This section establishes the official name of the division as the California Transportation Financing Authority Act.

The California Transportation Financing Authority is established as a part of the state government to perform important public duties. It is recognized as a public instrument with the power to carry out its responsibilities.

This section defines key terms used in the context of California Transportation Financing. It explains the roles and meanings of entities like the California Transportation Financing Authority ('Authority') and the California Transportation Commission ('Commission').

The section clarifies what is meant by 'Bonds,' which are financial instruments issued to raise funds. It details what 'Cost' includes in transportation projects, covering everything from construction to legal services.

'Project' refers to various transportation-related developments, like highways or rail facilities. 'Project sponsor' can be various government or regional agencies responsible for transportation planning and development. 'Working capital' involves funds for operational and maintenance expenses for transportation projects.

The authority has seven members, including key state officials like the Treasurer, Director of Finance, Controller, and others appointed by legislative leaders. These members serve without pay but can be reimbursed for expenses. Designated employees may represent some officials at meetings.

The Treasurer serves as chair, appointing an executive director, and locating the authority's offices in their office. The authority can assign tasks or enter contracts, but needs at least four members for a quorum. Actions require a majority vote during official meetings.

This law section states that the authority is in charge of implementing the rules in this division and has all the powers it needs to fulfill its responsibilities.

This law is about boosting transportation projects in California while also focusing on environmental goals. Specifically, it aims to support building new transportation infrastructure or making improvements that align with the state's targets for reducing greenhouse gases, improving air quality, and conserving natural resources. This will be funded through bonds that are at least partly backed by certain revenue streams.

This law states that the Attorney General is the main legal advisor for a specific authority, but the authority can hire additional lawyers if the Attorney General approves, especially regarding bonds. The Treasurer is appointed as the authority's treasurer.

This section outlines what actions the authority can take. They can create bylaws and adopt an official seal for their operations. They can also enter into legal proceedings, both as plaintiff and defendant, under their own name. The authority can accept money or gifts from various agencies and private sources to support their goals. They can hire private consultants for expert advice and can secure loans or grants to fund or refinance projects. Additionally, they can issue loans to project sponsors and leverage property as security to support financial activities. They are also allowed to charge project sponsors for administrative costs incurred by the authority. Essentially, they have broad powers to manage their affairs and support projects financially.

This section outlines several actions that an authority or issuer can take regarding bonds or financial obligations. It allows the issuer to obtain insurance or guarantees from federal or state agencies or private companies to ensure repayment of principal or interest on bonds or loans. The issuer can make agreements and perform activities needed to support their financial obligations, such as using credit enhancements or hedging. It also permits investing reserve or extra funds following legal guidelines and hiring experts for advice and assistance on bond issuance and project development.

This law states that any expenses incurred by the authority must be paid only from the funds specifically set aside for it. The authority cannot spend more than the funds provided to it under this division.

However, for initial start-up costs starting January 1, 2010, the authority can borrow money. This borrowed money will later be charged to project sponsors fairly and paid back with interest.

Importantly, the authority cannot create any financial obligations or debts for the State of California that would require payment from other sources.

This section explains that project sponsors can use certain revenue sources as collateral for revenue bonds, which are used to finance or refinance projects within the permissible law. These sources include local transportation funds, such as fuel taxes and local sales taxes, and might also involve tolls collected on specific facilities. However, using these funds as security requires proper approvals: local agency-controlled revenues need the local governing board's approval, while state-controlled funds need approval from relevant state authorities.

When bonds are issued by an authority for a project, it will accept the sponsor's pledge and use the pledged revenues to repay the bonds.

This section outlines the process for transportation project sponsors in California to apply for bond issuance to fund their projects. The project needs to be approved by the department and the commission. It must also meet several criteria, including compliance with relevant statutes, support in the community, financial feasibility, and commitment to enhancing public transport options. Project sponsors must ensure the project is environmentally and technically feasible and has cooperative support from the necessary departments. Additionally, performance measures should be developed to track and report project success. The authority can’t plan or approve projects outside this division’s guidelines but must report annually on its activities and provide improvement recommendations.

Before approving bonds for a project, the authority must ensure there are enough funds to cover bond payments and project maintenance. They can hire experts to help assess this. Bonds can be issued for any of the authority's goals, even without high credit ratings, if sold to experienced investors aware of the risks. Bonds might be taxable or tax-free and can be sold in public or private sales, with the Treasurer managing the sale process and getting reimbursed from bond proceeds.

A project sponsor, when authorized to issue bonds, has all necessary powers to manage the bonds and finance the project. Although extra credit support for bonds can be arranged, project sponsors can't be forced to use or fund these additional financial enhancements.

This law allows a project sponsor or department to impose tolls on certain transportation projects to fund their construction, maintenance, and operation. For tolls to be applied, a majority vote from the project's governing body or the public is needed. Projects must have non-tolled lanes as alternatives, except for converting existing HOV lanes to HOT lanes, which is allowed in specific cases. Tolls are only for state highway system segments and not local roads. Revenue from tolls should cover project costs and be used within the project's corridor for other transportation improvements. Additionally, tolls should not generate excess profit beyond covering project costs. An expenditure plan detailing the project's financials and improvement plans must be made public.

This law allows a project sponsor, who manages projects that charge tolls, to use congestion management tools. These tools help control traffic, making travel easier and more environmentally friendly.

This law requires that two government bodies work together to approve projects in a way that both project and financing approvals are given at the same time, not one after the other. They must coordinate with project sponsors to meet both project and financing criteria. Projects and their financing plans must be publicly shared for review and comments at least 30 days before they get approved.

