BILL NUMBER: AB 1393 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Burke
FEBRUARY 27, 2015
An act to amend Sections 44520, 44525, 44526, 44559.3, and
44559.11 of, and to repeal Section 44525.7 of, the Health and Safety
Code, relating to the California Pollution Control Financing
Authority.
LEGISLATIVE COUNSEL'S DIGEST
AB 1393, as introduced, Burke. California Pollution Control
Financing Authority.
The California Pollution Control Financing Authority Act
establishes the California Pollution Control Financing Authority,
with specified powers and duties, and authorizes the authority to
approve financing for projects or pollution control facilities to
prevent or reduce environmental pollution.
This bill would authorize the authority to lend financial
assistance, including, but not limited to, grants, loans, credit
enhancements, and other incentives. The bill also would authorize the
authority to establish alternate provisions as necessary to enable
the authority to participate in an alternative funding source
program, including, but not limited to, implementing loan loss
reserve programs to benefit any person, company, corporation, public
agency, partnership, or firm engaged in activities in the state that
require financing, and to adopt the policies of those alternative
funding sources. The bill also would make conforming changes.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 44520 of the Health and Safety Code is amended
to read:
44520. (a) The authority shall, in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, adopt all necessary rules and regulations to
carry out its powers and duties under this division. The authority
may call upon any board or department of the state government for aid
and assistance in the preparation of plans and specifications and in
the development of technology necessary to effectively control
pollution.
(b) Notwithstanding subdivision (a), the authority, or any other
agency implementing a small business or brownfield site financing
assistance program pursuant to an interagency agreement with the
authority, may adopt regulations relating to small business or
brownfield site financing as emergency regulations in accordance with
Chapter the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code.
Code). For purposes of that Chapter 3.5,
the Administrative Procedure Act, including Section
11349.6 of the Government Code, the adoption of the regulations shall
be considered by the Office of Administrative Law to be necessary
for the immediate preservation of the public peace, health and
safety, and general welfare. The regulations shall be repealed 180
days after their effective date, unless the adopting authority or
agency complies with that Chapter 3.5.
(c) Notwithstanding subdivision (a), the authority, or any other
agency implementing a loan program pursuant to an interagency
agreement with the authority, may adopt regulations relating to the
loans and grants authorized under subdivision (g) of Section 44526 as
emergency regulations in accordance with Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code. For purposes of that Chapter 3.5, including Section
11349.6 of the Government Code, the adoption of the regulations shall
be considered by the Office of Administrative Law to be necessary
for the immediate preservation of the public peace, health and
safety, and general welfare. The regulations shall be repealed 180
days after their effective date, unless the adopting authority or
agency complies with that Chapter 3.5.
SEC. 2. Section 44525 of the Health and Safety Code is amended to
read:
44525. The authority may charge reasonable application and
project fees to reimburse the authority for costs incurred in
administering applications for financing pursuant to this division
and to support authority programs, including, but not limited to, the
Capital Access Loan Program authorized by Article 8 (commencing with
Section 44559), and grants and loans as authorized by
subdivisions subdivision (h) and (g)
of Section 44526.
SEC. 3. Section 44525.7 of the Health and Safety Code, as added by
Section 7 of Chapter 915 of the Statutes of 2000, is repealed.
44525.7. (a) Commencing in 2002, and annually thereafter, the
authority shall submit a report to the Legislature regarding the loan
program described in subdivision (g) of Section 44526.
(b) This section shall not become operative if Assembly Bill 779
of the 1999-2000 Regular Session is enacted.
SEC. 4. Section 44526 of the Health and Safety Code is amended to
read:
44526. The authority is authorized to may
do any of the following:
(a) To determine Determine the
location and character of any project to be financed under the
provisions of this division, to lend financial
assistance assistance, including, but not
limited to, grants, loans, credit enhancements, and other incentives,
to any participating party, to construct,
reconstruct, renovate, replace, lease, as lessor or lessee, and
regulate the same, and to enter into contracts for
the sale of any pollution control facilities, including installment
sales or sales under conditional sales contracts, and to
make loans to participating parties to lend financial
assistance in the acquisition, construction, or installation of a
project.
(b) To issue Issue bonds,
notes, bond anticipation notes, and other obligations of the
authority for any of its corporate purposes, and to
fund or refund the same, all as provided in this division.
(c) To fix Fix fees and charges for
pollution control facilities, or for the loan of moneys to finance
pollution control facilities, and to revise from time to time those
fees and charges, and to collect rates, rents,
fees, loan repayments, and charges for the use of and for any
facilities or services furnished, or to be furnished, by a project or
any part thereof of a project and
to contract with any person, partnership,
association, corporation, or public agency with respect
thereto to these matters , and to fix the terms
and conditions upon which any pollution control facilities may be
sold or disposed of, whether upon installment sales contracts or
otherwise.
(d) To employ Employ and fix the
compensation of bond counsel, financial consultants, and advisers as
may be necessary in its judgment in connection with the issuance and
sale of any bonds, notes, bond anticipation notes, or other
obligations of the authority; to contract for
engineering, architectural, accounting, or other services of
appropriate agencies as may be necessary in the judgment of the
authority for the successful development of any project; and
to pay the reasonable costs of consulting engineers,
architects, accountants, and construction experts employed by any
participating party if, in the judgment of the authority, those
services are necessary to the successful development of any project,
and those services are not obtainable from any public agency.
