SB 444, as introduced, De León. California Transportation Financing Authority.
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 make a technical, nonsubstantive change to these provisions.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 64111 of the Government Code is
2amended to read:
(a) Prior to issuing or approving the issuance of bonds
4for a project, the authority shall determine that the revenues and
5other moneys available for a project will be sufficient to pay debt
6service on the bonds and to operate and maintain the project over
P2 1the life of the bonds consistent with the objective set forth in
2Section 64105. The authority may hire outside consultants to assist
3in making these determinations.
4(b) The authority may issue or approve the issuance of bonds
5to achieve any of its purposes under this division and bonds may
6be issued without investment grade ratings, as long as the bonds
7are sold only to qualified institutional buyers or accredited investors
8who attest upon purchase that they understand the nature of the
9risks of their investment.
The bonds may be taxable or tax exempt
10and may be sold at public or private negotiated sale. The Treasurer
11shall serve as the agent for begin insertthe end insertsale for all authority bond issues,
12and shall be reimbursed from bond proceeds to cover the
13Treasurer’s costs related to the issuance of these bonds. As used
14in this subdivision, “accredited investor” shall have the meaning
15as defined in subdivision (a) of Section 5950, and “qualified
16institutional buyer” shall have the meaning as defined in
17subdivision (h) of Section 5950.
18(c) The project sponsor may request that it be the issuer of the
19bonds. The authority may grant the request if it determines that
20the revenues and other moneys available for the project will be
21sufficient to pay debt service on the bonds and to operate and
22maintain the project over the life of the bonds. A project sponsor
23for which
the authority has granted a request that the project
24sponsor issue the bonds, in addition to any other powers it may
25have under any other law, shall have all of the powers of the
26authority under this division necessary or convenient for the
27purpose of issuing, securing, and repaying the bonds and financing
28or refinancing the project. This provision is a complete, additional,
29and alternative method of accomplishing the matters authorized,
30and the project sponsor need not comply with any other law relating
31to the issuance of bonds, financing of projects and, if applicable,
32the imposition and collection of tolls.
33(d) The authority may arrange additional credit support for the
34bond issues. However, the authority may not compel project
35sponsors to make use of that credit enhancement, nor compel them
36to contribute to it by becoming part of a common credit or by
37providing funding for a common reserve or other enhancement
38
mechanism.
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