Today's Law As Amended


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AB-1873 Solid waste: recycling market development.(2003-2004)



As Amends the Law Today


SECTION 1.

 Section 42023.1 of the Public Resources Code is amended to read:

42023.1.
 (a) The Recycling Market Development Revolving Loan Subaccount is hereby created in the account for the purpose of providing loans for purposes of the Recycling Market Development Revolving Loan Program established pursuant to this article and for making payments pursuant to subdivision (g). article. 
(b) Notwithstanding Section 13340 of the Government Code, the moneys funds  deposited into in  the subaccount are hereby continuously appropriated to the department board  without regard to fiscal year for making loans pursuant to this article and for making payments pursuant to subdivision (g). article. 
(c) The department board  may expend interest earnings on moneys funds  in the subaccount for administrative expenses incurred in carrying out the Recycling Market Development Revolving Loan Program, upon the appropriation of moneys funds  in the subaccount for that purpose in the annual Budget Act.
(d) The moneys money  from any  loan repayments and fees, including, but not limited to, principal and interest repayments, fees and points, recovery of collection costs, income earned on an any  asset recovered pursuant to a loan default, and funds collected through foreclosure actions actions,  shall be deposited into in  the subaccount.
(e) All interest accruing on interest payments from loan applicants shall be deposited into in  the subaccount.
(f) The department board  may expend the moneys money  in the subaccount to make loans to local governing bodies, private businesses, and nonprofit entities within recycling market development zones, or in areas outside zones where making the loan will benefit a local jurisdiction or assist a local jurisdiction in complying partnerships exist with other public entities to assist local jurisdictions to comply  with Section 40051.
(g) The department may expend the moneys in the subaccount to make payments to local governing bodies within a recycling market zone for services related to the promotion of the zone. The services may include, but are not limited to, training, outreach, development of written promotional materials, and technical analyses of feedstock availability.
(h) The department shall not fund a loan until it determines that the applicant has obtained all significant applicable federal, state, and local permits. The department shall determine which applicable federal, state, and local permits are significant.
(i) (g)  The department board  shall establish and collect fees for applications for loans authorized by this section. The application fee shall be set at a level that is sufficient to fund the department’s board’s  cost of processing applications for loans. In addition, the department board  shall establish a schedule of fees fees,  or points points,  for loans that which  are entered into by the department, board,  to fund the department’s board’s  administration of the revolving loan program.
(j) (h)  The department board  may expend moneys money  in the subaccount for the administration of the Recycling Market Development Revolving Loan Program, upon the appropriation of moneys funds  in the subaccount for that purpose in the annual Budget Act. In addition, the department board  may expend moneys money  in the account to administer the revolving loan program, upon the appropriation of moneys funds  in the account subaccount  for that purpose in the annual Budget Act. However, funding for the administration of the revolving loan program from the account shall be provided only if there are not sufficient moneys funds  in the subaccount to fully fund the administration of the program.
(k) (i)  The department, board,  pursuant to subdivision (a) of Section 47901, may set aside moneys funds  for the purposes of paying costs necessary to protect the state’s position as a lender-creditor. These costs shall be broadly construed to include, but not be limited to, foreclosure expenses, auction fees, title searches, appraisals, real estate brokerage fees, attorney’s attorney  fees, mortgage payments, insurance payments, utility costs, repair costs, removal and storage costs for repossessed equipment and inventory, and additional expenditures to purchase a senior lien in foreclosure or bankruptcy proceedings.
(l) (j)  (1) Except as provided in paragraph (2), this section shall become inoperative on July 1, 2031, 2011,  and as of January 1, 2032, 2012,  is repealed, unless a later enacted statute, which becomes effective on or before January 1, 2032, 2012,  deletes or extends the date dates  on which it becomes inoperative and is repealed.
(2) The repeal of this section pursuant to paragraph (1) shall not extinguish any loan obligation or the authority of the state to pursue appropriate actions for the collection of a loan.

SEC. 2.

 Section 42023.2 of the Public Resources Code is amended to read:

42023.2.
 (a) Upon authorization by the Legislature in the annual Budget Act, the Controller shall transfer a sum, as available,  sum not to exceed five million dollars ($5,000,000)  from the account to the subaccount as necessary to meet anticipated loan demand under the program. Those amounts shall be a loan to the subaccount, repayable with interest to the account at the rate of return for money in the Surplus Money Investment Fund. 
(b) (1) Except as provided in paragraph (2), this section shall become inoperative on July 1, 2031, 2011,  and as of January 1, 2032, 2012,  is repealed, unless a later enacted statute, which becomes effective on or before January 1, 2032, 2012,  deletes or extends the date dates  on which it becomes inoperative and is repealed.
(2) (A)  The repeal of this section pursuant to paragraph (1) shall not extinguish any loan obligation or the authority of the state to pursue appropriate actions for the collection of a loan.
(B) The department shall not be obligated to pay interest on the amount appropriated from the account to the subaccount pursuant to subdivision (a). This subparagraph shall apply retroactively from January 1, 1992.

SEC. 3.

