Bill Text: CA AB1070 | 2013-2014 | Regular Session | Chaptered
Bill Title: California Transportation Financing Authority.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2013-08-28 - Chaptered by Secretary of State - Chapter 198, Statutes of 2013. [AB1070 Detail]
Download: California-2013-AB1070-Chaptered.html
BILL NUMBER: AB 1070 CHAPTERED
BILL TEXT
CHAPTER 198
FILED WITH SECRETARY OF STATE AUGUST 28, 2013
APPROVED BY GOVERNOR AUGUST 28, 2013
PASSED THE SENATE AUGUST 15, 2013
PASSED THE ASSEMBLY MAY 9, 2013
AMENDED IN ASSEMBLY APRIL 3, 2013
INTRODUCED BY Assembly Member Frazier
FEBRUARY 22, 2013
An act to amend Sections 64102, 64107, 64109, 64110, 64111, 64112,
64115, 64116, 64117, 64118, 64119, 64120, 64121, 64124, 64125,
64126, 64127, and 64132 of, and to add Section 64107.5 to, the
Government Code, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 1070, Frazier. California Transportation Financing Authority.
The California Transportation Financing Authority Act creates the
California Transportation Financing Authority, with specified powers
and duties relative to issuance of bonds to fund transportation
projects to be backed, in whole or in part, by various revenue
streams of transportation funds, and toll revenues under certain
conditions, in order to increase the construction of new capacity or
improvements for the state transportation system consistent with
specified goals. Existing law, subject to certain conditions,
authorizes the authority to grant a request that a project sponsor,
rather than the authority, be the issuer of the bonds.
This bill would revise the act to further define the roles of the
authority and an issuer of bonds under the act if the project
sponsor, rather than the authority, is the issuer of bonds, and would
define "issuer" in that regard. The bill would make other related
changes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 64102 of the Government Code is amended to
read:
64102. As used in this division, the following terms shall have
the following meanings, unless the context clearly indicates or
requires another or different meaning or intent:
(a) "Authority" shall mean the California Transportation Financing
Authority.
(b) "Bonds" shall mean bonds, notes, debentures, commercial paper,
or any other evidence of indebtedness, lease, installment, sale, or
certificate of participation thereon, issued by the authority or a
project sponsor pursuant to this division.
(c) "Commission" shall mean the California Transportation
Commission.
(d) "Cost," as applied to a project or portion of a project
financed under this division, shall mean and include all or any part
of the cost of construction and acquisition of all lands, structures,
real or personal property rights, rights-of-way, franchises,
easements, and interests acquired or used for a project, the cost of
demolishing or removing any buildings or structures on land so
acquired, including the cost of acquiring any lands to which those
buildings or structures may be moved, the cost of all machinery and
equipment, financing charges, interest prior to, during, and for a
period not to exceed the later of one year or one year following
completion of construction, as determined by the authority, the cost
of insurance during construction, the cost of funding or financing
noncapital expenses, reserves for principal and interest and for
extensions, enlargements, additions, replacements, renovations, and
improvements, the cost of engineering, architectural, financial,
legal, and other necessary services, plans, specifications, studies,
surveys, estimates, administrative expenses, and other expenses of
funding or financing, that are necessary or incident to determining
the feasibility of any project, or that are incident to the
construction, rehabilitation, acquisition, or financing of any
project.
(e) "Department" shall mean the Department of Transportation.
(f) "Issuer" shall mean the authority when the authority is the
issuer of the bonds, and shall mean the project sponsor when the
authority has authorized the project sponsor to be the issuer of the
bonds.
(g) "Project" shall mean and include all or a portion of the
planning, design, development, finance, construction, reconstruction,
rehabilitation, improvement, acquisition, lease, operation, or
maintenance of highway, public street, rail, bus, or related
facilities supplemental to or improvements upon existing facilities
currently owned or operated by the department or other project
sponsor. A rail project may consist of, or include, rolling stock.
