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AB-171 Airport districts: temporary negotiable notes.(2017-2018)

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Date Published: 07/10/2017 09:00 PM
AB171:v97#DOCUMENT

Amended  IN  Senate  July 10, 2017
Amended  IN  Senate  May 25, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 171


Introduced by Assembly Members Lackey and Fong

January 17, 2017


An act to add Section 22557.3 to amend Section 22557 of the Public Utilities Code, relating to aviation.


LEGISLATIVE COUNSEL'S DIGEST


AB 171, as amended, Lackey. East Kern Airport District: temporary negotiable notes. Airport districts: temporary negotiable notes.
The California Airport District Act provides for the formation, organization, and operation of airport districts and authorizes airport districts to issue temporary negotiable notes at not more than 8% interest and not exceeding $500,000 in total amount outstanding. Existing law relating to the maximum rate on notes issued by a local agency generally provides that the rate may not exceed 12% per year. The act requires that any note proposed to be issued pursuant to the act with a term longer than 5 years not be issued until after a public hearing is conducted with respect to the issuance and a resolution is adopted approving the issuance, as specified.
The act also provides that these notes are general obligations of the district payable from revenues and taxes unless paid from other available funds of the district in the same manner as bonds of the district and that the maturity of the notes may not be later than 20 years from the date issued, and that the total aggregate amount of the notes outstanding at any one time may not exceed 2% of the assessed valuation of the taxable property in the district, or if the assessed valuation is not obtained, then 2% of the county auditor’s estimate of the assessed valuation of the taxable property of the district evidenced by the auditor’s certificate.
This bill would delete these latter provisions.

This bill would authorize the East Kern Airport District to issue these notes at a rate not greater than the maximum rate permitted by the law relating to notes issued by a local agency generally, and not exceeding $10,000,000 in total amount outstanding.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 22557 of the Public Utilities Code is amended to read:

22557.
 (a) The district may issue temporary negotiable notes bearing interest at a rate not exceeding 8 percent per annum. However, these notes shall be general obligations of the district payable from revenues and taxes, unless paid from other available funds of the district, in the same manner as bonds of the district. The maturity of the notes shall not be later than 20 years from the date thereof, and the total aggregate amount of the notes outstanding at any one time shall not exceed 2 percent of the assessed valuation of the taxable property in the district, or if the assessed valuation is not obtained, 2 percent of the county auditor’s estimate of the assessed valuation of the taxable property of the district evidenced by his or her certificate. The total aggregate amount of these notes outstanding at any one time shall further not exceed the sum of five hundred thousand dollars ($500,000).
(b) Any note proposed to be issued pursuant to subdivision (a) with a term longer than five years shall not be issued until after a public hearing is conducted with respect to the issuance and a resolution is adopted approving the issuance. At least 15 days prior to the public hearing, the board shall cause notice of the hearing to be published pursuant to Section 6061 of the Government Code in a newspaper published in the principal county. The resolution shall be subject to referendum pursuant to Section 9340 of the Elections Code and shall so provide. Within 15 days after adoption of the resolution of issuance, the board shall cause the resolution to be published at least once in a newspaper of general circulation published in the principal county, or if there is none, posted in at least three public places in the district.

SECTION 1.Section 22557.3 is added to the Public Utilities Code, to read:
22557.3.

(a)Notwithstanding Section 22557, the East Kern Airport District may issue temporary negotiable notes bearing interest at a rate not exceeding the maximum rate permitted pursuant to Section 53531 of the Government Code. These notes shall be general obligations of the district payable from revenues and taxes, unless paid from other available funds of the district, in the same manner as bonds of the district. The notes shall mature not later than 20 years from the date thereof, and the total aggregate amount of notes outstanding at any one time shall not exceed 2 percent of the assessed valuation of the taxable property in the district, or if the assessed valuation is not obtained, 2 percent of the county auditor’s estimate of the assessed valuation of the taxable property of the district evidenced by the auditor’s certificate. The total aggregate amount of notes outstanding at any one time shall further not exceed ten million dollars ($10,000,000).

(b)Any note proposed to be issued pursuant to subdivision (a) with a term longer than five years shall not be issued until after a public hearing is conducted with respect to the issuance and a resolution is adopted approving the issuance. At least 15 days prior to the public hearing, the board shall cause notice of the hearing to be published pursuant to Section 6061 of the Government Code in a newspaper published in the principal county. The resolution is subject to referendum pursuant to Section 9340 of the Elections Code and shall so provide. Within 15 days after adoption of the resolution of issuance, the board shall cause the resolution to be published at least once in a newspaper of general circulation published in the principal county, or if there is none, posted in at least three public places in the district.