BILL NUMBER: AB 1229	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Feuer

                        FEBRUARY 18, 2011

   An act to amend Sections 64111 and 64132 of the Government Code,
relating to transportation financing, and making an appropriation
therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1229, as introduced, Feuer. California Transportation Financing
Authority Fund: subsidies: local agency revenue bonds.
   The California Transportation Financing Authority Act sets forth
the duties of the California Transportation Financing Authority in
issuing certain transportation financing instruments, or approving
their issuance by various local or regional agencies. The authority
is authorized to expend moneys in the continuously appropriated
California Transportation Financing Authority Fund to secure the
issuance of bonds issued by the authority and cover various related
costs, among other things.
   This bill would authorize the authority to direct the Treasurer to
utilize unrestricted moneys in the fund to subsidize the payment of
interest by those local or regional agencies on revenue bonds issued
by those agencies pursuant to these provisions.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 64111 of the Government Code is amended to
read:
   64111.  (a) Prior to issuing or approving the issuance of bonds
for a project, the authority shall determine that the revenues and
other moneys available for a project will be sufficient to pay debt
service on the bonds and to operate and maintain the project over the
life of the bonds consistent with the objective set forth in Section
64105. The authority may hire outside consultants to assist in
making these determinations.
   (b) The authority may issue or approve the issuance of bonds to
achieve any of its purposes under this division and bonds may be
issued without investment grade ratings, as long as the bonds are
sold only to qualified institutional buyers or accredited investors
who attest upon purchase that they understand the nature of the risks
of their investment. The bonds may be taxable or tax exempt and may
be sold at public or private negotiated sale. The Treasurer shall
serve as the agent for sale for all authority bond issues, and shall
be reimbursed from bond proceeds to cover the Treasurer's costs
related to the issuance of these bonds. As used in this subdivision,
"accredited investor" shall have the meaning as defined in
subdivision (a) of Section 5950, and "qualified institutional buyer"
shall have the meaning as defined in subdivision (h) of Section 5950.

   (c) The project sponsor may request that it be the issuer of the
bonds. The authority may grant the request if it determines that the
revenues and other moneys available for the project will be
sufficient to pay debt service on the bonds and to operate and
maintain the project over the life of the bonds. A project sponsor
for which the authority has granted a request that the project
sponsor issue the bonds, in addition to any other powers it may have
under any other law, shall have all of the powers of the authority
under this division necessary or convenient for the purpose of
issuing, securing, and repaying the bonds and financing or
refinancing the project. This provision is a complete, additional,
and alternative method of accomplishing the matters authorized, and
the project sponsor need not comply with any other law relating to
the issuance of bonds, financing of projects and, if applicable, the
imposition and collection of tolls.
   (d) The authority may arrange additional credit support for the
bond issues  , including, but not limited to, interest subsidies
provided pursuant to subdivision (e) of Sect   ion 64132
 . However, the authority may not compel project sponsors to
make use of that credit enhancement, nor compel them to contribute to
it by becoming part of a common credit or by providing funding for a
common reserve or other enhancement mechanism.
  SEC. 2.  Section 64132 of the Government Code is amended to read:
   64132.  (a) The California Transportation Financing Authority Fund
is hereby created and continued in existence in the State Treasury,
to be administered by the authority. Notwithstanding Section 13340 of
the Government Code, all moneys in the funds shall be continuously
appropriated without regard to fiscal year for the purposes of this
division. The authority may pledge any or all of the moneys in the
fund as security for payment of the principal of, and interest on,
any particular issuance by the authority of bonds issued pursuant to
this division, or any particular secured or unsecured loan made
pursuant to subdivision (g) or (h) of Section 64107, and, for that
purpose or as necessary or convenient to the accomplishment of any
other purpose of the authority, may divide the fund into separate
accounts. All moneys accruing to the authority pursuant to this part
from whatever source shall be deposited in the fund.
   (b) Subject to the priorities that may be created by the pledge of
particular moneys in the fund to secure any issuance of bonds of the
authority, and subject further to the costs of loans provided by the
authority pursuant to subdivisions (g) and (h) of Section 64107, and
subject further to any reasonable costs that may be incurred by the
authority in administering the program authorized by this division,
all moneys in the fund derived from any source shall be held in trust
for the security and payment of bonds of the authority and shall not
be used or pledged for any other purpose so long as the bonds are
outstanding and unpaid. However, nothing in this section shall limit
the power of the authority to make loans with the proceeds of bonds
in accordance with the terms of the resolution authorizing the same.
   (c) Pursuant to any agreements with the holders of particular
bonds pledging any particular assets, revenues, or moneys, the
authority may create separate accounts in the fund to manage assets,
revenues, or moneys in the manner set forth in the agreements.
   (d) The authority may, from time to time, direct the Treasurer to
invest moneys in the fund that are not required for its current
needs, including proceeds from the sale of any bonds, in the eligible
securities specified in Section 16430 as the agency shall designate.
The authority may direct the Treasurer to deposit moneys in
interest-bearing accounts in state or national banks or other
financial institutions having principal offices in this state. The
authority may alternatively require the transfer of moneys in the
fund to the Surplus Money Investment Fund for investment pursuant to
Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of
Division 4 of Title 2. All interest or other increment resulting from
an investment or deposit shall be deposited in the fund,
notwithstanding Section 16305.7. Moneys in the fund shall not be
subject to transfer to any other fund pursuant to any provision of
Part 2 (commencing with Section 16300) of Division 4 of Title 2,
excepting the Surplus Money Investment Fund. 
   (e) The authority may direct the Treasurer to utilize unrestricted
moneys in the fund, including interest or other increment resulting
from an investment or deposit of unrestricted moneys, to subsidize
the payment of interest by project sponsors on revenue bonds issued
by those project sponsors pursuant to this division.