(h) "Project sponsor" shall mean either the department, a regional
transportation planning agency designated pursuant to Section 29532
or 29532.1, a county transportation commission as defined in Section
130050, 130050.1, or 130050.2 of the Public Utilities Code, any other
local or regional transportation entity that is designated by
statute as a regional transportation agency, or a joint exercise of
powers authority as defined in Chapter 5 (commencing with Section
6500) of Division 7 of Title 1 or an agency designated pursuant to
Section 66531 to submit the county transportation plan, with the
consent of a transportation planning agency or a county
transportation commission for the jurisdiction in which the
transportation project will be developed.
(i) "Working capital" means moneys to be used by, or on behalf of,
a project sponsor to pay or prepay maintenance or operation expenses
or any other costs that would be treated as an expense item, under
generally accepted accounting principles, in connection with the
ownership or operation of a project, including, but not limited to,
reserves for maintenance or operation expenses, interest for a period
not to exceed one year on any loan for working capital made pursuant
to this division, and reserves for debt service with respect to, and
any costs necessary or incidental to, that financing.
SEC. 2. Section 64107 of the Government Code is amended to read:
64107. The authority may do any of the following:
(a) Adopt bylaws for the regulation of its affairs and the conduct
of its business.
(b) Adopt an official seal.
(c) Sue and be sued in its own name.
(d) Receive and accept from any agency of the United States, any
agency of the state, or any municipality, county, or other political
subdivision thereof, or from any individual, association, or
corporation gifts, grants, or donations of moneys for achieving any
of the purposes of this division.
(e) Engage the services of private consultants to render
professional and technical assistance and advice in carrying out the
purposes of this division.
(f) Receive and accept from any source loans, contributions, or
grants for, or in aid of, the construction, financing, or refinancing
of a project or any portion of a project in money, property, labor,
or other things of value.
(g) Make secured or unsecured loans to, or purchase secured or
unsecured loans of, any project sponsor in connection with the
financing of a project or working capital in accordance with an
agreement between the authority and the project sponsor. However, no
loan to finance a project shall exceed the total cost of the project,
as determined by the project sponsor and approved by the authority.
(h) Make secured or unsecured loans to, or purchase secured or
unsecured loans of, any project sponsor in accordance with an
agreement between the authority and the project sponsor to refinance
indebtedness incurred by that project sponsor for the costs of
projects undertaken or for projects acquired or for working capital.
(i) Mortgage all or any portion of the interest of the authority
in a project and the property on which that project is located,
whether owned or thereafter acquired, including the granting of a
security interest in any property, tangible or intangible, and to
assign or pledge all or any portion of the interests of the authority
in mortgages, deeds of trust, indentures of mortgage or trust, or
similar instruments, notes, and security interests in property,
tangible or intangible, of projects for which the authority has made
loans, and the revenues therefrom, including payments or income from
any thereof owned or held by the authority, for the benefit of the
holders of bonds issued to finance or refinance a project or issued
to refund or refinance outstanding indebtedness of project sponsors
as permitted by this division.
(j) Charge and equitably apportion among project sponsors, the
administrative costs and expenses incurred by the authority in the
exercise of its powers and duties conferred by this division.
(k) Participate in all things necessary and convenient to carry
out its purposes and exercise its powers.
SEC. 3. Section 64107.5 is added to the Government Code, to read:
64107.5. The authority or issuer may do any of the following:
(a) Obtain, or aid in obtaining, from any department or agency of
the United States or of the state, any private company, any insurance
or guarantee as to, of, or for the payment or repayment of, interest
or principal, or both, or any part thereof, on any bond, loan,
lease, or obligation, or any instrument evidencing or securing the
loan, lease, or obligation, made or entered into pursuant to this
division; and notwithstanding any other provisions of this division,
to enter into any agreement, contract, or any other instrument
whatsoever with respect to that insurance or guarantee, to accept
payment in the manner and form as provided therein in the event of
default by a project sponsor, and to assign that insurance or
guarantee as security for the issuer's bonds.
(b) Enter into any and all agreements or contracts, including
agreements for liquidity and credit enhancement and interest rate
swaps or hedges, execute any and all instruments, and do and perform
any and all acts or things necessary, convenient, or desirable for
the purposes of the issuer or to carry out any power expressly
granted by this division.
(c) Invest any moneys held in reserve or sinking funds or any
moneys not required for immediate use or disbursement, at the
discretion of the issuer, in any obligations authorized by the
resolution authorizing the issuance of the bonds secured thereof or
authorized by law for the investment of trust funds in the custody of
the Treasurer.
