BILL NUMBER: AB 1009 AMENDED
BILL TEXT
AMENDED IN SENATE SEPTEMBER 4, 2009
AMENDED IN SENATE AUGUST 17, 2009
AMENDED IN SENATE JUNE 29, 2009
AMENDED IN SENATE JUNE 25, 2009
AMENDED IN ASSEMBLY MAY 6, 2009
INTRODUCED BY Assembly Member V. Manuel Perez
FEBRUARY 27, 2009
An act to amend Section 14030 of, and to add and repeal
Section 14077 of, the Corporations Code, relating to small business,
and making an appropriation therefor. An act to amend
Sections 8869.82, 91501, 91502, 91502.1, 91503, 91504, 91527, 91530,
91531, 91533, 91538, 91539, 91541, 91555, 91559, 91571, and 91573 of
the Government Code, relating to bonds, and declaring the urgency
thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 1009, as amended, V. Manuel Perez. Small business:
Direct Loan Program. Bonds.
(1) Existing law establishes in state government the California
Debt Limit Allocation Committee, with duties that include annually
determining a state ceiling on the aggregate amount of private
activity bonds that may be issued, and allocating that amount among
state and local agencies. Existing law defines the term "state
ceiling" for those purposes with regard to an amount specified in
federal law.
This bill would revise the definition of "state ceiling" for these
purposes to also include certain amounts reserved to the state for
qualified energy conservation bonds and recovery zone economic
development bonds.
(2) Existing law, the California Industrial Development Financing
Act, authorizes cities, counties, cities and counties, and
redevelopment agencies to establish industrial development
authorities that are authorized to issue industrial development
bonds, the proceeds of which may be used to fund capital projects of
private enterprise under terms and conditions specified in the act.
This bill would expand the scope of the act by including
additional types of projects and costs authorized for financing under
the act, including, but not limited to, projects qualified under the
American Recovery and Reinvestment Act of 2009. This bill would also
authorize financial assistance to businesses for certain costs of a
bond issuance.
(3) This bill would declare that it is to take effect immediately
as an urgency statute.
The California Small Business Financial Development Corporation
Law authorizes the formation of small business financial development
corporations to grant loans or loan guarantees for the purpose of
stimulating small business development and imposes certain duties
with respect thereto on a director designated by the Secretary of
Business, Transportation and Housing. The California Small Business
Expansion Fund, a continuously appropriated fund, provides funds to
be used to pay for defaulted loan guarantees and administrative costs
of these corporations.
This bill would require the secretary to develop and implement,
until January 1, 2015, a Direct Loan Program to provide loans to
small businesses meeting certain requirements. The bill would require
the maximum loan limit to be $500,000. The bill would establish the
Direct Loan Account in the California Small Business Expansion Fund
and would continuously appropriate all moneys in that account for
purposes of implementing and administering the program. The bill
would authorize a public entity, as defined, to deposit moneys in
this account in order to capitalize the program. The bill would
require the director, prior to distributing these funds to small
businesses, to determine that the program is sufficiently
capitalized. The bill would require the director to report annually
on the activities of the program, as specified, and would also
require the director, by a specified date, to submit to the Governor
and the Legislature the results of an independent audit of the
program. The bill would make certain findings and declarations of the
Legislature.
Vote: majority 2/3 . Appropriation:
yes no . Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 8869.82 of the
Government Code is amended to read:
8869.82. (a) As used in this chapter,
unless the context otherwise requires, the terms defined in this
section shall have the following meanings:
(a)
(1) "Committee" means the California Debt Limit
Allocation Committee established pursuant to Section 8869.83.
(b)
(2) "Fund" means the California Debt Limit Allocation
Committee Fund created pursuant to Section 8869.90.
(c)
(3) "Internal Revenue Code" means the Internal Revenue
Code of 1986 (26 U.S.C. Sec. 1 et seq.) , as amended from
time to time.
(d)
(4) "Issuer" means any local agency or state agency
authorized by the Constitution or laws of the state to issue private
activity bonds.
(e)
(5) "Local agency" means any political subdivision of
the state within the meaning of Section 103 of the Internal Revenue
Code (26 U.S.C. Sec. 103) , or any entity that has the
power to issue private activity bonds "on behalf of" any
such on behalf of that political subdivision.
(f)
(6) "MBTCAC" means the Mortgage Bond and
Califo rnia Tax Credit Allocation
Committee created by Section 50185 50199.8
of the Health and Safety Code.
(g)
(7) "Private activity bond" means a part or all of any
bond (or , or other
instrument) instrument, required to obtain a
portion of the state's volume cap pursuant to Section 146 of the
Internal Revenue Code (26 U.S.C. Sec. 146) in order to be
tax exempt, including , generally , all of the
following (as such , as those bonds are
defined in the Internal Revenue Code) Code
: (1) exempt
(A) Exempt facility bonds
(except , except bonds for airports,
docks and wharves, and certain solid waste facilities), (2)
qualified facilities.
(B) Qualified mortgage bonds
, (3) qualified .
(C) Qualified small issue bonds
, (4) qualified .
(D) Qualified student loan bonds
, (5) qualified .
(E) Qualified redevelopment bonds
, and (6) the .
(F) The nonqualified amount of an
issue of governmental bonds (including advance refunds) exceeding
fifteen million dollars ($15,000,000), as provided in Section 141(b)
(5) of the Internal Revenue Code (26 U.S.C. Sec. 141(b)(5))
.
(h)
(8) "Private activity bond limit" means any portion of
the state ceiling allocated or transferred to a state agency or local
agency pursuant to this chapter.
(i)
(9) "State" means the State of California.
(j)
(10) "State agency" means the state and all state
entities, including joint powers authorities of which the state or
agency or instrumentality thereof is a member, empowered to issue
private activity bonds, the interest on which is exempt from income
tax under Section 103(a) of the Internal Revenue Code (26 U.S.C.
Sec. 103(a)) , including nonprofit corporations described in
Section 150(d) of the Internal Revenue Code (26 U.S.C. Sec. 150
(d)), authorized to issue qualified scholarship funding bonds.
(k)
(11) "State ceiling" shall be the
includes both of the following:
(A) The amount specified by
Section 146(d) of the Internal Revenue Code (26 U.S.C. Sec. 146
(d)) for each calendar year commencing in 1986.
