Bill Text: CA SB1400 | 2019-2020 | Regular Session | Amended
Bill Title: Accessory Dwelling Unit Construction Bond Act of 2020.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-04-08 - From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. [SB1400 Detail]
Download: California-2019-SB1400-Amended.html
Amended
IN
Senate
April 08, 2020 |
Amended
IN
Senate
March 26, 2020 |
Introduced by Senator Umberg |
February 21, 2020 |
LEGISLATIVE COUNSEL'S DIGEST
(1)Existing
(2)Existing law contains provisions related to elections and voting, including a requirement that a measure submitted to the people by the Legislature appear on the ballot of the first statewide election occurring at least 131 days after the adoption of the proposal by the Legislature and that the Secretary of State mail state voter information guides to voters.
This bill would require the Secretary of State, notwithstanding specified provisions of existing law relating to elections and voting, to submit the Accessory Dwelling Unit Construction Bond Act of 2020 at the next statewide general election following the effective date of the bill.
(3)This
Digest Key
Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Part 17 (commencing with Section 54100) is added to Division 31 of the Health and Safety Code, to read:PART 17. Accessory Dwelling Unit Construction Bond Act of 2020
CHAPTER 1. General Provisions
54100.
This part shall be known, and may be cited, as the Accessory Dwelling Unit Construction Bond Act of 2020.54102.
As used in this part:54104.
This part shall only become operative upon adoption by the voters at the next statewide general election following the effective date of the act adding this section.CHAPTER 2. Accessory Dwelling Unit Construction Program
Article 1. General Provisions
54110.
It is the intent of the Legislature in enacting, and the intent of the voters in approving, this act to provide homeowners with the opportunity to construct accessory dwelling units on their properties by providing financial assistance for that construction. It is further the intent of the Legislature and the voters that repayment of the bonds authorized by this part be primarily financed by the repayment of loans provided to homeowners under this chapter.54111.
(a) There is hereby established the Accessory Dwelling Unit Construction Program, which the department shall administer.54112.
(a) The Accessory Dwelling Unit Construction Trust Fund of 2020 is hereby created within the State Treasury. The proceeds of bonds issued pursuant to this part, except for refunding bonds issued pursuant to Section 54140, shall be deposited in the construction fund and used to provide financing under the program, consistent with the requirements of this part.54113.
(a) The Accessory Dwelling Unit Construction Bond Payment Fund is hereby created within the State Treasury as a revolving special fund. Notwithstanding Section 13340 of the Government Code, moneys in the payment fund are continuously appropriated to the Treasurer for the sole purpose of paying debt service when due on bonds issued pursuant to this part.54114.
For the purposes of this chapter, the department shall have the following powers:54115.
The Legislature may amend the provisions of this chapter for the purposes of improving the efficiency and effectiveness of the program or to further the goals of the program.Article 2. Financing for Accessory Dwelling Units
54120.
(a) The department may enter into a contract with a homeowner to provide financing to pay for the eligible costs incurred by the homeowner in constructing an accessory dwelling unit on the homeowner’s property.54121.
A homeowner applying for financing under the program shall provide the department with any information, in the form prescribed by the department, that will enable the department to determine the homeowner’s eligibility and qualifications under this chapter.54122.
The department may contract with state or federally chartered banks or savings and loan associations for originating or servicing financing authorized by this chapter.Article 3. Financing Repayment
54125.
The department shall set the interest rate on financing provided pursuant to the program at an amount that is necessary to pay the interest on the bonds issued pursuant to this part and to defray costs of administration incurred by the department pursuant to this part.54126.
(a) The balance of the loan amount may be amortized over a period fixed by the department, not exceeding 40 years, together with interest thereon at the rate determined pursuant to Section 54125.54127.
If a borrower indebted to the department under a contract for financing pursuant to this chapter dies, the borrower’s rights and obligations under a financing contract entered into pursuant to this chapter shall devolve upon the borrower’s heirs, devisees, or personal representatives, subject to all rights, claims, and charges of the department. If the borrower’s heir, devisee, or personal representative defaults on the financing contract, that default shall have the same effect as would default on the part of the borrower with respect to any right, claim, or charge of the department.54128.
All moneys received by the department from a borrower for the repayment of financing provided under this chapter shall be deposited in the payment fund and used in accordance with Section 54113.CHAPTER 3. Fiscal Provisions
54130.
(a) Bonds in the total amount of five hundred million dollars ($500,000,000), or so much thereof as is necessary, not including the amount of any refunding bonds issued in accordance with Section 54140, may be issued and sold to provide a fund to be used for carrying out the purposes expressed in this part and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds, when sold, shall be and constitute a valid and binding obligation of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both principal of, and interest on, the bonds as the principal and interest become due and payable.54131.
(a) The bonds authorized by this part shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code), except for subdivisions (a) and (b) of Section 16727 of the Government Code, as amended from time to time, and all of the provisions of that law apply to the bonds and to this part and are hereby incorporated in this part as though set forth in full in this part.54132.
