HomeMy WebLinkAboutCity Council positions on legislation pending before the Sta (11) f'PAc VEt 7-0
City of Huntington Beach
File #: 19-543 MEETING DATE: 5/6/2019
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Antonia Graham, Assistant to the City Manager
Subject:
City Council positions on legislation pending before the State Legislature and Regional
Issues as recommended by the City Council Intergovernmental Relations Committee (IRC)
Statement of Issue:
On April 25, 2019, the Intergovernmental Relations Committee comprised of Mayor Erik Peterson,
Mayor Pro Tern Lyn Semeta, and Council Member Jill Hardy met to discuss pending State legislation
and regional issues. This Council Action requests City Council authorization to enable the Mayor to
sign official City position letters.
Financial Impact:
There is no fiscal impact associated with these position letters.
Recommended Action:
A) Approve a City position of Oppose on Assembly Bill 143 (Quirk-Silva) - Shelter Crisis: Homeless
Shelters County of Orange; and,
B) Approve a City position of Oppose on Assembly Bill 217 (Garcia) - Safe Drinking Water for All Act;
and,
C) Approve a City position of Support on Assembly Bill 919 (Petrie-Norris) - Alcoholism and Drug
Abuse Recovery Treatment Program; and,
D) Approve a City position of Support in Concept on Assembly Bill 920 (Petrie-Norris) - Alcoholism
and Drug Abuse Recovery Treatment Program; and,
E) Approve a City position of Support on Assembly Bill 1583 (Eggman) - The California Recycling
Market Development Zone Act; and,
F) Approve a City position of Support for Alternative 3 - John Wayne Airport's General Aviation
Improvement Program.
City of Huntington Beach Page 1 of 4 Printed on 5/1/2019
powere?3 y Legistar-'
File #: 19-543 MEETING DATE: 5/6/2019
Alternative Action(s):
Do not approve the recommended actions and direct staff accordingly.
Analysis:
The Intergovernmental Relations Committee (IRC) met to discuss pending State legislation along
with regional issues. The Committee reviewed the 2019 State Legislative Matrix provided by the
City's Federal and State Advocate Townsend Public Affairs. The following is an analysis of the bills
that the Committee chose to take the following positions on:
➢ Oppose Assembly Bill 143 (Quirk-Silva) - Shelter Crisis: Homeless Shelters Orange
County
Existing law authorizes the governing body of a local government entity, to declare a shelter
crisis if the governing body makes a specified finding. Upon declaration of a shelter crisis,
existing law, among other things, suspends certain state and local laws, regulations, and
ordinances to the extent that strict compliance would prevent, hinder, or delay the mitigation of
the effects of the shelter crisis. This bill would apply these additional provisions to a shelter
crisis to the County of Orange, and any city located within the County of Orange. Existing law
exempts from the California Environmental Quality Act (CEQA) specified actions by a city
relating to land owned by a local government to be used for, or to provide financial assistance
to, a homeless shelter constructed pursuant to these provisions. This bill would apply these
provisions to a shelter crisis declared by the County of Orange and any city located within the
County.
➢ Oppose Assembly Bill 217 (Garcia) - Safe Drinking Water for All Act
Existing law (the California Safe Drinking Water Act) requires the State Water Resources
Control Board to administer provisions relating to the regulation of drinking water to protect
public health. This bill would enact the Safe Drinking Water for All Act and would establish the
Safe and Affordable Drinking Water Fund in the State Treasury and would provide that moneys
in the fund are continuously appropriated to the Board to provide a source of funding to secure
access to safe drinking water for all Californians, while also ensuring the long-term
sustainability of drinking water service and infrastructure. To fund this program, this bill would
establish a safe and affordable drinking water fee in the amount of $0.50 per service
connection on all public water systems. The bill would require each public water system to
remit to the Boa4rd the amount of the fee for their public water system on July 1, 2020 and by
July 1 annually thereafter.
➢ Support Assembly Bill 919 (Petrie-Norris) - Alcoholism and Drug Abuse Recovery
Treatment Programs
Existing law provides for the licensure and regulation of adult alcoholism or drug abuse
recovery or treatment facilities by the State Department of Health Care Services and
authorizes the department to enforce those provisions. This bill would require the department
to establish an enforcement program focused on the duties to enforce those provisions, and
would require staff of the enforcement program to provide the department with analytical
support, general oversight and monitoring, and legal guidance regarding those provisions.
City of Huntington Beach Page 2 of 4 Printed on 5/1/2019
powereZ v Legistar-'
File #: 19-543 MEETING DATE: 5/6/2019
➢ Support in Concept Assembly Bill 920 (Petrie-Norris) - Alcoholism and Drug Abuse
Recover Treatment Programs
Existing law provides for the licensure and regulation of adult alcoholism or drug abuse
recovery or treatment facilities by the State Department of Health Care Services and
authorizes the department to enforce those provisions. Existing law requires an alcoholism or
drug abuse recovery or treatment facilities that serves 6 or fewer persons to be considered a
residential use of property and requires that the residents and operators of the facility be
considered a family for the purposes of any law or zoning ordinance that relates to the
residential use of property. This bill would exempt from those provisions an alcoholism or drug
abuse recovery or treatment facility that serves 6 or fewer persons that is engaged in an
economic relationship with a treatment provider that owns or operates two or more of this type
of facility.
➢ Support Assembly Bill 1583 (Eggman) - The California Recycling Market Development
Act
The United States recycling infrastructure has, for too long relied on overseas markets, and
these counties are beginning to adopt policies that limit the import of foreign waste. This bill
would reauthorize existing, and would create new recycling infrastructure development
programs, including sales tax exemptions, low interest loans, and new incentive payment
programs. As the Administrator of the Recycling Market Development Zone for Orange
County this would enable the City and the member jurisdictions the ability to continue to offer
incentives to companies/manufacturers that utilize secondary feedstock (aka recyclable
materials) in their manufacturing process.
All of the aforementioned bills with the exception of AB 1583 received unanimous votes. Mayor
Peterson stated a "No" vote on AB 1583.
In addition to reviewing the State Legislative Matrix, the Committee discussed the Jet Noise
Commission and their request to send a letter to the Orange County Board of Supervisors in support
of the John Wayne Airport's General Aviation Improvement Program - Alternative 3. The General
Aviation Improvement Program (GAIP) provides a framework for General Aviation improvements at
John Wayne Airport. The County of Orange operates John Wayne Airport and is seeking to expand
the operations of its Fixed-Base Operators (FBOs) - private businesses granted the right by the
airport to operate on airport property and provide aeronautical services such as fueling, storage,
parking, tie downs, aircraft maintenance, flight instruction, and aircraft rental. According to the
County of Orange, the General Aviation (GA) services and facilities were last studied in the 1990s.
Since then, there have been changes to the airport's GA fleet, their facilities are aging, these facilities
need to comply with Federal Aviation Administration (FAA) requirements related to the proximity of
buildings to taxiways and runways, and the number of GA leases have expired or are nearing
expiration. The County drafted a Programmatic EIR on the GAIP. There are currently three
alternatives to the proposed project. This Alternative is the least impactful for the community and will
allow for the updating of the airport's GA facilities to current FAA standards, would not expand GA
facilities at the FBOs, nor would it significantly alter the airport's current mix of GA aircraft that are
based at the airport. It would also result in the least amount of GA jet operations by the year 2026.
City of Huntington Beach Page 3 of 4 Printed on 5/1/2019
powere33 -Legistar P
File #: 19-543 MEETING DATE: 5/6/2019
The Jet Noise Commission reviewed the GAIP and the alternatives and is in concurrence with the
City of Newport Beach who has issued a letter in support of Alternative 3 (Attachment 7). The Jet
Noise Commission Chair has submitted a letter requesting that the City Council authorize the Mayor
to send a letter to the Chairwoman of the Orange County Board of Supervisors in support of
Alternative 3.
Environmental Status:
Not Applicable
Strategic Plan Goal:
Non-Applicable - Administrative Item
Attachment(s):
1. Assembly Bill 143
2. Assembly Bill 217
3. Assembly Bill 919
4. Assembly Bill 920
5. Assembly Bill 1583
6. Memo from Jet Noise Commission Chair, Phil Burtis
•
7. City of Newport Beach GAIP Letter
City of Huntington Beach Page 4 of 4 Printed on 5/1/2019
powere2a4 Legistar"
ATTACHMENT # 1
AMENDED IN ASSEMBLY APRIL 10, 2019
AMENDED IN ASSEMBLY MARCH 11, 2019
CALIFORNIA LEGISLATURE-2019-20 REGULAR SESSION
ASSEMBLY BILL No. 143
Introduced by Assembly Members Quirk-Silva,Daly, and Kalra
(Principal coauthor: Senator Beall)
(Coauthors: Assembly Members Chu and Diep)
(Coauthors: Senators Archuleta and Chang)
December 13, 2018
An act to amend Section 8698.4 of the Government Code, relating
to housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 143, as amended, Quirk-Silva. Shelter crisis: homeless shelters:
County of Orange.
Existing law authorizes—a the governing body of a political
subdivision, as those teluis are defined,to declare a shelter crisis if the
governing body makes a specified finding.Upon declaration of a shelter
crisis, existing law,among other things, suspends certain state and local
laws, regulations, and ordinances to the extent that strict compliance
would prevent,hinder,or delay the mitigation of the effects of the shelter
crisis.
Existing law, upon a declaration of a shelter crisis by the City of
Berkeley,Emeryville,Los Angeles,Oakland,or San Diego,the County
of Santa Clara, or the City and County of San Francisco, specifies
additional provisions applicable to a shelter crisis declared by one of
those jurisdictions.Among other things, existing law exempts from the
California Environmental Quality Act specified actions by a state agency
97
240
AB 143 —t—
or a city, county, or city and county relating to land owned by a local
government to be used for, or to provide financial assistance to, a
homeless shelter constructed pursuant to these provisions.Existing law
requires a city, county, or city and county that declares a shelter crisis
pursuant to these provisions to develop a plan to address the shelter
crisis on or before July 1, 2019, and to annually report to specified
committees of the Legislature on or before January 1,2019,and annually
thereafter until January 1, 2021. Existing law repeals these additional
provisions as of January 1, 2021.
This bill would apply these additional provisions to a shelter crisis
declared by the County of Alameda, the County of Orange, any city
located within the County of Orange, and the City of San Jose and
extend the above-described repeal date of thcsc provisions to January
1, 2023. By expanding the scope of these provisions to apply within
the County ofAlemeda, the County of Orange Orange, and the City of
San Jose, the bill would expand the above-described exemption from
the California Environmental Quality Act. The bill, with respect to a
shelter crisis declared by the County ofAlameda, the County of Orange,
or a city located within the County of Orange, or the City of San Jose,
would require the county or city, as applicable, to develop the
above-described shelter plan on or before July 1, 2020, and provide the
first above-described annual report on or before January 1 of the year
following the declaration of a shelter crisis.
This bill would make legislative findings and declarations as to the
necessity of a special statute for the County ofAlameda, the County of
Orange Orange, and the City of San Jose.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Section 8698.4 of the Government Code, as
2 amended by Chapter 840 of the Statutes of 2018, is amended to
3 read:
4 8698.4. (a) Notwithstanding any other provision in this chapter,
5 upon a declaration of a shelter crisis by a local jurisdiction specified
6 in subdivision(c), the following shall apply to the respective city,
7 county, or city and county during a shelter crisis:
8 (1) Emergency housing may include homeless shelters for the
9 homeless located or constructed on any land owned or leased by
97
241
-3— AB 143
1 a city, county, or city and county, including land acquired with
2 low- and moderate-income housing funds.
3 (2) (A) (i) The city, county, or city and county, in lieu of
4 compliance with local building approval procedures or state
5 housing, health, habitability, planning and zoning, or safety
6 standards, procedures, and laws, may adopt by ordinance
7 reasonable local standards and procedures for the design, site
8 development,and operation of homeless shelters and the structures
9 and facilities therein,to the extent that it is determined at the time
10 of adoption that strict compliance with state and local standards
11 or laws in existence at the time of that adoption would in any way
12 prevent,hinder, or delay the mitigation of the effects of the shelter
13 crisis. The Department of Housing and Community Development
14 shall review and approve the city's, county's, or city and county's
15 draft ordinance to ensure it addresses minimum health and safety
16 standards. The department shall, as set forth in Section 9795,
17 provide its findings to the Senate Committee on Transportation
18 and Housing and the Assembly Committee on Housing and
19 Community Development within 30 calendar days of receiving
20 the draft ordinance.
21 (ii) During the shelter crisis, except as provided in this section,
22 provisions of any housing,health,habitability,planning and zoning,
23 or safety standards, procedures, or laws shall be suspended for
24 homeless shelters,provided that the city,county,or city and county
25 has adopted health and safety standards and procedures for
26 homeless shelters consistent with ensuring minimal public health •
27 and safety and those standards are complied with.Landlord tenant
28 laws codified in Sections 1941 to 1942.5, inclusive, of the Civil
29 Code providing a cause of action for habitability or tenantability
30 shall be suspended for homeless shelters, provided that the city,
31 county,or city and county has adopted health and safety standards
32 for homeless shelters and those standards are complied with.
33 During the shelter crisis, the local and state law requirements for
34 homeless shelters to be consistent with the local land use plans,
35 including the general plan, shall be suspended.
36 (B) This section applies only to a public facility or homeless
37 shelters reserved entirely for the homeless pursuant to this chapter.
38 (3) Homeless shelters constructed or allowed under this chapter
39 shall not be subject to the Special Occupancy Parks Act(Part 2.3
40 (commencing with Section 18860) of Division 13 of the Health
97
242
AB 143 —4—
1 and Safety Code), the Mobilehome Parks Act (Part 2.1
2 (commencing with Section 18200) of Division 13 of the Health
3 and Safety Code), or the Mobilehome Residency Law (Chapter
4 2.5 (commencing with Section 798)of Title 2 of Part 2 of Division
5 2 of the Civil Code).
6 (4) The California Environmental Quality Act (Division 13
7 (commencing with Section 21000)of the Public Resources Code)
8 shall not apply to actions taken by a state agency or a city, county,
9 or city and county, to lease, convey, or encumber land owned by
10 a city, county, or city and county, or to facilitate the lease,
11 conveyance, or encumbrance of land owned by the local
12 government for, or to provide financial assistance to, a homeless
13 shelter constructed or allowed by this section.
