BILL ANALYSIS �
AB 1070
Page 1
Date of Hearing: May 1, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1070 (Frazier) - As Amended: April 3, 2013
Policy Committee:
TransportationVote:16-0 (Consent)
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill makes several clarifications to provisions regarding
the California Transportation Financing Authority (CFTA), within
the State Treasurer's Office. Specifically, this bill:
1)Defines "issuer" to mean CTFA when it is issuing bonds or the
project sponsor when CTFA has granted the project sponsor
authority to issue bonds.
2)Clarifies which of the existing powers and responsibilities
reside with the bond issuer, whether that be CTFA or the
project sponsor, regarding complying with relevant statutes
applicable to project planning, programming, and construction
of transportation; cooperating with Caltrans to secure support
for the project and consistency with the needs of the state
highway system; and ensuring technical feasibility of the
project and conformance with federal standards and
environmental requirements.
FISCAL EFFECT
Negligible fiscal impact. Though the authority currently has no
staff or expenditures, the potential cost of the authority and
related fiscal impacts were accounted for in the authorizing
legislation.
COMMENTS
AB 1070
Page 2
1)Background . CTFA was established by AB 798 (Nava)/Chapter 474
of 2009, to provide alternative financing mechanisms for
state, regional, and transportation agencies to finance
transportation projects. CTFA is specifically vested with
authority to issue or approve the issuance of revenue bonds to
finance transportation projects, as defined, which meet
certain criteria. CTFA may also authorize a project sponsor to
impose and collect tolls as one source of revenue to pay debt
service and to operate and maintain a project. Since enactment
of AB 798, however, CTFA has not received a formal request for
financing or refinancing a project.
One of the specific powers granted to CTFA is the ability to
authorize a project sponsor to issue bonds. Some of the
provisions in the enabling statute are not clear, however, as
to whom certain bond issuance powers and responsibilities
reside, particularly in cases where CTFA might grant a project
sponsor the authority to issue bonds.
2)Purpose . AB 1070 makes technical changes to clarify that
specific authority provided through AB 798 applies to whoever
issues bonds, be it CTFA or the project sponsor. This bill's
sponsor, State Treasurer Bill Lockyer, asserts the technical
clarifications being made in the bill will "increase the
likelihood that CTFA can better reduce traffic congestion and
meet its mission of improving the state transportation system
in ways that will help achieve the state's greenhouse gas
reduction, air quality improvement, and natural resource
conservation goals without compromising financial viability."
3)Related Legislation . AB 886 (Allen), pending in Assembly
Revenue and Taxation, establishes a five-year, $500 million
tax credit program, to be administered by CTFA, for importers
and exporters that increase cargo through California air and
sea ports, hire additional staff, or incur capital costs at a
California cargo facility.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081