2009 California Public Utilities Code - Section 150200-150214 :: Chapter 5. Transactions And Use Tax

150200.  The Legislature, by the enactment of this chapter, intends
the additional funds provided government agencies by this chapter to
supplement existing local revenues being used for public
transportation purposes. The government agencies are further
encouraged to maintain their existing commitment of local funds for
public transportation purposes.

150201.  A retail transactions and use tax ordinance shall be
imposed by the authority in accordance with Section 150206 and Part
1.6 (commencing with Section 7251) of Division 2 of the Revenue and
Taxation Code, if a majority of the electors voting on the measure
vote to approve its imposition at special elections called for that
purpose by the county and city, respectively. Those elections shall
be consolidated. The ordinances shall take effect at the close of the
polls on the day of election at which the measures are adopted, to
impose the tax at the same rate.
   The initial collection of the retail transactions and use tax
shall take place in accordance with Section 150204.
   If, at any time, the voters do not approve an ordinance imposing
the retail transactions and use tax, the same or a different measure
imposing that tax may, at any time thereafter, be submitted to the
voters.

150202.  The retail transactions and use tax ordinance shall state
the nature of the tax to be imposed, the tax rate or the maximum tax
rate, the purposes for which the revenue derived from the tax will be
used, and may set a term, not to exceed 15 years, during which the
tax will be imposed. The purposes for which the tax revenues will be
used may include, but are not limited to, the administration of this
division, including legal actions related thereto, the construction,
capital acquisition, maintenance, and operation of streets, roads,
and highways, including state highways. These purposes include
expenditures for the planning, environmental reviews, engineering and
design costs, and related right-of-way acquisition. The ordinance
shall reference an expenditure plan which shall include the
allocation of revenues for the purposes authorized by this section.

150203.  (a) The county shall conduct the elections called pursuant
to Section 150201.
   (b) The elections shall be called and conducted in the same manner
as provided by law for the conduct of elections by a county.

150204.  (a) Any retail transactions and use tax ordinance adopted
pursuant to this chapter shall be operative on the first day of the
first calendar quarter commencing more than 120 days after adoption
of the ordinance.
   (b) An increase in the tax rate, adopted by the electors' approval
of an ordinance pursuant to subdivision (b) of Section 150206, or a
decrease in the tax rate adopted by the authority pursuant to Section
150207, shall be operative on the first day of the first calendar
quarter commencing more than 120 days after approval by the electors
or adoption by the authority, as the case may be.
   (c) Prior to the operative date of the ordinance, the authority
shall contract with the State Board of Equalization to perform all
functions incident to the administration and operation of the
ordinance.

150205.  (a) Revenues from the retail transactions and use tax
imposed pursuant to this chapter shall be allocated by the authority
for public transportation purposes consistent with the expenditure
plan referenced in the ordinance imposing the tax. The authority, by
a four-fifths vote of its members, may revise that expenditure plan
after conducting noticed public hearings on the proposed revision.
   (b) The amounts allocated to projects within the county and the
city, respectively, shall be proportionate to the revenues derived
from the tax collected within each of the respective jurisdictions.

150206.  (a) The authority, subject to the approval of the voters,
may impose a maximum tax rate of 1 percent under this division and
Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue
and Taxation Code, and the authority may state the maximum tax rate
at 1 percent or one-half of 1 percent. The authority shall not levy
the retail transactions and use tax at a rate other than 1 percent or
one-half of 1 percent, unless specifically authorized by the
Legislature.
   (b) The tax rate adopted pursuant to this chapter, unless
otherwise prohibited, may be increased by the authority by ordinance
adopted in the manner and by the vote stated in Sections 150201 and
approved by a majority of the electors voting on the measure at an
election called for that purpose.

150207.  The authority may reduce the tax rate to a percentage lower
than that approved by the voters and may further provide for an
increase of the tax rate if it has previously been lowered. However,
the tax rate may not be increased to a rate above the tax rate
approved by the voters.
   Any revised tax rate may be adopted only if the authority
determines, by a four-fifths vote of its members, that the proceeds
of the taxes with the altered tax rate will be sufficient to provide
for the payment of the principal of, and interest on, any limited tax
bonds and any other indebtedness incurred by the authority which was
to be payable from the proceeds of the retail transactions and use
tax.

150208.  (a) A ballot proposition to approve an ordinance for the
imposition of a retail transactions and use tax, shall seek
authorization to issue bonds payable from the proceeds of the tax and
establish the appropriations limit of the authority.
   (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 tax for a period of not more than the number of years for
which the tax authorized by this chapter is to be imposed.

150209.  (a) The bonds authorized by the voters concurrently with
the approval of the retail transactions and use tax may be issued by
the authority 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 tax to the limited tax bonds authorized
under this chapter shall have priority over the use of any of the
taxes for "pay-as-you-go" financing, except to the extent that the
priority is expressly restricted in the resolution authorizing the
issuance of the bonds.

150210.  The authority may provide for the bonds to bear a variable
interest rate, for the manner and intervals in which the rate shall
vary, and for the dates on which the interest shall be payable.

150211.  Limited tax bonds shall be issued pursuant to a resolution
adopted at any time, and from time to time, by the authority by a
four-fifths vote of all of its members.
   The authority may, from time to time, issue bonds in accordance
with the Revenue Bond Law of 1941 (Chapter 6 (commencing with Section
54300) of Part 1 of Division 2 of Title 5 of the Government Code),
for the purposes set forth in the ordinance adopted pursuant to
Section 150202, which shall constitute an "enterprise" within the
meaning of Section 54309 of the Government Code. Article 3
(commencing with Section 54380) of Chapter 6 of Part 1 of Division 2
of Title 5 of the Government Code and the limitations on the rate of
interest set forth in subdivision (b) of Section 54402 of the
Government Code do not apply to the issuance of the sale of bonds
pursuant to this division. Instead, the authority shall authorize the
issuance of bonds by resolution, which shall specify all of the
following:
   (a) The purposes for which the bonds are to be issued.
   (b) The maximum principal amount of the bonds.
   (c) The maximum term for the bonds.
   (d) The maximum rate of interest to be payable upon the bonds
shall not exceed the maximum rate permitted by Section 53531 of the
Government Code or any other applicable provisions of law. In the
case of bonds bearing a variable interest rate, the variable rate
shall on no day exceed the maximum rate permitted on that day by
Section 53531 of the Government Code or any other applicable
provisions of law.
   (e) The maximum discount on the sale of the bonds. However, the
bonds shall not be sold at less than 95 percent of the principal
amount in the manner determined by the authority. Each resolution
shall provide for the issuance of bonds in the amounts as may be
necessary, until the full amount of the bonds authorized has been
issued. The full amount of bonds may be divided into two or more
series with different dates of payment fixed for the bonds of each
series. A bond need not mature on its anniversary date.

150212.  Any bonds issued pursuant to this chapter are a 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, counties, school
districts, or other districts within this state, that money or funds
may be invested in the bonds issued under this chapter, 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 chapter may be so
used. The provisions of this chapter are in addition to all other
laws relating to legal investment and shall be controlling as the
latest expression of the Legislature with respect thereto.

150213.  Any action or proceeding wherein the validity of the
adoption of the retail transactions and use tax ordinance provided
for in this chapter or the issuance of any bonds thereunder or any of
the proceedings in relation thereto is contested, questioned, or
denied, 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, shall be held to be valid and in every
respect legal and incontestable.

150214.  The commission may not impose any tax other than the retail
transactions and use tax imposed upon approval of the voters in
accordance with this division.