BILL NUMBER: SB 692	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Hancock

                        FEBRUARY 22, 2013

   An act to amend Sections 6588, 53316.2, 53340, 53350, and 53363.9
of the Government Code, relating to local government.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 692, as introduced, Hancock. Local government: community
facilities districts.
   (1) The Mello-Roos Community Facilities Act of 1982 authorizes the
legislative bodies of 2 or more local agencies, at any time prior to
the adoption of the resolution of formation creating a community
facilities district or a resolution of change to alter a district, or
a resolution or resolutions authorizing issuance of bonds, to enter
into a joint community facilities agreement or into a joint exercise
of powers agreement, pursuant to the Joint Exercise of Powers Act, to
exercise any power authorized by the Mello-Roos Community Facilities
Act of 1982 with respect to the community facilities district being
created or changed if the legislative body of each entity adopts a
resolution declaring that the joint agreement would be beneficial to
the residents of that entity.
   This bill would specify that this authorization is not intended to
limit the ability of a joint powers authority created pursuant to
the Joint Exercise of Powers Act to exercise powers authorized by the
Marks-Roos Local Bond Pooling Act of 1985.
   (2) Under the Mello-Roos Community Facilities Act of 1982, after a
community facilities district has been created and authorized to
levy specified special taxes, the legislative body may, by ordinance,
levy the special taxes at the rate and apportion them in the manner
specified in the resolution forming the community facilities
district. The act also authorizes the annexation of territory to the
community facilities district by unanimous approval of the owner or
owners following the formation of that district.
   This bill would authorize the legislative body, in the case of a
community facilities district that includes property proposed to be
annexed to the district at a future date by unanimous approval, to,
by ordinance, provide for the imposition of special taxes on that
property, as specified.
   (3) The Mello-Roos Community Facilities Act of 1982 authorizes the
legislative body to, by resolution, designate a portion or portions
of the district as one or more improvement areas for purposes of the
financing of, or contributing to the financing of, specified public
facilities, as specified, and following the designation, authorizes
all proceedings for purposes of a bond election and for the purpose
of levying special taxes for payment of the bonds, or for any other
change, to apply only to the improvement area for those specified
facilities.
   This bill would authorize the legislative body to, designate a
parcel or parcels of property included in a community facilities
district by unanimous approval, as specified, as an improvement area
without additional hearings or procedures, as specified. The bill
would specify that following the designation, all proceedings for
approval of the appropriations limit, the rate and method of
apportionment and manner of collection of special taxes, and the
authorization to incur bonded indebtedness for the parcel or parcels
applies only within the improvement area.
   (4) The Mello-Roos Community Facilities Act of 1982 authorizes the
legislative body to incur bonded indebtedness, as specified, and
authorizes any refunding bonds issued to be exchanged for the bonds
to be refunded on such basis as the legislative body determines is
for the benefit of the district. The legislative body is also
authorized to sell the refunding bonds at public or private sale, and
to place the proceeds of any sale of refunding bonds for cash in the
"refunding fund" in the treasury of the local agency. The funds in
the "revolving account" are required to be secured and may be
invested in accordance with any other laws applicable to the funds of
the local agency. Existing law requires the proceeds and investments
in the "refunding fund" at the time of issuance of the refunding
bonds, as certified by a certified public accountant, to be in an
amount sufficient to pay the principal, interest, and redemption
premiums, if any, on the refunded bonds as they become due or at
designated dates prior to maturity and the designated costs of
issuance of the refunding bonds, or to pay the principal, interest,
and redemption premiums, if any, on the refunding bonds prior to the
maturity of the bonds to be refunded or prior to a designated date or
dates before the maturity of the bonds to be refunded, the principal
and any redemption premiums due on the refunded bonds at maturity or
upon that designated date or dates, and the designated costs of
issuance of the refunding bonds.
   This bill would, with regard to the proceeds and any other cash in
the "refunding fund," require those funds to be held uninvested or
invested in noncallable obligations of, or obligations guaranteed as
to principal and interest by, the United States of America or any
agency or instrumentality thereof, when those obligations are backed
by the full faith and credit of the United States of America, and
requires those proceeds to be in an amount sufficient to pay the
principal, interest, and redemption premiums, if any, on the refunded
bonds as they become due or at designated dates prior to maturity,
in which case certification of a certified public accountant is not
required.
