6585. All of the following definitions govern the construction and interpretation of this article:
(a) (1) Except as provided in paragraphs (2) and (3), “authority” means an entity created pursuant to Article 1 (commencing with Section 6500) and includes any successor to the powers and functions of that entity.
(2) In the case of an authority issuing bonds pursuant to this chapter in which VLF receivables are pledged to the payment of the bonds, other than VLF receivables so pledged for a county of the first class, an authority shall consist of not fewer than 100 local agencies.
(3) In the case of an authority issuing bonds pursuant to this chapter in which Proposition 1A receivables are pledged to the payment of the bonds, an authority shall consist of not fewer than 250 local agencies.
(b) “Bond purchase agreement” means a contractual agreement executed between the authority and the local agency whereby the authority agrees to purchase bonds of the local agency.
(c) “Bonds” means all of the following:
(1) Bonds, including, but not limited to, assessment bonds, redevelopment agency bonds, government-issued mortgage bonds, and industrial development bonds.
(2) Notes, including bond, revenue, tax, or grant anticipation notes.
(3) Commercial paper, floating rate and variable maturity securities, and any other evidences of indebtedness.
(4) Certificates of participation or lease-purchase agreements.
(d) “Conservation or reclamation purposes” mean a utility project designed to reduce the amount of potable water to be supplied by a publicly owned utility, reduce the amount of water imported by the publicly owned utility, or facilitate the use of wastewater by a publicly owned utility for conservation purposes, including, without limitation, stormwater capture and treatment, water and wastewater recycling, development of local groundwater resources, groundwater recharging, and water reclamation.
(e) “Cost,” as applied to a public capital improvement, a utility project, or portion of the improvement or utility project financed under this part, means all of the following:
(1) All or any part of the cost of construction, renovation, and acquisition of all lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and interests, including the cost of related tangible and intangible property, acquired or used for a public capital improvement or a utility project.
(2) The cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring any lands to which the buildings or structures may be moved, and the cost of all machinery and equipment.
(3) Finance charges.
(4) Interest prior to, during, and for a period after, completion of that construction, as determined by the authority.
(5) Provisions for working capital, reserves for principal and interest and for extensions, enlargements, additions, replacements, renovations, and improvements.
(6) The cost of architectural, engineering, financial and legal services, plans, specifications, estimates, and administrative expenses.
(7) Other expenses necessary or incidental to determining the feasibility of constructing any project or incidental to the construction or acquisition or financing of any public capital improvement or utility project.
(f) “Customer” means a person or entity receiving water or electricity or discharging wastewater through facilities of a publicly owned utility.
(g) “Financing costs” mean any of the following:
(1) Interest and redemption premiums that are payable on rate reduction bonds or water, wastewater, or electric revenue bonds or loans of a publicly owned utility that were issued to finance a utility project.
(2) The cost of retiring the principal of rate reduction bonds or water, wastewater, or electric revenue bonds or loans of a publicly owned utility that were issued to finance a utility project, whether at maturity, including acceleration of maturity upon an event of default, or upon redemption, including sinking fund redemption.
(3) A cost related to issuing or servicing rate reduction bonds, including, but not limited to, servicing fees, trustee fees, legal fees, administrative fees, bond counsel fees, bond placement or underwriting fees, remarketing fees, broker dealer fees, independent manager fees, payment under an interest rate swap agreement, financial adviser fees, accounting report fees, engineering report fees, and rating agency fees.
(4) A payment or expense associated with a bond insurance policy, financial guaranty or a contract, agreement, or other credit enhancement for rate reduction bonds or a contract, agreement, or other financial agreement entered into in connection with rate reduction bonds.
(5) The funding of one or more reserve accounts related to rate reduction bonds.
(h) (1) “Financing resolution” means a resolution adopted by the governing body of an authority financing a utility project with rate reduction bonds that establishes and imposes a utility project charge in connection with the rate reduction bonds in accordance with Section 6588.7.
(2) A financing resolution may be separate from a resolution authorizing the issuance of the rate reduction bonds.
(i) “Legislative body” means the governing body of a local agency.
(j) “Local agency” means a party to the agreement creating the authority, or an agency or subdivision of that party, sponsoring a project of public capital improvements or other utility project, or any city, county, city and county, authority, district, or public corporation of this state.
