BILL NUMBER: SB 832 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JULY 13, 2009
AMENDED IN ASSEMBLY JUNE 24, 2009
INTRODUCED BY Committee on Environmental Quality (Senators Simitian
(Chair), Ashburn, Corbett, Hancock, Lowenthal, Pavley, and Runner)
MARCH 25, 2009
An act to amend Sections 44501, 44502, 44506, 44507, 44508, 44510,
44520, 44525, 44525.6, 44525.7, 44526, 44530, 44532, 44534, 44536,
44537, 44542, 44543, 44545, 44550, 44552.5, 44553, 44554, 44555,
44559.1, and 44559.4 of, and to repeal Sections 44525.5, 44533,
44535, 44546, and 44547 of, the Health and Safety Code, and to amend
Sections 6206.5 and 41780 of the Public Resources Code, relating to
resources, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 832, as amended, Committee on Environmental Quality. Resources:
California Pollution Control Financing Authority: public lands:
solid waste diversion.
(1) 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 make various changes to the financial and
administrative provisions of the act. The bill would include state
agencies as eligible participating parties for financing, and would
define project or pollution control facility as specified.
(2) Under existing law, the State Lands Commission has the power
to apply to the United States Department of the Interior for patents
to the numbered school sections in place, which have not been
patented by the state.
This bill would delete the condition that the numbered school
sections to which this provision applies be those that have not been
patented by the state.
(3) The California Integrated Waste Management Act of 1989, which
is administered by the California Integrated Waste Management Board,
requires each city, county, and regional agency, if any, to develop a
source reduction and recycling element of an integrated waste
management plan containing specified components. Those entities are
required to divert, from disposal or transformation, 50% of the solid
waste through source reduction, recycling, and composting subject to
the element, except as specified.
This bill would delete the condition that the solid waste subject
to source reduction, recycling, and composting under these
provisions, be diverted from landfill disposal or transformation.
(4) The bill would make conforming changes.
(5) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 44501 of the Health and Safety Code is amended
to read:
44501. The Legislature finds and declares all of the following:
(a) It is necessary and essential that the state, in cooperation
with the federal government, use all practical means and measures to
control, remediate, and eliminate pollution hazards to the
environment, provide clean water, and enable alternative and
renewable sources of energy. Industry within this state utilizes
processes and facilities that have significant environmental impact.
These processes and facilities need to be modified and supplemented
to meet the quality standards established, and to be established, for
the control and remediation of environmental pollution. Industry
needs and requires new methods to finance the capital outlays
required for the devices, equipment, and facilities utilized in
pollution control if they are to rapidly comply with the quality
standards established by the state and federal governments, and if
they are to rapidly remediate contaminated properties so that those
properties can be reused for economically beneficial purposes.
(b) The disposal of waste products by methods such as incineration
and landfill pollute the environment by degrading air and water
quality. In order to reduce the environmental pollution that
currently occurs in connection with the disposal of waste products,
there is a need to develop new and alternative processes and
facilities that provide for the disposal of those waste products in
ways that prevent or reduce environmental degradation. Those new and
alternative processes and facilities include those that recover
resources and energy from waste products. In order to prevent further
environmental degradation resulting from contamination caused by the
release of waste products and hazardous materials, there is a need
to encourage the remediation of that contamination of properties with
the potential for economically beneficial reuse.
(c) The alternate method of financing provided in this division is
in the public interest and serves a public purpose and will promote
the health, welfare, and safety of the citizens of the state.
(d) California is expected to undergo tremendous population growth
by the addition of millions of new jobs, new residents, and new
households. This constitutes more rapid growth than California
experienced during the 1950's, 1960's, and 1970's
1950s, 1960s, and 1970s , combined. As a result of this
unprecedented growth, the long-term environmental quality of the
state depends, in part, on altering current growth patterns by
adopting policies and programs that promote new forms of sustainable
development and that will help reduce pollution and the degradation
of the environment. A key element of sustainable development is
infill development and the revitalization of existing communities.
Sustainable development will result in the remediation of
brownfields, reduce traffic and auto pollution, and help preserve
open spaces. Many communities in California do not have the resources
or expertise to identify and compete for state, federal, or private
assistance in order to develop and implement environmentally
sensitive growth policies and programs for economically struggling
neighborhoods. Assisting economically distressed counties and cities
to develop and implement sustainable and environmentally sensitive
growth policies and programs that increase the utilization of
unproductive properties within existing communities will help reduce
environmental hazards created by brownfields and traffic congestion,
while aiding in the revitalization of economically struggling
neighborhoods and the preservation of open space at the urban edges.