(d) Employ and fix the compensation of bond counsel, financial
consultants, and advisers as may be necessary in its judgment in
connection with the issuance and administration of any bonds and
contract for engineering, architectural, accounting, or other
services as may be necessary in the judgment of the issuer for the
successful development of any project.
SEC. 4. Section 64109 of the Government Code is amended to read:
64109. (a) To the extent permitted by law, in connection with any
project financed or refinanced pursuant to this division, the
project sponsor may pledge the following revenue sources as security
for revenue bonds issued under this division:
(1) Local transportation funds, including, but not limited to,
fuel taxes, Article XIX B fuel sales taxes, local transportation
sales taxes, other state revenues approved for this purpose by the
Legislature or by initiative, and developer fees. To the extent that
these revenue sources are within the control of a local agency, the
revenue sources may only be pledged with approval of the governing
board of the local agency. To the extent that these revenues are
within the control of a state agency, the revenue sources may only be
pledged with approval by the department and the commission.
(2) Tolls, on facilities where not otherwise prohibited by
statute, collected by a project sponsor with the approval of the
authority.
(b) Where the authority is issuing bonds to finance or refinance a
project, the authority shall accept a project sponsor's pledge made
pursuant to subdivision (a) and pledge those revenues to the
repayment of bonds issued to finance or refinance the applicable
project.
SEC. 5. Section 64110 of the Government Code is amended to read:
64110. (a) A project sponsor may apply to the authority for bond
issuance by the authority or project sponsor for a transportation
project that has been approved by the department and the commission
for construction.
(b) The authority shall also ensure that the following
requirements are met for a project to be financed or refinanced under
this division to the extent these criteria have not already been met
through approval of the project by the commission:
(1) The project complies with all relevant statutes applicable to
planning, programming, and construction of transportation improvement
projects, and is contained in the constrained portion of a
conforming regional transportation plan prepared pursuant to Section
65080 and identified as a project proposed to be funded under the
authority provided by this division. For purposes of this
subdivision, a regional transportation plan must be consistent with
greenhouse gas reduction targets assigned by the State Air Resources
Board, pursuant to Division 25.5 (commencing with Section 35800) of
the Health and Safety Code.
(2) For projects on the state highway system, the project sponsor
has cooperated with the department to secure its support for the
project and to ensure that the project is consistent with the needs
and requirements of the state highway system.
(3) The project is technically feasible in that it conforms to
federal standards and meets or exceeds environmental requirements.
(4) The project is financially feasible, as determined pursuant to
Section 64111.
(5) Performance measures have been developed for the project to
enable the commission to track and report on the project's
performance to the Legislature in the commission's annual report
prepared pursuant to Section 14535.
(6) The project has support in the communities adjacent to or
affected by the project. To ensure that such support can be
demonstrated, the project sponsor shall, at a minimum, make available
for public review and comment the proposed project, including any
proposed toll schedule, no less than 30 days prior to approval by the
governing body with jurisdiction over the project.
(7) In the case of highway projects, the project sponsor submits
to the commission and to the authority a plan that demonstrates how
transit service or alternative modes of transportation will be
enhanced in the corridor concurrent with the operation of a toll
facility for the purpose of ensuring that the corridor provides for
multiple modes of transport that accommodate all users. Nothing in
this section may be construed to require that toll revenues be used
to finance the enhancement of transit or alternative means of
transportation in the project corridor.
(c) The authority shall have no power to plan projects, or to
approve projects other than provided in this division. The authority
shall have no power to assume any of the planning, programming, or
allocation authority of the department or the commission.
(d) Beginning June 30, 2011, and annually thereafter, the
authority shall provide to the commission a summary of actions taken
in the previous calendar year, including the number of project
sponsors who sought financing through the authority, a description of
each project, a summary of the sources of funding used to finance or
refinance the project, and any recommendations the authority may
have to improve the financing of transportation infrastructure, to be
included in the commission's annual report to the Legislature as
required by Section 14535.
SEC. 6. 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 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) 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.
(d) The issuer 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.
