2009 California Government Code - Section 26298-26298.58 :: Article 4. Transactions And Use Taxes In The County Of Orange

26298.  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 adult and juvenile
detention facilities and courthouse facilities within the county. The
county and the cities therein are further encouraged to maintain
their existing commitment of local funds for adult and juvenile
detention facilities and courthouse facilities purposes.

26298.2.  (a) A retail transactions and use tax ordinance applicable
in the incorporated and unincorporated territory of the county may
be adopted by the commission in accordance with Section 26298.8 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 commission and if two-thirds of the electors voting on the
measure vote to approve its imposition at an election. This election
may be a special election called for that purpose by the commission
or, if the commission so determines, shall be consolidated with a
regular election.
   (b) In addition to the authorization of subdivision (a), a retail
transactions and use tax ordinance applicable in the incorporated and
unincorporated territory of the county may be adopted by the
commission in accordance with the requirements of subdivision (a),
except that, at the option of the commission, the ordinance may be
required to be approved by two-thirds of the electors voting on the
measure.

26298.4.  The ordinance shall state the nature of the tax to be
imposed, the tax rate, the purposes for which the revenue derived
from the tax will be used, and the term during which the tax shall be
imposed. The proposition shall include an appropriations limit for
the agency pursuant to Section 4 of Article XIII B of the California
Constitution.

26298.6.  (a) The county shall conduct the election, as called by
the commission, regarding the imposition of a retail transactions and
use tax ordinance. The commission shall reimburse the county for its
cost in conducting that portion of the regular election directly
related to the commission measure or in conducting the special
election, as applicable.
   (b) Any special election shall be called and conducted in the same
manner as provided by law for the conduct of special elections by a
county.

26298.8.  The commission, 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.

26298.10.  (a) The actual wording of the proposition on any short
form of ballot card, label, or other device, regardless of the system
of voting used, shall read as follows:

  --------------------------------------+-------+----
                                        |       |
  "ADULT AND JUVENILE DETENTION         |       |
                                        |       |
  FACILITIES AND COURTHOUSE             |       |
                                        |       |
  FACILITIES--ORANGE COUNTY             |       |
  REGIONAL                              |       |
  JUSTICE FACILITIES COMMISSION         |       |
  To construct, furnish, acquire,       |       |
  maintain, and operate                 |       |
                                        |       |
  adult and juvenile detention          |       |
  facilities and courthouse             |       |
                                        |       |
  facilities in the county, this        |       |
  proposition authorizes the            |       |
                                        |       |
  Orange County Regional Justice        |  YES  |
  Facilities                            |       |
                                        |       |
  Commission to adopt a one-half of 1   |       |
  percent sales tax                     |       |
                                        |       |
  solely for adult and juvenile         |       |
  detention facilities and              |       |
                                        |       |
  courthouse facilities purposes."  In  |       |
  approving this                        |       |
                                        |       |
  proposition the voters are also       |       |
  approving an                          |       |
                                        |       |
  appropriations limit for the Orange   |       |
  County Regional                       |       |
                                        |       |
  Justice Facilities Commission.        +-------+----
                                        |   NO  |
  --------------------------------------+-------+----

   (b) The sample ballot to be mailed to the voters, under Section
13303 of the Elections Code, shall be the full proposition as set
forth in the ordinance calling for the measure to be voted upon at an
election.

26298.12.  (a) The commission may, as part of the same ballot
proposition to approve the imposition of a retail transactions and
use tax, seek authorization to issue bonds payable solely from the
proceeds of the retail transactions and use tax.
   (b) The actual wording of the proposition on any short form of
ballot card, label, or other device, regardless of the system of
voting used, shall read as follows:

  --------------------------------------+-------+----
  "ADULT AND JUVENILE DETENTION         |       |
                                        |       |
  FACILITIES AND COURTHOUSE             |       |
                                        |       |
  FACILITIES--ORANGE COUNTY             |       |
  REGIONAL                              |       |
  JUSTICE FACILITIES COMMISSION         |       |
  --------------------------------------+       |
  To construct, furnish, acquire,       |       |
  maintain, and operate                 |       |
                                        |       |
  adult and juvenile detention          |       |
  facilities and courthouse             |       |
                                        |       |
  facilities in the county, this        |       |
  proposition authorizes the            |       |
                                        |       |
  Orange County Regional Justice        |       |
  Facilities                            |       |
                                        |       |
  Commission to adopt a one-half of 1   |  YES  |
  percent sales tax                     |       |
                                        |       |
  solely for adult and juvenile         |       |
  detention facilities and              |       |
                                        |       |
  courthouse facilities purposes and/or |       |
  to issue bonds                        |       |
                                        |       |
  payable from the proceeds of that     |       |
  sales tax."  In                       |       |
                                        |       |
  approving this proposition the voters |       |
  are also                              |       |
                                        |       |
  approving an appropriations limit for |       |
  the Orange                            |       |
                                        |       |
  County Regional Justice Facilities    |       |
  Commission.                           |       |
  --------------------------------------+       |
                    NO                  |       |
  --------------------------------------+-------+----

   (c) The sample ballot to be mailed to the voters, under Section
13303 of the Elections Code, shall be the full proposition as set
forth in the ordinance calling for the measure to be voted upon at an
election.

