AB 850, as introduced, Nazarian. Public capital facilities: water quality.
Existing law, the Marks-Roos Local Bond Pooling Act of 1985, authorizes joint powers authorities, among other powers, to issue bonds and loan the proceeds to local agencies to finance specified types of projects and programs.
This bill would declare the intent of the Legislature to amend the Marks-Roos Local Bond Pooling Act of 1985 to permit joint powers agencies to more affordably finance mandated capital improvement projects relating to water quality, and also would make a technical, nonsubstantive change to the act.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
It is the intent of the Legislature to amend the
2Marks-Roos Local Bond Pooling Act of 1985, to permit joint
3powers agencies to more affordably finance mandated capital
4improvement projects relating to water quality.
Section 6585 of the Government Code is amended to
The definitions in this section shall govern the
4construction and interpretation of this article.
5(a) (1) Except as provided in paragraphs (2) and (3), “authority”
6means an entity created pursuant to Article 1 (commencing with
8(2) In the case of an authority issuing bonds pursuant to this
9chapter in which VLF receivables, as defined in subdivision (j),
10are pledged to the payment of the bonds, other than VLF
11receivables so pledged for a county of the first class, an authority
12shall consist of not fewer than 100 local agencies.
13(3) In the case of an authority issuing bonds pursuant to this
14chapter in which Proposition 1A receivables, as defined in
15subdivision (g), are pledged to the payment of the bonds, an
16authority shall consist of not fewer than 250 local agencies.
17(b) “Bond purchase agreement” means a contractual agreement
18executed between the authority and the local agency whereby the
19authority agrees to purchase bonds of the local agency.
20(c) “Bonds” means all of the following:
21(1) Bonds, including, but not limited to, assessment bonds,
22redevelopment agency bonds, government-issued mortgage bonds,
23and industrial development bonds.
24(2) Notes, including bond, revenue, tax, or grant anticipation
26(3) Commercial paper, floating rate and variable maturity
27securities, and any other evidences of indebtedness.
28(4) Certificates of participation or lease-purchase agreements.
29(d) “Cost,” as applied to a public capital improvement or portion
30thereof financed under this part, means all of the following:
31(1) All or any part of the cost of construction, renovation, and
32acquisition of all lands, structures, real or personal property, rights,
33rights-of-way, franchises, easements, and interests acquired or
34used for a public capital improvement.
35(2) The cost of demolishing or removing any buildings or
36structures on land so acquired, including the cost of acquiring any
37lands to which the buildings or structures may be moved, and the
38cost of all machinery and equipment.
39(3) Finance charges.
P3 1(4) Interest prior to, during, and for a period after, completion
2of that construction, as determined by the authority.
3(5) Provisions for working capital, reserves for principal and
4interest and for extensions, enlargements, additions, replacements,
5renovations, and improvements.
6(6) The cost of architectural, engineering, financial and legal
7services, plans, specifications, estimates, and administrative
9(7) Other expenses necessary or
begin delete incidentend delete to
10determining the feasibility of constructing any project or
begin delete incidentend delete
11 to the construction or acquisition or financing of any
12public capital improvement.
13(e) “Legislative body” means the governing body of a local
15(f) “Local agency” means a party to the agreement creating the
16authority, or an agency or subdivision of that party, sponsoring a
17project of public capital improvements, or any city, county, city
18and county, authority, district, or public corporation of this state.
19(g) “Proposition 1A receivable” means the right to payment of
20moneys due or to become due to a local agency, pursuant to clause
21(iii) of subparagraph (B) of paragraph (1) of subdivision (a) of
22Section 25.5 of Article XIII of the California Constitution and
23Section 100.06 of the Revenue and Taxation Code.
24(h) “Public capital improvements” means one or more projects
25specified in Section 6546.
26(i) “Revenue” means income and receipts of the authority from
27any of the following:
28(1) A bond purchase agreement.
29(2) Bonds acquired by the authority.
30(3) Loans installment sale agreements, and other
31revenue-producing agreements entered into by the authority.
32(4) Projects financed by the authority.
33(5) Grants and other sources of income.
34(6) VLF receivables purchased pursuant to Section 6588.5.
35(7) Proposition 1A receivables purchased pursuant to Section
37(8) Interest or other income from any investment of any money
38in any fund or account established for the payment of principal or
39interest or premiums on bonds.
P4 1(j) “VLF receivable” means the right to payment of moneys due
2or to become due to a local agency out of funds payable in
3connection with vehicle license fees to a local agency pursuant to
4Section 10754.11 of the Revenue and Taxation Code.
5(k) “Working capital” means money to be used by, or on behalf
6of, a local agency for any purpose for which a local agency may
7borrow money pursuant to Section 53852, or for any purpose for
8which a VLF receivable or a Proposition 1A receivable sold to an
9authority could have been used by the local agency.