California Senate Bill SB892 Introduced / Bill

 BILL NUMBER: SB 892INTRODUCED BILL TEXT INTRODUCED BY Senator Leyva JANUARY 20, 2016 An act to amend Sections 130102, 130108, 190000, 190001, 190003, 190005, 190100, 190101, 190103, 190300, 190302, 190303, 190304, 190305, 190306, 190307, 190307.5, 190308, 190309, 190310, 190311, 190312, 190313, 190314, 190315, 190316, 190318, 190319, 190320, 190321, 190322, and 190323 of, to amend the heading of Division 20 (commencing with Section 190000) of, to amend and renumber Sections 190102, 190200, 190201, and 190202 of, to add the headings of Article 1 (commencing with Section 190000), Article 2 (commencing with 190100), and Article 3 (commencing with 190300) to Chapter 1 of Division 20 of, to add Chapter 2 (commencing with Section 190500) to Division 20 of, to repeal Sections 130054 and 130102.5 of, to repeal the headings of Chapter 2 (commencing with Section 190100), Chapter 3 (commencing with Section 190200), and Chapter 4 (commencing with Section 190300) of Division 20 of, and to repeal and add the heading of Chapter 1 (commencing with Section 190000) of Division 20 of, the Public Utilities Code, and to amend Section 149.11 of the Streets and Highways Code, relating to transportation. LEGISLATIVE COUNSEL'S DIGEST SB 892, as introduced, Leyva. Transportation: San Bernardino County Transportation Authority. Existing law authorizes a county board of supervisors to create or otherwise designate local agencies, including a transportation authority that may impose a transportation sales tax subject to voter approval, a service authority for freeway emergencies, and a transportation congestion management agency, as specified. The Joint Exercise of Powers Act authorizes the legislative or other governing bodies of 2 or more public agencies to jointly exercise, by agreement, any power common to the contracting parties, as specified. The County Transportation Commissions Act provides for the creation of county transportation commissions in the Counties of Los Angeles, Orange, Riverside, San Bernardino, and Ventura, with various powers and duties relative to transportation planning and funding, as specified. This bill would create the San Bernardino County Transportation Authority as the successor agency to the powers, duties, revenues, debts, obligations, liabilities, immunities, and exemptions of the San Bernardino County Transportation Commission and San Bernardino County local transportation authority, service authority for freeway emergencies, and local congestion management agency, and of the San Bernardino Associated Governments, when it was acting on behalf, or in the capacity, of those agencies. By imposing new duties on local government associated with this consolidation, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. It is the intent of the Legislature that the San Bernardino County Transportation Authority be a unified and comprehensive institutional structure that combines the transportation-related functions and authorities of the San Bernardino County Transportation Commission and San Bernardino County transportation authority, service authority for freeway emergencies, and congestion management agency, which are currently exercised by the San Bernardino Associated Governments joint powers authority by statute or by designation of the San Bernardino County Board of Supervisors. It is the intent of the Legislature that this act vest responsibility and liability for transportation-related functions in the County of San Bernardino in a single entity, promote administrative efficiency, enhance public transparency, and ensure maximum accountability to the people, as provided in this act. SEC. 2. Section 130054 of the Public Utilities Code is repealed.  130054. The San Bernardino County Transportation Commission shall be the San Bernardino Associated Governments, consisting of the following members: (a) Five members of the San Bernardino County Board of Supervisors. (b) The Mayor of the City of San Bernardino. (c) One member from each of the other incorporated cities of San Bernardino County, who shall be a mayor or a city councilman. (d) One nonvoting member appointed by the Governor.  SEC. 3. Section 130102 of the Public Utilities Code is amended to read: 130102. A majority of the members of the commission shall constitute a quorum for the transaction of business, and all official acts of the  commission, except as otherwise provided in Section 130102.5,   commission  shall require the affirmative vote of a majority of the members of the commission. SEC. 4. Section 130102.5 of the Public Utilities Code is repealed.  130102.5. In the case of the San Bernardino County Transportation Commission, its official acts shall require the affirmative vote of a majority of the members representing the cities and a majority of the members of the board of supervisors if this is requested by either a majority of the members representing the cities or a majority of the members of the board of supervisors.  SEC. 5. Section 130108 of the Public Utilities Code is amended to read: 130108. (a) Each member of a commission may be compensated at a rate not exceeding one hundred dollars ($100) for any day attending to the business of the commission, but not to exceed four hundred dollars ($400) in any month, and the necessary traveling and personal expenses incurred in the performance of his duties as authorized by the commission.  Members of the San Bernardino County Transportation Authority shall be compensated pursuant to this subdivision.  Members of the Los Angeles County Metropolitan Transportation Authority shall be compensated pursuant to subdivision (b). (b) Each member of the Los Angeles County Metropolitan Transportation Authority shall be compensated at a rate not exceeding one hundred and fifty dollars ($150) for any day attending to the business of the authority, but not to exceed six hundred dollars ($600) per month, and other expenses which are directly related to the performance of duties as authorized by the authority. SEC. 6. The heading of Division 20 (commencing with Section 190000) of the Public Utilities Code is amended to read: DIVISION 20. SAN BERNARDINO COUNTY TRANSPORTATION  COMMISSION   AUTHORITY  SEC. 7. The heading of Chapter 1 (commencing with Section 190000) of Division 20 of the Public Utilities Code is repealed.  