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CALIFORNIA STATUTES AND CODES
SECTIONS 99000-99026
PUBLIC UTILITIES CODE
SECTION 99000-99026
99000. Whenever the board of directors of any transit district or rapid transit district finds that areas adjacent to any transit station of the district, exclusive of any right-of-way of a common carrier, receive special benefit by reason of the operation thereof and deems it necessary to incur a bonded indebtedness for the acquisition, construction, completion or repair of any or all improvements, works, property or facilities otherwise authorized by law for such district, or convenient or necessary to carry out the powers of the district, and to provide for such bonded indebtedness to be payable from a special assessment tax levied upon less than all the real property of the district, it shall, by resolution adopted by a vote of two-thirds of all members of the board so declare and state: (a) The purposes for which the proposed debt is to be incurred, which may include all costs and estimated costs incidental to or connected with the accomplishment of such purposes, including, without limitation, engineering, inspection, legal, fiscal agents, financial consultant, 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 said purposes and the amount of the principal of the indebtedness to be incurred; (c) That the board intends to form a special benefit district of a portion of the district which in the opinion of the board will be benefited, the exterior boundaries of which portion are set forth on a map on file with the secretary of the district, which map shall govern for all details as to the extent of the proposed benefit district, and to call an election in such proposed benefit district on a date to be fixed, for the purpose of submitting to the qualified voters thereof the proposition of incurring indebtedness by the issuance of bonds of the district for said benefit district; (d) That assessments for the payment of said bonds and the interest thereon shall be levied exclusively upon the taxable land in the benefit district, except for any right-of-way of a common carrier; (e) The extent to which, if at all, all or a portion of the revenues of the district are to be used to pay the principal of, interest on, and sinking fund payments for, said bonds, including the establishment and maintenance of any reserve fund therefor; (f) That a general description of the proposed construction area, together with a map showing the exterior boundaries of said proposed benefit district with relation to the territory immediately contiguous thereto and to the proposed improvement is on file with the secretary of the district and is available for inspection by any person or persons interested; (g) The time and place for a hearing by the board on the questions of the formation of said proposed benefit district, the extent thereof, the proposed construction, the estimated cost and the amount of debt to be incurred; (h) That at the time and place specified in the resolution any person interested, including all persons owning property in the district or in the proposed benefit district, will be heard; and (i) That at the same time as the board of supervisors is required by law to fix the general tax levy and in the manner provided for such general tax levy, the board of directors shall levy and collect upon all land in the proposed benefit district, except for any right-of-way of a common carrier, an ad valorem assessment at a uniform rate which is sufficient, together with revenues already collected and available therefor, to pay the interest on the said bonds as the same will become due and such part of the principal thereof, including any sinking fund installments required by any of the district's agreements with holders of bonds issued for the benefit district, as will become due before the proceeds of an assessment levied at the time of the next general tax levy will be available for such purposes, and sufficient to provide or to restore such reserve fund to the amount required by any of the district's agreements with holders of bonds issued for the benefit district. 99001. The board of directors of any transit district or rapid transit district may establish one or more special benefit districts within the district pursuant to this chapter. Any special benefit district may contain separate zones, which may consist of either contiguous or noncontiguous areas of land within the district. Each zone within a special benefit district shall be an area adjacent to a transit station which the board determines will receive special benefit by reason of the operation of transit facilities but all zones within a special benefit district need not be adjacent to the same transit station. 99002. Whenever the board of directors of any transit district or rapid transit district finds that areas adjacent to two or more transit stations of the district, exclusive of any right-of-way of a common carrier, receive special benefit by reason of the operation thereof and deems it necessary to form a special benefit district containing two or more zones, in order to incur a bonded indebtedness for the acquisition, construction, completion or repair of any or all improvements, works, property or facilities otherwise authorized by law for such district, or convenient or necessary to carry out the powers of the district, and in order to provide for such bonded indebtedness to be payable from a special assessment tax levied upon less than all the real property of the district, it shall, by a resolution adopted by a vote of two-thirds of all members of the board, declare and state: (a) The purposes for which the proposed debt is to be incurred, which may include all costs