   (5) The Joint Exercise of Powers Act authorizes the legislative or
other governing bodies of 2 or more public agencies to jointly
exercise by agreement any power common to the contracting parties, as
specified, and authorizes that joint powers authority to exercise
various powers, including, among others, the power to 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 that the
authority determines are necessary or convenient for the financing of
public capital improvements, or any portion thereof.
   This bill would additionally authorize the joint powers authority
to lease lands, structures, real or personal property, rights,
rights-of-way, franchises, easements, and other interests in lands
that are located within the state that the authority determines are
necessary or convenient for the financing of public capital
improvements, or any portion thereof.
   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 6588 of the Government Code is amended to read:

   6588.  In addition to other powers specified in an agreement
pursuant to Article 1 (commencing with Section 6500) and Article 2
(commencing with Section 6540), the authority may do any or all of
the following:
   (a) Adopt bylaws for the regulation of its affairs and the conduct
of its business.
   (b) Sue and be sued in its own name.
   (c) Issue bonds, including, at the option of the authority, bonds
bearing interest, to pay the cost of any public capital improvement,
working capital, or liability or other insurance program. In
addition, for any purpose for which an authority may execute and
deliver or cause to be executed and delivered certificates of
participation in a lease or installment sale agreement with any
public or private entity, the authority, at its option, may issue or
cause to be issued bonds, rather than certificates of participation,
and enter into a loan agreement with the public or private entity.
   (d) Engage the services of private consultants to render
professional and technical assistance and advice in carrying out the
purposes of this article.
   (e) As provided by applicable law, employ and compensate bond
counsel, financial consultants, and other advisers determined
necessary by the authority in connection with the issuance and sale
of any bonds.
   (f) Contract for engineering, architectural, accounting, or other
services determined necessary by the authority for the successful
development of a public capital improvement.
   (g) Pay the reasonable costs of consulting engineers, architects,
accountants, and construction, land-use, recreation, and
environmental experts employed by any sponsor or participant if the
authority determines those services are necessary for the successful
development of public capital improvements.
   (h) Take title to,  and  sell by installment sale
or otherwise,  or lease  lands, structures, real or
personal property, rights, rights-of-way, franchises, easements, and
other interests in lands that are located within the state that the
authority determines are necessary or convenient for the financing of
public capital improvements, or any portion thereof.
   (i) Receive and accept from any source, loans, contributions, or
grants, in either money, property, labor, or other things of value,
for, or in aid of, the construction financing, or refinancing of
public capital improvement, or any portion thereof or for the
financing of working capital or insurance programs, or for the
payment of the principal of and interest on bonds if the proceeds of
those bonds are used for one or more of the purposes specified in
this section.
   (j) Make secured or unsecured loans to any local agency in
connection with the financing of capital improvement projects,
working capital or insurance programs in accordance with an agreement
between the authority and the local agency. However, no loan shall
exceed the total cost of the public capital improvements, working
capital or insurance needs of the local agency as determined by the
local agency and by the authority.
   (k) Make secured or unsecured loans to any local agency in
accordance with an agreement between the authority and the local
agency to refinance indebtedness incurred by the local agency in
connection with public capital improvements undertaken and completed.

   (l) Mortgage all or any portion of its interest in public capital
improvements 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.
   (m) Assign or pledge all or any portion of its interests in
mortgages, deeds of trust, indentures of mortgage or trust, or
similar instruments, notes, and security interests in property,
tangible or intangible, of a local agency to which the authority has
made loans, and the revenues therefrom, including payment or income
from any interest owned or held by the authority, for the benefit of
the holders of bonds issued to finance public capital improvements.
The pledge of moneys, revenues, accounts, contract rights, or rights
to payment of any kind made by or to the authority pursuant to the
authority granted in this part shall be valid and binding from the
time the pledge is made for the benefit of the pledgees and
successors thereto, against all parties irrespective of whether the
parties have notice of the claim.