(e) To receive Receive
and accept loans, contributions, or grants, of money, property,
labor, or other things of value, for, or in aid of, the authority in
carrying out the purposes of this division, from any source,
including, but not limited to, the federal government, the state, or
any agency of the state, any local government or agency thereof, or
any nonprofit or for-profit private entity or individual.
(f) To apply 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, but are not limited to, 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.
(g) To provide grants and loans to any city or county deemed
eligible by the authority. The grants and loans shall be used to
assist California neighborhoods suffering from high poverty or
unemployment levels, or from low-income levels, to assist cities and
counties in developing and implementing growth policies and programs
that reduce pollution hazards and the degradation of the environment,
or to promote infill development to revitalize these communities.
The grants and loans may be used to employ the technical expertise
necessary to identify, assess, and complete applications for state,
federal, and private economic assistance programs that develop and
implement sustainable development and sound environmental policies
and programs. Priority shall be given to applicants lacking the
resources to identify, assess, and complete applications to economic
assistance, and for those lacking the resources to develop and
implement sustainable growth and other sound environmental policies
and programs. The authority shall fund these grants and loans from
any funds available to the authority or set aside for the authority's
administrative expenses. The authority may not award more than seven
million five hundred thousand dollars ($7,500,000) in grants and
loans pursuant to this subdivision. This subdivision shall remain
operative only until January 1, 2012.
(g) Reserved]
(h) (1) To provide Provide a loan
directly, or indirectly through one or more public or private sector
intermediaries, to any city, county, school district, redevelopment
agency, financial institution, as defined in subdivision (d) of
Section 44559.1, for-profit or not-for-profit organization, or
participating party, as defined in Section 44506, to assist in
financing, among other things, the costs of performing or obtaining
brownfield site assessments, remedial action plans and reports,
technical assistance, the cleanup, remediation, or development of
brownfield sites, or any other similar or related costs, subject to
all applicable federal, state, and local laws, procedures, and
regulations.
(2) The authority shall establish standards and criteria to ensure
that a recipient of direct or indirect financing for cleanup or
remediation pursuant to this subdivision has the necessary financial
resources and expertise to successfully and appropriately complete
the cleanup or remediation of the property.
(3) The authority may pay all, or a portion, of the associated
program development and implementation costs of any public or private
sector intermediaries through which a loan is made. A loan
authorized by this subdivision is subject to both of the following:
(A) A loan may be used in connection with a brownfield site prior
to a determination of whether the site has a reasonable potential for
economically beneficial reuse.
(B) A loan may be made upon the terms determined by the authority
and may provide for any rate of interest or no interest.
(4) The authority shall fund a loan made pursuant to this
subdivision from any funds available to it, from any funds set aside
for the authority's administrative expenses, or from any small
business assistance fund established for these purposes pursuant to
Section 44548.
(5) The authority may waive repayment of all, or a portion, of any
loan made pursuant to this subdivision upon conditions to be
determined by the authority, and the amount so waived shall be deemed
a grant to the recipient.
(i) To do Do all things
generally necessary or convenient to carry out the purposes of this
division.
SEC. 5. Section 44559.3 of the Health and Safety Code is amended
to read:
44559.3. (a) The authority shall establish a loss reserve
account for each financial institution with which the authority makes
a contract.
(b) The loss reserve account for a financial institution shall
consist of moneys paid as fees by borrowers and the financial
institution, moneys transferred to the account from a small business
assistance fund, any matching federal moneys, and any other moneys
provided by the authority or other source.
(c) Notwithstanding any other law, the authority may establish and
maintain loss reserve accounts with any financial institution under
any policies the authority may adopt. adopt,
including the policies of other funding sources, pursuant to
subdivision (b) of Section 44559.11.
(d) All moneys in a loss reserve account established pursuant to
this article are the exclusive property of, and solely controlled by,
the authority. Interest or income earned on moneys credited to the
loss reserve account shall be deemed to be part of the loss reserve
account. The authority may withdraw from the loss reserve account
all, or a portion of, the interest or other income that has been
credited to the loss reserve account. Any withdrawal made pursuant to
this subdivision may be made prior to paying any claim and shall be
used for the sole purpose of offsetting costs associated with
carrying out the program, including administrative costs and loss
reserve account contributions.
(e) The combined amount to be deposited by the participating
financial institution into any individual loss reserve account over a
three-year period, in connection with any single borrower or any
group of borrowers among which a common enterprise exists, shall be
not more than one hundred thousand dollars ($100,000).
SEC. 6. Section 44559.11 of the Health and Safety Code is amended
to read:
44559.11. (a) It is the intent of the Legislature to ensure that
the state, through the authority, may make maximum, efficient use of
capital access programs enacted by all federal and state agencies, as
well as funding available from any governmental program whose goals
may be advanced by providing funding to the Capital Access Loan
Program.
(b) In furtherance of this intent, and notwithstanding any other
provision of this article, when the contributions required pursuant
to Section 44559.4 are entirely funded by a source other than the
authority, the authority may, by regulation adopted pursuant to
subdivision (b) of Section 44520, establish alternate provisions as
necessary to enable the authority to participate in the alternative
funding source program. program, including,
but not limited to, implementing loan loss reserve programs to
benefit any person, company, corporation, public agency, partnership,
or firm engaged in activities in the state that require financing.