CHAPTER 1. GENERAL PROVISIONS, FINDINGS, AND DEFINITIONS  SEC. 8. The heading of Chapter 1 (commencing with Section 190000) is added to Division 20 of the Public Utilities Code, to read: CHAPTER 1. SAN BERNARDINO COUNTY TRANSPORTATION SALES TAX ACT SEC. 9. The heading of Article 1 (commencing with Section 190000) is added to Chapter 1 of Division 20 of the Public Utilities Code, to read: Article 1. General Provisions, Findings, and Definitions SEC. 10. Section 190000 of the Public Utilities Code is amended to read: 190000.  The division   This chapter  shall be known and may be cited as the San Bernardino County Transportation Sales Tax Act. SEC. 11. Section 190001 of the Public Utilities Code is amended to read: 190001. The Legislature hereby finds and declares all of the following: (a) Recognizing the scarcity of resources available for all transportation development, alternative methods of financing provided in this  division   chapter  are needed to finance the cost of constructing, developing, acquiring, and maintaining and providing highways, streets, roads, and public transportation services in the County of San Bernardino and these methods will increase economic opportunities, contribute to economic development, be in the public interest and serve a public purpose, and promote the health, safety, and welfare of the citizens within the County of San Bernardino. (b) It is the intent of the Legislature, in enacting this  division,   chapter  that the County of San Bernardino continue to receive its equitable share of funds under the state transportation improvement program and that incentives be provided to reward rather than to penalize counties that adopt local sales tax measures. (c) It is in the public interest to allow the voters of San Bernardino County to adopt a specific revenue source and to authorize new duties for the San Bernardino County Transportation  Commission   Authority  so that local decisions can be implemented in a timely manner to provide improvements to the transportation system. SEC. 12. Section 190003 of the Public Utilities Code is amended to read: 190003.  "Commission"   "Authority   " means the San Bernardino County Transportation  Commission   Authority  created pursuant to Section  130054.   190505.  SEC. 13. Section 190005 of the Public Utilities Code is amended to read: 190005. "San Bernardino Associated Governments" means the joint powers agency established pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code. Any board, commission, department, or officer succeeding to the functions of the association is granted the powers and duties of the association under this  division.   chapter.  SEC. 14. The heading of Chapter 2 (commencing with Section 190100) of Division 20 of the Public Utilities Code is repealed.  CHAPTER 2. ADMINISTRATION  SEC. 15. The heading of Article 2 (commencing with Section 190100) is added to Chapter 1 of Division 20 of the Public Utilities Code, to read: Article 2. Administration SEC. 16. Section 190100 of the Public Utilities Code is amended to read: 190100. The  commission   authority  shall expend only that amount of the funds generated pursuant to this  division   chapter  for staff support, audit, administrative expenses, and contract services that are necessary and reasonable to carry out its responsibilities pursuant to this  division,   chapter,  and in no case shall the funds  generated pursuant to this chapter be  expended for salaries and benefits  exceed   in excess of  1 percent of the annual amount of revenue raised by the tax. SEC. 17. Section 190101 of the Public Utilities Code is amended to read: 190101. The  commission   authority  shall do all of the following with respect to the revenues derived from the transactions and use tax levied pursuant to  Chapter 4   Article 3  (commencing with Section 190300): (a) Adopt an annual budget. (b) Cause a postaudit of the financial transactions and records of the  commission   authority  and of all revenues expended pursuant to this  division   chapter  to be made at least annually by a certified public accountant. (c) Do any and all things necessary to carry out the purposes of this  division.   chapter.  SEC. 18. Section 190102 of the Public Utilities Code is amended and renumbered to read:  190102.   190525.  (a) The  commission   authority  shall publish, pursuant to Section 6061 of the Government Code, notice of the time and place of the public hearing for the adoption of the annual budget not later than 15 days prior to the date of the hearing. (b) The proposed annual budget shall be available for public inspection at least 15 days prior to the hearing. SEC. 19. Section 190103 of the Public Utilities Code is amended to read: 190103. The  commission   authority  may approve a transaction and use tax ordinance and ballot proposition and call an election in accordance with  Chapter 4   Article 3  (commencing with Section 190300). SEC. 20. The heading of Chapter 3 (commencing with Section 190200) of Division 20 of the Public Utilities Code is repealed.  CHAPTER 3. POWERS AND FUNCTIONS  SEC. 21. Section 190200 of the Public Utilities Code is amended and renumbered to read:  190200.   190526.  The  commission   authority  may sue and be sued, except as otherwise provided by law, in all actions and proceedings, in all courts and tribunals of competent jurisdiction. SEC. 22. Section 190201 of the Public Utilities Code is amended and renumbered to read:  190201.   190527.  All claims for money or damages against the  commission   authority  are governed by Division 3.6 (commencing with Section 810) of Title 1 of the Government Code except as provided therein, or by other statutes or regulations expressly applicable thereto. SEC. 23. Section 190202 of the Public Utilities Code is amended and renumbered to read:  190202.   190528.  