(B) The amount reserved to the state pursuant to Sections 1112 and
1401 of the American Recovery and Reinvestment Act of 2009 (26
U.S.C. Secs. 54a and 1400U-1).
Pursuant
(b) Pursuant to Section 146(e) of
the Internal Revenue Code (26 U.S.C. Sec. 146(e)) , this
chapter shall govern governs the
allocation of the state ceiling among the state agencies and local
agencies in this state having authority to issue private activity
bonds. Any
(c) Any portion of the state
ceiling allocated or transferred by or under the authority of this
chapter shall become the private activity bond limit for the issuer
of which such that portion is allocated
or transferred for any private activity bonds issued by that issuer.
SEC. 2. Section 91501 of the Government
Code is amended to read:
91501. The Legislature hereby finds that it is necessary and
essential that the state, in cooperation with the federal government,
use all practical means and measures to promote and enhance economic
development and increase opportunities for useful employment. The
Legislature further finds the alternative method of financing
provided in this title will benefit economically distressed
communities with concentrated unemployment by employing a labor force
from those communities and areas where persons are displaced due to
industrial failures. The Legislature further finds that the
alternative method of financing provided in this title will benefit
economically distressed areas of the state and localities
which that are making diligent efforts to
maintain and provide services to existing companies and to prevent
the loss of existing jobs. The Legislature further finds that the
alternative method of financing provided in this title will benefit
those projects which that would employ
persons living within an economically distressed area, or projects
which that are partially funded by
a job creation grant from the federal
government, including, but not limited to, the
United States Department of Labor, the United States Department of
Housing and Urban Development, or the Economic Development
Administration of the United States Department of Commerce. The
Legislature further finds and determines that industry
businesses within this state needs
that create, produce, or manufacture tangible goods
and requires require new methods
to finance the capital outlays required to acquire, construct, or
rehabilitate facilities which , equipment,
and furnishings that will result in an increase
in employment opportunities , the retention of existing
jobs, or otherwise contribute to economic development, and the
alternate method of financing provided in this division is in the
public interest and serves a public purpose and will promote the
health, welfare, and safety of the citizens of the State of
California.
The Legislature further finds that regional research and
development facilities are beneficial to the state and the regions
in which where they are located by
providing jobs in the facilities and in ,
contributing to economic development in the state and
the surrounding community , and by
being a source of ideas and inventions
intellectual capital and intangible assets that ultimately
aid California manufacturers businesses
in entering, expanding , and
being competitive competing in ,
world markets.
The Legislature also finds that although tax-exempt financing in
the form of industrial development bonds is available for the startup
and expansion of industrial and energy development facilities, such
financing is not available for startup or expansion of research and
development facilities, potentially as viable a source of job
creation as industrial and energy development projects.
Therefore, the Legislature finds that research and development
facilities should be designated "permitted activities" under the
state's industrial development bond program.
SEC. 3. Section 91502 of the Government
Code is amended to read:
91502. It is the purpose of this title to carry out and make
effective the findings of the Legislature , and to that
end , to provide industry business
with an alternative method of financing in acquiring,
constructing, or rehabilitating facilities , including, but not
limited to, equipment and furnishings, in accordance with the
criteria set forth in Section 91502.1, all to the mutual benefit of
the people of the state and to protect their health, welfare, and
safety.
SEC. 4. Section 91502.1 of the
Government Code is amended to read:
91502.1. (a) The Legislature declares that it is the policy of
this state, consistent with environmental, resource conservation, and
other policies, to facilitate for and on behalf of private
enterprise the acquisition of property, either suitable for or
evidencing an obligation respecting any one or more of the activities
or uses set forth in Section 91503, through the issuance of revenue
bonds by authorities in accordance with the criteria set forth in
subdivision (b), and that this additional method of financing when
made available in accordance with that policy serves a public purpose
and will promote the prosperity, health, safety, and welfare of the
citizens of the State of California.
(b) The Legislature declares that the criteria to be utilized to
determine whether this method of financing may be made available
shall include the following:
(1) Whether employment benefits arising out of the use of the
facilities may ensue by securing or increasing (A) the number of
employees of the company and any other direct users of the facilities
or (B) compensation for that employment, the value of which may be
expressed in terms of aggregate direct employment earnings.
(2) Whether energy, mineral or natural or cultivated resource
conservation benefits arising out of the use of the facilities may
ensue by the reduction of waste, improvement of recovery or
intensification of utilization of resources that otherwise would be
less intensively utilized, or wasted, or not recovered, the value of
which may be expressed in terms of the price and amount of the
energy, minerals, or other resources saved or recovered, or the price
and amount of equivalent energy, minerals, or other resources
which that would be utilized were the
resources not utilized as intensively.
(3) Whether consumer benefits arising out of the use of the
facilities may ensue by any of the following:
(A) Improvement of the quantity or quality or reduction in the
price of products, energy, or related services or facilities, the
value of which may be expressed in terms of quantity and price
differentials.
(B) Production of new or improved products, or related services or
facilities, the value of which may be expressed in terms of quantity
and price.
(C) The transfer of ownership of a business or place of work
which that has closed or is in danger
of closing, to its employees for the purpose of formation of an
employee-owned corporation, as defined by subdivision (c).
(4) Whether economic benefits to the surrounding community or
state may ensue.
(c) For purposes of this section, "employee-owned corporation"
means a corporation which that is under
employee ownership. "Employee ownership" means the majority
ownership of a business in this state by a majority of its employees
under either of the following methods:
(1) Establishment of an Employee Stock Ownership Plan (ESOP)
pursuant to the federal Employee Retirement Income and Security Act
(ERISA). All stock initially issued at the time of formation of the
employee-owned corporation shall be allocated to the employees and
become fully vested within five years of the date the employee-owned
corporation begins operation. Voting rights of the employees are
established in accordance with Section 409A(e) of the Internal
Revenue Code as effective on January 1, 1983.
(2) Establishment of a worker-owned cooperative.
SEC. 5. Section 91503 of the Government
Code is amended to read:
91503. The property acquired pursuant to this article shall be
suitable for, or shall evidence an obligation respecting, certain
activities or uses. The activities or uses shall include one or more
of the activities or uses described in subdivision (a) and, unless
incidental to those activities or uses, shall not include any of the
activities described in, and not excepted from, subdivision (b).
