SECTIONS 14060-14066 - California Statutes

GOVERNMENT CODE

SECTION 14060-14066

14060. The following definitions apply to this article:
(a) "Equipment" means rail passenger cars, locomotives, other rail
vehicles, bus and van fleets, and ferryboats.
(b) "Equipment obligations" means notes, equipment trust
certificates, or other obligations, including grant anticipation
notes, issued by the department pursuant to this article to finance
the acquisition of equipment.
(c) "Grant anticipation notes" means notes issued by the
department in anticipation of the receipt of funds from the federal
or a local government as the proceeds of grants or participation
funding for which funds have been appropriated and committed to the
department for equipment acquisition.
(d) "Passenger rail capital improvements" includes, but is not
limited to, crossings, stations, parking facilities, trackwork,
maintenance facilities, and other similar facilities.

14061. The department may take all action necessary to purchase,
sell, or lease equipment by negotiation without competitive bidding
to take advantage of Section 168 of Title 26 of the United States
Code in connection with the sale and leasing of equipment.
As required, the department may negotiate indemnification with the
equipment depreciation purchasers as required by market conditions.
Neither the sale nor the lease of equipment pursuant to this section
constitutes a sale or purchase for the purposes of the Sales and Use
Tax Law (Part 1 (commencing with Section 6001) of Division 2 of the
Revenue and Taxation Code).
Contracts for the services of financial agents, negotiators, bond
counsel, and for the sales or purchases of these obligations or
benefits are not subject to Chapter 6 (commencing with Section 14780)
of Part 5.5.

14062. (a) The department may issue equipment obligations to
finance the acquisition of equipment pursuant to a resolution adopted
by the commission, authorizing the issuance thereof from time to
time as provided in the resolution.
(b) A resolution authorizing the issuance of equipment obligations
shall specify any provisions or conditions as to the form,
execution, and terms of the obligations that the commission may deem
appropriate, subject to this article.
(c) Equipment obligations shall be payable at any time or times
that the commission may determine, but not later than five years
after the date of their issuance. Equipment obligations shall bear
interest at any rate or rates that the commission may determine, but
not exceeding 12 percent per annum, payable at any times that the
commission may specify in the resolution authorizing their issuance.
(d) Equipment obligations may be made subject to redemption prior
to their maturity, at the option of the commission, at any price or
prices that may be fixed in the resolution, not exceeding a premium
of 5 percent of the par value of any obligation subject to
redemption.

14063. (a) Grant anticipation notes shall be issued only in
anticipation of a grant or funding commitment to the department which
has been stated by the granting authority or agency to be
contracted, committed, or appropriated and payable on a specified
date or dates or upon the happening of a specified event or events.
The amount of grant anticipation notes outstanding at any time shall
not exceed 75 percent of the grant or funding.
(b) The proceeds of the grant shall be pledged to the payment of
the grant anticipation notes, and the interest thereon. The notes,
and the interest thereon, shall be a first lien upon the proceeds.
(c) Grant anticipation notes and the interest thereon shall be
payable from the proceeds of the grant or funding in anticipation of
which the notes are issued, from the Passenger Equipment Acquisition
Fund, or from any other funds lawfully available therefor.

14064. (a) Equipment obligations shall be sold by the Treasurer,
after a resolution requesting the sale has been adopted by the
commission. Equipment obligations may be sold by public bid or by a
private negotiated sale. The Treasurer may sell equipment obligations
at a discount not to exceed 5 percent of the par value thereof.
(b) Equipment obligations, and the interest thereon, are exempt
from taxation in this state, except for gift taxes.

14066. (a) The Passenger Equipment Acquisition Fund is hereby
created in the State Treasury. Notwithstanding Section 13340, all
moneys in the fund are continuously appropriated to the department to
pay the principal of, interest on, and redemption premium, if any,
on equipment obligations, to pay all costs of issuance and sale of
equipment obligations, to purchase new and rehabilitate existing
equipment, and for passenger rail capital improvements.
(b) The net proceeds derived from the sale and leaseback of
equipment made pursuant to this article shall be deposited in the
fund.