AB 117: Public resources.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2015-06-24
(1)Existing law establishes the Office of Statewide Health Planning and Development and sets forth its powers and duties, including, but not limited to, the administration of the California Health Facility Construction Loan Insurance Law for the purposes of insuring health facility construction loans. Existing law authorizes the office to make loans from the continuously appropriated Health Facility Construction Loan Insurance Fund to participating health facilities to finance or refinance the construction, improvement, or expansion of health facilities. Existing law requires that all debentures, as defined, issued under those provisions to any lender or bondholder be executed in the name of the fund as obligor, be signed by the Treasurer, and be negotiable. Existing law provides that in the event that the fund fails to pay the principal or interest on debentures issued, then the Treasurer is required to pay to the holders the amount entitled out of any money in the State Treasury not otherwise appropriated.
This bill would make those funds continuously appropriated from the General Fund, thereby making an appropriation. The bill would also require issued debentures to bear interest equal to the insured loan or bond, as specified, and would require the Treasurer to take appropriate steps to provide that interest on debentures be exempt from federal taxation, if tax exempt.
(2)The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
The Jobs and Economic Improvement Through Environmental Leadership Act of 2011 authorizes the Governor, until January 1, 2016, to certify projects meeting certain requirements for streamlining benefits provided by that act. The act provides that if a lead agency fails to approve a project certified by the Governor before January 1, 2016, then the certification expires and is no longer valid. The act requires a lead agency to prepare the record of proceedings for the certified project concurrent with the preparation of the environmental documents.
This bill would provide that the certification expires and is no longer valid if the lead agency fails to approve a certified project before January 1, 2017. Because the bill would extend the obligation of the lead agency to prepare concurrently the record of proceedings, this bill would impose a state-mandated local program.
(3)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(4)This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
(1)Existing law establishes the Office of Statewide Health Planning and Development and sets forth its powers and duties, including, but not limited to, the administration of the California Health Facility Construction Loan Insurance Law for the purposes of insuring health facility construction loans. Existing law authorizes the office to make loans from the continuously appropriated Health Facility Construction Loan Insurance Fund to participating health facilities to finance or refinance the construction, improvement, or expansion of health facilities. Existing law requires that all debentures, as defined, issued under those provisions to any lender or bondholder be executed in the name of the fund as obligor, be signed by the Treasurer, and be negotiable. Existing law provides that in the event that the fund fails to pay the principal or interest on debentures issued, then the Treasurer is required to pay to the holders the amount entitled out of any money in the State Treasury not otherwise appropriated.
This bill would make those funds continuously appropriated from the General Fund, thereby making an appropriation. The bill would also require issued debentures to bear interest equal to the insured loan or bond, as specified, and would require the Treasurer to take appropriate steps to provide that interest on debentures be exempt from federal taxation, if tax exempt.
(2)The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
The Jobs and Economic Improvement Through Environmental Leadership Act of 2011 authorizes the Governor, until January 1, 2016, to certify projects meeting certain requirements for streamlining benefits provided by that act. The act provides that if a lead agency fails to approve a project certified by the Governor before January 1, 2016, then the certification expires and is no longer valid. The act requires a lead agency to prepare the record of proceedings for the certified project concurrent with the preparation of the environmental documents.
This bill would provide that the certification expires and is no longer valid if the lead agency fails to approve a certified project before January 1, 2017. Because the bill would extend the obligation of the lead agency to prepare concurrently the record of proceedings, this bill would impose a state-mandated local program.
(3)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(4)This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
(1)Existing law establishes the Office of Statewide Health Planning and Development and sets forth its powers and duties, including, but not limited to, the administration of the California Health Facility Construction Loan Insurance Law for the purposes of insuring health facility construction loans. Existing law authorizes the office to make loans from the continuously appropriated Health Facility Construction Loan Insurance Fund to participating health facilities to finance or refinance the construction, improvement, or expansion of health facilities. Existing law requires that all debentures, as defined, issued under those provisions to any lender or bondholder be executed in the name of the fund as obligor, be signed by the Treasurer, and be negotiable. Existing law provides that in the event that the fund fails to pay the principal or interest on debentures issued, then the Treasurer is required to pay to the holders the amount entitled out of any money in the State Treasury not otherwise appropriated.
