Bill Text: CA AB422 | 2015-2016 | Regular Session | Chaptered

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Bill Title: Sacramento Regional Transit District: line of credit.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Passed) 2015-09-28 - Chaptered by Secretary of State - Chapter 328, Statutes of 2015. [AB422 Detail]

Download: California-2015-AB422-Chaptered.html

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BILL NUMBER: AB 422	CHAPTERED
	BILL TEXT

	CHAPTER  328
	FILED WITH SECRETARY OF STATE  SEPTEMBER 28, 2015
	APPROVED BY GOVERNOR  SEPTEMBER 28, 2015
	PASSED THE SENATE  AUGUST 24, 2015
	PASSED THE ASSEMBLY  AUGUST 27, 2015
	AMENDED IN SENATE  JULY 16, 2015
	AMENDED IN ASSEMBLY  APRIL 20, 2015
	AMENDED IN ASSEMBLY  APRIL 7, 2015
	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, 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 authorize the district to seek and obtain a
short-term revolving line of credit for operating purposes in
anticipation of receipt of federal operating grants, with the
extension of credit to the district evidenced by a note, in addition
to and as an alternative to temporary borrowing, as specified. The
bill would authorize the district to pledge anticipated federal
grants and other available funds as security for repayment of the
note and would prescribe other terms.


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, and as an alternative to, the borrowing
authority in Section 102582, the district may seek and obtain a
short-term revolving line of credit for operating purposes in
anticipation of receipt of federal operating grants, with the
extension of credit to the district evidenced by a note, pursuant to
a resolution adopted by the board of directors of the district. The
district may pledge the anticipated grants and any other 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 federal operating grants and
other available funds over a multiyear period. Notwithstanding the
60-month maturity period for the line of credit, the maximum
indebtedness under the note shall not exceed the maximum amount in
federal operating grant revenues that the district anticipates
receiving in the next fiscal year. Immediately upon receipt thereof,
the district shall set aside and apply all amounts received from the
pledged federal operating grant revenues to the repayment of any
outstanding indebtedness incurred pursuant to this section, and these
federal operating grant revenues may not be used for any other
purpose until such time as the indebtedness is fully repaid.