Amended in Assembly March 24, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1230


Introduced by Assembly Member Gomez

February 27, 2015


begin deleteAn act to amend Section 65858 of the Government Code, relating to land use. end deletebegin insertAn act to add Part 7.1 (commencing with Section 15427) to Division 3 of Title 2 of the Government Code, relating to state government, and making an appropriation therefor.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1230, as amended, Gomez. begin deleteZoning regulations: interim ordinances. end deletebegin insert California Americans with Disabilities Act Small Business Compliance Financing Act.end insert

begin insert

Existing law provides various programs to expand access to persons with disabilities and promote compliance with the federal Americans with Disabilities Act of 1990. Existing law authorizes a specified authority to make loans, funded by bonds issuances, to health facilities to assist those participating health facilities lower the costs of financing certain kinds of projects in order to pass along those savings to the public paying for healthcare at those facilities.

end insert
begin insert

This bill would enact the California Americans with Disabilities Act Small Business Compliance Financing Authority Act to establish a self-sustaining program to provide loans, funded in part by bond issuances, to assist small businesses finance the costs of projects that alter or retrofit existing small business facilities to comply with the federal American with Disabilities Act. This bill would specify that any bonds issued under the act do not constitute a debt or liability of the state or a pledge of the faith and credit of the state, other than the California Americans with Disabilities Act Small Business Compliance Financing Authority.

end insert
begin insert

This bill would establish in state government the California Americans with Disabilities Act Small Business Compliance Financing Authority, composed of seven specified members. This bill would require the Treasurer, as chair of the authority, to appoint an executive director who serves at the pleasure of the authority. This bill would require the authority to comply with existing open meeting and public record disclosure laws, as specified.

end insert
begin insert

This bill would establish the California Americans with Disabilities Act Small Business Compliance Financing Authority Fund, as a continuously appropriated fund, and require the authority to use the fund for all its purposes. This bill would also transfer $50,000,000 from the General Fund to the California Americans with Disabilities Act Small Business Compliance Financing Authority Fund.

end insert
begin delete

The Planning and Zoning Law authorizes the legislative body of a city, including a charter city, a county, or a city and county under specified conditions to adopt for a period of 45 days as an urgency measure an interim ordinance prohibiting any uses that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the legislative body, the planning commission, or the planning department is considering or studying or intends to study within a reasonable time. The law also authorizes prescribed extensions of the interim ordinance, subject to specified conditions. The law further requires the legislative body to issue a written report describing the measures taken to alleviate the condition which led to the adoption of the interim ordinance at least 10 days prior to the expiration of the interim ordinance or any extension.

end delete
begin delete

This bill would instead require the written report to be issued 15 days prior to the expiration of the interim ordinance or any extension.

end delete

Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertPart 7.1 (commencing with Section 15427) is
2added to Division 3 of Title 2 of the end insert
begin insertGovernment Codeend insertbegin insert, to read:end insert

begin insert

 

P3    1PART begin insert7.1.end insert  California Americans with Disabilities
2Act Small Business Compliance Financing
3Authority

4

4 

5Chapter  begin insert1.end insert General Provisions
6

 

7

begin insert15427.end insert  

This act shall be known and may be cited as the
8California Americans with Disabilities Act Small Business
9Compliance Financing Authority Act.

10

begin insert15427.2.end insert  

It is the intent of the Legislature in this act to establish
11a self-sustaining program to provide loans to assist small
12businesses in complying with the Americans with Disabilities Act.
13It is not the intent of the Legislature to fund the physical expansion
14of small businesses that includes modifications that comply with
15the Americans with Disabilities Act, or to authorize the authority
16to control or participate in the operation of a small business except
17to the extent necessary to secure payment by a small business that
18defaulted on a loan to the authority, and then only to the extent
19that complies with the loan agreement between that small business
20and the authority.

21

begin insert15427.4.end insert  

Unless the context requires otherwise, as used in the
22act the following words and terms shall have the following
23meanings:

24(a) “Act” means the California Americans with Disabilities Act
25Small Business Compliance Financing Authority Act enacted
26pursuant to this part.

