2005 California Government Code Sections 68056-68059.15 TITLE 7.91. FRESNO METROPOLITAN PROJECTS ACT

68056.  The Legislature hereby finds and declares:
   (a) Projects to improve the general quality of life, including
scientific, cultural, and multicultural facilities and programs, are
essential in providing a rich source of knowledge and inspiration to
all of the residents of the Fresno metropolitan area and of the
state.
   (b) The preservation and development of those facilities and
programs are vital to the cultural and intellectual life of the
Fresno metropolitan area and of the state.
   (c) Those projects and facilities draw upon the culturally diverse
population of the Fresno metropolitan area and enhance their
contributions to community life.
   (d) Those projects and facilities are a critical factor in the
economic well-being of the Fresno metropolitan area and of the state.
   (e) Those projects and facilities are needed to maintain economic
development and to promote tourism in the Fresno metropolitan area
and of the state.
   (f) Creation of a Fresno Metropolitan Projects Authority will
promote the health, safety, and welfare of the residents of the
Fresno metropolitan area and of the state.
   (g) It is unfeasible for the County of Fresno or the individual
municipal entities to allocate moneys through their general funds.
It is in the public interest to allow the voters of the Fresno
metropolitan area to create an authority because it calls for a new,
low cost, and equitable program of citizen investment in general
community projects.
68057.  This title shall be liberally construed in order to
effectuate its purposes. No inadvertent error, irregularity,
informality, or the inadvertent neglect or omission of any officer,
in any procedure taken under this title, other than fraud, shall void
or invalidate that proceeding or any levy imposed to finance
community projects.
68058.  Unless the context otherwise requires, the following
definitions govern the construction of this title:
   (a) "Annual operating revenue" means revenue and support from all
sources except capital construction revenue, designated funds for
capital needs, Fresno Metropolitan Projects Authority revenue, and
in-kind revenue. Revenue from events, auxiliary programs and special
programs shall be net of expenses.
   (b) "Authority" means the Fresno Metropolitan Projects Authority.
   (c) "Board" means the Board of Directors of the Fresno
Metropolitan Projects Authority.
   (d) "Cultural facility or program" means a nonprofit institutional
organization which meets the requirements of Section 501(c)(3) of
the federal Internal Revenue Code of 1986, as amended, or program
thereof having as its primary purpose the advancement and
preservation of art, music, history, literature, theater, or dance.
This does not include any agency of local government, the state, any
educational institution, any cable communications system, or any
newspaper or magazine.
   (e) "Multicultural facility and program" means a nonprofit
institutional organization which meets the requirements of Section
501(c)(3) of the federal Internal Revenue Code of 1986, as amended,
or program thereof having as its primary purpose advancement and
preservation of the various ethnic populations of the area and the
promotion of public education and understanding of those populations.
  This does not include any agency of local government, the state,
any educational institution, any cable communications system, or any
newspaper or magazine.
   (f) "Paid attendance" means the total paid attendance at all
programs as verified by annual audit reports.
   (g) "Proceeds" means the revenues from the retail transactions and
use taxes imposed pursuant to this title and remaining after payment
of operating and administrative expenses, including charges by the
State Board of Equalization for collection and distribution, not to
exceed 3.5 percent of revenues.
   (h) "Scientific facility and program" means a nonprofit
institutional organization which meets the requirements of Section
501(c)(3) of the federal Internal Revenue Code of 1986, as amended,
or program thereof having as its primary purpose the advancement and
preservation of physical sciences, natural or natural history.  This
does not include any agency of local government, the state, any
educational institution, any cable communications system, or any
newspaper or magazine.
   (i) "Public Broadcast Entity" means an on-the-air radio or
television station operating under a noncommercial educational
license granted by the Federal Communications Commission and that is
not owned, operated, or controlled by any religious or political
organization.
68059.  (a) The Fresno Metropolitan Projects Authority is hereby
established.
   (b) The authority shall be governed by a 13-member board of
directors comprised of:
   (1) One representative of the Board of Supervisors of Fresno
County.
   (2) One representative of the Fresno City Council.
   (3) One representative of the Eleventh District of the Parent
Teachers' Association.
   (4) One representative of an ad hoc committee of retired judges
from Fresno County's local and state benches.
   (5) One representative of the Fresno City and County Chamber of
Commerce.
   (6) One representative of the Older Americans Association of
Fresno County.
   (7) One representative of an ad hoc committee of representatives
of the Taxpayers Association of Fresno County and the San Joaquin
Taxpayers Association.
   (8) One representative of the Citizens for Community Enrichment.
   (9) One representative of the Fresno County Farm Bureau.
   (10) One representative of the Fresno-Madera Central Labor
Council.
   (11) One representative of the League of Mexican-American Women.
   (12) One representative of the West Fresno Ministerial Alliance.
   (13) One representative of the California Retired Teachers
Association, Fresno County Division.
   (c) Vacancies in any of the board positions shall be filled by the
appointing entity or organization.
   (d) Board members shall serve for a term of four years.
   (e) All members of the board shall reside within the boundaries of
the authority.
   (f) All members of the board are limited to serving two
consecutive terms.
