BILL NUMBER: SB 503	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 18, 2003

INTRODUCED BY   Senator Florez

                        FEBRUARY 20, 2003

    An act to add Section 21167.9 to the Public Resources
Code, relating to environmental quality.   An act to add
Section 4979.9 to the Financial Code, relating to consumer loans.




	LEGISLATIVE COUNSEL'S DIGEST


   SB 503, as amended, Florez.   Environmental quality:
dairies   Consumer loans  . 
   Existing law imposes various restrictions on certain consumer
loans defined as "covered loans," including prohibiting a covered
loan from including a prepayment fee or penalty after the first 36
months after the date of consummation of the loan and requiring a
specified disclosure notice to be provided to a consumer before a
covered loan is made.  Existing law provides that a "licensed person,"
as defined, who violates certain provisions regulating covered loans
is deemed to have violated that person's licensing law.
   This bill would authorize a licensed person, subject to the laws
regulating covered loans, to make consumer loans on the same terms
and conditions as any financial institution chartered under the laws
of the United States or any operating subsidiary of a federally
chartered financial institution.  
   The existing California Environmental Quality Act (CEQA) requires
a lead agency, as defined, to prepare, or cause to be prepared, and
certify the completion of, an environmental impact report on a
project that it proposes to carry out or approve that may have a
significant effect on the environment, or to adopt a negative
declaration if it finds that the project will not have that effect.
   This bill would, when an environmental impact report is prepared
for a dairy expansion, improvement, or development project pursuant
to CEQA, authorize the project applicant to submit the environmental
impact report to the Attorney General for review as to whether the
environmental impact report substantially complies with all legal
requirements. This bill would provide that in an action filed on or
after May 1, 2004, challenging the validity of an environmental
impact report for a dairy expansion, improvement, or development
project, there is a rebuttable presumption of the validity of the
environmental impact report if the Attorney General has found that
the environmental impact report substantially complies with all legal
requirements.
   This bill would make certain findings and declarations regarding
the inapplicability of a general statute within the meaning of
Section 16 of Article IV of the California Constitution. 
   Vote:  majority.  Appropriation:  no.  Fiscal committee: 
yes   no  . State-mandated local program:  no.


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

  
  SECTION 1.  Section 21167.9 is added to the Public  
  SECTION 1.  Section 4979.9 is added to the Financial Code, to read:

   4979.9.  Subject to the provisions of this division, a licensed
person is authorized to make consumer loans on the same terms and
conditions as any financial institution chartered under the laws of
the United States or any operating subsidiary of a federally
chartered financial institution.
   This section shall not be construed to grant any licensed person
the power or authority to make any particular loan or extension of
credit that it is not otherwise authorized by law.  
Resources Code, to read:
   21167.9.  (a) When an environmental impact report has been
prepared for a dairy expansion, improvement, or development project
pursuant to this division, the project applicant may submit the
environmental impact report to the Attorney General for review as to
whether the environmental impact report substantially complies with
all legal requirements.
   (b) In an action filed on or after May 1, 2004, challenging the
validity of an environmental impact report for a dairy expansion,
improvement, or development project, there is a rebuttable
presumption of the validity of the environmental impact report if the
Attorney General has found that the environmental impact report
substantially complies with all legal requirements.
  SEC. 2.  The Legislature finds and declares that, due to the unique
circumstances applicable to the dairy industry, a statute of general
applicability cannot be enacted within the meaning of subdivision
(b) of Section 16 of Article IV of the California Constitution.
These unique circumstances include the following:
   (a) Milk and cream production is the largest component of
California's agricultural output. In 1999, California produced more
than $4 billion worth of milk, cream, and other dairy products.
   (b) Due to the need for extensive processing of raw dairy
products, dairy production has a multiplier effect on the economy.
   (c) Dairy production and processing are major sources of
high-paying jobs in rural communities.
   (d) Due to environmental concerns, it has become increasingly
necessary for dairies to move from one region of the state to another
where they can be more appropriately sited.
   (e) It is important to the state's economy, especially in its
rural communities, that dairies remain in California.
   (f) In order for re-siting of dairies in California to be
economically feasible, dairy owners need reasonable certainty that
their environmental documents will not be continually subject to
challenge.