California Assembly Bill AB1919 Introduced / Bill

 BILL NUMBER: AB 1919INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Quirk FEBRUARY 11, 2016 An act to amend Section 180260 of the Public Utilities Code, relating to transportation. LEGISLATIVE COUNSEL'S DIGEST AB 1919, as introduced, Quirk. Local transportation authorities: bonds. The Local Transportation Authority and Improvement Act provides for the creation in any county of a local transportation authority and authorizes the imposition of a retail transactions and use tax by ordinance, subject to approval of the ordinance by 2/3 of the voters. Existing law authorizes the ballot proposition submitted to the voters to include a provision authorizing bonds to be issued that would be payable from the proceeds of the transactions and use tax. Existing law requires the bond proceeds to be placed in the treasury of the local transportation authority and to be used for allowable transportation purposes, except that accrued interest and premiums received on the sale of the bonds are required to be placed in a fund to be used for the payment of bond debt service. This bill would instead provide for accrued interest and premiums received on the sale of the bonds to be placed in the treasury of the local transportation authority to be used for allowable transportation purposes. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 180260 of the Public Utilities Code is amended to read: 180260. All  bond proceeds, including proceeds from  accrued interest and premiums received on the sale of the  bonds   bonds,  shall be placed in the  fund to be used for the payment of the principal of, and interest on, the bonds, and the remainder of the proceeds of the bonds shall be placed in the  treasury of the authority and applied to secure the bonds or for the purposes for which the debt was incurred. However, when the purposes have been accomplished, any money remaining shall be either (a) transferred to the fund to be used for the payment of principal of, and interest on, the bonds or (b) placed in a fund to be used for the purchase of the outstanding bonds in the open market at prices and in the manner, either at public or private sale or otherwise, as determined by the authority. Bonds so purchased shall be canceled immediately.