Bill Text: CA AB1873 | 2009-2010 | Regular Session | Chaptered
Bill Title: Property Assessed Clean Energy (PACE) bonds.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2010-09-30 - Chaptered by Secretary of State - Chapter 583, Statutes of 2010. [AB1873 Detail]
Download: California-2009-AB1873-Chaptered.html
BILL NUMBER: AB 1873 CHAPTERED
BILL TEXT
CHAPTER 583
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2010
APPROVED BY GOVERNOR SEPTEMBER 30, 2010
PASSED THE SENATE AUGUST 18, 2010
PASSED THE ASSEMBLY AUGUST 20, 2010
AMENDED IN SENATE AUGUST 9, 2010
AMENDED IN SENATE JUNE 23, 2010
AMENDED IN ASSEMBLY MAY 28, 2010
AMENDED IN ASSEMBLY APRIL 27, 2010
AMENDED IN ASSEMBLY APRIL 5, 2010
INTRODUCED BY Assembly Member Huffman
FEBRUARY 16, 2010
An act to add Sections 6509.6, 16480.45, and 20194.5 to the
Government Code, and to amend Section 11797 of the Insurance Code,
relating to Property Assessed Clean Energy Bonds.
LEGISLATIVE COUNSEL'S DIGEST
AB 1873, Huffman. Property Assessed Clean Energy (PACE) bonds.
Existing law requires the Treasurer to invest or make deposits in
banks and savings and loan associations of revenues in the Pooled
Money Investment Account in accordance with designations specified by
the Pooled Money Investment Board.
The Board of Administration of the Public Employees' Retirement
System is authorized to make any investment authorized by law,
including, among others, an investment in real property.
The State Compensation Insurance Fund is authorized to purchase
general obligation bonds or other evidence of indebtedness issued by
the state.
Existing law authorizes a legislative body of a public agency, as
defined, to determine that it would be convenient, advantageous, and
in the public interest to designate an area within which authorized
officials and property owners may enter into voluntary contractual
assessments to finance the installation of distributed generation
renewable energy sources or energy or water efficiency improvements
that are permanently fixed to real property. Existing law authorizes
a public agency to issue bonds to finance that work, to be repaid by
voluntary contractual assessments.
Existing law defines a Property Assessed Clean Energy (PACE) bond
as a bond that is secured by a voluntary contractual assessment as
previously described or by a voluntary contractual assessment or a
voluntary special tax on property to finance the installation of
distributed generation renewable energy sources, or energy or water
efficiency improvements that are levied pursuant to a chartered city'
s constitutional authority under Section 5 of Article XI of the
California Constitution.
This bill would authorize the Treasurer, upon direction of the
Pooled Money Investment Board, the Board of Administration of the
Public Employees' Retirement System, and the State Compensation
Insurance Fund to purchase PACE bonds from specified funds.
The Exercise of Powers Act authorizes any separate entity created
pursuant to that act to invest any money in the treasury that is not
required for the immediate necessities of the agency or entity, as
the agency or entity determines is advisable.
This bill would authorize a joint powers authority to purchase,
and a local agency to sell, the right, title, and interest in an
assessment contract, pursuant to an agreement between the joint
powers authority and the local agency.
The bill would incorporate additional changes to Section 11797 of
the Insurance Code, proposed by SB 1407 of the 2009-10 Regular
Session, to be operative only if both bills are chaptered and become
effective on or before January 1, 2011, and this bill is chaptered
last.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) Global climate change poses serious risks to California's
public health and natural environment, including significant threats
to air and water quality and irreparable damage to ecosystems and
wildlife.
(b) This state has established clear policy goals, through
measures such as the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500) of the Health and
Safety Code), to address global climate change.
(c) The Legislature has also established clear policy goals to
promote energy efficiency, reduce the state's reliance on fossil
fuels, and increase the state's energy independence.
(d) The promotion of renewable energy sources along with increased
efficiency reduces pollution and greenhouse gas emissions and has a
positive effect on air quality.
(e) Investment in energy and water efficiency improvements is also
of benefit to California's economy, stimulating financial
investments and creating new jobs.
(f) The protection of California's natural resources helps
stimulate our economy, especially industries related to tourism,
fishing, and new technologies, as well as enhancing citizens' quality
of life.
(g) Residential property improvements to energy and water
efficiency financed by contractual assessments authorized by Section
5898.20 of the Streets and Highways Code, or a voluntary contractual
assessment or voluntary special tax that is levied pursuant to a
chartered city's constitutional authority, provide a public benefit
to everyone in California.
