BILL NUMBER: SB 225	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JULY 13, 2011
	AMENDED IN ASSEMBLY  JUNE 29, 2011

INTRODUCED BY   Senator Simitian
   (Principal coauthor: Assembly Member Achadjian)

                        FEBRUARY 9, 2011

   An act  to amend Section 44559.11 of, and  to add Section
 44559.10 to   44559.12 to,  the Health
and Safety Code, relating to the California Pollution Control
Financing Authority.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 225, as amended, Simitian. California Pollution Control
Financing Authority: Capital Access Loan Program.
   The California Pollution Control Financing Authority Act
establishes the Capital Access Loan Program for small businesses,
administered by the California Pollution Control Financing Authority,
which provides loans through participating financial institutions to
qualifying small businesses. The authority is required to create a
loss reserve account for each financial institution.  The act
authorizes the authority to enact regulations for the distribution of
specified funds paid to the authority. 
   This bill would authorize the authority to establish loss reserve
accounts for the purposes of  financing  terminal rental
adjustment clause  , as defined,  leasing, if funds
are available for contribution into the loss reserve account from any
source other than the authority.  The bill would prohibit, for
purposes of the loss reserve accounts for terminal rental adjustment
clause leasing, the use of fund   s provided by the federal
government for the purposes of providing a loan loss reserve program.

   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 44559.11 of the  
Health and Safety Code   is amended to read: 
   44559.11.   (a)    It is the intent of the
Legislature to ensure that the state, through the authority, may make
maximum, efficient use of capital access programs enacted by all
federal and state agencies, as well as funding available from any
governmental program whose goals may be advanced by providing funding
to the Capital Access Loan Program.  In 
    (b)     In  furtherance of this
intent, and  not withstanding   notwithstanding
 any other provision of this article, when the contributions
required pursuant to  subdivision (c) of  Section
44559.4 are entirely funded by a source other than the authority, the
authority may, by regulation adopted pursuant to subdivision (b) of
Section 44520, establish alternate provisions as necessary to enable
the authority to participate in the alternative funding source
program. 
  SECTION 1.    Section 44559.10 is added to the
Health and Safety Code, to read:
   44559.10.  (a) Notwithstanding any other provision of this article

   SEC. 2.    Section 44559.12 is added to the 
 Health and Safety Code   , to read: 
    44559.12.    (a)     Consistent
with subdivision (b) of Section 44559.11  , the authority may
establish loss reserve accounts for the purposes of  financing
 terminal rental adjustment clause leasing, if funds are
available for contribution into the loss reserve account from any
source other than the authority. The authority shall not contribute
any funds into a loss reserve account created pursuant to this
section.  Funds   provided by the federal government for
the purposes of providing a loan loss reserve program shall not be
contributed to an account created pursuant to this section. 
   (b) The executive director may establish conditions for terminal
rental adjustment clause leasing loss reserve accounts created
pursuant to this section.
   (c) As used in this section, "terminal rental adjustment clause"
means "terminal rental adjustment clause" as defined in Section 7701
(h)(3) of Title 26 of the United States Code.