California Legislature—2013–14 Regular Session

Assembly Bill No. 1272

Introduced by Assembly Member Medina

February 22, 2013

An act to amend Sections 63000, 63010, and 63025.1 of the Government Code, relating to economic development.

LEGISLATIVE COUNSEL’S DIGEST

AB 1272, as introduced, Medina. California Infrastructure and Economic Development Bank.

Existing law creates the California Infrastructure and Economic Development Bank and provides that it shall be directed by an executive appointed by the Governor and confirmed by the Senate and governed by a specified board of directors. Existing law makes findings and declarations in this regard, provides definitions, and authorizes the board to take various actions in connection with the bank, including the issuance of bonds, as specified.

This bill, among other things, would revise the definition of economic development facilities to include facilities that are used to provide goods movement and would define goods movement-related infrastructure. The bill would revise the definition of port facilities to specifically reference airports, landports, waterports, and railports. The bill would authorize the bank to join or formally participate in regional, state, national, or international organizations related to infrastructure financing and would permit the bank to serve as a facilitator of an infrastructure financing project that could or would be located in California, regardless as to whether the bank would be funding a portion of the project. The bill would revise the statement of legislative findings and declarations described above and make various technical changes.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

SECTION 1.  

Section 63000 of the Government Code is
amended to read:

63000.  

The Legislature finds and declares the following:

(a) Economic revitalization, future development, and a healthy
climate for jobs in California will depend upon a well-conceived
system of public improvements that are essential to the economic
well-being of the citizens of the state and are necessary to maintain,
as well as create, employment within the state for business.

(b) It is necessary for public policy to support the efforts of
businesses attempting to expand, businesses seeking to locate in
California, and local economic development organizations, public
agencies, and new entrepreneurs by dedicating public fiscal
resources to confront obstacles and barriers that impede economic
growth.

(c) Existing mechanisms that coordinate federal, state, local,
and private financial resources are inadequate to attract and sustain
that level of private investment that is essential to a growth
economy.

(d) In order to secure and enhance the economic well-being of
Californians, promote economic development in the state, and
provide a healthy climate for the creation of jobs, it is necessary
for public policy to support the efforts of expanding businesses,
businesses seeking to locate in California, local development
organizations, public bodies, and new entrepreneurs to gain access
to capital through current and potential operations of financial
markets.

(e) The high cost and the lack of availability of industrial loans
for small- and medium-size businesses is making it difficult for
thousands of these enterprises to get established, to maintain their
present employment levels, or to expand employment.

(f) The problem of access to capital is acute in the high
technology industry clusters because companies must often finance
large capital expenditures early in their development cycle, and
cannot obtain financing sufficient to cover the cost of those
expenditures. Consideration should be given to industry clusters
that may include the following:

(1) Health care technology.

(2) Multimedia.

(3) Environmental technology.

(4) Information technology.

(g) The high cost and limited availability of loans and capital
has led a number of states to take action to remedy these conditions
through concerted public and private investment programs that
include efforts to do the following:

(1) Use the state’s access to capital markets more effectively
for economic development.

(2) Create financing pools to access national begin insert and international end insert
capital markets or help government sponsors and public-private
economic development organizations obtain credit enhancement
on their own.

(3) Facilitate credit enhancement for selected specific projects.

(4) Provide or arrange for loan insurance.

(5) Create and support secondary markets for loan portfolios of
urban and rural economic development corporations and others.

(6) Improve access to international capital markets.

(7) Provide opportunities for public pension funds and other
institutional investors to play a larger role in state economic
development.

(8) Arrange for or provide subordinated debt for selected
projects.

(9) Increase support for local begin insert , regional, and state end insert infrastructure
development.

begin insert

(10) Improve access to global markets by supporting
manufacturing-linked goods and movement-related infrastructure
within state, national, and international transportation corridors.

end insert

(h) Local governments in California bear a primary
responsibility for the business of promoting job creation and
economic development efforts. California’s continued reliance on
autonomous local entities often fails to adequately consider regional
impacts of business expansion. Projects of a regional nature need
the benefit of a state coordinating function to augment and enhance
local economic development and environmental efforts.