14 (5) (A) Except as provided in subparagraph (B), on or before
15 July 1, 2019, the city, county, or city and county shall develop a
16 plan to address the shelter crisis, including, but not limited to, the
17 development of homeless shelters and permanent supportive
18 housing, as well as onsite supportive services. The city, county,
19 or city and county shall make the plan publicly available.
20 (B) Notwithstanding subparagraph (A), in the case of a shelter
21 crisis declared by the County of Alameda, the County of Orange,
22 a city located within the County of Orange,or the City of San Jose,
23 the county or the city,as applicable,shall develop the plan required
24 by this paragraph on or before July 1, 2020.
25 (6) (A) Except as provided in subparagraph (B), on or before
26 January 1, 2019, and annually thereafter until January 1, 2023, if
27 the city, county, or city and county has declared a shelter crisis,
28 the city,county,or city and county shall report all of the following
29 to the Senate Committee on Transportation and Housing and the
30 Assembly Committee on Housing and Community Development:
31 (i) The total number of residents in homeless shelters within
32 the city, county, or city and county.
33 (ii) The total number of residents who have moved from a
34 homeless shelter into permanent supportive housing within the
35 city, county, or city and county.
36 (iii) The estimated number of permanent supportive housing
37 units.
38 (iv) The number of residents who have exited the system and
39 are no longer in need of a homeless shelter or permanent supportive
40 housing within the city, county, or city and county.
97
243
-5— AB 143
1 (v) The number of new homeless shelters built pursuant to this
2 section within the city, county, or city and county.
3 (vi) New actions the city, county, or city and county is taking
4 under the declared shelter crisis to better serve the homeless
5 population and to reduce the number of people experiencing
6 homelessness.
7 (B) Notwithstanding subparagraph (A), in the case of a shelter
8 crisis declared by the County of Alameda, the County of Orange,
9 a city located within the County of Orange,or the City of San Jose,
10 the county or the city, as applicable, shall provide the first report
11 required by this paragraph on or before January 1 of the year
12 following the declaration of a shelter crisis.
13 (b) For purposes of this section, the following terms have the
14 following meanings:
15 (1) "Homeless shelter"means a facility with overnight sleeping
16 accommodations, the primary purpose of which is to provide
17 temporary shelter for the homeless that is not in existence after
18 the declared shelter crisis. A temporary homeless shelter
19 community may include supportive and self-sufficiency
20 development services.
21 (2) "Permanent supportive housing" means housing for people
22 who are homeless,with no limit on length of stay,and that is linked
23 to onsite or offsite services that assist the supportive housing
24 resident in retaining the housing, improving the person's health
25 status, and maximizing the person's ability to live and, when
26 possible, work in the community.
27 (c) This section shall apply to a shelter crisis declared by any
28 of the following jurisdictions:
29 (1) The following cities:
30 (A) The City of Berkeley.
31 (B) The City of Emeryville.
32 (C) The City of Los Angeles.
33 (D) The City of Oakland.
34 (E) The City of San Diego.
35 (F) The City of San Jose.
36 (G) Any city located within the County of Orange.
37 (2) The following counties:
38 (A) The County of Alameda.
39 { j
40 (B) The County of Orange.
97
244
AB 143 —6-
1 (13)
2 (C) The County of Santa Clara.
3 (3) The City and County of San Francisco.
4 (d) This section shall remain in effect only until January 1,2023,
5 and as of that date is repealed.
6 SEC.2. The Legislature finds and declares that a special statute
7 is necessary and that a general statute cannot be made applicable
8 within the meaning of Section 16 of Article IV of the California
9 Constitution because of the unique need to address the problem
10 of homelessness in the County of Alameda, the County of Orange
11 Orange, and the City of San Jose.
0
97
245
ATTACHMENT #2
AMENDED IN ASSEMBLY MARCH 28, 2019
AMENDED IN ASSEMBLY MARCH 19, 2019
CALIFORNIA LEGISLATURE-2019-20 REGULAR SESSION
ASSEMBLY BILL No. 217
Introduced by Assembly Member Eduardo Garcia
(Principal coauthor:Assembly Member Blanca Rubio)
(Coauthors: Assembly Members Bonta, Bloom, Carrillo, Chau,
Chiu, Gipson, Holden, Quirk, Robert Rivas, Mark Stone, and
Wicks)
(Coauthor: Senator Monning)
January 16, 2019
An act to add Article 10.5 (commencing with Section 595)to Chapter
3 of Part 1 of Division 1 of,to add Article 6.5 (commencing with Section
14615) to Chapter 5 of Division 7 of, and to add Article 14.5
(commencing with Section 62215) to Chapter 2 of Part 3 of Division
21 of, the Food and Agricultural Code, and to add Chapter 4.6
(commencing with Section 116765) to Part 12 of Division 104 of, to
add Chapter 4.7 (commencing with Section 116774) to Part 12 of
Division 104 of, and to repeal Article 5 (commencing with Section
116771) of Chapter 4.6 of Part 12 of Division 104 of, the Health and
Safety Code, relating to water, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 217, as amended, Eduardo Garcia. Safe Drinking Water for All
Act.
(1) Existing law, the California Safe Drinking Water Act, requires
the State Water Resources Control Board to administer provisions
relating to the regulation of drinking water to protect public health.
97
246
AB 217 —2—
Existing law declares it to be the established policy of the state that
every human being has the right to safe,clean,affordable,and accessible
water adequate for human consumption,cooking,and sanitary purposes.
This bill would enact the Safe Drinking Water for All Act and would
establish the Safe and Affordable Drinking Water Fund in the State
Treasury and would provide that moneys in the fund are continuously
appropriated to the board to provide a source of funding to secure access
to safe drinking water for all Californians, while also ensuring the
long-term sustainability of drinking water service and infrastructure.
The bill would authorize the board to provide for the deposit into the
fund of federal contributions,voluntary contributions,gifts,grants,and
bequests. The bill would require the board to expend moneys in the
fund for grants,loans, contracts, or services to assist eligible applicants
with certain projects. The bill would require the board,working with a
multistakeholder advisory group, to adopt a fund implementation plan
and policy handbook with priorities and guidelines for expenditures of
the fund.The bill would require the board annually to prepare and make
available a report of expenditures from the fund.The bill would require
the board to adopt annually, after a public hearing, an assessment of
funding need that estimates the anticipated funding needed for the next
fiscal year to achieve the purposes of the fund.The bill would authorize
the board to distribute the funds through its drinking water regional
offices in an unspecified manner and would prohibit the board from
distributing more than 20% of the annual expenditures from the fund
in this manner. By creating a new continuously appropriated fund,this
bill would make an appropriation.
This bill would require the board to adopt a schedule of fccs, as
prescribed, not to exceed an unspecified amount. establish a safe and
affordable drinking water fee in the amount of $0.50 per service
connection on all public water systems. The bill would require each
public water system to remit to the board the amount of the fee for their
public water system on July 1, 2020, and by July 1 annually thereafter.
The bill would require these fees to be deposited into the fund. The bill
would require the Legislative Analyst to report to the Legislature and
the board if the Legislative Analyst determines, on or before January
1, 2023, that at least $3,000,000,000 has been made available in an
interest bearing account in the State Treasury with a goal of at least
$100,000,000 in interest revenues per year available for the purposes
of the Safe and Affordable Drinking Water Fund. The bill would make
this reporting requirement and the requirement for the board to adopt
97
247
—3— AB 217
fees inoperative upon the Legislative Analyst submitting the report,and
would repeal them as of January 1, of the year following that
determination.
The bill would establish the Safe and Affordable Drinking Water
Trust Fund and would require moneys held in the trust fund to be
invested by the Treasurer, in consultation with the Director of Finance
and the controller, as specified. The bill would transfer the investment
income derived from the trust fund on January 1 of each year to the
Safe and Affordable Drinking Water Fund. The bill would state that a
transfer of$200,000,000 is to be made by the Legislature each year for
5 years for the purpose of establishing a $1,000,000,000 trust account
to derive interest revenues to fund the Safe and Affordable Drinking
Water Fund.
The bill would require,by January 1,2021,the board,in consultation
with local health officers and other relevant stakeholders, to make
available a map of aquifers that are used or likely to be used as a source
of drinking water that are at high risk of containing contaminants. For
purposes of the map, the bill would require local health officers and
other relevant local agencies to provide all results of,and data associated
with, water quality testing perfoiiued by certified laboratories to the
board, as specified. By imposing additional duties on local health
officers and local agencies, the bill would impose a state-mandated
local program.
(2) Existing law requires every person who manufactures or
distributes fertilizing materials to be licensed by the Secretary of Food
and Agriculture and to pay a license fee that does not exceed $300.
Existing law requires every lot,parcel,or package of fertilizing material
to have a label attached to it, as required by the secretary. Existing law
requires a licensee who sells or distributes bulk fertilizing materials to
pay to the secretary an assessment not to exceed $0.002 per dollar of
sales for all sales of fertilizing materials,as prescribed,for the purposes
of the administration and enforcement of provisions relating to fertilizing
materials. In addition to that assessment, existing law authorizes the
secretary to impose an assessment in an amount not to exceed $0.001
per dollar of sales for all sales of fertilizing materials for the purpose
of providing funding for research and education regarding the use of
fertilizing materials. Existing law specifies that a violation of the
fertilizing material laws or the regulations adopted pursuant to those
laws is a misdemeanor.
97
248
AB 217 —4—
This bill would require a licensee whose name appears on the label
of bulk or packaged fertilizing materials materials, excluding compost,
to pay to the secretary a fertilizer safe drinking water fee of$0.006 per
$1.00 of sales for all sales of fertilizing materials.The bill would require
these moneys to be deposited into the Safe and Affordable Drinking
Water Fund.The bill would authorize the secretary to adopt regulations
relating to the administration and enforcement of these provisions.
Because a violation of these provisions or regulations adopted pursuant
to these provisions would be a crime, the bill would impose a
state-mandated local program.
(3) Existing law regulates the production, handling, and marketing
of milk and dairy products and requires every milk handler subject to
that regulatory scheme to pay specified assessments and fees to the
Secretary of Food and Agriculture to cover the costs of regulating milk.
Existing law governing milk defines"handler"as any person who,either
directly or indirectly, receives, purchases, or otherwise acquires
ownership, possession, or control of market milk from a producer, a
producer-handler, or another handler for the purpose of manufacture,
processing, sale, or other handling. Existing law defines "market milk"
as milk conforming to specified standards and "manufacturing milk"
as milk that does not conform to the requirements of market milk.
Existing law provides that a violation of that regulatory scheme or a
regulation adopted pursuant to that regulatory scheme is a misdemeanor.
This bill would require, beginning January 1, 2022, each handler to
deduct from payments made to producers for market and manufacturing
milk the sum of$0.01355 per hundredweight of milk as a dairy safe
drinking water fee.The bill would require the secretary to deposit these
moneys into the Safe and Affordable Drinking Water Fund. The bill
would authorize the secretary to take specified enforcement actions and
would require the secretary to adopt regulations for the administration
and enforcement of these provisions. Because a violation of these
provisions or regulations adopted pursuant to these provisions would
be a crime, the bill would impose a state-mandated local program.
(4) Existing law requires the Secretary of Food and Agriculture to
enforce provisions governing livestock operations. Existing law
generally provides that a violation of a provision of the Food and
Agricultural Code is a misdemeanor.
This bill would require each producer owning a nondairy confined
animal facility, as defined, beginning the 2021 calendar year to pay
annually to the secretary a safe drinking water fee of$1,000 for the first
97
249
-5— AB 217
facility and $750 per each facility thereafter owned by the same
producer, not to exceed $12,000. The bill would require these moneys
to be deposited into the Safe and Affordable Drinking Water Fund.
Because a violation of these provisions would be a crime,the bill would
impose a state-mandated local program.
(5) 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 with regard to certain mandates no
reimbursement is required by this act for a specified reason.
With regard to any other mandates,this bill would provide that,if the
Commission on State Mandates deteiiiiines that the bill contains costs
so mandated by the state,reimbursement for those costs shall be made
pursuant to the statutory provisions noted above.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
1 SECTION 1. This act shall be known,and may be cited, as the
2 Safe Drinking Water for All Act.
3 SEC. 2. Article 10.5 (commencing with Section 595)is added
4 to Chapter 3 of Part 1 of Division 1 of the Food and Agricultural
5 Code, to read:
6
7 Article 10.5. Safe Drinking Water Fee for Nondairy Confined
8 Animal Facilities
9
10 595. For purposes of this article, the following definitions
11 apply:
12 (a) "Fee" means the safe drinking water fee for nondairy
13 confined animal facilities.
14 (b) "Fund"means the Safe and Affordable Drinking Water Fund
15 established by Section 116767 of the Health and Safety Code.
16 (c) (1) "Nondairy confined animal facilities" means bovine
17 operations, poultry operations, swine operations, and other
18 livestock operations, excluding dairies, where all of the following
19 apply:
20 (A) Operations are designed to corral,pen,or otherwise enclose
21 or hold domestic livestock.
97
250
AB 217 —6-
1 (B) Feeding is exclusively by means other than grazing.
2 (C) Facilities are subject to annual fees for confined animal
3 facilities adopted in accordance with Section 13260 of the Water
4 Code.
5 (2) "Nondairy confined animal facilities" does not include
6 facilities subject to Article 14.5 (commencing with Section 62215)
7 of Chapter 2 of Part 3 of Division 21.
8 596. (a) Beginning in the 2021 calendar year, each producer
9 owning a nondairy confined animal facility shall pay annually to
10 the secretary a safe drinking water fee. The amount of the fee paid
11 annually to the secretary shall equal one thousand dollars($1,000)
12 for a producer that owns a single nondairy confined animal facility.
13 For a producer that owns more than one nondairy confined animal
14 facility, the amount of the fee paid annually to the secretary shall
15 equal one thousand dollars($1,000)for the first facility and seven
16 hundred fifty dollars ($750)per each facility thereafter owned by
17 the same producer.
18 (b) Notwithstanding subdivision(a),the amount of the fee paid
19 annually to the secretary by a producer that owns more than one
20 nondairy confined animal facility shall not exceed twelve thousand
21 dollars ($12,000)per year.
22 (c) The secretary may prescribe,adopt,and enforce regulations
23 relating to the administration and enforcement of this article.
24 597. The secretary shall deposit all moneys received under this
25 article into the fund.
26 SEC. 3. Article 6.5 (commencing with Section 14615)is added
27 to Chapter 5 of Division 7 of the Food and Agricultural Code, to
28 read:
29
30 Article 6.5. Fertilizer Safe Drinking Water Fee
31
32 14615. (a) It is the intent of the Legislature to require licensees
33 of bulk fertilizing materials,and to authorize licensees of packaged
34 fertilizing materials, to pass the fertilizer safe drinking water fee
35 described in Section 14616 on to the end user of the fertilizer.
