BILL NUMBER: SB 444	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator De León

                        FEBRUARY 21, 2013

   An act to amend Section 64111 of the Government Code, relating to
transportation financing.


	LEGISLATIVE COUNSEL'S DIGEST


   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 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  the  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. 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.