BILL ANALYSIS                                                                                                                                                                                                    �






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: AB 1070
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  frazier
                                                         VERSION: 4/3/13
          Analysis by:  Eric Thronson                    FISCAL:  yes
          Hearing date:  June 18, 2013



          SUBJECT:

          California Transportation Financing Authority

          DESCRIPTION:

          This bill clarifies that specific bond issuance powers and  
          responsibilities may apply to either the California  
          Transportation Financing Authority or the project sponsor.

          ANALYSIS:

          Existing law establishes the California Transportation Financing  
          Authority (CTFA) within the California State Treasurer's Office  
          to assist transportation agencies in obtaining financing for  
          transportation projects.  The objective of CTFA is to increase  
          new capacity in the state transportation system in a manner  
          consistent with the state's greenhouse gas reduction, air  
          quality improvement, and natural resource conservation goals.   
          CTFA will accomplish this one of two ways:

                 Issuing revenue bonds directly; or

                 Approving a project sponsor's issuance of bonds backed  
               by specified transportation-related revenues.  

          Existing law grants certain powers and responsibilities to the  
          revenue bond issuer, such as ensuring that the project financed  
          with the bonds is technically feasible, conforms to federal  
          standards, and meets environmental requirements.

           This bill  clarifies that specific bond issuance powers and  
          responsibilities may apply to CTFA or the CTFA-approved project  
          sponsor and makes conforming changes to CTFA enabling statutes.
          
          COMMENTS:

           1.Purpose  .  According to the author, paying for transportation  




          AB 1070 (FRAZIER)                                      Page 2

                                                                       


            projects has grown increasingly difficult.  CTFA provides an  
            alternative financing mechanism for local and regional  
            entities to support transportation solutions.  The author  
            contends, however, that some CTFA provisions need  
            clarification, specifically to whom certain bond issuance  
            powers and responsibilities are assigned.  This bill makes the  
            technical changes necessary to clarify that the bond issuer,  
            whether CTFA or the project sponsor, is responsible to meet  
            the statutory requirements.

           2.Double-referral  .  The Rules Committee has referred this bill  
            to both this committee and the Governance and Finance  
            Committee.  Therefore, if this bill passes this committee, it  
            will be referred to the Committee on Governance and Finance.
          
          Assembly Votes:
               Floor:    75-0
               Appr: 17-0
               Trans:    16-0

          POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,                                             June 12,  
          2013.)

               SUPPORT:  Treasurer Bill Lockyer (sponsor)

               OPPOSED:  None received.