(a) (1) Industrial uses including, without limitation, assembling,
fabricating, manufacturing, processing, or warehousing activities
with respect to any products of agriculture, forestry, mining, or
manufacture, if these activities have demonstrated job creation or
retention potential.
(2) Energy development, production, collection, or conversion from
one form of energy to another.
(3) Research and development activities relating to commerce or
industry, including, without limitation, professional,
administrative, and scientific office and laboratory activities or
uses.
(4) Commercial uses located within an enterprise zone designated
pursuant to Chapter 12.8 (commencing with Section 7070) of Division 7
of Title 1 or , commercial activities
within an empowerment zone and enterprise community designated
pursuant to Section 1391 of the Internal Revenue Code of 1986, in
effect on January 1, 1998 , commercial uses located within a
recovery zone designated pursuant to Section 1401 of the American
Recovery and Reinvestment Act of 2009 (Public Law 111-5), or any
amendments thereto, or other commercial needs .
(5) Processing or manufacturing recycled or reused products and
materials by manufacturing facilities.
(6) Business activities with the purpose of creating or producing
intangible property.
(b) (1) Residential real property for family unit or other housing
activities.
(2) Airport, dock, wharf, or mass commuting activities, or storage
or training activities related to any thereof
of those activities, unless the property acquired is suitable
for one or more of the activities described in paragraph (4) of
subdivision (a) .
(3) Sewage or solid waste disposal activities or electric energy
or gas furnishing activities, unless the property acquired is
suitable for one or more of the activities described in paragraph (2)
or (4) of subdivision (a) and is not described
in Section 142(f) of the Internal Revenue Code of 1986, as amended
.
(4) Water furnishing activities , unless the property
acquired is suitable for one or more of the activities described in
paragraph (4) of subdivision (a) .
(5) Any activities of persons qualifying as exempt persons under
Section 501 of the Internal Revenue Code of 1986, as amended,
undertaken by those persons, other than activities constituting an
unrelated trade or business as described in Section 513 of that code.
SEC. 6. Section 91504 of the Government
Code is amended to read:
91504. Unless the context otherwise requires, the definitions in
this article shall govern the construction of this title, as follows:
(a) "Acquire" and its variants means acquire, construct, improve,
furnish, equip, repair, reconstruct , or rehabilitate.
(b) "Administration expenses" means the reasonable and necessary
expenses incurred by an authority in the administration of this
title, including, without limitation, fees and costs of paying
agents, trustees, attorneys, consultants, and others.
(c) "Authority" means any industrial development authority
established pursuant to this title.
(d) "Board" means the board of directors of an authority.
(e) "Bonds" means the revenue obligations, inclusive of principal
(premium, if any) and interest authorized to be issued by any
authority under pursuant to this title,
including a single bond, a promissory note or notes, including bond
anticipation notes, or other instruments evidencing an indebtedness
or obligation.
(f) "Bond proceeds" means all amounts received by an authority
upon sale or other disposition of any bonds.
(g) "Commission" means the California Industrial Development
Financing Advisory Commission established pursuant to Article 3
(commencing with Section 91550).
(h) "Company" means a person, partnership, corporation, whether
for profit or not, limited liability company, trust, or
other private enterprise of whatever legal form, for which a project
is undertaken or proposed to be undertaken pursuant to this title or
which is in possession of property owned by an authority, and may
include more than a single enterprise.
(i) "Cost" as applied to any project, may embrace:
(1) The cost of construction, improvement, repair,
rehabilitation, and reconstruction.
(2) The cost of acquisition, including rights in land and other
property, both real and personal and improved and unimproved, and
franchises, and disposal rights.
(3) The cost of demolishing, removing, or relocating any building
or structures on lands so acquired, including the cost of acquiring
any lands to which such the buildings
or structures may be moved or relocated.
(4) The cost of machinery, equipment and furnishings, of
engineering and architectural surveys, plans, and specifications, and
of transportation and storage until the facility is operational.
(5) The cost of agents or consultants, including, without
limitation, legal, financial, engineering, accounting, and auditing,
necessary or incident to a project and of the determination as to the
feasibility or practicability of undertaking such
the project.
(6) The cost of issuance of any bonds and of financing, interest
prior to, during, and for a reasonable period after completion of a
project, and reserves for principal and interest and for extensions,
enlargements, additions, repairs, replacements, renovations,
rehabilitations, and improvements.
(7) The cost of acquiring or refinancing existing obligations
incident to the undertaking and carrying out, including the
financing, of a project, and the reimbursement to any governmental
entity or agency, or any company, of expenditures made by or on
behalf of such the entity, agency, or
company that are costs of such the
project hereunder, without regard to whether or not such
the expenditures may have been made before or
after the adoption of a resolution of intention with respect to that
project by an authority.
(8) The cost of making relocation assistance payments as provided
by Chapter 16 (commencing with Section 7260) of Division 7 of Title
1.
(9) In the case only of taxable bonds, the cost of refunding or
refinancing any outstanding debt or obligations with respect to any
facilities, or the cost of any other working capital.
Except
(10) Except as provided in
paragraph (9), "cost" does not otherwise include working capital.
(j) "Facilities" means mean property
suitable for any one or more of the activities or uses described in
Section 91503 and includes incidental facilities.
(k) "Governing body" means the board of supervisors, or
city council, or board of directors of a redevelopment
agency, as the case may be.
() "Indenture" means any mortgage, deed of trust, trust indenture,
security agreement, or other instrument relating to establishing a
lien or security interest in, or on, property, any pledge or other
instrument relating to the possession of property, and any assignment
or other instrument relating to establishing any right, title, or
interest in, or related to, property, including the revenues
therefrom, given by an authority to a corporate trustee, which may be
any trust company or bank having the powers of a trust company
within or without the state, or bondholder or agent, for the security
of its bonds and the benefit of the bondholders.
(m) "Proceedings" means the actions taken by an authority in
undertaking, carrying out, and completing a project, including,
without limitation, the project agreements, indenture, bonds, and
resolutions.
