BILL NUMBER: AB 1230 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 24, 2015
INTRODUCED BY Assembly Member Gomez
FEBRUARY 27, 2015
An act to amend Section 65858 of the Government Code,
relating to land use. An act to add Part 7.1
(commencing with Section 15427) to Division 3 of Title 2 of the
Government Code, relating to state government, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1230, as amended, Gomez. Zoning regulations: interim
ordinances. California Americans with Disabilities Act
Small Business Compliance Financing Act.
Existing law provides various programs to expand access to persons
with disabilities and promote compliance with the federal Americans
with Disabilities Act of 1990. Existing law authorizes a specified
authority to make loans, funded by bonds issuances, to health
facilities to assist those participating health facilities lower the
costs of financing certain kinds of projects in order to pass along
those savings to the public paying for healthcare at those
facilities.
This bill would enact the California Americans with Disabilities
Act Small Business Compliance Financing Authority Act to establish a
self-sustaining program to provide loans, funded in part by bond
issuances, to assist small businesses finance the costs of projects
that alter or retrofit existing small business facilities to comply
with the federal American with Disabilities Act. This bill would
specify that any bonds issued under the act do not constitute a debt
or liability of the state or a pledge of the faith and credit of the
state, other than the California Americans with Disabilities Act
Small Business Compliance Financing Authority.
This bill would establish in state government the California
Americans with Disabilities Act Small Business Compliance Financing
Authority, composed of seven specified members. This bill would
require the Treasurer, as chair of the authority, to appoint an
executive director who serves at the pleasure of the authority. This
bill would require the authority to comply with existing open meeting
and public record disclosure laws, as specified.
This bill would establish the California Americans with
Disabilities Act Small Business Compliance Financing Authority Fund,
as a continuously appropriated fund, and require the authority to use
the fund for all its purposes. This bill would also transfer
$50,000,000 from the General Fund to the California Americans with
Disabilities Act Small Business Compliance Financing Authority Fund.
The Planning and Zoning Law authorizes the legislative body of a
city, including a charter city, a county, or a city and county under
specified conditions to adopt for a period of 45 days as an urgency
measure an interim ordinance prohibiting any uses that may be in
conflict with a contemplated general plan, specific plan, or zoning
proposal that the legislative body, the planning commission, or the
planning department is considering or studying or intends to study
within a reasonable time. The law also authorizes prescribed
extensions of the interim ordinance, subject to specified conditions.
The law further requires the legislative body to issue a written
report describing the measures taken to alleviate the condition which
led to the adoption of the interim ordinance at least 10 days prior
to the expiration of the interim ordinance or any extension.
This bill would instead require the written report to be issued 15
days prior to the expiration of the interim ordinance or any
extension.
Vote: majority 2/3 . Appropriation:
no yes . Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Part 7.1 (commencing with Section
15427) is added to Division 3 of Title 2 of the Government
Code , to read:
PART 7.1. California Americans with Disabilities Act Small
Business Compliance Financing Authority
CHAPTER 1. GENERAL PROVISIONS
15427. This act shall be known and may be cited as the California
Americans with Disabilities Act Small Business Compliance Financing
Authority Act.
15427.2. It is the intent of the Legislature in this act to
establish a self-sustaining program to provide loans to assist small
businesses in complying with the Americans with Disabilities Act. It
is not the intent of the Legislature to fund the physical expansion
of small businesses that includes modifications that comply with the
Americans with Disabilities Act, or to authorize the authority to
control or participate in the operation of a small business except to
the extent necessary to secure payment by a small business that
defaulted on a loan to the authority, and then only to the extent
that complies with the loan agreement between that small business and
the authority.
15427.4. Unless the context requires otherwise, as used in the
act the following words and terms shall have the following meanings:
(a) "Act" means the California Americans with Disabilities Act
Small Business Compliance Financing Authority Act enacted pursuant to
this part.
(b) "Americans with Disabilities Act" means the federal Americans
with Disabilities Act (42 U.S.C. 12101, et seq.) and amendments
thereto.
(c) "Authority" means the California Americans with Disabilities
Act Small Business Compliance Financing Authority created by the act
or any board, body, commission, department, or officer acting under
the authorization of the act.