The  commission   authority  may make contracts and enter into stipulations of any nature whatsoever, including, but not limited to, contracts and stipulations to indemnify and hold harmless, to employ labor, and to do all acts necessary and convenient for the full exercise of the powers granted in this division. SEC. 24. The heading of Chapter 4 (commencing with Section 190300) of Division 20 of the Public Utilities Code is repealed.  CHAPTER 4. TRANSACTIONS AND USE TAX  SEC. 25. The heading of Article 3 (commencing with Section 190300) is added to Chapter 1 of Division 20 of the Public Utilities Code, to read: Article 3. Transactions and Use Tax SEC. 26. Section 190300 of the Public Utilities Code is amended to read: 190300. The Legislature, by the enactment of this  chapter,   article,  intends the additional funds provided government agencies by this  chapter   article  to supplement existing local revenues being used for transportation purposes. The government agencies shall maintain their existing commitment of local funds for transportation purposes pursuant to an ordinance adopted by the  commission   authority  to enforce this section. The  commission   authority  may levy a retail transactions and use tax applicable in the incorporated and unincorporated territory of the county in accordance with this  chapter   article  and Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code. The ordinance shall only become effective if adopted by a two-thirds vote of the  commission   authority  and subsequently approved by two-thirds of the electors voting on the measure at a special election called for the purpose by the board of supervisors or at any regular election. The board of supervisors shall call the election upon being requested to do so by a resolution adopted by the  commission,   authority,  but not otherwise. The  commission   authority  shall specify in the ordinance that not more than 1 percent of the annual amount of revenues raised by the tax may be used to fund the salaries and benefits of the staff of the  commission   authority  in administering the programs funded from that tax. The ordinance shall take effect at the close of the polls on the day of election at which the proposition is adopted. The initial collection of the transactions and use tax shall take place in accordance with Section 190304. If the voters do not approve the ordinance, the board of supervisors may, at any time thereafter, submit the same, or a different, measure, if adopted by a two-thirds vote of the  commission,   authority,  to the voters in accordance with this  division.   chapter.  SEC. 27. Section 190302 of the Public Utilities Code is amended to read: 190302. (a) The  commission,   authority  in the ordinance, shall state the nature of the tax to be imposed, the tax rate or the maximum tax rate, the purposes for which the revenue derived from the tax will be used, and shall set a term during which the tax will be imposed. (b) The purposes for which the tax revenues may be used may include, but are not limited to, the administration of this  division,   chapter,  including legal actions related thereto, the construction, capital acquisition, maintenance, and operation of streets, roads, and highways, including state highways. These purposes include expenditures for the planning, environmental reviews, engineering and design costs, and related right-of-way acquisition. (c) The ordinance shall contain an expenditure plan  which   that  shall include the allocation of revenues for the purposes authorized by this section and shall include, at a minimum, the following provisions: (1) The proportional distribution of the revenues among various purposes. (2) The specific projects to be funded under the state highway and freeway portion. Following adoption of the ordinance by the voters, the plan may only be amended, if required, by the following process: (A) Initiation of amendment by the  commission,   authority,  reciting findings of necessity. (B) Approval by the board of supervisors. (C) Approval by a majority of the cities constituting a majority of the incorporated population. (3) The formula for distribution of the city and the county portion, which may be amended by voter approval. (4) A requirement that the arterial portion be expended pursuant to a five-year project list to be adopted by the  commission,   authority,  extended annually for one year, available for public review, to be first adopted at least 30 days prior to the election held pursuant to Section  190301.   190300.  (5) A requirement that the city and the county portions be expended pursuant to a five-year project list to be adopted by a resolution by each city and the board of supervisors, respectively, extended annually for one year, available for public review, to be first adopted at least 30 days prior to the election held pursuant to Section  190301.   190300.  SEC. 28. Section 190303 of the Public Utilities Code is amended to read: 190303. (a) The county shall conduct an election called by the board of supervisors pursuant to Section  190301.   190300.  (b) The election shall be called and conducted in the same manner as provided by law for the conduct of elections by a county. SEC. 29. Section 190304 of the Public Utilities Code is amended to read: 190304. (a) Any transactions and use tax ordinance adopted pursuant to this  chapter   article  shall be operative on the first day of the first calendar quarter commencing more than 120 days after adoption of the ordinance. (b) Prior to the operative date of the ordinance, the  commission   authority  shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of the ordinance. SEC. 30. Section 190305 of the Public Utilities Code is amended to read: 190305. The revenues from the taxes imposed pursuant to this  chapter   article  shall be allocated by the  commission   authority  for transportation purposes consistent with the adopted regional transportation improvement program and the regional transportation plan. SEC. 31. Section 190306 of the Public Utilities Code is amended to read: 190306. (a) The  commission,   authority,  subject to the approval of the voters, may impose a maximum tax rate of one-half of 1 percent under this  division   chapter  and Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, and the  commission   authority  may state the maximum tax rate in terms of not to exceed one-half of 1 percent, or any lesser percentage thereof. Neither this  division   chapter  nor the ordinance shall affect any tax otherwise authorized. (b) The tax rate adopted pursuant to this  chapter,   article,  unless otherwise prohibited, may be increased by the  commission   authority  by ordinance adopted in the manner and by the vote stated in Section  190301   190300  and approved by a majority of the electors voting on the measure at an election called for that purpose by the  commission.   