27(b) “Americans with Disabilities Act” means the federal
28Americans with Disabilities Act (42 U.S.C. 12101, et seq.) and
29amendments thereto.

30(c) “Authority” means the California Americans with
31Disabilities Act Small Business Compliance Financing Authority
32created by the act or any board, body, commission, department,
33or officer acting under the authorization of the act.

34(d) “Cost” means and includes all or any part of the price of
35construction, purchase price of real or personal property, the price
36of demolishing or removing any buildings or structures, the price
37of all machinery and equipment, the amount of financing charges
38and interest prior to, during, and for a period not to exceed the
39later of one year or one year following completion of construction,
40as determined by the authority, the price of insurance during
P4    1construction, the amount of funding or financing noncapital
2expenses, the amount of reserves for principal and interest and
3for extensions, enlargements, additions, replacements, renovations
4and improvements, the price of engineering, financial and legal
5services and other service contracts, the price of plans,
6specifications, studies, surveys, estimates, administrative expenses,
7and any other expenses of funding or financing, that are necessary
8or incidental to determining the total payment necessary to
9complete a project.

10(e) “Fund” means the California Americans with Disabilities
11Act Small Business Compliance Financing Authority Fund
12established by Section 15427.24.

13(f) “Project” means the physical alterations or retrofits to an
14existing small business facility of less than 5,000 square feet
15necessary to ensure that facility is in compliance with the
16Americans with Disability Act, and the financing necessary to pay
17all costs of the project.

18(g) “Small business” means a business located in California
19that meets all of the following criteria:

20(1) Less than six full-time equivalent employees.

21(2) Less than one million dollars ($1,000,000) in total gross
22annual income from all sources.

23(3) Does not provide overnight accommodations.

24 

25Chapter  begin insert2.end insert the California Americans with Disabilities
26Act Small Business Compliance Financing Authority
27

 

28

begin insert15427.6.end insert  

There is in state government the California Americans
29with Disabilities Act Small Business Compliance Financing
30Authority.

31

begin insert15427.8.end insert  

The California Americans with Disabilities Act Small
32Business Compliance Financing Authority constitutes a public
33instrumentality, and the exercise by the authority of the powers
34conferred by the act shall be deemed and held to be the
35performance of an essential public function.

36

begin insert15427.10.end insert  

(a) The authority shall be composed of the following
37seven members:

38(1) The Treasurer, who shall serve as the chair.

39(2) The Controller.

40(3) The Director of Finance.

P5    1(4) The Director of General Services.

2(5) One member appointed by the Senate Committee on Rules
3who shall have specialized knowledge or experience with
4accessibility issues for people with disabilities.

5(6) One member appointed by the Speaker of the Assembly who
6shall be the owner of a small business or a member of an
7organization that represents the interests of small businesses.

8(7) One member appointed by the Governor, subject to
9confirmation by a majority vote of the Senate, who shall be a
10member of the State Bar of California with professional experience
11in consumer protection laws.

12

begin insert15427.12.end insert  

(a) Each member shall serve a term of four years.
13An individual appointed to fill a vacancy occurring during a term
14of office shall only serve the remainder of the unexpired term.

15(b) At the expiration of his or her four-year term, a member
16shall continue to hold office until the successor has been appointed
17and qualifies to begin serving.

18(c) A member shall be eligible for reappointment.

19(d) Members of the authority shall serve without compensation,
20but the authority may reimburse members for necessary expenses
21incurred in the discharge of their duties.

22(e) This section shall only apply to the members appointed by
23the Senate Committee on Rules, the Speaker of the Assembly, and
24the Governor.

25

begin insert15427.14.end insert  

The Director of Finance and the Director of General
26Services may designate an employee in his or her department to
27act for him or her at meetings of the authority.

28

begin insert15427.16.end insert  

The State Treasurer, in his or her capacity as the
29chair, shall appoint an executive director, who shall not be a
30member of the authority and who shall serve at the pleasure of the
31authority. The executive director shall receive compensation fixed
32by the authority.