(i) The State of California has not embarked on a major
infrastructure financing effort since the decade of the begin delete 1960’s end delete begin insert 1960s end insert ,
despite persistent unemployment and soaring population growth.

(j) California’s ability to compete in a global economy depends
upon its capacity to implement policies that take maximum
advantage of public and private resources at the local, regional,
state, and national levels. These policies should be coordinated
with any future legislative plan involving growth management
strategies designed to make economic growth compatible with
environmental protections. It is the intent of the Legislature in
enacting this act to create a mechanism to finance projects needed
to implement economic development and job creation and growth
management strategies, and to provide a secure and stable funding
source for implementation of this act in order to meet critical
economic, social, and environmental concerns.

(k) The State of California needs a financing entity structured
with broad authority to issue bonds, provide guarantees, and
leverage state and federal funds using techniques that will target
public investment to facilitate begin insert private sector end insert economic begin delete development end delete
begin insert growth end insert . The goal is begin insert to expand private sector investment within the
state and end insert to produce more private sector jobs with less public sector
investment.

(l) The mechanisms for financing public improvements and
private job creation strategies provided for in this act are in the
public interest, serve a public purpose, and will promote the health,
welfare, and safety of the citizens of the state.

(m) The public policies and responsibilities of the state,
including all of the above purposes and functions, cannot be fully
obtained without the use of financing assistance and can be most
effectively furthered by the creation of the California Infrastructure
and Economic Development Bank.

SEC. 2.  

Section 63010 of the Government Code is amended
to read:

63010.  

For purposes of this division, the following words and
terms shall have the following meanings unless the context clearly
indicates or requires another or different meaning or intent:

(a) “Act” means the Bergeson-Peace Infrastructure and
Economic Development Bank Act.

(b) “Bank” means the California Infrastructure and Economic
Development Bank.

(c) “Board” or “bank board” means the Board of Directors of
the California Infrastructure and Economic Development Bank.

(d) “Bond purchase agreement” means a contractual agreement
executed between the bank and a sponsor, or a special purpose
trust authorized by the bank or a sponsor, or both, whereby the
bank or special purpose trust authorized by the bank agrees to
purchase bonds of the sponsor for retention or sale.

(e) “Bonds” means bonds, including structured, senior, and
subordinated bonds or other securities; loans; notes, including
bond, revenue, tax begin insert , end insert or grant anticipation notes; commercial paper;
floating rate and variable maturity securities; and any other
evidences of indebtedness or ownership, including certificates of
participation or beneficial interest, asset backed certificates, or
lease-purchase or installment purchase agreements, whether taxable
or excludable from gross income for federal income taxation
purposes.

(f) “Cost,” as applied to a project or portion thereof financed
under this division, means all or any part of the cost of construction,
renovation, and acquisition of all lands, structures, real or personal
property, rights, rights-of-way, franchises, licenses, easements,
and interests acquired or used for a project; the cost of demolishing
or removing any buildings or structures on land so acquired,
including the cost of acquiring any lands to which the buildings
or structures may be moved; the cost of all machinery, equipment,
and financing charges; interest prior to, during, and for a period
after completion of construction, renovation, or acquisition, as
determined by the bank; provisions for working capital; reserves
for principal and interest and for extensions, enlargements,
additions, replacements, renovations, and improvements; and the
cost of architectural, engineering, financial and legal services,
plans, specifications, estimates, administrative expenses, and other
expenses necessary or incidental to determining the feasibility of
any project or incidental to the construction, acquisition, or
financing of any project, and transition costs in the case of an
electrical corporation.

(g) “Economic development facilities” means real and personal
property, structures, buildings, equipment, and supporting
components thereof that are used to provide industrial, recreational,
research, commercial, utility, begin insert goods movement, end insert or service enterprise
facilities, community, educational, cultural, or social welfare
facilities and any parts or combinations thereof, and all facilities
or infrastructure necessary or desirable in connection therewith,
including provision for working capital, but shall not include any
housing.

