California Assembly Bill AB422 Amended / Bill

 BILL NUMBER: AB 422AMENDED BILL TEXT AMENDED IN ASSEMBLY MARCH 17, 2015 INTRODUCED BY Assembly Member McCarty FEBRUARY 19, 2015 An act to add Section 102584 to the Public Utilities Code, relating to transit. LEGISLATIVE COUNSEL'S DIGEST AB 422, as amended, McCarty. Sacramento Regional Transit District: line of credit. Existing law provides for the creation of the Sacramento Regional Transit District, with specified powers and duties relative to the provision of public transit services. Existing law authorizes the district to engage in temporary borrowing, as specified. This bill would  additionally  authorize the district to seek and receive a  short term   short-term  revolving line of credit for operating purposes in anticipation of receipt of operating grants, with the extension of credit to the district evidenced by a  note.   note, in addition to and as an alternative to temporary borrowing, as specified.  The bill would authorize the district to pledge anticipated grants and other available  revenues   funds  as security for repayment of the note and would prescribe other terms. 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 102584 is added to the Public Utilities Code, to read: 102584. In addition  to   to, and as an alternative to,  the borrowing authority in Section 102582, the district may seek and obtain a  short term   short-term  revolving line of credit for operating purposes in anticipation of receipt of operating grants, with the extension of credit to the district evidenced by a note. The district may pledge the anticipated grants and any other  available revenues   funds available to the district, including, but not limited to, fare revenues collected by the district in connection with the operation of its transit system and any other revenues, income, or receipts,  as security for repayment of the note  , the interest on the note, and the related obligations evidenced by the note  . The note shall have a maturity date of not more than 60 months from the date of issuance. The district may pledge anticipated operating grants  and other available funds  over a multiyear  period, as long as the note is paid in full by the maturity date.   period.  The maximum indebtedness under the note shall not exceed 85 percent of the amount of the anticipated grants and other funds pledged to repay the note  , the interest on the note, and the related obligations evidenced by the note  .