BILL NUMBER: SB 798	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator De León
   (Principal coauthor: Senator Pavley)

                        FEBRUARY 22, 2013

   An act to add Division 4 (commencing with Section 64300) to Title
6.7 of the Government Code, and to amend Section 39712 of the Health
and Safety Code, relating to infrastructure finance, and making an
appropriation therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 798, as introduced, De León. California Green Infrastructure
Bank Act.
   The Bergeson-Peace Infrastructure and Economic Development Bank
Act authorizes the California Infrastructure and Economic Development
Bank, governed by a board of directors, to make loans and provide
other assistance to public and private entities for various types of
economic development projects, among other things. The activities of
the bank under these provisions are funded from the California
Infrastructure and Economic Development Bank Fund, which is
continuously appropriated for these purposes.
   This bill would enact the California Green Infrastructure Bank Act
(act). The bill would establish the California Green Infrastructure
Bank (bank) as a public corporation and would make it responsible for
administering the act. The bill would make the bank under the
direction of an executive director to be appointed by the Governor
subject to Senate confirmation. Under the bill, the bank would be
governed and its corporate power exercised by a board of directors
consisting of 5 members, including 3 members appointed by the
Governor subject to Senate confirmation and the Senate Committee on
Rules and the Speaker of the Assembly would each appoint one member.
   In order to facilitate green economic development, the bill would,
among other things, authorize the executive director, subject to
board resolution, to enter into any contract or loan agreement
between the bank or special purpose trust, as defined, and any
subdivision of the state or local government, that provides that the
bank will loan funds to the subdivision or local government and that
the subdivision or local government will repay the principal and pay
the interest and redemption premium, as specified. The bill would
require the bank to establish criteria for the selection of projects
to receive assistance from the bank. The bill would also require the
bank to notify the Governor and specified legislative committees when
the bank makes changes to that criteria. Prior to submitting a
project to the bank for consideration, the bill would require the
subdivision of the state or local government to make specified
findings by resolution.
   The bill would authorize the board or the executive director, as
delegated by the board, to issue bonds and would also authorize a
special purpose trust, as defined, to issue bonds. The bill would
require the bank to establish fees to be paid by the sponsor or the
participating party, as defined, to reimburse the state for the costs
of administering these provisions. The bill would direct the deposit
of these fees into the California Green Infrastructure Bank Fund,
described below.
   In addition to the bank, the bill would require the executive
director to manage and conduct the business and affairs of the Green
Infrastructure Bank Fund and the California Green Infrastructure
Trust Fund, subject to the direction of the board. The bill would
establish the California Green Infrastructure Bank Fund and the
California Green Infrastructure Trust Fund, both of which would be
continuously appropriated for purposes of carrying out the provisions
of the act. By establishing these continuously appropriated funds,
the bill would make an appropriation.
   This bill would require the bank, not later than February 1
annually, to submit to the Governor and the Joint Legislative Budget
Committee a report of its activities for the preceding fiscal year,
that includes, among other things, a specification of bonds sold and
the applicable interest rates and the amount of other public and
private funds leveraged by the bank's assistance. The bill would
require the bank's budget respecting the guarantee trust fund to be
prepared and reviewed not later than February 1 annually and would
require the bank to submit to the Legislature a report of its
activities.
   The bill would authorize the bank to issue revenue bonds in a
principal amount that the bank is required to determine is necessary
to provide sufficient funds for its purposes, that may include, among
other things, providing funds for the payment of costs of a project,
for the purchase of bonds of a special purpose trust or a sponsor,
or payment of interest on bonds of the bank or a special purpose
trust. The bill would authorize the bank to give final approval for
the issuance of the bonds or of the authorization of a special
purpose trust upon terms it deems necessary or desirable.
   The California Global Warming Solutions Act of 2006 requires the
State Air Resources Board to adopt regulations to require the
reporting and verification of emissions of greenhouse gases and,
among other things, authorizes the state board to include use of
market-based compliance mechanisms. Existing law requires all moneys,
except for fines and penalties, collected by the state board from
the auction or sale of allowances as part of a market-based
compliance mechanism to be deposited in the Greenhouse Gas Reduction
Fund and to be available upon appropriation by the Legislature.
Existing law requires the Department of Finance, in consultation with
the state board and any other relevant state agency, to develop, as
specified, a 3-year investment plan for the moneys deposited in the
Greenhouse Gas Reduction Fund.
   Existing law authorizes the allocation of moneys appropriated from
the Greenhouse Gas Reduction Fund for the purpose of reducing
greenhouse gas emissions through, among other things, investments in
programs implemented by local and regional agencies and
collaboratives, and by nonprofit organizations coordinating with
local governments.
   This bill would specify that these investments include the
California Green Infrastructure Bank. The bill would declare the
intent of the Legislature to enact legislation that would appropriate
a specified amount from the Greenhouse Gas Reduction Fund to be used
for carrying out the act. The bill would make conforming changes in
this regard.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Division 4 (commencing with Section 64300) is added to
Title 6.7 of the Government Code, to read:

      DIVISION 4.  California Green Infrastructure Bank




      CHAPTER 1.  GENERAL PROVISIONS


   64300.  The Legislature finds and declares all of the following:
   (a) Meeting California's goals for sustainable energy production
will depend upon a well-conceived system of improvements that are
essential to the creation of viable long-term green energy production
in California.
   (b) Existing mechanisms that coordinate federal, state, local, and
private financial resources are inadequate to attract and sustain
that level of private investment that is essential to this effort.
   (c) The high cost and limited availability of loans and capital
has led a number of states to take action to remedy these conditions
through concerted public and private investment programs that include
efforts to do the following:
   (1) Use the state's access to capital markets more effectively for
economic development.
   (2) Create financing pools to access national capital markets or
help government sponsors and public-private economic development
organizations obtain credit enhancement on their own.
   (3) Facilitate credit enhancement for selected specific projects.
   (4) Provide or arrange for loan insurance.
   (5) Create and support secondary markets for loan portfolios of
urban and rural economic development corporations and others.
   (6) Improve access to international capital markets.
   (7) Provide opportunities for public pension funds and other
institutional investors to play a larger role in state economic
development.
   (8) Arrange for or provide subordinated debt for selected
projects.
   (9) Increase support for local infrastructure development.
   (d) The state needs a green financing entity structured with broad
authority to issue bonds, provide guarantees, and leverage state and
federal funds using techniques that will target public investment to
facilitate green economic development.
   64300.2.  This division shall be known and may be cited as the
California Green Infrastructure Bank Act.
   64300.4.  For purposes of this act, the following words and terms
shall have the following meanings unless the context clearly
indicates or requires another or different meaning or intent:
   (a) "Act" means the Green Infrastructure Bank Act.
   (b) "Bank" means the California Green Infrastructure Bank.
   (c) "Board" means the Board of Directors of the California Green
Infrastructure Bank.
   (d) "Bond purchase agreement" means a contractual agreement
executed between the bank and a sponsor, or a special purpose trust
authorized by the bank or a sponsor, or both, whereby the bank or
special purpose trust authorized by the bank agrees to purchase bonds
of the sponsor for retention or sale.
   (e) "Bonds" means bonds, including structured, senior, and
subordinated bonds or other securities; loans; notes, including bond,
revenue, tax or grant anticipation notes; commercial paper; floating
rate and variable maturity securities; and any other evidences of
indebtedness or ownership, including certificates of participation or
beneficial interest, asset backed certificates, or lease-purchase or
installment purchase agreements, whether taxable or excludable from
gross income for federal income taxation purposes.
   (f) "Cost," as applied to a project or portion thereof financed
under this division, means 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,
licenses, easements, and interests acquired or used for a project;
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; the cost of all machinery,
equipment, and financing charges; interest prior to, during, and for
a period after completion of construction, renovation, or
acquisition, as determined by the bank; provisions for working
capital; reserves for principal and interest and for extensions,
enlargements, additions, replacements, renovations, and improvements;
and the cost of architectural, engineering, financial and legal
services, plans, specifications, estimates, administrative expenses,
and other expenses necessary or incidental to determining the
feasibility of any project or incidental to the construction,
acquisition, or financing of any project, and transition costs in the
case of an electrical corporation.
   (g) "Executive director" means the Executive Director of the
California Green Infrastructure Bank appointed pursuant to Section
64300.10.
   (h) "Facilities" means real and personal property, structures,
buildings, equipment, and supporting components thereof that are used
to provide sustainable green infrastructure, and all facilities or
infrastructure necessary or desirable in connection therewith,
including provision for working capital, conveyances, equipment,
thoroughfares, buildings, and supporting components thereof that are
directly related to providing "power and communications" including
facilities for the generation, transmission or distribution of
electrical energy, natural gas, and telephone and telecommunications
service.
