
one newspaper published in the city or city and county.




99104.  At the time and place so fixed, or at any time and place to
which the hearing is adjourned, the legislative body or board of
supervisors shall proceed with the hearing. At the hearing any person
interested, including any person owning property within the city or
city and county or within the proposed benefit district, may appear
and present any matters material to the questions set forth in the
resolution declaring the necessity.



99105.  The legislative body or board of supervisors shall have
power to change the purposes for which the proposed debt is to be
incurred, or the estimated cost, or the amount of bonded debt to be
incurred, or the boundaries of said proposed benefit district, or one
or all of said matters; provided, however, that the legislative body
or board of supervisors shall not change such boundaries so as to
include any territory which will not, in its judgment, be benefited
by said construction. For all purposes of this chapter, it shall be
conclusively presumed that any right-of-way of a common carrier will
not be benefited by said construction.



99106.  The purposes, estimated cost, amount of bonded debt or
boundaries shall not be changed by the legislative body or board of
supervisors, except after notice of its intention to do so, given by
publication pursuant to Section 6061 of the Government Code in at
least one newspaper published in the city or city and county. Said
notice shall state the changed purposes and estimated cost and debt
proposed and that the exterior boundaries as proposed to be changed
are set forth on a map on file with the clerk of the legislative body
or board of supervisors, which map shall govern for all details as
to the extent of the proposed benefit district and as to any zone
contained therein, and specify the time and place for hearing on such
change or changes, which time shall be at least 10 days after
publication of said notice.



99107.  At the time and place so fixed, or at any time and place to
which the hearing is adjourned, the legislative body or board of
supervisors shall proceed with the hearing. At the hearing any person
interested, including any person owning property within the city or
city and county or the proposed benefit district, may appear and
present any matters material to the changes stated in the notice.




99108.  At the conclusion of the hearing, the legislative body or
board of supervisors shall by resolution determine whether it is
deemed necessary to incur the bonded indebtedness, and, if so, the
resolution shall also state the purposes for which said proposed debt
is to be incurred, the estimated cost of accomplishing said
purposes, the amount of the proposed debt, that the exterior
boundaries of the portion of the district which will be benefited are
set forth on a map on file with the clerk of the legislative body or
the board of supervisors, which map shall govern for all details as
to the extent of the benefit district, and that said portion of the
district set forth on said map shall thereupon constitute and be
known as "Benefit District No. ____ of the __________________" and
the determinations made in said resolution shall be final and
conclusive.


99109.  After the formation of such benefit district within the city
or city and county and after the assessments have been confirmed
pursuant to this chapter, all proceedings for the authorization and
issuance of bonds of the city or city and county for such benefit
district shall be limited and shall apply only to the benefit
district; and assessments for the payment of said bonds and the
interest thereon, except as otherwise provided in the resolution of
necessity, shall be levied exclusively upon the land in the benefit
district, except for any right-of-way of a common carrier; and the
revenues of the city or city and county shall be used only to the
extent set forth in the resolution declaring the necessity. If zones
have been established within the benefit district, the ad valorem
assessment shall be imposed at a uniform rate throughout all zones of
the benefit district to pay the principal and interest on all bonds
of the city or city and county issued for the benefit district.



99110.  After the legislative body or board of supervisors has made
its determination of the matters required to be determined by this
chapter, and if the legislative body or board of supervisors deems it
necessary to incure the bonded indebtedness, the legislative body or
board of supervisors shall by ordinance call a special election in
said benefit district for the purpose of submitting to the qualified
voters thereof the proposition of incurring indebtedness by the
issuance of bonds of the district for said benefit district. Said
ordinance shall state:
   (a) That the legislative body or board of supervisors deems it
necessary to incur the bonded indebtedness.
   (b) The purposes for which the bonded indebtedness will be
incurred.
   (c) The estimated cost of accomplishing said purposes.
   (d) The amount of the principal of the indebtedness to be
incurred.
   (e) The benefit district to be benefited by said indebtedness, as
set forth in the resolution making determinations, and that a map
showing the exterior boundaries of said benefit district and all
zones contained therein is on file with the clerk of the legislative
body or board of supervisors, which map shall govern for all details
as to the extent of the benefit district.
   (f) That assessments for the payment of such bonds and the
interest thereon shall be levied exclusively and at a uniform rate
upon the land in said benefit district and all zones contained
therein, except for any right-of-way of a common carrier; and that
revenues of the city or city and county shall be used only to the
extent set forth in the resolution declaring the necessity.
   (g) The maximum term the bonds proposed to be issued shall run
before maturity, which shall not exceed 50 years from the date
thereof or the date of each series thereof.
   (h) The maximum rate of interest to be paid, which shall not
exceed 6 percent per annum.
   (i) The proposition to be submitted to the voters which may
include one or more purposes.
   (j) The date of the election.
   (k) The manner of holding the election and the procedure for
voting for and against the measure.



