2009 California Government Code - Section 29900-29930 :: Article 1. General

29900.  Any county may issue funding or refunding bonds pursuant to
this chapter for the following purposes:
   (a) To refund any outstanding county indebtedness, evidenced by
bonds or warrants.
   (b) For any purposes for which the board of supervisors is
authorized to expend the funds of the county.
   (c) For the purpose of building or constructing roads, bridges, or
highways.

29900.5.  (a) A county may also issue bonds pursuant to this chapter
for the purpose of seismic strengthening of unreinforced buildings
and other buildings. Proceeds of bonds authorized pursuant to this
section may be used to make loans to public entities or owners of
private buildings. Loans shall satisfy all of the following:
   (1) Any loan used to finance seismic strengthening of a
residential structure containing units rented by households specified
in Section 50079.5 of the Health and Safety Code before
strengthening shall be subject to a regulatory agreement which will
ensure that the number of those units in the structure will not be
reduced and will remain available at affordable rents pursuant to
Section 50053 of the Health and Safety Code as long as any portion of
the loan is unpaid.
   (2) All seismic strengthening financed with any loan funded
pursuant to this section shall be in accordance with a plan developed
for the structure by a registered civil engineer or a licensed
architect, or approved by a county building official, one of whom
shall certify that the work funded is necessary for seismic safety
reasons, or is otherwise legally required for completion of the work
or occupancy of the building. In no event shall any loan funded
pursuant to this section finance the destruction of any existing
building or the construction of any new building.
   (3) Any amount received in payment of interest on or to repay
principal on any loan made pursuant to this section shall be used to
pay debt service on bonds authorized pursuant to this section, or
shall be used to fund additional loans for seismic strengthening,
except that the provisions of this paragraph shall not apply after
the bonds, including any bonds issued to refund the bonds, are fully
repaid.
   (4) Loans made pursuant to this section shall constitute liens in
favor of the county when recorded by the county recorder of the
county in which the real property is located. The lien shall contain
the legal description of the real property, the assessor's parcel
number, and the name of the owner of record as shown on the latest
equalized assessment roll.
   (5) The board of supervisors may specify the interest rate, term,
and other provisions of any loan made pursuant to this section.
   (6) A county may issue bonds and make loans pursuant to this
section only if the county has completed an inventory of unreinforced
masonry structures within its jurisdiction and has adopted a
mitigation ordinance pursuant to Section 8875.2 or Section 19163 of
the Health and Safety Code. The county shall establish criteria,
terms, and conditions to identify eligible buildings.
   (b) The board of supervisors is authorized to expend the proceeds
of bonds authorized by this section to make loans pursuant to this
section. The board of supervisors shall declare in the bond
proposition that loans made from bond proceeds pursuant to this
section to owners of private buildings for seismic strengthening of
unreinforced buildings or other buildings constitute a public purpose
resulting in a public benefit. Loans made pursuant to this section
shall not be construed to be gifts of public funds in violation of
Section 6 of Article XVI of the California Constitution.
   (c) Work on qualified historical buildings or structures shall be
done in accordance with the State Historical Building Code (Part 2.7
(commencing with Section 18950) of Division 13 of the Health and
Safety Code).
   (d) The Legislature hereby declares that loans made from bond
proceeds pursuant to this section to owners of private buildings for
seismic strengthening of unreinforced buildings or other buildings
constitute a public purpose resulting in a public benefit.

29901.  The board of supervisors shall adopt an order calling and
providing for a bond election, which order shall state:
   (a) The purpose or purposes for which the indebtedness is to be
incurred.
   (b) The amount of bonds proposed to be issued.
   (c) The maximum rate of interest.
   (d) The date of the election.
   (e) The manner of holding the election and the procedure for
voting for or against the proposition.

29901.5.  All or any part of the proceeds of the bonds may be
contributed or paid to any agency, board, commission or entity
constituted or provided for by agreement under or pursuant to Article
1, Chapter 5, Division 7, Title 1 of the Government Code, if the
board of supervisors shall find that such contribution will
effectuate a purpose stated in the bond proposition and will be in
aid of a purpose which will materially benefit and serve the general
county interest and that the public interest, convenience, and
neccessity of the county as a whole requires the contribution to be
made by the county.

29902.  The board of supervisors shall provide for submitting the
question of the issuance of the bonds to the qualified electors of
the county at the next general election or at a special election to
be called by it for that purpose.

29903.  The words "Bonds--Yes," and "Bonds--No," or words of similar
import shall appear on the ballot adjacent to each bond proposition.