The grant and loan program provided in this division is in the public
interest, serves a public purpose, and will promote the health,
welfare, and safety of the citizens of the state.
(e) Real property contaminated with hazardous substances is a
continuing blight on communities. Estimates suggest there are between
67,000 and 119,000 contaminated sites, commonly referred to as
"brownfields," throughout the state. Located in existing communities,
many of these sites are abandoned, idle, or underutilized due to a
combination of factors, including legal liability concerns,
regulatory issues, and the costs of pollution cleanup. Additionally,
many of the undeveloped brownfields in the state are located within
communities with depressed land values and pressing economic need,
communities often characterized by a lack of capital investment. The
remediation and development of brownfields is an important component
of revitalizing existing communities and supporting sustainable
growth patterns. While remediation and development activities should
focus on brownfield sites that, although contaminated, have the
potential for economically beneficial reuse, there currently exist
few, if any, sources for financing the assessment, planning, and
reporting activities that are the necessary first steps toward
determining whether a site has the potential for economically
beneficial reuse.
(f) The California Pollution Control Financing Authority should
work in conjunction with public and private sector entities,
including, but not limited to, cities, counties, school districts,
redevelopment agencies, and financial institutions, to assist in
financing, through loans, the cost of performing or obtaining site
assessments, remedial action plans technical assistance, and reports,
and where it is determined that a site has the potential for
economically beneficial reuse, the cleanup, remediation, or
development of brownfield sites. The loan program provided by this
division is in the public interest, serves a public purpose, and will
promote the health, welfare, and safety of the citizens of the
state.
SEC. 2. Section 44502 of the Health and Safety Code is amended to
read:
44502. It is the purpose of this division to carry out and make
effective the findings of the Legislature and to that end to do all
of the following, to the mutual benefit of the people of the state
and to protect their health and welfare:
(a) To provide industry within the state, irrespective of company
size, with an alternative method of financing in providing,
acquiring, enlarging, or installing facilities for establishing
pollution control, providing supplies of clean water, and producing
energy from alternative or renewable sources, that are needed to
accomplish the purposes of this division.
(b) To assist economically distressed counties and cities to
develop and implement growth policies and programs that reduce
pollution hazards and the degradation of the environment or promote
infill development.
(c) To assist with the financing of the costs of assessment,
remedial planning and reporting, technical assistance, and the
cleanup, remediation, or development of brownfield sites, or other
similar or related costs.
SEC. 3. Section 44506 of the Health and Safety Code is amended to
read:
44506. "Participating party" means any person, company,
corporation, public agency, partnership, firm, or other entity or
group of entities engaged in operations within this state that
requires financing pursuant to the terms of this division to aid and
assist in the control, remediation, or elimination of pollution of
the environment of the state.
SEC. 4. Section 44507 of the Health and Safety Code is amended to
read:
44507. "Pollution" means an alteration of the quality of the
environment of the state and shall be determined by the various
standards prescribed from time to time by this state, the federal
government, or any agency, department, or political subdivision of
this state or the federal government, and may include, but is not
limited to, all of the following:
(a) Earth, air, or water pollution.
(b) Pollution caused by solid or hazardous waste materials
including the disposal or processing of these materials.
(c) Thermal pollution.
(d) Radiation contamination.
(e) The release of hazardous materials.
(f) Noise pollution.
(g) Contamination of soil or groundwater resulting from the
release of hazardous materials, as defined in Section 25260.
(h) The presence of asbestos or lead paint, at sites with a
reasonable potential for economically beneficial reuse.
(i) Any natural or manmade substance that must be removed to
provide safe drinking water.
SEC. 5. Section 44508 of the Health and Safety Code is amended to
read:
44508. "Project" and "pollution control facility," respectively,
mean any land, building, improvement thereto, work, real or personal
property or structure, vehicle, or equipment providing or designed to
provide for the control, reduction, abatement, elimination,
remediation, or prevention of pollution, improvement of air, water,
or soil quality, ensure the safe handling, recycling, or disposal of
materials that might otherwise be improperly disposed of, or provide
for environmental restoration, cleanup, or enhancement. Eligible
projects include, but are not limited to, any type of project
described in this subdivision that is authorized pursuant to federal
law for tax-exempt or tax credit financing including in Section 142
(a)(4),(5), (6), (8), (9), (10), (12), or (14) of Title 26 of the
United States Code.