(n) "Project" means the acquisition , construction,
improvement, repair, rehabilitation, and reconstruction of
facilities and the acquisition and rehabilitation of machinery,
equipment, and furnishings, and the acquisition of engineering and
architectural surveys, plans, and specifications, and all other
necessary and related capital expenditures by the issuance of
bonds upon the application of and to be repaid by payments from a
company for the purposes of this title.
(o) "Project agreements" means the agreements between an authority
and a company respecting a project, and may include, without
limitation, leases, subleases, options, and installment or other
contracts of purchase or sale, loan, or guaranty agreements, notes,
mortgages, deeds of trust, and security agreements.
(p) "Property" means any land, air rights, water rights, disposal
rights, improvements, buildings or other structures, and any personal
property, tangible or intangible, and includes, but is
not limited to, machinery and equipment, whether or not in existence
or under construction, and interests in any of the foregoing, or
promissory notes or other obligations of any kind respecting such
interests.
(q) "Public agency" means any county, city and county, city, or
redevelopment agency.
(r) "Revenues" means all rents, purchase payments, and other
income derived by an authority from, or with respect to, the sale,
lease, or other voluntary or involuntary disposition of, or repayment
of loans with respect to, property, bond proceeds, and any receipts
derived from the deposit or investment of any such income or proceeds
in any fund or account of an authority, but does not include
receipts designated to cover administration expenses.
(s) "Tax-exempt" means, with respect to any bonds, that the
interest on the bonds is excluded from gross income of the holders
thereof for federal-income-tax purposes.
(t) "Taxable" means, with respect to any bonds, that the bonds are
not tax-exempt.
SEC. 7. Section 91527 of the Government
Code is amended to read:
91527. Authorities shall have all powers necessary or appropriate
for carrying out the purposes of this title including, without
limitation, the following powers, together with all powers incidental
thereto:
(a) To acquire property by purchase, exchange, gift, lease,
contract, or otherwise, except by eminent domain. The power to
acquire real property shall not be exercised for other than authority
use except pursuant to project agreement or indenture.
(b) To maintain property.
(c) To dispose of property by lease, sale, exchange, donation,
release, relinquishment, or otherwise.
(d) With respect to property, to: (1) charge and collect rent
under any lease; (2) sell at public or private sale, with or without
public notice; (3) sell at a discount or below appraised value or for
a nominal consideration, only; (4) sell on an installment payment or
a conditional sales basis; (5) convey, or provide for the transfer
of, property without further act of the authority, upon exercise of
an option; (6) sell at a fixed or formula price, and receive for any
such sale the note or notes of a company and mortgages, deeds of
trust, or other security agreements respecting such
the property.
(e) To acquire and hold property, including funds, project
agreements and other obligations of any kind, and pledge, encumber or
assign the same, or the revenues therefrom or any portion of such
revenues, or other rights, whether then owned or possessed, or
thereafter acquired, for the benefit of the bondholders, and as
security or additional security for any bonds or the performance of
obligations under an indenture.
(f) To provide for the advance of bond proceeds and other funds
pursuant to project agreements as necessary to pay or reimburse for
project costs.
(g) To exercise all rights and to perform all obligations of the
authority under the project agreements and indenture, including the
right, upon any event of default by or the failure to comply with any
of the obligations thereof by the lessee, purchaser, or other
company thereunder, to dispose of all or part of the property to the
extent authorized by the project agreements or indenture.
(h) To borrow money and issue its bonds for the purpose of paying
all or any part of the costs of a project, and for any other
authorized purpose, as provided in this title.
(i) To contract and pay compensation for professional, financial,
and other services.
(j) To refund outstanding bonds of the authority without regard to
the purposes of this title when the board determines that
such the refunding will be of benefit to a
company or holders of such the bonds,
subject to the provisions of the proceedings.
(k) To invest, deposit, and reinvest funds under the control of an
authority and bond proceeds in the types of securities or
obligations authorized, pending application thereof to the purposes
authorized by, subject to the provisions of, the proceedings.
(l) To acquire insurance against any liability or loss in
connection with property, in such amounts as it deems desirable.
(m) To expressly waive any immunity of the political subdivisions
of this state provided by the Constitution or laws of the United
States of America to taxation by the United States of interest on
bonds issued by an authority, in obtaining federal benefits.
(n) To fund administration and cost of issuance
expenses (1) by the establishment and collection of reasonable fees
in amounts as may be determined by the board, but in no event shall
the fees exceed 1 percent of the estimated maximum amount of bonds
proposed by an application to be issued, (2) by the acceptance of
funds and other aid from the public agency and from other
governmental sources authorized to provide such funds or aid, (3) by
the acceptance of contributions from business, trade, labor,
community, and other associations, and (4) by other authorized means.
SEC. 8. Section 91530 of the Government
Code is amended to read:
91530. (a) Applications for projects or companies not in
accordance with the reasonable priorities and criteria which
that an authority may establish need not be
accepted and further processed by an authority.
(b) Acceptance of any application in no way obligates an authority
to adopt a resolution of intention or undertake the project
proposed.
(c) Upon acceptance of any application and request of a company,
the board shall determine whether it is likely that the undertaking
of the project by the authority will be a substantial factor in the
accrual of one or more of the public benefits from the use of the
facilities , including equipment, as proposed in the
application, whether the activities or uses are in accord with
Section 91503, and whether the project is
otherwise in accord with the purposes and
requirements of this title.
(d) Upon affirmative determinations under subdivision (c), the
board may express the present intention of the authority to issue
bonds in connection with the project and shall evidence the same by
the adoption of a resolution of intention to undertake the project.
The resolution of intention shall briefly describe the facilities,
state the estimated principal amount of the bond issue (which
estimate shall not limit the amount of bonds which may be issued),
indicate whether it is expected that the bonds will be tax-exempt or
taxable, and identify the company that is the applicant, and may
include other provisions as the board shall prescribe.
(e) A notice of the filing of an application, naming the company
that is the applicant, briefly describing the facilities, stating the
estimated principal amount of the bond issue and referring to the
application for further particulars, shall be published by the
secretary of the authority pursuant to Section 6061, and in the event
the facilities are proposed to be located in a city and the project
is proposed to be undertaken by an authority the jurisdiction of
which is countywide, a copy of the notice shall be mailed by the
secretary of the authority to the governing body of such
the city. Any amendment, supplement or
clarification of an application which that
changes the company that is the applicant, the description of
the facilities, or the estimated principal amount of the bond issue,
as previously noticed, shall be noticed in the same manner.
