Bill Text: CA AB1070 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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BILL NUMBER: AB 1070	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Frazier

                        FEBRUARY 22, 2013

   An act to amend Sections 64102, 64107, 64109, 64110, 64111, 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, as introduced, 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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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.  
   (f) 
    (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. 
   (g) 
    (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. 
   (h) 
    (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 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) 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 authority's bonds.  
   (l) 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 authority or to carry out any power expressly
granted by this division.  
   (m) Invest any moneys held in reserve or sinking funds or any
moneys not required for immediate use or disbursement, at the
discretion of the authority, 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.  
   (n) 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 authority for the
successful development of any project.  
   (o) 
    (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  by the authority  
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
 financing or refinancing of   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
 by the authority   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)  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   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 64115 of the Government Code is amended to read:
   64115.  (a) The  authority is authorized  
issuer may  , from time to time,  to  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 
authority   issuer  , each of its bonds shall be
payable from any revenues or moneys of the  authority
  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  authority's  bonds may be issued as
serial bonds or as term bonds, or the  authority
 issuer  , in its discretion, may issue bonds of both types.
The issuance of all bonds shall be authorized by resolution 
of the authority  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
 authority's  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 
authority   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
 authority   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 
authority   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. 8.  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  authority   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  authority
  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  of the authority  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. 9.  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  authority
  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
 authority   issuer  shall be obligated to
pay the principal of, or the interest thereon, except from revenues
pledged therefor by the  authority   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. 10.  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
 authority   issuer  or by any officer,
employee, or agent thereof.
  SEC. 11.  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
 of the authority  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. 12.  Section 64120 of the Government Code is amended to
read:
   64120.  (a) The  authority   issuer  may
provide for the issuance of bonds  of the authority
 for the purpose of refunding any bonds or any series or
issue of bonds of the  authority   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  authority
  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 
authority's   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  authority  
issuer  .
   (c) Any proceeds placed in escrow may, pending their use, be
invested and reinvested in obligations or securities authorized by
resolutions of the  authority   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  authority   issuer  for use by the
 authority   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. 13.  Section 64121 of the Government Code is amended to read:
   64121.  Bonds issued  by the authority  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. 14.  Section 64124 of the Government Code is amended to read:
   64124.  A pledge by or to the  authority  
issuer  of revenues, moneys, accounts, accounts receivable,
contract rights, and other rights to payment of whatever kind made by
or to the  authority   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  authority   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. 15.  Section 64125 of the Government Code is amended to read:
   64125.  Each lease  entered into by the authority with a
project sponsor and each  agreement, note, mortgage, or
other instrument evidencing the obligations of a project sponsor
 to the authority  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  of the authority  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  of
the authority  , and (c) to pay its share of the
administrative costs and expenses of the authority. The 
authority   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. 16.  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. 17.  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  chapter  
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. 18.  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  issuance   bonds issued  by
the authority  of bonds issued pursuant to this division
 , 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  issuance of
 bonds  of   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  of  
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.