   (n) Lease the public capital improvements being financed to a
local agency, upon terms and conditions that the authority deems
proper; charge and collect rents therefor; terminate any lease upon
the failure of the lessee to comply with any of the obligations of
the lease; include in any lease provisions that the lessee shall have
options to renew the lease for a period or periods, and at rents as
determined by the authority; purchase or sell by an installment
agreement or otherwise any or all of the public capital improvements;
or, upon payment of all the indebtedness incurred by the authority
for the financing or refinancing of the public capital improvements,
the authority may convey any or all of the project to the lessee or
lessees.
   (o) Charge and apportion to local agencies that benefit from its
services the administrative costs and expenses incurred in the
exercise of the powers authorized by this article. These fees shall
be set at a rate sufficient to recover, but not exceed, the authority'
s costs of issuance and administration. The fee charged to each local
obligation acquired by the pool shall not exceed that obligation's
proportionate share of those costs. The level of these fees shall be
disclosed to the California Debt and Investment Advisory Commission
pursuant to Section 6599.1.
   (p) Issue, obtain, or aid in obtaining, from any department or
agency of the United States or of the state, or 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 article.
   (q) Notwithstanding any other provision of this article, 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 local agency; and
assign any insurance or guarantee that acts as security for the
authority's bonds.
   (r) Enter into any agreement or contract, execute any instrument,
and perform any act or thing necessary, convenient, or desirable to
carry out any power authorized by this article.
   (s) 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.
   (t) At the request of affected local agencies, combine and pledge
revenues to public capital improvements for repayment of one or more
series of bonds issued pursuant to this article.
   (u) Delegate to any of its individual parties or other responsible
individuals the power to act on its behalf subject to its general
direction, guidelines, and oversight.
   (v) Purchase, with the proceeds of its bonds or its revenue, bonds
issued by any local agency at public or negotiated sale. Bonds
purchased pursuant to this subdivision may be held by the authority
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 authority.
   (w) Purchase, with the proceeds of its bonds or its revenue, VLF
receivables sold to the authority pursuant to Section 6588.5. VLF
receivables so purchased may be pledged to the payment of bonds
issued by the authority or may be resold to public or private
purchasers at public or negotiated sale, in whole or in part,
separately or together with other VLF receivables purchased by the
authority.
   (x) (1) Purchase, with the proceeds of its bonds or its revenue,
Proposition 1A receivables pursuant to Section 6588.6. Proposition 1A
receivables so purchased may be pledged to the payment of bonds
issued by the authority or may be resold to public or private
purchasers at public or negotiated sales, in whole or in part,
separately or together with other Proposition 1A receivables
purchased by the authority.
   (2) (A) All entities subject to a reduction of ad valorem property
tax revenues required under Section 100.06 of the Revenue and
Taxation Code pursuant to the suspension set forth in Section 100.05
of the Revenue and Taxation Code shall be afforded the opportunity to
sell their Proposition 1A receivables to the authority.
   (B) If these entities offer Proposition 1A receivables to the
authority for purchase and duly authorize the sale of the Proposition
1A receivable pursuant to documentation approved by the authority,
the authority shall purchase all Proposition 1A receivables so
offered to the extent it can sell bonds therefor. If the authority
does not purchase all Proposition 1A receivables offered, it shall
purchase a pro rata share of each entity's offered Proposition 1A
receivables.
   (C) The authority may establish a deadline, no earlier than
November 3, 2009, by which these entities shall offer their
Proposition 1A receivables for sale to the authority and complete the
application required by the authority.
   (3) For purposes of meeting costs incurred in performing its
duties relative to the purchase and sale of Proposition 1A
receivables, the authority shall be authorized to charge a fee to
each entity from which it purchases a Proposition 1A receivable. The
fee shall be computed based on the percentage value of the
Proposition 1A receivable purchased from each entity, in relation to
the value of all Proposition 1A receivables purchased by the
authority. The amount of the fee shall be paid from the proceeds of
the bonds and shall be included in the principal amount of the bonds.