33

begin insert15427.18.end insert  

(a) The executive director or the person designated
34by the authority in a resolution shall keep a record of the
35proceedings of the authority and be the custodian of the official
36seal, the minute book or journal, and all records and documents
37of the authority.

38(b) The executive director or the person designated by the
39authority in a resolution may provide a copy of a record of any
40proceeding of the authority or any other records and documents
P6    1of the authority and may give a certificate under the official seal
2of the authority that the copy is a true copy, and all persons dealing
3with the authority may rely upon that certificate.

4

begin insert15427.20.end insert  

(a) The affirmative vote of a majority of a quorum
5shall be necessary for the authority to take any action. Four
6members of the authority shall constitute a quorum, regardless of
7any vacancies in the membership of the authority.

8(b) Resolutions of the authority need not be published or posted.

9(c) (1)The authority may delegate by resolution to one or more
10of its members or the executive director the powers and duties the
11authority deems proper.

12(2) The authority may delegate to the executive director or an
13employee of the authority the powers and duties the authority
14deems proper, including, but not limited to, the power to enter into
15contracts on behalf of the authority.

16

begin insert15427.22.end insert  

The authority shall comply with the Bagley-Keene
17Open Meeting Act (Article 9 (commencing with Section 11120) of
18Chapter 1 of Part 1) and the California Public Records Act
19(Chapter 3.5 (commencing with Section 6250) of Division 7 of
20Title 1).

21 

22Chapter  begin insert3.end insert The California Americans with Disabilities
23Act Small Business Compliance Financing Authority Fund
24

 

25

begin insert15427.24.end insert  

(a) The California Americans with Disabilities Act
26Small Business Compliance Financing Authority Fund is
27established in the State Treasury. Notwithstanding Section 13340,
28all money in the fund is continuously appropriated to the authority
29for carrying out the purposes of the act. The authority may divide
30the fund into separate accounts. All moneys accruing to the
31authority pursuant to the act from any source shall be deposited
32into the fund.

33(b) Subject to the cost of loans provided by the authority
34pursuant to the act and subject further to any reasonable costs
35that may be incurred by the authority in administering the act, all
36moneys in the fund derived from any source shall be held in trust
37for the security and payment of bonds of the authority and shall
38not be used or pledged for any other purpose so long as the bonds
39are outstanding and unpaid. However, nothing in this section shall
40limit the power of the authority to make loans with the proceeds
P7    1of bonds in accordance with the terms of the resolution authorizing
2the same or pledging or granting a security interest to the provider
3of credit support as specified in the documents pursuant to which
4revenue bonds are issued.

5(c) (1) The authority may pledge any or all of the moneys in the
6fund as security for payment of the principal of, and interest on,
7any secured or unsecured loan made pursuant to the act or as
8necessary or convenient to the accomplish any purpose of the
9authority.

10(2) Pursuant to any agreements with the holders of particular
11bonds pledging any particular assets, revenues, or moneys, the
12authority may create separate accounts in the fund to manage
13assets, revenues, or moneys in the manner set forth in the
14agreements.

15(d) The authority may direct the Treasurer to invest moneys in
16the fund that are not required for its current needs, including
17proceeds from the sale of any bonds, in the eligible securities
18specified in Section 16430 as the authority shall designate. The
19authority may direct the Treasurer to deposit moneys in
20interest-bearing accounts in state or national banks or other
21 financial institutions having principal offices located in the state.
22The authority may alternatively require the transfer of moneys in
23the fund to the Surplus Money Investment Fund for investment
24pursuant to Article 4 (commencing with Section 16470) of Chapter
253 of Part 2 of Division 4. All interest or other increment resulting
26from an investment or deposit shall be deposited into the fund,
27notwithstanding Section 16305.7. Moneys in the fund shall not be
28subject to transfer to any other fund pursuant to any provision of
29Part 2 (commencing with Section 16300) of Division 4, excepting
30the Surplus Money Investment Fund.