SEC. 7. Section 64112 of the Government Code is amended to read:
64112. Notwithstanding any other law, the authority may authorize
a project sponsor, or the department, to impose and collect tolls as
one source of revenue to pay debt service and to operate and
maintain a project under the following conditions:
(a) The governing body of the project sponsor, by a majority vote
of the body, or, for projects sponsored by the department, the
commission, has approved the imposition of tolls on users of the
project, or a majority of the voters within the jurisdiction of the
project sponsor has approved a ballot measure imposing the tolls.
(b) Each highway project for which tolls are imposed shall have
nontolled alternative lanes available for public use in the same
corridor as the proposed toll project. Nothing in this division shall
allow the conversion of any existing nontolled or non-user-fee lanes
into tolled or user-fee lanes, except for the conversion of
high-occupancy vehicle lanes into high-occupancy toll lanes,
consistent with the authorizations in Sections 149.1, 149.4, 149.5,
149.6, and 149.7 of the Streets and Highways Code.
(c) For highway projects, the road segment is on the state highway
system. Nothing in this division shall allow the imposition of a
toll on any local street or road.
(d) The approval of the tolls pursuant to subdivision (a) shall
require that the tolls be set and maintained at a level expected to
be sufficient to pay debt service, operations, and maintenance of the
project over the life of the bonds consistent with the objective set
forth in Section 64105.
(e) The project's financial pro forma shall incorporate life-cycle
costs for the project, including revenues to pay for maintenance,
operation, and rehabilitation.
(f) Subject to any constraints in the bond documents necessary to
make the bonds marketable, excess revenues from operation of the
project, including toll revenues, shall be used exclusively in the
corridor from which the revenue was generated to fund acquisition,
construction, improvement, maintenance, or operation of
high-occupancy vehicle facilities, other transportation purposes, or
transit service, including, but not limited to, support for transit
operations pursuant to an expenditure plan. The project sponsor, in
consultation with the department, shall issue an expenditure plan
that describes transportation improvements for the corridor. This
expenditure plan shall include projected costs, the use of toll
revenues, and a proposed completion schedule. The expenditure plan
shall be updated annually. The plan and each annual update shall be
made available for public review and comment for not less than 30
days prior to adoption by the governing board of the project sponsor.
(g) Except for purposes of implementing congestion management
mechanisms pursuant to Section 64113, tolls shall not be set to
generate more revenue than the expected cost of paying debt service
on the bonds, contracts entered into by the authority or the project
sponsor in connection with the bonds, funding reserves, operating and
maintaining the project, repair and rehabilitation of the project,
and providing transportation improvements to the corridor pursuant to
subdivision (f).
SEC. 8. Section 64115 of the Government Code is amended to read:
64115. (a) The issuer may, from time to time, issue its
negotiable bonds in order to provide funds for achieving any of its
purposes under this division.
(b) Except as may otherwise be expressly provided by the issuer,
each of its bonds shall be payable from any revenues or moneys of the
issuer available therefor and not otherwise pledged, subject only to
any agreements with the holders of particular bonds or notes
pledging any particular revenues or moneys. Notwithstanding that
those bonds may be payable from a special fund, they shall be and be
deemed to be for all purposes negotiable instruments, subject only to
the provisions of those bonds for registration.
(c) The bonds may be issued as serial bonds or as term bonds, or
the issuer, in its discretion, may issue bonds of both types. The
issuance of all bonds shall be authorized by resolution and shall
bear the date or dates, mature at the time or times not exceeding 40
years from their respective dates, bear interest at the rate or
rates, fixed or variable, be payable at the time or times, be in the
denominations, be in the form, either coupon or registered, carry the
registration privileges, be executed in the manner, be payable in
lawful money of the United States of America at the place or places,
and be subject to the terms of redemption, as the indenture, trust
agreement, or other document authorized by the resolution, or
resolution itself may provide. The bonds or notes may be sold by the
Treasurer at public or private negotiated sale, after giving due
consideration to the recommendation of the project sponsor, for such
price or prices and upon such terms and conditions as the issuer
shall determine. The Treasurer may sell those bonds at a price below
the par value thereof. However, the discount on any bonds so sold
shall not exceed 6 percent of the par value thereof, except in the
case of any bonds payable in whole or in part from moneys held under
one or more outstanding resolutions or indentures. Pending
preparation of the definitive bonds, the issuer may issue interim
receipts or certificates or temporary bonds that shall be exchanged
for those definitive bonds.