This law section explains that an issuer can release negotiable bonds to fund its projects. These bonds can be paid from any of the issuer's available funds, unless those funds are already promised elsewhere, and must comply with any specific agreements made with bondholders. Bonds can be released in different forms, like serial or term bonds, and must follow certain formalities, such as setting maturity dates, interest rates, repayment terms, and denomination forms. They can be sold publicly or privately, even at less than face value within limits. Interim options can be used until definitive bonds are prepared. Additionally, resolutions authorizing bonds can include securing bonds with specific project revenues. Members involved aren't personally liable for the bonds, and the authority can also buy, hold, or resell its bonds.

This section allows bonds issued under this division to be secured by a trust agreement or indenture. These can be made with a corporate trustee, who might be the Treasurer or a qualified trust company or bank. The agreement or resolution can promise the income from a project sponsor to back the bonds. It can establish terms for protecting the rights of bondholders, such as rules about what actions bondholders can take individually. Additional terms might be included to further secure the interests of bondholders.

This law states that bonds issued under the specified division are not considered a debt or liability of the state or any political subdivision. Instead, these bonds are to be paid only from designated funds. The bonds will clearly indicate that neither the State of California nor the issuer is required to pay the principal or interest from state tax revenues, nor is the state or its subdivisions obliged to increase taxes or allocate funds to repay these bonds.

This law allows anyone who holds bonds or related coupons, and trustees involved with these bonds, to use legal actions like lawsuits to protect their rights. They can force the fulfillment of duties required by this specific division or any agreements tied to the bonds. However, their rights might be limited by the agreements or resolutions related to the bonds.

Any money collected under this law, from bond sales or other revenues, is considered trust funds. They must only be used as the law specifies. Until they're used, they can be invested in approved bonds or securities. The person or institution holding these funds acts as a trustee, responsible for using the funds according to the law and any rules or bond agreements.

This law section explains the process for a government issuer to issue new bonds to refinance existing ones. Essentially, it allows money from new bonds to go towards paying off old bonds, including any extra costs like interest or redemption fees. The issuer can choose how and when to pay off these old bonds, whether it's buying them back, redeeming them early, or letting them mature. Meanwhile, the funds can be temporarily held in escrow and invested to make sure they're available when needed. Once all obligations are fulfilled, any leftover funds can be reused by the issuer. Additionally, these new bonds follow the same rules as the original bonds under this legal division.

This section states that bonds issued under this particular division are considered valid and legal investments for various financial entities like banks and insurance companies. It also covers fiduciaries like trustees and guardians. Essentially, these entities and individuals can invest their funds, including capital, in these bonds. Additionally, these bonds can be legally deposited with state or municipal officials for any authorized purposes.

Bonds issued under this specific division are exempt from all types of taxes in California, whether by the state itself or any smaller governmental entities within the state.

This law ensures that California guarantees bondholders and contract parties that the state won't interfere with their rights to finance projects and collect tolls. The state promises not to change or limit these rights until the bonds are paid off and contracts are fulfilled. The authority and project sponsors can include this guarantee in their contracts and bonds.

This law section explains that when a governmental issuer pledges future revenues or financial rights, the pledge is legally effective immediately. It's binding from the moment it's made, and this lien is valid even if others aren't aware of it. The pledged assets are secured without needing any additional steps or physical handover. Also, the document creating this pledge doesn’t have to be recorded for the lien to be enforceable.

This law requires that each financial agreement for a project sponsor, like a lease or mortgage, must ensure there is enough money to cover certain expenses. These include paying off bond debts as they come due, maintaining any necessary financial reserves, and covering the sponsor's share of administrative costs. The revenue from the project is pledged to meet these financial obligations, and more bonds can be issued under certain conditions.

When bonds issued by an authority to fund a project or working capital, or to refinance debt, are fully paid off, the authority must fulfill any remaining conditions in the agreements related to the bonds. Once that’s done, and any security interests are released, the authority must transfer all its rights, titles, and interests in the project or securities back to the project sponsor.

This law outlines a special way for projects to be funded, especially when it comes to issuing bonds and collecting tolls. It says that these activities don't have to follow all the usual laws normally applied to them. However, outside of these specific funding processes, projects still have to follow other applicable laws. Before approving bonds for a project, the project sponsor needs to prove that the project is either in compliance with environmental laws (that begin with Section 21000) or that it's not subject to those laws at all.

This law states that if there are any conflicts between the rules of this specific division and any other general laws or special acts, the rules of this division will take precedence and be followed.

If the authority makes more money than it needs to pay off any debts or achieve its goals, that extra profit can only go to either the state or back to the authority itself.

If an authority in California is dissolved, its property will be transferred to a new authority set up by the state, as long as that new authority qualifies to issue tax-exempt bonds. If no such new authority is created, the property will go to the state.

This law section clarifies that nothing in this division limits the power to create and fund high-occupancy toll lanes as described in certain sections of the Streets and Highways Code. It also ensures that any agency with the power to issue bonds can continue to do so without restriction.

This law creates and maintains the California Transportation Financing Authority Fund. It's used to manage and allocate money for transportation projects. The authority can pledge money from the fund as security for bonds and loans, and can create separate accounts within the fund as needed. Money in the fund is mainly for paying off bonds, and isn't used for other purposes unless the bonds are settled. The authority can direct money to be invested or placed in interest-bearing accounts, and any gained interest goes back into the fund. Funds can't be transferred to other state funds except in certain investment cases.