This bill would make those funds continuously appropriated from the General Fund, thereby making an appropriation. The bill would also require issued debentures to bear interest equal to the insured loan or bond, as specified, and would require the Treasurer to take appropriate steps to provide that interest on debentures be exempt from federal taxation, if tax exempt.
(2)The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
The Jobs and Economic Improvement Through Environmental Leadership Act of 2011 authorizes the Governor, until January 1, 2016, to certify projects meeting certain requirements for streamlining benefits provided by that act. The act provides that if a lead agency fails to approve a project certified by the Governor before January 1, 2016, then the certification expires and is no longer valid. The act requires a lead agency to prepare the record of proceedings for the certified project concurrent with the preparation of the environmental documents.
This bill would provide that the certification expires and is no longer valid if the lead agency fails to approve a certified project before January 1, 2017. Because the bill would extend the obligation of the lead agency to prepare concurrently the record of proceedings, this bill would impose a state-mandated local program.
(3)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(4)This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.
This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.
(a) (1)All debentures issued under this chapter to any lender or bondholder shall be executed in the name of the fund as obligor, shall be signed by the State Treasurer, and shall be negotiable. Pursuant to Sections 129125 and 129130, all debentures shall be dated as of the date of the institution of foreclosure proceedings or as of the date of the acquisition of the property after default by other than foreclosure, or as of another date as the office, in its discretion, may establish.
(2)The debentures shall bear interest from that date at a rate equal to the insured loan or bonds, and shall be payable on a payment schedule identical with payments on the insured loan or bonds. The State Treasurer shall take appropriate steps to the extent feasible to provide that interest on the debentures shall be exempt from federal income taxation under Section 103 of the Internal Revenue Code to the extent interest on the insured loan or bonds is exempt from federal income taxation under Section 103 of the Internal Revenue Code on the date the insured loan or bonds is exchanged for debentures. All debentures shall be exempt, both as to principal and interest, from all taxation now or hereafter imposed by the state or local taxing agencies, shall be paid out of the fund, which shall be primarily liable therefor, and shall be, pursuant to Section 4 of Article XVI of the California Constitution, fully and unconditionally guaranteed as to principal and interest by the State of California, which guaranty shall be expressed on the face of the debentures.
(3)In the event that the fund fails to pay upon demand, when due, the principal of, or interest on, any debentures issued under this chapter, the State Treasurer shall pay to the holders the amount thereof, which amount, notwithstanding Section 13340 of the Government Code, is hereby continuously appropriated from the General Fund of the State Treasury, without regard to fiscal years, and thereupon to the extent of the amount so paid the State Treasurer shall succeed to all the rights of the holders of the debentures. The fund shall be liable for repayment to the General Fund of the State Treasury of any money paid from the General Fund pursuant to this section in accordance with procedures jointly established by the State Treasurer and the office.
(b) Any debenture issued under this article shall be paid on a par with general obligation bonds issued by the state.
SEC. 2.Section 21189.1 of the Public Resources Code is amended to read:21189.1.If, prior to January 1, 2017, a lead agency fails to approve a project certified by the Governor pursuant to this chapter, then the certification expires and is no longer valid.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
SEC. 4.This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
(a) (1)All debentures issued under this chapter to any lender or bondholder shall be executed in the name of the fund as obligor, shall be signed by the State Treasurer, and shall be negotiable. Pursuant to Sections 129125 and 129130, all debentures shall be dated as of the date of the institution of foreclosure proceedings or as of the date of the acquisition of the property after default by other than foreclosure, or as of another date as the office, in its discretion, may establish.
(2)The debentures shall bear interest from that date at a rate equal to the insured loan or bonds, and shall be payable on a payment schedule identical with payments on the insured loan or bonds. The State Treasurer shall take appropriate steps to the extent feasible to provide that interest on the debentures shall be exempt from federal income taxation under Section 103 of the Internal Revenue Code to the extent interest on the insured loan or bonds is exempt from federal income taxation under Section 103 of the Internal Revenue Code on the date the insured loan or bonds is exchanged for debentures. All debentures shall be exempt, both as to principal and interest, from all taxation now or hereafter imposed by the state or local taxing agencies, shall be paid out of the fund, which shall be primarily liable therefor, and shall be, pursuant to Section 4 of Article XVI of the California Constitution, fully and unconditionally guaranteed as to principal and interest by the State of California, which guaranty shall be expressed on the face of the debentures.