36 (b) For purposes of this article,the following definitions apply:
37 (1) "Bulk fertilizing material"has the same meaning as applies
38 to "bulk material" in Section 14517.
39 (2) "Compost" has the same meaning as defined in Section
40 14525.
97
251
-7— AB 217
1 (2)
2 (3) "Fertilizing material" has the same meaning as defined in
3 Section 14533.
4 (3)
5 (4) "Fund"means the Safe and Affordable Drinking Water Fund
6 established by Section 116767 of the Health and Safety Code.
7 (4)
8 (5) "Packaged" has the same meaning as defined in Section
9 14551.
10 14616. In addition to the assessments provided in Section
11 14611, a licensee whose name appears on the label of bulk or
12 packaged fertilizing materials materials, not including compost,
13 shall pay to the secretary a fertilizer safe drinking water fee of six
14 mills ($0.006) per dollar of sales for all sales of fertilizing
15 materials.
16 14617. (a) (1) A licensee whose name appears on the label
17 who sells or distributes bulk fertilizing materials shall charge an
18 unlicensed purchaser the fertilizer safe drinking water fee as a
19 charge that is separate from, and not included in, any other fee,
20 charge, or other amount paid by the purchaser. This fee shall be
21 included on the bill of sale as a separate line item.
22 (2) (A) A licensee whose name appears on the label ofpackaged
23 fertilizing materials may include the fertilizer safe drinking water
24 fee as a charge that is separate from, and not included in,any other
25 fee, charge, or other amount paid by the purchaser or may include
26 the charge with the assessment collected pursuant to Section 14611
27 as a separate line item on the bill of sale and identified as the
28 California Regulatory and Safe Drinking Water Assessment.
29 (B) Notwithstanding paragraph (1), a licensee whose name
30 appears on the label who sells or distributes bulk fertilizing material
31 may include the fertilizer safe drinking water fee with the
32 assessment collected pursuant to Section 14611 as a separate line
33 item on the bill of sale and identified as the California Regulatory
34 and Safe Drinking Water Assessment.
35 (b) The secretary may prescribe,adopt,and enforce regulations
36 relating to the administration and enforcement of this article.
37 (c) (1) Except as provided in paragraph (2), the secretary may
38 retain up to 4 percent of the moneys collected pursuant to this
39 article for reasonable costs associated with the implementation
40 and enforcement of this article.
97
252
AB 217 —8-
1 (2) Beginning July 1, 2022, the secretary may retain up to 2
2 percent of the moneys collected pursuant to this article for
3 reasonable costs associated with the implementation and
4 enforcement of this article.
5 14618. The secretary shall deposit all moneys received under
6 this article into the fund.
7 SEC. 4. Article 14.5 (commencing with Section 62215) is
8 added to Chapter 2 of Part 3 of Division 21 of the Food and
9 Agricultural Code, to read:
10
11 Article 14.5. Dairy Safe Drinking Water Fee
12
13 62215. (a) It is the intent of the Legislature that the dairy safe
14 drinking water fee described in Section 62216 be paid for all milk
15 produced in the state, regardless of grade.
16 (b) For purposes of this article,the following definitions apply:
17 (1) "Fee" means the dairy safe drinking water fee.
18 (2) "Fund"means the Safe and Affordable Drinking Water Fund
19 established by Section 116767 of the Health and Safety Code.
20 (3) "Manufacturing milk" has the same meaning as defined in
21 Section 32509.
22 (4) "Market milk"has the same meaning as defined in Section
23 32510.
24 (5) "Milk" includes market milk and manufacturing milk.
25 62216. (a) Beginning January 1,2022,each handler,including
26 a producer-handler, shall deduct the sum of one cent and three
27 hundred fifty-five mills ($0.01355) per hundredweight of milk
28 from payments made to producers for milk,including the handler's
29 own production, as a dairy safe drinking water fee.
30 (b) The secretary shall adopt regulations necessary for the proper
31 administration and enforcement of this section by January 1,2022.
32 62217. (a) A handler shall pay the dairy safe drinking water
33 fee to the secretary on or before the 45th day following the last
34 day of the month in which the milk was received.
35 (b) The secretary shall deposit all moneys received under this
36 article into the fund.
37 (c) (1) Except as provided in paragraph (2), the secretary may
38 retain up to 4 percent of the total amount that is paid to the
39 secretary pursuant to this article for reasonable costs of the
97
253
-9— AB 217
1 secretary associated with the implementation and enforcement of
2 this article.
3 (2) Beginning July 1, 2022, the secretary may retain up to 2
4 percent of the moneys collected pursuant to this article for
5 reasonable costs of the secretary associated with the
6 implementation and enforcement of this article.
7 (d) The secretary may require handlers, including cooperative
8 associations acting as handlers, to make reports at any intervals
9 and in any detail that the secretary finds necessary for the accurate
10 collection of the fee.
11 (e) For the purposes of enforcing this article, the secretary,
12 through the secretary's duly authorized representatives and agents,
13 shall have access to the records of every producer and handler.
14 The secretary shall have at all times free and unimpeded access to
15 any building, yard, warehouse, store, manufacturing facility, or
16 transportation facility in which any milk or milk product is
17 produced,bought, sold, stored,bottled,handled,or manufactured.
18 (f) Any books,papers,records, documents, or reports made to,
19 acquired by, prepared by, or maintained by the secretary pursuant
20 to this article that would disclose any information about finances,
21 financial status, financial worth, composition, market share, or
22 business operations of any producer or handler, excluding
23 information that solely reflects transfers of production base and
24 pool quota among producers, is confidential and shall not be
25 disclosed to any person other than the person from whom the
26 information was received, except pursuant to the final order of a
27 court with jurisdiction,or as necessary for the proper determination
28 of any proceeding before the secretary.
29 SEC. 5. Chapter 4.6 (commencing with Section 116765) is
30 added to Part 12 of Division 104 of the Health and Safety Code,
31 to read:
32
33 CHAPTER 4.6. SAFE AND AFFORDABLE DRINKING WATER
34
35 Article 1. Legislative Findings and Declarations
36
37 116765. The Legislature finds and declares all of the following:
38 (a) Section 106.3 of the Water Code declares that it is the policy
39 of the state that every human being has the right to safe, clean,
97
254
AB 217 —10-
1 affordable,and accessible water adequate for human consumption,
2 cooking, and sanitary purposes.
3 (b) For all public water systems,the operation and maintenance
4 costs to supply, treat, and distribute potable water that complies
5 with federal and state drinking water standards on a routine and
6 consistent basis may be significant.
7 (c) All community water systems are currently required to set,
8 establish,and charge a schedule of rates and fees that are sufficient
9 to recover the operation and maintenance costs required to supply,
10 treat, and distribute potable water that complies with federal and
11 state drinking water standards on a routine and consistent basis.
12 (d) Hundreds of community water systems in the state cannot
13 charge rates and fees that are affordable and sufficient to recover
14 the full operation and maintenance costs required to supply, treat,
15 and distribute potable water that complies with federal and state
16 drinking water standards on a routine and consistent basis due to
17 a combination of low income levels of customers,high treatment
18 costs for contaminated water sources, and a lack of economies of
19 scale that result in high unit costs for water service. Many schools
20 that serve as their own regulated public water systems and have
21 contaminated water sources cannot afford the full operation and
22 maintenance costs required to provide water that meets federal
23 and state drinking water standards.
24 (e) Nearly all state or federal drinking water project funding
25 sources prohibit the use of that funding for operation and
26 maintenance costs,and as a result,those systems that cannot afford
27 required operation and maintenance costs are unable to access
28 funding for capital projects to meet federal and state drinking water
29 standards.
30 (f) As a result, hundreds of thousands of Californians,
31 particularly those living in small disadvantaged communities,may
32 be exposed to unsafe drinking water in their homes and schools,
33 which impacts human health, household costs, and community
34 economic development.
35 (g) A significant number of California residents rely on state
36 small water systems and domestic wells to provide their drinking
37 water.
38 (h) The state small water systems and individual domestic wells
39 face a serious threat of contamination because they often draw
97
255
-11 — AB 217
1 their water from shallow groundwater sources and have fewer or
2 no chemical monitoring requirements.
3 (i) To ensure that the right of every Californian to safe, clean,
4 affordable,and accessible water adequate for human consumption,
5 cooking, and sanitary purposes is protected, it is in the interest of
6 the State of California to identify where Californians are at high
7 risk of lacking reliable access to safe drinking water or are known
8 to lack reliable access to safe drinking water,whether they rely on
9 a public water system, state small water system, or domestic well
10 for their potable water supply.
11 (j) Long-term sustainability of drinking water infrastructure and
12 service provision is necessary to secure safe drinking water for all
13 Californians and therefore it is in the interest of the state to
14 discourage the proliferation of new, unsustainable public water
15 systems and state small water systems, to prevent waste, and to
16 encourage consolidation and service extension when feasible.
17 (k) It is in the interest of all Californians to establish a fund with
18 a stable source of revenue to provide financial support,particularly
19 for operation and maintenance, necessary to secure access to safe
20 drinking water for all Californians, while also ensuring the
21 long-term sustainability of drinking water service and
22 infrastructure.
23 (1) It is in the interest of all Californians that when funding is
24 available from other sources, including the General Fund,the fees
25 necessary to enact this statute be reduced.
26 116765.5. It is the intent of the Legislature that any interest
27 revenues from the Safe and Affordable Drinking Water Trust Fund
28 as well as revenue from fees deposited in the Safe and Affordable
29 Drinking Water Fund be available annually for the purposes of
30 this chapter.
31
32 Article 2. Definitions
33
34 116766. For the purposes of this chapter:
35 (a) "Administrator"has the same meaning as defined in Section
36 116686.
37 (b) "Board"means the State Water Resources Control Board.
38 (c) "Community water system"has the same meaning as defined
39 in Section 116275.
97
256
AB 217 —12-
1 (d) "Disadvantaged community" has the same meaning as
2 defined in Section 116275.
3 (e) "Domestic well" means a groundwater well used to supply
4 water for the domestic needs of an individual residence or water
5 systems that are not public water systems and that have no more
6 than four service connections.
7 (f) "Eligible applicant"means a public water system,including,
8 but not limited to, a mutual water company; a public utility; a
9 public agency, including, but not limited to, a local educational
10 agency that owns or operates a public water system; a nonprofit
11 organization; a federally recognized Indian tribe; a state Indian
12 tribe listed on the Native American Heritage Commission's
13 California Tribal Consultation List; an administrator; or a
14 groundwater sustainability agency.
15 (g) "Fund"means the Safe and Affordable Drinking Water Fund
16 established pursuant to Section 116767.
17 (h) "Fund implementation plan"means the fund implementation
18 plan adopted pursuant to Section 116769.
19 (i) "Groundwater sustainability agency"has the same meaning
20 as defined in Section 10721 of the Water Code.
21 (j) "Low-income household"means a household with an income
22 that is less than 80 percent of the statewide median household
23 income.
24 (k) "Public water system" has the same meaning as defined in
25 Section 116275.
26 (1) "Replacement water" includes, but is not limited to,bottled
27 water, vended water, point-of-use, or point-of-entry treatment
28 units.
29 (m) "Safe drinking water"has the same meaning as defined in
30 Section 116681.
31 (n) "Service connection" has the same meaning as defined in
32 Section 116275.
33 (o) "State small water system"has the same meaning as defined
34 in Section 116275.
35 (p) "Vended water"has the same meaning as defined in Section
36 111070.
97
257
-13— AB 217
1 Article 3. Safe and Affordable Drinking Water Fund
2
3 116767. (a) The Safe and Affordable Drinking Water Fund is
4 hereby established in the State Treasury.Notwithstanding Section
5 13340 of the Government Code, all moneys in the fund are
6 continuously appropriated to the board without regard to fiscal
7 years, in accordance with this chapter. Moneys in the fund at the
8 close of the fiscal year shall remain in the fund and shall not revert
9 to the General Fund. Moneys in the fund shall not be available for
10 appropriation or borrowed for use for any purpose not established
11 in this chapter unless that use of the moneys receives an affirmative
12 vote of two-thirds of the membership in each house of the
13 Legislature.
14 (b) The board shall report annually in the Governor's budget
15 fund revenues,including interest revenues,expenditures,and fund
16 balances.
17 116768. (a) The board shall administer the fund for the
18 purposes of this chapter to provide a source of funding to secure
19 access to safe drinking water for all Californians, while also
20 ensuring the long-term sustainability of drinking water service and
21 infrastructure. The board shall prioritize the use of this funding to
22 assist disadvantaged communities and low-income households
23 served by a state small water system or a domestic well. In order
24 to maximize the use of other funding sources for capital
25 construction projects when available,the board shall prioritize use
26 of this funding for costs other than those related to capital
27 construction costs,except for capital construction costs associated
28 with consolidation and service extension to reduce the ongoing
29 unit cost of service and to increase sustainability of drinking water
30 infrastructure and service delivery. Beginning January 1,2020, an
31 expenditure from the fund shall be consistent with the annual fund
32 implementation plan.
33 (b) In accordance with subdivision (a), the board shall expend
34 moneys in the fund for grants,loans,contracts,or services to assist
35 eligible applicants with any of the following:
36 (1) The provision of replacement water, as needed, to ensure
37 immediate protection of health and safety as a short-term solution.
38 (2) The development, implementation, and sustainability of
39 long-term drinking water solutions that include,but are not limited
40 to, the following:
97
258
AB 217 —14—
1 (A) Technical assistance, planning, construction, repair, and
2 operation and maintenance costs associated with replacing,
3 blending, or treating contaminated drinking water or with fixing
4 failing water systems,pipes, or fixtures. Technical assistance and
5 planning costs may include, but are not limited to, analyses to
6 identify,and efforts to further,opportunities to reduce the unit cost
7 of providing drinking water through organizational and operational
8 efficiency improvements, system consolidation and service
9 extension, implementation of new technology, and other options
10 and approaches to reduce costs.
11 (B) Operations and maintenance costs associated with
12 consolidated water systems, extended drinking water services, or
13 reliance on a substituted drinking water source.
14 (C) Creating and maintaining natural means and green
15 infrastructure solutions that contribute to sustainable drinking
16 water.
17 (D) Consolidating water systems.
