SECTIONS 30900-30913 - California Statutes

PUBLIC UTILITIES CODE

SECTION 30900-30913

30900. Whenever the board deems it necessary for the district to
incur a bonded indebtedness for the acquisition, construction,
development, joint development, maintenance, operation, or repair of
any or all improvements, works, property, or facilities, authorized
by this part or necessary for, incidental to, or convenient for the
carrying out of the powers of the district, or for any other purpose
authorized by this part, including, without limitation, the refunding
referred to in Chapter 8 (commencing with Section 31000), it shall,
by ordinance, adopted by a vote of two-thirds of all members of the
board, so declare and call an election to be held in the district for
the purpose of submitting to the qualified voters thereof the
proposition of incurring indebtedness by the issuance of bonds of the
district. The ordinance shall state all of the following:
(a) The purposes for which the proposed debt is to be incurred,
which may include all costs and estimated costs necessary or
convenient for, 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.
(b) The estimated cost of accomplishing those purposes.
(c) The amount of the principal of the indebtedness.
(d) The maximum term the bonds proposed to be issued shall run
before maturity, which shall not exceed 50 years from the date
thereof or the date of each series thereof.
(e) The maximum rate of interest to be paid, which shall not
exceed the maximum rate allowed by law.
(f) The proposition to be submitted to the voters, which may
include one or more purposes.
(g) The date of the election.
(h) The manner of holding the election and the procedure for
voting for or against the measure.
(i) The ordinance may also contain any other matters authorized by
this part or any other law.

30901. Notice of the holding of such election shall be given by
publishing, pursuant to Section 6066 of the Government Code, the
ordinance calling the election in at least one newspaper published in
such district. No other notice of such election need be given.
Except as otherwise provided in the ordinance, the election shall be
conducted as other district elections.

30902. If any proposition is defeated by the electors, the board
shall not call another election on a substantially similar
proposition to be held within six months after the prior election. If
a petition requesting submission of such a proposition, signed by 15
percent of the district electors, as shown by the votes cast for all
candidates for governor at the last gubernatorial election, is filed
with the board, it may call an election before the expiration of six
months.

30903. If 60 percent of the electors voting on the proposition vote
for it, then the board may, by resolution, at such time or times as
it deems proper, issue bonds of the district for the whole or any
part of the amount of the indebtedness so authorized and may from
time to time, by resolution, provide for the issuance of such amounts
as the necessity thereof may appear, until the full amount of such
bonds authorized shall have been issued. Said full amount of bonds
may be divided into two or more series and different dates and
different dates of payment fixed for the bonds of each series. A bond
need not mature on an anniversary of its date. The maximum term the
bonds of any series shall run before maturity shall not exceed 50
years from the date of each series respectively. In such resolution
or resolutions the board shall prescribe the form of the bonds
(including, without limitation, registered bonds and coupon bonds)
and the form of any coupons to be attached thereto, the registration,
conversion and exchange privileges, if any, pertaining thereto, and
fix the time when the whole or any part of the principal shall become
due and payable.

30904. The bonds shall bear interest at a rate or rates not
exceeding the maximum rate allowed by law, payable semiannually,
except that the first interest payable on the bonds or any series
thereof may be for any period not exceeding one year as determined by
the board. In the resolution or resolutions providing for the
issuance of the bonds, the board may also provide for call and
redemption of the bonds prior to maturity at the times and prices and
upon any 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. The denomination or denominations of the bonds shall
be stated in the resolution providing for their issuance, but shall
not be less than one thousand dollars ($1,000). 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 district or at
any other place or places as may be designated, or at either place or
places at the option of the holders of the bonds. The bonds shall be
dated, numbered consecutively, signed by the president and
treasurer, and countersigned by the secretary, and the official seal
of the district shall be attached. The interest coupons of the bonds
shall be signed by the treasurer. All the signatures,
countersignatures, and seal may be printed, lithographed, or
mechanically reproduced, except that one of the signatures or
countersignatures on the bonds shall be manually affixed. If any
officer whose signature or countersignature appears on bonds or
coupons ceases to be that officer before the delivery of the bonds,
his or her signature is as effective as if the officer had remained
in office.

30905. The bonds may be sold as the board determines by resolution
but for not less than par. Before selling the bonds, or any part
thereof, the board shall give notice inviting sealed bids in such
manner as it may prescribe. If satisfactory bids are received the
bonds offered for sale shall be awarded to the highest responsible
bidder. If no bids are received or if the board determines that the
bids received are not satisfactory as to price or responsibility of
the bidders the board may reject all bids received, if any, and
either readvertise or sell the bonds at private sale.

30906. Delivery of any bonds may be made at any place either inside
or outside the State, and the purchase price may be received in cash
or bank credits.

30907. 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 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 purposes for
which the debt was incurred; provided, however, that when said
purposes have been accomplished any moneys remaining in such
improvement fund (a) shall be transferred to the fund to be used for
the payment of principal of and interest on the bonds, or (b) shall
be placed in a fund to be used for the purchase of outstanding bonds
of the district from time to time in the open market at such prices
and in such manner, either at public or private sale or otherwise, as
the board may determine. Bonds so purchased shall be canceled
immediately.

30908. After the expiration of three years after a bond election
the board may determine, by ordinance adopted by a vote of two-thirds
of all the members of the board, that any or all of the bonds
authorized at said election remaining unsold shall not be issued or
sold. When the ordinance takes effect, the authorization to issue
said bonds shall become void.

30909. Whenever the board deems that the expenditure of money for
the purposes for which the bonds were authorized by the voters is
impractical or unwise, it may, by ordinance adopted by a vote of
two-thirds of all members of the board, so declare and call an
election to be held in the district for the purpose of submitting to
the qualified voters thereof the proposition of incurring
indebtedness by the issuance of such bonds for some other purposes
or, in the case where bonds have been sold, the proposition to use
the proceeds for some other purposes. The procedure, so far as
applicable, shall be the same as when a bond proposition is
originally submitted.

30912. The provisions of Article 4 (commencing with Section 53500),
Chapter 3, Part 1, Division 2, Title 5 of the Government Code are
applicable to the district.

30913. Any bonds which shall be issued under the provisions of this
article shall be legal investment for all trust funds; for the funds
of insurance companies, banks--both commercial and savings--and
trust companies; and for state school funds; and 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 of California, such money or funds
may be invested in the bonds issued under this part, and 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 said bonds issued under this part
may be so used. The provisions of 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.