and estimated costs incidental to or connected with the accomplishment of such purposes, including, without limitation, engineering, inspection, legal, fiscal agents, financial consultant, 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 said purposes and the amount of the principal of the indebtedness to be incurred; (c) That the board intends to form a special benefit district composed of a specified number of zones within a portion of the territory of the district, which in the opinion of the board will be benefited, and that the exterior boundaries of each such zone within the special benefit district are set forth on a map on file with the secretary of the district, which map shall govern for all details as to the extent of the zones within the proposed benefit district; (d) That the board intends to call an election in all zones of the proposed benefit district on a date to be fixed for the purpose of submitting to the qualified voters of the proposed benefit district the proposition of incurring indebtedness by the issuance of bonds of the district for the special benefit district, which shall be deemed for all purposes to be a single election; (e) That assessments for the payment of the bonds and the interest thereon shall be levied exclusively upon the taxable land in all zones of the benefit district, except for any right-of-way of a common carrier, at a uniform rate to pay the indebtedness of the entire special benefit district; (f) The extent to which, if at all, all or a portion of the revenues of the district are to be used to pay the principal of, interest on, and sinking fund payments for, said bonds, including the establishment and maintenance of any reserve fund therefor; (g) That a general description of each proposed construction area, together with a map showing the exterior boundaries of each zone of the benefit district with relation to the territory contiguous thereto and to the proposed improvements, is on file with the secretary of the district and is available for inspection by any person or persons interested; (h) The time and place for a hearing by the board on the questions of the formation of said proposed benefit district, the extent thereof, the proposed construction, the estimated cost and the amount of debt to be incurred; (i) That at the time and place specified in the resolution any person interested, including all persons owning property in the district or in the proposed benefit district, will be heard; and (j) That at the same time as the board of supervisors is required by law to fix the general tax levy and in the manner provided for such general tax levy, the board of directors shall levy and collect upon all land in each zone of the proposed benefit district, except for any right-of-way of a common carrier, an ad valorem assessment at a uniform rate which is sufficient, together with revenues already collected and available therefor, to pay the interest on the said bonds as the same will become due and such part of the principal thereof, including any sinking fund installments required by any of the district's agreements with holders of bonds issued for the benefit district, as will become due before the proceeds of an assessment levied at the time of the next general tax levy will be available for such purposes, and sufficient to provide or to restore such reserve fund to the amount required by any of the district's agreements with holders of bonds issued for the benefit district. 99003. The notice of the time and place of hearing specified in either Section 99000 or Section 99002 shall be given by publishing a copy of the resolution declaring the necessity pursuant to Section 6066 of the Government Code prior to the time fixed for the hearing in at least one newspaper published in the district. 99004. At the time and place so fixed, or at any time and place to which the hearing is adjourned, the board shall proceed with the hearing. At the hearing any person interested, including any person owning property within the district or within the proposed benefit district, may appear and present any matters material to the questions set forth in the resolution declaring the necessity. 99005. The board shall have power to change the purposes for which the proposed debt is to be incurred, or the estimated cost, or the amount of bonded debt to be incurred, or the boundaries of said proposed benefit district, or any zone therein, or one or all of said matters; provided, however, that said board shall not change such boundaries so as to include any territory which will not, in its judgment, be benefited by said construction. For all purposes of this chapter, it shall be conclusively presumed that any right-of-way of a common carrier will not be benefited by said construction. 99006. The purposes, estimated cost, amount of bonded debt or boundaries shall not be changed by said board except after notice of its intention to do so, given by publication pursuant to Section 6061 of the Government Code in at least one newspaper published in the district. Said notice shall state the changed purposes and estimated cost and debt proposed and that the exterior boundaries as proposed to be changed are set forth on a map on file with the secretary of the district, which map shall govern for all details as to the extent of the proposed benefit district and as to any zone contained therein, and specify the time and place for hearing on such change or changes, which time shall be at least ten days after publication of said notice. 99007. At the time and place so fixed, or at any time and place to which the hearing is adjourned, the board shall proceed with the hearing. At the hearing any person interested, including any person owning property within the district or the proposed benefit district, may appear and present any matters material to the changes stated in the notice. 