18 (E) Extending drinking water services to other public water
19 systems, domestic wells, or state small water systems.
20 (F) The satisfaction of outstanding long-teiin debt obligations
21 of public water systems where the board deteiniines that a system's
22 lack of access to capital markets renders this solution the most cost
23 effective for removing a financial barrier to the system's
24 sustainable, long-term provision of drinking water.
25 (3) Identifying and providing outreach to Californians who are
26 eligible to receive assistance from the fund.
27 (4) Testing the drinking water quality of domestic wells serving
28 low-income households in high-risk areas identified pursuant to
29 Article 4 (commencing with Section 116770).
30 (5) The provision of administrative and managerial services
31 under Section 116686.
32 (6) Provision of wastewater treatment plant operations and
33 maintenance for areas in which polluted water originates from
34 outside the state.
35 (c) The board may expend moneys from the fund for reasonable
36 costs associated with administration of the fund. Beginning July
37 1, 2022, the board may expend no more than 5 percent of the
38 annual revenues from the fund for reasonable costs associated with
39 administration of the fund.
97
259
-15— AB 217
1 (d) The board may undertake any of the following actions to
2 implement the fund:
3 (1) Provide for the deposit of any of the following moneys into
4 the fund:
5 (A) Federal contributions.
6 (B) Voluntary contributions, gifts, grants, or bequests.
7 (2) Enter into agreements for contributions to the fund from the
8 federal government, local or state agencies, and private
9 corporations or nonprofit organizations.
10 (3) Provide for appropriate audit, accounting, and fiscal
11 management services, plans, and reports relative to the fund.
12 (4) Direct portions of the fund to a subset of eligible applicants
13 as required or appropriate based on funding source and consistent
14 with the annual fund implementation plan.
15 (5) Direct moneys deposited into the fund described in
16 subparagraph (B) of paragraph (1) towards a specific project,
17 program, or study.
18 (6) Take additional action as may be appropriate for adequate
19 administration and operation of the fund.
20 (e) In administering the fund, the board shall make reasonable
21 efforts to ensure both of the following:
22 (1) That funds are used to secure the long-term sustainability
23 of drinking water service and infrastructure, including, but not
24 limited to,requiring adequate technical,managerial,and financial
25 capacity of eligible applicants as part of funding agreement
26 outcomes.Funding shall be prioritized to implement consolidations
27 and service extensions when feasible, and administrative and
28 managerial contracts or grants entered into pursuant to Section
29 116686 where applicable.Funds shall not be used to delay,prevent,
30 or avoid the consolidation or extension of service to public water
31 systems where it is feasible and the least-cost alternative. The
32 board may set appropriate requirements as a condition of funding,
33 including, but not limited to, a system technical, managerial, or
34 financial capacity audit,improvements to reduce costs and increase
35 efficiencies, an evaluation of alternative treatment technologies,
36 and a consolidation or service extension feasibility study. As a
37 condition of funding, the board may require a domestic well with
38 nitrate contamination where ongoing septic system failure may be
39 causing or contributing to contamination of a drinking water source
97
260
AB 217 —16-
1 to conduct an investigation and project to address the septic system
2 failure if adequate funding sources are identified and accessible.
3 (2) That funds are not used to subsidize large-scale nonpotable
4 use.
5 (f) In administering the fund, the board shall ensure that all
6 moneys deposited into the fund from the safe drinking water fee
7 for nondairy confined animal facilities pursuant to Article 10.5
8 (commencing with Section 595)of Chapter 3 of Part 1 of Division
9 1 of the Food and Agricultural Code, the fertilizer safe drinking
10 water fee pursuant to Article 6.5 (commencing with Section 14615)
11 of Chapter 5 of Division 7 of the Food and Agricultural Code,and
12 the dairy safe drinking water fee pursuant to Article 14.5
13 (commencing with Section 62215) of Chapter 2 of Part 3 of
14 Division 21 of the Food and Agricultural Code shall be used to
15 address nitrate-related contamination issues.
16 (g) At least once every 10 years,the board shall conduct a public
17 review and assessment of the fund to determine all of the following:
18 (1) The effectiveness of the fund in securing access to safe
19 drinking water for all Californians, while also ensuring the
20 long-term sustainability of drinking water service and
21 infrastructure.
22 (2) If the fees deposited into the fund have been appropriately
23 expended.
24 (3) For community water systems that have received funding
•
25 for 10 years or more and for which self-sufficiency has not been
26 achieved, the actions that have been taken, the reasons why
27 self-sufficiency has not been achieved, and, if available, ways in
28 which the community water system may become self-sufficient.
29 (4) What other actions are necessary to carry out the purposes
30 of this chapter.
31 (h) Neither the board nor any employee of the board may be
32 held liable for any act that is necessary to carry out the purposes
33 of this chapter. The board or any authorized person shall not be
34 deemed to have incurred or to be required to incur any obligation
35 to provide additional funding or undertake additional action solely
36 as a result of having undertaken an action pursuant to this chapter.
37 (i) (1) The board shall convene an environmental justice
38 advisory committee,for the purposes of this section, consisting of
39 at least three members,to advise it in conducting the public review
40 and assessment pursuant to subdivision(g)and any other pertinent
97
261
-17— AB 217
1 matter in implementing this chapter.The advisory committee shall
2 be comprised of representatives from communities in the state
3 with the most significant exposure to water pollution, including,
4 but not limited to, communities with minority populations or
5 low-income populations, or both.
6 (2) The board shall appoint committee members to the
7 environmental justice advisory committee from nominations
8 received from environmental justice organizations and community
9 groups.
10 (3) The board shall provide reasonable per diem for attendance
11 at environmental justice advisory committee meetings by
12 committee members from nonprofit organizations.
13 116769. By July 1 of each year, the board shall do all of the
14 following:
15 (a) Prepare and make available a report of expenditures from
16 the fund.
17 (b) Adopt,after a public hearing,an assessment of funding need,
18 based on available data, that includes all of the following:
19 (1) Identification of systems and populations potentially in need
20 of assistance, including, but not limited to, all of the following:
21 (A) A list of systems that consistently fail to provide an adequate
22 supply of safe drinking water. The list shall include all of the
23 following:
24 (i) Any public water system that consistently fails to provide
25 an adequate supply of safe drinking water.
26 (ii) Any community water system that serves a disadvantaged
27 community that must charge fees that exceed the affordability
28 threshold established in the board's Safe Drinking Water State
29 Revolving Fund Intended Use Plan in order to supply, treat, and
30 distribute potable water that complies with federal and state
31 drinking water standards.
32 (iii) Any state small water system that consistently fails to
33 provide an adequate supply of safe drinking water.
34 (B) A list of programs that assist,or that will assist,households
35 supplied by a domestic well that consistently fails to provide an
36 adequate supply of safe drinking water. This list shall include the
37 number and approximate location of households served by each
38 program without identifying exact addresses or other personal
39 information.
97
262
AB 217 —18-
1 (C) A list of public water systems and state small water systems
2 that may be at risk of failing to provide an adequate supply of safe
3 drinking water.
4 (D) An estimate of the number of households that are served
5 by domestic wells or state small water systems in high-risk areas
6 identified pursuant to Article 4(commencing with Section 116770).
7 The estimate shall identify approximate locations of households,
8 without identifying exact addresses or other personal information,
9 in order to identify potential target areas for outreach and assistance
10 programs.
11 (2) An analysis of anticipated funding,per contaminant,needed
12 for known projects, services, or programs by eligible applicants,
13 consistent with the fund implementation plan, including any
14 funding needed for existing long-term funding commitments from
15 the fund. The board shall identify and consider other existing
16 funding sources able to support any projects, services,or programs
17 identified, including, but not limited to, local funding capacity,
18 state or federal funding sources for capital projects, funding from
19 responsible parties, and specialized funding sources contributing
20 to the fund.
21 (3) An estimate of the funding needed for the next fiscal year
22 based on the amount available in the fund, anticipated funding
23 needs, other existing funding sources, and other relevant data and
24 information.
25 (c) (1) Adopt, after a public hearing, a fund implementation
26 plan and policy handbook with priorities and guidelines for
27 expenditures of the fund.
28 (2) The board shall work with a multistakeholder advisory group
29 to establish priorities and guidelines for the fund implementation
30 plan and policy handbook. The multistakeholder advisory group
31 shall be open to participation by all of the following:
32 (A) Representatives of entities paying into the fund.
33 (B) Public water systems.
34 (C) Technical assistance providers.
35 (D) Local agencies.
36 (E) Nongovernmental organizations.
37 (F) Residents served by community water systems in
38 disadvantaged communities, state small water systems, and
39 domestic wells.
40 (G) The public.
97
263
-19— AB 217
1 (3) The adoption of a fund implementation plan and policy
2 handbook and the implementation of the fund pursuant to the policy
3 handbook are not subject to the Administrative Procedure Act
4 (Chapter 3.5 (commencing with Section 11340) of Part 1 of
5 Division 3 of Title 2 of the Government Code).
6
7 Article 4. Infoiiiiation on High-risk Areas
8
9 116770. (a) (1) By January 1,2021,the board,in consultation
10 with local health officers and other relevant stakeholders, shall use
11 available data to make available a map of aquifers that are at high
12 risk of containing contaminants and that exceed primary federal
13 and state drinking water standards that are used or likely to be used
14 as a source of drinking water for a state small water system or a
15 domestic well. The board shall update the map at least annually
16 based on any newly available data.
17 (2) The board shall make the map of high-risk areas, as well as
18 the data used to make the map, publicly accessible on its internet
19 website in a manner that does not identify exact addresses or other
20 personal information and that complies with the Information
21 Practices Act of 1977(Chapter 1 (commencing with Section 1798)
22 of Title 1.8 of Part 4 of Division 3 of the Civil Code). The board
23 shall notify local health officers and county planning agencies of
24 high-risk areas within their jurisdictions.
25 (b) (1) By January 1, 2021, a local health officer or other
26 relevant local agency shall provide to the board all results of, and
27 data associated with, water quality testing performed by certified
28 laboratories for a state small water system or domestic well that
29 was collected after January 1, 2015, and that is in the possession
30 of the local health officer or other relevant local agency.
31 (2) By January 1,2022,and by January 1 of each year thereafter,
32 all results of, and data associated with, water quality testing
33 performed by a certified laboratory for a state small water system
34 or domestic well that is submitted to a local health officer or other
35 relevant local agency shall also be submitted directly to the board
36 in electronic format.
37 (c) A map of high-risk areas developed pursuant to this article
38 is not subject to the Administrative Procedure Act (Chapter 3.5
39 (commencing with Section 11340) of Part 1 of Division 3 of Title
40 2 of the Government Code).
97
264
AB 217 —20-
1 Article 5. Safe and Affordable Drinking Water Fee
2
3 116771. (a) The board shall adopt, by regulation, a schedule
4 of fccs as authorized by this section.Fccs adopted shall not exceed
5 . The regulations may include provisions concerning the
6 administration and collection of the fees.
7 116771. (a) There is hereby imposed a safe and affordable
8 drinking water fee of fifty cents ($0.50)per service connection on
9 all public water systems.
10 (b) By July 1, 2020, and annually by each July 1 thereafter,
11 each public water system shall remit to the board the amount of
12 the fee imposed pursuant to subdivision (a)for their public water
13 system.
14 (c) (1) The board may adopt regulations to implement and
15 enforce this article.
16 (b) (1) Except as provided in paragraph(2), the
17 (2) The regulations adopted pursuant to this section, or any
18 amendment to these regulations, or subsequent adjustments to the
19 annual fccs, the board shall adopt as emergency regulations in
20 accordance with Chapter 3.5 (commencing with Section 11340)
21 of Part 1 of Division 3 of Title 2 of the Government Code. The
22 adoption of these regulations is an emergency and the Office of
23 Administrative Law shall consider the adoption of the regulations
24 as necessary for the immediate preservation of the public peace,
25 health, safety, and general welfare.
26 (2)
27 (3) The board shall adopt the initial regulations to implement
28 this section in accordance with Chapter 3.5 (commencing with
29 Section 11340)of Part 1 of Division 3 of Title 2 of the Government
30 Code and may not rely on the statutory declaration of emergency
31 in paragraph (1). (2).
32 (3i
33 (4) Any emergency regulations adopted by the board or
34 adjustments to the fccs made by the board pursuant to this section
35 shall not be subject to review by the Office of Administrative Law
36 and shall remain in effect until revised by the board.
37 (c) Fees collected
38 (d) The executive director of the board shall deposit all moneys
39 received pursuant to this section shall be deposited in the fund.
97
265
—21— AB 217
1 The board may expend moneys from the fund for reasonable costs
2 associated with the implementation and enforcement of this section.
3 116772. (a) The Legislative Analyst shall report to the
4 Legislature and the board if the Legislative Analyst determines,
5 on or before January 1, 2023, that at least three billion dollars
6 ($3,000,000,000) has been made available in an interest bearing
7 account in the State Treasury with a goal of at least one hundred
8 million dollars ($100,000,000) in interest revenues per year
9 available for the purposes of the fund.
10 (b) (1) A report to be submitted pursuant to subdivision (a)
11 shall be submitted in compliance with Section 9795 of the
12 Government Code.
13 (2) Pursuant to Section 10231.5 of the Government Code, this
14 section is repealed on January 1, 2027.
15 (c) This article shall become inoperative upon the Legislative
16 Analyst submitting a report pursuant to subdivision(a), and, as of
17 January 1, of the year following that determination, is repealed.
18
19 Article 6. Regional Distribution
20
21 116773. (a) The Legislature finds and declares as follows:
22 (1) Water quality problems occur in all areas of the state,
23 including rural and urban areas.
24 (2) In particular, aging school infrastructure, including lead
25 pipes,puts at risk thousands of children per year.
26 (b) It is the intent of the Legislature to establish a region specific
27 program to address the purposes of this chapter.
28 (c) The board may distribute funds for any purpose of this
29 chapter through its drinking water regional offices, as follows:
30 (1)
31 (d) The board shall not distribute more than 20 percent of the
32 annual expenditures from the fund pursuant to subdivision (c).
33 SEC. 6. Chapter 4.7 (commencing with Section 116774) is
34 added to Part 12 of Division 104 of the Health and Safety Code,
35 to read:
97
266
AB 217 —22—
1 CHAPTER 4.7. SAFE AND AFFORDABLE DRINKING WATER TRUST
2 FUND
3
4 116774. (a) The Safe and Affordable Drinking Water Trust
5 Fund is hereby established within the State Treasury.It is the intent
6 of the Legislature that moneys in the trust fund remain for the
7 purposes of the trust in perpetuity.
