2009 California Government Code - Section 26292-26293.4 :: Article 3. Transactions And Use Tax

26292.  The Legislature, by the enactment of this article, intends
the additional funds provided by this article to supplement existing
local revenues being used for the development of regional justice
facilities. Government agencies are encouraged to maintain their
existing commitment of local funds for regional justice facility
purposes.

26292.1.  A retail transactions and use tax ordinance applicable in
the incorporated and unincorporated territory of the county may be
adopted by the agency in accordance with Section 26292.5 and Part 1.6
(commencing with Section 7251) of Division 2 of the Revenue and
Taxation Code, if the ordinance is adopted by a two-thirds vote of
the board of directors of the agency and if two-thirds of the
electors voting on the measure vote to approve its imposition at a
special election called for that purpose by the agency. The tax
ordinance shall take effect at the close of the polls on the day of
the election at which the proposition is adopted. The initial
collection of the transactions and use tax shall take place in
accordance with Section 26292.4.

26292.2.  The ordinance shall state the tax rate and may state a
term during which the tax will be imposed. The purposes for which the
tax may be imposed are the general governmental purposes of the
agency as set forth in Section 26291.7.

26292.3.  (a) The county shall conduct an election called by the
agency. The election shall be held within the incorporated and
unincorporated areas of the county.
   (b) The election shall be called and conducted in the same manner
as provided by law for the conduct of elections by a county.
   (c) The cost incurred by the county in conducting the election
shall be reimbursed by the agency from proceeds of the transactions
and use tax.

26292.4.  (a) Any transactions and use tax ordinance adopted
pursuant to this article shall become operative on the first day of
the first calendar quarter commencing more than 110 days after
adoption of the ordinance.
   (b) Prior to the operative date of the ordinance, the agency shall
contract with the State Board of Equalization to perform all
functions incident to the administration and operation of the
ordinance.

26292.5.  The agency, subject to the approval of the voters, may
impose a tax rate of one-half of 1 percent under this chapter and
Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue
and Taxation Code. Neither this chapter nor the ordinance shall
affect any tax otherwise authorized.

26292.6.  The combined rate of tax imposed in San Joaquin County by
any entity pursuant to Part 1.5 (commencing with Section 7200) or
Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue
and Taxation Code, this chapter, and any other provision of law
authorizing the imposition of local sales or transactions and use
taxes shall not exceed 2.25 percent. Neither this chapter nor any
ordinance or resolution approved pursuant to this chapter shall
affect any tax otherwise authorized.

26292.7.  (a) The agency, as part of the ballot proposition to
approve the imposition of a retail transactions and use tax, may seek
authorization to issue bonds payable from the proceeds of the tax
and establish the appropriation limit of the agency for purposes of
Article XIII B of the California Constitution.
   (b) The maximum bonded indebtedness which 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 transactions and use tax for a period of not more than the
number of years for which the transactions and use tax authorized by
this article is to be imposed.

26292.8.  (a) The bonds authorized by the voters concurrently with
the approval of the retail transactions and use tax may be issued by
the agency at any time, and from time to time, 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 transactions and use tax revenues for the
limited tax bonds authorized under this article shall have priority
over the use of any of the revenues for other purposes except to the
extent that the priority is expressly restricted in the resolution
authorizing the issuance of the bonds.
   (c) The proceeds of the bonds may be used for the following
purposes:
   (1) To finance the activities set forth in paragraphs (2), (3),
(5), and (8) of subdivision (a) of Section 26291.7.
   (2) To pay the costs incurred for the issuance of the bonds.
   (3) To fund a reserve fund for the bonds.

26292.9.  The agency may provide for the bonds to bear a variable or
fixed interest rate, for the manner and intervals in which the rate
shall vary, and for the dates on which the interest shall be payable.

26293.  Limited tax bonds shall be issued pursuant to a resolution
adopted at any time, and from time to time, by vote of the board of
directors of the agency.

26293.1.  Any bonds issued pursuant to this article are a legal
investment for all trust funds; for the funds of insurance companies,
commerical savings banks, and trust companies; and for state school
funds. 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, those funds may be invested in
the bonds issued pursuant to this article, and whenever bonds of
cities, counties, school districts, or other districts within this
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 pursuant to this article may be so used. The
provisions of this 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.

26293.2.  Any action or proceeding wherein the validity of the
adoption of the retail transactions and use tax ordinance provided
for in this article or the issuance of any bonds thereunder 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.
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.

26293.3.  The agency has no power to impose any tax other than the
transactions and use tax imposed upon approval of the voters in
accordance with this chapter.

26293.4.  If any provision of this chapter or the application
thereof to any person or circumstance is held invalid, that
invalidity shall not affect other provisions or applications of the
chapter which can be given effect without the invalid provision or
application, and to this end the provisions of this chapter are
severable.