Section § 13100

Explanation

When a district's board believes it's necessary to take on debt through bonds, they must pass a resolution that includes several key points. They must state why the debt is needed, what it will be used for, the amount of debt intended, and when and where a hearing on these matters will occur. The hearing will address whether the entire district or just a part of it will benefit from the debt.

Whenever the board deems it necessary for the district to incur a bonded indebtedness, it shall by resolution set forth all of the following:
(a)CA Public Resources Code § 13100(a) A declaration of the necessity for the indebtedness.
(b)CA Public Resources Code § 13100(b) The purpose for which the proposed debt is to be incurred.
(c)CA Public Resources Code § 13100(c) The amount of the proposed debt.
(d)CA Public Resources Code § 13100(d) The time and place for a hearing by the board on the questions:
(1)CA Public Resources Code § 13100(d)(1) Will the whole or a portion of the district be benefited by the accomplishment of the purpose?
(2)CA Public Resources Code § 13100(d)(2) If only a portion of the district will be benefited, what portion will be so benefited?

Section § 13101

Explanation

When there's a hearing, a notice about it needs to be published in a local newspaper that is widely read in the area where the relevant issue is taking place. This notice should be a copy of the resolution and follow specific rules laid out in another section of the law.

Notice of the hearing shall be given by publication of a copy of the resolution pursuant to Section 6066 of the Government Code in a newspaper of general circulation circulated within the area.

Section § 13102

Explanation

This law section requires that a copy of a resolution must be published alongside a notice from a clerk. The notice must inform people that a hearing about the resolution will take place at a specific time and place mentioned in the resolution. During this hearing, anyone with an interest, including property owners in the district, can express their views on the matters outlined in the resolution.

The copy of the resolution published shall be accompanied by a notice subscribed by the clerk that:
(a)CA Public Resources Code § 13102(a) The hearing referred to in the resolution will be had at the time and place specified in the resolution.
(b)CA Public Resources Code § 13102(b) At that time and place any person interested, including all persons owning property in the district, will be heard upon the question stated in the resolution.

Section § 13103

Explanation

This law says that during a scheduled public hearing about whether to take on new debt through bonds, or at any later date if the hearing is postponed, the board must carry out the hearing.

At the time and place fixed for the hearing on the resolution declaring the necessity for incurring the bonded indebtedness or at any time and place to which the hearing is adjourned, the board shall proceed with the hearing.

Section § 13104

Explanation

This law section states that during a hearing about taking on new debt through bonds, anyone who has an interest, such as property owners within the district, can attend and share relevant information or concerns connected to the need for this debt.

At the hearing any person interested, including persons owning property within the district, may appear and present any matters material to the questions set forth in the resolution declaring the necessity for incurring the bonded indebtedness.

Section § 13105

Explanation

After a hearing, the board must decide, through a resolution, if all or part of the district will gain advantages from achieving the purpose outlined in that resolution.

At the conclusion of the hearing, the board shall by resolution determine whether the whole or part of the district will be benefited by the accomplishment of the purpose stated in the resolution.

Section § 13106

Explanation

This law section explains that if a district board decides that only a part of the district will benefit from a project or improvement, they must clearly identify and describe that specific part. Once identified, this part will be officially designated as 'Improvement Area No. ____' within the district.

If the board determines that the whole of the district will not be benefited, the resolution shall also describe the portion of the district which will be benefited, in a manner sufficient for identification, which portion of the district described in the resolution shall thereupon constitute and be known as “Improvement Area No. ____” of the district.

Section § 13107

Explanation

This law states that once a specific area within a district is set up for improvements, any decisions about holding a bond election and taxing to pay for those bonds and their interest are restricted to that particular area. In other words, only that improvement area, and not the whole district, can be involved in these financial decisions.

After the formation of an improvement area within the district pursuant to this chapter, all proceedings for the purpose of a bond election within the improvement area and for the purpose of taxation for the payment of the bonds and interest shall be limited, and apply only to the improvement area.

Section § 13108

Explanation

This law states that once the board decides whether the entire district or just a specific part of it will benefit from a bond issue, that decision cannot be challenged or overturned. Their determination is considered final.

The determination of the board that the whole of the district will be benefited by the bond issue or only that a described portion of the district will be benefited by the bond issue is final and conclusive.

Section § 13109

Explanation

This section explains the steps a board must take when deciding to incur debt through bonds, after determining it's necessary. First, they must pass a resolution stating the necessity, its purpose, and how it benefits the district - either partially or entirely. They must specify the debt amount, bond term (up to 40 years), interest rate (capped at 7%), and propose it to voters.

They must also organize a special election, possibly alongside a general one, detailing its date, polling hours, and locations. They must describe precinct boundaries and appoint election officers.