(h) “Electrical corporation” has the meaning set forth in Section
218 of the Public Utilities Code.

(i) “Executive director” means the Executive Director of the
California Infrastructure and Economic Development Bank
appointed pursuant to Section 63021.

(j) “Financial assistance” in connection with a project, includes,
but is not limited to, any combination of grants, loans, the proceeds
of bonds issued by the bank or special purpose trust, insurance,
guarantees or other credit enhancements or liquidity facilities, and
contributions of money, property, labor, or other things of value,
as may be approved by resolution of the board or the sponsor, or
both; the purchase or retention of bank bonds, the bonds of a
sponsor for their retention or for sale by the bank, or the issuance
of bank bonds or the bonds of a special purpose trust used to fund
the cost of a project for which a sponsor is directly or indirectly
liable, including, but not limited to, bonds, the security for which
is provided in whole or in part pursuant to the powers granted by
Section 63025; bonds for which the bank has provided a guarantee
or enhancement, including, but not limited to, the purchase of the
subordinated bonds of the sponsor, the subordinated bonds of a
special purpose trust, or the retention of the subordinated bonds
of the bank pursuant to Chapter 4 (commencing with Section
63060); or any other type of assistance deemed appropriate by the
bank or the sponsor, except that no direct loans shall be made to
nonpublic entities other than in connection with the issuance of
rate reduction bonds pursuant to a financing order or in connection
with a financing for an economic development facility.

For purposes of this subdivision, “grant” does not include grants
made by the bank except when acting as an agent or intermediary
for the distribution or packaging of financing available from
federal, private, or other public sources.

(k) “Financing order” has the meaning set forth in Section 840
of the Public Utilities Code.

(l) “Guarantee trust fund” means the California Infrastructure
Guarantee Trust Fund.

(m) “Infrastructure bank fund” means the California
Infrastructure and Economic Development Bank Fund.

(n) “Loan agreement” means a contractual agreement executed
between the bank or a special purpose trust and a sponsor that
provides that the bank or special purpose trust will loan funds to
the sponsor and that the sponsor will repay the principal and pay
the interest and redemption premium, if any, on the loan.

(o) “Participating party” means any person, company,
corporation, association, state or municipal governmental entity,
partnership, firm, or other entity or group of entities, whether
organized for profit or not for profit, engaged in business or
operations within the state and that applies for financing from the
bank in conjunction with a sponsor for the purpose of implementing
a project. However, in the case of a project relating to the financing
of transition costs or the acquisition of transition property, or both,
on the request of an electrical corporation, or in connection with
a financing for an economic development facility, or for the
financing of insurance claims, the participating party shall be
deemed to be the same entity as the sponsor for the financing.

(p) “Project” means designing, acquiring, planning, permitting,
entitling, constructing, improving, extending, restoring, financing,
and generally developing public development facilities or economic
development facilities within the state or financing transition costs
or the acquisition of transition property, or both, upon approval of
a financing order by the Public Utilities Commission, as provided
in Article 5.5 (commencing with Section 840) of Chapter 4 of Part
1 of Division 1 of the Public Utilities Code.

(q) “Public development facilities” means real and personal
property, structures, conveyances, equipment, thoroughfares,
buildings, and supporting components thereof, excluding any
housing, that are directly related to providing the following:

(1) “City streets” including any street, avenue, boulevard, road,
parkway, drive, or other way that is any of the following:

(A) An existing municipal roadway.

(B) Is shown upon a plat approved pursuant to law and includes
the land between the street lines, whether improved or unimproved,
and may comprise pavement, bridges, shoulders, gutters, curbs,
guardrails, sidewalks, parking areas, benches, fountains, plantings,
lighting systems, and other areas within the street lines, as well as
equipment and facilities used in the cleaning, grading, clearance,
maintenance, and upkeep thereof.