31

begin insert15427.26.end insert  

All expenses of the authority incurred in carrying
32out the provisions of the act shall be payable solely from funds
33and authority provided to the authority.

34 

35Chapter  begin insert4.end insert Powers and Duties of the California
36Americans with Disabilities Act Small Business Compliance
37Financing Authority
38

 

P8    1

begin insert15427.28.end insert  

(a) The authority shall administer the act and is
2vested with all powers reasonably necessary to carry out the duties
3expressly granted or imposed under the act.

4(b) The authority shall establish financial eligibility standards
5for each small business seeking financing from the authority by
6studying the creditworthiness and earning capacity of the small
7business, the impact of new debt and the completion of the project
8on the small business, and the amount of pledged revenues, debt
9service coverage, and basic security.

10

begin insert15427.30.end insert  

The authority may do any of the following:

11(a) Adopt bylaws for the regulation of its affairs and the conduct
12of its business.

13(b) Adopt an official seal.

14(c) Sue and be sued in its name.

15(d) Receive and accept gifts, grants, or donations of money for
16achieving any purpose of the act from any agency of the federal
17government, another state entity, a city, county, city and county,
18any other political subdivision of the state, an individual,
19association, or corporation.

20(e) Engage private consultants to provide professional and
21technical services and advice in carrying out the purposes of the
22act.

23(f) Determine the location and character of any project to be
24financed under the act; acquire, construct, enlarge, remodel,
25renovate, alter, improve, furnish, equip, fund, finance, own,
26maintain, manage, repair, operate, lease as lessee or lessor, and
27regulate a project under the act and enter into contracts for any
28or all of those purposes; enter into contracts for the management
29and operation of a project or other small business facilities owned
30by the authority; designate a participating property manager as
31its agent to determine the location and character of a project
32undertaken by that participating small business under the act and,
33as the agent of the authority, acquire, construct, enlarge, remodel,
34renovate, alter, improve, furnish, equip, own, maintain, manage,
35repair, operate, lease as lessee or lessor, and regulate the same
36and, as the agent of the authority, to enter into contracts for any
37or all of those purposes, including contracts for the management
38and operation of that project or other small business facilities
39owned by the authority.

P9    1(g) Receive and accept from any source loans, contributions,
2or grants for, or in aid of, the construction, financing, or
3refinancing of a project or any portion of a project in money,
4property, labor, or other things of value.

5(h) Make secured or unsecured loans to, or purchase secured
6or unsecured loans of, any participating small business in
7connection with financing the costs of a project in accordance
8with an agreement between the authority and the participating
9small business. However, the authority shall not make any loan to
10a small business to finance the cost of a project that exceeds the
11lesser of $50,000 or the total cost of the project, as determined by
12the participating small business and approved by the authority.
13The authority shall not make a loan to a small business with a
14repayment period of 60 months or longer, except if the project is
15located on real property that is leased. If the project is located on
16real property that is leased, the repayment period shall not exceed
17the term of the lease, excluding any option to extend the lease. The
18authority shall only make a loan that includes an interest rate that
19equals the pooled money investment rate at the time the loan is
20approved and is sufficient to repay the reasonable pro rata
21expenses of the authority to administer the loan, including, but not
22limited to, the costs of issuing revenue bonds to fund the loan.

23(i) Enter into any and all agreements or contracts, including
24agreements for liquidity or credit enhancement, bond exchange
25agreements, interest rate swaps or hedges; execute any and all
26instruments; and do and perform any and all acts or things
27necessary, convenient, or desirable for the purposes of the
28authority or to carry out any power expressly granted by the act.

29(j) Invest any moneys held in reserve or sinking funds or any
30moneys not required for immediate use or disbursement, at the
31discretion of the authority, in any obligations authorized by the
32resolution authorizing the issuance of the bonds secured thereof
33or authorized by law for the investment of trust funds in the custody
34of the Treasurer.

35(k) The authority may require any information it deems
36necessary and prudent prior to providing a loan to a small business
37and may require any term, condition, security, or repayment
38provision it deems necessary in the event the authority chooses to
39provide a loan.