After the board has made its determination pursuant to Section 13105, if it deems it necessary to incur the bonded indebtedness, it shall by resolution state:
(a)CA Public Resources Code § 13109(a) That it deems it necessary to incur the bonded indebtedness.
(b)CA Public Resources Code § 13109(b) The purpose for which the bonded indebtedness will be incurred.
(c)CA Public Resources Code § 13109(c) Either of the following in accordance with its previous determination:
(1)CA Public Resources Code § 13109(c)(1) That the whole of the district will be benefited by incurring the bonded indebtedness.
(2)CA Public Resources Code § 13109(c)(2) That a portion of the district will be benefited by incurring the bonded indebtedness, which portion shall be described in the resolution of the board made pursuant to Section 13105.
(d)CA Public Resources Code § 13109(d) The amount of debt to be incurred.
(e)CA Public Resources Code § 13109(e) The maximum term the bonds to be issued shall run before maturity, which term shall not exceed 40 years.
(f)CA Public Resources Code § 13109(f) The annual rate of interest to be paid, which rate shall not exceed 7 percent, payable annually or semiannually, or in part annually and in part semiannually.
(g)CA Public Resources Code § 13109(g) The proposition to be submitted to the voters.
(h)CA Public Resources Code § 13109(h) The date of the special district election (which may be consolidated with a general election) at which such proposition shall be submitted to the voters; the hours between which the polls shall be open; the boundaries of voting precincts within the area or portion thereof benefited by incurring the bonded indebtedness; the location of polling places; and the names of the officers selected to conduct such election in each precinct, who shall consist of one judge, one inspector and two clerks.

Section § 13110

Explanation

This law section states that the resolution mentioned in Section 13109 serves as the official notice for a special bond election. This resolution must be published in accordance with Section 6066 of the Government Code, requiring it to appear in a widely-read local newspaper.

The resolution provided for in Section 13109 shall constitute the notice of such special bond election and such resolution shall be published pursuant to Section 6066 of the Government Code in a newspaper of general circulation circulating within the area.

Section § 13111

Explanation

This section explains how district elections in California are managed. Generally, rules for general elections apply to district elections too. However, if there are any conflicting rules between local and general elections, the local election rules take priority. Any conflicting rules from this division will override those from the Elections Code.

The provisions of the Elections Code relating to the qualifications of electors, the manner of voting, the duties of election officers, the canvassing of returns, and all other particulars in respect to the management of general elections so far as they may be applicable shall govern all district elections except:
(a)CA Public Resources Code § 13111(a) To the extent that the provisions of the Elections Code pertaining to the conduct of local elections are inconsistent with the provisions of that code pertaining to general elections, the provisions pertaining to local elections shall control.
(b)CA Public Resources Code § 13111(b) Inconsistent provisions of this division shall control over any provisions of the Elections Code.

Section § 13112

Explanation

Only voters living in the specific area mentioned in a resolution are allowed to vote on whether to approve bonds for that area. If the area is just a part of a larger district, those voters will receive a special ballot, and only those eligible can use it.

Every voter within the area designated in the resolution adopted pursuant to Section 13109, but no others, may vote on the proposition to authorize the bonds. If the area does not include the entire district, a separate ballot shall be prepared for the vote upon such proposition and only the voters entitled thereto shall be given such ballots.

Section § 13113

Explanation

This law states that to approve the issuance of general obligation bonds, two-thirds of voters must agree. It’s about the voting requirement needed for this type of bond.

A two-thirds vote shall be required for the issuance of general obligation bonds.

Section § 13114

Explanation

If two-thirds of voters from an election agree on taking on debt, the board has the authority to decide when and how to handle that debt. They can specify the bond details, how the bonds will be signed, and when to issue them.

If two-thirds of the vote cast at the election are in favor of incurring the indebtedness, the board may by resolution, at the time or times it deems proper, provide for the following:
(a)CA Public Resources Code § 13114(a) The form of the bonds.
(b)CA Public Resources Code § 13114(b) The execution of the bonds.
(c)CA Public Resources Code § 13114(c) The issuance of any part of the bonds.

Section § 13115

Explanation

This law section describes how bonds should be signed and made payable. The chair of the board and the clerk (or the clerk’s deputy) must sign the bonds, and the clerk also signs the coupons. Most signatures can be printed or engraved, except for the clerk's, which must be an original signature. Even if an officer leaves their position before the bonds are delivered, their signature still counts. The county treasurer's office is responsible for handling payments related to these bonds.

The bonds shall be signed by the chair of the board and countersigned by the clerk of the board or the clerk’s deputy and the coupons shall be signed by the clerk of the board or the clerk’s deputy. All signatures, except that of the clerk, on the bonds may be printed, lithographed, or engraved. If an officer whose signature appears on the bonds or coupons ceases to be an officer before the delivery of the bonds, the signature is as effective as if the officer had remained in office. All bonds shall be payable at the office of the county treasurer, who is the depositary of the district.

Section § 13116.5

Explanation

This law states that if you want to challenge or confirm the validity of bonds, you need to follow the procedures outlined in Chapter 9 of Title 10 of Part 2 of the Code of Civil Procedure.

An action to determine the validity of bonds may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.

Section § 13117

Explanation

This law allows a district to sell bonds based on what the board thinks is best for the public. All bonds must be sold to the highest bidder through sealed proposals after giving public notice. If no suitable bids are received, or if the bids aren't good enough regarding price or bidder reliability, the board can reject them and choose to readvertise or conduct a private sale.