   (i) "Financial assistance" in connection with a project, includes,
but is not limited to, any combination of grants, loans, the
proceeds of bonds issued by the bank or special purpose trust,
insurance, guarantees or other credit enhancements or liquidity
facilities, and contributions of money, property, labor, or other
things of value, as may be approved by resolution of the board or the
sponsor, or both; the purchase or retention of bank bonds, the bonds
of a sponsor for their retention or for sale by the bank, or the
issuance of bank bonds or the bonds of a special purpose trust used
to fund the cost of a project for which a sponsor is directly or
indirectly liable, including, but not limited to, bonds, the security
for which is provided in whole or in part pursuant to the powers
granted by Section 64300.24; bonds for which the bank has provided a
guarantee or enhancement, including, but not limited to, the purchase
of the subordinated bonds of the sponsor, the subordinated bonds of
a special purpose trust, or the retention of the subordinated bonds
of the bank pursuant to Chapter 4 (commencing with Section
64300.100); or any other type of assistance deemed appropriate by the
bank or the sponsor, except that no direct loans shall be made to
nonpublic entities other than in connection with the issuance of rate
reduction bonds pursuant to a financing order or in connection with
a financing for an economic development facility.
   For purposes of this subdivision, "grant" does not include grants
made by the bank except when acting as an agent or intermediary for
the distribution or packaging of financing available from federal,
private, or other public sources.
   (j) "Green infrastructure bank fund" means the California Green
Infrastructure Bank Fund.
   (k) "Guarantee trust fund" means the California Green
Infrastructure Guarantee Trust Fund.
   (l) "Loan agreement" means a contractual agreement executed
between the bank or a special purpose trust and a sponsor that
provides that the bank or special purpose trust will loan funds to
the sponsor and that the sponsor will repay the principal and pay the
interest and redemption premium, if any, on the loan.
   (m) "Participating party" means any person, company, corporation,
association, state or municipal governmental entity, partnership,
firm, or other entity or group of entities, whether organized for
profit or not for profit, engaged in business or operations within
the state and that applies for financing from the bank in conjunction
with a sponsor for the purpose of implementing a project.
   (n) "Project" means designing, acquiring, planning, permitting,
entitling, constructing, improving, extending, restoring, financing,
and generally developing facilities within the state.
   (o) "Revenues" means all receipts, purchase payments, loan
repayments, lease payments, and all other income or receipts derived
by the bank or a sponsor from the sale, lease, or other financing
arrangement undertaken by the bank, a sponsor or a participating
party, including, but not limited to, all receipts from a bond
purchase agreement, and any income or revenue derived from the
investment of any money in any fund or account of the bank or a
sponsor and any receipts derived from transition property. Revenues
shall not include moneys in the General Fund of the state.
   (p) "Special purpose trust" means a trust, partnership, limited
partnership, association, corporation, nonprofit corporation, or
other entity authorized under the laws of the state to serve as an
instrumentality of the state to accomplish public purposes and
authorized by the bank to acquire, by purchase or otherwise, for
retention or sale, the bonds of a sponsor or of the bank made or
entered into pursuant to this division and to issue special purpose
trust bonds or other obligations secured by these bonds or other
sources of public or private revenues.
   (q) "Sponsor" means any subdivision of the state or local
government including departments, agencies, commissions, cities,
counties, nonprofit corporations formed on behalf of a sponsor,
special districts, assessment districts, and joint powers authorities
within the state or any combination of these subdivisions that makes
an application to the bank for financial assistance in connection
with a project in a manner prescribed by the bank. This definition
shall not be construed to require that an applicant have an ownership
interest in the project. Any person, company, corporation,
partnership, firm, or other entity or group engaged in business or
operation within the state that applies for financing of any
facility, shall be deemed to be the sponsor as well as the
participating party for the project relating to the financing of that
facility.
   (r) "State" means the State of California.
      CHAPTER 2.  CALIFORNIA GREEN INFRASTRUCTURE BANK


   64300.10.  (a) The California Green Infrastructure Bank is a
public corporation and it shall be responsible for administering this
division.
   (b) The bank shall be under the direction of an executive director
appointed by the Governor, and who shall serve at the pleasure of
the Governor. The appointment shall be subject to confirmation by the
Senate.
   64300.12.  (a) The bank shall be governed and its corporate power
exercised by a board of directors that shall consist of the following
five persons:
   (1) The Governor shall appoint three members to the board, subject
to confirmation by the Senate.
   (2) The Senate Committee on Rules shall appoint a member.
   (3) The Speaker of the Assembly shall appoint a member.
   (b) Any designated director shall serve at the pleasure of the
designating power.
   (c) Three of the members shall constitute a quorum and the
affirmative vote of a majority of a quorum shall be necessary for any
action to be taken by the board.
   (d) A member of the board shall not participate in any bank action
or attempt to influence any decision or recommendation by any
employee of, or consultant to, the bank that involves a sponsor of
which he or she is a representative or in which the member or a
member of his or her immediate family has a personal financial
interest within the meaning of Section 87100. For purposes of this
section, "immediate family" means the spouse, children, and parents
of the member.
   (e) Except as provided in this subdivision, the members of the
board shall serve without compensation, but shall be reimbursed for
actual and necessary expenses incurred in the performance of their
duties to the extent that reimbursement for these expenses is not
otherwise provided or payable by another public agency, and shall
receive one hundred dollars ($100) for each full day of attending
meetings of the bank.
   64300.14.  The executive director shall manage and conduct the
business and affairs of the bank, the green infrastructure bank fund,
and guarantee trust fund, subject to the direction of the board.
Except as otherwise provided in this section, the board may assign to
the executive director, by resolution, those duties generally
necessary or convenient to carry out its powers and purposes under
this chapter. Any action involving final approval of any bonds,
notes, or loans shall require the approval of a majority of the
members of the board. Subject to any conditions that the board may
from time to time prescribe, the executive director may exercise any
power, function, or duty conferred by law on the bank in connection
with the administration, management, and conduct of the business and
affairs of the bank, the green infrastructure bank fund, and the
guarantee trust fund.
   64300.16.  (a) The officers of the bank shall be subject to the
Political Reform Act of 1974 (Title 9 (commencing with Section
81000)), the applicable rules and standards of the Municipal
Securities Rulemaking Board, and all other applicable laws.
   (b) The bank may purchase insurance for its fiduciaries or for
itself to cover liability or losses occurring by reason of the act or
omission of a fiduciary, if the insurance permits recourse by the
insurer against the fiduciary in the case of a breach fiduciary
obligation by the fiduciary.
   64300.18.  In administering and directing the day-to-day
operations of the bank in regard to this act, the executive director,
or whoever he or she shall assign, may do any of the following if
authorized by resolution of the board:
   (a) Enter into contracts for investment, guarantee, or
enhancement.
   (b) Establish procedures, guidelines, criteria, terms, conditions,
or other requirements of any contract, bond, grant, or program, as
the case may be, in order to carry out the intent and purpose of the
board in authorizing any bond, loan, or grant program pursuant to
this division.
   (c) Decline to guarantee any risk, or to enter into any contract,
in which the minimum requirements of the guarantee trust fund or the
green infrastructure bank fund are not complied with.
   (d) Reinsure any risk or any part of any risk.
   (e) Make rules for payments through the green infrastructure bank
fund and the settlement of claims against the guarantee trust fund
and determine to whom and through whom the payments are to be made.
   (f) Enter into any contracts or obligations relating to the green
infrastructure bank fund and the guarantee trust fund.
   (g) Invest and reinvest the moneys belonging to the green
infrastructure bank fund and the guarantee trust fund as provided by
this act.
   (h) Enter into any contract or loan agreement, execute any
instrument, conduct all business and affairs, and perform all acts
relating to the green infrastructure bank fund and the guarantee
trust fund whether or not specifically designated in this act.
   64300.20.  The board may delegate to the executive director, or
whomever he or she shall assign, the authority to execute a contract
or agreement, execute an instrument, conduct all business and
affairs, and perform all acts relating to the green infrastructure
bank fund and the guarantee trust fund.
   64300.22.  The executive director may contract with the Department
of Finance, the State Department of Health Care Services, the
Department of Transportation, the Department of Water Resources, the
California Integrated Waste Management Board, the State Water
Resources Control Board, the Governor's Office of Planning and
Research, and any other necessary agencies, persons, or firms to
enable the bank to properly perform the duties imposed by this act.
   64300.24.  The board shall do the following:
   (a) Adopt bylaws for the regulation of its affairs and the conduct
of its business.
   (b) Adopt an official seal.
   64300.26.  The board may do or delegate the following to the
executive director:
   (a) Sue and be sued in its own name.
   (b) As provided in Chapter 5 (commencing with Section 64300.116),
issue bonds and authorize special purpose trusts to issue bonds,
including, at the option of the board, bonds bearing interest that is
taxable for the purpose of federal income taxation, or borrow money
to pay all or any part of the cost of any project, or to otherwise
carry out the purposes of this act.
   (c) Engage the services of private consultants to render
professional and technical assistance and advice in carrying out the
purposes of this act.
   (d) Employ attorneys, financial consultants, and other advisers as
may, in the bank's judgment, be necessary in connection with the
issuance and sale, or authorization of special purpose trusts for the
issuance and sale, of any bonds, notwithstanding Sections 11042 and
11043.
   (e) Contract for engineering, architectural, accounting, or other
services of appropriate state agencies as may, in its judgment, be
necessary for the successful development of a project.
