BILL NUMBER: SB 662 INTRODUCED
BILL TEXT
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 article.
article and for making payments pursuant to
subdivision (g).
(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 article.
article and for making payments pursuant to subdivision (g).
(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.
(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.
(g)
(h) 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.
(h)
(i) 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.
(i)
(j) 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.
(j)
(k) 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.
(k)
(l) (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 September 1, 2013,
November 1, 2016, 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.