Amended in Senate April 4, 2013

Senate Bill No. 444

Introduced by Senator begin delete De León end delete begin insert Hueso end insert

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(Coauthor: Assembly Member V. Manuel Pérez)

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February 21, 2013

An act to amend Section begin delete 64111 end delete begin insert 386 end insert of the begin delete Government end delete begin insert Streets and Highways end insert Code, relating to begin delete transportation financing end delete begin insert highways end insert .

LEGISLATIVE COUNSEL’S DIGEST

SB 444, as amended, begin delete De León end delete   begin insert Hueso end insert . begin delete California Transportation Financing Authority. end delete begin insert State Highway Route 86: relinquishment. end insert

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Existing law gives the Department of Transportation full possession and control of all state highways. Existing law describes the authorized routes in the state highway system and establishes a process for adoption of a highway on an authorized route by the California Transportation Commission. Existing law also authorizes the commission to relinquish certain state highway segments to local agencies.

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This bill would authorize the commission to relinquish to the Cities of Brawley, El Centro, and Imperial and the County of Imperial specified portions of State Highway Route 86 under certain conditions. This bill would also redesignate a specified portion of State Highway Route 86 as a part of State Highway Route 78 following relinquishment. This bill would require the relinquishments to be done at no cost to the state, unless the commission makes a finding of need.

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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.

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This bill would make a technical, nonsubstantive change to these provisions.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

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begin insert SECTION 1. end insert   

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begin insert Section 386 of the end insert begin insert Streets and Highways Code end insert begin insert is
amended to read: end insert

386.  

begin insert (a) end insert begin insert   end insert Route 86 is from:

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(a)

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begin insert (1) end insert  Route 111 to Route 8 near El Centro.

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(b)

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begin insert (2) end insert  Route 8 near El Centro to Route 10 in Indio via the vicinity
of Brawley.

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(b) Upon a determination by the commission that it is in the
best interests of the state to do so, the commission may, upon terms
and conditions approved by it, relinquish the following portions
of Route 86, if the department and the applicable local agency
enter into an agreement providing for that relinquishment, as
follows:

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(1) To the County of Imperial, the portion of Route 86 from the
beginning of the route at the junction of Route 111 to Duff Road.

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(2) To the City of El Centro, the portion of Route 86 from Duff
Road to Treshill Road.

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(3) To the City of Imperial, the portion of Route 86 from Treshill
Road to Ralph Road.

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(4) To the County of Imperial, the portion of Route 86 from
Ralph Road to 0.3 mile south of Legion Road.

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(5) To the City of Brawley, the portion of Route 86 from 0.3
miles south of Legion Road to 0.5 mile south of Fredericks Road.

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(c) The following conditions shall apply upon relinquishment:

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(1) The relinquishment shall become effective on the date
following the county recorder’s recordation of the relinquishment
resolution containing the commission’s approval of the terms and
conditions of the relinquishment.

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(2) On and after the effective date of the relinquishment, the
relinquished portions of Route 86 shall cease to be a state highway.

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(3) The portions of Route 86 relinquished under this subdivision
shall be ineligible for future adoption under Section 81.

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(4) The Cities of Brawley, El Centro, and Imperial and the
County of Imperial shall ensure the continuity of traffic flow on
the relinquished portions of Route 86, including any traffic signal
progression.

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(5) For the portions of Route 86 that are relinquished under
this subdivision, the Cities of Brawley, El Centro, and Imperial,
and the County of Imperial shall install and maintain, within their
respective jurisdictions, the city or county signs directing motorists
to the continuation of Route 86 to the extent deemed necessary by
the department.

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(d) Following the relinquishments authorized in subdivision
(b), the portion of Route 86 from 0.5 mile south of Fredricks Road
to the north junction of Route 78 shall be redesignated as a part
of Route 78.

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(e) The relinquishments authorized in subdivision (b) shall be
done at no cost to the state except upon a finding of need by the
commission.

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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.

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