29904.  Several separate propositions may be submitted at the same
election, and any single proposition may include one or more
purposes.

29905.  A special election may be held as provided in this article.
Only qualified voters of the county may vote. The election shall be
held as nearly as practicable in conformity with the general election
law of the State. The board of supervisors may form bond election
precincts by adopting the precincts established for general election
purposes or by consolidating precincts inside of cities and towns, to
a number not exceeding six in each bond election precinct, and shall
appoint only one inspector, two judges, and one clerk for each bond
election precinct.

29906.  The order calling and providing for a bond election shall be
published in one or more newspapers published in the county once a
week for at least four weeks. If no newspaper is published in the
county, copies of the order shall be conspicuously posted in five
public places in the county at least 14 days before the election. No
other notice of such election need be given.

29907.5.  Article 3 (commencing with Section 9160) of Chapter 2 of
Division 9 of the Elections Code, relating to arguments concerning
county measures, are applicable to this chapter.

29908.  If two-thirds of the electors voting on a proposition vote
in favor of it, the bonds in an amount not exceeding that specified
in said proposition may be issued. When two or more propositions are
submitted at the same election, the votes cast for and against each
proposition shall be separately counted.

29909.  The total amount of bonded indebtedness shall not at any
time exceed 5 percent of the taxable property of the county as shown
by the last equalized assessment roll. If water conservation, flood
control, irrigation, reclamation, or drainage works, improvements, or
purposes, or the construction of select county roads is included in
any proposition submitted, the total amount of bonded indebtedness
may exceed 5 percent but shall not exceed 15 percent of the taxable
property of the county as shown by the last equalized assessment
roll.

29910.  If the issuance of the bonds is authorized at said election,
the board may thereafter adopt a resolution or resolutions providing
for the issuance of all or any part of the bonds authorized at said
election. Said resolution shall prescribe the form of the bond and
attached interest coupons, and fix the time or times of maturity of
the bonds.

29910.1.  The board may divide the principal amount of any issue
into two or more series and fix different dates for the bonds of each
series. The bonds of one series may be made payable at different
times from those of any other series; provided, that the earliest
maturity of each issue or series, as the case may be, shall not be
more than two years from the date of the bonds of said issue or
series. The final maturity date of any bond shall not exceed 40 years
from the date of the bond. Every year beginning with the date of the
earliest maturity of each issue or series of bonds, as the case may
be, not less than one-fortieth of the whole of the indebtedness
evidenced by such issue or such series shall be payable; provided,
however, the bonds of any issue or series irrespective of the purpose
for which the same are to be issued may be made to mature and become
payable in approximately equal total annual installments of interest
and principal, during the term of the bonds computed from the first
year in which any part of the principal shall mature to the date of
final maturity which annual installments may vary one from another in
amounts not exceeding in any year more than 5 percent of the total
principal amount of the bonds of such issue or of the series thereof
then proposed to be issued.

29910.2.  When the issuance of bonds shall have been authorized
pursuant to two or more propositions submitted at the same or
different elections, all or any part of said bonds not theretofore
issued may be combined and issued and sold as a single issue or
series.

29911.  In the resolution providing for the issuance of the bonds,
the board may provide for the call and redemption of all or any part
of the bonds on any interest payment date prior to their fixed
maturity, at their par value plus a specified premium, if any, and
accrued interest. The bonds to be called for redemption prior to
maturity shall be selected in such manner as the board may provide in
said resolution. If a bond is subject to call and redemption a
statement to that effect shall be set forth on the face of the bond.

29912.  Notice of redemption shall be published at such time and in
such manner as the board may provide in the resolution providing for
the issuance of the bonds.

29913.  If funds are made available for the payment of the
principal, interest, and premium on the bonds called, the interest on
the bonds shall cease after the date fixed for redemption.

29914.  The bonds may be issued in such denomination or
denominations as the board of supervisors may prescribe.

29915.  The principal and interest shall be payable in lawful money
of the United States, either at the treasury of the county or at such
place within the United States as the board designates, or both at
the treasury or the designated place at the option of the bondholder.

29916.  Interest on the bonds shall not exceed 8 percent per annum,
payable semiannually, except that interest for the first year after
the date of the bonds may be made payable at the end of said year.