(f) A copy of the application shall be filed with the public
agency. The authority shall not issue bonds with respect to any
project unless the public agency shall approve, conditionally or
unconditionally, the project, including the issuance of bonds
therefor. Action to approve or disapprove a project shall be taken
within 45 days of the filing with the public agency. Certification of
approval or disapproval shall be made by the clerk of the public
agency to the authority. If the governing body has declared itself to
be the board pursuant to Section 91523, the approvals and other
actions required of the authority or the public agency by this
section may be taken and performed on a joint and consolidated basis,
as may be deemed practicable in the discretion of the public agency.
(g) A resolution of intention may be revoked, amended,
supplemented or clarified by the board, at any time prior to entry
into the project agreements. The project agreements, indenture, bonds
and other proceedings shall be consistent with the resolution of
intention, and shall supersede it except to the extent otherwise
expressed.
SEC. 9. Section 91531 of the Government
Code is amended to read:
91531. (a) At any time following adoption of the resolution of
intention, the board shall request that the commission make the
determinations authorized by this section and shall provide for
transmission to the commission of the fee required by the commission
and such information as may be required by the commission.
(b) The commission shall review the submission and shall, by
express findings on the basis of the submission, determine compliance
with the following criteria:
(1) Public benefits, determined in accordance with the policy
stated in Section 91502.1, from the use of the facilities ,
including equipment, likely will substantially exceed any
public detriment from issuance of bonds in the estimated principal
amount proposed in the application.
(2) Neither the completion of the project nor the operation of the
facilities will have the proximate effect of relocation of any
substantial operations of the company from one area of the state to
another or in the abandonment of any substantial operations of the
company within other areas of the state, or, if the completion or
operation will have either of the effects, then the completion or
operation is reasonably necessary to prevent the relocation of any
substantial operations of the company from an area within the state
to an area outside the state.
(3) The proposed issuance of bonds qualifies for issuance under
the provisions of Article 5 (commencing with Section 91570).
(c) For those projects qualified under Section 1401 of the
American Recovery and Reinvestment Act of 2009 (Public Law 111-5), or
any amendments thereto, the commission shall review the submission
and shall, by express findings on the basis of the submission,
determine compliance with criteria contained in that act.
(c)
(d) Written notification of the determinations of the
commission shall be given to the authority.
(d)
(e) Upon failure of the commission to make
determinations as to compliance with the criteria within 60 days of
the receipt of the submission, unless the time is extended by written
consent of the authority, the commission shall lose jurisdiction to
make the determinations, and the authority shall determine compliance
with the criteria.
(e)
(f) A proposed issuance of refunding bonds shall be
evaluated solely under the requirement of paragraph (3) of
subdivision (b), upon request of the board following the
determination provided for in subdivision (j) of Section 91527.
(f)
(g) Determinations of the commission or of an authority
as provided in subdivision (j) of Section 91527, Section 91530, and
this section shall be final and conclusive.
(g)
(h) The authority shall not deliver bonds for the
project until this section has been complied with.
(h)
(i) It is the intention of the Legislature that
submissions be reviewed by the commission individually and not
comparatively and that determinations be made generally in the order
of receipt of the submissions. To the extent consistent with
accomplishment of the public purposes as provided in Section 91502,
priority consideration shall be given submissions on behalf of small
and medium-size companies. To the extent that the public benefits
finding under paragraph (1) of subdivision (b) of this section is
based on employment benefits under paragraph (1) of subdivision (b)
of Section 91502.1, the following considerations, as alternatives to
each other, may in accordance with the submission, additionally be
considered in making such finding:
(1) The willingness of the company to provide for the screening
for employment of (i) individuals affected by industrial relocations
or abandonments, (ii) new entrants or reentrants to the work force,
(iii) unemployed or partially unemployed individuals who are
registered for work at a public employment office or other approved
place pursuant to Section 1253 of the Unemployment Insurance Code, or
(iv) individuals participating in job training or placement programs
directly calculated to increase employability or improve the
employment of these individuals.
(2) The location of the facilities in or conveniently accessible
to a portion of the work force residing within an economically
distressed area of the state or an area of the state affected by
industrial depression or decline.
An adverse finding shall not be made merely because each of such
alternative considerations is inapplicable if the facilities are
located in or are conveniently accessible to a portion of the work
force residing within a pocket of economic distress or an area of the
state largely rural in character.
SEC. 10. Section 91533 of the
Government Code is amended to read:
91533. Authorities shall undertake projects by entry into project
agreements in substance not inconsistent with the following:
(a) The company shall comply with (or cause to be complied with)
all legal requirements relating to the project and the operation,
repair, and maintenance of the facilities, including (1) obtaining
any rezonings or variances, building, development, and other permits
and approvals, and licenses and other entitlements for use, without
regard to any exemption for public projects; and (2) securing the
issuance of any certificates of need, convenience, and necessity or
other certificates or franchises; and shall provide satisfactory
evidence of compliance.
(b) The company shall comply with all conditions imposed by the
public agency in its approval of the project pursuant to subdivision
(f) of Section 91530.
(c) The company shall provide, or cause to be provided by others,
all amounts required for the project and all property relating to the
project that are not to be provided as or by expenditure of bond
proceeds, and in the case of any amounts and property that the
company proposes to cause to be provided by others, as by contract,
grant, subsidy, loan, or other form of assistance, shall provide
satisfactory evidence that those amounts and property will be
provided when required.
(d) Expenditure of bond proceeds shall be supervised to assure
proper application to the project.
(e) The company shall at its own expense insure, repair, and
maintain the facilities, pay taxes with respect to its interests in
the property relating to the project as Division 1 (commencing with
Section 101) of the Revenue and Taxation Code requires, and pay
assessments and other public charges secured by liens, upon those
interests as constitute the tax base for property taxation on the
same basis as other property, or shall cause the same to be provided
by others to the satisfaction of the authority.
(f) The amounts payable under pursuant to
the project agreements to or for the benefit of an authority
shall in the aggregate not be less than amounts sufficient (1) to pay
any bonds that shall be issued by the authority to pay the cost of
the project, (2) to maintain any required reserves, (3) to make
payments as may be required into any sinking fund or other similar
fund, and (4) to pay those administration expenses that relate to the
administration of the project agreements, the indenture, and the
bonds.