8 (b) Moneys held in the trust fund shall be invested by the
9 Treasurer, in consultation with the Director of Finance and the
10 Controller, in investments authorized by Section 16430 of the
11 Government Code.
12 (c) Investment income derived from the trust fund is hereby
13 transferred on January 1 of each year to the Safe and Affordable
14 Drinking Water Fund, established by Section 116767 for the
15 purposes of Chapter 4.6 (commencing with Section 116765).
16 116774.1. The sum of two hundred million dollars
17 ($200,000,000) shall be transferred to the trust fund by the
18 Legislature each year for five years for the purpose of establishing
19 a one-billion-dollar ($1,000,000,000) trust fund to derive interest
20 revenues to fund Chapter 4.6(commencing with Section 116765).
21 SEC. 7. No reimbursement is required by this act pursuant to
22 Section 6 ofArticle XIIIB of the California Constitution for certain
23 costs that may be incurred by a local agency or school district
24 because, in that regard, this act creates a new crime or infraction,
25 eliminates a crime or infraction,or changes the penalty for a crime
26 or infraction, within the meaning of Section 17556 of the
27 Government Code, or changes the definition of a crime within the
28 meaning of Section 6 of Article XIII B of the California
29 Constitution.
30 However, if the Commission on State Mandates determines that
31 this act contains other costs mandated by the state,reimbursement
32 to local agencies and school districts for those costs shall be made
33 pursuant to Part 7 (commencing with Section 17500) of Division
34 4 of Title 2 of the Government Code.
0
97
267
ATTACHMENT #3
AMENDED IN ASSEMBLY MARCH 25, 2019
CALIFORNIA LEGISLATURE-2019-20 REGULAR SESSION
ASSEMBLY BILL No. 919
Introduced by Assembly Member Petrie-Norris
February 20, 2019
An act to amend Section 11834.3611831.7 of the Health and Safety
Code, relating to drug and alcohol programs.
LEGISLATIVE COUNSEL'S DIGEST
AB 919, as amended, Petrie-Norris. Alcoholism and drug abuse
recovery and treatment programs.
Existing law provides for the licensure and regulation of adult
alcoholism or drug abuse recovery or treatment facilities by the State
Department of Health Care Services and authorizes the department to
enforce those provisions.Existing law authorizes the Director of Ilealth
Care Services to suspend or revoke a facility's liccnsc, as well as any
other adult alcoholism or drug abusc recovery or treatment facility
licenses held by thc same person,or to dcny an application for liccnsurc,
extension of thc licensing period, or modification of the liccnsc upon
specified grounds,including misrepresenting a material fact in obtaining
the liccnsc. Existing law prohibits specified persons, programs, or
entities, such as an alcoholism or drug abuse treatment facility or a
person employed by, or working for, an alcohol or other drug program,
from giving or receiving anything of value for the referral of a person
who is seeking alcoholism or drug abuse recovery and treatment
services. Existing law authorizes the department to investigate
allegations of violations of those provisions, and authorizes the
department to assess various penalties upon a person, program, or
entity that is found in violation of those provisions.
98
268
AB 919 —2—
This bill would make technical, nonsubstantivc changes to those
provisions.
This bill would require the department to establish an enforcement
program focused on the duties to enforce those provisions, and would
require staff of the enforcement program to provide the department
with analytical support, general oversight and monitoring, and legal
guidance regarding those provisions.
Vote: majority. Appropriation: no. Fiscal committee: eyes.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Section 11831.7 of the Health and Safety Code
2 is amended to read:
3 11831.7. (a) The department may investigate allegations of
4 violations of Section 11831.6. The department may, upon finding
5 a violation of Section 11831.6 or any regulation adopted pursuant
6 to that section, do any of the following:
7 (1) Assess a penalty upon an alcoholism or drug abuse recovery
8 and treatment facility licensed under this part.
9 (2) Suspend or revoke the license of an alcoholism or drug abuse
10 recovery and treatment facility licensed under Chapter 7.5
11 (commencing with Section 11834.01), or deny an application for
12 licensure, extension of the licensing period, or modification to a
13 license.Article 4(commencing with Section 11834.35)of Chapter
14 7.5 shall apply to any action taken pursuant to this paragraph.
15 (3) Assess a penalty upon an alcohol or other drug program
16 certified by the department in accordance with the alcohol or other
17 drug certification standards established pursuant to Section
18 11830.1.
19 (4) Suspend or revoke the certification of an alcohol or other
20 drug program certified by the department in accordance with the
21 alcohol or other drug certification standards established pursuant
22 to Section 11830.1.
23 (5) Suspend or revoke the registration or certification of a
24 counselor for a violation of Section 11831.6.
25 (b) The department may investigate allegations against a licensed
26 professional providing counseling services at an alcoholism or
27 drug abuse recovery and treatment program licensed, certified, or
28 funded under this part, and recommend disciplinary actions,
98
269
-3— AB 919
1 including, but not limited to, termination of employment at a
2 program and suspension and revocation of licensure by the
3 respective licensing board.
4 (c) The department shall establish an enforcement program
5 focused on the oversight duties of this section. Staff of the
6 enforcement program shall have responsibilities including, but
7 not limited to, all of the following:
8 (1) Provide the department with analytical support for the
9 development and administration of the prohibition in Section
10 11831.6.
11 (2) Provide the department with general oversight and
12 monitoring focused on investigations and enforcement of this
13 section and Section 11831.6.
14 (3) Provide the department with legal guidance in the
15 interpretation of this section and Section 11831.6.
16 (c)
17 (d) Notwithstanding the rulemaking provisions of the
18 Administrative Procedure Act (Chapter 3.5 (commencing with
19 Section 11340)of Part 1 of Division 3 of Title 2 of the Government
20 Code), the department may, if it deems appropriate, implement,
21 interpret, or make specific this section by means of provider
22 bulletins, written guidelines, or similar instructions from the
23 department, until regulations are adopted.
24 SECTION 1. Section 11834.36 of the health and Safety Code
25 is amended to read:
26 11834.36. (a) The director may suspend or revoke a license
27 issued under this chapter,as well as any other licenses issued under
28 this chapter to operate an adult alcoholism or drug abuse recovery
29 or treatment facility held by the same person or entity, or deny an
30 application for licensure, extension of the licensing period, or
31 modification to a license, upon any of the following grounds and
32 in the manner provided in this chapter:
33 (1) Violation by the licensee of this chapter or regulations
34 adopted pursuant to this chapter.
35 (2) Repeated violation by the licensee of this chapter or
36 regulations adopted pursuant to this chapter.
37 (3) Aiding,abetting,or permitting the violation of,or a repeated
38 violation of, paragraph(1) or(2).
39 (4) Conduct in the operation of an alcoholism or drug abuse
40 recovery or treatment facility that is inimical to the health,morals,
98
270
AB919 —4-
1 welfare, or safety of cithcr an individual in, or receiving services
2 from, the facility or to the people of the State of California.
3 (5) Misrepresentation of a material fact in obtaining the
4 alcoholism or drug abuse recovery or treatment facility liccnsc,
5 including, but not limited to, providing false information or
6 documentation to the department.
7 (6) The licensee's refusa
8 facility to determine compliance with the requirements of this
9 chapter or regulations adopted pursuant to this chapter.
10 (7) Violation by the licensee of Section 11834.026 or the
11 regulations adopted pursuant to that section.
12 (8) Failure to pay any civil penalties assessed by the department.
13 (b) The director may temporarily suspend a liccnsc, as well as
14 any other licenses issued under this chapter to operate an adult
15 alcoholism or drug abuse recovery or trcatmcnt facility held by
16 the same person or entity, prior to a hearing when, in the opinion
17 of the director, the action is necessary to protect residents of the
18 alcoholism or drug abuse recovery or trcatmcnt facility from
19 physical or mental abuse, abandonment, or another substantial
20 threat to health or safety. The director shall notify the licensee of
21 the temporary suspension and the effective date of the temporary
22 suspension and at the same time shall serve the provider with an
23 accusation. Upon receipt of a notice of defense to the accusation
24 by the licensee, the director shall, within 15 days, set the matter
25 for hearing, and the hearing shall be held as soon as possible. The
26 temporary suspension shall remain in effect until the hearing is
27 completed and the director has made a final determination on the
28 merits. IIowever, the temporary suspension shall be deemed
29 vacated if the director fails to make a final determination on the
30 merits within 30 days after the department receives the proposed
31 decision from the Office of Administrative Hearings.
32 (c) The department may terminate review of an application for
33 licensurc under this chapter from a person or entity that previously
34 had a license issued under this chapter suspended or revoked for
35 a period of five years from the date of the final decision and order.
0
98
271
ATTACHMENT #4
AMENDED IN ASSEMBLY MARCH 25, 2019
CALIFORNIA LEGISLATURE-2019-20 REGULAR SESSION
ASSEMBLY BILL No. 920
Introduced by Assembly Member Petrie-Norris
February 20, 2019
An act to amend Section 11834.3411834.23 of the Health and Safety
Code,relating to drug and alcohol programs.
LEGISLATIVE COUNSEL'S DIGEST
AB 920, as amended, Petrie-Norris. Alcoholism and drug abuse
recovery and treatment programs.
Existing law provides for the licensure and regulation of adult
alcoholism or drug abuse recovery or treatment facilities by the State
Department of Health Care Services and authorizes the department to
enforce those provisions.Existing law authorizes the Director of Ilealth
Care Services to suspend or revoke a facility's license upon specified
grounds, including misrepresenting a material fact in obtaining the
license. Existing law also authorizes th
penalties for violation of the provisions governing the facilities.Existing
law requires an alcoholism or drug abuse recovery or treatment facility
that serves 6 or fewer persons to be considered a residential use of
property and requires that the residents and operators of the facility
be considered a family for the purposes of any law or zoning ordinance
that relates to the residential use of property.
provisions.
This bill would exempt from those provisions an alcoholism or drug
abuse recovery or treatment facility that serves 6 or fewer persons that
98
272
AB 920 —2—
is engaged in an economic relationship with a treatment provider that
owns or operates 2 or more of this type of facility.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Section 11834.23 of the Health and Safety Code
2 is amended to read:
3 11834.23. (a) Whether or not unrelated persons are living
4 together,an alcoholism or drug abuse recovery or treatment facility
5 that serves six or fewer persons shall be considered a residential
6 use of property for the purposes of this article. In addition, the
7 residents and operators of the facility shall be considered a family
8 for the purposes of any law or zoning ordinance that relates to the
9 residential use of property pursuant to this article.
10 (b) For the purpose of all local ordinances, an alcoholism or
11 drug abuse recovery or treatment facility that serves six or fewer
12 persons shall not be included within the definition of a boarding
13 house,rooming house, institution or home for the care of minors,
14 the aged,or persons with mental health disorders,foster care home,
15 guest home,rest home,community residence,or other similar term
16 that implies that the alcoholism or drug abuse recovery or treatment
17 home is a business run for profit or differs in any other way from
18 a single-family residence.
19 (c) This section shall not be construed to does not forbid a city,
20 county, or other local public entity from placing restrictions on
21 building heights, setback, lot dimensions, or placement of signs
22 of an alcoholism or drug abuse recovery or treatment facility that
23 serves six or fewer persons as long as the restrictions are identical
24 to those applied to other single-family residences.
25 (d) This section shall not be construed to does not forbid the
26 application to an alcoholism or drug abuse recovery or treatment
27 facility of any local ordinance that deals with health and safety,
28 building standards, environmental impact standards, or any other
29 matter within the jurisdiction of a local public entity. However,
30 the ordinance shall not distinguish alcoholism or drug abuse
31 recovery or treatment facilities that serve six or fewer persons from
32 other single-family dwellings or distinguish residents of alcoholism
98
273
-3— AB 920
1 or drug abuse recovery or treatment facilities from persons who
2 reside in other single-family dwellings.
3 (e) No A conditional use permit,zoning variance,or other zoning
4 clearance shall not be required of an alcoholism or drug abuse
5 recovery or treatment facility that serves six or fewer persons that
6 is not required of a single-family residence in the same zone.
7 (f) Use of a single-family dwelling for purposes of an alcoholism
8 or drug abuse recovery facility serving six or fewer persons shall
9 not constitute a change of occupancy for purposes of Part 1.5
10 (commencing with Section 17910)of Division 13 or local building
11 codes. However, nothing in this section is intended to supersede
12 Section 13143 or 13143.6, to the extent those sections are
13 applicable to alcoholism or drug abuse recovery or treatment
14 facilities serving six or fewer residents.
15 (g) This section does not apply to an alcoholism or drug abuse
16 recovery or treatment facility that serves six or fewer persons that
17 is engaged in an economic relationship with a treatment provider
18 that owns or operates two or more of this type of facility.
19 SECTION 1. Section 11834.34 of the Ilealth and Safety Code
20 is amended to read:
21 11834.34. (a) In addition to the penalties of suspension or
22 revocation of a license issued under this chapter, the department
23 may also levy a civil penalty for violation of this chapter or the
24 regulations adopted pursuant to this chapter.
25 (1) The amount of the civil penalty, as determined by the
26 dcpartmcnt,shall not be less than two hundred fifty dollars($250)
27 or more than five hundred dollars($500)per day for each violation,
28 except when the nature or seriousness of the violation or the
29 frequency of the violation warrants a higher penalty or an
30 immediate civil penalty assessment, or both, as determined by the
31 department. A civil penalty assessment shall not exceed one
32 thousand dollars ($1,000)per day.
33 (2) A licensee that is cited for repeating the same violation
34 within 24 months of the first violation is subject to an immediate
35 civil penalty of five hundred dollars ($500) and seven hundred
36 fifty dollars ($750) for each day the violation continues until the
37 deficiency is corrected.
38 (3) A licensee that has been assessed a civil penalty pursuant
39 to paragraph (2) and that repeats the same violation within 24
40 months of the violation subject to paragraph (2) is subject to an
98
274
AB 920 —4—
1 immediate civil penalty of five hundred dollars ($500) and one
2 thousand dollars($1,000)for each day the violation continues until
3 the deficiency is corrected.
4 (b) Prior to the assessment of a civil penalty, the department
5 shall provide the licensee with notice requiring the licensee to
6 correct the deficiency within the period of time specified in the
7 notice.