29917.  (a) The bonds shall be signed by the chairperson of the
board of supervisors or by any other member thereof as the board of
supervisors shall, by resolution adopted by a four-fifths vote of all
its members, authorize and designate for that purpose, and also
signed by the treasurer of the county, and shall be countersigned by
the clerk thereof. All the signatures and countersignatures may be
printed, lithographed, engraved, or otherwise mechanically reproduced
except that one of the signatures or countersignatures to the bonds
shall be manually affixed. Any signature may be affixed in accordance
with the provisions of the Uniform Facsimile Signatures of Public
Officials Act, Chapter 6 (commencing with Section 5500) of Division 6
of Title 1 of the Government Code.
   (b) Notwithstanding subdivision (a), the board of supervisors may,
in its discretion, determine that all of the required signatures and
countersignatures shall be by facsimiles, provided however that the
bonds shall not be valid or become obligatory for any purpose until
manually signed by an authenticating agent duly appointed by the
board or its authorized designee.

29918.  The bonds shall be sold at the times, in the amounts, and in
the manner prescribed by the board, but for not less than par.

29919.  At its option the board may use the following form of bond:

  "No._ $__________________________________________
        _________

                             United States of America
                               County of ____
                             State of California

   The County of ____, State of California, hereby acknowledges
itself indebted and promises to pay the bearer hereof, on the ____
day of ____, one thousand nine hundred ____ (here insert the date of
maturity), the sum of ____ dollars in lawful money of the United
States, with interest thereon in like lawful money, at the rate of
____ percent a year, payable at ____ semiannually (or annually) on
the first day of ____, and ____ (or on the first day of ____ if
interest payable annually), on presentation and surrender of the
interest coupon hereto attached.
   (Here insert provision for call and redemption if board elects to
make bonds callable.)
   This bond is issued by the board of supervisors of the County of
____, State of California, in strict compliance with Article 1,
Chapter 6, Division 3, Title 3, of the Government Code of the State
of California, and in pursuance of an order of the board duly made on
the ____ day of ____, 19_, and with the assent of two-thirds of the
qualified electors of the county voting at an election legally called
and duly held for that purpose on the ____ day of ____, 19_.
   And it is hereby certified and recited that the bonded
indebtedness of this county, including this bond, does not exceed
____ percent of the taxable property thereof, as shown by the last
equalized assessment roll of the county, and that provision has been
made for the collection of an annual tax sufficient to pay the
interest on this indebtedness as it falls due and to constitute a
sinking fund for the payment of the indebtedness at or before
maturity.
   In witness whereof, the county, by its board of supervisors, has
caused this bond to be signed by the chairman of the board of
supervisors, and attested by the county auditor, and the seal of the
board of supervisors to be hereto attached, this ____ day of ____,
19_.

                                   _______________
                 Chairman of board of supervisors.
  Attest:_______________________, County Auditor."

29920.  The interest coupon may be in the following form:

   "The County of ____, State of California, hereby promises to pay
to the holder hereof, on the ____ day of ____, 19_, at ____ in ____,
$____ in lawful money of the United States, for interest on its
county bond, No. ____.

  ____________,       ____________, County Auditor."

29921.  All premiums and accrued interest received 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 to the credit of the proper improvement fund
and applied exclusively to the purpose and object recited in the
proposition; provided, however, that when said purpose and object
have been accomplished any moneys remaining in such improvement fund
shall be transferred to the fund to be used for the payment of
principal of and interest on the bonds. When such purpose and object
have been accomplished and all principal and interest on the bonds
have been paid, any balance of money then remaining shall be
transferred to the General Fund.

29922.  At the time of making the next general tax levy after
incurring the bonded indebtedness, and annually thereafter until all
of the bonds are paid or until there is a sum in the treasury set
apart for that purpose sufficient to meet all principal and interest
on the bonds, the board shall levy a tax for that year upon the
taxable property of the county for the interest and redemption of the
bonds.

29923.  The tax for interest and redemption of bonds shall be in
addition to all other taxes, and shall not be less than sufficient to
pay the interest on the bonds and such portion of the principal, if
any, as is to become due before the time for making the next general
tax levy. It shall also be sufficient to constitute a sinking fund
for the payment of the principal of the bonds on or before maturity.
The board shall provide for the levy of an annual tax sufficient to
effect the objects of this section either in the resolution providing
for the issuance of the bonds or in an ordinance adopted before or
at the time of issuing the bonds.

29924.  When collected the tax shall be paid into the treasury of
the county and used solely to pay the interest and principal of the
bonds as they become due.

