BILL NUMBER: AB 1581 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 23, 2009
INTRODUCED BY Committee on Natural Resources (Skinner (Chair),
Brownley, Chesbro, De Leon, Hill, and Huffman)
MARCH 27, 2009
An act to amend Sections 42023.1, 42023.2, 42023.3,
42023.4, 42023.5, and 42023.6 42000, 42011, and 42021
of the Public Resources Code, relating to solid waste
, and making an appropriation therefor .
LEGISLATIVE COUNSEL'S DIGEST
AB 1581, as amended, Committee on Natural Resources. Solid waste:
recycling market development.
The California Integrated Waste Management Act of 1989, which is
administered by the California Integrated Waste Management Board,
establishes an integrated waste management program. The act
creates the Recycling Market Development Revolving Loan Subaccount in
the Integrated Waste Management Account and continuously
appropriates the funds deposited in the subaccount to the board for
making loans for the purposes of the Recycling Market Development
Revolving Loan Program. Existing law makes the provisions regarding
the loan program, the creation of the subaccount, and expenditures
from the subaccount inoperative on July 1, 2011, and repeals them as
of January 1, 2012, and provides for disposition of funds remaining
after inoperation and repeal authorizes a local
governing body, as defined, to propose eligible parcels of
property within its jurisdiction as a recycling market development
zone, as defined, and to apply to the board for designation as a
recycling market development zone. The board is authorized to
designate or redesignate recycling market development zones for
persons applying for that designation. The act requires a parcel of
property designated as a recycling market development zone to retain
that designation for 10 years .
This bill , instead, would extend the
inoperative and repeal dates to July 1, 2015, and January 1, 2016,
respectively, thereby continuing the program and the continuous
appropriation until July 1, 2015, and thus making an appropriation
require a recycling market development zone to retain
that designation for 10 years or until the local governing body
repeals the designation, whichever is sooner. The bill also would
contain a legislative finding and declaration that cities and
counties are encouraged to propose recycling market development zones
to stimulate economic development and to create green jobs .
Vote: majority. Appropriation: yes no
. Fiscal committee: yes no .
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 42000 of the Public
Resources Code is amended to read:
42000. The Legislature hereby finds and
declares all of the following:
(a) This division requires cities and counties to divert 25
percent of all solid waste from landfills and transformation
facilities by 1995 and 50 percent by 2000. As of 1990, the overall
diversion rate in the state was 12 percent.
(b) California's source reduction, recycling, and composting
efforts need to increase greatly if local jurisdictions are to meet
the 25-percent and the 50-percent diversion requirements.
(c) Market development is the key to increased, cost-effective
recycling. Market development includes activities that strengthen
demand by manufacturers and end-use consumers for recyclable
materials collected by municipalities, nonprofit organizations, and
private entities.
(d) Developing markets for recyclable materials creates
opportunities that will reindustrialize California. The board
estimates that the development of markets for recyclable materials
may create over 20,000 jobs in California's manufacturing sector, an
additional 25,000 jobs in the sorting and processing fields, and an
unestimated number of jobs in other fields that may develop through
full implementation of this division.
(e) The board is authorized to conduct individual market
development activities, but is not presently required to implement a
comprehensive plan that addresses the full range of market
development needs.
(f) Cities and counties are encouraged to propose recycling market
development zones to stimulate economic development and to create
green jobs.
SEC. 2. Section 42011 of the Public
Resources Code is amended to read:
42011. Any A parcel of property
designated as a recycling market development zone shall retain this
designation for 10 years or until the local governing body
repeals the designation, whichever is sooner .
SEC. 3. Section 42021 of the Public
Resources Code is amended to read:
42021. Nothing in this chapter prohibits
This chapter does not prohibit an applicant from seeking
designation of an enterprise zone and receiving economic incentives
as defined in Section 7073 of the Government Code or from
receiving any other available economic incentives, including pursuant
to the federal American Recovery and Reinvestment Act of 2009
(Public Law 111-5) .
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.
(b) Notwithstanding Section 13340 of the Government Code, the
funds deposited in the subaccount are hereby continuously
appropriated to the board without regard to fiscal year for making
loans pursuant to this article.
(c) The board 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 board 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 board 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 board's cost of
processing applications for loans. In addition, the board shall
establish a schedule of fees, or points, for loans that are entered
into by the board, to fund the board's administration of the
revolving loan program.
(h) The board 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 board 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.
(i) The board, 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.