P10   1

begin insert15427.32.end insert  

(a) The authority is authorized to issue revenue
2bonds to provide funds for achieving any of the purposes under
3the act.

4(b) Except as expressly provided otherwise by the authority,
5revenue bonds shall be payable from any revenues or moneys of
6the authority available therefor and not otherwise pledged, subject
7only to any agreements with the holders of particular bonds or
8notes pledging any particular revenues or moneys. Negotiable
9bonds shall be and be deemed to be for all purposes negotiable
10instruments, notwithstanding that these bonds may be payable
11from a special fund, subject only to the provisions of these bonds
12for registration.

13(c) The authority’s revenue bonds may be issued as serial bonds
14or as term bonds, or the authority, in its discretion, may issue
15bonds of both types. The issuance of all revenue bonds shall be
16authorized by resolution of the authority and shall bear such date
17or dates, mature at such time or times, not exceeding 40 years
18from their respective dates, bear interest at such rate or rates, be
19payable at such time or times, be in such denominations, be in
20such form, either coupon or registered, carry such registration
21privileges, be executed in such manner, be payable in lawful money
22of the United States of America at such place or places, and be
23subject to such terms of redemption, as the indenture, trust
24agreement, or resolution relating to these revenue bonds may
25provide. The authority’s revenue bonds or notes may be sold by
26the Treasurer at public or private sale, after giving due
27consideration to the recommendation of the participating small
28business, for the price or prices and upon the terms and conditions
29as the authority shall determine. The Treasurer may sell these
30revenue bonds at a price below the par value thereof. However,
31the discount on any bonds so sold shall not exceed 6 percent of
32the par value thereof, except in the case of any bonds payable in
33whole or in part from moneys held under one or more outstanding
34resolutions or indentures. Pending preparation of the definitive
35bonds, the authority may issue interim receipts or certificates or
36temporary bonds which shall be exchanged for such definitive
37bonds.

38(d) A resolution or resolutions authorizing the issuance of any
39revenue bonds or any issue of revenue bonds may contain
40provisions, which shall be a part of the contract with the holders
P11   1of the bonds to be authorized, as to pledging all or any part of the
2revenues of a project or any revenue-producing contract or
3contracts made by the authority with an individual, partnership,
4corporation or association or other body, public or private, to
5secure the payment of the bonds or of a particular issue of bonds.

6(e) Neither the members of the authority nor any person
7executing the revenue bonds shall be liable personally on the bonds
8or be subject to any personal liability or accountability by reason
9of the issuance thereof.

10(f) The authority may purchase its bonds with any moneys
11available to the authority for this purpose. The authority may
12exchange bonds for its bonds. The authority may hold, pledge,
13exchange, cancel, or resell these bonds, subject to and in
14accordance with its agreements with bondholders.

15

begin insert15427.34.end insert  

In the discretion of the authority, any revenue bonds
16issued under the provisions of the act may be secured by a trust
17agreement or indenture by and between the authority and a
18corporate trustee or trustees, which may be the Treasurer or any
19trust company or bank having the powers of a trust company within
20or without the state. The trust agreement, indenture, or the
21resolution providing for the issuance of these bonds may pledge
22or assign the revenues to be received from a participating small
23business. The indenture, trust agreement, or resolution providing
24for the issuance of these bonds may contain provisions for
25protecting and enforcing the rights and remedies of the
26bondholders and any provider of credit or liquidity support for
27these bonds as may be reasonable and proper and not in violation
28of law, including particularly those provisions as have hereinabove
29been specifically authorized to be included in any resolution or
30resolutions of the authority authorizing bonds thereof. Any trust
31agreement or indenture may set forth the rights and remedies of
32the bondholders, any provider of credit or liquidity support for
33these bonds, and of the trustee or trustees, and may restrict the
34individual right of action of bondholders. In addition to the
35foregoing, any indenture, trust agreement, or resolution may
36contain such other provisions as the authority may deem
37reasonable and proper for the security of the bondholders.