29924.5.  (a) Prior to the issuance by a county of bonds pursuant to
this chapter, the board may elect, by resolution, to guarantee
payment on outstanding bonds of the county issued pursuant to this
chapter in accordance with the following:
   (1) A county that elects to participate under this section shall
provide notice to the Controller of that election, which notice shall
include a schedule for the repayment of principal and interest on
the bonds, and identify a bond trustee appointed by the county for
the purposes of this section.
   (2) In the event that, for any reason, the amount of property tax
revenues made available pursuant to this article for the payment of
principal and interest of the bonds will not be sufficient for that
purpose at the time payment on principal, interest, or both, is
required as to any one or more of those bonds, the county shall so
notify the bond trustee. The bond trustee shall immediately
communicate that information to the affected bondholder or
bondholders and to the Controller.
   (3) When the Controller receives notice from the trustee as
described in paragraph (2), or the amount of property tax revenues
made available pursuant to this article for the payment of principal
and interest of the bonds is not sufficient for that purpose at the
time payment on principal, interest, or both, is required as to any
one or more of those bonds, the Controller shall make an
apportionment to the bond trustee in the amount of that required
payment for the purpose of making that payment. The Controller shall
make that payment only from moneys credited to the Motor Vehicle
License Fee Account in the Transportation Tax Fund to which that
county is entitled at that time under Chapter 5 (commencing with
Section 11001) of Part 5 of Division 2 of the Revenue and Taxation
Code, and shall thereupon reduce, by the amount of the payment, the
subsequent allocation or allocations to which the county would
otherwise be entitled under that chapter.
   (4) A county shall be entitled to reimbursement, from tax revenues
collected pursuant to this article, in an amount equal to the amount
by which its allocation or allocations under Chapter 5 (commencing
with Section 11001) of Part 5 of Division 2 of the Revenue and
Taxation Code are reduced pursuant to subdivision (c).
   (b) This section shall not be construed to obligate the State of
California to make any payment to a county from the Motor Vehicle
License Fee Account in the Transportation Tax Fund in any amount or
pursuant to any particular allocation formula, or to make any other
payment to a county, including, but not limited to, any payment in
satisfaction of any debt or liability incurred or guaranteed by a
county in accordance with this section.

29925.  If the board fails to make the levy necessary to pay the
bond or interest coupons at maturity and any bond or interest coupon
is presented to the treasurer and payment is refused, the owner may
file the bond, together with all unpaid coupons, with the State
Controller, taking his receipt therefor. The bonds shall be
registered in the State Controller's office and the State Board of
Equalization shall, at its next session and at each annual
equalization thereafter, add to the state tax to be levied in the
county a sufficient rate to realize the amount of principal or
interest past due and to become due prior to the next levy.

29926.  The tax shall be levied and collected as a part of the state
tax and paid into the State Treasury and passed to the special
credit of the county as a bond tax.

29927.  The payments shall be made, as they mature, by warrants to
the holder of the registered obligations, as shown by the register in
the office of the State Controller, until the obligations are fully
satisfied and discharged, and any balance then remaining shall be
passed to the general account and credit of the county.

29928.  If any officer whose signature, counter-signature, or
attestation appears on any county bond or coupon ceases to be such
officer before the delivery of the bonds to the purchasers, the
signature, counter-signature, or attestation appearing either on the
bonds or the coupons, or on both, is valid and sufficient for all
purposes to the same extent as if the officer had remained in the
office until the delivery of the bonds. The signature upon the
coupons of the person who is auditor or treasurer at the date of the
bonds is valid although the bonds themselves are attested by a
different person who is auditor or treasurer at the time of their
delivery.

29929.  The board may contract a bonded indebtedness for county
purposes only as provided in this chapter.

29930.  When the board of supervisors deems it in the best interests
of the county, it may authorize the county treasurer, upon such
terms and conditions as may be fixed by the board of supervisors, to
issue notes, on a competitive-bid basis, maturing within a period not
to exceed one year, in anticipation of the sale of bonds duly
authorized at the time such notes are issued. The proceeds from the
sale of such notes shall be used only for the purposes for which may
be used the proceeds of the sale of bonds in anticipation whereof the
notes were issued.
   All notes issued and any renewal thereof shall be payable at a
fixed time, solely from the proceeds of the sale of the bonds and not
otherwise, except that in the event that the sale of the bonds shall
not have occurred prior to the maturity of the notes issued in
anticipation of the sale, the county treasurer shall, in order to
meet the notes then maturing, issue renewal notes for such purpose.
No renewal of a note shall be issued after the sale of bonds in
anticipation of which the original note was issued. There shall be
only one renewal of such note or notes.
   Every note and any renewal thereof shall be payable from the
proceeds of the sale of bonds and not otherwise. The total amount of
such notes or renewals thereof issued and outstanding shall at no
time exceed the total amount of the unsold bonds.
   Interest on the notes shall be payable from proceeds of the sale
of bonds.