authority.  SEC. 32. Section 190307 of the Public Utilities Code is amended to read: 190307. The  commission   authority may reduce a tax rate to percentages lower than that approved by the voters and may further provide for an increase of the tax rate if it has previously been lowered. However, the tax rate  may   shall  not be increased to a rate above the tax rate approved by the voters. Any reduced tax rate may be adopted only if the  commission   auth   ority  determines, by a two-thirds vote, that the proceeds of the taxes with the altered tax rate will be sufficient to provide for the payment of principal of, and interest on, any limited tax bonds and any other indebtedness incurred by the  commission   authority  which was to be payable from the proceeds of the retail transactions and use tax. SEC. 33. Section 190307.5 of the Public Utilities Code is amended to read: 190307.5. Any increase or reduction in the tax rate adopted pursuant to Section 190306 or 190307 shall become effective on the first day of the calendar quarter which commences at least 120 days following the date of the  commission's   authority's  vote approving the increased or reduced rate. SEC. 34. Section 190308 of the Public Utilities Code is amended to read: 190308. (a) If requested to do so by the  commission   authority  in its resolution calling for an election, the board of supervisors, as part of the ballot proposition to approve the imposition of a retail transactions and use tax, may seek authorization to issue bonds for capital outlay expenditures as may be provided for in the ordinance expenditure plan payable solely from the proceeds of the tax. (b) The maximum bonded indebtedness that may be outstanding at any one time shall be an amount equal to the sum of the principal of, and interest on, the bonds, but not to exceed the estimated proceeds of the tax, as determined by the plan. The amount of bonds outstanding at any one time does not include the amount of bonds, refunding bonds, or bond anticipation notes for which funds necessary for the payments thereof have been set aside for that purpose in a trust or escrow account. (c) The proposition shall set forth the actual percent of the tax. (d) The proposition shall set forth the duration of the tax if the plan specifies a time limit. (e) The proposition shall set forth the amount of bonds, if any, payable from the proceeds of the tax. (f) The proposition shall set forth the  commission   authority  as the agency imposing the tax. (g) The proposition shall set forth the appropriations limit of the  commission   authority  pursuant to Section 4 of Article XIII B of the California Constitution. (h) The sample ballot to be mailed to the voters, pursuant to Section 13303 of the Elections Code, shall be the full proposition, as set forth in the ordinance calling the election, and the voter information handbook shall include the entire ordinance expenditure plan. SEC. 35. Section 190309 of the Public Utilities Code is amended to read: 190309. (a) The bonds authorized by the voters concurrently with the approval of the retail transactions and use tax may be issued at any time by the  commission   authority  and shall be payable from the proceeds of the tax. The bonds shall be referred to as "limited tax bonds." The bonds may be secured by a pledge of revenues from the proceeds of the tax. (b) The pledge of the tax to the limited tax bonds authorized under this  chapter   article shall have priority over the use of any of the tax for "pay-as-you-go" financing, except to the extent that priority is expressly restricted in the resolution authorizing the issuance of the bonds. SEC. 36. Section 190310 of the Public Utilities Code is amended to read: 190310. Limited tax bonds shall be issued pursuant to a resolution adopted at any time by a two-thirds vote of the  commission.   authority.  Each resolution shall provide for the issuance of bonds in the amounts as may be necessary, until the full amount of bonds authorized have been issued. The full amount of bonds may be divided into two or more series and different dates of payment fixed for the bonds of each series. A bond need not mature on its anniversary date. SEC. 37. Section 190311 of the Public Utilities Code is amended to read: 190311. (a) A resolution authorizing the issuance of bonds shall state all of the following: (1) 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 those purposes, including, without limitation, engineering, inspection, legal, fiscal agents, financial consultant and other fees, 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. (2) The estimated cost of accomplishing those purposes. (3) The amount of the principal of the indebtedness. (4) The maximum term the bonds proposed to be issued shall run before maturity, which shall not be beyond the date of termination of the imposition of the retail transactions and use tax. (5) The maximum rate of interest to be paid, which shall not exceed the maximum allowable by law. (6) The denomination or denominations of the bonds, which shall not be less than five thousand dollars ($5,000). (7) The form of the bonds, including, without limitation, registered bonds and coupon bonds, to the extent permitted by federal law, and the form of any coupons to be attached thereto, the registration, conversion, and exchange privileges, if any, pertaining thereto, and the time when all of, or any part of, the principal becomes due and payable. (b) The resolution may also contain any other matters authorized by this  chapter   article  or any other law. SEC. 38. Section 190312 of the Public Utilities Code is amended to read: 190312. The bonds shall bear interest at a rate or rates not exceeding the maximum allowable by law, payable at intervals determined by the  commission,   authority,  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  commission.   