(3)In the event that the fund fails to pay upon demand, when due, the principal of, or interest on, any debentures issued under this chapter, the State Treasurer shall pay to the holders the amount thereof, which amount, notwithstanding Section 13340 of the Government Code, is hereby continuously appropriated from the General Fund of the State Treasury, without regard to fiscal years, and thereupon to the extent of the amount so paid the State Treasurer shall succeed to all the rights of the holders of the debentures. The fund shall be liable for repayment to the General Fund of the State Treasury of any money paid from the General Fund pursuant to this section in accordance with procedures jointly established by the State Treasurer and the office.
(b) Any debenture issued under this article shall be paid on a par with general obligation bonds issued by the state.
SEC. 2.Section 21189.1 of the Public Resources Code is amended to read:21189.1.If, prior to January 1, 2017, a lead agency fails to approve a project certified by the Governor pursuant to this chapter, then the certification expires and is no longer valid.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
SEC. 4.This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
(a) (1)All debentures issued under this chapter to any lender or bondholder shall be executed in the name of the fund as obligor, shall be signed by the State Treasurer, and shall be negotiable. Pursuant to Sections 129125 and 129130, all debentures shall be dated as of the date of the institution of foreclosure proceedings or as of the date of the acquisition of the property after default by other than foreclosure, or as of another date as the office, in its discretion, may establish. The
(2)The debentures shall bear interest from that date at a rate approved by the State Treasurer, equal to either the rate applicable to the most recent issue of State General Fund bonds or that specified in Section 129130, which shall be payable on the dates as the office, in its discretion, may establish except in the case of bonds or other evidences of indebtedness as specified in Section 129130, and shall have the same maturity date as the loan which they insured equal to the insured loan or bonds, and shall be payable on a payment schedule identical with payments on the insured loan or bonds. The State Treasurer shall take appropriate steps to the extent feasible to provide that interest on the debentures shall be exempt from federal income taxation under Section 103 of the Internal Revenue Code to the extent interest on the insured loan or bonds is exempt from federal income taxation under Section 103 of the Internal Revenue Code on the date the insured loan or bonds is exchanged for debentures. All debentures shall be exempt, both as to principal and interest, from all taxation now or hereafter imposed by the state or local taxing agencies, shall be paid out of the fund, which shall be primarily liable therefor, and shall be, pursuant to Section 4 of Article XVI of the California Constitution, fully and unconditionally guaranteed as to principal and interest by the State of California, which guaranty shall be expressed on the face of the debentures. In
(3)In the event that the fund fails to pay upon demand, when due, the principal of, or interest on, any debentures issued under this chapter, the State Treasurer shall pay to the holders the amount thereof, which is authorized to be appropriated, out of any money in amount, notwithstanding Section 13340 of the Government Code, is hereby continuously appropriated from the General Fund of the Treasury not otherwise appropriated State Treasury, without regard to fiscal years, and thereupon to the extent of the amount so paid the State Treasurer shall succeed to all the rights of the holders of the debentures. The fund shall be liable for repayment to the General Fund of the State Treasury of any money paid therefrom from the General Fund pursuant to this section in accordance with procedures jointly established by the State Treasurer and the office.
(b) In the event of a default, any Any debenture issued under this article shall be paid on a par with general obligation bonds issued by the state.
SEC. 2.Section 21189.1 of the Public Resources Code is amended to read:21189.1.If, prior to January 1, 2016, 2017, a lead agency fails to approve a project certified by the Governor pursuant to this chapter, then the certification expires and is no longer valid.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
SEC. 4.This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
SECTION 1.It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.
It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.