99008. At the conclusion of the hearing the board shall by resolution determine whether it is deemed necessary to incur the bonded indebtedness, and, if so, the resolution shall also state the purposes for which said proposed debt is to be incurred, the estimated cost of accomplishing said purposes, the amount of the proposed debt, that the exterior boundaries of the portion of the district which will be benefited are set forth on a map on file with the secretary of the district, which map shall govern for all details as to the extent of the benefit district, and that said portion of the district set forth on said map shall thereupon constitute and be known as "Benefit District No. __ of the ____ Transit District," and the determinations made in said resolution shall be final and conclusive. 99009. After the formation of such benefit district within the district and after the assessments have been confirmed pursuant to this chapter, all proceedings for the authorization and issuance of bonds of the district for such benefit district shall be limited and shall apply only to the benefit district; and assessments for the payment of said bonds and the interest thereon, except as otherwise provided in the resolution of necessity, shall be levied exclusively upon the land in the benefit district, except for any right-of-way of a common carrier; and the revenues of the district shall be used only to the extent set forth in the resolution declaring the necessity. If zones have been established within the benefit district, the ad valorem assessment shall be imposed at a uniform rate throughout all zones of the benefit district to pay the principal and interest on all bonds of the district issued for the benefit district. 99010. After the board has made its determination of the matters required to be determined by this chapter, and if the board deems it necessary to incur the bonded indebtedness, the board shall by ordinance call a special election in said benefit district for the purpose of submitting to the qualified voters thereof the proposition of incurring indebtedness by the issuance of bonds of the district for said benefit district. Said ordinance shall state: (a) That the board deems it necessary to incur the bonded indebtedness. (b) The purposes for which the bonded indebtedness will be incurred. (c) The estimated cost of accomplishing said purposes. (d) The amount of the principal of the indebtedness to be incurred. (e) The benefit district to be benefited by said indebtedness, as set forth in the resolution making determinations, and that a map showing the exterior boundaries of said benefit district and all zones contained therein is on file with the secretary of the district, which map shall govern for all details as to the extent of the benefit district. (f) That assessments for the payment of such bonds and the interest thereon shall be levied exclusively and at a uniform rate upon the land in said benefit district and all zones contained therein, except for any right-of-way of a common carrier; and that revenues of the district shall be used only to the extent set forth in the resolution declaring the necessity. (g) 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. (h) The maximum rate of interest to be paid, which shall not exceed 6 percent per annum. (i) The proposition to be submitted to the voters which may include one or more purposes. (j) The date of the election. (k) The manner of holding the election and the procedure for voting for and against the measure. 99011. 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. If a special benefit district has been divided into zones, the votes cast in all zones shall be counted as in the case of a benefit district without such zones to determine the outcome of the election. 99012. 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 benefit 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. 99013. If 66 2/3 percent of the electors in the entire benefit district 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 benefit 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. 99013.5. Notwithstanding the provisions of Section 99013, if a rapid transit district is authorized to issue bonds subject to approval by a percentage of the electors voting other than 66 2/3 percent, such other percentage of the electors voting shall apply for purposes of the approval of bonds issued by the rapid transit district under this chapter. 99014. The bonds shall bear interest at a rate or rates not exceeding 6 percent per annum, 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 such bonds the board may also provide for call and redemption of such bonds prior to maturity at such times and prices and upon such other terms as it may specify, provided that 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 such bonds shall be payable in lawful money of the United States at the office of the treasurer of the district or at such 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 and shall be signed by the president and treasurer, countersigned by the secretary and the official seal of the district attached. The interest coupons of such bonds shall be signed by the treasurer. All such signatures, countersignatures and seal may be printed, lithographed or mechanically reproduced, except that one of such 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 such officer before the delivery of the bonds, his signature is as effective as if he had remained in office. 99015. 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. 99016. 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. 99017. 