   (f) Pay the reasonable costs of consulting engineers, architects,
accountants, and construction, land use, recreation, and
environmental experts employed by any sponsor or participating party
if, in the bank's judgment, those services are necessary for the
successful development of a project.
   (g) Acquire, take title to, and sell by installment sale or
otherwise, lands, structures, real or personal property, rights,
rights-of-way, franchises, easements, and other interests in lands
that are located within the state, or transition property as the bank
may deem necessary or convenient for the financing of the project,
upon terms and conditions that it considers to be reasonable.
   (h) Receive and accept from any source including, but not limited
to, the federal government, the state, or any agency thereof, loans,
contributions, or grants, in money, property, labor, or other things
of value, for, or in aid of, a project, or any portion thereof.
   (i) Make loans to any sponsor or participating party, either
directly or by making a loan to a lending institution, in connection
with the financing of a project in accordance with an agreement
between the bank and the sponsor or a participating party, either as
a sole lender or in participation with other lenders. However, no
loan shall exceed the total cost of the project as determined by the
sponsor or the participating party and approved by the bank.
   (j) Make loans to any sponsor or participating party, either
directly or by making a loan to a lending institution, in accordance
with an agreement between the bank and the sponsor or participating
party to refinance indebtedness incurred by the sponsor or
participating party in connection with projects undertaken and
completed prior to any agreement with the bank or expectation that
the bank would provide financing, either as a sole lender or in
participation with other lenders.
   (k) Mortgage all or any portion of the bank's interest in a
project and the property on which any project is located, whether
owned or thereafter acquired, including the granting of a security
interest in any property, tangible or intangible.
   (l) Assign or pledge all or any portion of the bank's interests in
transition property and the revenues therefrom, or assets, things of
value, mortgages, deeds of trust, bonds, bond purchase agreements,
loan agreements, indentures of mortgage or trust, or similar
instruments, notes, and security interests in property, tangible or
intangible and the revenues therefrom, of a sponsor or a
participating party to which the bank has made loans, and the
revenues therefrom, including payment or income from any interest
owned or held by the bank, for the benefit of the holders of bonds.
   (m) Make, receive, or serve as a conduit for the making of, or
otherwise provide for, grants, contributions, guarantees, insurance,
credit enhancements or liquidity facilities, or other financial
enhancements to a sponsor or a participating party as financial
assistance for a project.
   (n) Lease the project being financed to a sponsor or a
participating party, upon terms and conditions that the bank deems
proper but shall not be leased at a loss; charge and collect rents
therefor; terminate any lease upon the failure of the lessee to
comply with any of the obligations thereof; include in any lease, if
desired, provisions that the lessee shall have options to renew the
lease for a period or periods, and at rents determined by the bank;
purchase any or all of the project; or, upon payment of all the
indebtedness incurred by the bank for the financing of the project,
the bank may convey any or all of the project to the lessee or
lessees.
   (o) Charge and equitably apportion among sponsors and
participating parties the bank's administrative costs and expenses
incurred in the exercise of the powers and duties conferred by this
act.
   (p) Issue, obtain, or aid in obtaining, from any department or
agency of the United States, from other agencies of the state, or
from any private company, any insurance or guarantee to, or for, the
payment or repayment of interest or principal, or both, or any part
thereof, on any loan, lease, or obligation or any instrument
evidencing or securing the same, made or entered into pursuant to
this act.
   (q) Notwithstanding any other provision of this act, enter into
any agreement, contract, or any other instrument with respect to any
insurance or guarantee; accept payment in the manner and form as
provided therein in the event of default by a sponsor or a
participating party; and issue or assign any insurance or guarantee
as security for the bank's bonds.
   (r) Enter into any agreement or contract, execute any instrument,
and perform any act or thing necessary or convenient to, directly or
indirectly, secure the bank's bonds, the bonds issued by a special
purpose trust, or a sponsor's obligations to the bank or to a special
purpose trust, including, but not limited to, bonds of a sponsor
purchased by the bank or a special purpose trust for retention or
sale, with funds or moneys that are legally available and that are
due or payable to the sponsor by reason of any grant, allocation,
apportionment or appropriation of the state or agencies thereof, to
the extent that the Controller shall be the custodian at any time of
these funds or moneys, or with funds or moneys that are or will be
legally available to the sponsor, the bank, or the state or any
agencies thereof by reason of any grant, allocation, apportionment,
or appropriation of the federal government or agencies thereof; and
in the event of written notice that the sponsor has not paid or is in
default on its obligations to the bank or a special purpose trust,
direct the Controller to withhold payment of those funds or moneys
from the sponsor over which it is or will be custodian and to pay the
same to the bank or special purpose trust or their assignee, or
direct the state or any agencies thereof to which any grant,
allocation, apportionment or appropriation of the federal government
or agencies thereof is or will be legally available to pay the same
upon receipt by the bank or special purpose trust or their assignee,
until the default has been cured and the amounts then due and unpaid
have been paid to the bank or special purpose trust or their
assignee, or until arrangements satisfactory to the bank or special
purpose trust have been made to cure the default.
   (s) Enter into any agreement or contract, execute any instrument,
and perform any act or thing necessary, convenient, or appropriate to
carry out any power expressly given to the bank by this division,
including, but not limited to, agreements for the sale of all or any
part, including principal, interest, redemption rights or any other
rights or obligations, of bonds of the bank or of a special purpose
trust, liquidity agreements, contracts commonly known as interest
rate swap agreements, forward payment conversion agreements, futures
or contracts providing for payments based on levels of, or changes
in, interest rates or currency exchange rates, or contracts to
exchange cashflows or a series of payments, or contracts, including
options, puts or calls to hedge payments, rate, spread, currency
exchange, or similar exposure, or any other financial instrument
commonly known as a structured financial product.
   (t) Purchase, with the proceeds of the bank's bonds, transition
property or bonds issued by, or for the benefit of, any sponsor in
connection with a project, pursuant to a bond purchase agreement or
otherwise. Bonds or transition property purchased pursuant to this
division may be held by the bank, pledged or assigned by the bank, or
sold to public or private purchasers at public or negotiated sale,
in whole or in part, separately or together with other bonds issued
by the bank, and notwithstanding any other law, may be bought by the
bank at private sale.
   (u) Enter into purchase and sale agreements with all entities,
public and private, including state and local government pension
funds, with respect to the sale or purchase of bonds or transition
property.
   (v) Invest any moneys held in reserve or sinking funds, or any
moneys not required for immediate use or disbursement, in obligations
that are authorized by law for the investment of trust funds in the
custody of the Treasurer.
   (w) Authorize a special purpose trust or trusts to purchase or
retain, with the proceeds of the bonds of a special purpose trust,
transition property or bonds issued by, or for the benefit of, any
sponsor in connection with a project or issued by the bank or a
special purpose trust, pursuant to a bond purchase agreement or
otherwise. Bonds or transition property purchased pursuant to this
title may be held by a special purpose entity, pledged or assigned by
a special purpose entity, or sold to public or private purchasers at
public or negotiated sale, in whole or in part, with or without
structuring, subordination or credit enhancement, separately or
together with other bonds issued by a special purpose trust, and
notwithstanding any other law, may be bought by the bank or by a
special purpose trust at private sale.
   (x) Apply for and accept subventions, grants, loans, advances, and
contributions from any source of money, property, labor, or other
things of value. The sources may include bond proceeds, dedicated
taxes, state appropriations, federal appropriations, federal grant
and loan funds, public and private sector retirement system funds,
and proceeds of loans from the Pooled Money Investment Account.
   (y) Do all things necessary and convenient to carry out its
purposes and exercise its powers, provided, however, that nothing
herein shall                                          be construed to
authorize the bank to engage directly in the business of a
manufacturing, industrial, real estate development, or
nongovernmental service enterprise. Further, the bank shall not be
organized to accept deposits of money for time or demand deposits or
to constitute a bank or trust company.
   64300.28.  Section 64300.26 shall not be construed to extend or
limit the authority of the bank that is otherwise provided in Section
19130 to the extent applicable.
   64300.30.  The fiscal powers granted to the bank by this part may
be exercised without regard or reference to any other department,
division, or agency of the state, except the Legislature. This
division shall be deemed to provide an alternative method of doing
the things authorized by this division, and shall be regarded as
supplemental and additional to powers conferred by other laws.
   64300.32.  (a) The bank may provide insurance or reinsurance of
loans or portions thereof, or their debt service, including amounts
payable as premiums of penalties in the event of mandatory or
optional prepayment, made to finance a project, and to provide
insurance or reinsurance or reserves, or portions thereof, or the
yield therefrom, established to secure bonds issued to fund those
loans or reserves.
   (b) The bank may enter into or arrange agreements for insurance or
reinsurance with users, mortgagors, lending institutions, insurers,
and others, the bank being authorized to reinsure or cede risks to
the insurers in any amounts as the bank may determine and the
insurers, if otherwise authorized to reinsure or insure those risks
in California, being hereby authorized to reinsure the bank or cede
risks to the bank to the same extent as if the bank were a company
authorized to reinsure or insure those risks.
   (c) The bank may fix a rate or rates of premium for insurance or
reinsurance, which need not be uniform, and may reflect any risks and
classifications of risk as the bank determines to be reasonable.