38

begin insert15427.36.end insert  

Any provision that the authority may include in a
39trust agreement, indenture, or resolution pursuant to the act may
40alternatively be included in a bond with the same effect.

P12   1

begin insert15427.38.end insert  

Revenue bonds issued under the provisions of the
2act shall not be deemed to constitute a debt or liability of the state
3or of a political subdivision thereof or a pledge of the faith and
4credit of the state or of that political subdivision, other than the
5authority, but shall be payable solely from the moneys in the fund.
6These bonds shall contain a statement to the effect that neither the
7State of California nor the authority shall be obligated to pay the
8principal of, or the interest thereon, except from revenues of the
9authority, and that neither the faith and credit nor the taxing power
10of the State of California or of a political subdivision thereof is
11pledged to the payment of the principal of or the interest on these
12bonds. The issuance of revenue bonds under the act shall not
13directly or indirectly or contingently obligate the state or a political
14subdivision thereof to levy or to pledge a form of taxation whatever
15therefor or to make an appropriation for their payment.

16

begin insert15427.40end insert  

Any holder of revenue bonds issued under the act
17or any of the coupons appertaining thereto, and the trustee or
18trustees under any indenture or trust agreement, except to the
19extent the rights herein given may be restricted by any resolution
20authorizing the issuance of, or any such indenture or trust
21agreement securing, such bonds, may, either at law or in equity,
22by suit, action, mandamus or other proceedings, protect and
23enforce any and all rights under the laws of the state or granted
24hereunder or under such resolution or indenture or trust
25agreement, and may enforce and compel the performance of all
26duties required by the act or by such resolution, indenture, or trust
27agreement to be performed by the authority or by any officer,
28employee or agent thereof.

29

begin insert15427.42.end insert  

All moneys received pursuant to the act, whether as
30proceeds from selling or incurring revenue bonds or as revenues,
31shall be deemed to be trust funds to be held and applied solely as
32provided in the act. Until the funds are applied as provided in the
33act, and notwithstanding any other provision of law, the moneys
34may be invested in any obligations or securities authorized by
35resolutions of the authority authorizing the issuance of the bonds.
36Any officer with whom, or any bank or trust company with which,
37the moneys are deposited shall act as trustee of the moneys and
38shall hold and apply the moneys for the purposes hereof, subject
39to any regulations adopted pursuant to the act and the resolution
P13   1authorizing the issuance of the bonds or the indenture or trust
2agreement securing the bonds.

3

begin insert15427.44.end insert  

(a) The authority may provide for the issuance of
4bonds of the authority for the purpose of redeeming, refunding, or
5retiring any bonds or any series or issue of bonds then outstanding
6issued for the benefit of a participating small business to finance
7or refinance a project, including the payment of any redemption
8premium thereon and any interest accrued or to accrue to the date
9of redemption, purchase, or maturity of the bonds.

10(b) The proceeds of any bonds issued for the purpose of
11refunding of outstanding bonds may, in the discretion of the
12authority, be applied to the purchase, redemption prior to maturity,
13or retirement at maturity of any outstanding bonds on their earliest
14redemption date or dates, upon their purchase or maturity, or paid
15to a third person to assume the authority’s obligation or the
16applicable bond issuer’s obligation to make the payments, and
17may, pending that application, be placed in escrow to be applied
18to the purchase, retirement at maturity, or redemption on the date
19or dates determined by the authority or the participating small
20business.

21(c) Any proceeds placed in escrow may, pending their use, be
22invested and reinvested in obligations or securities authorized by
23resolutions of the authority or as determined by the participating
24small business, payable or maturing at the time or times as are
25appropriate to assure the prompt payment of the principal, interest,
26and redemption premium, if any, of the outstanding bonds to be
27refunded at maturity or redemption of the bonds to be refunded
28either at their earliest redemption date or dates or any subsequent
29redemption date or dates or for payment of interest on the
30refunding bonds on or prior to the final date of redemption or
31payment of the bonds to be refunded. After the terms of the escrow
32have been fully satisfied and carried out, any balance of the
33proceeds and interest, income and profits, if any, earned or realized
34on the investments thereof may be returned to the authority for
35use by the authority or the participating small business.