SEC. 6. Section 44510 of the Health and Safety Code is amended to
read:
44510. "Revenues" means all rents, receipts, purchase payments
and all other income or receipts derived by the authority from the
sale, lease, or other disposition of pollution control facilities,
loan repayments under any loans made in connection with financing
pollution control facilities, and any income or revenue derived from
the investment of any money in any fund or account of the authority.
SEC. 7. 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 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 .
(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. 8. 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
(h) and (g) of Section 44526.
SEC. 9. Section 44525.5 of the Health and Safety Code, as added by
Chapter 914 of the Statutes of 2000, is repealed.
SEC. 10. Section 44525.6 of the Health and Safety Code is amended
to read:
44525.6. (a) Commencing in 2002, and annually thereafter, the
authority shall submit a report to the Legislature regarding the
program described in subdivision (g) of Section 44526 describing the
total amount of loans issued pursuant to subdivision (g) of Section
44526 in the previous calendar year, the amount of each loan issued,
and a description of the programs awarded funding.
(b) This section shall remain in effect only until January 1,
2012, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2012, deletes or extends that
date.
SEC. 11. Section 44525.7 of the Health and Safety Code, as added
by Chapter 915 of the Statutes of 2000, is amended to read:
44525.7. Commencing in 2002, and annually thereafter, the
authority shall submit a report to the Legislature regarding the
program described in subdivision (h) of Section 44526.
SEC. 12. Section 44526 of the Health and Safety Code is amended to
read:
44526. The authority is authorized to do any of the following:
(a) To determine the location and character of any project to be
financed under the provisions of this division, to lend financial
assistance 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 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 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 and to contract with any person,
partnership, association, corporation, or public agency with respect
thereto, 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 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 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 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.
(h) (1) To 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 all things generally necessary or convenient to carry
out the purposes of this division.
SEC. 13. Section 44530 of the Health and Safety Code is amended to
read:
44530. All expenses incurred in carrying out the provisions of
this division shall be payable solely from funds provided under the
authority of this division and no liability or obligation shall be
imposed upon the State of California and, none shall be incurred by
the authority beyond the extent to which moneys shall have been
provided under the provisions of this division. Under no
circumstances shall the authority create any debt, liability, or
obligation on the part of the State of California payable from any
source whatsoever other than the moneys provided under the provisions
of this division.
SEC. 14. Section 44532 of the Health and Safety Code is amended to
read:
44532. When the principal of and interest on bonds of the
authority issued to finance or refund the cost of a particular
project for a participating party shall have been fully paid and
retired or when adequate provision shall have been made for the
payment and retirement of the same, and all other conditions of the
resolution, indenture, or agreement authorizing and securing the same
shall have been satisfied and the lien of the resolution, indenture,
or agreement shall have been released in accordance with the
provisions thereof, the authority is authorized, upon terms and
conditions as may be prescribed by the authority, to execute these
deeds and conveyances as are necessary or required to convey title to
the project to the participating party.
SEC. 15. Section 44533 of the Health and Safety Code is repealed.
SEC. 16. Section 44534 of the Health and Safety Code is amended to
read:
44534. (a) The authority shall take initial action on any
completed application for financing submitted to it by a
participating party no later than the next meeting of the authority
that occurs after at least 30 days following receipt of the
application. The authority may delegate to its executive director or
deputy executive director the authority to grant initial approval for
financing to a participating party.
(b) The authority shall take final action with regard to the
issuance of bonds or notes to lend financial assistance to a
participating party within 60 days of receipt by the authority of a
request from the participating party for the issuance of bonds or
notes.
(c) A request from a participating party for final approval of the
issuance of bonds or notes shall be accompanied by evidence of the
fulfillment of all conditions to the issuance of the bonds or notes
and by copies of forms of all principal legal documents to be
approved by the authority, which shall be satisfactory in form and
substance to the Attorney General.
(d) The authority may give final approval for the issuance of
bonds or notes upon terms as it deems necessary and desirable.