99111.  Notice of the holding of such election shall be given by
publishing, pursuant to Section 6066 of the Government Code, the
ordinance calling the election in at least one newspaper published in
such city or city and county. No other notice of such election need
be given. Except as otherwise provided in the ordinance, the election
shall be conducted as other city or city and county elections. If a
special benefit district has been divided into zones, the votes cast
in all zones shall be counted as in the case of a benefit district
without such zones to determine the outcome of the election.



99112.  If any proposition is defeated by the electors, the
legislative body or board of supervisors shall not call another
election on a substantially similar proposition to be held within six
months after the prior election. If a petition requesting submission
of such a proposition, signed by 15 percent of the benefit district
electors, as shown by the votes cast for all candidates for governor
at the last gubernatorial election, is filed with the legislative
body or board of supervisors, it may call an election before the
expiration of six months.


99113.  If 66 2/3 percent of the electors in the entire benefit
district voting on the proposition vote for it, then the legislative
body or board of supervisors may, by resolution, at such time or
times as it deems proper, issue bonds of the city or city and county
for the benefit district for the whole or any part of the amount of
the indebtedness so authorized and may from time to time, by
resolution, provide for the issuance of such amounts as the necessity
thereof may appear, until the full amount of such bonds authorized
shall have been issued. Said full amount of bonds may be divided into
two or more series and different dates and different dates of
payment fixed for the bonds of each series. A bond need not mature on
an anniversary of its date. The maximum term the bonds of any series
shall run before maturity shall not exceed 50 years from the date of
each series respectively. In such resolution or resolutions the
legislative body or board of supervisors shall prescribe the form of
the bonds (including, without limitation, registered bonds and coupon
bonds) and the form of any coupons to be attached thereto, the
registration, conversion and exchange privileges, if any, pertaining
thereto, and fix the time when the whole or any part of the principal
shall become due and payable.



99114.  The bonds shall bear interest at a rate or rates not
exceeding 6 percent per annum, payable semiannually, except that the
first interest payable on the bonds or any series thereof may be for
any period not exceeding one year as determined by the legislative
body or board of supervisors. In the resolution or resolutions
providing for the issuance of such bonds the legislative body or
board of supervisors may also provide for call and redemption of such
bonds prior to maturity at such times and prices and upon such other
terms as it may specify, provided that no bond shall be subject to
call or redemption prior to maturity unless it contains a recital to
that effect or unless a statement to that effect is printed thereon.
The denomination or denominations of the bonds shall be stated in the
resolution providing for their issuance, but shall not be less than
one thousand dollars ($1,000). The principal of and interest on such
bonds shall be payable in lawful money of the United States at the
office of the treasurer of the city or city and county or at such
other place or places as may be designated, or at either place or
places at the option of holders of the bonds. The bonds shall be
dated, numbered consecutively and shall be signed by the mayor and
treasurer, countersigned by the secretary and the official seal of
the city or city and county attached. The interest coupons of such
bonds shall be signed by the treasurer. All such signatures,
countersignatures and seal may be printed, lithographed or
mechanically reproduced, except that one of such signatures or
countersignatures on the bonds shall be manually affixed. If any
officer whose signature or countersignature appears on bonds or
coupons ceases to be such officer before the delivery of the bonds,
his signature is as effective as if he had remained in office.




99115.  The bonds may be sold as the legislative body or board of
supervisors determines by resolution but for not less than par.
Before selling the bonds, or any part thereof, the legislative body
or board of supervisors shall give notice inviting sealed bids in
such manner as it may prescribe. If satisfactory bids are received
the bonds offered for sale shall be awarded to the highest
responsible bidder. If no bids are received or if the legislative
body or board of supervisors determines that the bids received are
not satisfactory as to price or responsibility of the bidders the
legislative body or board of supervisors may reject all bids
received, if any, and either readvertise or sell the bonds at private
sale.



99116.  Delivery of any bonds may be made at any place either inside
or outside the state, and the purchase price may be received in cash
or bank credits.