   (g) The number of members of the board may be increased to 15 by
an affirmative vote of the majority of the members of the board.
   (h) All members of the board shall file statements of economic
interests pursuant to Chapter 9.5 (commencing with Section 89500) of
Title 9.
68059.1.  The boundaries of the authority shall be the area within
the adopted sphere of influence of the City of Fresno, as identified
in Resolution Number AD-89-5 of the Fresno County Local Agency
Formation Commission, as revised May 2, 1990.
68059.2.  If the voters do not approve the imposition of the retail
transactions and use tax at the election conducted pursuant to
Section 68059.7, this title shall be repealed as of the date that the
county certifies the election results to the Secretary of State.
68059.3.  The initial meeting of the board shall convene within 30
days after this title becomes effective.  The Chairperson of the
Fresno County Board of Supervisors shall convene the initial meeting.
68059.4.  The board at its initial meeting shall call an election
pursuant to Section 68059.7 and consider and adopt other election
procedures for the conduct of that election.
68059.5.  (a) The board of directors shall appoint an advisory board
that includes representatives from the various ethnic, racial, and
cultural segments of the community as well as representatives from
the arts, agriculture, business and industry, clergy, education,
medicine, law, science, and recreation.
   (b) The composition, terms and operating procedures for the
advisory board shall be as prescribed by the board.
   (c) The advisory board may make recommendations to the board as to
funding allocations for facilities and programs.
68059.6.  (a) The board at its first meeting, and thereafter
annually in January, shall elect a chairperson who shall preside at
all meetings, and a vice chairperson who shall preside in his or her
absence.  In the event of their absence or inability to act, the
members present, by an order entered into the minutes, shall select
one of their members to act as chairperson pro tempore, who, while so
acting, shall have the authority of the chairperson.
   (b) The board shall adopt rules for its proceedings consistent
with the laws of the state.
   (c) All official acts of the authority shall require the
affirmative vote of the majority of the directors.
   (d) All meetings of the authority, including, but not limited to,
the meetings of the advisory board of the authority, shall be
conducted pursuant to Chapter 9 (commencing with Section 54950) of
Part 1 of Division 2 of Title 5 of the Government Code.
   (e) The authority shall do the following:
   (1) Adopt an annual budget.
   (2) Adopt an administrative code, which prescribes the powers and
duties of the authority officers, the method of appointment of
authority, employees, and methods, procedures, and systems of
operations and management of the authority.
   (3) Cause a postaudit of the financial transactions and records of
the authority to be made at least annually by a certified public
accountant.
   (4) Do any and all of the following things necessary to carry out
the purpose of this title including:
   (A) Hiring an independent staff of its own or contract with any
public agency to implement this title.
   (B) Fix the compensation of its employees.  The authority shall
not expend more than 1.5 percent of the funds generated pursuant to
this title in any year for salary and benefits of its staff.
   (C) Publish notice of the time and place of a public hearing on
the adoption of the annual budget pursuant to Section 6061 not later
than the 15th day prior to the day of the hearing.  The proposed
annual budget shall be available for public inspection at least 15
days prior to the hearing.
   (D) Sue and be sued, except as otherwise provided by law, in all
actions and proceedings, in all courts and tribunals of competent
jurisdiction.
   (E) All claims for money or damages against the authority shall be
governed by Division 3.6 (commencing with Section 810) of Title 1,
except as provided therein, or by other statutes or regulations
expressly applicable thereto.
   (F) Enter into contracts upon any terms and conditions that the
authority finds in its best interest.
68059.7.  (a) The authority, subject to the approval of a majority
vote by the voters, may impose a retail transactions and use tax at a
maximum rate of one-tenth of 1 percent under this title.
   (b) Notwithstanding any other provision of law, the authority at
the next municipal election, or upon a majority vote of the
authority, at any municipal or countywide election prior to December
31, 1994, shall submit to the voters within its geographical
boundaries the question of whether the authority shall be authorized
to levy and collect transactions and use taxes for the purpose stated
in this title.  The Fresno County Clerk shall be charged with the
duty to conduct that election pursuant to the procedures adopted by
the board.
   (c) The tax ordinance shall specify the period, not to exceed 20
years, but subject to termination within 10 years upon a majority
vote of the board, during which the tax is to be imposed.
   (d) The authority shall reimburse the county for the county's
costs in conducting the election through the proceeds of the retail
transactions and use tax.  If the voters do not approve the
imposition of a retail transactions and use tax, the county's actual
incremental costs in conducting the election shall be paid by private
contributions.
68059.8.  Proceeds of taxes levied pursuant to this title shall be
used by the board to assist scientific, cultural, and multicultural
facilities and for programs within the authority and shall be
distributed annually by the board as follows:
   (a) Fifty percent to the Fresno Zoological Society, the Fresno
Metropolitan Museum of Art, History, and Science, the Fresno
Philharmonic Orchestra, and the Fresno Art Museum as follows:
   (1) Each of the above institutions will receive an annual core
grant in the flat dollar amount of two hundred thousand dollars
($200,000), and that amount shall remain constant over the life of
this title.