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Date
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Status
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|---|---|
| Jun 16, 2015 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.R. |
| Jun 24, 2015 | Chaptered by Secretary of State - Chapter 16, Statutes of 2015. |
| Jun 24, 2015 | Approved by the Governor. |
| Jun 19, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 62. Noes 14. Page 2068.). |
| Jun 19, 2015 | Read third time. Passed. Ordered to the Assembly. (Ayes 23. Noes 13. Page 1507.). |
| Jun 19, 2015 | Read third time. Passed. Ordered to the Assembly. |
| Jun 19, 2015 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after June 23 pursuant to Assembly Rule 77. |
| Jun 19, 2015 | Enrolled and presented to the Governor at 3 p.m. |
| Jun 19, 2015 | Assembly Rule 77 suspended. |
| Jun 19, 2015 | Assembly Rule 63 suspended. (Page 2067.) |
| Jun 18, 2015 | Senate Rule 29 suspended. (Ayes 22. Noes 13. Page 1486.) |
| Jun 18, 2015 | Ordered to third reading. |
| Jun 18, 2015 | From committee: Do pass. (Ayes 11. Noes 4.) (June 18). |
| Jan 9, 2015 | Introduced. To print. |
| Jun 11, 2015 | In committee: Hearing postponed by committee. |
| Mar 23, 2015 | Referred to Com. on B. & F.R. |
| Mar 23, 2015 | Read third time. Passed. Ordered to the Senate. (Ayes 51. Noes 27. Page 642.) |
| Mar 23, 2015 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Mar 19, 2015 | Withdrawn from committee. |
| Mar 19, 2015 | Read second time. Ordered to third reading. |
| Mar 19, 2015 | Ordered to second reading. |
| Mar 19, 2015 | Assembly Rule 96 suspended. (Ayes 51. Noes 25. Page 611.) |
| Mar 19, 2015 | Assembly Rule 63 suspended. (Ayes 51. Noes 25. Page 611.) |
| Jan 16, 2015 | Referred to Com. on BUDGET. |
| Jan 12, 2015 | Read first time. |
| Jan 12, 2015 | From printer. May be heard in committee February 11. |
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Date
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Description
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Location
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Votes
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|
|---|---|---|---|---|
| Jun 19, 2015 | AB 117 BUDGET Concurrence in Senate Amendments By WEBER | Assembly Floor |
Passed |
|
| Jun 19, 2015 | Assembly 3rd Reading AB117 Committee On BUDGET (Weber) By Leno | Senate Floor |
Passed |
|
| Jun 19, 2015 | Assembly 3rd Reading AB117 Committee On BUDGET (Weber) Amend by Vidak Lay on Table | Senate Floor |
Passed |
|
| Jun 18, 2015 | Do pass | Senate Standing Committee on Budget and Fiscal Review |
Passed |
|
| Mar 23, 2015 | AB 117 BUDGET Assembly Third Reading By WEBER | Assembly Floor |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| Sierra Club | * Indeterminate | Jun 18, 2015 |
| State Building & Construction Trades Council Of California | * Indeterminate | Jun 18, 2015 |
AB 117
Page 1
(Without Reference to File)
CONCURRENCE IN SENATE AMENDMENTS
AB 117
(Committee on Budget)
As Amended June 16, 2015
Majority vote. Budget Bill Appropriation Takes Effect Immediately
ASSEMBLY: |
51-27 |
(March 23, 2015) |
SENATE: |
|
(June 19, 2015) |
(vote not relevant) (vote not available)
Original Committee Reference: BUDGET
SUMMARY: Includes a statutory provision related to general government necessary to enact the 2015 Budget Act. Specifically, this bill:
Aligns appropriation language contained in the Insurance Law related to debentures with language in the General Obligation (GO) bonds. This amendment would conform the Insurance Law with GO Bond acts to ensure that debentures are paid on a payable schedule identical to GO bonds.
Requires the State Treasurer to take appropriate steps to provide that interest on the debentures is exempt from the federal taxation.
Amends existing law that provides that in the event that the fund fails to pay the principal or interest on debentures issued, then the State Treasurer is required to pay out of money in the State Treasury to instead require the General Fund to pay the funds.
