Public Utilities Code, 1951

This section defines “Commission,” “County,” and “Transit operations” for this article.

The county and its cities are meant to use any extra funds from this article to add to existing local public transportation funding, and they are encouraged to keep their current local funding commitment.

The commission may adopt a retail transactions and use tax ordinance for the county if voter approval and an expenditure plan are in place.

The commission must state the tax’s nature, set the tax rate or maximum rate, and identify how the tax revenue will be used.

Orange County must conduct the special election called by the commission, and the commission must reimburse the county’s election costs.

A tax ordinance adopted under this article becomes operative only after more than 120 days, and the commission must contract with the State Board of Equalization before that operative date.

The commission may allocate tax revenues for public transportation purposes, but not for transit operations.

If the commission decides to adopt a retail transactions and use tax, it must review needs, solicit proposals, adopt an evaluation procedure, prepare a 15-year expenditure plan, and hold approvals and hearings before adopting that plan.

The commission may review and propose amendments to the expenditure plan each year, must notify local officials and give them a copy, and the amendments usually take effect after 45 days unless a stated exception applies.

The commission may allocate limited tax bond proceeds when making annual allocations to the county and the cities for public transportation purposes.

The commission may lower a voter-approved tax rate in an amended expenditure plan, may later raise it again if it was lowered, but cannot raise it above the voter-approved rate.

If a retail transactions and use tax is adopted under this article, the commission must prepare and submit a report.

The commission may set a maximum tax rate up to 1% and, in some cases, may increase an adopted tax rate if the required ordinance and election approval steps are met. It also must set time limits for when the tax is in effect.

This section requires the ballot wording to describe a proposition authorizing the Orange County Transportation Commission to adopt a sales tax, and the proposition must state the actual percentage voters are choosing.

The commission may ask voters, in the same ballot proposition, to approve bonds payable only from retail transactions and use tax proceeds, and the proposition may authorize the Orange County Transportation Commission to adopt a sales tax for transportation purposes and/or issue those bonds.

The commission may ask voters to approve a proposal that increases its appropriations limits, and the ballot proposition must include the words “and increases the appropriations limit.”

The commission may issue certain voter-authorized bonds, paid only from tax proceeds, and those bonds are called limited tax bonds.

The commission may issue limited tax bonds by resolution, approved by a two-thirds vote of all members.

The commission may authorize bond call and redemption before maturity under stated conditions, and specified officials must sign the bonds and interest coupons.

The commission may sell bonds, but it must invite sealed bids before doing so and award the bonds to the highest responsible bidder if satisfactory bids are received.

Bonds may be delivered inside or outside the state, and the purchase price may be paid in cash or bank credits.

Bond sale interest, premiums, and remaining proceeds must be allocated to specified funds, and any bonds later purchased must be canceled immediately.

The commission may issue, sell, or exchange refunding bonds to redeem or retire its bonds.

The commission may borrow against authorized but unsold bonds, issue and renew bond anticipation notes, and must keep those notes within specified limits.

Bonds issued under this article are treated as legal investments for specified funds and may be used as security in the same situations as certain other public bonds.

Any lawsuit or proceeding challenging the ordinance, related bonds, or related proceedings must be started within six months after the election approving the ordinance.

If the tax measure is not submitted to the electors by December 31, 1985, this article stays in effect only until January 1, 1986, and then is repealed unless a later statute chaptered before that date repeals or extends the date.

This section defines “Commissions,” “Region,” and “Regional transit service” for this article.

The commissions must jointly develop a regional transit services implementation program and consult specified agencies while doing so.

County transportation commissions must hold a joint public hearing in each county before adopting the regional transit services program.

The commissions must complete the initial draft program by December 1, 1990, may omit intercounty bus services from the initial program, and must prepare, adopt, and implement a revised regional transit services program every two years that includes intercounty rail and bus services.

The adopted program must be the basis for a coordinated funding application by the commissions, and a commission may apply for funding before the initial program is adopted.

Article 10 becomes operative only if all four named county transportation commissions adopt resolutions making it applicable to each of them.

This chapter is named the Los Angeles County Transportation Commission Revenue Bond Act and may be cited by that name.

The Legislature states that alternative financing methods are needed for transit facilities in Los Angeles County.

This section states the chapter’s purpose: to implement the Legislature’s findings by providing an alternative way to finance facilities for transit systems.

The definitions in this article control how this chapter is interpreted, unless the context requires otherwise.

This section defines “Bonds” to include indebtedness and securities of any kind, such as bonds, notes, bond anticipation notes, commercial paper, and other obligations.

“Commission” is defined as the Los Angeles County Transportation Commission and any successor body or official that takes over its functions or powers.

This section defines “cost” for a project financed under this chapter.

“Notes” includes notes and related agreements, bond anticipation notes, and commercial paper.

“Transit project” or “project” is defined broadly to include real and personal property and many transit-related facilities and equipment.

“Public agency” is defined to include state bodies and local government entities such as counties, cities, regional agencies, districts, and other political subdivisions.

This section defines “public transit purposes” to include using transactions and use tax revenues to secure certain bonds and to pay bond principal, premium, interest, and issuance costs.

“Revenues” means the commission’s rents, receipts, purchase payments, other income, and investment income tied to its funds or accounts.

This section defines “Los Angeles Metro Rail project” and “initial segment of the Los Angeles Metro Rail project.”

The commission may incur indebtedness and obligations as allowed by this chapter.

The commission may acquire, lease, develop, maintain, operate, or dispose of property and related interests needed for a project, but this chapter does not give eminent domain power.

The commission may set and change project-related rates, rents, fees, fares, and charges, contract with persons or public agencies, and provide or maintain a security force, but it may not impose those charges on an operator for use of transit guideway facilities.

The commission may issue bonds for purposes allowed by this chapter, including to fund or refund them.

The commission, its revenues, its bonds, bond interest, and property it owns are exempt from specified taxes and public charges.

The commission may issue or renew notes, and may authorize, sell, deliver, and add terms to them in the same way as bonds.

The commission’s bonds are special obligations payable from available commission revenues or money, but the commission cannot pledge certain listed funds, and it cannot pledge city-allocated retail transactions and use tax revenue unless the city authorizes it.

The commission may issue and sell bonds, including serial or term bonds, and may issue temporary instruments while the bonds are being prepared.

When the commission wants to issue bonds, it must adopt a resolution stating the total bond amount. Any bond-resolution must also include required provisions about security, revenues, reserves, bond terms, defaults, and sale terms, if applicable.

Commission members and bond executors are not personally liable for the bonds or their issuance.

The commission may use available funds to buy its own bonds, and may also hold, pledge, cancel, or resell them if it follows agreements with bondholders.

The commission may secure bonds with a trust agreement, and the agreement may include terms about revenues, project mortgages, and bondholder protections.