(2) “County highways” including any county highway as defined
in Section 25 of the Streets and Highways Code, that includes the
land between the highway lines, whether improved or unimproved,
and may comprise pavement, bridges, shoulders, gutters, curbs,
guardrails, sidewalks, parking areas, benches, fountains, plantings,
lighting systems, and other areas within the street lines, as well as
equipment and facilities used in the cleaning, grading, clearance,
maintenance, and upkeep thereof.

(3) “Drainage, water supply, and flood control” including, but
not limited to, ditches, canals, levees, pumps, dams, conduits,
pipes, storm sewers, and dikes necessary to keep or direct water
away from people, equipment, buildings, and other protected areas
as may be established by lawful authority, as well as the
acquisition, improvement, maintenance, and management of
floodplain areas and all equipment used in the maintenance and
operation of the foregoing.

(4) “Educational facilities” including libraries, child care
facilities, including, but not limited to, day care facilities, and
employment training facilities.

(5) “Environmental mitigation measures” including required
construction or modification of public infrastructure and purchase
and installation of pollution control and noise abatement
equipment.

(6) “Parks and recreational facilities” including local parks,
recreational property and equipment, parkways and property.

(7) “Port facilities” including begin insert airports, landports, waterports,
railports, end insert docks, harbors, ports of entry, piers, ships, small boat
harbors and marinas, and any other facilities, additions, or
improvements in connection therewith begin insert , that transport goods and
persons end insert .

(8) “Power and communications” including facilities for the
transmission or distribution of electrical energy, natural gas, and
telephone and telecommunications service.

(9) “Public transit” including air and rail transport begin delete of goods end delete ,
airports, guideways, vehicles, rights-of-way, passenger stations,
maintenance and storage yards, and related structures, including
public parking facilities, begin insert and end insert equipment used to provide or enhance
transportation by bus, rail, ferry, or other conveyance, either
publicly or privately owned, that provides to the public general or
special service on a regular and continuing basis.

(10) “Sewage collection and treatment” including pipes, pumps,
and conduits that collect wastewater from residential,
manufacturing, and commercial establishments, the equipment,
structures, and facilities used in treating wastewater to reduce or
eliminate impurities or contaminants, and the facilities used in
disposing of, or transporting, remaining sludge, as well as all
equipment used in the maintenance and operation of the foregoing.

(11) “Solid waste collection and disposal” including vehicles,
vehicle-compatible waste receptacles, transfer stations, recycling
centers, sanitary landfills, and waste conversion facilities necessary
to remove solid waste, except that which is hazardous as defined
by law, from its point of origin.

(12) “Water treatment and distribution” including facilities in
which water is purified and otherwise treated to meet residential,
manufacturing, or commercial purposes and the conduits, pipes,
and pumps that transport it to places of use.

(13) “Defense conversion” including, but not limited to, facilities
necessary for successfully converting military bases consistent
with an adopted base reuse plan.

(14) “Public safety facilities” including, but not limited to, police
stations, fire stations, court buildings, jails, juvenile halls, and
juvenile detention facilities.

(15) “State highways” including any state highway as described
in Chapter 2 (commencing with Section 230) of Division 1 of the
Streets and Highways Code, and the related components necessary
for safe operation of the highway.

(16) (A)  begin delete Military infrastructure, end delete begin insert “Military infrastructure,” end insert
including, but not limited to, facilities on or near a military
installation, that enhance the military operations and mission of
one or more military installations in this state. begin delete To be eligible for
funding, the project shall be endorsed by the Office of Military
and Aerospace Support established pursuant to Section 13998.2. end delete

(B) For purposes of this subdivision, “military installation”
means any facility under the jurisdiction of the Department of
Defense, as defined in paragraph (1) of subsection (e) of Section
2687 of Title 10 of the United States Code.

begin insert

(17) “Goods movement-related infrastructure” including port
facilities, roads, rail, and other facilities and projects that move
goods, energy, and information.

end insert

(r) “Rate reduction bonds” has the meaning set forth in Section
840 of the Public Utilities Code.