SEC. 17. Section 44535 of the Health and Safety Code is repealed.
SEC. 18. Section 44536 of the Health and Safety Code is amended to
read:
44536. The authority may approve financing for a pollution
control facility, or equipment for a facility, that is not owned by
the applicant if the facility or equipment is a component of an
approved tradeoff package to achieve air quality standards. The
authority may also approve financing for projects where the owner of
the project enters into a lease or operating agreement with another
entity that will use the project. In either case both the owner and
the user shall be treated as participating parties.
SEC. 19. Section 44537 of the Health and Safety Code is amended to
read:
44537. The authority shall take all reasonable steps to publicize
its programs so that eligible applicants may be aware of them.
SEC. 20. Section 44542 of the Health and Safety Code is amended to
read:
44542. (a) (1) The authority is authorized from time to time to
issue its negotiable bonds, notes, debentures, or other securities
(hereinafter collectively called "bonds") for any corporate purpose.
These bonds may be authorized, without limiting the generality of the
foregoing, to finance a single project for a single participating
party, a series of projects for a single participating party, a
single project for several participating parties, or several projects
for several participating parties.
(2) In anticipation of the sale of the bonds as authorized by
Section 44540, or as may be authorized pursuant to Section 44541, the
authority may issue negotiable bond anticipation notes and may renew
the same from time to time. These bond anticipation notes may be
paid from the proceeds of sale of the bonds of the authority in
anticipation of which they were issued. Notes and agreements relating
thereto and bond anticipation notes, hereinafter collectively called
notes, and the resolution or resolutions authorizing the same may
contain any provisions, conditions, or limitations that a bond,
agreement relating thereto, and bond resolution of the authority may
contain, except that the note or renewal thereof shall mature at a
time not exceeding three years from the date of issue of the original
note.
(b) Except as may otherwise be expressly provided by the
authority, every issue of its bonds, notes, or other obligation shall
be general obligations of the authority payable from any revenues or
moneys of the authority available therefor and not otherwise
pledged, subject only to any agreements with the holders of
particular bonds, notes, or other obligations pledging any particular
revenues or moneys and subject to any agreements with any
participating party. Notwithstanding that bonds, notes, or other
obligations may be payable from a special fund, they shall be and be
deemed to be for all purposes negotiable instruments, subject only to
the provisions of the bonds, notes, or other obligations for
registration.
(c) The bonds may be issued as serial bonds or as term bonds, or
the authority in its discretion, may issue bonds of both types. The
bonds shall be authorized by resolution of the authority and shall
bear the date or dates, mature at the time or times, not exceeding 50
years from their respective dates, bear interest at the fixed rate
or rates, or at the variable rates, including multiple methods of
setting rates from time to time while the bonds are outstanding, be
payable at the time or times, be in the denominations, be executed in
the manner, be payable in lawful money of the United States of
America at the place or places,
and be subject to the terms of redemption or tender, as
resolution or resolutions may provide. The bonds or notes shall be
sold by the Treasurer as agents agent
for sale. The bond or notes may be sold at a public or private sale,
and for the price or prices and on terms and conditions, as the
authority shall determine after giving due consideration to the
recommendations of any participating party to be assisted from the
proceeds of the bonds or notes. Pending preparation of the definitive
bonds, the Treasurer may issue interim receipts, certificates, or
temporary bonds which shall be exchanged for definitive bonds. The
Treasurer may sell any bonds, notes, or other evidence of
indebtedness at a price below the par value thereof if the
discount on any security so sold shall not exceed 6 percent of the
par value thereof. .
(d) Any resolution or resolutions authorizing any bonds or any
issue of bonds may contain provisions, which shall be a part of the
contract with the holders of the bonds or any credit provider to be
authorized, as to all of the following:
(1) Pledging the full faith and credit of the authority or
pledging all or any part of the revenues of any project or any
revenue-producing contract or contracts made by the authority with
any individual, partnership, corporation, or association or other
body, public or private, or other moneys of the authority, to secure
the payment of the bonds or of any particular issue of bonds, subject
to agreements with bondholders or any credit providers as may then
exist.
(2) The rentals, fees, purchase payments, loan payments, and other
charges to be charged, and the amounts to be raised in each year
thereby, and the use and disposition of the revenues.