The district may sell the bonds so issued at the times or in the manner the board deems to be to the public interest, provided, that all bonds shall be sold on sealed proposals to the highest bidder. Public notice shall be given in the manner determined by the board. 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.

Section § 13118

Explanation

This law states that any bonds issued by areas formed under this division are treated just like bonds from cities and are free from any state taxes.

Additionally, these bonds, if paid from taxes, are considered valid investments for various trust funds, including those of insurance companies, state school funds, and any funds that can be invested in bonds of cities, counties, and school districts in the state.

Any bonds issued by any area organized under this division are hereby given the same force, value, and use as bonds issued by any municipality and shall be exempt from all taxation within the state.
All bonds issued by any area payable from taxes are legal investments for all trust funds, for the trust funds of all insurance companies, the state school funds, and any funds that may be invested in bonds of cities, counties, cities and counties, school districts, or municipalities in the state.

Section § 13119

Explanation

This law allows a board to propose measures to voters to issue new bonds for the purpose of refinancing or refunding existing district or improvement area bonds. Essentially, it gives the board the authority to seek voter approval to replace older bonds with new ones.

The board may, by resolution, do the following:
(a)CA Public Resources Code § 13119(a) Submit to voters a measure to issue new bonds to refund any or all of the district bonds outstanding.
(b)CA Public Resources Code § 13119(b) Submit to the voters of any improvement area a measure to issue new bonds to refund any improvement area bonds outstanding.

Section § 13120

Explanation

This law section states that a proposal can be decided by voters at any regularly scheduled district election or a special election can be arranged specifically to vote on it.

The measure may be voted on at any district election or an election may be called for the purpose.

Section § 13121

Explanation

This law explains the procedure for an election related to issuing refunding bonds in a district. The process is almost the same as when bonds are issued originally, with two exceptions. First, there's no need to hold a hearing to decide if the bond issue will benefit the whole district or just part of it. Second, a two-thirds majority of voters is enough to approve the refunding bonds.

The procedure upon the election shall be in accordance, so far as applicable, with the procedure upon an original issue of bonds, except that:
(a)CA Public Resources Code § 13121(a) No hearing need be held upon the question whether the bond issue will benefit the entire district or only a portion of it.
(b)CA Public Resources Code § 13121(b) A vote of two-thirds of the voters voting upon the measure is sufficient to authorize the issue of refunding bonds.

Section § 13122

Explanation

This law allows for refunding bonds to be swapped for the original bonds, but only if both the bondholders and the board agree to the exchange.

The refunding bonds may, if the holders of the bonds of an original issue and the board so agree, be exchanged for original bonds.

Section § 13123

Explanation

The law states that when you exchange refunding bonds for the original bonds, the total value of the refunding bonds cannot be more than the original bonds' total value.

The face value of refunding bonds exchanged for original bonds shall not exceed the face value of the original bonds.

Section § 13124

Explanation

This law allows the board to collect money through rates or taxes to pay off both the principal and interest on refunding bonds. It does so in the same way they would for original bond issues.

The board may raise money by rates or taxes to pay principal and interest of the refunding bonds in the same manner as prescribed for payment of bonds of an original issue.

Section § 13125

Explanation

This law says that when a district issues bonds, they can decide in advance if those bonds can be paid off earlier than the maturity date, which is known as making the bonds callable. This decision is made through a resolution by the district's board at the time of issuing the bonds.

Any bonds issued by the district may be made callable by resolution of the board adopted at or prior to the time of issuing the bonds.

Section § 13126

Explanation

This law section states that if a bond is callable, meaning it can be redeemed by the issuer before its maturity date, that information must be clearly indicated on the bond itself.

When bonds are made callable a statement to that effect shall be set forth on the face of the bond.

Section § 13127

Explanation
This law explains that callable bonds, which are bonds that can be paid off early, can be redeemed on any interest payment day before they are due. The exact amount, method, and price of redemption are decided by the board in a prior resolution.
Callable bonds may be redeemed on any interest payment date prior to their fixed maturity in such amounts and manner and at such prices as the board may prescribe in the resolution provided for in Section 13125.

Section § 13128

Explanation

This law states that when bonds need to be redeemed, a notice must be published in a newspaper chosen by the board that is most likely to reach the bondholders. The notice has to be published at least 30 days, but not more than 90 days, before the redemption date.

Notice designating the bonds called for redemption shall be published in a newspaper determined by the board to be the one most likely to reach the holders of the bonds. The first publication of the redemption notice shall not be less than 30 nor more than 90 days prior to the date fixed for redemption.

Section § 13129

Explanation

This law states that when a district has set aside funds to pay off the principal and interest of its bonds by a specific redemption date, the bonds will stop accruing interest from that date. Additionally, the rules in this chapter do not apply to county service area revenue bonds, meaning those bonds follow different rules for approval, issuance, and sale.

If on the date fixed for redemption the district has provided funds available for payment of the principal and interest of the bonds called, interest on them ceases.
None of the provisions of this chapter shall apply to any proceedings for the authorization, issue or sale of revenue bonds of a county service area.