36(d) All of the bonds issued pursuant to subdivision (a) are
37subject to the act in the same manner and to the same extent as
38other bonds issued pursuant to the act.

39

begin insert15427.46.end insert  

Bonds issued by the authority under the act are
40hereby made securities in which all banks, bankers, savings banks,
P14   1trust companies and other persons carrying on a banking business;
2all insurance companies, insurance associations and other persons
3carrying on an insurance business; and all administrators,
4executors, guardians, trustees and other fiduciaries, and all other
5persons whatsoever who now are or may hereafter be authorized
6to invest in bonds or other obligations of the state, may properly
7and legally invest any funds, including capital belonging to them
8or within their control; and such bonds, notes or other securities
9or obligations are hereby made securities which may properly and
10legally be deposited with and received by any state or municipal
11officers or agency of the state for any purpose for which the deposit
12of bonds or other obligations of the state is now or may hereafter
13be authorized by law.

14

begin insert15427.48.end insert  

Any bonds issued under the provisions of the act,
15their transfer, and the income therefrom shall at all times be free
16from taxation of every kind by the state and by all political
17subdivisions in the state.

18

begin insert15427.50.end insert  

The State of California does pledge to and agree
19with the holders of the bonds issued pursuant to the act, and with
20those parties who may enter into contracts with the authority
21pursuant to the provisions of the act, that the state will not limit,
22alter or restrict the rights hereby vested in the authority to finance
23small business projects and to fulfill the terms of any agreements
24made with the holders of bonds authorized by the act, and with
25the parties who may enter into contracts with the authority
26pursuant to the act, or in any way impair the rights or remedies
27of the holders of such bonds or such parties until the bonds,
28together with interest thereon, are fully paid and discharged and
29such contracts are fully performed on the part of the authority.
30The authority as a public body corporate and politic shall have
31the right to include the pledge herein made in its bonds and
32contracts.

33

begin insert15427.52.end insert  

A pledge by or to the authority of revenues, moneys,
34accounts, accounts receivable, contract rights and other rights to
35payment of whatever kind made by or to the authority pursuant to
36the authority granted in the act shall be valid and binding from
37the time the pledge is made for the benefit of pledges and
38successors thereto. The revenues, moneys, accounts, accounts
39receivable, contract rights and other rights to payment of whatever
40kind pledged by or to the authority or its assignees shall
P15   1immediately be subject to the lien of the pledge without physical
2delivery or further act. The lien of such pledge shall be valid and
3binding against all parties, irrespective of whether the parties
4have notice of the claim. The indenture, trust agreement, resolution
5or another instrument by which such pledge is created need not
6be recorded.

7

begin insert15427.54.end insert  

Any net earnings of the authority beyond that
8necessary for retirement of any obligations issued by the authority
9or to implement the purposes of this chapter may inure to the
10benefit only of the State of California or the authority.

11

begin insert15427.56.end insert  

Upon dissolution of the authority, title to all property
12owned by the authority shall vest in the successor authority created
13by the Legislature, if any, if the successor authority qualifies under
14Section 103 of the federal Internal Revenue Code of 1954, as
15amended, and the regulations promulgated thereunder, as an
16authority entitled to issue obligations on behalf of the State of
17California the interest on which is exempt from federal income
18taxation. If no such successor authority is so created, title to such
19property shall vest in the State of California.

end insert
20begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

The sum of $50,000,000 ($50 Million) is hereby
21transferred from the General Fund to the California Americans
22with Disabilities Act Small Business Compliance Financing
23Authority Fund for the purposes of funding the activities of the
24California Americans with Disabilities Act Small Business
25Compliance Financing Authority pursuant to the California
26Americans with Disabilities Act Small Business Compliance
27Financing Authority Act.

end insert
begin delete
28

SECTION 1.  

Section 65858 of the Government Code is
29amended to read:

30

65858.  

