Bill Text: CA SB710 | 2015-2016 | Regular Session | Amended

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

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Bill Title: Real estate licensees: fictitious business names: team names.

Spectrum: Bipartisan Bill

Status: (Passed) 2016-08-29 - Chaptered by Secretary of State. Chapter 224, Statutes of 2016. [SB710 Detail]

Download: California-2015-SB710-Amended.html

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BILL NUMBER: SB 710	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 19, 2015
	AMENDED IN SENATE  MAY 12, 2015

INTRODUCED BY   Senator Galgiani
   (Coauthors: Senators Cannella and Huff)
   (Coauthors: Assembly Members Chávez, Gomez, and Jones)

                        FEBRUARY 27, 2015

   An act to amend, repeal, and add Section 6588 of  , and to add
Sections 6507.5 and 6507.7 to,  the Government Code, relating
to joint exercise of  powers.   powers, and
declaring the urgency thereof, to take effect immediately. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 710, as amended, Galgiani. Joint exercise of  powers:
financing.   powers. 
   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 a joint powers authority to exercise
various powers, including, among others, the power to issue bonds,
including bonds bearing interest, to pay the cost of any public
capital improvement, working capital, or liability or other insurance
program, as specified.
   This bill would, until January 1, 2022, authorize a joint powers
authority to issue or cause to be issued bonds and enter into a loan
agreement for the financing or refinancing of a project that is
situated in another state, including working capital related to that
project, if the project and its financing meets certain conditions.
This bill would require the Legislative Analyst, on or before January
1, 2021, to prepare and submit to the Legislature a report on the
issuance of those bonds and the financing of those projects. This
bill would require, no later than July 1, 2020, authorities that
issue those bonds to provide information concerning the bonds, the
projects financed, the public benefits accruing to this state and
such other information requested by the Legislative Analyst's Office
for the purpose of preparing the report. 
   This bill would require a joint powers authority to comply with
the California Public Records Act, the Ralph M. Brown Act, and the
Bagley-Keene Open Meeting Act and would provide that these provisions
are declaratory of existing law. The bill would additionally
prohibit a joint powers authority from utilizing any funds, from any
source, for political purposes. 
   The Personal Income Tax Law imposes a tax on an individual
taxpayer's taxable income for the taxable year, but excludes certain
items of income from the computation of tax. That law, in conformity
with federal income tax laws, exempts from tax interest on bonds
issued by this state or a local government in this state. The Joint
Exercise of Powers Act also provides that all bonds issued by a joint
powers authority and the interest thereon or income therefrom are
exempt from all taxation in this state, except as otherwise provided.