   (d) The bank may exercise those other powers as are necessary or
incidental to insurance, reinsurance, and related matters.
   (e) The bank shall make reasonable provisions for the security of
loans made by the bank, and any insurance, reinsurance, and other
financing arrangements negotiated by the bank.
   (f) The insurance or reinsurance provided for by the bank shall
not constitute a debt or pledge of the faith and credit of the state
or any subdivision of the state.
   64300.34.  Bonds issued by the bank or a special purpose trust are
legal investments for all trust funds, the funds of all insurance
companies, banks, both commercial and savings, trust companies,
executors, administrators, trustees, and other fiduciaries, for state
school funds, pension funds, and for any funds that may be invested
in county, school, or municipal bonds. These bonds are securities
that may legally be deposited with, and received by, any state or
municipal officer or agency or political subdivision of the state for
any purpose for which the deposit of bonds or obligations of the
state is now, or may hereafter be, authorized by law, including,
deposits to secure public funds.
   64300.36.  Liability shall not be incurred by the bank beyond the
extent to which funds have been provided under this act. However, for
the purposes of meeting the necessary expenses of initial
organization and operation until the date that the bank derives
revenues or proceeds from bonds as provided under this act, the bank
may borrow money as needed for the purposes of meeting the necessary
expenses of initial organization and operation from the Pooled Money
Investment Account, as specified in subdivision (w) of Section
64300.26 or from any special funds, including the special funds of
existing financing authorities. The borrowed money shall be repaid
with interest within a reasonable time after the bank receives
revenues or proceeds from bonds as provided under this act.
   64300.38.  (a) Neither the bank nor a special purpose trust
authorized by the bank is required to pay any property taxes or
assessments upon, or with respect to, any project or any property
acquired by, or for, the bank under this division, or upon the income
therefrom, so long as the bank, on behalf of the state, holds title
to the project or to the property contained in the project.
   (b) The exemption of the bank or of a special purpose trust from
taxation of any property shall cease when title to the property is
transferred from the bank to any taxable person or entity. This
section shall not exempt any taxable person or entity from taxation,
including, but not limited to, taxation upon a possessory interest,
with respect to any project, or the property of facilities contained
in any project that may otherwise be applicable to the person.
   64300.40.  The state does hereby pledge to, and agrees with, the
holders of any bonds issued under this act, and with those parties
who may enter into contracts with the bank pursuant to this act, that
the state will not limit or alter the rights hereby vested in the
bank to finance any project and to fulfill the terms of any loan
agreement, lease, or other contract with the agency pursuant to this
act, or in any way impair the rights or remedies of the bondholders
or of the parties until those bonds, together with interest thereon,
are fully discharged or provision for this discharge has been made
and those contracts are fully performed on the part of the bank. The
bank, as agent for the state, may include this pledge and undertaking
for the state in its obligations or contracts.
   64300.42.  The bank shall establish a reasonable schedule of
administrative fees, not to exceed the regulatory cost of performing
the work to which the fees relate, which shall be paid by the sponsor
or the participating party pursuant to Section 64300.124, to
reimburse the state for the costs of administering this division.
Fees collected pursuant to this section shall be deposited in the
green infrastructure bank fund.
   64300.52.  The bank shall, not later than February 1 of each year,
submit to the Governor and the Joint Legislative Budget Committee a
report of its activities pursuant to this act for the preceding
fiscal year. The report shall include all of the following:
   (a) A listing of applications accepted.
   (b) A specification of bonds sold and interest rates thereon.
   (c) The amount of other public and private funds leveraged by the
assistance provided.
   (d) A report of revenues and expenditures for the preceding fiscal
year, including all of the bank's costs. The information provided
pursuant to this subdivision shall include, but need not be limited
to, both of the following:
   (1) The amount and source of total bank revenues. Revenues shall
be shown by main categories of revenues, including interest earnings,
fees collected, and bond proceeds, for each bank program.
   (2) The amount and type of total bank expenditures. Expenditures
shall be shown by major categories of expenditures, including loans
provided, debt service payments, and program support costs, for each
bank program.
   (e) A projection of the bank's needs and requirements for the
coming year.
   (f) (1) Recommendations for changes in state and federal law
necessary to meet the objectives of this division.
   (2) This subdivision shall become inoperative on January 1, 2018,
pursuant to Section 10231.5.
   64300.56.  (a) Following consultation with appropriate state and
local agencies, the bank shall establish criteria, priorities, and
guidelines for the selection of projects to receive assistance from
the bank. Projects shall comply with the criteria, priorities, and
guidelines adopted by the bank.
   (b) When the bank establishes or makes changes to the criteria,
priorities, and guidelines, the bank shall notify the Governor, the
fiscal and policy committees of the Legislature that exercise
legislative oversight of the bank, and appropriate state and local
agencies.
   (c) The resolution required in Section 64300.58 shall have been
adopted prior to the project's selection by the bank.
   (d) The criteria, priorities, and guidelines established by the
bank shall include, but not be limited to, the following:
   (1) Maximizing economic, environmental, and public health benefits
to the state.
   (2) Fostering job creation by promoting in-state greenhouse gas
emissions reduction projects carried out by California workers and
businesses.
   (3) Complementing efforts to improve air quality.
   (4) Directing investment toward the most disadvantaged communities
and households in the state.
   (5) Providing opportunities for businesses, public agencies,
nonprofits, and other community institutions to participate in and
benefit from statewide efforts to reduce greenhouse gas emissions.
   (6) Lessening the impacts and effects of climate change on the
state's communities, economy, and environment.
   (7) Funding to reduce greenhouse gas emissions through energy
efficiency, clean and renewable energy generation, distributed
renewable energy generation, transmission and storage, and other
related actions, including, but not limited to, public universities,
state and local public buildings, and industrial and manufacturing
facilities.
   (8) Funding to reduce greenhouse gas emissions through the
development of state-of-the-art systems to move goods and freight,
advanced technology vehicles and vehicle infrastructure, advanced
biofuels, and low-carbon and efficient public transportation.
   (9) Funding to reduce greenhouse gas emissions associated with
water use and supply, land and natural resource conservation and
management, forestry, and sustainable agriculture.
   (10) Funding to reduce greenhouse gas emissions through strategic
planning and development of sustainable infrastructure projects,
including, but not limited to, transportation and housing.
   (11) Funding to reduce greenhouse gas emissions through increased
in-state diversion of municipal solid waste from disposal through
waste reduction, diversion, and reuse.
   (12) Funding to reduce greenhouse gas emissions through
investments in programs implemented by local and regional agencies,
local and regional collaboratives, and nonprofit organizations
coordinating with local governments.
   (13) Funding in research, development, and deployment of
innovative technologies, measures, and practices related to programs
and projects funded pursuant to this part.
   64300.58.  (a) Prior to submitting a project to the bank for
consideration, the legislative body or bodies of the sponsor or
sponsors of the project shall find, by resolution, each of the
following:
   (1) The project is consistent with the general plan of both the
city and county, or city and county in the case of San Francisco, or
only the county for projects in unincorporated areas in which the
project is located.
   (2) The proposed financing is appropriate for the specific
project.
   (3) The project facilitates effective and efficient use of
existing and future public resources so as to promote both
sustainable infrastructure and conservation of natural resources.
   (4) The project is consistent with the criteria, priorities, and
guidelines for the selection of projects adopted pursuant to Section
64300.56.
   (b) Upon the adoption of the resolution in subdivision (a) by the
legislative body, the legislative body shall transmit the resolution
to the executive director of the infrastructure bank.
   64300.60.  It is the intent of the Legislature to enact
legislation to appropriate an amount equal to 50 percent of the
proceeds in the Greenhouse Gas Reduction Fund, created pursuant to
Section 16428.8, to be used for purposes of carrying out this act
consistent with paragraph (6) of subdivision (c) of Section 39712 of
the Health and Safety Code.
   64300.62.  Notwithstanding any other provision of this division,
Sections 64300.56, 64300.58, and 64300.60 shall not apply to any
conduit financing for facilities by the bank directly for the benefit
of a participating party.
   64300.64.  The bank shall consider a project for conduit financing
for facilities upon filing of an application with the bank by an
appropriate participating party, on the terms and conditions the bank
shall determine. The bank shall establish procedures for the
expeditious review of applications for the issuance or approval of
bonds to finance economic development facilities.
   64300.66.  In order to provide or arrange for the financing of
facilities, the bank may:
   (a) Issue taxable revenue bonds pursuant to Chapter 5 (commencing
with Section 64300.116) to provide financing for projects compatible
with the public interest as specified in Section 64300.68.
   (b) Issue taxable revenue bonds pursuant to Chapter 5 (commencing
with Section 64300.116) to provide financing for the revolving loan
funds and projects of small business development corporations, local
economic development corporations, community development
corporations, and nonprofit organizations, which revolving loan funds
and economic development projects shall be compatible with the
public interest.
   (c) Issue tax-exempt revenue bonds pursuant to Chapter 5
(commencing with Section 64300.116) to provide financing for
facilities as permitted by federal law and in accordance with
applicable California law relating to the distribution of state
allocations for private activity bonds. Projects so financed shall be
compatible with the public interest as specified in Section
64300.68.
