Resort Improvement DistrictsBonds
Section § 13100
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.
Section § 13101
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.
Section § 13102
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.
Section § 13103
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.
Section § 13104
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.
Section § 13105
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.
Section § 13106
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.
Section § 13107
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.
Section § 13108
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.
Section § 13109
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.
Section § 13110
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.
Section § 13111
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.
Section § 13112
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.
Section § 13113
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.
Section § 13114
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.
Section § 13115
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.
Section § 13116.5
This law states that if you want to challenge the validity of bonds, you need to follow the legal process outlined in Chapter 9, starting with Section 860, of the Code of Civil Procedure.
Section § 13117
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.
Section § 13118
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.
Section § 13119
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.
Section § 13120
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.
Section § 13121
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.
Section § 13122
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.
Section § 13123
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.
Section § 13124
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.
Section § 13125
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.
Section § 13126
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.
Section § 13127
Section § 13128
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.
Section § 13129
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.