 Section 42023.3 of the Public Resources Code is amended to read:

42023.3.
 (a) All money remaining in the subaccount on July 1, 2031, 2011,  and all money received as repayment and interest on loans shall, as of July 1, 2031, 2011,  be transferred to the account and any money due and outstanding on loans as of July 1, 2031, 2011,  shall be repaid to the department board  and deposited by the department board  in the account until paid in full, except that, upon authorization by the Legislature in the annual Budget Act, interest earnings may be expended for administrative costs associated with the collection of outstanding loan accounts.
(b) (1) Except as provided in paragraph (2), this section shall become inoperative on July 1, 2031, 2011,  and as of January 1, 2032, 2012,  is repealed, unless a later enacted statute, which becomes effective on or before January 1, 2032, 2012,  deletes or extends the dates on which it becomes inoperative and is repealed.
(2) The repeal of this section pursuant to paragraph (1) shall not extinguish any loan obligation or the authority of the state to pursue appropriate actions for the collection of a loan.

SEC. 4.

 Section 42023.4 of the Public Resources Code is amended to read:

42023.4.
 (a) A loan  Loans  made pursuant to Section 42023.1 shall be subject to all of the following requirements:
(1) The terms of an any  approved loan shall be specified in a loan agreement between the borrower and the department. board.  The loan agreement shall include a requirement that the failure to comply with the agreement shall result in any remaining unpaid amount of the loan, with accrued interest, being immediately due and payable. Notwithstanding any term of the agreement, a any  recipient of a loan that the department board  approves shall repay the principal amount, plus interest. The department shall establish the loan interest rate as low as possible to make projects feasible and post the interest rate on its internet website. All  interest on the basis of the rate of return for money in the Surplus Money Investment Fund at the time of the loan commitment. Except as provided in subdivision (a) of Section 42023.3, all  money received as repayment and interest on loans made pursuant to this section shall be deposited in the subaccount.
(2) The term of any loan made pursuant to this section shall be not more than 10 years when collateralized by assets other than real estate, or not more than 15 years when partially or wholly collateralized by real estate.
(2) (3)  The department board  shall approve only those loan applications that demonstrate the applicant’s ability to repay the loan. The highest priority for funding shall be given to projects which demonstrate that the project will increase market demand for recycling the project’s type of postconsumer waste material. 
(3) Priority for funding shall be given to projects for circular recycling programs that result in the product being recycled into a product that is also recyclable, as determined by the department, or that has a minimum lifespan of 10 or more years. The department shall establish project eligibility criteria and make it available to the public in order to achieve the intent of the Legislature.
(4) A loan The board  shall not be provided for a project that will result in the production of fuels or energy through transformation, engineered municipal solid waste conversion, or other disposal activities. finance not more than three-fourths of the cost of each project, or not more than two million dollars ($2,000,000) for each project, whichever is less. 
(5) The Department of Finance may audit the expenditure of the proceeds of a any  loan made pursuant to Section 42023.1 and this section.
(b) (1) Except as provided in paragraph (2), this section shall become inoperative on July 1, 2031, 2011,  and as of January 1, 2032, 2012,  is repealed, unless a later enacted statute, which becomes effective on or before January 1, 2032, 2012,  deletes or extends the dates on which it becomes inoperative and is repealed.
(2) The repeal of this section pursuant to paragraph (1) shall not extinguish any loan obligation or the authority of the state to pursue appropriate actions for the collection of a loan.

SEC. 5.

 Section 42023.5 of the Public Resources Code is amended to read:

42023.5.
 (a) The department board  shall, as part of the annual report to the Legislature, pursuant to Section 40507, include a report on the performance of the Recycling Market Development Revolving Loan Program, including the number and size of loans made, characteristics of loan recipients, projected loan demand, and the cost of administering the program.
(b) This section shall become inoperative on July 1, 2031, 2011,  and as of January 1, 2032, 2012,  is repealed, unless a later enacted statute, which becomes effective on or before January 1, 2032, 2012,  deletes or extends the date dates  on which it becomes inoperative and is repealed.

SEC. 6.

 Section 42023.6 of the Public Resources Code is amended to read:

42023.6.
 (a) The department board  shall encourage applicants to seek participation from private financial institutions or other public agencies. For purposes of enabling the department board  and local agencies to comply with Sections 40051 and 41780, the department board  may participate, in an amount not to exceed five hundred thousand dollars ($500,000), in the Capital Access Loan Program as provided in Article 8 (commencing with Section 44559) of Chapter 1 of Division 27 of the Health and Safety Code.
(b) For purposes of participating in the Capital Access Loan Program, as specified in subdivision (a), or in a any  program that leverages subaccount funds, the department board  may operate both inside and outside the recycling market development zones.
(c) (1) Except as provided in paragraph (2), this section shall become inoperative on July 1, 2031, 2011,  and as of January 1, 2032, 2012,  is repealed, unless a later enacted statute, which becomes effective on or before January 1, 2032, 2012,  deletes or extends the date dates  on which it becomes inoperative and is repealed.
(2) The repeal of this section pursuant to paragraph (1) shall not extinguish any loan obligation or the authority of the state to pursue appropriate actions for the collection of a loan.