AB 2711, as amended, Muratsuchi. Oil and gas: loan to City of Hermosa Beach.
Existing law requires the State Lands Commission to deposit in the General Fund all revenues, moneys, and remittances received by the commission, with certain exceptions. Existing law requires that the moneys be used for specified purposes, including refunds, commission expenses, and specified payments to cities and counties.
This bill would appropriatebegin delete $17,500,000end deletebegin insert $11,500,000end insert from the General Fund, from certain oil and gas revenues deposited by the commission, to the Controller for a loan to the City of Hermosa Beach, to be made if the city is obligated to make payment pursuant to a specified settlement agreement. The bill would require the State Board
of Equalization, if the city fails to make any payment on the loan when due and upon the order of the Controller, to deduct the amount of the payment from the sales and use taxes to be paid to the city. The bill would also require the Controller to deposit moneys received in repayment of the loan into thebegin delete State Coastal Conservancyend deletebegin insert Generalend insert Fundbegin delete to be used, upon appropriation, by the State Coastal Conservancy for expenses related to the conservancy’s Climate Ready Programend delete.
This bill would declare that it is to take effect immediately as an urgency statute.
end insertVote: 2⁄3. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
(a) The sum ofbegin delete seventeenend deletebegin insert elevenend insert million five
2hundred thousand dollarsbegin delete ($17,500,000)end deletebegin insert ($11,500,000)end insert is hereby
3appropriated from the General Fund, from the oil and dry gas
4revenues paid to the state during the 2014-15 fiscal year and
5deposited in the General Fund pursuant to Section 6217 of the
6Public Resources Code, to the Controller for purposes of
this act.
7The Controller shall, upon agreement with the City of Hermosa
8Beach, loan that sum, or a portion thereof, to the city if the city is
9obligated to make payment pursuant to Section IV.4.6.c of “The
10Settlement Agreement and Release” entered into on March 2, 2012,
11between Macpherson Oil Company, Windward Associates, E&B
12Natural Resources Management Corporation, and the City of
13Hermosa Beach.
14(b) A loan to the City of Hermosa Beach pursuant to subdivision
15(a) shall be subject to the following terms:
16(1) The city shall annually pay to the Controller, prior to June
1730 of each year, not less than five hundred thousand dollars
18($500,000) until the loan is paid in full.
19(2) If the City of Hermosa Beach fails to make any
payment
20when due pursuant to paragraph (1) for any reason, the State Board
21of Equalization, upon the order of the Controller, shall deduct the
22amount of that payment from the sales and use taxes to be paid to
23the city thereafter pursuant to Section 7204 of the Revenue and
24Taxation Code and shall pay the amount so deducted to the
25Controller.
26(c) The Controller shall deposit all payments received pursuant
27to subdivision (b) into thebegin delete State Coastal Conservancy Fund to be begin insert
General end insertbegin insertFund.end insert
28used, upon appropriation, by the State Coastal Conservancy for
29expenses related to the conservancy’s Climate Ready Program,
30authorized pursuant to Section 31113 of the Public Resources
31Code.end delete
This act is an urgency statute necessary for the
2immediate preservation of the public peace, health, or safety within
3the meaning of Article IV of the Constitution and shall go into
4immediate effect. The facts constituting the necessity are:
5In order to facilitate the implementation of a loan of state
6revenues to the City of Hermosa Beach as quickly as possible, it
7is necessary that this act take effect immediately.
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