(a) Without following the procedures otherwise
31required prior to the adoption of a zoning ordinance, the legislative
32body of a county, city, including a charter city, or city and county,
33to protect the public safety, health, and welfare, may adopt as an
34urgency measure an interim ordinance prohibiting any uses that
35may be in conflict with a contemplated general plan, specific plan,
36or zoning proposal that the legislative body, planning commission
37or the planning department is considering or studying or intends
38to study within a reasonable time. That urgency measure shall
39require a four-fifths vote of the legislative body for adoption. The
40interim ordinance shall be of no further force and effect 45 days
P16   1from its date of adoption. After notice pursuant to Section 65090
2and public hearing, the legislative body may extend the interim
3ordinance for 10 months and 15 days and subsequently extend the
4interim ordinance for one year. Any extension shall also require
5a four-fifths vote for adoption. Not more than two extensions may
6be adopted.

7(b) Alternatively, an interim ordinance may be adopted by a
8four-fifths vote following notice pursuant to Section 65090 and
9public hearing, in which case it shall be of no further force and
10effect 45 days from its date of adoption. After notice pursuant to
11Section 65090 and public hearing, the legislative body may by a
12four-fifths vote extend the interim ordinance for 22 months and
1315 days.

14(c) The legislative body shall not adopt or extend any interim
15ordinance pursuant to this section unless the ordinance contains
16legislative findings that there is a current and immediate threat to
17the public health, safety, or welfare, and that the approval of
18additional subdivisions, use permits, variances, building permits,
19or any other applicable entitlement for use which is required in
20order to comply with a zoning ordinance would result in that threat
21to public health, safety, or welfare. In addition, any interim
22ordinance adopted pursuant to this section that has the effect of
23denying approvals needed for the development of projects with a
24significant component of multifamily housing may not be extended
25except upon written findings adopted by the legislative body,
26supported by substantial evidence on the record, that all of the
27following conditions exist:

28(1) The continued approval of the development of multifamily
29housing projects would have a specific, adverse impact upon the
30public health or safety. As used in this paragraph, a “specific,
31adverse impact” means a significant, quantifiable, direct, and
32unavoidable impact, based on objective, identified written public
33health or safety standards, policies, or conditions as they existed
34on the date that the ordinance is adopted by the legislative body.

35(2) The interim ordinance is necessary to mitigate or avoid the
36specific, adverse impact identified pursuant to paragraph (1).

37(3) There is no feasible alternative to satisfactorily mitigate or
38avoid the specific, adverse impact identified pursuant to paragraph
39(1) as well or better, with a less burdensome or restrictive effect,
40than the adoption of the proposed interim ordinance.

P17   1(d)  Fifteen days prior to the expiration of that interim ordinance
2or any extension, the legislative body shall issue a written report
3describing the measures taken to alleviate the condition which led
4to the adoption of the ordinance.

5(e) When an interim ordinance has been adopted, every
6subsequent ordinance adopted pursuant to this section, covering
7the whole or a part of the same property, shall automatically
8terminate and be of no further force or effect upon the termination
9of the first interim ordinance or any extension of the ordinance as
10provided in this section.

11(f) Notwithstanding subdivision (e), upon termination of a prior
12interim ordinance, the legislative body may adopt another interim
13ordinance pursuant to this section provided that the new interim
14ordinance is adopted to protect the public safety, health, and
15welfare from an event, occurrence, or set of circumstances different
16from the event, occurrence, or set of circumstances that led to the
17adoption of the prior interim ordinance.

18(g) For purposes of this section, “development of multifamily
19housing projects” does not include the demolition, conversion,
20redevelopment, or rehabilitation of multifamily housing that is
21affordable to lower income households, as defined in Section
2250079.5 of the Health and Safety Code, or that will result in an
23increase in the price or reduction of the number of affordable units
24in a multifamily housing project.

25(h) For purposes of this section, “projects with a significant
26component of multifamily housing” means projects in which
27multifamily housing consists of at least one-third of the total square
28footage of the project.

end delete


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