authority.  SEC. 39. Section 190313 of the Public Utilities Code is amended to read: 190313. In the resolution authorizing the issuance of the bonds, the  commission   authority  may also provide for the call and redemption of the bonds prior to maturity at the times and prices and upon other terms as specified. However, no bond is 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. SEC. 40. Section 190314 of the Public Utilities Code is amended to read: 190314. The principal of, and interest on, the bonds shall be payable in lawful money of the United States at the office of the treasurer of the  commission,   au   thority,  or at other places as may be designated, or at both the office and other places at the option of the holders of the bonds. SEC. 41. Section 190315 of the Public Utilities Code is amended to read: 190315. The bonds, or each series thereof, shall be dated and numbered consecutively and shall be signed by the chairperson or vice chairperson of the  commission   authority  and the auditor-controller of the  commission,   authority,  and the official seal, if any, of the  commission   authority  shall be attached. The interest coupons of the bonds shall be signed by the auditor-controller of the  commission.   authority.  All of the signatures and seal may be printed, lithographed, or mechanically reproduced. If any officer whose signature appears on the bonds or coupons ceases to be that officer before the delivery of the bonds, the officer's signature is as effective as if the officer had remained in office. SEC. 42. Section 190316 of the Public Utilities Code is amended to read: 190316. The bonds may be sold as the  commission   authority  determines by resolution, and the bonds may be sold at a price below par, whether by negotiated or public sale. SEC. 43. Section 190318 of the Public Utilities Code is amended to read: 190318. All accrued interest and premiums received on the sale of the 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  commission   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  commission.   authority.  Bonds so purchased shall be canceled immediately. SEC. 44. Section 190319 of the Public Utilities Code is amended to read: 190319. (a) The  commission   authority  may provide for the issuance, sale, or exchange of refunding bonds to redeem or retire any bonds issued by the  commission   authority  upon the terms, at the times and in the manner which it determines. (b) Refunding bonds may be issued in a principal amount sufficient to pay all, or any part of, the principal of the outstanding bonds, the premiums, if any, due upon call and redemption thereof prior to maturity, all expenses of the refunding, and either of the following: (1) The interest upon the refunding bonds from the date of sale thereof to the date of payment of the bonds to be refunded out of the proceeds of the sale of the refunding bonds or to the date upon which the bonds to be refunded will be paid pursuant to call or agreement with the holders of the bonds. (2) The interest upon the bonds to be refunded from the date of sale of the refunding bonds to the date of payment of the bonds to be refunded or to the date upon which the bonds to be refunded will be paid pursuant to call or agreement with the holder of the bonds. (c) The provisions of this  chapter   article  for the issuance and sale of bonds apply to the issuance and sale of refunding bonds. SEC. 45. Section 190320 of the Public Utilities Code is amended to read: 190320. (a) The  commission   authority  may borrow money in anticipation of the sale of bonds which have been authorized pursuant to this  chapter,   article,  but which have not been sold or delivered, and may issue negotiable bond anticipation notes therefor and may renew the bond anticipation notes from time to time. However, the maximum maturity of any bond anticipation notes, including the renewals thereof, shall not exceed five years from the date of delivery of the original bond anticipation notes. (b) The bond anticipation notes, and the interest thereon, may be paid from any money of the  commission   authority  available therefor, including the revenues from the tax. If not previously otherwise paid, the bond anticipation notes, or any portion thereof, or the interest thereon, shall be paid from the proceeds of the next sale of the bonds of the  commission   authority  in anticipation of which the notes were issued. (c) The bond anticipation notes shall not be issued in any amount in excess of the aggregate amount of the bonds which the  commission   authority  has been authorized to issue, less the amount of any bonds of the authorized issue previously sold, and also less the amount of other bond anticipation notes therefor issued and then outstanding. The bond anticipation notes shall be issued and sold in the same manner as the bonds. (d) The bond anticipation notes and the resolutions authorizing them may contain any provisions, conditions, or limitations which a resolution of the  commission   authority  may contain. SEC. 46. Section 190321 of the Public Utilities Code is amended to read: 190321. Any bonds issued under this  chapter   article  are legal investment for all trust funds; for the funds of insurance companies, commercial and savings banks, 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, counties, school districts, or other districts within the state, that money or those funds may be invested in the bonds issued under this chapter,   article,  and whenever bonds of cities, counties, school districts, or other districts within the 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 money, the bonds issued under this  chapter   article  may be so used. The provisions of this  chapter   article  are in addition to all other laws relating to legal investments and shall be controlling as the latest expression of the Legislature with respect thereto. SEC. 47. Section 190322 of the Public Utilities Code is amended to read: 190322. Any action or proceeding wherein the validity of the adoption of the retail transactions and use tax ordinance provided for in this  chapter   article  or the issuance of any bonds thereunder or any of the proceedings in relation thereto is contested, questioned, or denied, shall be commenced within six months from the date of the election at which the ordinance is approved; otherwise, the bonds and all proceedings in relation thereto, including the adoption and approval of the ordinance, shall be held to be valid and in every respect legal and incontestable. SEC. 48. Section 190323 of the Public Utilities Code is amended to read: 190323.  