(s) “Revenues” means all receipts, purchase payments, loan
repayments, lease payments, and all other income or receipts
derived by the bank or a sponsor from the sale, lease, or other
financing arrangement undertaken by the bank, a sponsor begin insert , end insert or a
participating party, including, but not limited to, all receipts from
a bond purchase agreement begin delete , end delete and any income or revenue derived
from the investment of any money in any fund or account of the
bank or a sponsor and any receipts derived from transition property.
Revenues shall not include moneys in the General Fund of the
state.

(t) “Special purpose trust” means a trust, partnership, limited
partnership, association, corporation, nonprofit corporation, or
other entity authorized under the laws of the state to serve as an
instrumentality of the state to accomplish public purposes and
authorized by the bank to acquire, by purchase or otherwise, for
retention or sale, the bonds of a sponsor or of the bank made or
entered into pursuant to this division and to issue special purpose
trust bonds or other obligations secured by these bonds or other
sources of public or private revenues. Special purpose trust also
means any entity authorized by the bank to acquire transition
property or to issue rate reduction bonds, or both, subject to the
approvals by the bank and powers of the bank as are provided by
the bank in its resolution authorizing the entity to issue rate
reduction bonds.

(u) “Sponsor” means any subdivision of the state or local
government including departments, agencies, commissions, cities,
counties, nonprofit corporations formed on behalf of a sponsor,
special districts, assessment districts, and joint powers authorities
within the state or any combination of these subdivisions that
makes an application to the bank for financial assistance in
connection with a project in a manner prescribed by the bank. This
definition shall not be construed to require that an applicant have
an ownership interest in the project. In addition, an electrical
corporation shall be deemed to be the sponsor as well as the
participating party for any project relating to the financing of
transition costs and the acquisition of transition property on the
request of the electrical corporation and any person, company,
corporation, partnership, firm, or other entity or group engaged in
business or operation within the state that applies for financing of
any economic development facility, shall be deemed to be the
sponsor as well as the participating party for the project relating
to the financing of that economic development facility.

(v) “State” means the State of California.

(w) “Transition costs” has the meaning set forth in Section 840
of the Public Utilities Code.

(x) “Transition property” has the meaning set forth in Section
840 of the Public Utilities Code.

SEC. 3.  

Section 63025.1 of the Government Code is amended
to read:

63025.1.  

The bank board may do or delegate the following to
the executive director:

(a) Sue and be sued in its own name.

(b) As provided in Chapter 5 (commencing with Section 63070),
issue bonds and authorize special purpose trusts to issue bonds,
including, at the option of the board, bonds bearing interest that
is taxable for the purpose of federal income taxation, or borrow
money to pay all or any part of the cost of any project, or to
otherwise carry out the purposes of this division.

(c) Engage the services of private consultants to render
professional and technical assistance and advice in carrying out
the purposes of this division.

(d) Employ attorneys, financial consultants, and other advisers
as may, in the bank’s judgment, be necessary in connection with
the issuance and sale, or authorization of special purpose trusts for
the issuance and sale, of any bonds, notwithstanding Sections
11042 and 11043.

(e) Contract for engineering, architectural, accounting, or other
services of appropriate state agencies as may, in its judgment, be
necessary for the successful development of a project.

(f) Pay the reasonable costs of consulting engineers, architects,
accountants, and construction, land use, recreation, and
environmental experts employed by any sponsor or participating
party if, in the bank’s judgment, those services are necessary for
the successful development of a project.

(g) Acquire, take title to, and sell by installment sale or
otherwise, lands, structures, real or personal property, rights,
rights-of-way, franchises, easements, and other interests in lands
that are located within the state, or transition property as the bank
may deem necessary or convenient for the financing of the project,
upon terms and conditions that it considers to be reasonable.

(h) Receive and accept from any source begin insert , end insert including, but not
limited to, the federal government, the state, or any agency thereof,
loans, contributions, or grants, in money, property, labor, or other
things of value, for, or in aid of, a project, or any portion thereof.

