Bill Text: CA SB1477 | 2009-2010 | Regular Session | Chaptered
Bill Title: California Pollution Control Financing Authority.
Spectrum: Slight Partisan Bill (Democrat 5-2)
Status: (Passed) 2010-09-28 - Chaptered by Secretary of State. Chapter 414, Statutes of 2010. [SB1477 Detail]
Download: California-2009-SB1477-Chaptered.html
BILL NUMBER: SB 1477 CHAPTERED
BILL TEXT
CHAPTER 414
FILED WITH SECRETARY OF STATE SEPTEMBER 28, 2010
APPROVED BY GOVERNOR SEPTEMBER 28, 2010
PASSED THE SENATE APRIL 22, 2010
PASSED THE ASSEMBLY AUGUST 12, 2010
INTRODUCED BY Committee on Environmental Quality (Senators Simitian
(Chair), Corbett, Hancock, Lowenthal, Pavley, Runner, and
Strickland)
MARCH 1, 2010
An act to amend Sections 44508, 44542, 44543, and 44553 of the
Health and Safety Code, relating to the California Pollution Control
Financing Authority, and declaring the urgency thereof, to take
effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 1477, Committee on Environmental Quality. 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 make various changes to the financial and
administrative provisions of the act, including changes to the
definitions of "project," and "pollution control facility."
This bill would declare that it is to take effect immediately as
an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 44508 of the Health and Safety Code is amended
to read:
44508. "Project" and "pollution control facility," respectively,
mean any land, building, structure, improvement thereto, work, real
or personal property, vehicle, or equipment providing or designed to
provide for the control, reduction, abatement, elimination,
remediation, or prevention of pollution, improvement of air, water,
or soil quality, ensure the safe handling, recycling, or disposal of
materials that might otherwise be improperly disposed of, or provide
for environmental restoration, cleanup, or enhancement. Eligible
projects include, but are not limited to, any type of project
described in this section that is authorized pursuant to federal law
for tax-exempt or tax credit financing. Eligible projects may also
include any facility described in Section 142(a)(4), (5), (6), (8),
(9), (10), (12), or (14) of Title 26 of the United States Code.
SEC. 2. Section 44542 of the Health and Safety Code is amended to
read:
44542. (a) (1) The authority is authorized from time to time to
issue its negotiable bonds, notes, debentures, or other securities
(hereinafter collectively called "bonds") for any corporate purpose.
These bonds may be authorized, without limiting the generality of the
foregoing, to finance a single project for a single participating
party, a series of projects for a single participating party, a
single project for several participating parties, or several projects
for several participating parties.
(2) In anticipation of the sale of the bonds as authorized by
Section 44540, or as may be authorized pursuant to Section 44541, the
authority may issue negotiable bond anticipation notes and may renew
the same from time to time. These bond anticipation notes may be
paid from the proceeds of sale of the bonds of the authority in
anticipation of which they were issued. Notes and agreements relating
thereto and bond anticipation notes, hereinafter collectively called
notes, and the resolution or resolutions authorizing the same may
contain any provisions, conditions, or limitations that a bond,
agreement relating thereto, and bond resolution of the authority may
contain, except that the note or renewal thereof shall mature at a
time not exceeding three years from the date of issue of the original
note.
(b) Except as may otherwise be expressly provided by the
authority, every issue of its bonds, notes, or other obligation shall
be general obligations of the authority payable from any revenues or
moneys of the authority available therefor and not otherwise
pledged, subject only to any agreements with the holders of
particular bonds, notes, or other obligations pledging any particular
revenues or moneys and subject to any agreements with any
participating party. Notwithstanding that bonds, notes, or other
obligations may be payable from a special fund, they shall be and be
deemed to be for all purposes negotiable instruments, subject only to
the provisions of the bonds, notes, or other obligations for
registration.
(c) The bonds may be issued as serial bonds or as term bonds, or
the authority in its discretion, may issue bonds of both types. The
bonds shall be authorized by resolution of the authority and shall
bear the date or dates, mature at the time or times, not exceeding 50
years from their respective dates, bear interest at the fixed rate
or rates, or at the variable rates, including multiple methods of
setting rates from time to time while the bonds are outstanding, be
payable at the time or times, be in the denominations, be executed in
the manner, be payable in lawful money of the United States of
America at the place or places, and be subject to the terms of
redemption or tender, as resolution or resolutions may provide. The
bonds or notes shall be sold by the Treasurer as agent for sale. The
bond or notes may be sold at a public or private sale, and for the
price or prices and on terms and conditions, as the authority shall
determine after giving due consideration to the recommendations of
any participating party to be assisted from the proceeds of the bonds
or notes. Pending preparation of the definitive bonds, the Treasurer
may issue interim receipts, certificates, or temporary bonds which
shall be exchanged for definitive bonds. The Treasurer may sell any
bonds, notes, or other evidence of indebtedness at a price below the
par value thereof.
