SECTIONS 13371-13379 - California Statutes

PUBLIC UTILITIES CODE

SECTION 13371-13379

13371. A district may borrow money and incur indebtedness for the
purposes of this chapter by the issuance of bonds, notes or other
evidences of indebtedness by a majority vote of its board of
directors and without the necessity of calling and holding an
election in the district. Such evidences of indebtedness shall
constitute general obligations of the district or shall be payable
solely from the revenues of the district as the board may determine
in the resolution authorizing their issuance; provided, that if the
board determines that the evidences of indebtedness shall constitute
general obligations of the district, their issuance shall be approved
by a four-fifths vote of the board. Such indebtedness may be
incurred for any of the following purposes:
(a) The purchase, processing, storage, and disposal of fuel to be
used for the generation and transmission of electricity, of materials
to be used in the manufacture of such fuel, and of the products of
such fuel, the purchase of real property and manufacturing and
processing facilities from which such fuel or materials may be
obtained, or interests therein.
(b) The planning, design, engineering, and licensing of facilities
for the generation or transmission of electricity, and the
preparation of sites and the purchase of equipment for such
facilities.
(c) The planning, design, engineering, acquisition, or
construction of facilities for the storage, transmission, or
distribution of water.
(d) The planning, design, engineering, acquisition, or
construction of facilities for the storage, transmission, or
treatment of sewage or byproducts of sewage treatment.
(e) The replacement of works of the district that have been
damaged or demolished by reason of fire, flood, earthquake, sabotage,
or acts of God or the public enemy.
(f) Any expenses or charges incurred in connecton with the
foregoing purposes, and to reimburse the district for expenditures
incurred for any of such purposes.
The indebtedness incurred under this chapter shall be evidenced by
bonds, notes or other evidences of indebtedness maturing in not to
exceed seven years from their date, shall not result in interest
costs exceeding such limits as may be fixed by the board, and may be
sold either by public or by private sale. All other terms and
conditions of such evidences of indebtedness shall be fixed by the
board. The district may arrange for bank credit for the purposes of
this section or to provide an additional source of repayment for
indebtedness incurred under this chapter. The maximum principal
amount of all indebtedness outstanding under this article, including
the amounts drawn on available bank lines of credit, shall not at any
one time exceed the lesser of either (1) the annual average of the
total revenue for the three preceding years or (2) 25 percent of the
district's total outstanding bonds issued pursuant to Chapter 6
(commencing with Section 12701), Chapter 7 (commencing with Section
13201), and Chapter 8 (commencing with Section 13451).
The authority contained in this chapter shall be in addition to
the authority contained in Chapter 6 (commencing with Section 12701),
Chapter 7 (commencing with Section 13201), and Chapter 8 (commencing
with Section 13451), and any indebtedness incurred pursuant to this
chapter shall not be included in ascertaining the aggregate
indebtedness permitted by Section 12842.

13372. The district may issue refunding bonds, notes, or other
evidences of indebtedness for the purpose of paying and redeeming at
or before maturity any bonds, notes, or other evidences of
indebtedness issued under this chapter, provided that such refunding
bonds, notes, or other evidences of indebtedness shall not be in
excess of the limitation of indebtedness authorized under this
chapter and shall mature in not to exceed seven years from the date
of the original indebtedness. Such refunding bonds, notes, or other
evidences of indebtedness may in turn be refunded under like terms
and conditions, provided that in no event shall such refunding notes
mature in excess of seven years from the date of the original
indebtedness.

13373. General obligation indebtedness issued pursuant to this
chapter shall be payable from any sources of available funds,
including revenues or taxes. The board is hereby authorized to levy
and collect taxes upon all property in the district subject to
taxation by the district without limitation of rate or amount for the
payment of the evidences of such general obligation indebtedness and
the interest thereon. Such taxes shall be in addition to all other
taxes levied for district purposes and shall be levied at the same
time and in the same manner as other district taxes are levied and
when collected shall be deposited in a special fund and shall be used
for no purpose other than the payment of the principal of and
interest on such general obligation indebtedness.

13374. This chapter applies only to districts which have owned and
operated an electric distribution system or electric generating
facilities or a water distribution or sewage disposal system for at
least eight years and which contain a population of 250,000 or more.

13375. As used in this chapter, the term "revenues of the district"
shall have the same meaning as is provided in Section 54315 of the
Government Code.

13376. When bonds are issued under this article, the preliminary
resolution of the board adopted pursuant to this article shall take
effect upon its adoption by the board subject to the right of
referendum provided for in this article. Successive issues of bonds
may be authorized under this article from time to time and the
authority herein contained shall not be limited to any particular
issue.

13377. Whenever a resolution authorizes the issuance of bonds
pursuant to Section 13371, the board shall cause the resolution to be
published in the manner provided for the publication of notices. At
any time within 60 days after the date of the second such publication
a referendum petition, signed by voters in number equal to at least
3 percent of the total vote cast, as defined in Section 11507,
demanding the submission of such resolution to a vote of the voters
of the district for their assent to the issuance of the proposed
bonds, may be filed with the secretary. Upon presentation to the
secretary of a petition meeting the requirements of this section, the
resolution which is the subject thereof shall be of no effect unless
and until it has been approved by the voters.

13378. If no such referendum petition is presented within the
period of 60 days, then upon the expiration of such period, or if the
proposition of issuing the bonds specified in the resolution of the
board adopted pursuant to this article has been assented to by a
majority of the voters voting on the proposition, whether upon
referendum or pursuant to Section 13379, then upon such proposition
having been so assented to, the resolution shall take full and final
effect, and the board may proceed in accordance with the provisions
of this article and issue bonds within the terms of the resolution.

13379. The board at any time may, and upon the filing of a
referendum petition as provided in Section 13377 shall, adopt a
resolution calling a special election for the purpose of submitting
to the voters of the district the proposition of issuing revenue
bonds in conformity with the preliminary resolution adopted pursuant
to this article. The resolution calling the election shall fix the
date on which the election is to be held, the proposition to be
submitted thereat, the manner of holding the election and of voting
for or against the proposition, and shall state that in all other
particulars the election shall be held and the votes canvassed as
provided by law for the holding of elections within the district.
Such election may be held separately or may be consolidated with any
other election authorized by law at which the voters of the district
may vote. The resolution calling the election shall be published and
no other notice of the election need be given. The votes of a
majority of all the voters voting on the proposition at the election
are required to authorize the issuance of bonds pursuant to Section
13371.