0
98
275
ATTACHMENT #5
CALIFORNIA LEGISLATURE-2019-20 REGULAR SESSION
ASSEMBLY BILL No. 1583
Introduced by Assembly Member Eggman
(Coauthors:Assembly Members McCarty,Blanca Rubio,and Ting)
February 22, 2019
An act to amend Sections 18015,26003,26011.8,42023.1,42023.2,
42023.3,42023.4,42023.5,and 42023.6 of,and to add Sections 42003,
42004,and 42005.5 to,the Public Resources Code,and to amend Section
6010.8 of the Revenue and Taxation Code,relating to public resources,
and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1583, as introduced, Eggman. The California Recycling Market
Development Act.
(1) Existing law requires all rigid plastic bottles and rigid plastic
containers sold in the state to be labeled with a code that indicates the
resin used to produce the bottles or containers,with specified numbers
and letters placed in relation to a triangle, designed as prescribed.
This bill would delete the prescribed description of that triangle.
(2) Existing law requires the Department of Resources Recycling
and Recovery to develop a comprehensive market development plan
that will stimulate market demand in the state for postconsumer waste
material and secondary waste material generated in the state. Existing
law authorizes a local governing body, as defined, to propose eligible
property within its jurisdiction as a recycling market development zone,
as defined,and authorizes the department to designate recycling market
development zones.
This bill would require the department, upon appropriation by the
Legislature,to establish a Paper Recycling Incentive Program that makes
99
276
AB 1583 —2—
incentive payments to in-state processors of waste paper and to establish
an Organic Waste Recycling Incentive Program that makes incentive
payments to in-state organic waste recycling facilities that process
organic waste collected from municipal sources.The bill would require
the department to convene a Statewide Commission on Recycling
Markets and Curbside Recycling and would require the commission to,
among other things,issue policy recommendations to achieve specified
market development goals and waste reduction goals and provide regular
feedback to the department on public messaging designed to encourage
proper recycling and to minimize contamination in curbside recycling
programs.
(3) Existing law creates the Recycling Market Development
Revolving Loan Subaccount and continuously appropriates the funds
deposited in the subaccount to the department for making loans and
payments to specified entities within the recycling market development
zones and in other specified areas for purposes of the Recycling Market
Development Revolving Loan Program. Existing law makes these
provisions inoperative on July 1, 2021.
This bill would extend the inoperative date of these provisions to July
1, 2031. By extending the operation of a continuously appropriated
fund,the bill would make an appropriation of special fund moneys.The
bill would also make conforming changes.
(4) Existing sales and use tax laws impose taxes on retailers measured
by the gross receipts from the sale of tangible personal property sold
at retail in this state,or on the storage,use, or other consumption in this
state of tangible personal property purchased from a retailer for storage,
use, or other consumption in this state. The California Alternative
Energy and Advanced Transportation Financing Authority Act
establishes the California Alternative Energy and Advanced
Transportation Financing Authority. The act authorizes, until January
1, 2021, the authority to provide financial assistance to a participating
party in the form of specified sales and use tax exclusions for projects,
including those that promote California-based manufacturing,
California-based jobs,advanced manufacturing,reduction of greenhouse
gases, or reduction in air and water pollution or energy consumption.
The act prohibits the sales and use tax exclusions from exceeding
$100,000,000 for each calendar year. The Sales and Use Tax Law, for
the purposes of the taxes imposed pursuant to that law, until January
1, 2021, excludes the lease or transfer of title of tangible personal
property constituting a project to any contractor for use in the
99
277
—3— AB 1583
performance of a construction contract for a participating party that will
use that property as an integral part of the approved project.
This bill would extend the authorization to provide financial assistance
in the form of a sales and use tax exclusion for qualifying projects to
January 1, 2031, and would extend the sales and use tax exclusion to
January 1, 2031.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. This act shall be known,and may be cited,as the
2 California Recycling Market Development Act.
3 SEC. 2. Section 18015 of the Public Resources Code is
4 amended to read:
5 18015. (a) All rigid plastic bottles and rigid plastic containers
6 sold in California on and after January 1, 1992, shall be labeled
7 with a code which that indicates the resin used to produce the rigid
8 plastic bottle or rigid plastic container.Rigid plastic bottles or rigid
9 plastic containers with labels and basecups of a different material
10 shall be coded by their basic material. The code shall consist of a
11 number placed inside a triangle, and letters placed below the
12 triangle. The triangle shall be equilateral, formed by three arrows
13 with the apex of each point of the triangle at the midpoint of each
14 arrow, rounded with a short radius. The pointer (arrowhead) of
15 each arrow shall be at the midpoint of each side of the triangle
16 with a short gap separating the pointer from the base of the adjacent
17 arrow. The triangle, formed by the three arrows curved at their
18 midpoints shall depict a clockwise path around the code number.
19 The numbers and letters used shall be as follows:
20 1 =PETE (polyethylene terephthalate)
21 2 =HDPE (high density polyethylene)
22 3 =V (vinyl)
23 4 =LDPE (low density polyethylene)
24 5 =PP (polypropylene)
25 6 =PS (polystyrene)
26 7 =OTHER(includes multilayer)
27 (b) A "7" shall appear below the resin abbreviation when the
28 bottle or container is composed of more than one layer of that
29 resin.
99
278
AB 1583 —4—
1 (c) On and after January 1, 1989,the The Division of Recycling
2 of in the Department of Conservation Resources Recycling and
3 Recovery shall maintain a list of abbreviations used on labels
4 pursuant to subdivision (a) and shall provide a copy of that list to
5 any a person upon request.
6 SEC. 3. Section 26003 of the Public Resources Code, as
7 amended by Section 257 of Chapter 86 of the Statutes of 2016, is
8 amended to read:
9 26003. (a) As used in this division, unless the context
10 otherwise requires:
11 (1) (A) "Advanced manufacturing" means manufacturing
12 processes that improve existing or create entirely new materials,
13 products, and processes through the use of science, engineering,
14 or information technologies, high-precision tools and methods, a
15 high-perfoiiiiance workforce, and innovative business or
16 organizational models utilizing any of the following technology
17 areas:
18 (i) Microelectronics and nanoelectronics, including
19 semiconductors.
20 (ii) Advanced materials.
21 (iii) Integrated computational materials engineering.
22 (iv) Nanotechnology.
23 (v) Additive manufacturing.
24 (vi) Industrial biotechnology.
25 (B) "Advanced manufacturing" includes any of the following:
26 (i) Systems that result from substantive advancement, whether
27 incremental or breakthrough,beyond the current industry standard,
28 in the production of materials and products. These advancements
29 include improvements in manufacturing processes and systems
30 that are often referred to as"smart"or"intelligent"manufacturing
31 systems, which integrate computational predictability and
32 operational efficiency.
33 (ii) (I) Sustainable manufacturing systems and manufacturing
34 technologies that minimize the use of resources while maintaining
35 or improving cost and performance.
36 (II) Sustainable manufacturing systems and manufacturing
37 technologies do not include those required to be undertaken
38 pursuant to state or federal law or regulations, air district rules or
39 regulations, memoranda of understanding with a governmental
40 entity, or legally binding agreements or documents. The State Air
99
279
—5— AB 1583
1 Resources Board shall advise the authority to ensure that the
2 requirements of this clause are met.
3 (2) (A) "Advanced transportation technologies" means
4 emerging commercially competitive transportation-related
5 technologies identified by the authority as capable of creating
6 long-term,high-value-added jobs for Californians while enhancing
7 the state's commitment to energy conservation, pollution and
8 greenhouse gas emissions reduction,and transportation efficiency.
9 (B) "Advanced transportation technologies" does not include
10 those projects required to be undertaken pursuant to state or federal
11 law or regulations, air district rules or regulations, memoranda of
12 understanding with a governmental entity, or legally binding
13 agreements or documents. The State Air Resources Board shall
14 advise the authority regarding projects that are excluded pursuant
15 to this subparagraph.
16 (3) (A) "Alternative sources" means devices or technologies
17 used for a renewable electrical generation facility, as defined in
18 paragraph (1) of subdivision (a) of Section 25741, a combined
19 heat and power system, as defined in Section 2840.2 of the Public
20 Utilities Code, distributed generation and energy storage
21 technologies eligible under the self-generation incentive program
22 pursuant to Section 379.6 of the Public Utilities Code, as
23 determined by the Public Utilities Commission, or a facility
24 designed for the production of renewable fuels, the efficient use
25 of which reduces the use of fossil or nuclear fuels, and energy
26 efficiency devices or technologies that reduce the need for new
27 electric generation and reduce emissions of toxic and criteria
28 pollutants and greenhouse gases.
29 (B) "Alternative sources" does not include a hydroelectric
30 facility that does not meet state laws pertaining to the control,
31 appropriation, use, and distribution of water, including, but not
32 limited to, the obtaining of applicable licenses and permits.
33 (4) "Authority" means the California Alternative Energy and
34 Advanced Transportation Financing Authority established pursuant
35 to Section 26004, and any board, commission, department, or
36 officer succeeding to the functions of the authority, or to which
37 the powers conferred upon the authority by this division shall be
38 given.
39 (5) "Cost" as applied to a project or portion of the project
40 financed under this division means all or part of the cost of
99
280
AB 1583 —6—
1 construction and acquisition of all lands,structures,real or personal
2 property or an interest in the real or personal property, rights,
3 rights-of-way, franchises, easements, and interests acquired or
4 used for a project; the cost of demolishing or removing any
5 buildings or structures on land so acquired, including the cost of
6 acquiring any lands to which those buildings or structures may be
7 moved; the cost of all machinery, equipment, and furnishings,
8 financing charges, interest prior to, during, and for a period after,
9 completion of construction as determined by the authority;
10 provisions for working capital; reserves for principal and interest
11 and for extensions, enlargements, additions, replacements,
12 renovations, and improvements; the cost of architectural,
13 engineering, financial, accounting, auditing and legal services,
14 plans,specifications,estimates,administrative expenses,and other
15 expenses necessary or incidental to determining the feasibility of
16 constructing any project or incidental to the construction,
17 acquisition, or financing of a project.
18 (6) "Financial assistance" includes, but is not limited to, loans,
19 loan loss reserves,interest rate reductions,proceeds of bonds issued
20 by the authority, bond insurance, loan guarantees or other credit
21 enhancements or liquidity facilities, contributions of money, or a
22 combination thereof, as determined by, and approved by the
23 resolution of, the board.
24 (7) (A) "Participating party" means a person, federal or state
25 agency, department, board, authority, or commission, state or
26 community college, or university, or a city or county, regional
27 agency, public district, school district, or other political entity
28 engaged in the business or operations in the state, whether
29 organized for profit or not for profit, that applies for financial
30 assistance from the authority for the purpose of implementing a
31 project.
32 (B) (i) For purposes of Section 6010.8 of the Revenue and
33 Taxation Code, "participating party"means an entity specified in
34 subparagraph(A)that seeks financial assistance pursuant to Section
35 26011.8.
36 (ii) For purposes of Section 6010.8 of the Revenue and Taxation
37 Code, an entity located outside of the state, including an entity
38 located overseas, is considered to be a participating party and is
39 eligible to apply for financial assistance pursuant to Section
99
281
-7— AB 1583
1 26011.8 if the participating party commits to, and demonstrates
2 that,the party will be opening a manufacturing facility in the state.
3 (iii) It is the intent of the Legislature by adding clause (ii) to
4 clarify existing law and ensure that an out-of-state entity or
5 overseas entity is eligible to apply for financial assistance pursuant
6 to Section 26011.8.
7 (8) (A) "Project" means a land, building, improvement to the
8 land or building, rehabilitation, work, property, or structure, real
9 or personal, stationary or mobile, including, but not limited to,
10 machinery and equipment utilized in the state, whether or not in
11 existence or under construction, that utilizes, or is designed to
12 utilize, an alternative source, or that is utilized for the design,
13 technology transfer, manufacture, production, assembly,
14 distribution, or service of advanced transportation technologies or
15 alternative source components.
16 (B) "Project," for purposes of Section 26011.8 and Section
17 6010.8 of the Revenue and Taxation Code, is defined in Section
18 26011.8.
19 (9) "Revenue" means all rents, receipts, purchase payments,
20 loan repayments, and all other income or receipts derived by the
21 authority from a project, or the sale, lease, or other disposition of
22 alternative source or advanced transportation technology facilities,
23 or the making of loans to finance alternative source or advanced
24 transportation technology facilities, and any income or revenue
25 derived from the investment of money in any fund or account of
26 the authority.
27 (b) This section shall remain in effect only until January 1,2021,
28 2031, and as of that date is repealed,unless a later enacted statute,
29 that is enacted before January 1, 2021, 2031, deletes or extends
30 that date.
31 SEC. 4. Section 26003 of the Public Resources Code, as
32 amended by Section 258 of Chapter 86 of the Statutes of 2016, is
33 amended to read:
34 26003. (a) As used in this division, unless the context
35 otherwise requires:
36 (1) (A) "Advanced transportation technologies" means
37 emerging commercially competitive transportation-related
38 technologies identified by the authority as capable of creating
39 long-term,high-value-added jobs for Californians while enhancing
99
282
AB 1583 —8
1 the state's commitment to energy conservation, pollution and
2 greenhouse gas emissions reduction,and transportation efficiency.
3 (B) "Advanced transportation technologies" does not include
4 those projects required to be undertaken pursuant to state or federal
5 law or regulations, air district rules or regulations, memoranda of
6 understanding with a governmental entity, or legally binding
7 agreements or documents. The State Air Resources Board shall
8 advise the authority regarding projects that are excluded pursuant
9 to this subparagraph.
10 (2) (A) "Alternative sources" means devices or technologies
11 used for a renewable electrical generation facility, as defined in
12 paragraph (1) of subdivision (a) of Section 25741, a combined
13 heat and power system, as defined in Section 2840.2 of the Public
14 Utilities Code, distributed generation and energy storage
15 technologies eligible under the self-generation incentive program
16 pursuant to Section 379.6 of the Public Utilities Code, as
17 determined by the Public Utilities Commission, or a facility
18 designed for the production of renewable fuels, the efficient use
19 of which reduces the use of fossil or nuclear fuels, and energy
20 efficiency devices or technologies that reduce the need for new
21 electric generation and reduce emissions of toxic and criteria
22 pollutants and greenhouse gases.
23 (B) "Alternative sources" does not include a hydroelectric
24 facility that does not meet state laws pertaining to the control,
25 appropriation, use, and distribution of water, including, but not
26 limited to, the obtaining of applicable licenses and permits.
27 (3) "Authority" means the California Alternative Energy and
28 Advanced Transportation Financing Authority established pursuant
29 to Section 26004, and any board, commission, department, or
30 officer succeeding to the functions of the authority, or to which
31 the powers conferred upon the authority by this division shall be
32 given.