(d) Any resolution or resolutions authorizing any bonds or any
issue of bonds may contain provisions, which shall be a part of the
contract with the holders of the bonds or any provider of credit
enhancement to be authorized, as to all of the following:
(1) Pledging the full faith and credit of the authority or
pledging all or any part of the revenues of any project or any
revenue-producing contract or contracts made by the authority with
any individual, partnership, corporation, or association or other
body, public or private, or other moneys of the authority, to secure
the payment of the bonds or of any particular issue of bonds, subject
to agreements with bondholders or any providers of credit
enhancement as may then exist.
(2) The rentals, fees, purchase payments, loan payments, and other
charges to be charged, and the amounts to be raised in each year
thereby, and the use and disposition of the revenues.
(3) The setting aside of reserves or sinking funds, and the
regulation and disposition thereof.
(4) Limitations on the right of the authority or its agent to
restrict and regulate the use of the project or projects to be
financed out of the proceeds of the bonds or any particular issue of
bonds.
(5) Limitations on the purpose to which the proceeds of sale of
any issue of bonds then or thereafter to be issued may be applied and
pledging these proceeds to secure the payment of the bonds or any
issue of the bonds.
(6) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured and the
refunding of outstanding bonds.
(7) The procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds the
holders of which must consent thereto, and the manner in which
consent may be given.
(8) Limitations on expenditures for operating, administrative, or
other expenses of the authority.
(9) Defining the acts or omissions to act that constitute a
default in the duties of the authority to holders of its obligations
and providing the rights and remedies of these holders in the event
of a default.
(10) The mortgaging of any project and the site thereof for the
purpose of securing the bondholders.
(11) The mortgaging of land, improvements, or other assets owned
by a participating party for the purpose of securing the bondholders.
(12) Provisions for the security of any provider of credit
enhancement supporting payment on the bonds, but only in a manner
subordinate to the rights of bondholders.
(e) Neither the members of the authority nor any person executing
the bonds or notes shall be liable personally on the bonds or notes
or be subject to any personal liability or accountability by reason
of the issuance thereof.
(f) The authority shall have power out of any funds available
therefor to purchase its bonds or notes without the cancellation
thereof. The authority may hold, pledge, cancel, or resell bonds,
subject to, and in accordance with, agreements with bondholders.
SEC. 3. Section 44543 of the Health and Safety Code is amended to
read:
44543. (a) In the discretion of the authority, any bonds issued
under the provisions of this division may be secured by a trust
agreement by and between the authority and a trustee or trustees,
which may be any trust company or bank having the powers of a trust
company within or without the state. The trust agreement or the
resolution providing for the issuance of bonds may pledge or assign
the revenues to be received or proceeds of any contract or contracts
pledged and may convey or mortgage the project or projects, or any
portion thereof, to be financed out of the proceeds of bonds. The
trust agreement or resolution providing for the issuance of bonds may
contain provisions for protecting and enforcing the rights and
remedies of the bondholders, or any provider of credit enhancement,
as may be reasonable and proper and not in violation of law,
including particular provisions as have hereinabove been specifically
authorized to be included in any resolution or resolutions of the
authority authorizing bonds thereof. Any bank or trust company doing
business under the laws of this state that may act as depository of
the proceeds of bonds or of revenues or other moneys may furnish
these indemnifying bonds or pledge securities as may be required by
the authority. Any trust agreement may set forth the rights and
remedies of the bondholders and of the trustee or trustees, and may
restrict the individual right of action by bondholders or any
provider of credit enhancement. In addition to the foregoing, any
trust agreement or resolution may contain other provisions as the
authority may deem reasonable and proper for the security of the
bondholders. Notwithstanding any other law, the Treasurer shall not
be deemed to have a conflict of interest by reason of acting as
trustee pursuant to this division.
(b) All expenses incurred in carrying out the provisions of a
trust agreement or resolution may be treated as a part of the cost of
the operation of a project.
SEC. 4. Section 44553 of the Health and Safety Code is amended to
read:
44553. All moneys received pursuant to the provisions of this
division, whether as proceeds from the sale of bonds, notes, or other
evidences of indebtedness or as revenues, shall be deemed to be
trust funds to be held and applied solely as provided in this
division. Any bank or trust company with which these moneys shall be
deposited shall act as trustee of these moneys and shall hold and
apply the same for the purposes hereof, subject to regulations as the
resolution authorizing the bonds of any issue or the trust agreement
securing these bonds may provide.
SEC. 5. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to ensure the protection of the environment at the
earliest possible time, it is necessary that this act take effect
immediately.