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 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 benefit 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 benefit 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 benefit 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. 99018. 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. 99019. 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. 99020. The board may provide for the issuance, sale or exchange of refunding bonds to redeem or retire any bonds issued by the district upon the terms, at the times and in the manner which it determines. Refunding bonds may be issued in a principal amount sufficient to pay all or any part of the principal of such outstanding bonds, the interest thereon and the premiums, if any, due upon call and redemption thereof prior to maturity and all expenses of such refunding. The provisions of this chapter for issuance and sale of bonds apply to the issuance and sale of such refunding bonds; except that (i) no election need be called or held for the purpose of authorizing the issuance of refunding bonds, and (ii) when refunding bonds are to be exchanged for outstanding bonds the method of exchange shall be as determined by the board. 99021. The provisions of Article 4 (commencing with Section 53500) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code are applicable to the district. 99022. Any bonds which shall be issued under the provisions of this chapter 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. 99023. Any action or proceeding, wherein the validity of the formation of the benefit district or of any such bonds or of the proceedings in relation thereto is contested, questioned or denied, shall be commenced within three (3) months from the date of such election; otherwise, said bonds and all proceedings in relation thereto, including the formation of the benefit district, shall be held to be valid and in every respect legal and incontestable. 99024. If 66 2/3 percent of the electors of the benefit district voting on the proposition at the special election called pursuant to Section 99011 have voted in favor of it and the board has issued a resolution for the issuance of bonds and has imposed the assessments, the secretary shall so certify to the assessor of the county or counties in which territory of the benefit district is located and deliver to the assessor copies of all maps and diagrams of the benefit district and the assessments to be levied on the lots or parcels of land therein. The assessments authorized by this chapter shall be levied and collected at the same time and in the same manner by the county or counties as taxes are levied and collected. 99025. The powers granted to transit districts and rapid transit districts by this chapter shall be in addition to any powers otherwise granted to such districts by law. 99026. This part may be cited as "the Mills Act."
SECTION 99000-99026
99000. Whenever the board of directors of any transit district or rapid transit district finds that areas adjacent to any transit station of the district, exclusive of any right-of-way of a common carrier, receive special benefit by reason of the operation thereof and deems it necessary to incur a bonded indebtedness for the acquisition, construction, completion or repair of any or all improvements, works, property or facilities otherwise authorized by law for such district, or convenient or necessary to carry out the powers of the district, and to provide for such bonded indebtedness to be payable from a special assessment tax levied upon less than all the real property of the district, it shall, by resolution adopted by a vote of two-thirds of all members of the board so declare and state: (a) The purposes for which the proposed debt is to be incurred, which may include all costs and estimated costs incidental to or connected with the accomplishment of such purposes, including, without limitation, engineering, inspection, legal, fiscal agents, financial consultant, 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 said purposes and the amount of the principal of the indebtedness to be incurred; (c) That the board intends to form a special benefit district of a portion of the district which in the opinion of the board will be benefited, the exterior boundaries of which portion are set forth on a map on file with the secretary of the district, which map shall govern for all details as to the extent of the proposed benefit district, and to call an election in such proposed benefit district on a date to be fixed, for the purpose of submitting to the qualified voters thereof the proposition of incurring indebtedness by the issuance of bonds of the district for said benefit district; (d) That assessments for the payment of said bonds and the interest thereon shall be levied exclusively upon the taxable land in the benefit district, except for any right-of-way of a common carrier; (e) The extent to which, if at all, all or a portion of the revenues of the district are to be used to pay the principal of, interest on, and sinking fund payments for, said bonds, including the establishment and maintenance of any reserve fund therefor; (f) That a general description of the proposed construction area, together with a map showing the exterior boundaries of said proposed benefit district with relation to the territory immediately contiguous thereto and to the proposed improvement is on file with the secretary of the district and is available for inspection by any person or persons interested; (g) The time and place for a hearing by the board on the questions of the formation of said proposed benefit district, the extent thereof, the proposed construction, the estimated cost and the amount of debt