99117.  All accrued interest and premiums received on the sale of
bonds shall be placed in the fund to be used for the payment of
principal of and interest on the bonds and the remainder of the
proceeds of the bonds shall be placed in the treasury to the credit
of the proper benefit fund and applied exclusively to the purposes
for which the debt was incurred. However, when those purposes have
been accomplished any moneys remaining in the benefit fund shall be
(a)  transferred to the fund to be used for the payment of principal
of and interest on the bonds, or (b)  placed in a fund to be used for
the purchase of outstanding bonds of the benefit district from time
to time in the open market at those prices and in the manner, either
at public or private sale or otherwise, as the legislative body or
board of supervisors may determine. Bonds so purchased shall be
canceled immediately.



99118.  After the expiration of three years after a bond election
the legislative body or board of supervisors may determine, by
ordinance adopted by a vote of two-thirds of all the members of the
legislative body or board of supervisors, that any or all of the
bonds authorized at said election remaining unsold shall not be
issued or sold. When the ordinance takes effect, the authorization to
issue said bonds shall become void.



99119.  Whenever the legislative body or board of supervisors deems
that the expenditure of money for the purposes for which the bonds
were authorized by the voters is impractical or unwise, it may, by
ordinance adopted by a vote of two-thirds of all members of the
legislative body or board of supervisors, so declare and call an
election to be held in the benefit district for the purpose of
submitting to the qualified voters thereof the proposition of
incurring indebtedness by the issuance of such bonds for some other
purposes or, in the case where bonds have been sold, the proposition
to use the proceeds for some other purposes. The procedure, so far as
applicable, shall be the same as when a bond proposition is
originally submitted.



99120.  The legislative body or board of supervisors may provide for
the issuance, sale or exchange of refunding bonds to redeem or
retire any bonds issued by the city or city and county upon the
terms, at the times and in the manner which it determines. Refunding
bonds may be issued in a principal amount sufficient to pay all or
any part of the principal of such outstanding bonds, the interest
thereon and the premiums, if any, due upon call and redemption
thereof prior to maturity and all expenses of such refunding. The
provisions of this chapter for issuance and sale of bonds apply to
the issuance and sale of such refunding bonds; except that (i) no
election need be called or held for the purpose of authorizing the
issuance of refunding bonds, and (ii) when refunding bonds are to be
exchanged for outstanding bonds the method of exchange shall be as
determined by the legislative body or board of supervisors.



99121.  The provisions of Article 4 (commencing with Section 53500)
of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government
Code are applicable to a city or city and county issuing bonds
pursuant to the authorization provided in this chapter.




99122.  Any bonds which shall be issued under the provisions of this
chapter shall be legal investment for all trust funds; for the funds
of insurance companies, banks--both commercial and savings--and
trust companies; and for state school funds; and whenever any money
or funds may, by any law now or hereafter enacted, be invested in
bonds of cities, cities and counties, counties, school districts, or
other districts within the State of California, such money or funds
may be invested in the bonds issued under this chapter, and whenever
bonds of cities, cities and counties, counties, school districts, or
other districts, within this state may, by any law now or hereafter
enacted, be used as security for the performance of any act or the
deposit of any public moneys, the said bonds issued under this
chapter may be so used. The provisions of this chapter shall be in
addition to all other laws relating to legal investments and shall be
controlling as the latest expression of the Legislature with respect
thereto.


99123.  Any action or proceeding, wherein the validity of the
formation of the benefit district or of any such bonds or of the
proceedings in relation thereto is contested, questioned or denied,
shall be commenced within three months from the date of such
election; otherwise, said bonds and all proceedings in relation
thereto, including the formation of the benefit district, shall be
held to be valid and in every respect legal and incontestable.



99124.  If 66 2/3 percent of the electors of the benefit district
voting on the proposition at the special election called pursuant to
Section 99111 have voted in favor of it and the legislative body or
board of supervisors has issued a resolution for the issuance of
bonds and has imposed the assessments, the clerk of the legislative
body or the board of supervisors shall so certify to the assessor of
the county and deliver to the assessor copies of all maps and
diagrams of the benefit district and the assessments to be levied on
the lots or parcels of land therein. The assessments authorized by
this chapter shall be levied and collected at the same time and in
the same manner by the county as taxes are levied and collected.




99125.  Notwithstanding any other provision of this chapter, no city
nor city and county shall pledge any portion of its general fund
revenues to pay any part of any bonded indebtedness unless the
provisions of Section 18 of Article XI of the Constitution of the
State of California are complied with.