Provides a one-year extension for the Jobs and Economic Improvement Through Environmental Leadership Act of 2011 (Act). Under current law, the Act created an expedited judicial review procedures under the California Environmental Quality Act (CEQA) for various types of infill site projects, clean renewable energy projects, and clean energy manufacturing projects.
FISCAL EFFECT: Statutory changes contained in this bill related to state costs are consistent with the 2015-16 budget package.
COMMENTS: The trailer bill language is technical and ensures that debentures be paid on par with the State's General Obligation bonds. The proposed change was brought about when the Treasurer's Office was reviewing where the state could be vulnerable. The impact of the proposed amendment is limited to the California Health Facility Construction Loan Insurance Law contained in Health and Safety Code Sections 129000 through 129355. Additionally, the trailer bill language would provide a one year extension for the Act.
Analysis Prepared by: Genevieve Morelos / BUDGET / (916) 319-2099 FN: 0000991
AB 117
Page 2
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: AB 117
Amended: 6/16/15 in Senate
SENATE BUDGET & FISCAL REVIEW COMMITTEE: 11-4, 6/18/15
AYES: Leno, Nielsen, Allen, Beall, Block, Hancock, Monning, Pan, Pavley, Roth, Wolk
NOES: Anderson, Moorlach, Nguyen, Stone
NO VOTE RECORDED: Mitchell
ASSEMBLY FLOOR: Not relevant
DIGEST: This bill makes various statutory changes necessary to implement the state administration related provisions of the Budget Act of 2015.
ANALYSIS: This bill includes the following key changes:
Payments Made on Debentures. Aligns appropriation language contained in the Insurance Law related to debentures with language in the General Obligation (GO) bonds to ensure that debentures are paid off in a manner similar to GO bonds. States that payments from the General Fund are continuously appropriated.
Extension of the Jobs and Economic Improvement Through Environmental Leadership Act. Provides for a one year extension of an expedited process for California Environmental Quality Act judicial review. In order to be certified an investment of $100 million dollars in California upon completion of construction, creates high-wage, high-skilled jobs, and specified environmental standards. Prior to certification, the Governor must submit the project and his or her findings to the Joint Legislative Budget Committee for concurrent or non-concurrence.
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: Yes
SUPPORT: (Verified 6/18/15)
None received
OPPOSITION: (Verified 6/18/15)
Prepared by: Brady Van Engelen / B. & F.R. / (916) 651-4103
6/18/15 19:03:37
**** END ****
AB 117 (Committee on Budget) Page 2 of 2
SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
Senator Mark Leno, Chair
2015 - 2016 Regular
Bill No: AB 117 Hearing Date: June 18, 2015
Author: |
Committee on Budget |
||
Version: |
January 9, 2015 Introduced |
||
Urgency: |
No |
Fiscal: |
Yes |
Consultant: |
Brady Van Engelen |
||
Subject: Budget Act of 2015.
Summary:
This measure makes various statutory changes necessary to implement the state administration related provisions of the Budget Act of 2015.
Background:
As part of the 2015-16 budget package, AB 117 makes various statutory changes to implement the budget act.
Proposed Law:
This bill includes the following key changes:
Payments Made on Debentures. Aligns appropriation language contained in the Insurance Law related to debentures with language in the General Obligation (GO) bonds to ensure that debentures are paid off in a manner similar to GO bonds. States that payments from the General Fund are continuously appropriated.
Extension of the Jobs and Economic Improvement Through Environmental Leadership Act. Provides for a one year extension of an expedited process for CEQA judicial review. In order to be certified an investment of $100 million dollars in California upon completion of construction, creates high-wage, high-skilled jobs, and specified environmental standards. Prior to certification, the Governor must submit the project and his or her findings to the Joint Legislative Budget Committee for concurrent or non-concurrence.
Fiscal Effect:
This bill should not result in any changes to the budget act or related budget actions. The provision referencing payments made on debentures contains an appropriation and has been identified as related to the budget in the Budget Bill.
Support:
None on file.
Opposed:
None on file.
-- END --
Discussed in Hearing
17MIN
Senate Floor
13MIN
Assembly Floor
8MIN
Senate Standing Committee on Budget and Fiscal Review
Bill Author
Bill Co-Author(s):