(i) Make loans to any sponsor or participating party, either
directly or by making a loan to a lending institution, in connection
with the financing of a project in accordance with an agreement
between the bank and the sponsor or a participating party, either
as a sole lender or in participation with other lenders. However,
no loan shall exceed the total cost of the project as determined by
the sponsor or the participating party and approved by the bank.

(j) Make loans to any sponsor or participating party, either
directly or by making a loan to a lending institution, in accordance
with an agreement between the bank and the sponsor or
participating party to refinance indebtedness incurred by the
sponsor or participating party in connection with projects
undertaken and completed prior to any agreement with the bank
or expectation that the bank would provide financing, either as a
sole lender or in participation with other lenders.

(k) Mortgage all or any portion of the bank’s interest in a project
and the property on which any project is located, whether owned
or thereafter acquired, including the granting of a security interest
in any property, tangible or intangible.

(l) Assign or pledge all or any portion of the bank’s interests in
transition property and the revenues therefrom, or assets, things
of value, mortgages, deeds of trust, bonds, bond purchase
agreements, loan agreements, indentures of mortgage or trust, or
similar instruments, notes, and security interests in property,
tangible or intangible and the revenues therefrom, of a sponsor or
a participating party to which the bank has made loans, and the
revenues therefrom, including payment or income from any interest
owned or held by the bank, for the benefit of the holders of bonds.

(m) Make, receive, or serve as a conduit for the making of, or
otherwise provide for, grants, contributions, guarantees, insurance,
credit enhancements or liquidity facilities, or other financial
enhancements to a sponsor or a participating party as financial
assistance for a project.

(n) Lease the project being financed to a sponsor or a
participating party, upon terms and conditions that the bank deems
proper but shall not be leased at a loss; charge and collect rents
therefor; terminate any lease upon the failure of the lessee to
comply with any of the obligations thereof; include in any lease,
if desired, provisions that the lessee shall have options to renew
the lease for a period or periods, and at rents determined by the
bank; purchase any or all of the project; or, upon payment of all
the indebtedness incurred by the bank for the financing of the
project, the bank may convey any or all of the project to the lessee
or lessees.

(o) Charge and equitably apportion among sponsors and
participating parties the bank’s administrative costs and expenses
incurred in the exercise of the powers and duties conferred by this
division.

(p) Issue, obtain, or aid in obtaining, from any department or
agency of the United States, from other agencies of the state, or
from any private company, any insurance or guarantee to, or for,
the payment or repayment of interest or principal, or both, or any
part thereof, on any loan, lease, or obligation or any instrument
evidencing or securing the same, made or entered into pursuant to
this division.

(q) Notwithstanding any other provision of this division, enter
into any agreement, contract, or any other instrument with respect
to any insurance or guarantee; accept payment in the manner and
form as provided therein in the event of default by a sponsor or a
participating party; and issue or assign any insurance or guarantee
as security for the bank’s bonds.

(r) Enter into any agreement or contract, execute any instrument,
and perform any act or thing necessary or convenient to, directly
or indirectly, secure the bank’s bonds, the bonds issued by a special
purpose trust, or a sponsor’s obligations to the bank or to a special
purpose trust, including, but not limited to, bonds of a sponsor
purchased by the bank or a special purpose trust for retention or
sale, with funds or moneys that are legally available and that are
due or payable to the sponsor by reason of any grant, allocation,
apportionment or appropriation of the state or agencies thereof, to
the extent that the Controller shall be the custodian at any time of
these funds or moneys, or with funds or moneys that are or will
be legally available to the sponsor, the bank, or the state or any
agencies thereof by reason of any grant, allocation, apportionment,
or appropriation of the federal government or agencies thereof;
and in the event of written notice that the sponsor has not paid or
is in default on its obligations to the bank or a special purpose
trust, direct the Controller to withhold payment of those funds or
moneys from the sponsor over which it is or will be custodian and
to pay the same to the bank or special purpose trust or their
assignee, or direct the state or any agencies thereof to which any
grant, allocation, apportionment or appropriation of the federal
government or agencies thereof is or will be legally available to
pay the same upon receipt by the bank or special purpose trust or
their assignee, until the default has been cured and the amounts
then due and unpaid have been paid to the bank or special purpose
trust or their assignee, or until arrangements satisfactory to the
bank or special purpose trust have been made to cure the default.