(3) The setting aside of reserves or sinking funds, and the
regulation and disposition thereof.
(4) Limitations on the right of the authority or its agent to
restrict and regulate the use of the project or projects to be
financed out of the proceeds of the bonds or any particular issue of
bonds.
(5) Limitations on the purpose to which the proceeds of sale of
any issue of bonds then or thereafter to be issued may be applied and
pledging these proceeds to secure the payment of the bonds or any
issue of the bonds.
(6) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured and the
refunding of outstanding bonds.
(7) The procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds the
holders of which must consent thereto, and the manner in which
consent may be given.
(8) Limitations on expenditures for operating, administrative, or
other expenses of the authority.
(9) Defining the acts or omissions to act that constitute a
default in the duties of the authority to holders of its obligations
and providing the rights and remedies of these holders in the event
of a default.
(10) The mortgaging of any project and the site thereof for the
purpose of securing the bondholders.
(11) The mortgaging of land, improvements, or other assets owned
by a participating party for the purpose of securing the bondholders.
(12) Provisions for the security of any credit provider supporting
payment on the bonds, but only in a manner subordinate to the rights
of bondholders.
(e) Neither the members of the authority nor any person executing
the bonds or notes shall be liable personally on the bonds or notes
or be subject to any personal liability or accountability by reason
of the issuance thereof.
(f) The authority shall have power out of any funds available
therefor to purchase its bonds or notes without the cancellation
thereof. The authority may hold, pledge, cancel, or resell bonds,
subject to, and in accordance with, agreements with bondholders.
SEC. 21. Section 44543 of the Health and Safety Code is amended to
read:
44543. (a) In the discretion of the authority, any bonds issued
under the provisions of this division may be secured by a trust
agreement by and between the authority and a trustee or trustees,
which may be any trust company or bank having the powers of a trust
company within or without the state. The trust agreement or the
resolution providing for the issuance of bonds may pledge or assign
the revenues to be received or proceeds of any contract or contracts
pledged and may convey or mortgage the project or projects, or any
portion thereof, to be financed out of the proceeds of bonds. The
trust agreement or resolution providing for the issuance of bonds may
contain provisions for protecting and enforcing the rights and
remedies of the bondholders, or any credit provider, as may be
reasonable and proper and not in violation of law, including
particularly provisions as have hereinabove been specifically
authorized to be included in any resolution or resolutions of the
authority authorizing bonds thereof. Any bank or trust company doing
business under the laws of this state that may act as depository of
the proceeds of bonds or of revenues or other moneys may furnish
these indemnifying bonds or pledge securities as may be required by
the authority. Any trust agreement may set forth the rights and
remedies of the bondholders and of the trustee or trustees, and may
restrict the individual right of action by bondholders or any credit
provider. In addition to the foregoing, any trust agreement or
resolution may contain other provisions as the authority may deem
reasonable and proper for the security of the bondholders.
Notwithstanding any other provision of law, the Treasurer shall not
be deemed to have a conflict of interest by reason of acting as
trustee pursuant to this division.
(b) All expenses incurred in carrying out the provisions of a
trust agreement or resolution may be treated as a part of the cost of
the operation of a project.
SEC. 22. Section 44545 of the Health and Safety Code is amended to
read:
44545. (a) The authority may provide for the issuance of bonds of
the authority for the purpose of refunding, directly or indirectly,
any bonds, notes, or other evidence evidences
of indebtedness of the authority or a public agency then
outstanding, including the payment of any redemption premium thereon
and any interest accrued or to accrue to the earliest or subsequent
date of redemption, purchase, or maturity of these bonds, and, if
deemed advisable by the authority, for the additional purpose of
paying all or any part of the cost of constructing and acquiring
additions, improvements, extensions, or enlargements of a project or
any portion thereof.
(b) The proceeds of any bonds issued for the purpose of refunding
outstanding bonds, notes, or other securities may, in the discretion
of the authority, be applied to the purchase or retirement at
maturity or redemption of outstanding bonds either on their earliest
or any subsequent redemption date or upon the purchase or retirement
at the maturity thereof and may, pending application, be placed in
escrow to be applied to purchase or retirement at maturity or
redemption on a date as may be determined by the authority.