(d) Any resolution or resolutions authorizing the issuance of any
bonds or any issue of bonds may contain provisions, which shall be a
part of the contract with the holders of the bonds to be authorized,
as to pledging all or any part of the revenues of a project or any
revenue-producing contract or contracts made by the issuer with any
individual, partnership, corporation, or association or other body,
public or private, to secure the payment of the bonds or of any
particular issue of bonds.
(e) Neither the members of the authority nor any person executing
the bonds shall be liable personally on the bonds or be subject to
any personal liability or accountability by reason of the issuance
thereof.
(f) The authority shall have power out of any funds available
therefor to purchase its bonds or bonds issued by a project sponsor
under this division. The authority may hold, pledge, cancel, or
resell the bonds, subject to and in accordance with agreements with
bondholders.
SEC. 9. Section 64116 of the Government Code is amended to read:
64116. In the discretion of the authority, any bonds issued under
this division may be secured by a trust agreement or indenture by
and between the issuer and a corporate trustee or trustees, which may
be the Treasurer or any trust company or bank having the powers of a
trust company within or without the state. The trust agreement,
indenture, or the resolution providing for the issuance of those
bonds may pledge or assign the revenues to be received from a project
sponsor or pursuant to any revenue-producing contract or as pledged
by the issuer pursuant to Section 64109. The indenture, trust
agreement, or resolution providing for the issuance of those bonds
may contain provisions for protecting and enforcing the rights and
remedies of the bondholders as may be reasonable and proper and not
in violation of law, including, particularly, provisions as have been
specifically authorized to be included in any resolution or
resolutions authorizing bonds thereof. The trust agreement or
indenture may set forth the rights and remedies of the bondholders
and of the trustee or trustees, and may restrict the individual right
of action of bondholders. In addition to the foregoing, the
indenture, trust agreement, or resolution may contain other
provisions as the authority or issuer may deem reasonable and proper
for the security of the bondholders.
SEC. 10. Section 64117 of the Government Code is amended to read:
64117. Bonds issued under this division shall not be deemed to
constitute a debt or liability of the state or of any political
subdivision thereof or a pledge of the faith and credit of the state
or of the political subdivision, other than the issuer, but shall be
payable solely from the funds herein provided. The bonds shall
contain on the face thereof a statement to the effect that neither
the State of California nor the issuer shall be obligated to pay the
principal of, or the interest thereon, except from revenues pledged
therefor by the issuer, and that neither the faith and credit nor the
taxing power of the State of California or of any political
subdivision thereof is pledged to the payment of the principal of or
the interest on those bonds. The issuance of bonds under the
provisions of this division shall not directly or indirectly or
contingently obligate the state or any political subdivision thereof
to levy or to pledge any form of taxation therefor or to make any
appropriation for their payment.
SEC. 11. Section 64118 of the Government Code is amended to read:
64118. Any holder of bonds issued under this division or any of
the coupons appertaining thereto, and the trustee or trustees under
any indenture or trust agreement, except to the extent the rights
herein given may be restricted by any resolution authorizing the
issuance of, or any indenture or trust agreement securing, the bonds,
may, either at law or in equity, by suit, action, mandamus, or other
proceedings, protect and enforce any and all rights under the laws
of the state or granted hereunder or under the resolution or
indenture or trust agreement, and may enforce and compel the
performance of all duties required by this division or by the
resolution, indenture, or trust agreement to be performed by the
issuer or by any officer, employee, or agent thereof.
SEC. 12. Section 64119 of the Government Code is amended to read:
64119. All moneys received pursuant to this division, whether as
proceeds from the sale of bonds or as revenues, shall be deemed to be
trust funds to be held and applied solely as provided in this
division. Until the funds are applied as provided in this division,
and notwithstanding any other provision of law, the moneys may be
invested in any obligations or securities authorized by resolution
authorizing the issuance of the bonds or indenture or trust agreement
securing the bonds. Any officer with whom, or any bank or trust
company with which, the moneys are deposited shall act as trustee of
the moneys and shall hold and apply the moneys for the purposes
hereof, subject to any regulations adopted pursuant to this division,
and the resolution authorizing the issuance of the bonds or the
indenture or trust agreement securing the bonds.