   This bill would provide that the interest on an issue of bonds as
authorized by this bill would not be exempt from tax. 
   This bill would include a change in state statute that would
result in a taxpayer paying a higher tax within the meaning of
Section 3 of Article XIII A of the California Constitution, and thus
would require for passage the approval of 2/3 of the membership of
each house of the Legislature.  
   This bill would declare that it is to take effect immediately as
an urgency statute. 
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 6507.5 is added to the 
 Government Code   , to read:  
   6507.5.  An authority created pursuant to this chapter shall
comply with the California Public Records Act (Chapter 3.5
(commencing with Section 6250)), the Ralph M. Brown Act (Chapter 9
(commencing with Section 54950) of Part 1 of Division 2 of Title 5),
and the Bagley-Keene Open Meeting Act (Article 9 (commencing with
Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2). This
section is declaratory of existing law. 
   SEC. 2.    Section 6507.7 is added to the  
Government Code   , to read:  
   6507.7.  An authority created pursuant to this chapter shall not
utilize any funds, from any source, for political purposes,
including, but not limited to, lobbying. 
   SECTION 1.   SEC. 3.   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) (1) 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.
   (2) (A) In addition to paragraph (1), 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.
   (B) (i) Notwithstanding Sections 6586 and 6586.5 or any other law,
an authority may issue or cause to be issued bonds and enter into a
loan agreement, pursuant to subparagraph (A), for the financing or
refinancing of a project that is situated in another state, including
working capital related to that project, if all of the following
apply:
   (I) The project is owned, developed, or operated by a private
entity.
   (II) The issuance of bonds by the authority and the financing of
the project is approved by resolution, order, or other official
action of the city, county, or other public body with land use
planning authority over the project, or of the state in which the
project is situated. This clause does not apply to the issuance of
refunding bonds if a prior financing or refinancing of the project
was approved by the city, county, public body, or state.
   (III) The authority has at least 25 local agency members and the
authority has issued bonds and entered into loan agreements to
finance at least 25 separate projects.
   (IV) The authority finds, based on the facts and circumstances
attendant to the project or the financing or refinancing of the
project, that the issuance of the bonds or the financing or
refinancing of the project will result in a substantial public
benefit to this state because one or more of the following is
satisfied:
   (ia) At least 20 percent of the net proceeds of the issue are
allocated to the financing of one or more projects, including working
capital related thereto, located in this state.
   (ib) The borrower of the bond proceeds has its principal place of
business in this state and, if that borrower is subject to income or
franchise tax in this state or any other state, that borrower has
paid to this state for the most recent tax year income or franchise
tax of at least fifty thousand dollars ($50,000) or one-half of its
total income or franchise tax liability to all states, whichever is
less. If the borrower has little or no assets other than the project
to be financed and is owned by another company or companies, then the
company or companies that own a majority of interest in the borrower
shall have its or their principal place of business in this state.
   (ic) The borrower of the bond proceeds or a controlled group of
which it is a member has at least 50 full-time equivalent employees
in this state.
   (id) The borrower of the bond proceeds or a controlled group of
which it is a member has paid to this state for the most recent tax
year income or franchise tax of at least one hundred thousand dollars
($100,000).
   (ie) In the case of the financing of one or more multifamily
rental housing projects, the developer of that project or projects
has its principal place of business in this state, and any such
developer subject to personal or corporate income tax in California
or other states has paid to this state for the most recent tax year
income or franchise tax of at least fifty thousand dollars ($50,000)
or one-half of its total income or franchise tax liability to all
states, whichever is less.
   (ii) For purposes of this subparagraph, the following definitions
apply:
   (I) "Controlled group" means a group of corporations,
partnerships, limited liability companies or other persons that are
wholly owned or controlled by a single corporation, partnership,
limited liability company, or other person.
   (II) "Developer" means a corporation, partnership, limited
liability company, or other person that is the initial controlling
party within the legal entity that owns the multifamily rental
housing project to be financed with proceeds of the bonds and that is
expected to be the primary economic beneficiary of, and to take the
primary economic risks related to, development and performance of the
project.
   (III) "Financing" shall include refinancing of bonds of the
authority or of bonds issued by any other state or local entity
located within this state.
   (IV) "Issue" shall have the same meaning as in United States
Treasury Regulations Section 1.150-1(c), as in effect on July 1,
2014.
   (V) "Net proceeds of an issue" means the aggregate principal
amount of that issue, less the amount of that issue allocated to
original issue discount, issuance costs, reserve funds, and credit
enhancement costs.
   (VI) "Principal place of business" of an entity means the
principal place from which the trade or business of the entity is
directed or managed.
   (iii) The Legislative Analyst shall, on or before January 1, 2021,
prepare and submit to the Legislature a report on the issuance of
bonds and the financing of projects pursuant to this subparagraph. No
later than July 1, 2020, authorities that issue bonds pursuant to
this subparagraph shall provide information concerning those bonds,
the projects financed, the public benefits accruing to this state,
and such other information requested by the Legislative Analyst's
Office for the purpose of preparing the report. The report may
include recommendations for modifying or extending the application of
this subparagraph. 
   (iv) There shall be no exclusion from California state income
taxes for interest on bonds issued pursuant to this subparagraph.
 
   (iv) Notwithstanding Section 6575 of the Government Code and
Section 17133 of the Revenue and Taxation Code or any other law, the
interest on an issue of bonds pursuant to this subparagraph shall not
be exempt from taxation, and shall be included in gross income under
Part 10 (commencing with Section 17001) of Division 2 of the Revenue
and Taxation Code. 
   (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, 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 receivables 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 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.
   (z) This section shall remain in effect only until January 1,
2022, and as of that date, is repealed.
   SEC. 2.   SEC. 4.   Section 6588 is
added to the Government Code, 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, 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 receivables 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 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.
   (z) This section shall become operative on January 1, 2022.
   SEC. 5.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
 
   In order to timely provide essential bonding authority for the
funding of multistate, public-private projects that are necessary to
ensure California's national and international competitiveness and
public benefits in this state, it is necessary that this act take
effect immediately.