(s) Enter into any agreement or contract, execute any instrument,
and perform any act or thing necessary, convenient, or appropriate
to carry out any power expressly given to the bank by this division,
including, but not limited to, agreements for the sale of all or any
part, including principal, interest, redemption rights or any other
rights or obligations, of bonds of the bank or of a special purpose
trust, liquidity agreements, contracts commonly known as interest
rate swap agreements, forward payment conversion agreements,
futures or contracts providing for payments based on levels of, or
changes in, interest rates or currency exchange rates, or contracts
to exchange begin delete cash-flows end delete begin insert cashflows end insert or a series of payments, or
contracts, including options, puts or calls to hedge payments, rate,
spread, currency exchange, or similar exposure, or any other
financial instrument commonly known as a structured financial
product.

(t) Purchase, with the proceeds of the bank’s bonds, transition
property or bonds issued by, or for the benefit of, any sponsor in
connection with a project, pursuant to a bond purchase agreement
or otherwise. Bonds or transition property purchased pursuant to
this division may be held by the bank, pledged or assigned by the
bank, or sold to public or private purchasers at public or negotiated
sale, in whole or in part, separately or together with other bonds
issued by the bank, and notwithstanding any other provision of
law, may be bought by the bank at private sale.

(u) Enter into purchase and sale agreements with all entities,
public and private, including state and local government pension
funds, with respect to the sale or purchase of bonds or transition
property.

(v) Invest any moneys held in reserve or sinking funds, or any
moneys not required for immediate use or disbursement, in
obligations that are authorized by law for the investment of trust
funds in the custody of the Treasurer.

(w) Authorize a special purpose trust or trusts to purchase or
retain, with the proceeds of the bonds of a special purpose trust,
transition property or bonds issued by, or for the benefit of, any
sponsor in connection with a project or issued by the bank or a
special purpose trust, pursuant to a bond purchase agreement or
otherwise. Bonds or transition property purchased pursuant to this
title may be held by a special purpose entity, pledged or assigned
by a special purpose entity, or sold to public or private purchasers
at public or negotiated sale, in whole or in part, with or without
structuring, subordination or credit enhancement, separately or
together with other bonds issued by a special purpose trust, and
notwithstanding any other provision of law, may be bought by the
bank or by a special purpose trust at private sale.

(x) Approve the issuance of any bonds, notes, or other evidences
of indebtedness by the Rural Economic Development Infrastructure
Panel, established pursuant to Section 15373.7.

(y) Approve the issuance of rate reduction bonds by an entity
other than the bank or a special purpose trust to acquire transition
property upon approval of the transaction in a financing order by
the Public Utilities Commission, as provided in Article 5.5
(commencing with Section 840) of Chapter 4 of Part 1 of Division
1 of the Public Utilities Code.

(z) Apply for and accept subventions, grants, loans, advances,
and contributions from any source of money, property, labor, or
other things of value. The sources may include bond proceeds,
dedicated taxes, state appropriations, federal appropriations, federal
grant and loan funds, public and private sector retirement system
funds, and proceeds of loans from the Pooled Money Investment
Account.

(aa) Do all things necessary and convenient to carry out its
purposes and exercise its powers, provided, however, that nothing
herein shall be construed to authorize the bank to engage directly
in the business of a manufacturing, industrial, real estate
development, or nongovernmental service enterprise. Further, the
bank shall not be organized to accept deposits of money for time
or demand deposits or to constitute a bank or trust company.

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(ab) Join or formally participate in regional, state, national, or
international organizations related to infrastructure financing.
Due to the bank’s financial expertise, in participating in any of
these organizations, the bank may serve as facilitator of an
infrastructure financing project that could or would be located in
California, regardless as to whether the bank would be funding a
portion of the project.

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