SEC. 13. Section 64120 of the Government Code is amended to read:
64120. (a) The issuer may provide for the issuance of bonds for
the purpose of refunding any bonds or any series or issue of bonds of
the issuer then
outstanding, including the payment of any redemption premium thereon
and any interest accrued or to accrue to the date of redemption,
purchase, or maturity of the bonds.
(b) The proceeds of any bonds issued for the purpose of refunding
of outstanding bonds may, in the discretion of the issuer, be applied
to the purchase, redemption prior to maturity, or retirement at
maturity of any outstanding bonds on their earliest redemption date
or dates, upon their purchase or maturity, or paid to a third person
to assume the issuer's obligation to make the payments, and may,
pending that application, be placed in escrow to be applied to the
purchase, retirement at maturity, or redemption on the date or dates
determined by the issuer.
(c) Any proceeds placed in escrow may, pending their use, be
invested and reinvested in obligations or securities authorized by
resolutions of the issuer, payable or maturing at the time or times
as are appropriate to ensure the prompt payment of the principal,
interest, and redemption premium, if any, of the outstanding bonds to
be refunded at maturity or redemption of the bonds to be refunded
either at their earliest redemption date or dates or any subsequent
redemption date or dates or for payment of interest on the refunding
bonds on or prior to the final date of redemption or payment of the
bonds to be refunded. After the terms of the escrow have been fully
satisfied and carried out, any balance of the proceeds and interest,
income, and profits, if any, earned or realized on the investments
thereof may be returned to the issuer for use by the issuer.
(d) All of the refunding bonds are subject to this division in the
same manner and to the same extent as other bonds issued pursuant to
this division.
SEC. 14. Section 64121 of the Government Code is amended to read:
64121. Bonds issued under this division are hereby made
securities in which all banks, bankers, savings banks, trust
companies and other persons carrying on a banking business, all
insurance companies, insurance associations and other persons
carrying on an insurance business, and all administrators, executors,
guardians, trustees and other fiduciaries, and all other persons
whatsoever who now are or may hereafter be authorized to invest in
bonds or other obligations of the state, may properly and legally
invest any funds, including capital belonging to them or within their
control; and the bonds, notes, or other securities or obligations
are hereby made securities that may properly and legally be deposited
with and received by any state or municipal officers or agency of
the state for any purpose for which the deposit of bonds or other
obligations of the state is now or may hereafter be authorized by
law.
SEC. 15. Section 64124 of the Government Code is amended to read:
64124. A pledge by or to the issuer of revenues, moneys,
accounts, accounts receivable, contract rights, and other rights to
payment of whatever kind made by or to the issuer pursuant to the
authority granted in this division shall be valid and binding from
the time the pledge is made for the benefit of pledges and successors
thereto. The revenues, moneys, accounts, accounts receivable,
contract rights, and other rights to payment of whatever kind pledged
by or to the issuer or its assignees shall immediately be subject to
the lien of the pledge without physical delivery or further act. The
lien of the pledge shall be valid and binding against all parties,
irrespective of whether the parties have notice of the claim. The
indenture, trust agreement, resolution, or another instrument by
which the pledge is created need not be recorded.
SEC. 16. Section 64125 of the Government Code is amended to read:
64125. Each lease agreement, note, mortgage, or other instrument
evidencing the obligations of a project sponsor shall provide that
the rents or principal, interest, and other charges payable by the
project sponsor shall be sufficient at all times, (a) to pay the
principal of, sinking fund payments, if any, the premium, if any, and
the interest on outstanding bonds issued in respect of such project
as the same shall become due and payable, (b) to create and maintain
reserves which may, but need not, be required or provided for in the
resolution relating to the bonds, and (c) to pay its share of the
administrative costs and expenses of the authority. The issuer shall
pledge the revenues derived, and to be derived, from a project or
from a project sponsor for the purposes specified in (a), (b), and
(c) of the preceding sentence and additional bonds may be issued
which may rank on a parity with other bonds relating to the project
to the extent and on the terms and conditions provided in the bond
resolution.