(d) "Cost" means and includes all or any part of the price of
construction, purchase price of real or personal property, the price
of demolishing or removing any buildings or structures, the price of
all machinery and equipment, the amount of financing charges and
interest prior to, during, and for a period not to exceed the later
of one year or one year following completion of construction, as
determined by the authority, the price of insurance during
construction, the amount of funding or financing noncapital expenses,
the amount of reserves for principal and interest and for
extensions, enlargements, additions, replacements, renovations and
improvements, the price of engineering, financial and legal services
and other service contracts, the price of plans, specifications,
studies, surveys, estimates, administrative expenses, and any other
expenses of funding or financing, that are necessary or incidental to
determining the total payment necessary to complete a project.
(e) "Fund" means the California Americans with Disabilities Act
Small Business Compliance Financing Authority Fund established by
Section 15427.24.
(f) "Project" means the physical alterations or retrofits to an
existing small business facility of less than 5,000 square feet
necessary to ensure that facility is in compliance with the Americans
with Disability Act, and the financing necessary to pay all costs of
the project.
(g) "Small business" means a business located in California that
meets all of the following criteria:
(1) Less than six full-time equivalent employees.
(2) Less than one million dollars ($1,000,000) in total gross
annual income from all sources.
(3) Does not provide overnight accommodations.
CHAPTER 2. THE CALIFORNIA AMERICANS WITH DISABILITIES ACT
SMALL BUSINESS COMPLIANCE FINANCING AUTHORITY
15427.6. There is in state government the California Americans
with Disabilities Act Small Business Compliance Financing Authority.
15427.8. The California Americans with Disabilities Act Small
Business Compliance Financing Authority constitutes a public
instrumentality, and the exercise by the authority of the powers
conferred by the act shall be deemed and held to be the performance
of an essential public function.
15427.10. (a) The authority shall be composed of the following
seven members:
(1) The Treasurer, who shall serve as the chair.
(2) The Controller.
(3) The Director of Finance.
(4) The Director of General Services.
(5) One member appointed by the Senate Committee on Rules who
shall have specialized knowledge or experience with accessibility
issues for people with disabilities.
(6) One member appointed by the Speaker of the Assembly who shall
be the owner of a small business or a member of an organization that
represents the interests of small businesses.
(7) One member appointed by the Governor, subject to confirmation
by a majority vote of the Senate, who shall be a member of the State
Bar of California with professional experience in consumer protection
laws.
15427.12. (a) Each member shall serve a term of four years. An
individual appointed to fill a vacancy occurring during a term of
office shall only serve the remainder of the unexpired term.
(b) At the expiration of his or her four-year term, a member shall
continue to hold office until the successor has been appointed and
qualifies to begin serving.
(c) A member shall be eligible for reappointment.
(d) Members of the authority shall serve without compensation, but
the authority may reimburse members for necessary expenses incurred
in the discharge of their duties.
(e) This section shall only apply to the members appointed by the
Senate Committee on Rules, the Speaker of the Assembly, and the
Governor.
15427.14. The Director of Finance and the Director of General
Services may designate an employee in his or her department to act
for him or her at meetings of the authority.
15427.16. The State Treasurer, in his or her capacity as the
chair, shall appoint an executive director, who shall not be a member
of the authority and who shall serve at the pleasure of the
authority. The executive director shall receive compensation fixed by
the authority.
15427.18. (a) The executive director or the person designated by
the authority in a resolution shall keep a record of the proceedings
of the authority and be the custodian of the official seal, the
minute book or journal, and all records and documents of the
authority.
(b) The executive director or the person designated by the
authority in a resolution may provide a copy of a record of any
proceeding of the authority or any other records and documents of the
authority and may give a certificate under the official seal of the
authority that the copy is a true copy, and all persons dealing with
the authority may rely upon that certificate.
15427.20. (a) The affirmative vote of a majority of a quorum
shall be necessary for the authority to take any action. Four members
of the authority shall constitute a quorum, regardless of any
vacancies in the membership of the authority.
(b) Resolutions of the authority need not be published or posted.
(c) (1)The authority may delegate by resolution to one or more of
its members or the executive director the powers and duties the
authority deems proper.
(2) The authority may delegate to the executive director or an
employee of the authority the powers and duties the authority deems
proper, including, but not limited to, the power to enter into
contracts on behalf of the authority.
15427.22. The authority shall comply with the Bagley-Keene Open
Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1
of Part 1) and the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1).
CHAPTER 3. THE CALIFORNIA AMERICANS WITH DISABILITIES ACT
SMALL BUSINESS COMPLIANCE FINANCING AUTHORITY FUND
15427.24. (a) The California Americans with Disabilities Act
Small Business Compliance Financing Authority Fund is established in
the State Treasury. Notwithstanding Section 13340, all money in the
fund is continuously appropriated to the authority for carrying out
the purposes of the act. The authority may divide the fund into
separate accounts. All moneys accruing to the authority pursuant to
the act from any source shall be deposited into the fund.