SEC. 2. Section 6509.6 is added to the Government Code, to read:
6509.6. Notwithstanding any other law, a joint powers authority
created pursuant to this chapter may purchase or acquire, by sale,
assignment, pledge, or other transfer from a local agency, and any
local agency may sell, assign, pledge, or transfer to a joint powers
authority any or all of that local agency's right, title, and
interest in and to an assessment contract authorized by Chapter 29
(commencing with Section 5898.10) of Part 3 of Division 7 of the
Streets and Highways Code, including any related lien, right,
subsidy, or other right and receivable, and the enforcement and
collection thereof, pursuant to any terms and conditions agreed to
between the joint powers authority and the local agency.
SEC. 3. Section 16480.45 is added to the Government Code, to read:
16480.45. In addition to any other investment authorized by this
article, the Treasurer may invest in Property Assessed Clean Energy
(PACE) bonds, as defined in Section 26104 of the Public Resources
Code.
SEC. 4. Section 20194.5 is added to the Government Code, to read:
20194.5. In addition to the other investments authorized by this
article, the board may invest in Property Assessed Clean Energy
(PACE) bonds, as defined in Section 26104 of the Public Resources
Code.
SEC. 5. Section 11797 of the Insurance Code is amended to read:
11797. (a) The board of directors shall cause all moneys in the
State Compensation Insurance Fund which are in excess of current
requirements to be invested and reinvested, from time to time, in the
same manner as provided for private insurance carriers pursuant to
Article 3 (commencing with Section 1170) of Chapter 2 of Part 2 of
Division 1.
(b) (1) (A) Notwithstanding any other law, the State Compensation
Insurance Fund may purchase general obligation bonds or other
evidence of indebtedness issued by the state, including, but not
limited to, notes issued pursuant to Part 5 (commencing with Section
17300) of Division 4 of Title 2 of the Government Code or warrants
issued pursuant to Part 4 (commencing with Section 17000) of Division
4 of Title 2 of the Government Code, in any amount and to enter into
purchase contracts with the state for this purpose.
(B) Notwithstanding any other law, the State Compensation
Insurance Fund may purchase Property Assessed Clean Energy (PACE)
bonds, as defined in Section 26104 of the Public Resources Code.
(2) The bonds or other evidence of indebtedness specified in
paragraph (1), upon delivery to the State Compensation Insurance
Fund, shall, for all purposes, be valid and binding obligations of
the issuer thereof, be validly issued and outstanding in accordance
with their stated terms, and not be deemed to be owned by or on
behalf of the issuer thereof.
SEC. 5.5. Section 11797 of the Insurance Code is amended to read:
11797. (a) The board of directors shall cause all moneys in the
State Compensation Insurance Fund that are in excess of current
requirements to be invested and reinvested, from time to time, in the
same manner as provided for private insurance carriers pursuant to
Article 3 (commencing with Section 1170) and Article 4 (commencing
with Section 1190) of Chapter 2 of Part 2 of Division 1, but
excluding Sections 1191, 1191.1, 1191.5, 1192.2, 1192.4, 1192.6,
1192.7, 1192.9, 1192.95, 1192.10, 1194.7, 1194.8, 1194.81, 1194.82,
1194.85, 1198, and 1199.
(b) (1) (A) Notwithstanding any other law, the State Compensation
Insurance Fund may purchase general obligation bonds or other
evidence of indebtedness issued by the state, including, but not
limited to, notes issued pursuant to Part 5 (commencing with Section
17300) of Division 4 of Title 2 of the Government Code or warrants
issued pursuant to Part 4 (commencing with Section 17000) of Division
4 of Title 2 of the Government Code, in any amount and to enter into
purchase contracts with the state for this purpose.
(B) Notwithstanding any other law, the State Compensation
Insurance Fund may purchase Property Assessed Clean Energy (PACE)
bonds, as defined in Section 26104 of the Public Resources Code.
(2) The bonds or other evidence of indebtedness specified in
paragraph (1), upon delivery to the State Compensation Insurance
Fund, shall, for all purposes, be valid and binding obligations of
the issuer thereof, be validly issued and outstanding in accordance
with their stated terms, and not be deemed to be owned by or on
behalf of the issuer thereof.
SEC. 6. Section 5.5 of this bill incorporates amendments to
Section 11797 of the Insurance Code proposed by both this bill and SB
1407. It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2011, (2) each bill
amends Section 11797 of the Insurance Code, and (3) this bill is
enacted after SB 1407, in which case Section 5 of this bill shall not
become operative.
