Senate Bill No. 662

Introduced by Committee on Environmental Quality (Senators Wieckowski (Chair), Bates, Gaines, Hill, Jackson, Leno, and Pavley)

February 27, 2015

An act to amend Sections 42023.1 and 48705 of the Public Resources Code, relating to recycling, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

SB 662, as introduced, Committee on Environmental Quality. Recycling.

(1) Existing law requires the Department of Resources Recycling and Recovery to develop a comprehensive market development plan that will stimulate market demand in the state for postconsumer waste material and secondary waste material generated in the state. Existing law authorizes a local governing body, as defined, to propose eligible property within its jurisdiction as a recycling market development zone, as defined, and authorizes the department to designate recycling market development zones.

Existing law creates the Recycling Market Development Revolving Loan Subaccount and continuously appropriates the funds deposited in the subaccount to the department for making loans to local governing bodies, private businesses, and nonprofit entities within the recycling market development zones and in other specified areas for purposes of the Recycling Market Development Revolving Loan Program. Existing law makes these provisions inoperative on July 1, 2021.

This bill would authorize the department to expend money in the subaccount to make payments to local governing bodies within recycling market development zones for services related to the promotion of the zone. By expanding the purposes of a continuously appropriated fund, the bill would make an appropriation.

(2) The California Integrated Waste Management Act of 1989 requires a manufacturer of architectural paint or the designated stewardship organization to submit to the Department of Resources Recycling and Recovery an architectural paint stewardship plan to develop and implement a recovery program to manage the end of life of postconsumer architectural paint. A manufacturer is required to submit a report to the department by September 1 of each year, describing its paint recovery efforts.

This bill would change the date when the report is due to November 1 of each year.

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.  

Section 42023.1 of the Public Resources Code
is amended to read:

42023.1.  

(a) The Recycling Market Development Revolving
Loan Subaccount is hereby created in the account for the purpose
of providing loans for purposes of the Recycling Market
Development Revolving Loan Program established pursuant to
this begin delete article. end delete begin insert article and for making payments pursuant to
subdivision (g). end insert

(b) Notwithstanding Section 13340 of the Government Code,
the funds deposited in the subaccount are hereby continuously
appropriated to the department without regard to fiscal year for
making loans pursuant to this begin delete article. end delete begin insert article and for making
payments pursuant to subdivision (g). end insert

(c) The department may expend interest earnings on funds in
the subaccount for administrative expenses incurred in carrying
out the Recycling Market Development Revolving Loan Program,
upon the appropriation of funds in the subaccount for that purpose
in the annual Budget Act.

(d) The money from loan repayments and fees, including, but
not limited to, principal and interest repayments, fees and points,
recovery of collection costs, income earned on an asset recovered
pursuant to a loan default, and funds collected through foreclosure
actions shall be deposited in the subaccount.

(e) All interest accruing on interest payments from loan
applicants shall be deposited in the subaccount.

(f) The department may expend the money in the subaccount
to make loans to local governing bodies, private businesses, and
nonprofit entities within recycling market development zones, or
in areas outside zones where partnerships exist with other public
entities to assist local jurisdictions to comply with Section 40051.

begin insert

(g) The department may expend the money in the subaccount
to make payments to local governing bodies within a recycling
market zone for services related to the promotion of the zone. The
services may include, but are not limited to, training, outreach,
development of written promotional materials, and technical
analyses of feedstock availability.

end insert begin delete

(g)

end delete

begin insert (h) end insert begin insert   end insert The department shall not fund a loan until it determines that
the applicant has obtained all significant applicable federal, state,
and local permits. The department shall determine which applicable
federal, state, and local permits are significant.

begin delete

(h)

end delete

begin insert (i) end insert  The department shall establish and collect fees for
applications for loans authorized by this section. The application
fee shall be set at a level that is sufficient to fund the department’s
cost of processing applications for loans. In addition, the
department shall establish a schedule of fees or points for loans
that are entered into by the department, to fund the department’s
administration of the revolving loan program.

begin delete

(i)

end delete

begin insert (j) end insert  The department may expend money in the subaccount for
the administration of the Recycling Market Development
Revolving Loan Program, upon the appropriation of funds in the
subaccount for that purpose in the annual Budget Act. In addition,
the department may expend money in the account to administer
the revolving loan program, upon the appropriation of funds in the
subaccount for that purpose in the annual Budget Act. However,
funding for the administration of the revolving loan program from
the account shall be provided only if there are not sufficient funds
in the subaccount to fully fund the administration of the program.

begin delete

(j)

end delete

begin insert (k) end insert  The department, pursuant to subdivision (a) of Section
47901, may set aside funds for the purposes of paying costs
necessary to protect the state’s position as a lender-creditor. These
costs shall be broadly construed to include, but not be limited to,
foreclosure expenses, auction fees, title searches, appraisals, real
estate brokerage fees, attorney fees, mortgage payments, insurance
payments, utility costs, repair costs, removal and storage costs for
repossessed equipment and inventory, and additional expenditures
to purchase a senior lien in foreclosure or bankruptcy proceedings.

begin delete

(k)

end delete

begin insert (l) end insert  (1) Except as provided in paragraph (2), this section shall
become inoperative on July 1, 2021, and as of January 1, 2022, is
repealed, unless a later enacted statute, which becomes effective
on or before January 1, 2022, deletes or extends the date on which
it becomes inoperative and is repealed.

(2) The repeal of this section pursuant to paragraph (1) shall
not extinguish any loan obligation or the authority of the state to
pursue appropriate actions for the collection of a loan.

SEC. 2.  

Section 48705 of the Public Resources Code is
amended to read:

48705.  

(a) On or before begin delete September 1, 2013, end delete begin insert November 1, 2016, end insert
and each year thereafter, a manufacturer of architectural paint sold
in this state shall, individually or through a representative
stewardship organization, submit a report to the department
describing its architectural paint recovery efforts. At a minimum,
the report shall include all of the following:

(1) The total volume of architectural paint sold in this state
during the preceding fiscal year.

(2) The total volume of postconsumer architectural paint
recovered in this state during the preceding fiscal year.

(3) A description of methods used to collect, transport, and
process postconsumer architectural paint in this state.

(4) The total cost of implementing the architectural paint
stewardship program.

(5) An evaluation of how the architectural paint stewardship
program’s funding mechanism operated.

(6) An independent financial audit funded from the paint
stewardship assessment.

(7) Examples of educational materials that were provided to
consumers the first year and any changes to those materials in
subsequent years.

(b) The department shall review the annual report required
pursuant to this section and within 90 days of receipt shall adopt
a finding of compliance or noncompliance with this chapter.