to be incurred; (h) That at the time and place specified in the resolution any person interested, including all persons owning property in the district or in the proposed benefit district, will be heard; and (i) That at the same time as the board of supervisors is required by law to fix the general tax levy and in the manner provided for such general tax levy, the board of directors shall levy and collect upon all land in the proposed benefit district, except for any right-of-way of a common carrier, an ad valorem assessment at a uniform rate which is sufficient, together with revenues already collected and available therefor, to pay the interest on the said bonds as the same will become due and such part of the principal thereof, including any sinking fund installments required by any of the district's agreements with holders of bonds issued for the benefit district, as will become due before the proceeds of an assessment levied at the time of the next general tax levy will be available for such purposes, and sufficient to provide or to restore such reserve fund to the amount required by any of the district's agreements with holders of bonds issued for the benefit district. 99001. The board of directors of any transit district or rapid transit district may establish one or more special benefit districts within the district pursuant to this chapter. Any special benefit district may contain separate zones, which may consist of either contiguous or noncontiguous areas of land within the district. Each zone within a special benefit district shall be an area adjacent to a transit station which the board determines will receive special benefit by reason of the operation of transit facilities but all zones within a special benefit district need not be adjacent to the same transit station. 99002. Whenever the board of directors of any transit district or rapid transit district finds that areas adjacent to two or more transit stations of the district, exclusive of any right-of-way of a common carrier, receive special benefit by reason of the operation thereof and deems it necessary to form a special benefit district containing two or more zones, in order to incur a bonded indebtedness for the acquisition, construction, completion or repair of any or all improvements, works, property or facilities otherwise authorized by law for such district, or convenient or necessary to carry out the powers of the district, and in order to provide for such bonded indebtedness to be payable from a special assessment tax levied upon less than all the real property of the district, it shall, by a resolution adopted by a vote of two-thirds of all members of the board, declare and state: (a) The purposes for which the proposed debt is to be incurred, which may include all costs and estimated costs incidental to or connected with the accomplishment of such purposes, including, without limitation, engineering, inspection, legal, fiscal agents, financial consultant, 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 said purposes and the amount of the principal of the indebtedness to be incurred; (c) That the board intends to form a special benefit district composed of a specified number of zones within a portion of the territory of the district, which in the opinion of the board will be benefited, and that the exterior boundaries of each such zone within the special benefit district are set forth on a map on file with the secretary of the district, which map shall govern for all details as to the extent of the zones within the proposed benefit district; (d) That the board intends to call an election in all zones of the proposed benefit district on a date to be fixed for the purpose of submitting to the qualified voters of the proposed benefit district the proposition of incurring indebtedness by the issuance of bonds of the district for the special benefit district, which shall be deemed for all purposes to be a single election; (e) That assessments for the payment of the bonds and the interest thereon shall be levied exclusively upon the taxable land in all zones of the benefit district, except for any right-of-way of a common carrier, at a uniform rate to pay the indebtedness of the entire special benefit district; (f) The extent to which, if at all, all or a portion of the revenues of the district are to be used to pay the principal of, interest on, and sinking fund payments for, said bonds, including the establishment and maintenance of any reserve fund therefor; (g) That a general description of each proposed construction area, together with a map showing the exterior boundaries of each zone of the benefit district with relation to the territory contiguous thereto and to the proposed improvements, is on file with the secretary of the district and is available for inspection by any person or persons interested; (h) The time and place for a hearing by the board on the questions of the formation of said proposed benefit district, the extent thereof, the proposed construction, the estimated cost and the amount of debt to be incurred; (i) That at the time and place specified in the resolution any person interested, including all persons owning property in the district or in the proposed benefit district, will be heard; and (j) That at the same time as the board of supervisors is required by law to fix the general tax levy and in the manner provided for such general tax levy, the board of directors shall levy and collect upon all land in each zone of the proposed benefit district, except for any right-of-way of a common carrier, an ad valorem assessment at a uniform rate which is sufficient, together with revenues already collected and available therefor, to pay the interest on the said bonds as the same will become due and such part of the principal thereof, including any sinking fund installments required by any of the district's agreements with holders of bonds issued for the benefit district, as will become due before the proceeds of an assessment levied at the time of the next general tax levy will be available for such purposes, and sufficient to provide or to restore such reserve fund to the amount required by any of the district's agreements with holders of bonds issued for the benefit district. 