(c) Pending this use, any of these escrowed proceeds may be
invested and reinvested by the Treasurer or any trustee in
instruments as may be specified in the resolution or indenture
governing the bonds to be refunded, maturing at the time or times as
shall be appropriate to ensure the prompt payment, as to principal,
interest and redemption premium, if any, of the outstanding bonds to
be so refunded. The interest, income, and profits, if any, earned or
realized on this type of investment may also be applied to the
payment of the outstanding bonds to be so refunded. After the terms
of the escrow have been fully satisfied and carried out, any balance
of these proceeds and interest, income, and profits, if any, earned
or realized on the investments thereof may be returned to the
authority for use by it in any lawful manner.
(d) All of these bonds shall be subject to the provisions of this
division in the same manner and to the same extent as other bonds
issued pursuant to this division. If the authority refunds bonds or
evidences of indebtedness not originally issued by the authority, the
authority shall make findings that the project being refinanced
qualifies as a project under this division.
SEC. 23. Section 44546 of the Health and Safety Code is repealed.
SEC. 24. Section 44547 of the Health and Safety Code is repealed.
SEC. 25. Section 44550 of the Health and Safety Code is amended to
read:
44550. The authority may contract with any participating party
for the construction or acquisition of a project by the participating
party. All contracts for the construction or acquisition of a
project by a participating party shall provide that the participating
party shall be responsible for the architectural and engineering
design and for the construction and completion thereof subject to
standards for architectural and engineering design as may be
established, and subject to supervision as the authority deems
necessary. The authority may agree to pay the cost of a project
constructed or acquired by any participating party and to advance
costs from time to time in installments or otherwise as required by
the contract for the construction or acquisition thereof. Title to
all of these projects may be vested in the authority subject to the
terms of any lease thereof to the participating party or the rights
of a participating party under any contract for the purchase or
acquisition of the project including the payment of the purchase
price under installment sales contracts.
SEC. 26. Section 44552.5 of the Health and Safety Code is amended
to read:
44552.5. (a) As an alternative to leasing or selling a project to
a participating party, the authority may finance the acquisition,
construction, or installation of a project by means of a loan to the
participating party. The principal amount of the participating party'
s obligation as borrower shall be sufficient to provide funds for all
the purposes specified in subdivisions (a), (b), and (c) of Section
44551 and may be paid in installments, together with interest on the
unpaid balance, or otherwise as may be mutually agreed by the
authority and the participating party and set forth in the loan
agreement. Loans made pursuant to this section may be secured or
unsecured in the discretion of the authority.
(b) The authority may also purchase or acquire from a financial
institution part or all of a loan made to a participating party for a
project meeting the requirements of this division.
(c) Section 44550 shall not apply to projects constructed with
moneys loaned pursuant to this section.
SEC. 27. Section 44553 of the Health and Safety Code is amended to
read:
44553. All moneys received pursuant to the provisions of this
division, whether as proceeds from the sale of bonds, notes, or other
evidences of indebtedness or as revenues or fees received by the
authority, shall be deemed to be trust funds to be held and applied
solely as provided in this division. Any bank or trust company with
which these moneys shall be deposited shall act as trustee of these
moneys and shall hold and apply the same for the purposes hereof,
subject to regulations as the resolution authorizing the bonds of any
issue or the trust agreement securing these bonds may provide.
SEC. 28. Section 44554 of the Health and Safety Code is amended to
read:
44554. Any holder of bonds, notes, or other obligations issued
under the provisions of this division, and the trustee or trustees
under any trust agreement, except to the extent the rights herein
given may be restricted by any resolution authorizing the issuance
of, or any trust agreement securing, bonds, notes, or other
obligations, may, either at law or in equity, by suit, action,
mandamus, or other proceedings, protect and enforce any and all
rights under the laws of the state or granted hereunder or under
resolution or trust agreement, and may enforce and compel the
performance of all duties required by this division or by resolution
or trust agreement to be performed by the authority or by any
officer, employee, or agent thereof, including the fixing, charging,
and collecting of the rates, rents, fees, and charges herein
authorized and required by the provisions of the resolution or trust
agreement to be fixed, established, and collected.
SEC. 29. Section 44555 of the Health and Safety Code is amended to
read:
44555. The exercise of the powers granted by this division shall
be in all respects for the benefit of the people of this state, for
their health and welfare, and protection of the state's environment.