   (4) Terms and conditions of any and all fees and expenses charged
by the authority, or those it contracts with, and the terms and
conditions of sales of Proposition 1A receivables and bonds issued
pursuant to this subdivision, including the terms of optional early
redemption provisions, if any, shall be approved by the Treasurer and
the Director of Finance, who shall not unreasonably withhold their
approval. The aggregate principal amount of all bonds issued pursuant
to this subdivision shall not exceed two billion two hundred fifty
million dollars ($2,250,000,000), and the rate of interest paid on
those bonds shall not exceed 8 percent per annum. The authority shall
exercise its best efforts to obtain the lowest cost financing
possible. Any and all premium obtained shall be used for either of
the following:
   (A) Applied to pay the costs of issuance of the bonds.
   (B) Deposited in a trust account that is pledged to bondholders
and used solely for the payment of interest on, or for repayment of,
the bonds.
   (5) (A) In connection with any financing backed by Proposition 1A
receivables, the Treasurer may retain financial advisors, legal
counsel, and other consultants to assist in performing the duties
required by this chapter and related to that financing.
   (B) Notwithstanding any other  provision of  law,
none of the following shall apply to any agreements entered into by
the Treasurer pursuant to subparagraph (A) in connection with any
Proposition 1A financing:
   (i) Section 11040 of the Government Code.
   (ii) Section 10295 of the Public Contract Code.
   (iii) Article 3 (commencing with Section 10300) and Article 4
(commencing with Section 10335) of, Chapter 2 of Part 2 of Division 2
of the Public Contract Code, except for the authority of the
Department of Finance under Section 10336 of the Public Contract Code
to direct a state agency to transmit to it a contract for review,
and except for Section 10348.5 of the Public Contract Code.
   (C) Any costs incurred by the Treasurer in connection with any
Proposition 1A financing shall be reimbursed out of the proceeds of
the financing.
   (y) Set any other terms and conditions on any purchase or sale
pursuant to this section as it deems by resolution to be necessary,
appropriate, and in the public interest, in furtherance of the
purposes of this article.
  SEC. 2.  Section 53316.2 of the Government Code is amended to read:

   53316.2.  (a) A community facilities district may finance
facilities to be owned or operated by a public agency other than the
agency that created the district, or services to be provided by a
public agency other than the agency that created the district, or any
combination, only pursuant to a joint community facilities agreement
or a joint exercise of powers agreement adopted pursuant to this
section. A joint community facilities agreement or a joint exercise
of powers agreement with a state or federal agency shall not be
required if the local agency that created the district is the agency
that would, in the absence of the district, enter into an agreement
with the state or federal agency for the provision of the facilities
or services, or if the local agency that created the district enters
into a joint agreement with the public agency that would, in the
absence of the district, enter into an agreement with the state or
federal agency for the provision of the facilities or services.
   (b) At any time prior to the adoption of the resolution of
formation creating a community facilities district or a resolution of
change to alter a district, or a resolution or resolutions
authorizing issuance of bonds pursuant to Section 53356, the
legislative bodies of two or more local agencies may enter into a
joint community facilities agreement pursuant to this section and
Sections 53316.4 and 53316.6 or into a joint exercise of powers
agreement pursuant to the Joint Exercise of Powers Act (Chapter 5
(commencing with Section 6500) of Division 7 of Title 1) to exercise
any power authorized by this chapter with respect to the community
facilities district being created or changed if the legislative body
of each entity adopts a resolution declaring that the joint agreement
would be beneficial to the residents of that entity.  This
subdivision shall not be construed to limit the ability of a joint
powers authority created pursuant to the Joint Exercise of Powers Act
to exercise the powers authorized by the Joint Exercise of Powers
Act. 
   (c) Notwithstanding the Joint Exercise of Powers Act, a
contracting party may use the proceeds of any special tax or charge
levied pursuant to this chapter or, in the case of facilities, of any
bonds or other indebtedness issued pursuant to this chapter to
provide facilities or services which that contracting party is
otherwise authorized by law to provide, even though another
contracting party does not have the power to provide those facilities
or services.
   (d) Notwithstanding subdivision (b), nothing in this section shall
prevent entry into or amendment of a joint community facilities
agreement or a joint exercise of powers agreement at any time, if the
new agreement or amendment is necessary, as determined by the
legislative body, for either of the following reasons:
   (1) To allow an orderly transition of governmental facilities and
finances in the case of any change in governmental organization
approved pursuant to the Cortese-Knox-Hertzberg Local Government
Reorganization Act of 2000 (Division 3 (commencing with Section
56000) of Title 5) or other law governing the reorganization of any
agency that is a party to the agreement.