33 (4) "Cost" as applied to a project or portion of the project
34 financed under this division means all or part of the cost of
35 construction and acquisition of all lands,structures,real or personal
36 property or an interest in the real or personal property, rights,
37 rights-of-way, franchises, easements, and interests acquired or
38 used for a project; the cost of demolishing or removing any
39 buildings or structures on land so acquired, including the cost of
40 acquiring any lands to which those buildings or structures may be
99
283
-9— AB 1583
1 moved; the cost of all machinery, equipment, and furnishings,
2 financing charges, interest prior to, during, and for a period after,
3 completion of construction as determined by the authority;
4 provisions for working capital; reserves for principal and interest
5 and for extensions, enlargements, additions, replacements,
6 renovations, and improvements; the cost of architectural,
7 engineering, financial, accounting, auditing and legal services,
8 plans, specifications,estimates,administrative expenses,and other
9 expenses necessary or incidental to determining the feasibility of
10 constructing any project or incidental to the construction,
11 acquisition, or financing of a project.
12 (5) "Financial assistance" includes,but is not limited to,loans,
13 loan loss reserves,interest rate reductions,proceeds of bonds issued
14 by the authority, bond insurance, loan guarantees or other credit
15 enhancements or liquidity facilities, contributions of money, or a
16 combination thereof, as determined by, and approved by the
17 resolution of, the board.
18 (6) (A) "Participating party" means a person, federal or state
19 agency, department, board, authority, or commission, state or
20 community college, or university, or a city or county, regional
21 agency, public district, school district, or other political entity
22 engaged in the business or operations in the state, whether
23 organized for profit or not for profit, that applies for financial
24 assistance from the authority for the purpose of implementing a
25 project.
26 (B) (i) For purposes of Section 6010.8 of the Revenue and
27 Taxation Code, "participating party" means an entity specified in
28 subparagraph(A)that seeks financial assistance pursuant to Section
29 26011.8.
30 (ii) For purposes of Section 6010.8 of the Revenue and Taxation
31 Code, an entity located outside of the state, including an entity
32 located overseas, is considered to be a participating party and is
33 eligible to apply for financial assistance pursuant to Section
34 26011.8 if the participating party commits to, and demonstrates
35 that,the party will be opening a manufacturing facility in the state.
36 (iii) It is the intent of the Legislature by adding clause (ii) to
37 clarify existing law and ensure that an out-of-state entity or
38 overseas entity is eligible to apply for financial assistance pursuant
39 to Section 26011.8.
99
284
AB 1583 —10—
1 (7) (A) "Project" means a land, building, improvement to the
2 land or building, rehabilitation, work, property, or structure, real
3 or personal, stationary or mobile, including, but not limited to,
4 machinery and equipment utilized in the state, whether or not in
5 existence or under construction, that utilizes, or is designed to
6 utilize, an alternative source, or that is utilized for the design,
7 technology transfer, manufacture, production, assembly,
8 distribution, or service of advanced transportation technologies or
9 alternative source components.
10 (B) "Project," for purposes of Section 26011.8 and Section
11 6010.8 of the Revenue and Taxation Code, is defined in Section
12 26011.8.
13 (8) "Revenue" means all rents, receipts, purchase payments,
14 loan repayments, and all other income or receipts derived by the
15 authority from a project, or the sale, lease, or other disposition of
16 alternative source or advanced transportation technology facilities,
17 or the making of loans to finance alternative source or advanced
18 transportation technology facilities, and any income or revenue
19 derived from the investment of money in any fund or account of
20 the authority.
21 (b) This section shall become operative on January 1, 2021.
22 2031.
23 SEC. 5. Section 26011.8 of the Public Resources Code is
24 amended to read:
25 26011.8. (a) The purpose of this section is to promote the
26 creation of California-based manufacturing,California-based jobs,
27 advanced manufacturing, the reduction of greenhouse gases, or
28 reductions in air and water pollution or energy consumption. In
29 furtherance of this purpose, the authority may approve a project
30 for financial assistance in the form of the sales and use tax
31 exclusion established in Section 6010.8 of the Revenue and
32 Taxation Code.
33 (b) For purposes of this section, the following terms have the
34 following meanings:
35 (1) "Project" means tangible personal property if at least 50
36 percent of its use is either to process recycled feedstock that is
37 intended to be reused in the production of another product or using
38 recycled feedstock in the production of another product or soil
39 amendment, or tangible personal property that is used in the state
40 for the design,manufacture,production, or assembly of advanced
99
285
-11— AB 1583
1 manufacturing,advanced transportation technologies,or alternative
2 source products, components, or systems, as defined in Section
3 26003. "Project" does not include tangible personal property that
4 processes or uses recycled feedstock in a manner that would
5 constitute disposal as defined in subdivision(b)of Section 40192.
6 (2) "Recycled feedstock"means materials that would otherwise
7 be destined for disposal, having completed their intended end use
8 and product lifecycle.
9 (3) "Soil amendments" may include "compost," as defined in
10 Section 14525 of the Food and Agricultural Code, "fertilizing
11 material,"as defined in Section 14533 of the Food and Agricultural
12 Code, "gypsum" or "phosphatic sulfate gypsum," as those terms
13 are defined in Section 14537 of the Food and Agricultural Code,
14 or a substance distributed for the purpose of promoting plant
15 growth or improving the quality of crops by conditioning soils
16 through physical means.
17 (c) The authority shall publish notice of the availability of
18 project applications and deadlines for submission of project
19 applications to the authority.
20 (d) The authority shall evaluate project applications based upon
21 all of the following criteria:
22 (1) The extent to which the project develops manufacturing
23 facilities, or purchases equipment for manufacturing facilities,
24 located in California.
25 (2) The extent to which the anticipated benefit to the state from
26 the project equals or exceeds the projected benefit to the
27 participating party from the sales and use tax exclusion.
28 (3) The extent to which the project will create new,permanent
29 jobs in California.
30 (4) To the extent feasible,the extent to which the project, or the
31 product produced by the project, results in a reduction of
32 greenhouse gases,a reduction in air or water pollution,an increase
33 in energy efficiency,or a reduction in energy consumption,beyond
34 what is required by federal or state law or regulation.
35 (5) The extent of unemployment in the area in which the project
36 is proposed to be located.
37 (6) Any other factors the authority deems appropriate in
38 accordance with this section.
39 (e) At a duly noticed public hearing,the authority shall approve,
40 by resolution, project applications for financial assistance.
99
286
AB 1583 —12—
1 (f) Notwithstanding subdivision (j), and without regard to the
2 actual date of any transaction between a participating party and
3 the authority, any project approved by the authority by resolution
4 for the sales and use tax exclusion pursuant to Section 6010.8 of
5 the Revenue and Taxation Code before March 24, 2010, shall not
6 be subject to this section.
7 (g) The Legislative Analyst's Office shall report to the Joint
8 Legislative Budget Committee on the effectiveness of this program,
9 on or before January 1,2019,by evaluating factors, including,but
10 not limited to, the following:
11 (1) The number of jobs created by the program in California.
12 (2) The number of businesses that have remained in California
13 or relocated to California as a result of this program.
14 (3) The amount of state and local revenue and economic activity
15 generated by the program.
16 (4) The types of advanced manufacturing, as defined in
17 paragraph(1) of subdivision (a) of Section 26003, utilized.
18 (5) The amount of reduction in greenhouse gases,air pollution,
19 water pollution, or energy consumption.
20 (h) The exclusions granted pursuant to Section 6010.8 of the
21 Revenue and Taxation Code for projects approved by the authority
22 pursuant to this section shall not exceed one hundred million dollars
23 ($100,000,000) for each calendar year.
24 (i) (1) The authority shall study the efficacy and cost benefit
25 of the sales and use tax exemption as it relates to advanced
26 manufacturing projects.The study shall include the number of jobs
27 created, the costs of each job, and the annual salary of each job.
28 The study shall also consider a dynamic analysis of the economic
29 output to the state that would occur without the sales and use tax
30 exemption. Before January 1, 2017, the authority shall submit to
31 the Legislature, consistent with Section 9795 of the Government
32 Code, the result of the study.
33 (2) Before January 1, 2015, the authority shall, consistent with
34 Section 9795 of the Government Code, submit to the Legislature
35 an interim report on the efficacy of the program conducted pursuant
36 to this section. The study shall include recommendations on
37 program changes that would increase the program's efficacy in
38 creating permanent and temporary jobs, and whether eligibility
39 for the program should be extended or narrowed to other
99
287
-13— AB 1583
1 manufacturing types.The authority may work with the Legislative
2 Analyst's Office in preparing the report and its recommendations.
3 (j) This section shall remain in effect only until January 1,2021,
4 2031, and as of that date is repealed, unless a later enacted statute,
5 that becomes operative on or before January 1, 2021, deletes or
6 extends that date.The sale or purchase of tangible personal property
7 of a project approved before January 1,2021,2031, shall continue
8 to be excluded from sales and use taxes pursuant to Section 6010.8
9 of the Revenue and Taxation Code for the period of time set forth
10 in the authority's resolution approving the project pursuant to this
11 section.
12 SEC. 6. Section 42003 is added to the Public Resources Code,
13 to read:
14 42003. (a) This section shall be known, and may be cited, as
15 the Paper Recycling Infrastructure Development Incentive Program.
16 (b) Upon appropriation by the Legislature for purposes of this
17 section,the department shall establish a paper recycling incentive
18 program that makes incentive payments to in-state processors of
19 waste paper, including, but not limited to, pulping or milling
20 facilities.
21 (c) Recipients of incentive payments pursuant to this section
22 shall meet specified criteria,as established by the department,that
23 are consistent with achieving the state policy goal established in
24 Section 41780.01.
25 SEC. 7. Section 42004 is added to the Public Resources Code,
26 to read:
27 42004. (a) This section shall be known, and may be cited, as
28 the Organic Waste Recycling Infrastructure Development Incentive
29 Program.
30 (b) Upon appropriation by the Legislature for purposes of this
31 section, the department shall establish an organic waste recycling
32 incentive program that makes incentive payments to in-state
33 organic waste recycling facilities that process organic waste
34 collected from municipal sources, including, but not limited to,
35 composting, anaerobic digestion, and food recovery facilities.
36 (c) Recipients of incentive payments pursuant to this section
37 shall meet specified criteria,as established by the department,that
38 are consistent with achieving the state policy goals established in
39 Section 39730.6 of the Health and Safety Code.
99
288
AB 1583 —14—
1 SEC. 8. Section 42005.5 is added to the Public Resources Code,
2 to read:
3 42005.5. (a) The department shall, by July 1, 2020, convene
4 a Statewide Commission on Recycling Markets and Curbside
5 Recycling consisting of representatives of public agencies,private
6 solid waste enterprises, and environmental organizations with
7 expertise in recycling.
8 (b) (1) The commission shall, by January 1, 2021, do both of
9 the following:
10 (A) Issue policy recommendations to achieve the market
11 development goals established in subdivision(b)of Section 42005
12 and the state policy goals established in Section 41780.01 of this
13 code and Section 39730.6 of the Health and Safety Code.
14 (B) Identify products that are recyclable or compostable, as
15 defined pursuant to Section 42370.2, and regularly collected in
16 curbside recycling programs.
17 (2) The commission shall update the recommendations and
18 identifications made pursuant to paragraph (1) regularly, but not
19 less often than annually.
20 (c) The commission shall provide regular feedback to the
21 department on public messaging designed to encourage proper
22 recycling and to minimize contamination in curbside recycling
23 programs.
24 SEC. 9. Section 42023.1 of the Public Resources Code is
25 amended to read:
26 42023.1. (a) The Recycling Market Development Revolving
27 Loan Subaccount is hereby created in the account for the purpose
28 of providing loans for purposes of the Recycling Market
29 Development Revolving Loan Program established pursuant to
30 this article and for making payments pursuant to subdivision(g).
31 (b) Notwithstanding Section 13340 of the Government Code,
32 the moneys deposited in the subaccount are hereby continuously
33 appropriated to the department without regard to fiscal year for
34 making loans pursuant to this article and for making payments
35 pursuant to subdivision (g).
36 (c) The department may expend interest earnings on moneys in
37 the subaccount for administrative expenses incurred in carrying
38 out the Recycling Market Development Revolving Loan Program,
39 upon the appropriation of moneys in the subaccount for that
40 purpose in the annual Budget Act.
99
289
-15— AB 1583
1 (d) The moneys from loan repayments and fees, including, but
2 not limited to,principal and interest repayments, fees and points,
3 recovery of collection costs, income earned on an asset recovered
4 pursuant to a loan default,and funds collected through foreclosure
5 actions shall be deposited in the subaccount.
6 (e) All interest accruing on interest payments from loan
7 applicants shall be deposited in the subaccount.
8 (f) The department may expend the moneys in the subaccount
9 to make loans to local governing bodies, private businesses, and
10 nonprofit entities within recycling market development zones, or
11 in areas outside zones where partnerships exist with other public
12 entities to assist local jurisdictions to comply with Section 40051.
13 (g) The department may expend the moneys in the subaccount
14 to make payments to local governing bodies within a recycling
15 market zone for services related to the promotion of the zone. The
16 services may include, but are not limited to, training, outreach,
17 development of written promotional materials, and technical
18 analyses of feedstock availability.
19 (h) The department shall not fund a loan until it determines that
20 the applicant has obtained all significant applicable federal, state,
21 and local permits.The department shall deteiiuine which applicable
22 federal, state, and local permits are significant.
23 (i) The department shall establish and collect fees for
24 applications for loans authorized by this section. The application
25 fee shall be set at a level that is sufficient to fund the department's
26 cost of processing applications for loans. In addition, the
27 department shall establish a schedule of fees or points for loans
28 that are entered into by the department, to fund the department's
29 administration of the revolving loan program.
30 (j) The department may expend moneys in the subaccount for
31 the administration of the Recycling Market Development
32 Revolving Loan Program, upon the appropriation of moneys in
33 the subaccount for that purpose in the annual Budget Act. In
34 addition, the department may expend moneys in the account to
35 administer the revolving loan program, upon the appropriation of
36 moneys in the account for that purpose in the annual Budget Act.
37 However, funding for the administration of the revolving loan
38 program from the account shall be provided only if there are not
39 sufficient moneys in the subaccount to fully fund the administration
40 of the program.