(j) (1) Except as provided in paragraph (2), this section shall
become inoperative on July 1, 2015, and as of January 1, 2016, is
repealed, unless a later enacted statute, which becomes effective on
or before January 1, 2016, deletes or extends the dates 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 42023.2 of the Public Resources
Code is amended to read:
42023.2. (a) Upon authorization by the Legislature in the annual
Budget Act, the Controller shall transfer a sum not to exceed five
million dollars ($5,000,000) from the account to the subaccount as
necessary to meet anticipated loan demand under the program. Those
amounts shall be a loan to the subaccount, repayable with interest to
the account at the rate of return for money in the Surplus Money
Investment Fund.
(b) (1) Except as provided in paragraph (2), this section shall
become inoperative on July 1, 2015, and as of January 1, 2016, is
repealed, unless a later enacted statute, which becomes effective on
or before January 1, 2016, deletes or extends the dates 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. 3. Section 42023.3 of the Public Resources
Code is amended to read:
42023.3. (a) All money remaining in the subaccount on July 1,
2015, and all money received as repayment and interest on loans
shall, as of July 1, 2015, be transferred to the account and any
money due and outstanding on loans as of July 1, 2015, shall be
repaid to the board and deposited by the board in the account until
paid in full, except that, upon authorization by the Legislature in
the annual Budget Act, interest earnings may be expended for
administrative costs associated with the collection of outstanding
loan accounts.
(b) (1) Except as provided in paragraph (2), this section shall
become inoperative on July 1, 2015, and as of January 1, 2016, is
repealed, unless a later enacted statute, which becomes effective on
or before January 1, 2016, deletes or extends the dates 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. 4. Section 42023.4 of the Public Resources
Code is amended to read:
42023.4. (a) A loan made pursuant to Section 42023.1 shall be
subject to all of the following requirements:
(1) The terms of an approved loan shall be specified in a loan
agreement between the borrower and the board. The loan agreement
shall include a requirement that the failure to comply with the
agreement shall result in any remaining unpaid amount of the loan,
with accrued interest, being immediately due and payable.
Notwithstanding any term of the agreement, a recipient of a loan that
the board approves shall repay the principal amount, plus interest
on the basis of the rate of return for money in the Surplus Money
Investment Fund at the time of the loan commitment. Except as
provided in subdivision (a) of Section 42023.3, all money received as
repayment and interest on loans made pursuant to this section shall
be deposited in the subaccount.
(2) The term of a loan made pursuant to this section shall be not
more than 10 years when collateralized by assets other than real
estate, or not more than 15 years when partially or wholly
collateralized by real estate.
(3) The board shall approve only those loan applications that
demonstrate the applicant's ability to repay the loan. The highest
priority for funding shall be given to projects that demonstrate that
the project will increase market demand for recycling the project's
type of postconsumer waste material.
(4) The board shall finance not more than three-fourths of the
cost of each project, or not more than two million dollars
($2,000,000) for each project, whichever is less.
(5) The Department of Finance may audit the expenditure of the
proceeds of a loan made pursuant to Section 42023.1 and this section.
(b) (1) Except as provided in paragraph (2), this section shall
become inoperative on July 1, 2015, and as of January 1, 2016, is
repealed, unless a later enacted statute, which becomes effective on
or before January 1, 2016, deletes or extends the dates 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. 5. Section 42023.5 of the Public Resources
Code is amended to read:
42023.5. (a) The board shall, as part of the annual report to the
Legislature, pursuant to Section 40507, include a report on the
performance of the Recycling Market Development Revolving Loan
Program, including the number and size of loans made, characteristics
of loan recipients, projected loan demand, and the cost of
administering the program.
(b) This section shall become inoperative on July 1, 2015, and as
of January 1, 2016, is repealed, unless a later enacted statute,
which becomes effective on or before January 1, 2016, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 6. Section 42023.6 of the Public Resources
Code is amended to read:
42023.6. (a) The board shall encourage applicants to seek
participation from private financial institutions or other public
agencies. For purposes of enabling the board and local agencies to
comply with Sections 40051 and 41780, the board may participate, in
an amount not to exceed five hundred thousand dollars ($500,000), in
the Capital Access Loan Program as provided in Article 8 (commencing
with Section 44559) of Chapter 1 of Division 27 of the Health and
Safety Code.
(b) For purposes of participating in the Capital Access Loan
Program, as specified in subdivision (a), or in a program that
leverages subaccount funds, the board may operate both inside and
outside the recycling market development zones.
(c) (1) Except as provided in paragraph (2), this section shall
become inoperative on July 1, 2015, and as of January 1, 2016, is
repealed, unless a later enacted statute, which becomes effective on
or before January 1, 2016, deletes or extends the dates 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.