(k) “Mandate” means a requirement, imposed by a mandating entity by any means, including without limitation, a statute, rule, regulation, an administrative or judicial order, a building, operating, or licensing requirement or condition, or an agreement with, or license or permit from, the mandating entity, on a facility of a publicly owned utility or a facility operated in whole or in part for the benefit of a publicly owned utility, on the operations of the publicly owned utility, on the electricity transmitted, generated, or distributed by the publicly owned utility, or on the water or wastewater pumped, acquired, supplied, or treated by the publicly owned utility.
(l) (1) “Mandating entity” means the United States; a state of the United States; an agency, department, commission, or other subdivision of the United States or a state of the United States; a court of the United States or a state of the United States; or any other body or organization, that has jurisdiction over the operations of a publicly owned utility; the facility of a publicly owned utility, or a facility operated in whole or in part for the benefit of a publicly owned utility; or the water or wastewater pumped, acquired, treated, or sold by a publicly owned utility.
(2) “Mandating entity” does not include a local agency that owns the publicly owned utility.
(m) “Proposition 1A receivable” means the right to payment of moneys due or to become due to a local agency, pursuant to clause (iii) of subparagraph (B) of paragraph (1) of subdivision (a) of Section 25.5 of Article XIII of the California Constitution and Section 100.06 of the Revenue and Taxation Code.
(n) “Public capital improvements” means one or more projects specified in Section 6546.
(o) “Publicly owned utility” means a local publicly owned electric utility, as defined in Section 224.3 of the Public Utilities Code, or a utility furnishing water or wastewater service to not less than 25,000 retail customers that is owned and operated by a local agency or a department or other subdivision of a local agency and includes any successor to the powers and functions of the department or other subdivision.
(p) “Rate reduction bonds” mean bonds that are issued by an authority, the proceeds of which are used directly or indirectly to pay or reimburse a local agency or its publicly owned utility for the payment of the costs of a utility project, to refund rate reduction bonds, or to refinance water, wastewater, or electric revenue bonds of a local agency or publicly owned utility issued to finance a utility project, and that are secured by a pledge of, and are payable from, utility project property as provided in Section 6588.7.
(q) “Revenue” means income and receipts of the authority from any of the following:
(1) A bond purchase agreement.
(2) Bonds acquired by the authority.
(3) Loans installment sale agreements, and other revenue-producing agreements entered into by the authority.
(4) Projects financed by the authority.
(5) Grants and other sources of income.
(6) VLF receivables purchased pursuant to Section 6588.5.
(7) Proposition 1A receivables purchased pursuant to Section 6588.6.
(8) Interest or other income from any investment of any money in any fund or account established for the payment of principal or interest or premiums on bonds.
(r) “Utility project” means the acquisition, construction, installation, retrofitting, rebuilding, or other addition to, or improvement of, any equipment, device, structure, improvement, process, facility, technology, rights or property, located either within, or outside of, the State of California, and that is used, or to be used, in connection with the existing or future operations of a publicly owned utility for any of the following purposes:
(1) Conservation or reclamation purposes.
(2) For the provision of generation, transmission, or distribution of electrical service.
(3) In response to a mandate.
(4) For any other utility purpose designated a “utility project” by a publicly owned utility.
(s) “Utility project charge” means a charge paid or to be paid by customers of a publicly owned utility to pay financing costs of rate reduction bonds issued to finance or refinance a utility project for a publicly owned utility that is imposed pursuant to Section 6588.7, including any adjustment of the charge pursuant to Section 6588.7.
(t) “Utility project property” means the property right created pursuant to Section 6588.7, including without limitation, the right, title, and interest of an authority for any of the following:
(1) In and to the financing resolution and the utility charge established with respect to the rate reduction bonds, as adjusted from time to time in accordance with Section 6588.7.
(2) To be paid the financing costs of the rate reduction bonds and to all revenues, collections, claims, payments, moneys, or proceeds for, or arising from, the utility project charge relating to the rate reduction bonds.
(3) In and to all rights to obtain adjustments to the utility project charge relating to the rate reduction bonds pursuant to Section 6588.7.
(u) “VLF receivable” means the right to payment of moneys due or to become due to a local agency out of funds payable in connection with vehicle license fees to a local agency pursuant to Section 10754.11 of the Revenue and Taxation Code.
(v) “Working capital” means money to be used by, or on behalf of, a local agency for any purpose for which a local agency may borrow money pursuant to Section 53852, or for any purpose for which a VLF receivable or a Proposition 1A receivable sold to an authority could have been used by the local agency.
(Amended by Stats. 2021, Ch. 233, Sec. 2. (AB 758) Effective January 1, 2022.)