   (d) Issue tax-exempt revenue bonds pursuant to Chapter 5
(commencing with Section 64300.116) for economic development
facilities of public sector and nonprofit organizations qualifying
for exemption under federal law.
   64300.68.  Financing shall not be made by the bank under Section
64300.62, 64300.64, 64300.66, 64300.68, or 64300.70 unless the bank
shall have first determined that the financing or assistance meets
the following public interest criteria:
   (a) The financing, loan, grant, or other assistance is for a
project or a use in the State of California.
   (b) Those seeking funds or other assistance are capable of meeting
obligations incurred under relevant agreements.
   (c) In the case of loans or bonds, payments to be made under
applicable financing documents are adequate to pay the current
expenses of the bank in connection with the financing and to make
payments on the bonds.
   (d) The proposed financing is appropriate for the specific
project.
   64300.70.  (a) Any loan entered into pursuant to Section 64300.62,
64300.64, 64300.66, 64300.68, or 64300.70 may contain provisions for
payment of a penalty if any recipient of funds under this article
leaves this state prior to the completion of the full term of the
loan.
   (b) Any recipient of funds under this article that utilizes the
funds for construction purposes shall certify that the contractors
are properly licensed by the Contractors' State License Board
established in Section 7000.5 of the Business and Professions Code.
   (c) The bank shall require that the proposed economic development
facilities not be inconsistent with any existing local or regional
comprehensive plan.
   (d) The bank shall develop a policy regarding financing companies
that move within this state so as to minimize any displacement of
jobs.
   (e) In addition to any other methods the bank may use to identify
projects, the bank shall utilize existing green energy development
networks to identify these projects and prepare a plan, in
consultation with local networks and their organizations and
representatives, to implement this policy.
      CHAPTER 3.  CALIFORNIA GREEN INFRASTRUCTURE BANK FUND


   64300.80.  (a) There is hereby created in the State Treasury the
California Green Infrastructure Bank Fund for the purpose of
implementing the objectives and provisions of this act. Within the
fund there shall also be established a Sponsor Revenue Bond Account,
a Participating Party Revenue Bond Account, a State Infrastructure
Revolving Account, and additional accounts and subaccounts that the
bank may establish from time to time.
   (b) Notwithstanding Section 13340 and except as provided in
subdivision (c), all moneys in the green infrastructure bank fund,
except for penalty moneys, including, but not limited to, those
moneys described in Section 64300.70, are continuously appropriated
without regard to fiscal years for the support of the bank and shall
be available for expenditure for the purposes stated in this
division.
   (c) Moneys in the green infrastructure bank fund shall be
available for expenditure for general administration only upon
appropriation by the Legislature. This subdivision shall not limit
the authority of the bank to expend funds directly related to the
servicing of approved debt. Moneys in the fund shall be available for
the purpose of general administration of the authority only upon
appropriation by the Legislature, but not more than 5 percent of any
bond proceeds administered by the authority may be expended to cover
the costs of issuance, as that terminology is defined under Section
147(g) of the Internal Revenue Code.
   (d) The executive director may transfer funds between the green
infrastructure bank fund and the guarantee trust fund when
appropriate to accomplish the financing objectives of this division.
   64300.82.  (a) The bank may pledge any or all of the moneys in the
fund as security for payment of the principal of, and interest on,
any particular issuance of bonds issued pursuant to this chapter. The
bank may use any or all of the moneys in the fund, including the
grant account, to retain or purchase for retention or sale,
subordinated bonds issued by the bank, by a special purpose trust, or
by a sponsor pursuant to this chapter. For these purposes, or as
necessary or convenient to the accomplishment of any other purpose of
the bank, the bank may divide the fund into separate accounts or
subaccounts. All moneys accruing to the bank pursuant to this
division from any sources shall be deposited in the fund.
   (b) Subject to priorities that may be created by the pledge of
particular moneys in the green infrastructure bank fund to secure any
issuance of revenue bonds of the bank, a special purpose trust, or a
sponsor, and subject further to reasonable costs that may be
incurred by the bank in administering the program authorized by this
division, all moneys in the green infrastructure bank fund derived
from any source, shall be held in trust for the security and payment
of revenue bonds of the bank, a special purpose trust, or a sponsor
and shall not be used or pledged for any other purpose so long as the
revenue bonds are outstanding and unpaid.
   (c) Pursuant to any agreements with the holders of revenue bonds
pledging any particular assets, revenues, or moneys, the bank may
create separate accounts or subaccounts in the green infrastructure
bank fund to manage these assets, revenues, or moneys in the manner
set forth in the agreements.
   (d) The bank may, from time to time, direct the Treasurer to
invest moneys in the green infrastructure bank fund that are not
required for its current needs, including proceeds from the sale of
any bonds, in any eligible securities specified in Section 16430 as
the bank shall designate. The bank may direct the Treasurer to
deposit moneys in interest-bearing accounts in any bank in this state
or in any savings and loan association in this state. The bank may
alternatively require the transfer of moneys in the green
infrastructure bank fund to the Surplus Money Investment Fund for
investment pursuant to Article 4 (commencing with Section 16470) of
Chapter 3 of Part 2 of Division 4 of Title 2. Notwithstanding Section
16305.7, all interest or other increment resulting from the
investment or deposit of moneys from the green infrastructure bank
fund shall be deposited in the green infrastructure bank fund. Moneys
in the green infrastructure bank fund shall not be subject to
transfer to any other funds pursuant to any provision of Part 2
(commencing with Section 16300) of Division 4 of Title 2, except to
the Surplus Money Investment Fund.
   (e) Subject to any agreement with holders of particular bonds, in
furtherance of Section 51373 of the Health and Safety Code, and to
the extent permitted by law, the bank may also invest moneys of the
green infrastructure bank fund, including, but not limited to,
proceeds of any of its bonds or refunding bonds, in obligations of
financial institutions as are permitted by board resolution. The bank
may alternatively require the transfer of moneys in the green
infrastructure bank fund to the Surplus Money Investment Fund for
investment pursuant to Article 4 (commencing with Section 16470) of
Chapter 3 of Part 2 of Division 4 of Title 2.
   (f) Subject to any agreement with the holders of particular bonds,
all interest or other increment resulting from the investment or
deposit shall be deposited in the green infrastructure bank fund,
notwithstanding Section 16305.7. Moneys in the green infrastructure
bank fund shall not be subject to transfer to any other fund pursuant
to Part 2 (commencing with Section 16300) of Division 4 of Title 2,
excepting the Surplus Money Investment Fund.
   (g) The green infrastructure bank fund shall be organized as a
public enterprise fund.
   (h) The bank shall cause all moneys in the green infrastructure
bank fund that are in excess of current requirements to be invested
and reinvested, from time to time.
   64300.84.  (a) The bank may administer and distribute among its
accounts and subaccounts, at its discretion, the proceeds from any
general obligation bonds issued in accordance with the State General
Obligation Bond Law (Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2).
   (b) The assets of the green infrastructure bank fund shall be
available for the payment of the salaries and other expenses charged
against it in accordance with this division.
   64300.86.  All expenses incurred in carrying out the purposes of
this act shall be payable solely from funds provided pursuant to this
act, and no liability or obligation shall be imposed upon the state
and none shall be incurred by the agency beyond the extent to which
money shall have been provided pursuant to this act.
   64300.88.  (a) Moneys in the green infrastructure bank fund
received from the proceeds of bonds issued pursuant to this division
may not be transferred to any other fund except as necessary to pay
the expenses of operating the program authorized by this act.
   (b) The green infrastructure bank fund, on behalf of the bank, may
borrow or receive moneys from the bank or from any federal, state,
or local agency or private entity, in order to create reserves in the
green infrastructure bank fund as provided in this act and as
authorized by resolution of the board.
   64300.90.  Notwithstanding Chapter 2 (commencing with Section
12850) of Part 2.5 of Division 3 of Title 2 and Article 2 (commencing
with Section 13320) of Chapter 3 of Part 3 of Division 3 of Title 2,
expenditures of the green infrastructure bank fund shall not be
subject to the supervision or approval of any other officer or
division of state government, with the exception of the Legislature.
However, the bank's budget shall be prepared and reviewed not later
than November 1 of each year and the agency shall submit to the
Legislature a report of its activities for the prior fiscal year in
compliance with Section 9795. However, the bank's budget regarding
the green infrastructure bank fund shall be prepared and reviewed in
accordance with Section 50913, and, not later than February 1 of each
year, the agency shall submit to the Legislature a report of its
activities for the prior fiscal year in compliance with Section 9795.
The bank's operating budget shall be subject to review and
appropriation in the annual Budget Act.
      CHAPTER 4.  CALIFORNIA GREEN INFRASTRUCTURE GUARANTEE TRUST
FUND


   64300.100.  (a) There is hereby created in the State Treasury the
California Green Infrastructure Guarantee Trust Fund.
