AB 117,
as amended, Committee on Budget. begin deleteBudget Act of 2015. end deletebegin insertPublic resources.end insert
(1) Existing law establishes the Office of Statewide Health Planning and Development and sets forth its powers and duties, including, but not limited to, the administration of the California Health Facility Construction Loan Insurance Law for the purposes of insuring health facility construction loans. Existing law authorizes the office to make loans from the continuously appropriated Health Facility Construction Loan Insurance Fund to participating health facilities to finance or refinance the construction, improvement, or expansion of health facilities. Existing law requires that all debentures, as defined, issued under those provisions to any lender or bondholder be executed in the name of the fund as obligor, be signed by the Treasurer, and be negotiable. Existing law provides that in the event that the fund fails to pay the principal or interest on debentures issued, then the Treasurer is required to pay to the holders the amount entitled out of any money in the State Treasury not otherwise appropriated.
end insertbegin insertThis bill would make those funds continuously appropriated from the General Fund, thereby making an appropriation. The bill would also require issued debentures to bear interest equal to the insured loan or bond, as specified, and would require the Treasurer to take appropriate steps to provide that interest on debentures be exempt from federal taxation, if tax exempt.
end insertbegin insert(2) The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
end insertbegin insertThe Jobs and Economic Improvement Through Environmental Leadership Act of 2011 authorizes the Governor, until January 1, 2016, to certify projects meeting certain requirements for streamlining benefits provided by that act. The act provides that if a lead agency fails to approve a project certified by the Governor before January 1, 2016, then the certification expires and is no longer valid. The act requires a lead agency to prepare the record of proceedings for the certified project concurrent with the preparation of the environmental documents.
end insertbegin insertThis bill would provide that the certification expires and is no longer valid if the lead agency fails to approve a certified project before January 1, 2017. Because the bill would extend the obligation of the lead agency to prepare concurrently the record of proceedings, this bill would impose a state-mandated local program.
end insertbegin insert(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
end insertbegin insertThis bill would provide that no reimbursement is required by this act for a specified reason.
end insertbegin insert(4) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
end insertThis bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.
end deleteVote: majority.
Appropriation: begin deleteno end deletebegin insertyesend insert.
Fiscal committee: begin deleteno end deletebegin insertyesend insert.
State-mandated local program: begin deleteno end deletebegin insertyesend insert.
The people of the State of California do enact as follows:
begin insertSection 129160 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
2amended to read:end insert
(a) begin insert(1)end insertbegin insert end insert All debentures issued under this chapter to
4any lender or bondholder shall be executed in the name of the fund
5as obligor, shall be signed by the State Treasurer, and shall be
6negotiable. Pursuant to Sections 129125 and 129130, all debentures
7shall be dated as of the date of the institution of foreclosure
8proceedings or as of the date of the acquisition of the property
9after default by other than foreclosure, or as of another date as the
10office, in its discretion, may establish.begin delete Theend delete
11begin insert(2)end insertbegin insert end insertbegin insertTheend insert debentures shall bear interest from that date at a rate
12begin delete approved by the State Treasurer, equal to either the rate applicable begin insert
equal to the insured loan or bonds, and shall be
13to the most recent issue of State General Fund bonds or that
14specified in Section 129130, which shall be payable on the dates
15as the office, in its discretion, may establish except in the case of
16bonds or other evidences of indebtedness as specified in Section
17129130, and shall have the same maturity date as the loan which
18they insuredend delete
19payable on a payment schedule identical with payments on the
20insured loan or bonds. The State Treasurer shall take appropriate
21steps to the extent feasible to provide that interest on the debentures
22shall be exempt from federal income taxation under Section 103
23of the Internal Revenue Code to the extent interest on the insured
24loan or bonds is exempt from federal income taxation under Section
25103 of the Internal Revenue Code on the date the insured loan or
26bonds is exchanged for debenturesend insert. All debentures shall be exempt,
27both as to principal and interest, from all taxation now or hereafter
28imposed by the state or local taxing agencies, shall be paid out of
29the fund, which shall be primarily liable therefor, and shall be,
30pursuant to Section 4 of Article XVI of the California Constitution,
31fully and unconditionally guaranteed as to principal and interest
32by the State of California, which guaranty shall be expressed on
33the
face of the debentures.begin delete Inend delete
P4 1begin insert(3)end insertbegin insert end insertbegin insertInend insert the event that the fund fails to pay upon demand, when
2due, the principal ofbegin insert,end insert or interest onbegin insert,end insert any debentures issued under
3this chapter, the State Treasurer shall pay to the holders the amount
4thereofbegin insert,end insert
whichbegin delete is authorized to be appropriated, out of any money begin insert
amount, notwithstanding Section 13340 of the Government
5inend delete
6Code, is hereby continuously appropriated from the General Fund
7ofend insert thebegin delete Treasury not otherwise appropriatedend deletebegin insert State Treasury, without
8regard to fiscal yearsend insert, and thereupon to the extent of the amount
9so paid the State Treasurer shall succeed to all the rights of the
10holders of the debentures. The fund shall be liable for repayment
11to thebegin insert General Fund of the Stateend insert Treasury of any money paid
12begin delete therefromend deletebegin insert
from the General Fundend insert pursuant to this section in
13accordance with procedures jointly established by the State
14Treasurer and the office.
15(b) begin deleteIn the event of a default, any end deletebegin insertAny end insertdebenture issued under
16this article shall be paid on a par with general obligation bonds
17issued by the state.
begin insertSection 21189.1 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
19amended to read:end insert
If, prior to January 1,begin delete 2016,end deletebegin insert 2017,end insert a lead agency fails
21to approve a project certified by the Governor pursuant to this
22chapter, then the certification expires and is no longer valid.
No reimbursement is required by this act pursuant to
24Section 6 of Article XIII B of the California Constitution because
25a local agency or school district has the authority to levy service
26charges, fees, or assessments sufficient to pay for the program or
27level of service mandated by this act, within the meaning of Section
2817556 of the Government Code.
This act is a bill providing for appropriations related
30to the Budget Bill within the meaning of subdivision (e) of Section
3112 of Article IV of the California Constitution, has been identified
32as related to the budget in the Budget Bill, and shall take effect
33immediately.
It is the intent of the Legislature to enact statutory
35changes relating to the Budget Act of 2015.
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