26298.16.  (a) Any transactions and use tax ordinance adopted
pursuant to this article shall become operative as provided in
Section 7265 of the Revenue and Taxation Code.
   (b) Prior to the operative date of the ordinance, the commission
shall contract with the State Board of Equalization to perform all
functions incident to the administration and operation of the
ordinance.

26298.17.  The combined rate of any transactions and use tax imposed
pursuant to this chapter and all other transactions and use taxes
imposed pursuant to the Transactions and Use Tax Law (Part 1.6
(commencing with Section 7251) of the Revenue and Taxation Code) or
any other provision of law shall not exceed 1 percent. No tax shall
be considered in accordance with this part if, upon its adoption, the
combined rate will exceed 1 percent.

26298.18.  The revenues from the taxes imposed pursuant to this
article may be allocated by the commission for the following
purposes:
   (a) To administer this chapter.
   (b) To pay the costs of the financing, construction, acquisition,
furnishing, maintenance, and operation of adult and juvenile
detention facilities, courthouse facilities, and structures necessary
or convenient thereto, in compliance with the master plan and
pursuant to allocation or funding agreements described in Section
26298.20.
   (c) To pay the costs of the financing and acquisition of necessary
lands, easements, and rights-of-way at sites designated or approved
by the commission, including any costs incurred by the commission in
acquiring the lands, easements, and rights-of-way.
   (d) To hold title as necessary to land or facilities.
   (e) To retire all or a portion of any capital debt previously
incurred for any adult or juvenile detention facilities or courthouse
facilities which exists on the date the election is held for voter
approval of the retail transactions and use tax ordinance authorized
by this chapter.
   (f) To pay all debt service and any other related costs and
expenses of any bonds issued under this chapter.

26298.20.  (a) The commission shall establish a procedure for
reviewing and evaluating requests by the county and the cities in the
county for revenues of the commission to be used for the adult and
juvenile detention facilities and courthouse facilities purposes
specified in Section 26298.18, and shall review and evaluate, from
time to time, those requests. After approving such a request of the
county or any city in the county, the commission may allocate to the
county or city any lawfully available moneys of the commission,
including, but not limited to, the revenues from the taxes imposed
pursuant to this article and the proceeds of any limited tax bonds
authorized by the voters pursuant to Section 26298.12, in amounts as
the commission shall determine, to fund, in whole or in part, those
detention or courthouse facilities purposes.
   (b) In connection with any allocation of moneys to the county or
any city in the county pursuant to subdivision (a), the commission
shall enter into an allocation or funding agreement with the county
or city pursuant to which the commission shall commit the moneys
allocated under subdivision (a) to the county or city. The moneys
shall be used solely for the purposes approved by the commission
under subdivision (a). Each allocation or funding agreement shall
contain terms and conditions as the commission shall determine and
may provide, without limitation, the purpose or purposes for which
the allocation may be used, that the amount to be allocated may be
advanced by the commission in a lump sum or in a series of payments
at a date or dates determined by the commission, which may be in one
or more fiscal years of the commission, that the allocation will be
in the form of a conditional or unconditional grant or contribution
or as a loan or other advance against an obligation of the county or
city to repay the same, and the terms and conditions relating the
obligation to repay the same, including the interest rate to be paid
and the date or dates that payments are to be made to the commission
on account of that obligation.

26298.22.  (a) No modification, amendment, or rescission of any
allocation or funding agreement between the commission and the county
shall become effective unless the board of supervisors, by
resolution, first approves the modification, amendment, or
rescission.
   (b) No modification, amendment, or rescission of any allocation or
funding agreement between the commission and any city within the
county shall become effective unless the city council of the city, by
resolution, first approves the modification, amendment, or
rescission.

26298.24.  When adopting its annual budget pursuant to Section
26296.14, the commission shall provide that the lawfully available
moneys of the commission shall be used first for the payment of debt
service on all outstanding limited tax bonds of the commission
(unless otherwise provided in the resolution providing for the
issuance of such bonds) and (unless otherwise provided in an
allocation or funding agreement) for the payment of all allocations
required to be made pursuant to allocation or funding agreements
between the commission and the county or any city in the county prior
to the payment of operating costs and expenses and any other lawful
costs and expenses of the commission.