(g) The term shall extend at least until the date on which all
those bonds and all other obligations incurred by an authority in
connection with a project shall have been paid in full or adequate
funds for that payment shall have been otherwise provided.
(h) Such The additional provisions as
in the determination of the board are necessary or appropriate to
effectuate the purposes of this article, including provisions for the
following:
(1) For payments under pursuant to
the project agreements that include amounts for administration
expenses in addition to the amounts that the agreement is required to
obligate the company or others to pay.
(2) For payment before a facility exists or becomes functional, or
after a facility has ceased to exist or be functional to any extent
and from any cause.
(3) For payment whether or not the company is in possession or is
entitled to be in possession of the facilities or for payment in the
event of sale or other transfer of ownership of or the encumbering of
the facilities.
(4) Relating to the carrying out and completion of the project,
including the allocation of responsibility between the authority and
the company regarding the payment of administrative expenses and
costs of issuance, the acquisition of property, the making of
other purchases, the contracting for construction of the facilities,
with or without competitive bidding, and the payment therefor and the
designation of particular deposits or investments otherwise
authorized for the deposit, investment, and reinvestment of revenues.
(5) That some or all of the obligations of a company shall be
unconditional and shall be binding and enforceable in all
circumstances whatsoever notwithstanding any other provision
of law.
(6) Relating to the use, maintenance, repair, insurance, and
replacement of property relating to the project, such as the
authority and the company deem necessary for the protection of
themselves or others, including, but not limited to, liability
insurance, and indemnification in the event of default.
(7) Defining events of default and providing remedies therefor,
which may include an acceleration of future payments thereunder.
(i) The company shall provide for the payment of relocation
assistance as provided by Chapter 16 (commencing with Section 7260)
of Division 7 of Title 1, and shall reimburse the authority or the
public agency, as the case may be, for relocation assistance
services, and notwithstanding any other provision of this title, the
authority shall determine that those services are provided and that
relocation assistance payments are made.
(j) Notwithstanding any other provision of this title, projects
undertaken and carried out pursuant to this title shall be consistent
with the requirements of the general plan as contained in Article 5
(commencing with Section 65300) of Chapter 3 of Title 7 at the time
of entry into the project agreement, or in the event inconsistent at
that time, then at the time of delivery of any bonds.
(k) The company may, pursuant to project agreements, provide or
cause to be provided other security, such as, but not limited to, an
agreement of guaranty, either of itself or another person, or other
consideration directly to the bondholders, their agent or the trustee
under an indenture, and neither the company nor any such other
person, shall be precluded by the project agreements from having
other contractual relationships with those bondholders, agent or
trustee.
(l) Authorities shall require, whether or not authorities,
companies, or others are the contract awarding bodies, that on any
construction, improvement, reconstruction, or rehabilitation financed
in whole or in part by means of bonds issued pursuant to this title,
the resolution of intention for which is adopted on or after January
1, 1983, all workers employed in that work, exclusive of maintenance
work, shall be paid not less than the general prevailing rate of per
diem wages for work of a similar character in the locality in which
the work is performed, and not less than the general prevailing rate
of per diem wages for holiday and overtime work. Those rates shall be
determined by the Director of the Department of Industrial Relations
in accordance with the standards set forth in Section 1773 of the
Labor Code. The director's determination shall be final, and Sections
1773.1, 1773.5, 1774 , and 1776 (excepting subdivision
(f)) (f) of Section 1776) of the Labor
Code shall apply.
SEC. 11. Section 91538 of the
Government Code is amended to read:
91538. (a) Bonds may be
sold at the prices which that the board
directs, at public or private sale, subject to subdivision (b) of
Section 91535.
(b) The aggregate principal amount of tax-exempt bonds of an issue
pursuant to this article for any project shall not exceed ten
million dollars ($10,000,000).
(c) The aggregate principal amount of taxable bonds of an issue
pursuant to this article for any project shall not exceed fifty
million dollars ($50,000,000).
SEC. 12. Section 91539 of the
Government Code is amended to read:
91539. Notwithstanding any other provision of law:
(a) Authorities and their revenues, amounts for administration
or costs of issuance expenses, and any other income shall
be exempt from all taxes on, or measured by, income.
(b) Bonds issued by authorities shall be exempt from all property
taxation and the interest on such bonds shall be exempt from all
taxes on income.
(c) All property owned by authorities shall be exempt from
property taxes, assessments, and other public charges secured by
liens.
(d) All interests of companies in the property of projects shall,
for purposes of property taxation, be subject to the provisions of
Division 1 (commencing with Section 101) of the Revenue and Taxation
Code, and such interests as constitute the tax base for property
taxation shall be subject to such assessments and charges on the same
basis as other property.
(e) "Sale" and "purchase," for the purposes of Part 1 (commencing
with Section 6001) of Division 2 of the Revenue and Taxation Code, do
not include any lease or transfer of title of tangible or
intangible personal property constituting any project or
facility to an authority by a company, nor any lease or transfer of
title of tangible or intangible personal property
constituting any project or facility by such authority to any
company, when the transfer or lease is made pursuant to this title.
SEC. 13. Section 91541 of the
Government Code is amended to read:
91541. (a) None of the bonds of an authority or any other
obligations of an authority shall be deemed to constitute a debt or
liability of the state or any public agency, or a pledge of the faith
and credit of the state or any public agency, but shall be payable
solely from the funds provided therefor in the proceedings.
(b) The issuance of bonds shall not directly or indirectly or
contingently obligate the state or any public agency to levy or to
pledge any form of taxation whatsoever therefor or to make any
appropriation for their payment.
(c) All bonds shall contain on the face thereof a statement to the
following effect:
"Neither the faith and credit nor the taxing power of the State of
California or the (insert name of public agency) is pledged to the
payment of the principal of, premium, if any, or interest on any
bond, nor is the state or such (insert "city," "county," or "city and
county" as appropriate) in any manner obligated to make any
appropriation for payment."
(d) Neither
(d) Neither the members of
governing bodies or of boards nor any persons executing the bonds
shall in any event be subject to any personal liability or
accountability by reason of the issuance of such
those bonds.