The commission has no   This chapter does not vest in the authority the  power to impose any tax other than the transactions and use tax imposed upon approval of the voters in accordance with this  division.   chapter.  SEC. 49. Chapter 2 (commencing with Section 190500) is added to Division 20 of the Public Utilities Code, to read: CHAPTER 2. SAN BERNARDINO COUNTY TRANSPORTATION AUTHORITY CONSOLIDATION ACT OF 2016 190500. This chapter shall be known and may be cited as the San Bernardino County Transportation Authority Consolidation Act of 2016. 190503. For purposes of this chapter, the following definitions shall apply: (a) "Authority" means the San Bernardino County Transportation Authority established pursuant to Section 190505. (b) "Local congestion management agency" means a San Bernardino County congestion management agency established pursuant to subdivision (a) of Section 65089 of the Government Code. (c) "Local transportation authority" means a San Bernardino County transportation authority established pursuant to Section 180050. (d) "Service authority for freeway emergencies" means a San Bernardino County service authority for freeway emergencies established pursuant to Section 2551 of the Streets and Highways Code. 190505. (a) There is hereby created the San Bernardino County Transportation Authority. The authority shall be the successor agency to the powers, duties, revenues, debts, obligations, liabilities, immunities, and exemptions of the San Bernardino County Transportation Commission established pursuant to Section 130050, local transportation authority, service authority for freeway emergencies, and local congestion management agency, and of the San Bernardino Associated Governments, established pursuant to Section 6502 of the Government Code, when it was acting on behalf, or in the capacity, of those agencies. (b) The authority may, at its own election, exercise any statutory or regulatory powers and rely upon any immunities or exemptions provided by law for the county transportation commission, local transportation authority, service authority for freeway emergencies, or local congestion management agency. (c) The governing body of the authority shall consist of the following members: (1) Five members of the San Bernardino County Board of Supervisors. (2) One member from each of the incorporated cities of the County of San Bernardino, who shall be a mayor or a city council member of his or her incorporated city. (3) One nonvoting member appointed by the Governor. (d) Each incorporated city of the County of San Bernardino may appoint an alternate member to represent it at a meeting, but only if the regular member cannot attend the meeting. The alternate member shall be either the mayor or a city council member of that incorporated city. 190510. (a) Any reference in this division, or in any other provision of law or regulation, to the San Bernardino County Transportation Commission or to a San Bernardino County transportation commission, local transportation authority, service authority for freeway emergencies, or local congestion management agency, shall be deemed to refer to the authority. (b) By operation of law, the authority shall assume the rights, obligations, assets, and liabilities of the San Bernardino County Transportation Commission and San Bernardino County local transportation authority, service authority for freeway emergencies, and local congestion management agency, and of the San Bernardino Associated Governments when it was acting on behalf, or in the capacity, of those agencies, under any contract to which any of them is a party and which was entered into before January 1, 2017. All real and personal property owned by any of them shall be transferred to the authority by operation of law. (c) The authority shall indemnify, defend, and hold harmless the San Bernardino Associated Governments and its member agencies from any and all powers, duties, debts, obligations, liabilities, or claims arising out of or related to the powers, duties, debts, obligations, and liabilities transferred to the authority under this act by operation of law. 190512. Except as otherwise provided in this division, Chapter 1 (commencing with Section 130000), Chapter 2 (commencing with Section 130050), Chapter 3 (commencing with 130100), and Chapter 4 (commencing with Section 130200) of Division 12 shall be applicable to the authority and shall be in addition to the powers and functions of the authority set forth in this chapter. 190514. Chapter 1 (commencing with Section 180000), Chapter 5 (commencing with Section 180200), and Chapter 6 (commencing with Section 180250) of Division 19 shall be applicable to the authority and shall be in addition to the powers and functions of the authority set forth in this chapter. 190520. A majority of the members of the authority shall constitute a quorum for the transaction of business, and all official acts of the authority shall require the affirmative vote of a majority of the members of the authority. 