Bill Text: CA AB1393 | 2015-2016 | Regular Session | Amended
Bill Title: California Pollution Control Financing Authority.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Failed) 2016-11-30 - From Senate committee without further action. [AB1393 Detail]
Download: California-2015-AB1393-Amended.html
BILL NUMBER: AB 1393 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 30, 2015
AMENDED IN ASSEMBLY MAY 18, 2015
INTRODUCED BY Assembly Member Burke
FEBRUARY 27, 2015
An act to amend Sections 44520, 44525, 44526, 44559.3, 44559.6,
and 44559.11 of, and to repeal and add Section 44525.7 of, the Health
and Safety Code, relating to the California Pollution Control
Financing Authority.
LEGISLATIVE COUNSEL'S DIGEST
AB 1393, as amended, Burke. California Pollution Control Financing
Authority.
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 authorize the authority to lend financial
assistance, including, but not limited to, grants, loans, credit
enhancements, and other incentives. The bill also would authorize the
authority to establish alternate provisions as necessary to enable
the authority to participate in an alternative funding source
program, including, but not limited to, implementing loan loss
reserve programs to benefit any person, company, corporation, public
agency, partnership, or firm engaged in activities in the state that
require financing, and to adopt the policies of those alternative
funding sources. The bill also would make conforming changes.
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 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 loan program or small business or
brownfield site financing assistance program pursuant to an
interagency agreement with the authority, may adopt regulations
relating to the loans or small business or brownfield site
financing as emergency regulations in accordance with the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code).
For purposes of the Administrative Procedure Act, 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. 2. 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 subdivision
(h) of Section 44526.
SEC. 3. Section 44525.7 of the Health and Safety Code, as added by
Section 7 of Chapter 915 of the Statutes of 2000, is repealed.
SEC. 4. Section 44525.7 is added to the Health and Safety Code, to
read:
44525.7. Notwithstanding Section 10231.5 of the Government Code,
commencing in 2016 and annually thereafter, the authority shall
submit a report to the Legislature, pursuant to Section 9795 of the
Government Code, regarding alternative financing programs
administrated under administered pursuant to
subdivision (a) of Section 44526.
SEC. 5. Section 44526 of the Health and Safety Code is amended to
read:
44526. The authority may do any of the following:
(a) Determine the location and character of any project to be
financed under the provisions of this division, lend financial
assistance, including grants, loans, credit enhancements, and other
incentives designed to leverage private capital, to any participating
party, construct, reconstruct, renovate, replace, lease, as lessor
or lessee, and regulate the same, and enter into contracts for the
sale of any pollution control facilities, including installment sales
or sales under conditional sales contracts, and make loans to
participating parties to lend financial assistance in the
acquisition, construction, or installation of a project.
(b) Issue bonds, notes, bond anticipation notes, and other
obligations of the authority for any of its corporate purposes, and
fund or refund the same, all as provided in this division.
(c) 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 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 of a project and contract with any person, partnership,
association, corporation, or public agency with respect to these
matters, 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) 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; 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 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) Receive and accept loans, contributions, or grants,
grants of money, moneys,
property, labor, or other things of value,
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) Apply for, and accept, subventions, grants, loans, advances,
and contributions from any source, sources
of money, moneys, 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) Reserved]
(h) (1) 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) Do all things generally necessary or convenient to carry out
the purposes of this division.
SEC. 6. Section 44559.3 of the Health and Safety Code is amended
to read:
44559.3. (a) The authority shall establish a loss reserve
account for each financial institution with which the authority makes
a contract.
(b) The loss reserve account for a financial institution shall
consist of moneys paid as fees by borrowers and the financial
institution, moneys transferred to the account from a small business
assistance fund, any matching federal moneys, and any other moneys
provided by the authority or other source.
(c) Notwithstanding any other law, the authority may establish and
maintain loss reserve accounts with any financial institution under
any policies the authority may adopt, including the policies of other
funding sources, pursuant to subdivision (b) of Section 44559.11.
(d) All moneys in a loss reserve account established pursuant to
this article are the exclusive property of, and solely controlled by,
the authority. Interest or income earned on moneys credited to the
loss reserve account shall be deemed to be part of the loss reserve
account. The authority may withdraw from the loss reserve account
all, or a portion of, the interest or other income that has been
credited to the loss reserve account. Any withdrawal made pursuant to
this subdivision may be made prior to paying any claim and shall be
used for the sole purpose of offsetting costs associated with
carrying out the program, including administrative costs and loss
reserve account contributions.
(e) The combined amount to be deposited by the participating
financial institution into any individual loss reserve account over a
three-year period, in connection with any single borrower or any
group of borrowers among which a common enterprise exists, shall be
not more than one hundred thousand dollars ($100,000).
SEC. 7. Section 44559.6 of the Health and Safety Code is amended
to read:
44559.6. (a) Notwithstanding Section 10231.5 of the Government
Code, the authority shall annually prepare a report to the Governor
and the Legislature that describes the financial condition and
programmatic results of the capital access loan programs authorized
under this article. Programmatic results shall include, but not be
limited to, the total number of business, entities, and individuals
served, jobs created, jobs retained, the geographic distribution of
the loans, and the breakdown of businesses served by industry sector
for all new loans issued since the report for the prior year.
(b) The report submitted to the Legislature shall be submitted in
compliance with Section 9795 of the Government Code.
SEC. 8. 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.
(b) In furtherance of this intent, and notwithstanding any other
provision of this article, when the contributions required pursuant
to Section 44559.4 are entirely funded by a source that is a public
or quasi-public entity 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, including
implementing loan loss reserve programs to benefit any person,
company, corporation, public agency, partnership, or firm engaged in
activities in furtherance of the public or quasi-public entity's
policy objectives in the state that require financing.