   (2) Any funds remaining after distribution of the core grants
shall be divided annually amongst these four institutions on a
percentage basis proportionate to their respective annual operating
revenues.
   (A) The first year of authority operation that figure will be
derived by averaging annual operating revenue for the prior five
years.
   (B) Each year thereafter it will be derived by averaging annual
operating revenue for the prior three years.
   (3) Each institution may apply those funds to operations so long
as the amount applied to operations does not exceed 35 percent of the
institution's total operating revenue for the current year.
   (A) Any funds received over this amount shall be used for capital
improvements or special projects that expand the institution's
programs.
   (B) Each institution shall submit an annual report of operating
income on the form furnished by the authority.  That report shall be
audited and certified by an independent accountant.
   (b) Twenty-five percent shall be distributed to scientific,
cultural, and multicultural facilities and programs within the
authority which are not receiving funds under subdivision (a) and
which meet the following criteria:
   (1) Any facility or program receiving funds under this section
shall be a nonprofit organization whose primary purpose is to provide
for the general enlightenment and entertainment of the public
through the production, presentation, exhibition, advancement, or
preservation of art, music, theater, dance, history, literature,
physical sciences, natural sciences, or natural history.
   (2) The facility or program shall have its principal office within
the authority, shall conduct the majority of its activities within
the State of California, and shall principally benefit the residents
of the authority.
   (3) The facility or program shall have been in existence for at
least two years prior to the distribution.
   (4) The 25 percent shall be allocated annually by the board
considering the annual operating revenue, paid attendance, regional
impact, accessibility, and related qualities of the selected
facilities or programs as determined by the board.  At its
discretion, the board may authorize multiyear grants pursuant to this
section.
   (c) Five percent may be distributed to local public broadcast
entities serving the area of the authority for the production of
programs dedicated to local subjects.
   (d) Five percent may be distributed to facilities or programs for
purposes of conducting multicultural projects or events for the
enrichment of the residents of the authority.
   (e) Eleven and one-half percent shall be distributed for capital
improvement projects or projects that are deemed by the board to
enrich the quality of life, or that protect significant natural
resources of the authority.
   (f) Any moneys not distributed pursuant to this section shall be
placed by the board in an interest bearing account with a federally
insured bank or savings and loan association located in the State of
California.  Those moneys shall remain in that account until the
board, in its discretion, determines to distribute the moneys in
accordance with any of the criteria set forth above.
   (g) None of the proceeds shall be utilized to replace revenues
lost by reason of the restrictions of Article XIIIA of the California
Constitution, or to finance projects formerly funded by property tax
revenues collected by the City of Fresno or the County of Fresno.
   (h) "Pay as you go" financing is the preferred method of financing
facilities and programs under this title.  However, the authority
may use bond financing as an alternative method if the scope of
planned expenditures makes "pay as you go" financing unfeasible.
   (i) The authority shall pay all legal costs related to any
challenge of the constitutionality of the retail transactions and use
tax from the proceeds of the tax.
68059.9.  (a) The authority may issue limited tax bonds pursuant to
this title payable from revenues generated from the transactions and
use tax.
   (b) Limited tax bonds shall be issued pursuant to a resolution
adopted at any time by a majority vote of the board of the 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.
   (c) 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 authority.  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 payment thereof have been set aside for that purpose in a
trust or escrow account.
   (d) The proceeds of the bonds shall be available only for capital
projects and shall not be utilized to fund any other ongoing
operating costs.
68059.10.  (a) The 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 title or any other law.
   (c) The resolution 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.
68059.11.  (a) The bonds shall bear interest at a rate or rates not
exceeding the maximum allowable by law, payable at intervals
determined by the authority.
   (b) 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 authority, 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.
   (c) The bonds, or each series thereof, shall be dated and numbered
consecutively and shall be signed by the chairperson or vice
chairperson of the authority and the official seal, if any, of the
authority shall be attached.
   (d) 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.
   (e) The bonds may be sold as the authority determines by
resolution, and the bonds may be sold at a price below par, whether
by negotiated or public sale.
   (f) Delivery of any bonds may be made at any place either inside
or outside the state, and the purchase price may be received in cash
or bank credits.
   (g) 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
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:  (1) transferred
to the fund to be used for the payment of principal of, and interest
on, the bonds or (2) 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.
68059.12.  (a) The authority may provide for the issuance, sale, or
exchange of refunding bonds to redeem or retire any bonds issued by
the 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 title for the issuance and sale of
bonds apply to the issuance and sale of refunding bonds.
68059.13.  (a) The authority may borrow money in anticipation of the
sale of bonds which have been authorized pursuant to this chapter,
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 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 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 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 authority may contain.
68059.14.  Any bonds issued under this title 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 funds may be
invested in the bonds issued under this title, 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 title may be so used.  The provisions of
this title 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.
68059.15. Any action or proceeding in which the validity of the
adoption of the retail transactions and use tax ordinance provided
for in this title or any of the proceedings in relation thereto is
contested, questioned, or denied, shall be commenced pursuant to
Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the
Code of Civil Procedure 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 and the retail transactions and use tax
provided for therein, shall be held to be valid and in every respect
legal and incontestible.