190530. (a) After the creation of the authority and on the effective date of a contract with the San Bernardino County Employees' Retirement Association providing retirement benefits to the authority's employees equivalent to those provided to employees of the San Bernardino Associated Governments, existing balances in the San Bernardino County Associated Governments' Account in the San Bernardino County Employees' Retirement Association fund shall be transferred to the authority's account in that fund. (b) After the creation of the authority and on the effective date of a contract with the California Public Employees' Retirement System, the authority shall assume all retirement fund obligations of the retired employees of San Bernardino Associated Governments, and existing balances in the San Bernardino County Associated Governments' Account in the California Public Employees' Retirement System fund shall be transferred to the authority's account in that fund. (c) As of the effective date of the transfer of retirement funds under subdivision (a), all then current employees of the San Bernardino Associated Governments shall be deemed to be employees of the authority and all duties and obligations of the employment relationship shall be assumed by the authority. (d) The authority may contract to provide the services of its employees to San Bernardino Associated Governments upon lawful terms and conditions as the authority and the San Bernardino Associated Governments shall agree. 190550. Notwithstanding Section 130233, if, after rejecting bids received under Section 130232, the authority determines and declares, by a majority vote of all of its members, that the supplies, equipment, or materials may be purchased at a lower price in the open market, the authority may proceed to purchase those supplies, equipment, or materials in the open market without further observance of the provisions in Article 2 (commencing with Section 130220) of Chapter 4 of Division 12 regarding contracts, bids, advertisement, or notice. SEC. 50. Section 149.11 of the Streets and Highways Code, as added by Chapter 702 of the Statutes of 2015, is amended to read: 149.11. (a) (1) Notwithstanding Sections 149 and 30800 of this code, and Section 21655.5 of the Vehicle Code, the San Bernardino County Transportation  Commission,   Authority,  created pursuant to Section  130054   190505  of the Public Utilities Code, may conduct, administer, and operate a value-pricing program in the Interstate 10 and Interstate 15 corridors in the County of San Bernardino. The value-pricing program may include high-occupancy toll lanes or other toll facilities. The San Bernardino County Transportation  Commission   Authority  may also extend the program to include the approaching and departing connectors on Interstate 10 extending into the County of Los Angeles, as designated by an agreement with the Los Angeles County Metropolitan Transportation Authority, and the connection to the Interstate 15 express lanes project in the County of Riverside, as designated by an agreement with the Riverside County Transportation Commission. The San Bernardino County Transportation  Commission   Authority  may exercise its existing powers of eminent domain pursuant to Section 130220.5 of the Public Utilities Code to acquire property necessary to carry out the purposes of the value-pricing program. (2) The value-pricing program authorized pursuant to paragraph (1) may only be implemented upon a determination that the program and the resulting facilities will improve the performance of the affected corridors. Improved performance may be demonstrated by factors that include, but are not limited to, increased passenger throughput or improved travel times. The San Bernardino County Transportation  Commission   Authority  shall make the determination required by this paragraph in a public meeting prior to operation of the value-pricing program. (3) The San Bernardino County Transportation  Commission   Authority  shall have the authority to set, levy, and collect tolls, user fees, or other similar charges payable for the use of the toll facilities in the County of San Bernardino, and any other incidental or related fees or charges, and to collect those revenues, in a manner determined by the San Bernardino County Transportation  Commission,   Authority,  in amounts as required for the following expenditures relative to the program and for the purposes of paragraph (4): (A) Development, including the costs of design, construction, right-of-way acquisition, and utilities adjustment. (B) Operations and maintenance, including, but not limited to, insurance, collection, and enforcement of tolls, fees, and charges. (C) Repair, rehabilitation, and reconstruction. (D) Indebtedness incurred and internal loans and advances, including related financial costs. (E) Administration, which shall not exceed 3 percent of the revenues of toll facilities and associated transportation facilities. (F) Reserves for the purposes described in subparagraphs (A) to (E), inclusive. (4) All revenue generated pursuant to paragraph (3) in excess of the expenditure needs of that paragraph shall be used exclusively for the benefit of the transportation corridors included in the value-pricing program created pursuant to this section. These excess revenue expenditures shall be described in an excess revenue expenditure plan developed in consultation with the department and adopted and periodically updated by the board of directors of the San Bernardino County Transportation  Commission   Authority  and may include, but need not be limited to, the following eligible expenditures: (A) Expenditures to enhance transit service designed to reduce traffic congestion within the transportation corridors included in the value-pricing program created pursuant to this section. Eligible expenditures include, but are not limited to, transit operating assistance, the acquisition of transit vehicles, and transit capital improvements otherwise eligible to be funded under the state transportation improvement program pursuant to Section 164. (B) Expenditures to make operational or capacity improvements designed to reduce traffic congestion or improve the flow of traffic in the transportation corridors included in the value-pricing program created pursuant to this section. Eligible expenditures include, but are not limited to, any phase of project delivery to make capital improvements to on ramps, off ramps, connector roads, roadways, bridges, or