Any bonds, notes, or other obligations issued under the provisions of
this division, their transfer and the income therefrom, shall at all
times be free from taxation of every kind by the state and by
municipalities and other political subdivisions of the state.
SEC. 30. Section 44559.1 of the Health and Safety Code is amended
to read:
44559.1. As used in this article, unless the context requires
otherwise, all of the following terms have the following meanings:
(a) "Authority" means the California Pollution Control Financing
Authority.
(b) "California Capital Access Fund" means a fund created within
the authority to be used for purposes of the program.
(c) "Executive director" means the Executive Director of the
California Pollution Control Financing Authority.
(d) (1) "Financial institution" means a federal- or
state-chartered bank, savings association, credit union,
not-for-profit community development financial institution certified
under Part 1805 (commencing with Section 1805.100) of Chapter XVIII
of Title 12 of the Code of Federal Regulations, or a consortium of
these entities. A consortium of those entities may include a
nonfinancial corporation, if the percentage of capitalization by all
nonfinancial corporations in the consortium does not exceed 49
percent.
(2) "Financial institution" also includes a lending institution
that has executed a participation agreement with the Small Business
Administration under the guaranteed loan program pursuant to Part 120
(commencing with Section 120.1) of Chapter I of Title 13 of the Code
of Federal Regulations and meets the requirements of Section 120.410
of Chapter I of Title 13 of the Code of Federal Regulations, and a
small business investment company licensed pursuant to Part 107
(commencing with Section 107.20) of Chapter I of Title 13 of the Code
of Federal Regulations. For loans where all or part of the fees and
matching contributions are paid by an entity participating in the
program pursuant to subdivision (e) of Section 44559.2, "financial
institution" also includes financial lenders, as defined in Section
22009 of the Financial Code, making commercial loans, as defined in
Section 22502 of the Financial Code.
(3) A financial institution described in paragraph (2) shall be
domiciled or have its principal office in the State of California.
(e) "Loss reserve account" means an account in the State Treasury
or any financial institution that is established and maintained by
the authority for the benefit of a financial institution
participating in the Capital Access Loan Program established pursuant
to this article for the purposes of the following:
(1) Depositing all required fees paid by the participating
financial institution and the qualified business.
(2) Depositing contributions made by the state and, if applicable,
the federal government or other sources.
(3) Covering losses on enrolled qualified loans sustained by the
participating financial institution by disbursing funds accumulated
in the loss reserve account.
(f) "Participating financial institution" means a financial
institution that has been approved by the authority to enroll
qualified loans in the program and has agreed to all terms and
conditions set forth in this article and as may be required by any
applicable federal law providing matching funding.
(g) "Passive real estate ownership" means ownership of real estate
for the purpose of deriving income from speculation, trade, or
rental, but does not include any of the following:
(1) The ownership of that portion of real estate being used or
intended to be used for the operation of the business of the owner of
the real estate.
(2) The ownership of real estate for the purpose of construction
or renovation, until the completion of the construction or renovation
phase.
(h) "Program" means the Capital Access Loan Program created
pursuant to this article.
(i) "Qualified business" means a small business concern that meets
both of the following criteria, regardless of whether the small
business concern has operations that affect the environment:
(1) It is a corporation, partnership, cooperative, or other
entity, whether that entity is a nonprofit entity or an entity
established for profit, that is authorized to conduct business in the
state.
(2) It has its primary business location within the boundaries of
the state.
(j) (1) "Qualified loan" means a loan or a portion of a loan made
by a participating financial institution to a qualified business for
any business activity that has its primary economic effect in
California. A qualified loan may be made in the form of a line of
credit, in which case the participating financial institution shall
specify the amount of the line of credit to be covered under the
program, which may be equal to the maximum commitment under the line
of credit or an amount that is less than that maximum commitment. A
qualified loan made under the program may be made with the interest
rates, fees, and other terms and conditions agreed upon by the
participating financial institution and the borrower.
(2) "Qualified loan" does not include any of the following:
(A) A loan for the construction or purchase of residential
housing.
(B) A loan to finance passive real estate ownership.
(C) A loan for the refinancing of an existing loan when and to the
extent that the outstanding balance is not increased.
(D) A loan, the proceeds of which will be used in any manner that
could cause the interest on any bonds previously issued by the
authority to become subject to federal income tax.