26298.28.  If a retail transactions and use tax is adopted pursuant
to this article, the commission shall prepare and submit a report to
the board of supervisors and to the city council of each city in the
county on or before January 1 of the year following the end of the
first full fiscal year after that date that the taxes are imposed
pursuant to this article and annually thereafter. The report shall
evaluate, and report the progress made in, the implementation of the
master plan in the preceding fiscal year.

26298.30.  (a) The bonds authorized by the voters concurrently with
the approval of the retail transactions and use tax may be issued by
the commission at any time, and from time to time, payable solely
from the proceeds of the tax. The bonds shall be referred to as
"limited tax bonds."
   (b) Limited tax bonds may not be issued unless the estimated
proceeds of the retail transactions and use tax for a period of 30
years after issuance of the bonds shall at least equal the aggregate
principal and interest payable with respect to all limited tax bonds
then outstanding plus the limited tax bonds proposed to be issued.
For purposes of determining the principal amount of limited tax bonds
outstanding, limited tax bonds shall be assumed to be paid at par
either at their respective maturities or pursuant to mandatory
sinking fund installments with respect thereto. For purposes of
determining the aggregate interest payable with respect to any issue
of limited tax bonds, bonds that bear interest at variable interest
rates shall be assumed to bear interest for the terms thereof equal
to the interest rate in effect on the date the bonds are issued or,
in the case of limited tax bonds already outstanding, equal to the
interest rate in effect on the date that the determination is made.
For purposes of determining the estimated proceeds of the retail
transactions and use tax for a period of 30 years, a finding made by
the commission, incidental to any prospective issuance of bonds,
regarding the amount of the estimated proceeds shall be binding and
conclusive for all purposes.
   (c) The pledge of retail transactions and use taxes to the limited
tax bonds authorized under this article shall have priority over the
use of any of the funds for "pay-as-you-go" financing except to the
extent that priority is expressly restricted in the resolution
providing for the issuance of the bonds.

26298.32.  (a) Limited tax bonds shall be issued pursuant to a
resolution adopted at any time, and from time to time, by the
commission by a two-thirds vote of all members of the commission.
Each resolution shall provide for the issuance of bonds in amounts as
the necessity therefor may appear, until the full amount of the
bonds authorized shall 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.
   (b) A resolution providing for 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 the 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 exceed 31 years from the date
thereof or the date of each series thereof.
   (5) The maximum rate of interest to be paid, which shall not
exceed the maximum interest rate specified from time to time in
Section 53531 of the Government Code, without regard to any other
limitation.
   (6) The denomination or denominations of the bonds, which shall
not be less than five thousand dollars ($5,000).
   (7) A pledge of retail transactions and use taxes to the limited
tax bonds, either before or after giving effect to the payment of
maintenance and operations expenses as defined by the commission in
the resolution, and a statement that the bonds shall have priority
over the use of any of the funds for "pay-as-you-go" financing except
to the extent that the priority is expressly restricted in the
resolution. However, the resolution shall not provide for the pledge
of retail transactions and use taxes that have been allocated to the
county or any city therein pursuant to Section 26298.20, except to
the extent that the proceeds of any limited tax bonds are to be so
allocated in lieu of those retail transactions and use taxes.
   (8) 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 the whole or any part of the principal
shall become due and payable.
   (c) The resolution may also contain any other matters authorized
by this article or any other law.

26298.34.  (a) The commission may provide for the bonds to bear
interest at 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.
   (b) In the resolution or resolutions providing for the issuance of
the bonds, the commission may also provide for call and redemption
of the bonds prior to maturity at times and prices and upon other
terms as it may specify. However, no bond shall be 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 thereon.
   (c) 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 county or at such other place or places as may be designated, or
at either place or places at the option of the holders of the bonds.
   (d) 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 and the treasurer, or other officer of
the commission performing the duties of a treasurer, of the
commission, and the official seal of the commission shall be attached
thereto. The interest coupons, if any, of the bonds shall be signed
by the treasurer, or other officer performing the duties of a
treasurer, of the commission. All of the signatures and seal may be
printed, lithographed, or mechanically reproduced. However, the bonds
shall be valid or become obligatory for any purpose until manually
signed by an authenticating agent duly appointed by the commission or
its authorized designee. If any officer whose signature appears on
bonds or coupons ceases to be such an officer before the delivery of
the bonds, the officer's signature is as effective as if the officer
had remained in office.

26298.36.  The bonds may be sold as the commission determines by
resolution. The commission may sell the bonds at a price below par,
but the discount on any bonds so sold shall not exceed 5 percent of
the par value thereof.

26298.38.  Delivery of any bonds issued pursuant to this chapter may
be made at any place either inside or outside the state, and the
purchase price may be received in cash or bank credits.

