Amended in Assembly June 16, 2015

Senate BillNo. 90


Introduced by Committee on Budget and Fiscal Review

January 9, 2015


An actbegin insert to end insertbegin insertamend Section 129160 of the Health and Safety Code, and to amend Section 21189.1 of the Public Resources Code,end insert relating tobegin delete the Budget Act of 2015.end deletebegin insert end insertbegin insertpublic resources, and making an appropriation therefor, to take effect immediately, bill related to the budget.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 90, as amended, Committee on Budget and Fiscal Review. begin deleteBudget Act of 2015. end deletebegin insertPublic resources.end insert

begin 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 State 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 State Treasurer is required to pay to the holders the amount entitled out of any money in the State Treasury not otherwise appropriated.

end insert
begin insert

This 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 State Treasurer to take appropriate steps to provide that interest on debentures be exempt from federal taxation, if tax exempt.

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(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.

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begin insert

The 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.

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This 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.

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(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.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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(4) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

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begin delete

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.

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Vote: 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:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 129160 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
2amended to read:end insert

3

129160.  

(a)  begin insert(1)end insertbegin insertend 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 insertend 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
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
begin insert equal to the insured loan or bonds, and shall be
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
33 the face of the debentures.begin delete Inend delete

34begin insert(3)end insertbegin insertend insertbegin insertInend insert the event that the fund fails to pay upon demand, when
35due, the principal ofbegin insert,end insert or interest onbegin insert,end insert any debentures issued under
36this chapter, the State Treasurer shall pay to the holders the amount
37thereofbegin insert,end insert whichbegin delete is authorized to be appropriated, out of any money
38inend delete
begin insert amount, notwithstanding Section 13340 of the Government
P4    1Code, is hereby continuously appropriated from the General Fund
2ofend insert
thebegin insert Stateend insert Treasurybegin delete not otherwise appropriatedend deletebegin insert, without regard
3to fiscal yearsend insert
, and thereupon to the extent of the amount so paid
4the State Treasurer shall succeed to all the rights of the holders of
5the debentures. The fund shall be liable for repayment to the
6begin insert General Fund of the Stateend insert Treasury of any money paidbegin delete therefromend delete
7begin insert from the General Fundend insert pursuant to this section in accordance with
8procedures jointly established by the State Treasurer and the office.

9(b)  begin deleteIn the event of a default, any end deletebegin insertAny end insertdebenture issued under
10this article shall be paid on a par with general obligation bonds
11issued by the state.

12begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 21189.1 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
13amended to read:end insert

14

21189.1.  

If, prior to January 1,begin delete 2016,end deletebegin insert 2017,end insert a lead agency fails
15to approve a project certified by the Governor pursuant to this
16chapter, then the certification expires and is no longer valid.

17begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
18Section 6 of Article XIII B of the California Constitution because
19a local agency or school district has the authority to levy service
20charges, fees, or assessments sufficient to pay for the program or
21level of service mandated by this act, within the meaning of Section
2217556 of the Government Code.

end insert
23begin insert

begin insertSEC. 4.end insert  

end insert
begin insert

This act is a bill providing for appropriations related
24to the Budget Bill within the meaning of subdivision (e) of Section
2512 of Article IV of the California Constitution, has been identified
26as related to the budget in the Budget Bill, and shall take effect
27immediately.

end insert
begin delete
28

SECTION 1.  

It is the intent of the Legislature to enact statutory
29changes relating to the Budget Act of 2015.

end delete


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