(k) "Severely affected community" means any area classified as an
enterprise zone pursuant to the Enterprise Zone Act (Chapter 12.8
(commencing with Section 7070) of Division 7 of Title 1 of the
Government Code), any area, as designated by the executive director,
contiguous to the boundaries of a military base designated for
closure pursuant to Section 2687 of Title 10 of the United States
Code, as amended, and any other comparable economically distressed
geographic area so designated by the executive director from time to
time.
() "Small Business Assistance Fund" means a fund created within
the authority pursuant to Section 44548.
(m) "Small business concern" has the same meaning as in Section
632 of Title 15 of the United States Code, or as otherwise provided
in regulations of the authority.
SEC. 31. Section 44559.4 of the Health and Safety Code is amended
to read:
44559.4. (a) If a financial institution that is participating in
the Capital Access Loan Program established pursuant to this article
decides to enroll a qualified loan under the program in order to
obtain the protection against loss provided by its loss reserve
account, it shall notify the authority in writing on a form
prescribed by the authority, within 10 days after the date on which
the loan is made, of all of the following:
(1) The disbursement of the loan.
(2) The dollar amount of the loan enrolled.
(3) The interest rate applicable to, and the term of, the loan.
(4) The amount of the agreed upon premium.
(b) The financial institution may make a qualified loan to be
enrolled under the program to an individual, or to a partnership or
trust wholly owned or controlled by an individual, for the purpose of
financing property that will be leased to a qualified business that
is wholly owned by that individual. In that case, the property shall
be treated as meeting the requirements of paragraph (1) of
subdivision (g) of Section 44559.1.
(c) When making a qualified loan that will be enrolled under the
program, the participating financial institution shall require the
qualified business to which the loan is made to pay a fee of not less
than 2 percent of the principal amount of the loan, but not more
than 31/2 percent of the principal amount. The financial institution
shall also pay a fee in an amount equal to the fee paid by the
borrower. The financial institution shall deliver the fees collected
under this subdivision to the authority for deposit in the loss
reserve account for the institution. The financial institution may
recover from the borrower the cost of its payments to the loss
reserve account through the financing of the loan, upon the agreement
of the financial institution and the borrower. The financial
institution may cover the cost of borrower payments to the loan loss
reserve account.
(d) When depositing fees collected under subdivision (c) to the
credit of the loss reserve account for a participating financial
institution, the authority shall do the following:
(1) If no matching funds are available under a federal capital
access program or other source, the authority shall transfer to the
loss reserve account an amount that is not less than the amount of
the fees paid by the participating financial institution. However, if
the qualified business is located within a severely affected
community, the authority shall transfer to the loss reserve account
an amount equal to 150 percent of the amount of the fees paid by the
participating financial institution.
(2) If matching funds are available under a federal capital access
program or other source, the authority shall transfer, on an
immediate or deferred basis, to the loss reserve account the amount
required by that federal program or other source. However, the total
amount deposited into the loss reserve account shall not be less than
the amount which would have been deposited in the absence of
matching funds.
SEC. 32. Section 6206.5 of the Public Resources Code is amended to
read:
6206.5. The commission is hereby empowered to apply to the United
States Department of the Interior for patents to the numbered school
sections in place and to accept patents, in accordance with an act
of Congress approved June 21, 1934 (Public No. 440-73d Congress)
entitled "An Act Authorizing the Secretary of the Interior to issue
patents to the numbered school sections in place, granted to the
States by the act approved February 22, 1889, by the act approved
January 25, 1927 (44 Stat. 1026), and by any other act of Congress."
SEC. 33. Section 41780 of the Public Resources Code is amended to
read:
41780. (a) Each jurisdiction's source reduction and recycling
element shall include an implementation schedule that shows both of
the following:
(1) For the initial element, the jurisdiction shall divert 25
percent of all solid waste by January 1, 1995, through source
reduction, recycling, and composting activities.
(2) Except as provided in Sections 41783 and 41784, for the first
and each subsequent revision of the element, the jurisdiction shall
divert 50 percent of all solid waste on and after January 1, 2000,
through source reduction, recycling, and composting activities.
(b) This section does not prohibit a jurisdiction from
implementing source reduction, recycling, and composting activities
designed to exceed the requirements of this division.
SEC. 34. This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
In order to ensure the protection of the environment at the
earliest possible time, it is necessary that this act take effect
immediately.