SEC. 17. Section 64126 of the Government Code is amended to read:
64126. When the principal of and interest on bonds issued by the
authority to finance the cost of a project or working capital or to
refinance outstanding indebtedness of one or more project sponsors,
including any refunding bonds issued to refund and refinance those
bonds, have been fully paid and retired or when adequate provision
has been made to fully pay and retire those bonds, and all other
conditions of the resolution, the lease, the trust indenture and any
mortgage or deed of trust, security interest, or any other instrument
or instruments authorizing and securing the bonds have been
satisfied and the lien of the mortgage, deed of trust, or security
interest has been released in accordance with the provisions thereof,
the authority shall promptly do all things and execute those
releases, release deeds, reassignments, deeds, and conveyances
necessary and required to convey or release any rights, title, and
interest of the authority in the project so financed or refinanced,
or securities or instruments pledged or transferred to secure the
bonds, to the project sponsor or sponsors.
SEC. 18. Section 64127 of the Government Code is amended to read:
64127. (a) This division shall be deemed to provide a complete,
additional, and alternative method for doing the things authorized by
this code, and shall be regarded as supplemental and additional to
powers conferred by other laws. The issuance of bonds and refunding
bonds and the financing or refinancing of projects or the imposition
and collection of tolls under this division need not comply with any
other law applicable to the issuance of bonds or the collection of
tolls, including, but not limited to, Division 13 (commencing with
Section 21000) of the Public Resources Code.
(b) Except as provided in subdivision (a), the financing of a
project pursuant to this division shall not exempt a project from any
requirement of law that is otherwise applicable to the project, and
the project sponsor shall provide documentation, before the authority
approves the issuance of bonds for the project, that the project has
complied with Division 13 (commencing with Section 21000) of the
Public Resources Code, or is not a project under that division.
SEC. 19. Section 64132 of the Government Code is amended to read:
64132. (a) The California Transportation Financing Authority Fund
is hereby created and continued in existence in the State Treasury,
to be administered by the authority. Notwithstanding Section 13340 of
the Government Code, all moneys in the funds shall be continuously
appropriated without regard to fiscal year for the purposes of this
division. The authority may pledge any or all of the moneys in the
fund as security for payment of the principal of, and interest on,
any particular bonds issued by the authority, or any particular
secured or unsecured loan made pursuant to subdivision (g) or (h) of
Section 64107, and, for that purpose or as necessary or convenient to
the accomplishment of any other purpose of the authority, may divide
the fund into separate accounts. All moneys accruing to the
authority pursuant to this part from whatever source shall be
deposited in the fund.
(b) Subject to the priorities that may be created by the pledge of
particular moneys in the fund to secure any bonds issued by the
authority, and subject further to the costs of loans provided by the
authority pursuant to subdivisions (g) and (h) of Section 64107, and
subject further to any reasonable costs that may be incurred by the
authority in administering the program authorized by this division,
all moneys in the fund derived from any source shall be held in trust
for the security and payment of bonds issued by the authority and
shall not be used or pledged for any other purpose so long as the
bonds are outstanding and unpaid. However, nothing in this section
shall limit the power of the authority to make loans with the
proceeds of bonds in accordance with the terms of the resolution
authorizing the same.
(c) Pursuant to any agreements with the holders of particular
bonds pledging any particular assets, revenues, or moneys, the
authority may create separate accounts in the fund to manage assets,
revenues, or moneys in the manner set forth in the agreements.
(d) The authority may, from time to time, direct the Treasurer to
invest moneys in the fund that are not required for its current
needs, including proceeds from the sale of any bonds, in the eligible
securities specified in Section 16430 as the agency shall designate.
The authority may direct the Treasurer to deposit moneys in
interest-bearing accounts in state or national banks or other
financial institutions having principal offices in this state. The
authority may alternatively require the transfer of moneys in the
fund to the Surplus Money Investment Fund for investment pursuant to
Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of
Division 4 of Title 2. All interest or other increment resulting from
an investment or deposit shall be deposited in the fund,
notwithstanding Section 16305.7. Moneys in the fund shall not be
subject to transfer to any other fund pursuant to any provision of
Part 2 (commencing with Section 16300) of Division 4 of Title 2,
excepting the Surplus Money Investment Fund.