26298.40.  All accrued interest and premiums received on the sale of
bonds shall be placed in the fund to be used for the payment of
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 and applied to secure the bonds or for the purposes for
which the debt was incurred. However, when those purposes have been
accomplished, any moneys 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
outstanding bonds of the commission from time to time in the open
market at those prices and in that manner, either at public or
private sale or otherwise, as the commission may determine. Bonds so
purchased shall be canceled immediately.

26298.42.  (a) The commission may provide for the issuance, sale, or
exchange of refunding bonds to redeem or retire any bonds issued by
the commission upon the terms, at the times and in the manner which
it determines.
   (b) The proceeds of any bonds issued for the purpose of refunding
outstanding bonds may, in the discretion of the commission, be
applied to the purchase or retirement at maturity or redemption of
outstanding bonds either on their earliest or any subsequent
redemption date or upon the purchase or retirement at the maturity
thereof and may, pending that application, be placed in escrow to be
applied to the purchase or retirement at maturity or redemption on
the date as may be determined by the commission.
   (c) Pending that use, the escrowed proceeds may be invested and
reinvested by the commission or its trustee in obligations of, or
guaranteed by, the United States of America, or in certificates of
deposit or time deposits secured by obligations of, or guaranteed by,
the United States of America, maturing at a time or times
appropriate to ensure the prompt payment of principal, interest, and
redemption premium, if any, of the outstanding bonds to be so
refunded. The interest, income, and profits, if any, earned or
realized on the investment may also be applied to the payment of the
outstanding bonds to be so refunded. After the terms of the escrow
have been fully satisfied and carried out, any balance of the
proceeds and interest, income, and profits, if any, earned or
realized on the investment thereof may be returned to the commission
for use by it in any lawful manner.
   (d) The provisions of this article for the issuance and sale of
bonds apply to the issuance and sale of refunding bonds.

26298.44.  (a) The commission may borrow money in anticipation of
the sale of bonds which have been authorized pursuant to this
article, but which have not been sold and delivered, and may issue
negotiable bond anticipation notes therefor and may renew the bond
anticipation notes from time to time, but 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 moneys of the commission available therefor, including
the revenues from the retail transactions and use taxes imposed
pursuant to this article. 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 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 bonds which the commission has
been authorized to issue, less the amount of any bonds of the
authorized issued 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 resolution or resolution
authorizing them may contain provisions, conditions, or limitations
which a resolution of the commission authorizing the issuance of
bonds may contain.

26298.46.  Any bonds issued under provisions of this article shall
be legal investment for all trust funds, for the funds of insurance
companies, commercial and 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, cities and
counties, counties, school districts, or other districts within the
state, those moneys or funds may be invested in the bonds issued
under this article. Whenever bonds of cities, cities and counties,
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 moneys, the bonds
issued under this article may be so used. This article shall be in
addition to all other laws relating to legal investments and shall be
controlling as the latest expression of the Legislature with respect
thereto.

26298.48.  Notwithstanding any other provision of law:
   (a) The commission and its revenues are exempt from all taxes on,
or measured by, income.
   (b) Bonds issued by the commission are exempt from all property
taxation, and the interest on the bonds is exempt from all taxes on
income.
   (c) All property owned by the commission is exempt from property
taxes, assessments, and other public charges secured by liens.

26298.50.  (a) Bonds issued under this chapter do not constitute a
debt or liability of the state or of any other public agency, other
than the commission, or a pledge of the faith and credit of the state
or of any other public agency, other than the commission, but shall
be payable solely from the funds provided therefor. All the bonds
shall contain on the face thereof a statement to the following
effect:
   "Neither the faith and credit nor the taxing power of the State of
California or any public agency, other than the Orange County
Regional Justice Facilities Commission, is pledged to the payment of
the principal of, or interest on, this bond."
   (b) The issuance of bonds under this chapter does not in any
manner obligate the state or any other public agency thereof to levy,
or to pledge any form of, taxation therefor or to make any
appropriation for their payment.

26298.52.  Neither the members of the board of directors of the
commission, nor any person executing the bonds, are liable personally
on the bonds, or are subject to any personal liability or
accountability by reason of the issuance thereof.

26298.54.  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,
and 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 and the retail transactions and use tax
provided for therein, shall be held to be valid and in every respect
legal and incontestable.

26298.56.  The county and each city within the county are authorized
to contribute to the commission such amounts as the county and each
city, in their discretion, deem appropriate. These amounts may be
used by the commission for any lawful purpose. The commission may
commit to repay any portion or all of the amounts contributed,
together with interest thereon at a rate not exceeding the interest
rate specified from time to time in Section 53531 or the Government
Code, from any lawful source, including, but not limited to, revenues
derived from the retail transactions and use tax ordinance adopted
pursuant to this chapter.

26298.58.  If any provision of this chapter or the application
thereof to any person or circumstance is held invalid, the invalidity
shall not affect other provisions or applications of this chapter
which can be given effect without the invalid provision or
application, and to this end the provisions of this chapter are
severable.