   (2) To allow participation in the agreement by a state or federal
agency, including, but not limited to, the California Department of
Transportation. Participation in an agreement by a state or federal
agency is purely optional.
   (e) Notwithstanding any other provision of this chapter, no local
agency that is party to a joint exercise of powers agreement or joint
community facilities agreement shall have primary responsibility for
formation of a district, or for an extension of authorized
facilities and services or a change in special taxes pursuant to
Article 3 (commencing with Section 53330), unless that local agency
is one or more of the following:
   (1) A city, a county, or a city and county.
   (2) An agency created pursuant to a joint powers agreement that is
separate from the parties to the agreement, is responsible for the
administration of the agreement, and is subject to the notification
requirement of Section 6503.5.
   (3) An agency that is reasonably expected to have responsibility
for providing facilities or services to be financed by a larger share
of the proceeds of special taxes and bonds of the district or
districts created or changed pursuant to the joint exercise of powers
agreement or the joint community facilities agreement than any other
local agency.
  SEC. 3.  Section 53340 of the Government Code is amended to read:
   53340.  (a) After a community facilities district has been created
and authorized to levy specified special taxes pursuant to Article 2
(commencing with Section 53318), Article 3 (commencing with Section
53330), or Article 3.5 (commencing with Section 53339), the
legislative body may, by ordinance, levy the special taxes at the
rate and apportion them in the manner specified in the resolution
adopted pursuant to Article 2 (commencing with Section 53318),
Article 3 (commencing with Section 53330), or Article 3.5 (commencing
with Section 53339).  After creation of a community facilities
district that includes territory proposed for annexation in the
future by unanimous approval as described in subdivision (b) of 
 Section 53339.3, the legislative body may, by ordinance,
provide for the levy of   special taxes on parcels that will
be annexed to the community facilities district at the rate or rates
to be approved unanimously by the owner or owners of each parcel or
parcels to be annexed to the community facilities district and for
apportionment and collection of the special taxes in the manner
specified in the resolution of formation. 
   (b) The legislative body may provide, by resolution, for the levy
of the special tax in the current tax year or future tax years at the
same rate or at a lower rate than the rate provided by the
ordinance, if the resolution is adopted and a certified list of all
parcels subject to the special tax levy including the amount of the
tax to be levied on each parcel for the applicable tax year, is filed
by the clerk or other official designated by the legislative body
with the county auditor on or before the 10th day of August of that
tax year. The clerk or other official designated by the legislative
body may file the certified list after the 10th of August but not
later than the 21st of August if the clerk or other official obtains
prior written consent of the county auditor.
   (c) Properties or entities of the state, federal, or local
governments shall, except for properties that a local agency is a
landowner of within the meaning of subdivision (f) of Section 53317,
or except as otherwise provided in Section 53317.3, be exempt from
the special tax. No other properties or entities are exempt from the
special tax unless the properties or entities are expressly exempted
in the resolution of formation to establish a district adopted
pursuant to Section 53325.1 or in a resolution of consideration to
levy a new special tax or special taxes or to alter the rate or
method of apportionment of an existing special tax as provided in
Section 53334.
   (d) The proceeds of any special tax may only be used to pay, in
whole or part, the cost of providing public facilities, services, and
incidental expenses pursuant to this chapter.
   (e) The special tax shall be collected in the same manner as
ordinary ad valorem property taxes are collected and shall be subject
to the same penalties and the same procedure, sale, and lien
priority in case of delinquency as is provided for ad valorem taxes,
unless another procedure has been authorized in the resolution of
formation establishing the district and adopted by the legislative
body.
   (f) (1) Notwithstanding subdivision (e), the legislative body of
the district may waive all or any specified portion of the
delinquency penalties and redemption penalties if it makes all of the
following determinations:
   (A) The waivers shall apply only to parcels delinquent at the time
of the determination.
   (B) The waivers shall be available only with respect to parcels
for which all past due and currently due special taxes and all other
costs due are paid in full within a limited period of time specified
in the determination.