99003. The notice of the time and place of hearing specified in either Section 99000 or Section 99002 shall be given by publishing a copy of the resolution declaring the necessity pursuant to Section 6066 of the Government Code prior to the time fixed for the hearing in at least one newspaper published in the district. 99004. At the time and place so fixed, or at any time and place to which the hearing is adjourned, the board shall proceed with the hearing. At the hearing any person interested, including any person owning property within the district or within the proposed benefit district, may appear and present any matters material to the questions set forth in the resolution declaring the necessity. 99005. The board shall have power to change the purposes for which the proposed debt is to be incurred, or the estimated cost, or the amount of bonded debt to be incurred, or the boundaries of said proposed benefit district, or any zone therein, or one or all of said matters; provided, however, that said board shall not change such boundaries so as to include any territory which will not, in its judgment, be benefited by said construction. For all purposes of this chapter, it shall be conclusively presumed that any right-of-way of a common carrier will not be benefited by said construction. 99006. The purposes, estimated cost, amount of bonded debt or boundaries shall not be changed by said board except after notice of its intention to do so, given by publication pursuant to Section 6061 of the Government Code in at least one newspaper published in the district. Said notice shall state the changed purposes and estimated cost and debt proposed and that the exterior boundaries as proposed to be changed are set forth on a map on file with the secretary of the district, which map shall govern for all details as to the extent of the proposed benefit district and as to any zone contained therein, and specify the time and place for hearing on such change or changes, which time shall be at least ten days after publication of said notice. 99007. At the time and place so fixed, or at any time and place to which the hearing is adjourned, the board shall proceed with the hearing. At the hearing any person interested, including any person owning property within the district or the proposed benefit district, may appear and present any matters material to the changes stated in the notice. 99008. At the conclusion of the hearing the board shall by resolution determine whether it is deemed necessary to incur the bonded indebtedness, and, if so, the resolution shall also state the purposes for which said proposed debt is to be incurred, the estimated cost of accomplishing said purposes, the amount of the proposed debt, that the exterior boundaries of the portion of the district which will be benefited are set forth on a map on file with the secretary of the district, which map shall govern for all details as to the extent of the benefit district, and that said portion of the district set forth on said map shall thereupon constitute and be known as "Benefit District No. __ of the ____ Transit District," and the determinations made in said resolution shall be final and conclusive. 99009. After the formation of such benefit district within the district and after the assessments have been confirmed pursuant to this chapter, all proceedings for the authorization and issuance of bonds of the district for such benefit district shall be limited and shall apply only to the benefit district; and assessments for the payment of said bonds and the interest thereon, except as otherwise provided in the resolution of necessity, shall be levied exclusively upon the land in the benefit district, except for any right-of-way of a common carrier; and the revenues of the district shall be used only to the extent set forth in the resolution declaring the necessity. If zones have been established within the benefit district, the ad valorem assessment shall be imposed at a uniform rate throughout all zones of the benefit district to pay the principal and interest on all bonds of the district issued for the benefit district. 99010. After the board has made its determination of the matters required to be determined by this chapter, and if the board deems it necessary to incur the bonded indebtedness, the board shall by ordinance call a special election in said benefit district for the purpose of submitting to the qualified voters thereof the proposition of incurring indebtedness by the issuance of bonds of the district for said benefit district. Said ordinance shall state: (a) That the board deems it necessary to incur the bonded indebtedness. (b) The purposes for which the bonded indebtedness will be incurred. (c) The estimated cost of accomplishing said purposes. (d) The amount of the principal of the indebtedness to be incurred. (e) The benefit district to be benefited by said indebtedness, as set forth in the resolution making determinations, and that a map showing the exterior boundaries of said benefit district and all zones contained therein is on file with the secretary of the district, which map shall govern for all details as to the extent of the benefit district. (f) That assessments for the payment of such bonds and the interest thereon shall be levied exclusively and at a uniform rate upon the land in said benefit district and all zones contained therein, except for any right-of-way of a common carrier; and that revenues of the district shall be used only to the extent set forth in the resolution declaring the necessity. (g) 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. (h) The maximum rate of interest to be paid, which shall not exceed 6 percent per annum. (i) The proposition to be submitted to the voters which may include one or more purposes. (j) The date of the election. (k) The manner of holding the election and the procedure for voting for and against the measure. 