other structures that are necessary for or related to the tolled or nontolled transportation facilities in the transportation corridors included in the value-pricing program created pursuant to this section. (5) To the extent the San Bernardino County Transportation  Commission   Authority  plans to extend the value-pricing program into the Counties of Los Angeles or Riverside, it shall enter into an agreement with the Los Angeles County Metropolitan Transportation Authority or the Riverside County Transportation Commission, as applicable, subject to approval of the board of directors of the San Bernardino County Transportation  Commission   Authority  and the board of directors of the affected entity. If the value-pricing program developed and operated by the San Bernardino County Transportation  Commission   Authority  connects to, or is near, similar toll facilities constructed and operated by the Los Angeles County Metropolitan Transportation Authority or the Riverside County Transportation Commission, the respective entities shall enter into an agreement providing for the coordination of the toll facilities operated by each entity. (b) (1) The San Bernardino County Transportation  Commission   Authority  shall carry out the program in cooperation with the Department of the California Highway Patrol pursuant to an agreement that addresses all matters related to enforcement on state highway system facilities in connection with the value-pricing program, and with the department pursuant to an agreement that addresses all matters related to the design, construction, maintenance, and operation of state highway system facilities in connection with the value-pricing program, including, but not limited to, financing, repair, rehabilitation, and reconstruction. (2) The San Bernardino County Transportation  Commission   Authority  shall be responsible for reimbursing the department and the Department of the California Highway Patrol for costs related to the toll facility pursuant to an agreement between the San Bernardino County Transportation  Commission   Authority  and the department and between the San Bernardino County Transportation  Commission   Authority  and the Department of the California Highway Patrol. (c) Single-occupant vehicles that are certified or authorized by the San Bernardino County Transportation  Commission   Authority  for entry into, and use of, the high-occupancy toll lanes implemented pursuant to this section are exempt from Section 21655.5 of the Vehicle Code, and the driver shall not be in violation of the Vehicle Code because of that entry and use. (d) (1) The San Bernardino County Transportation  Commission   Authority  may issue bonds at any time to finance any costs necessary to implement the program established pursuant to this section and any expenditures provided for in paragraphs (3) and (4) of subdivision (a), payable from the revenues generated from the program and any other sources of revenues available to the San Bernardino County Transportation  Commission   Authority  that may be used for these purposes, including, but not limited to, sales tax revenue, development impact fees, or state and federal grants. (2) The maximum bonded indebtedness that may be outstanding at any one time shall not exceed an amount that may be serviced from the projected revenues available as described in paragraph (1). (3) The bonds shall bear interest at a rate or rates not exceeding the maximum allowable by law, payable at intervals determined by the San Bernardino County Transportation  Commission.   Authority.  (4) Any bond issued pursuant to this subdivision shall contain on its face a statement to the following effect: "Neither the full faith and credit nor the taxing power of the State of California is pledged to the payment of principal of, or interest on, this bond." (5) Bonds shall be issued pursuant to a resolution of the governing board of the San Bernardino County Transportation  Commission   Authority  adopted by a majority vote of its governing board. The resolution or bond authorizing instrument shall state all of the following: (A) The purposes for which the proposed debt is to be incurred. (B) The estimated cost of accomplishing those purposes. (C) The amount of the principal of the indebtedness. (D) The maximum term of the bonds and the maximum interest rate. (E) The denomination or denominations of the bonds, which shall not be less than five thousand dollars ($5,000). (F) The form of the bonds. (e) Not later than three years after  either  the San Bernardino County Transportation Commission  or the San Bernardino County Transportation Authority  first collects revenues from the program authorized by this section, the San Bernardino County Transportation  Commission   Authority  shall submit a report to the Legislative Analyst on its findings, conclusions, and recommendations concerning the program. The report shall include an analysis of the effect of the transportation facilities on the adjacent mixed-flow lanes and any comments submitted by the department and the Department of the California Highway Patrol regarding operation of the transportation facilities. (f) This section shall not prevent the department or any local agency from constructing improvements in the transportation corridors that compete with the program, and the San Bernardino County Transportation  Commission   Authority  shall not be entitled to compensation for the adverse effects on toll revenue due to those competing improvements. (g) If any provision of this section or the application thereof is held invalid, that invalidity shall not affect other provisions or applications of this section that can be given effect without the invalid provision or application, and to this extent the provisions are severable. (h) Nothing in this section shall authorize the conversion of any existing nontoll or nonuser-fee lanes into tolled or user-fee lanes, except that a high-occupancy vehicle lane may be converted into a high-occupancy toll lane. SEC. 51. The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. SEC. 52. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.