(e) The bonds shall be only a special obligation of an authority
as provided by subdivision (a) of Section 91535, and an authority
shall under no circumstances be obligated to pay bonds or project
costs (other than administration expenses), except from revenues and
other funds received under the project agreements for such
those purposes, nor to pay administration
and costs of issuance expenses except from funds received under
project agreements for such those
purposes or from funds which that are
made available as otherwise authorized by the proceeding or by law.
All bonds shall contain on the face thereof a statement of their
special obligation nature.
SEC. 14. Section 91555 of the
Government Code is amended to read:
91555. The commission may do the following :
(a) Assist authorities and state agencies in the
planning, preparation, marketing, and sale of industrial
development revenue bonds , pursuant to this chapter,
to reduce cost, protect the issuer's credit, and determine
public benefits and detriments.
(b) Collect, maintain, and provide financial, economic,
governmental, and social data on local government units pertinent to
their ability to administer industrial development revenue bonds.
(c) Prepare guidelines or assist in preparation of informational
documents necessary for such offerings.
(d) Collect, maintain, and provide information on debt authorized,
sold and outstanding, and serve as a clearinghouse for local issues
of industrial development revenue bonds.
(e) Maintain contact with municipal bond underwriters, credit
rating agencies, investors, and others to improve the market for
local government debt issues.
(f) Undertake or commission studies on methods to reduce the costs
of state and local issues.
(g) Recommend changes in state law and local practices to improve
the sale and servicing of such local bonds.
SEC. 15. Section 91559 of the
Government Code is amended to read:
91559. (a) The commission is authorized from time to time to
issue its negotiable bonds, notes, debentures, or other securities,
collectively called "bonds," in order to provide funds for financing
projects or achieving any of its other purposes, except that the
commission is not authorized to issue industrial development bonds.
Without limiting the generality of the foregoing, the bonds may be
authorized to finance a single project for a single company, a series
of projects for a single company, or several projects for several
participating parties. In anticipation of the sale of these bonds,
the commission may issue negotiable bond anticipation notes and may
renew the notes from time to time. The notes shall be paid from any
revenues of the commission or other moneys available therefor and not
otherwise pledged, or from the proceeds of the sale of the bonds of
the commission in anticipation of which they were issued. The notes
shall be issued in the same manner as the bonds. The notes and
agreements relating to notes and bond anticipation notes,
collectively called "notes," and the resolution or resolutions
authorizing the notes may contain any provisions, conditions, or
limitations which a bond, agreement relating to the bond, and bond
resolution of the commission may contain.
(b) Except as may otherwise be expressly provided by the
commission, every issue of its bonds or notes shall be general
obligations of the commission payable from any revenues or moneys of
the commission 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 and subject to any
agreements with any company. Notwithstanding that the bonds, notes,
or obligations may be payable from a special fund, they shall be, and
shall be deemed to be, for all purposes negotiable instruments,
subject only to the provisions of the bonds, notes, or other
obligations for registration.
(c) The bonds may be issued as serial bonds or as term bonds, or
the commission, in its discretion, may issue bonds of both types. The
bonds shall be authorized by resolution of the commission 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, 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 at the place or places, and be subject to the terms
of redemption, as the resolution or resolutions may provide. The
bonds or notes may be sold by the Treasurer at public or private
sale, for the price or prices and on the terms and conditions as the
commission shall determine, after giving due consideration to the
recommendations of any company to be assisted from the proceeds of
the bonds or notes. Pending preparation of definitive bonds, the
Treasurer may issue interim receipts, certificates, or temporary
bonds that shall be exchanged for the definitive bonds. The Treasurer
may sell any bonds, notes, or other evidence of indebtedness at a
price below the par value thereof.
(d) Any resolution or resolutions authorizing 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 the
following:
(1) Pledging the full faith and credit of the commission or
pledging all or any part of the revenues of any project or any
revenue-producing contract or contracts made by the commission with
any individual, partnership, corporation, or association or other
body, public or private, or other moneys of the commission, to secure
the payment of the bonds or of any particular issue of bonds,
subject to those agreements with bondholders as may then exist.
(2) The rentals, fees, purchase payments, loan repayments, and
other charges to be charged, and the amounts to be raised in each
year thereby, and the use and disposition of the revenues.
(3) The setting aside of reserves or sinking funds, and the
regulation and disposition thereof.
(4) Limitations on the right of the commission or its agent to
restrict or regulate the use of the project or projects to be
financed out of the proceeds of the bonds or any particular issue of
bonds.
(5) Limitations on the purpose to which the proceeds of the sale
of any issue of bonds then or thereafter to be issued may be applied,
and pledging those proceeds to secure the payment of the bonds or
any issue of the bonds.
(6) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured, and the
refunding of outstanding bonds.
(7) The procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bond that the
holders of which are required to consent thereto, and the manner in
which the consent may be given.
(8) Limitations on expenditures for operating, administrative,
cost of issuance, or other expenses of the commission.
(9) Defining the acts or omissions to act which
that constitute a default in the duties of the commission
to holders of its obligations, and providing the rights and remedies
of the holders in the event of a default.
(10) The mortgaging of any project and the site of the project for
the purpose of securing the bondholders.
(11) The mortgaging of land, improvements, or other assets owned
by a company for the purpose of securing the bondholders.
(12) Procedures for the selection of projects to be financed with
the proceeds of the bonds authorized by the resolution, if the bonds
are sold in advance of designation of the projects, and participating
parties to receive the financing.
(e) Neither the members of the commission, nor any person
executing the bonds or notes shall be liable personally on the bonds
or notes or be subject to any personal liability or accountability by
reason of the issuance thereof.
(f) The commission shall have the power out of any funds available
for these purposes to purchase its bonds or notes. The commission
may hold, pledge, cancel, or resell those bonds, subject to and in
accordance with agreements with the bondholders.
(g) Any funds of the commission, including without limitation,
proceeds from the sale of bonds or notes, may be invested in any
obligations of any state or local government meeting the requirements
of subsection (a) of Section 103 of the Internal Revenue Code of
1986 (26 U.S.C. Sec. 103(a)) including mutual funds, trusts, and
similar instruments representing a pool of obligations. The Treasurer
may adopt regulations providing
appropriate investment standards for those investments. If the
Treasurer determines it to be necessary to assure compliance with
federal tax laws or regulations, the commission may, notwithstanding
any other provision of law, deposit funds received
as fees from the issuance of its obligations with a bank or trust
company acting on behalf of the commission.