   Notwithstanding Section 13340 and except as provided in
subdivision (b), all money in the guarantee trust fund is hereby
continuously appropriated to the bank without regard to fiscal years
for the purpose of insuring all or a portion of the accounts and
subaccounts within the green infrastructure bank fund, any contracts
or obligations of the bank or a sponsor, and all or a part of any
series of bonds issued by the bank, by a special purpose trust, or by
a sponsor pursuant to this act, and for the purpose of defraying
administrative expenses incurred by the bank in operating the
programs of loan and bond guarantee. All insurance premiums received
by the bank for insurance, guarantees, or enhancements provided
pursuant to this act shall be deposited in the guarantee trust fund.
The guarantee trust fund is authorized to guarantee all or a part of
any of the accounts and subaccounts within the green infrastructure
bank fund, any contracts or obligations of the bank, a special
purpose trust, or a sponsor, and all or part of any series of bonds
issued by the bank, by a special purpose trust, or by a sponsor and
to authorize payment on any guarantee or enhancement of the guarantee
trust fund.
   (b) Moneys in the green infrastructure bank fund shall be
available for expenditure for general administration only upon
appropriation by the Legislature. This subdivision shall not limit
the authority of the bank to expend funds directly related to the
servicing of approved debt.
   64300.102.  (a) Notwithstanding Chapter 2 (commencing with Section
12850) of Part 2.5 of Division 3 of Title 2 and Article 2
(commencing with Section 13320) of Chapter 3 of Part 3 of Division 3
of Title 2, expenditure of the guarantee trust fund shall not be
subject to the supervision or approval of any other officer or
division of state government, with the exception of the Legislature.
However, the bank's budget respecting the guarantee trust fund shall
be prepared and reviewed not later than February 1 of each year and
the bank shall submit to the Legislature a report of its activities
for the prior fiscal year. However, the bank's budget regarding the
green infrastructure bank fund shall be prepared and reviewed in
accordance with Section 50913. Not later than February 1 of each
year, the agency shall submit to the Legislature a report of its
activities for the prior fiscal year. The bank's operating budget
shall be subject to review and appropriation in the annual Budget
Act.
   (b) A report to the Legislature pursuant to this subdivision shall
be submitted in compliance with Section 9795.
                                  (c) This subdivision shall become
inoperative on January 1, 2018, pursuant to Section 10231.5.
   64300.104.  (a) The bank may, from time to time, direct the
Treasurer to invest moneys in the guarantee trust fund that are not
required for its current needs in any eligible securities specified
in Section 16430 that the bank shall designate. The bank may direct
the Treasurer to invest the moneys by entering into repurchase
agreements or reverse repurchase agreements, which, for purposes of
this section, shall mean agreements for the purchase or sale of
eligible securities pursuant to which the seller or buyer agrees to
repurchase or sell back the securities on or before a specified date
and for a specified amount. The bank may direct the Treasurer to
invest the moneys in the subordinated securities of the bank, a
special purpose trust, or a sponsor. The bank may direct the
Treasurer to invest the moneys in investment agreements with
corporations, financial institutions, or national associations within
the United States that are rated by a nationally recognized rating
service within the top three rating categories of the service. For
purposes of this section, investment agreements shall mean any
agreement for the investment of moneys in the guarantee trust fund
whether at fixed or variable interest rates, and may include, but not
be limited to, repurchase agreements, notes, uncollateralized time
deposits, certificates of deposit, and the subordinated securities of
the bank, a special purpose trust, or a sponsor. The bank may direct
the Treasurer to deposit moneys in interest-bearing accounts in
state or national banks or other financial institutions having
principal offices in this state.
   (b) In furtherance of Section 51373 of the Health and Safety Code,
and to the extent permitted by law, the bank may also invest moneys
of the guarantee trust fund in obligations of financial institutions
that are permitted by board resolution. The bank may alternatively
require the transfer of moneys in the guarantee trust fund to the
Surplus Money Investment Fund for investment pursuant to Article 4
(commencing with Section 16470) of Chapter 3 of Part 2 of Division 4
of Title 2.
   (c) All interest or other increment resulting from the investment
or deposit shall be deposited in the guarantee trust fund,
notwithstanding Section 16305.7.
   (d) The bank may create other accounts within the guarantee trust
fund as are necessary or convenient to carry out the purposes of this
article.
   64300.106.  (a) There is a guarantee reserve account in the
guarantee trust fund to secure commitments under contracts to
guarantee all or part of the bonds of the bank, a special purpose
trust, or of a sponsor, any contracts or obligations of the bank, a
special purpose trust, or of a sponsor, and all or part of the
accounts or subaccounts within the green infrastructure bank fund.
The bank shall take all reasonable steps to ensure that the guarantee
reserve account is continuously maintained at not less than the
reserve account requirement established pursuant to subdivision (a)
of Section 64300.108. The bank shall pay all of the following into
the guarantee reserve account:
   (1) Moneys appropriated and made available by the Legislature for
deposit in the account.
   (2) Any proceeds of bonds, including general obligation bonds, to
the extent provided in the resolution, trust agreement, resolutions
or trust agreements authorizing the issue thereof.
   (3) Any other moneys that the bank may make available for the
purpose of deposit to the guarantee reserve account.
   (b) The bank shall not cause sums to be withdrawn from the
guarantee reserve account in amounts that would reduce the moneys
therein to less than the reserve account requirement, except as
necessary to satisfy liabilities arising under contracts of
guarantee. In the event that the loan guarantee reserve account is
reduced to less than the reserve account requirement, the bank shall
cease making commitments for, and contracts of, guarantees and
enhancements until the guarantee reserve account has been restored to
that requirement.
   64300.108.  (a) The Legislature may from time to time appropriate
or transfer to the guarantee reserve account from funds or accounts
that are legally available, an amount or amounts as the Legislature
may determine. The Legislature may establish, and from time to time
increase, for the guarantee reserve account a requirement that shall
be known as the "reserve account requirement."
   (b) If the bank determines that the amount in the reserve account
is below the reserve account requirement, the executive director
shall immediately certify in writing to the Joint Legislative Budget
Committee, the Speaker of the Assembly, the Senate Committee on
Rules, and the Governor, the sum required to restore the reserve fund
to the reserve account requirement.
   (c) Upon making the certification, the executive director shall
ask the Governor to request an appropriation, and shall use his or
her best efforts to have a sum requested and appropriated.
   (d) Upon receiving notice that the amount in the reserve account
is below the reserve account requirement, the Legislature may, at its
discretion, choose to appropriate and pay to the bank for deposit
into the guarantee reserve account that sum that would restore the
reserve account to an amount equal to the reserve account
requirement.
   (e) The bank may utilize any moneys that may be appropriated to
the guarantee trust fund from time to time by the Legislature for
effectuating its purposes, including, but not limited to, the payment
of the initial expenses of administration and operation and the
restoration of the reserve account to the reserve account
requirement.
   64300.110.  (a) The obligation of the bank and of the state to pay
any guarantee benefit pursuant to contracts of guarantee or any
other contracts or obligations of the bank, a special purpose trust,
or sponsor shall be a limited obligation of the bank payable solely
from amounts deposited in the guarantee trust fund that are made
available therefor under the respective contracts of guarantee. The
guarantee of loans or bonds under this act shall not directly or
indirectly or contingently obligate the state or any political
subdivision thereof to levy or to pledge any form of taxation
whatever therefor, or to make any appropriation for their payment.
   (b) All contracts of guarantee or any other contracts or
obligations of the bank, special purpose trust, or a sponsor pursuant
to this act 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 is pledged to the payment of the principal
of or interest on this contract of guarantee."
   (c) Moneys in the guarantee trust fund may not be transferred to
any other fund except for payment on any guarantee or enhancements or
except as necessary to pay the expenses of operating the program of
bond guarantee and enhancement authorized by this division, nor shall
the bank utilize any moneys under the direction and control of the
agency, including, but not limited to, moneys in the California
Housing Loan Insurance Fund and the California Housing Finance Fund,
other than moneys in the guarantee trust fund, to satisfy liabilities
arising from contracts of guarantee authorized by this division.
   64300.112.  The bank may charge and collect insurance guarantee or
enhancement premiums or other fees for the insurance guarantees or
enhancements described in this chapter and impose other reasonable
charges and fees for services performed in connection with approval
and processing of the guarantees or enhancements, or for pool
assembly, loan servicing, or other services the bank may provide to a
special service trust.
   64300.114.  (a) Moneys in the green infrastructure bank fund
received from the proceeds of bonds issued pursuant to this act may
not be transferred to any other fund except as necessary to pay the
expenses of operating the program authorized by this act, nor shall
the bank utilize any moneys under the direction and control of the
agency, including, but not limited to, moneys in the California
Housing Loan Insurance Fund and the Housing Finance Fund, other than
moneys in the green infrastructure bank fund to satisfy liabilities
arising from projects authorized by this act.
   (b) The green infrastructure bank fund, on behalf of the bank or a
special purpose trust, may borrow or receive moneys from any
federal, state, or local agency or private entity, in order to create
reserves in the green infrastructure bank fund as provided in this
division and as authorized by resolution of the board.