99
290
AB 1583 —16—
1 (k) The department, pursuant to subdivision (a) of Section
2 47901, may set aside moneys for the purposes of paying costs
3 necessary to protect the state's position as a lender-creditor. These
4 costs shall be broadly construed to include, but not be limited to,
5 foreclosure expenses, auction fees, title searches, appraisals, real
6 estate brokerage fees, attorney's fees, mortgage payments,
7 insurance payments,utility costs,repair costs,removal and storage
8 costs for repossessed equipment and inventory, and additional
9 expenditures to purchase a senior lien in foreclosure or bankruptcy
10 proceedings.
11 (l) (1) Except as provided in paragraph (2), this section shall
12 become inoperative on July 1, 2021, 2031, and as of January 1,
13 2022, 2032, is repealed, unless a later enacted statute, which
14 becomes effective on or before January 1, 2022, 2032, deletes or
15 extends the date on which it becomes inoperative and is repealed.
16 (2) The repeal of this section pursuant to paragraph (1) shall
17 not extinguish any loan obligation or the authority of the state to
18 pursue appropriate actions for the collection of a loan.
19 SEC. 10. Section 42023.2 of the Public Resources Code is
20 amended to read:
21 42023.2. (a) Upon authorization by the Legislature in the
22 annual Budget Act,the Controller shall transfer a sum,as available,
23 from the account to the subaccount as necessary to meet anticipated
24 loan demand under the program.
25 (b) (1) Except as provided in paragraph (2), this section shall
26 become inoperative on July 1, 2021, 2031, and as of January 1,
27 2022, 2032, is repealed, unless a later enacted statute, which
28 becomes effective on or before January 1, 2022, 2032, deletes or
29 extends the date on which it becomes inoperative and is repealed.
30 (2) (A) The repeal of this section pursuant to paragraph (1)
31 shall not extinguish any loan obligation or the authority of the state
32 to pursue appropriate actions for the collection of a loan.
33 (B) The department shall not be obligated to pay interest on the
34 amount appropriated from the account to the subaccount pursuant
35 to subdivision (a). This subparagraph shall apply retroactively
36 from January 1, 1992.
37 SEC. 11. Section 42023.3 of the Public Resources Code is
38 amended to read:
39 42023.3. (a) All money remaining in the subaccount on July
40 1, 2021, 2031, and all money received as repayment and interest
99
291
-17— AB 1583
1 on loans shall, as of July 1, 2021, 2031, be transferred to the
2 account and any money due and outstanding on loans as of July
3 1, 2021, 2031, shall be repaid to the department and deposited by
4 the department in the account until paid in full, except that, upon
5 authorization by the Legislature in the annual Budget Act,interest
6 earnings may be expended for administrative costs associated with
7 the collection of outstanding loan accounts.
8 (b) (1) Except as provided in paragraph (2), this section shall
9 become inoperative on July 1, 2021, 2031, and as of January 1,
10 2022, 2032, is repealed, unless a later enacted statute, which
11 becomes effective on or before January 1, 2022, 2032, deletes or
12 extends the dates on which it becomes inoperative and is repealed.
13 (2) The repeal of this section pursuant to paragraph (1) shall
14 not extinguish any loan obligation or the authority of the state to
15 pursue appropriate actions for the collection of a loan.
16 SEC. 12. Section 42023.4 of the Public Resources Code is
17 amended to read:
18 42023.4. (a) A loan made pursuant to Section 42023.1 shall
19 be subject to all of the following requirements:
20 (1) The terms of an approved loan shall be specified in a loan
21 agreement between the borrower and the department. The loan
22 agreement shall include a requirement that the failure to comply
23 with the agreement shall result in any remaining unpaid amount
24 of the loan, with accrued interest, being immediately due and
25 payable. Notwithstanding any term of the agreement, a recipient
26 of a loan that the department approves shall repay the principal
27 amount, plus interest on the basis of the rate of return for money
28 in the Surplus Money Investment Fund at the time of the loan
29 commitment. All money received as repayment and interest on
30 loans made pursuant to this section shall be deposited in the
31 subaccount.
32 (2) The term of a loan made pursuant to this section shall be
33 not more than 10 years when collateralized by assets other than
34 real estate, or not more than 15 years when partially or wholly
35 collateralized by real estate.
36 (3) The department shall approve only those loan applications
37 that demonstrate the applicant's ability to repay the loan. The
38 highest priority for funding shall be given to projects that
39 demonstrate that the project will increase market demand for
40 recycling the project's type of postconsumer waste material.
99
292
AB 1583 —18—
1 (4) The department shall not finance more than three-fourths
2 of the cost of a project or two million dollars ($2,000,000),
3 whichever is less.
4 (5) The Department of Finance may audit the expenditure of
5 the proceeds of a loan made pursuant to Section 42023.1 and this
6 section.
7 (b) (1) Except as provided in paragraph (2), this section shall
8 become inoperative on July 1, 2021, 2031, and as of January 1,
9 2022, 2032, is repealed, unless a later enacted statute, which
10 becomes effective on or before January 1, 2022, 2032, deletes or
11 extends the dates on which it becomes inoperative and is repealed.
12 (2) The repeal of this section pursuant to paragraph (1) shall
13 not extinguish any loan obligation or the authority of the state to
14 pursue appropriate actions for the collection of a loan.
15 SEC. 13. Section 42023.5 of the Public Resources Code is
16 amended to read:
17 42023.5. (a) The department shall,as part of the annual report
18 to the Legislature,pursuant to Section 40507, include a report on
19 the performance of the Recycling Market Development Revolving
20 Loan Program, including the number and size of loans made,
21 characteristics of loan recipients, projected loan demand, and the
22 cost of administering the program.
23 (b) This section shall become inoperative on July 1,2021,2031,
24 and as of January 1,2022,2032, is repealed,unless a later enacted
25 statute, which becomes effective on or before January 1, 2022,
26 2032, deletes or extends the date on which it becomes inoperative
27 and is repealed.
28 SEC. 14. Section 42023.6 of the Public Resources Code is
29 amended to read:
30 42023.6. (a) The department shall encourage applicants to
31 seek participation from private financial institutions or other public
32 agencies. For purposes of enabling the department and local
33 agencies to comply with Sections 40051 and 41780,the department
34 may participate,in an amount not to exceed five hundred thousand
35 dollars($500,000),in the Capital Access Loan Program as provided
36 in Article 8 (commencing with Section 44559) of Chapter 1 of
37 Division 27 of the Health and Safety Code.
38 (b) For purposes of participating in the Capital Access Loan
39 Program, as specified in subdivision (a), or in a program that
99
293
-19— AB 1583
1 leverages subaccount funds, the department may operate both
2 inside and outside the recycling market development zones.
3 (c) (1) Except as provided in paragraph (2), this section shall
4 become inoperative on July 1, 2021, 2031, and as of January 1,
5 2022, 2032, is repealed, unless a later enacted statute, which
6 becomes effective on or before January 1, 2022, 2032, deletes or
7 extends the date on which it becomes inoperative and is repealed.
8 (2) The repeal of this section pursuant to paragraph (1) shall
9 not extinguish any loan obligation or the authority of the state to
10 pursue appropriate actions for the collection of a loan.
11 SEC. 15. Section 6010.8 of the Revenue and Taxation Code,
12 as amended by Section 15 of Chapter 645 of the Statutes of 2018,
13 is amended to read:
14 6010.8. (a) (1) "Sale"and"purchase"do not include any lease
15 or transfer of title of tangible personal property constituting any
16 project to any participating party.
17 (2) On and after the operative datc of the act adding this
18 paragraph, September 21, 2018, "sale" and "purchase" do not
19 include any lease or transfer of title of tangible personal property
20 constituting any project to any contractor for use in the perfoiivance
21 of a construction contract for the participating party that will use
22 that property as an integral part of the approved project.
23 (b) As used in this section, "project"has the meaning specified
24 in subparagraph(B)of paragraph(8)of subdivision(a)of Section
25 26003 of the Public Resources Code and"participating party"has
26 the meaning specified in subparagraph (B) of paragraph (7) of
27 subdivision (a) of Section 26003 of the Public Resources Code.
28 (c) This section shall remain in effect only until January 1,2021,
29 2031, and as of that date is repealed,unless a later enacted statute,
30 that is enacted before January 1, 2021, 2031, deletes or extends
31 that date.
32 SEC. 16. Section 6010.8 of the Revenue and Taxation Code,
33 as amended by Section 6 of Chapter 788 of the Statutes of 2015,
34 is amended to read:
35 6010.8. (a) "Sale"and"purchase"do not include any lease or
36 transfer of title of tangible personal property constituting any
37 project to any participating party.As used in this section,"project"
38 has the meaning specified in subparagraph (B) of paragraph (7)
39 of subdivision(a) of Section 26003 of the Public Resources Code
40 and"participating party"has the meaning specified in subparagraph
99
294
AB 1583 —20—
1 (B) of paragraph (6) of subdivision (a) of Section 26003 of the
2 Public Resources Code.
3 (b) This section shall become operative on January 1, 2021.
4 2031.
0
99
295
ATTACHMENT #6
A 0,41 . Cityof Huntington Beach
d g
O` -_x„ 2000 MAIN STREET CALIFORNIA 92648
1 Erik Peterson
Mayor
April 16, 2019
The Honorable Stephen Lynch
United States House of Representatives
2109 Rayburn House Office Building
Washington, DC 20515
RE: SUPPORT FOR THE AIR TRAFFIC NOISE AND POLLUTION EXPERT CONSENSUS
Dear Congressman Lynch:
On behalf of the City of Huntington Beach, I am writing to express our support for your bill, the Air Traffic
Noise and Pollution Expert Consensus, which would require the Federal Aviation Administration (FAA)
and the National Academies of Sciences, Engineering, and Medicine to convene a committee of experts
to examine the health impacts of air traffic noise and pollution. The City of Huntington Beach, like so
many other cities across California, has struggled with air traffic noise pollution and believes that the
issue demands serious study.
The City of Huntington Beach is positioned near both the Long Beach Airport and John Wayne Airport,
which has always resulted in an audible level of air traffic noise in our city limits. However, the City has
observed an increase in noise complaints as the FAA has implemented its Next Generation Air
Transportation System (NextGen), which created new flight paths designed to minimize travel time and
flight length, and subsequently increased airplane activity over our residential areas.
At City Council meetings and out in our community, we hear first-hand from our residents impacted by air
traffic noise. We hear their stories of mental and physical health impacts, including headaches, sleep
interruption and deprivation, anxiety, and depression. To that end, the City Council created a Jet Noise
Commission to advise City Council on issues related to jet noise. Although the impacts are clear to our
residents who live with air traffic noise daily, we lack definitive studies of the impacts to refer to in our
conversations with the FAA. Your bill would give FM decisionmakers crucial and reliable data as FAA
continues to implement NextGen nationwide.
Thank you for your time and consideration of the City's views. We appreciate the challenges that you and
your colleagues face in creating a path forward to accommodate both technological improvements in
aviation and citizen wellbeing. We are grateful for your efforts to establish guidelines for this issue, and
we look forward to continuing to work with you.
Sincerely,
Erik Peterson
Mayor
City of Huntington Beach
xc: Congressman Harley Rouda
Senator Dianne Feinstein
Senator Kamala Harris
Manly,Australia TELEPHONE(714) 536-5553 Anjul apan
FAX.(714)536-5233
ATTACHMENT #7
ill Jr i' -"-o , 'I ,.3§ ,,,:
‘,�WPpv 100 Civic Center Drive
A Newport Beach California 92660
O :�k p\��� y � V"
�� , trk 949 644-3004 1949 644-3039 FAX
\ti ��
r,ewportbeachca.gov
0' ZJ
`' OR � 47
ltir
March 25, 2019
Mayor
Diane Brooks Dixon
Mayor Pro Tem
Will O'Neill Lisa A. Bartlett, Chairwoman
Council Members Orange County Board of Supervisors
Brad Avery 333 W. Santa Ana Blvd.
Joy Brenner Santa Ana, CA 92701
Marshall"Duffy"Duffield
Jeff Herdman
Kevin Muldoon RE: John Wayne Airport General Aviation Improvement Project
Chairwoman Bartlett and Members of the Orange County Board of
Supervisors:
After extensive review of the Draft Environmental Impact Report (DEIR)
for John Wayne Airport's proposed General Aviation Improvement
Project (GAIP) the Newport Beach City Council unanimously voted to
endorse Alternative #3 pursuant to the GAIP DEIR.
The City of Newport Beach (City) understands the need for updating
John Wayne Airport's current general aviation facilities to Federal
Aviation Administration (FAA) standards and it endorsed such action
with its support of Alternative #3. However, the GAIP, as currently
structured, goes well beyond that. As presented in the DEIR, it would
introduce commercial operations into the normal sphere of influence of
general aviation (GA) and encourage international travel as well as
commercial operations at privately operated, Fixed Base Operators
(FBOs). While the GAIP speaks of modernization, the City's residents
instead see the burden of more GA jet operations, diminished air
quality, additional noise, and flights operating at all hours. Equally
important, any actions concerning the GAIP must take into account
safety, security and accountability for and to all, not just the select few
passengers partaking in GA jet travel.
Pending further environmental review, the City believes Alternative #3
is the least impactful for the Newport Beach community. It allows for
the updating of airport's GA facilities to current FAA standards, would
not expand general aviation facilities at the FBOs, nor would it
significantly alter the airport's current mix of GA aircraft that are based
at the airport. It would also result in the least amount of GA jet
operations by the year 2026.
ice of tte maypi-_24,14% JA.4,4:- ry
Letter to Lisa A.Bartlett
March 25,2019
Page 2
The County of Orange has achieved what no other jurisdiction in the nation has
been able to do by putting protections in place and managing JWA in a manner
that helps to mitigate the airport's operations on the surrounding communities. Any
proposal that seeks to limit the County's involvement, by shifting certain
responsibilities to private companies operating at the airport, must be resisted.
Airport security, as the Board has recognized in the past, is of utmost importance.
Security for international travel should be processed in the Thomas F. Riley
Terminal along with the processing of all commercial passengers where it has, until
recently, historically taken place. As current national and international events have
demonstrated, safety and security shall always remain of utmost importance.
On behalf of the Newport Beach City Council, I respectfully request that the Board
of Supervisors adopts Alternative #3. Should any member of the Board or their
representatives wish to discuss the matter in more detail, offer further explanation
of the GAIP, or assurances of the County's actions, the City would be happy to
meet at your convenience.
Thank you for your anticipated professional courtesy and cooperation.
Sincerely,
Diane Brooks Dix.n
Mayor
298