SEC. 16. Section 91571 of the
Government Code is amended to read:
91571. (a) All issues of bonds may be qualified for issuance
under this section.
(b) The commission may refuse to qualify an issue unless it finds
that the proposed issuance is fair, just, and equitable to a
purchaser of the bonds, and that the bonds proposed to be issued and
the methods to be used by an authority in issuing them are not such
as, in its opinion, will work a fraud upon the purchaser thereof.
(c) The commission may impose when qualifying an issue under this
section conditions imposing a legend condition restricting the
transferability thereof, impounding the proceeds from the sale
thereof, or any other condition, if the commission finds that without
the condition the issuance will be unfair, unjust, or inequitable to
a purchaser of the bonds. The commission may in its discretion
modify or remove any of the conditions when, in its opinion, they are
no longer necessary or appropriate.
(d) The commission may refuse to qualify an issue of bonds under
this section which that is proposed to
be issued in exchange for one or more outstanding bonds, or bonds and
claims, or partly in the exchange and partly for cash or property,
unless it approves the terms and conditions of the issuance and
exchange and the fairness of the terms and conditions, and may hold a
hearing upon the fairness of the terms and conditions, at which all
persons to whom it is proposed to issue bonds or to deliver any other
consideration in the exchange have the right to appear.
(e) The commission may refuse to qualify an issue unless it finds
that the bonds issued in connection with the project by the authority
will be adequately secured and the revenues and other funds
applicable to the payment of the bonds are, or upon the acquisition
of the facilities which that the bonds
finance, will be sufficient to pay the principal of and the interest
on the bonds.
(f) The commission may refuse to qualify an issue of bonds
proposed pursuant to Section 1401 of the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5), or any amendments
thereto, unless it finds that the issuer has approved the issuance of
bonds for the project pursuant to a resolution in compliance with
the American Recovery and Reinvestment Act of 2009 and that the
project meets the criteria established by the American Recovery and
Reinvestment Act of 2009.
(g) (1) The commission may establish one or more reserve funds to
provide financial assistance to businesses on behalf of issuers of
qualifying bond issues. The reserve may be established and
replenished with grants, allocations, reimbursements, appropriations,
awards, or other funds from federal, state, or nonprofit agencies,
programs, or sources. The commission shall adopt criteria and
procedures for funding cost of issuance for qualifying bond issues
through a secure fund under this subdivision. The commission shall
not levy taxes or impose fees, except the fees as authorized by this
act.
(2) The commission may establish one or more reserve funds to
provide financial assistance, the form of which may be, but is not
limited to, any of the following:
(A) Payments of part or all of the cost of acquiring letters of
credit for qualified bonds.
(B) Payments of part or all of the cost of acquiring insurance for
qualified bonds.
(C) Payments of part or all of the cost of acquiring guarantees
for qualified bonds.
(D) Payments of part or all of the cost of acquiring other forms
of credit support for qualifying bonds.
(E) Payments of part or all of the cost of issuance for qualified
bonds.
(3) Each reserve fund established pursuant to this subdivision
shall be deposited in a special account established by the
Controller. Notwithstanding any other law, and subject to any
requirements of federal tax law or regulations relative to
maintaining the tax-exempt status of the obligations of any qualified
bonds, all interest or other gains earned by investment or deposit
of money in the special account pursuant to any provision of Part 2
(commencing with Section 16300) of Division 4 of Title 2 or pursuant
to any other provision of law shall be credited to, and deposited in,
the account.
(4) Any funds of the commission, including proceeds from the sale
of bonds or notes issued on or after January 1, 2010, money set aside
for the commission's administrative expenses, and reserve funds
created under this subdivision, may be invested in any obligations of
any state or local government including mutual funds, trusts, and
similar instruments representing a pool of obligations. The Treasurer
may adopt regulations providing appropriate investment standards for
these investments. If the Treasurer determines it is necessary to
ensure compliance with federal tax laws or regulations, the
commission may, notwithstanding any other law, deposit funds received
as fees from the issuance of obligations or received as reserve
funds pursuant to this subdivision, with a bank or trust company
acting on behalf of the authority.
SEC. 17. Section 91573 of the
Government Code is amended to read:
91573. (a) (1) The aggregate amount of
bonds qualified pursuant to this title in each calendar year shall
not exceed three hundred fifty million dollars ($350,000,000) of the
tax-exempt bonds and three hundred fifty million dollars
($350,000,000) of taxable bonds, per calendar year, commencing
January 1, 1987. Until October 1 of each year, a minimum of 10
percent of the aggregate amount of taxable bond authority and a
minimum of 10 percent of the aggregate amount of tax-exempt bond
authority shall be reserved for projects located in enterprise zones
pursuant to subdivision (d) of Section 7073 and program areas
pursuant to subdivision (i) of Section 7082. Any unused portion of
the above reserved amounts as of October 1 of each year shall be made
available for projects without regard to enterprise zones and
program areas.
(2) The limitation on the aggregate amount of bonds authorized
pursuant to this title in paragraph (1) does not apply to bonds for
projects supported by funds received from the federal government
pursuant to the federal American Recovery and Reinvestment Act of
2009 (Public Law 111-5).
(b) Each authority shall file with the commission reports at those
times which that are required by the
commission, setting forth with respect to each project the bonds of
an issue qualified by the commission or the authority, the bonds
which that have been issued and the
dates of delivery and receipt of the purchase prices thereof, and the
passage of the period or periods for lapse of qualification.
(c) Bonds may be delivered in return for the purchase price within
a six-month period of the making of the determinations required to
be made pursuant to Section 91531 or the making of the last
determinations to be made pursuant to Section 91532, unless extended
for a definite period by further commission action or further
authority action in the event the determinations were made by an
authority pursuant to subdivision (d) of Section 91531. The unissued
amount of a qualification lapses upon the expiration of such period
or periods.
SEC. 18. 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:
For the state to be authorized to use specified federal funds for
additional economic development programs as soon as possible, it is
necessary that this bill go into immediate effect. All matter
omitted in this version of the bill appears in the bill as amended in
the Senate, August 17, 2009. (JR11)