   (C) The waivers shall be available only with respect to parcels
sold or otherwise transferred to new owners unrelated to the owner
responsible for the delinquency.
   (D) The waivers are in the best interest of the debtholders.
   (2) The charges with penalties to be waived shall be removed from
the tax roll pursuant to Section 53356.2 and local administrative
procedures, and any distributions made to the district prior to
collection pursuant to Chapter 3 (commencing with Section 4701) of
Part 8 of Division 1 of the Revenue and Taxation Code shall be repaid
by the district prior to granting the waiver.
   (g) The tax collector may collect the special tax at intervals as
specified in the resolution of formation, including intervals
different from the intervals determining when the ordinary ad valorem
property taxes are collected. The tax collector may deduct the
reasonable administrative costs incurred in collecting the special
tax.
   (h) All special taxes levied by a community facilities district
shall be secured by the lien imposed pursuant to Section 3115.5 of
the Streets and Highways Code. This lien shall be a continuing lien
and shall secure each levy of special taxes. The lien of the special
tax shall continue in force and effect until the special tax
obligation is prepaid, permanently satisfied, and canceled in
accordance with Section 53344 or until the special tax ceases to be
levied by the legislative body in the manner provided in Section
53330.5. If any portion of a parcel is encumbered by a lien pursuant
to this chapter, the entirety of the parcel shall be encumbered by
that lien.
  SEC. 4.  Section 53350 of the Government Code is amended to read:
   53350.   (a)    For purposes of financing of, or
contributing to the financing of, specified public facilities, the
legislative body may by resolution designate a portion or portions of
the district as one or more improvement areas. An area shall be
known as "Improvement Area No. ____" of "Community Facilities
District ____." After the designation of an improvement area, all
proceedings for purposes of a bond election and for the purpose of
levying special taxes for payment of the bonds, or for any other
change pursuant to Article 3 (commencing with Section 53330), shall
apply only to the improvement area for those specified facilities.

   (b) In connection with the annexation by unanimous approval to a
community facilities district of a parcel that was included in
territory proposed for annexation in the future to the community
facilities district, as described in Section 53329.6, the local
agency may, without additional hearings or procedures, designate a
parcel or parcels as an improvement area within the community
facilities district. After the designation of a parcel or parcels as
an improvement area, all proceedings for approval of the
appropriations limit, the rate and method of apportionment and manner
of collection of special taxes, and the authorization to incur
bonded indebtedness for the parcel or parcels shall apply only to the
improvement area. 
  SEC. 5.  Section 53363.9 of the Government Code is amended to read:

   53363.9.   (a)    The proceeds and investments
in the "refunding fund" shall be in an amount sufficient to meet
either the requirements of  paragraph (a) or paragraph (b)
    paragraph (1) or   paragraph (2)
 at the time of issuance of the refunding bonds, as certified by
a certified public accountant licensed to practice in this state.

   (a) 
    (1)  The proceeds and investments, together with any
interest or other gain to be derived from any such investment, shall
be in an amount sufficient to pay the principal, interest, and
redemption premiums, if any, on the refunded bonds as they become due
or at designated dates prior to maturity and the designated costs of
issuance of the refunding bonds. 
   (b) 
    (2)  The proceeds and investments, together with any
interest or other gain to be derived from any such investment, shall
be in an amount sufficient to pay the principal, interest, and
redemption premiums, if any, on the refunding bonds prior to the
maturity of the bonds to be refunded or prior to a designated date or
dates before the maturity of the bonds to be refunded, the principal
and any redemption premiums due on the refunded bonds at maturity or
upon that designated date or dates, and the designated costs of
issuance of the refunding bonds. 
   (b) The proceeds and any other cash in the "refunding fund" shall
be held uninvested or shall be invested in noncallable obligations
of, or obligations guaranteed as to principal and interest by, the
United States of America or any agency or instrumentality thereof,
when those obligations are backed by the full faith and credit of the
United States of America, and shall be in an amount sufficient to
pay the principal, interest, and redemption premiums, if any, on the
refunded bonds as they become due or at designated dates prior to
maturity, in which case certification of a certified public
accountant licensed to practice in this state shall not be required.