(a) Solely for the purpose of authorizing the issuance and sale pursuant to the State General Obligation Bond Law of the bonds authorized by this part, the Accessory Dwelling Unit Construction Finance Committee is hereby created.54133.
The committee shall determine by resolution whether or not it is necessary or desirable to issue and sell bonds authorized pursuant to this part in order to carry out the actions specified in this part and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds authorized to be issued be sold at any one time.54134.
(a) There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds each year. It is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and perform each and every act that is necessary to collect that additional sum.54135.
Notwithstanding Section 13340 of the Government Code, there is hereby continuously appropriated from the General Fund in the State Treasury, for the purposes of this part and without regard to fiscal years, an amount that equals the total of the following:54136.
The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, in accordance with Section 16312 of the Government Code, for the purpose of carrying out this part less any amount withdrawn pursuant to Section 54137. The amount of the request shall not exceed the amount of the unsold bonds that the committee has, by resolution, authorized to be sold for the purpose of carrying out this part, excluding any refunding bonds authorized pursuant to Section 54140, less any amount loaned pursuant to this section and not yet repaid and any amount withdrawn from the General Fund pursuant to Section 54137 and not yet returned to the General Fund. The board shall execute any documents required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the construction fund to be allocated by the board in accordance with this part.54137.
For the purposes of carrying out this part, the Director of Finance may authorize the withdrawal from the General Fund of an amount not to exceed the amount of the unsold bonds that have been authorized by the committee to be sold for the purpose of carrying out this part, excluding any refunding bonds authorized pursuant to Section 54140, less any amount loaned pursuant to Section 54136 and not yet repaid, and any amount withdrawn from the General Fund pursuant to this section and not yet returned to the General Fund. Any amounts withdrawn shall be deposited in the construction fund. Any moneys made available under this section shall be returned to the General Fund from proceeds received from the sale of bonds for the purpose of carrying out this part.54138.
All moneys deposited in the construction fund that are derived from premium and accrued interest on bonds sold pursuant to this part shall be reserved in the construction fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest, except those amounts derived from premium may be reserved and used to pay the cost of bond issuance prior to any transfer to the General Fund.54139.
Pursuant to the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code), the cost of bond issuance shall be paid out of the bond proceeds, including premium, if any. To the extent the cost of bond issuance is not paid from premiums received from the sale of bonds, these costs shall be shared proportionally by each program funded through this part by the applicable bond sale.54140.
The bonds issued and sold pursuant to this part may be refunded in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government Code, which is a part of the State General Obligation Bond Law. Approval by the voters of the state for the issuance of the bonds described in this part includes the approval of the issuance of any bonds issued to refund any bonds originally issued under this part or any previously issued refunding bonds.54141.
Notwithstanding any other provision of this part, or of the State General Obligation Bond Law, if the Treasurer sells bonds pursuant to this part that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes under designated conditions or is otherwise entitled to any federal tax advantage, the Treasurer may maintain separate accounts for the bond proceeds invested and for the investment earnings on those proceeds. The Treasurer may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law or take any other action with respect to the investment and use of those bond proceeds required or desirable under federal law to maintain the tax-exempt status of those bonds and to obtain any other advantage under federal law on behalf of the funds of this state.54142.
The proceeds from the sale of bonds authorized by this part are not “proceeds of taxes” as that term is used in Article XIII B of the California Constitution, and the disbursement of these proceeds is not subject to the limitations imposed by that article.SEC. 2.
Section 1 of this act shall take effect upon the approval by the voters of the Accessory Dwelling Unit Construction Bond Act of 2020, as set forth in Section 1 of this act.(a)(1)Notwithstanding Sections 9040, 9043, 9044, 9061, and 9082 of the Elections Code, or any other law, Section 1 of this act shall be submitted by the Secretary of State to the voters at the next statewide general election following the effective date of this act.
(2)The requirement of Section 9040 of the Elections Code that a measure submitted to the people by the
Legislature appear on the ballot of the first statewide election occurring at least 131 days after the adoption of the proposal by the Legislature shall not apply to Section 1 of this act.
(b)The Secretary of State shall include in the ballot pamphlets mailed pursuant to Section 9094 of the Elections Code the information specified in Section 9084 of the Elections Code regarding Section 1 of this act. If that inclusion is not possible, the Secretary of State shall publish a supplemental ballot pamphlet regarding Section 1 of this act to be mailed with the ballot pamphlet. If the supplemental ballot pamphlet cannot be mailed with the ballot pamphlet, the supplemental ballot pamphlet shall be mailed separately.
(c)Notwithstanding Section 9054 of the Elections Code or any other law, the translations of the ballot title and the condensed statement of the ballot title required pursuant to Section 9054 of the Elections Code for Section 1 of this act may be made available for public examination at a later date than the start of the public examination period for the ballot pamphlet.
(d)Notwithstanding Sections 13115 and 13117 of the Elections Code, Section 1 of this act and any other measure placed on the ballot by the Legislature for the next statewide general election after the 131-day deadline set forth in Section 9040 of the Elections Code shall be placed on the ballot, following all other ballot measures, in the order in which they qualified as determined by
chapter number.