      CHAPTER 5.  REVENUE BONDS


   64300.116.  (a) The bank may, from time to time, issue its revenue
bonds in a principal amount that the bank shall determine to be
necessary to provide sufficient funds for its purposes, which may
include, but shall not be limited to, providing funds for the payment
of costs of a project, for the purchase of bonds of a special
purpose trust or a sponsor, payment of interest on bonds of the bank
or of a special purpose trust, establishment of reserves to secure
bonds, refunding previously issued bonds or refunding bonds of the
bank, special purpose trust, or a sponsor, and payment of other
expenditures of the bank or special purpose trust incident to
issuance of bonds or refunding bonds of the bank.
   (b) The bank, by private sale pursuant to a bond purchase
agreement, may purchase the bonds of any local sponsor or of any
special purpose trust that are issued pursuant to any other provision
of applicable law, and may be secured with any funds, moneys, or
revenues that are legally available.
   (c) The bank may also issue bonds or authorize a special purpose
trust to issue bonds for the purpose of making loans to a sponsor to
be used by a sponsor to pay for the cost of a project, and that loan
may be secured with any funds, moneys, or revenues that are legally
available, including, but not limited to, any legally available funds
or moneys that are due or payable to the sponsor by reason of any
grant, allocation, or appropriation of the state or agencies thereof,
to the extent that the Controller shall be the custodian at any time
of these funds or moneys, and any legally available funds or moneys
that are or will be due or payable to any sponsor, the bank, or the
state or the agencies thereof by reason of any grant, allocation,
apportionment, or appropriation of the federal government or agencies
thereof.
   64300.118.  (a) Notwithstanding any other law, but consistent with
Sections 1 and 18 of Article XVI of the California Constitution, a
sponsor may issue bonds for purchase by the bank pursuant to a bond
purchase agreement. The bank may issue bonds or authorize a special
purpose trust to issue bonds. These bonds may be issued pursuant to
the charter of any city or any city and county that authorized the
issuance of these bonds as a sponsor and may also be issued by any
sponsor pursuant to the Revenue Bond Law of 1941 (Chapter 6
(commencing with Section 54300) of Part 1 of Division 2 of Title 5)
to pay the costs and expenses pursuant to this title, subject to the
following conditions:
   (1) With the prior approval of the bank, the sponsor may sell
these bonds in any manner as it may determine, either by private sale
or by means of competitive bid.
   (2) Notwithstanding Section 54418, the bonds may be sold at a
discount at any rate as the bank and sponsor shall determine.
   (3) Notwithstanding Section 54402, the bonds shall bear interest
at any rate and be payable at any time as the sponsor shall determine
with the consent of the bank.
   (b) The total amount of bonds issued to finance public development
facilities that may be outstanding at any one time under this
chapter shall not exceed five billion dollars ($5,000,000,000). The
total amount of rate reduction bonds that may be outstanding at any
one time under this chapter shall not exceed ten billion dollars
($10,000,000,000).
   (c) Bonds for which moneys or securities have been deposited in
trust, in amounts necessary to pay or redeem the principal, interest,
and any redemption premium thereon, shall be deemed not to be
outstanding for purposes of this section.
   64300.120.  (a) The bank may give final approval for the issuance
of the bonds or of the authorization of a special purpose trust upon
terms it deems necessary or desirable.
   (b) The executive director may establish the terms and conditions
for the issuance of the bonds or of the authorization of a special
purpose trust and take any other action necessary or desirable for
the issuance of the bonds or of a special purpose trust authorized by
the bank.
   (c) Any action under this section shall be at the discretion of
the bank.
   64300.122.  The Treasurer, the Governor, or the Lieutenant
Governor is an elected representative of the state authorized to
fulfill the public approval requirement of Section 147(f) of Title 26
of the Internal Revenue Code (26 U.S.C.A. Sec. 147(f)), including
subsequent amendments thereto, or its successor provision, for the
issuance of tax-exempt bonds issued by the bank, a special purpose
trust, or a sponsor pursuant to this chapter.
   64300.124.  (a) Bonds may be authorized to finance a single
project for a single sponsor or a participating party, a series of
projects for a single sponsor or a participating party, a single
project for several sponsors or participating parties, or several
projects for several sponsors or participating parties.
   (b) Except as otherwise expressly provided by the bank, every
issue of its bonds shall be payable from any revenues or other moneys
of the bank available therefor and not otherwise pledged. These
revenues or moneys may include the proceeds of additional bonds,
subject only to any agreements with the holders of particular bonds
pledging any particular revenues or moneys. Notwithstanding that the
bonds may be payable from a special fund, these bonds shall be deemed
to be negotiable instruments for all purposes.
   (c) Subject to the limitations in Section 64300.118, bonds may be
issued in one or more series, may be issued as serial bonds or as
term bonds or as a combination thereof. The bonds shall be authorized
by resolution of the bank and shall, as provided by the resolution,
bear the date of issuance, the time of maturity, which shall not
exceed 50 years from the date of issuance, bear the rate or rates of
interest, be payable at the time or times provided, be in the
denominations provided, be in the form or forms provided, carry the
registration privileges provided, be executed in the manner provided,
be payable in lawful money of the United States, or other designated
currency, at the place or places provided, and be subject to any
terms of redemption provided therein.
   (d) Sale of the bonds of the bank or of a special purpose trust
shall be coordinated by the Treasurer in accordance with Section
5702. The Treasurer shall sell the bonds within 90 days of receiving
a certified copy of the resolution authorizing the sale of bonds,
unless the board adopts a resolution extending the 90-day period.
   (e) The sale may be a public or private sale, and for any price or
prices, and on any terms and conditions, as the bank determines
proper, after giving due consideration to the recommendations of any
special purpose trust and any sponsor to be assisted from the
proceeds of the bonds. Pending preparation of definitive bonds, the
Treasurer may issue interim receipts, certificates, or temporary
bonds that shall be exchanged for definitive bonds.
   64300.126.  Any resolution authorizing any bonds or the
authorization of a special purpose trust or any issue of bonds of the
bank or a special purpose trust may contain the following
provisions, which shall be a part of the contract with the holders of
the bonds to be authorized:
   (a) Provisions pledging the full faith and credit of the bank, or
pledging all or any part of the revenues of any project, or any
revenue-producing contract or contracts made by the bank with any
sponsor, or any other moneys of the bank, to secure the payment of
the bonds or of any particular issue of bonds, subject to those
agreements with bondholders as may then exist and consistent with
Sections 1 and 18 of Article XVI of the California Constitution.
   (b) Provisions setting out the rentals, fees, purchase payments,
loan repayments, and other charges, and the amounts to be raised in
each year thereby, and the use and disposition of the revenues.
   (c) Provisions setting aside reserves or sinking funds, or
providing for the use of subordinated classes of bonds by the bank or
a special purpose trust, and the regulation and disposition thereof.

   (d) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured, and the
refunding of outstanding bonds.
   (e) The procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds and the
holders thereof that are required to give consent thereto, and the
manner in which the consent may be given.
   (f) Limitations on the bank's expenditures for operation and
administration, or other expenses.
   (g) Definitions of acts or omissions to act that constitute a
default in the duties of the bank to holders of its obligations, and
providing the rights and remedies of the holders in the event of a
default.
   (h) The mortgaging of any project and the site thereof for the
purpose of securing the interests of the bondholders.
   (i) The mortgaging of land, improvements, or other assets owned by
a sponsor or participating party for the purpose of securing the
interests of the bondholders.
   64300.128.  Neither the officers of the bank nor any person
executing the bonds of the bank or a special purpose trust shall be
personally liable for the bonds or be subject to any personal
liability or accountability by reason of the issuance thereof.
   64300.130.  The bank, a special purpose trust, or any sponsor or
participating party may, out of any funds available therefor,
purchase their respective bonds. The bank and a special purpose trust
may hold, pledge, cancel, or resell their bonds, subject to and in
accordance with agreements with bondholders.
   64300.132.  In the discretion of the bank, a special purpose
trust, or the sponsor, as the case may be, any bonds issued under
this chapter may be secured by a trust agreement between the bank, a
special purpose trust, or the sponsor and a corporate trustee or
trustees, that may include the Treasurer or any trust company or bank
having the powers of a trust company within or without the state.
   (a) The trust agreement or the resolution providing for the
issuance of the bonds may pledge or assign any funds or assets of the
bank or special purpose trust legally available for pledge or
assignment, all or a portion of the revenues to be received by the
bank, directly or indirectly, with respect to the project, or the
proceeds of any contract or contracts, loan or loan agreements, bond
or bond purchase agreements, and may convey or mortgage the project
or projects, or any portion thereof, to be financed out of the
proceeds of the bonds. The trust agreement or resolution providing
for the issuance of the bonds may contain provisions for protecting
and enforcing the rights and remedies of bondholders as may be
reasonable and proper and not in violation of law, including
provisions specifically authorized to be included in any resolution
or resolutions of the bank or a sponsor authorizing bonds.
   (b) Any bank or trust company doing business under the laws of the
state that may act as a depository of the proceeds of bonds or of
revenues or other moneys shall furnish indemnifying bonds or pledge
securities when required by the bank, a special purpose trust, or a
sponsor.