99011. 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. If a special benefit district has been divided into zones, the votes cast in all zones shall be counted as in the case of a benefit district without such zones to determine the outcome of the election. 99012. 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 benefit 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. 99013. If 66 2/3 percent of the electors in the entire benefit district 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 benefit 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. 99013.5. Notwithstanding the provisions of Section 99013, if a rapid transit district is authorized to issue bonds subject to approval by a percentage of the electors voting other than 66 2/3 percent, such other percentage of the electors voting shall apply for purposes of the approval of bonds issued by the rapid transit district under this chapter. 99014. The bonds shall bear interest at a rate or rates not exceeding 6 percent per annum, 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 such bonds the board may also provide for call and redemption of such bonds prior to maturity at such times and prices and upon such other terms as it may specify, provided that 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 such bonds shall be payable in lawful money of the United States at the office of the treasurer of the district or at such 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 and shall be signed by the president and treasurer, countersigned by the secretary and the official seal of the district attached. The interest coupons of such bonds shall be signed by the treasurer. All such signatures, countersignatures and seal may be printed, lithographed or mechanically reproduced, except that one of such 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 such officer before the delivery of the bonds, his signature is as effective as if he had remained in office. 99015. 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. 99016. 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. 99017. 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 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 benefit 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 benefit 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 benefit 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. 99018. 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. 99019. 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. 99020. The board may provide for the issuance, sale or exchange of refunding bonds to redeem or retire any bonds issued by the district upon the terms, at the times and in the manner which it determines. Refunding bonds may be issued in a principal amount sufficient to pay all or any part of the principal of such outstanding bonds, the interest thereon and the premiums, if any, due upon call and redemption thereof prior to maturity and all expenses of such refunding. The provisions of this chapter for issuance and sale of bonds apply to the issuance and sale of such refunding bonds; except that (i) no election need be called or held for the purpose of authorizing the issuance of refunding bonds, and (ii) when refunding bonds are to be exchanged for outstanding bonds the method of exchange shall be as determined by the board. 99021. The provisions of Article 4 (commencing with Section 53500) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code are applicable to the district. 99022. Any bonds which shall be issued under the provisions of this chapter 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. 99023. Any action or proceeding, wherein the validity of the formation of the benefit district or of any such bonds or of the proceedings in relation thereto is contested, questioned or denied, shall be commenced within three (3) months from the date of such election; otherwise, said bonds and all proceedings in relation thereto, including the formation of the benefit district, shall be held to be valid and in every respect legal and incontestable. 99024. If 66 2/3 percent of the electors of the benefit district voting on the proposition at the special election called pursuant to Section 99011 have voted in favor of it and the board has issued a resolution for the issuance of bonds and has imposed the assessments, the secretary shall so certify to the assessor of the county or counties in which territory of the benefit district is located and deliver to the assessor copies of all maps and diagrams of the benefit district and the assessments to be levied on the lots or parcels of land therein. The assessments authorized by this chapter shall be levied and collected at the same time and in the same manner by the county or counties as taxes are levied and collected. 99025. The powers granted to transit districts and rapid transit districts by this chapter shall be in addition to any powers otherwise granted to such districts by law. 99026. This part may be cited as "the Mills Act."
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