   (c) The trust agreement may set forth the rights and remedies of
the bondholders and of the trustee or trustees, and may restrict the
individual right of action by bondholders. In addition, any trust
agreement or resolution may contain other provisions that the bank
may deem reasonable and proper for the security of the bondholders.
   (d) The trust agreement may provide for the pledge or assignment
of funds or moneys in the custody of the Controller that are legally
available to a sponsor and that are due or payable to the sponsor by
reason of any grant, allocation, apportionment, or appropriation of
the state or agencies thereof, and any legally available funds or
moneys that are or will be due or payable, to any sponsor, the bank,
the state or the agencies thereof by reason of any grant, allocation,
apportionment, or appropriation of the federal government or
agencies thereof.
   64300.134.  (a) Bonds issued under this chapter do not constitute
a debt or liability of the state or of any political subdivision
thereof, other than the bank or a special purpose trust, and do not
constitute a pledge of the full faith and credit of the state or any
of its political subdivisions, other than the bank or special purpose
trust, but are payable solely from the funds provided therefor under
this chapter and shall be consistent with Sections 1 and 18 of
Article XVI of the California Constitution. This subdivision shall in
no way preclude bond guarantees or enhancements pursuant to this
title. All the bonds shall contain on the face thereof a statement to
the following effect:
   "Neither the full faith and credit nor the taxing power of the
State of California is pledged to the payment of the principal of, or
interest on, this bond."
   (b) The issuance of bonds under this chapter shall not directly or
indirectly or contingently obligate the state or any political
subdivision thereof to levy or to pledge any form of taxation
therefor or to make any appropriation for their payment. Nothing in
this section shall prevent, or be construed to prevent, the bank from
pledging the full faith and credit of the green infrastructure bank
fund to the payment of bonds or issuance of bonds authorized pursuant
to this chapter.
   64300.136.  The validity of any bonds issued under this chapter
shall not be affected by any proceedings related to the authorization
or implementation of the project financed by the bonds.
   64300.138.  (a) The bank or a special purpose trust may issue
bonds for the purpose of refunding any bonds, notes, or other
securities of the bank, a special purpose trust, or a sponsor then
outstanding, including the payment of any redemption premium thereon
and any interest accrued, or to accrue, on their earliest or any
subsequent date of redemption, purchase, or maturity of these bonds.
The bank, or a sponsor, if it deems advisable, may issue or authorize
a sponsor to issue bonds for the additional purpose of paying all or
any part of the cost of constructing and acquiring additions,
improvements, extensions, or enlargements of any project or any
portion thereof.
   (b) The proceeds of any bonds issued for the purpose of refunding
outstanding bonds as provided in subdivision (a) may, in the
discretion of the bank, be applied to the purchase or retirement at
maturity or redemption of those outstanding bonds either on their
earliest or any subsequent redemption date or upon the purchase or
retirement at the maturity thereof and may, pending this application,
be placed in escrow to be applied to the purchase or retirement at
maturity or redemption of those outstanding bonds on the date or
dates as may be determined by the bank.
   (c) Pending this use, the escrowed proceeds may be invested and
reinvested by the Treasurer or a trustee in obligations of, or
guaranteed by, the United States, or in certificates of deposit or
time deposits secured by obligations of, or guaranteed by, the United
States, maturing at the time or times appropriate to assure prompt
payment, of the principal, interest, and redemption premium, if any,
of the outstanding bonds to be refunded. The interest, income, and
profits, if any, earned or realized on the investment may also be
applied to the payment of the outstanding bonds to be refunded. After
the terms of the escrow have been fully satisfied and carried out,
any balance of the proceeds and interest, income, and profits, if
any, earned or realized on the investments thereof, shall be returned
to the agency for use in carrying out the purposes of this act.
   (d) The portion of the proceeds of the bonds issued for the
additional purpose of paying all or any part of the cost of
construction and acquiring additions, improvements, extensions, or
enlargements of any project may be invested and reinvested by the
Treasurer or a trustee in obligations of, or guaranteed by, the
United States, or in certificates of deposit or time deposits secured
by obligations of, or guaranteed by, the United States, maturing not
later than the time or times when these proceeds will be needed for
the purpose of paying all or any part of the cost. The interest,
income, and profits, if any, earned or realized on this investment
may be applied to the payment of all, or any part of, the cost or may
be used by the bank in carrying out the purposes of this act.
   64300.140.  Notwithstanding anything herein to the contrary, this
act shall be supplemental to, and not in lieu of, the right of any
sponsor to issue general obligation bonds or bonds that it is
otherwise lawfully authorized to issue or cause to be issued.
   64300.142.  Any and all bonds issued by the bank or a special
purpose trust, their transfer and the income therefrom, shall at all
times be free from taxation of every kind by the state and by all
political subdivisions of the state.
   64300.144.  (a) Any issue of revenue bonds by the bank may be
secured and made more attractive to capital markets through financial
instruments, including, but not limited to:
   (1) Deeds of trust on the resources, facilities, and revenues of
the projects.
   (2) Credit enhancements, including, but not limited to, letters of
credit, bond insurance, and surety bonds provided by private
financial institutions.
   (3) Insurance and guarantees provided by the bank itself.
   (b) The bank may make loans to help establish and support the
revolving loan funds of small business development corporations,
economic development corporations, community development
corporations, and nonprofit corporations. The loans may be made from
any appropriate account or subaccount of the California Green
Infrastructure Bank Fund and as determined by the bank.
   64300.146.  Whenever the bank deems that it will increase the
salability or the price of the bonds to obtain, prior to or after
sale, a legal                                                 opinion
from private counsel as to the validity or tax-exempt nature of the
bonds, the bank may obtain a legal opinion. Payment for legal
services may be made out of the proceeds of the sale of the bonds.
   64300.148.  The bank may employ financial consultants, advisers,
and accountants, as may be necessary in its judgment, in connection
with the issuance and sale of any bonds of the bank. Payment for
these services may be made out of the proceeds of the sale of the
bonds.
   64300.150.  Section 10295 and Sections 10335 to 10381, inclusive,
of the Public Contract Code shall not apply to agreements entered
into by the bank in connection with the sale of bonds or notes
authorized under this act.
  SEC. 2.  Section 39712 of the Health and Safety Code is amended to
read:
   39712.  (a) (1) It is the intent of the Legislature that moneys
shall be appropriated from the fund only in a manner consistent with
the requirements of this part and Article 9.7 (commencing with
Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title 2 of
the Government Code.
   (2) The state shall not approve allocations for a measure or
program using moneys appropriated from the fund except after
determining, based on the available evidence, that the use of those
moneys furthers the regulatory purposes of Division 25.5 (commencing
with Section 38500) and is consistent with law. If any expenditure of
moneys from the fund for any measure or project is determined by a
court to be inconsistent with law, the allocations for the remaining
measures or projects shall be severable and shall not be affected.
   (b) Moneys shall be used to facilitate the achievement of
reductions of greenhouse gas emissions in this state consistent with
this division and, where applicable and to the extent feasible:
   (1) Maximize economic, environmental, and public health benefits
to the state.
   (2) Foster job creation by promoting in-state greenhouse gas
emissions reduction projects carried out by California workers and
businesses.
   (3) Complement efforts to improve air quality.
   (4) Direct investment toward the most disadvantaged communities
and households in the state.
   (5) Provide opportunities for businesses, public agencies,
nonprofits, and other community institutions to participate in and
benefit from statewide efforts to reduce greenhouse gas emissions.
   (6) Lessen the impacts and effects of climate change on the state'
s communities, economy, and environment.
   (c) Moneys appropriated from the fund may be allocated, consistent
with subdivision (a), for the purpose of reducing greenhouse gas
emissions in this state through investments that may include, but are
not limited to, any of the following:
   (1) Funding to reduce greenhouse gas emissions through energy
efficiency, clean and renewable energy generation, distributed
renewable energy generation, transmission and storage, and other
related actions, including, but not limited to, at public
universities, state and local public buildings, and industrial and
manufacturing facilities.
   (2) Funding to reduce greenhouse gas emissions through the
development of state-of-the-art systems to move goods and freight,
advanced technology vehicles and vehicle infrastructure, advanced
biofuels, and low-carbon and efficient public transportation.
   (3) Funding to reduce greenhouse gas emissions associated with
water use and supply, land and natural resource conservation and
management, forestry, and sustainable agriculture.
   (4) Funding to reduce greenhouse gas emissions through strategic
planning and development of sustainable infrastructure projects,
including, but not limited to, transportation and housing.
   (5) Funding to reduce greenhouse gas emissions through increased
in-state diversion of municipal solid waste from disposal through
waste reduction, diversion, and reuse.
   (6) Funding to reduce greenhouse gas emissions through investments
in programs implemented by local and regional agencies, local and
regional collaboratives, and nonprofit organizations coordinating
with local governments  , including the California Green
Infrastructure Bank as described in Division 4 (commencing with
Section 64300) of the Government Code  .
   (7) Funding in research, development, and deployment of innovative
technologies, measures, and practices related to programs and
projects funded pursuant to this part.
                               ____ CORRECTIONS  Text--Pages 14, 17,
18, 22, 23, 24, 25, 26, 27, 28, 29, 30, and 36.
                                        ____