(b) Subject to the cost of loans provided by the authority
pursuant to the act and subject further to any reasonable costs that
may be incurred by the authority in administering the act, all moneys
in the fund derived from any source shall be held in trust for the
security and payment of bonds of the authority and shall not be used
or pledged for any other purpose so long as the bonds are outstanding
and unpaid. However, nothing in this section shall limit the power
of the authority to make loans with the proceeds of bonds in
accordance with the terms of the resolution authorizing the same or
pledging or granting a security interest to the provider of credit
support as specified in the documents pursuant to which revenue bonds
are issued.
(c) (1) The authority may pledge any or all of the moneys in the
fund as security for payment of the principal of, and interest on,
any secured or unsecured loan made pursuant to the act or as
necessary or convenient to the accomplish any purpose of the
authority.
(2) Pursuant to any agreements with the holders of particular
bonds pledging any particular assets, revenues, or moneys, the
authority may create separate accounts in the fund to manage assets,
revenues, or moneys in the manner set forth in the agreements.
(d) The authority may direct the Treasurer to invest moneys in the
fund that are not required for its current needs, including proceeds
from the sale of any bonds, in the eligible securities specified in
Section 16430 as the authority shall designate. The authority may
direct the Treasurer to deposit moneys in interest-bearing accounts
in state or national banks or other financial institutions having
principal offices located in the state. The authority may
alternatively require the transfer of moneys in the fund to the
Surplus Money Investment Fund for investment pursuant to Article 4
(commencing with Section 16470) of Chapter 3 of Part 2 of Division 4.
All interest or other increment resulting from an investment or
deposit shall be deposited into the fund, notwithstanding Section
16305.7. Moneys in the fund shall not be subject to transfer to any
other fund pursuant to any provision of Part 2 (commencing with
Section 16300) of Division 4, excepting the Surplus Money Investment
Fund.
15427.26. All expenses of the authority incurred in carrying out
the provisions of the act shall be payable solely from funds and
authority provided to the authority.
CHAPTER 4. POWERS AND DUTIES OF THE CALIFORNIA AMERICANS WITH
DISABILITIES ACT SMALL BUSINESS COMPLIANCE FINANCING AUTHORITY
15427.28. (a) The authority shall administer the act and is
vested with all powers reasonably necessary to carry out the duties
expressly granted or imposed under the act.
(b) The authority shall establish financial eligibility standards
for each small business seeking financing from the authority by
studying the creditworthiness and earning capacity of the small
business, the impact of new debt and the completion of the project on
the small business, and the amount of pledged revenues, debt service
coverage, and basic security.
15427.30. The authority may do any of the following:
(a) Adopt bylaws for the regulation of its affairs and the conduct
of its business.
(b) Adopt an official seal.
(c) Sue and be sued in its name.
(d) Receive and accept gifts, grants, or donations of money for
achieving any purpose of the act from any agency of the federal
government, another state entity, a city, county, city and county,
any other political subdivision of the state, an individual,
association, or corporation.
(e) Engage private consultants to provide professional and
technical services and advice in carrying out the purposes of the
act.
(f) Determine the location and character of any project to be
financed under the act; acquire, construct, enlarge, remodel,
renovate, alter, improve, furnish, equip, fund, finance, own,
maintain, manage, repair, operate, lease as lessee or lessor, and
regulate a project under the act and enter into contracts for any or
all of those purposes; enter into contracts for the management and
operation of a project or other small business facilities owned by
the authority; designate a participating property manager as its
agent to determine the location and character of a project undertaken
by that participating small business under the act and, as the agent
of the authority, acquire, construct, enlarge, remodel, renovate,
alter, improve, furnish, equip, own, maintain, manage, repair,
operate, lease as lessee or lessor, and regulate the same and, as the
agent of the authority, to enter into contracts for any or all of
those purposes, including contracts for the management and operation
of that project or other small business facilities owned by the
authority.
(g) Receive and accept from any source loans, contributions, or
grants for, or in aid of, the construction, financing, or refinancing
of a project or any portion of a project in money, property, labor,
or other things of value.
(h) Make secured or unsecured loans to, or purchase secured or
unsecured loans of, any participating small business in connection
with financing the costs of a project in accordance with an agreement
between the authority and the participating small business. However,
the authority shall not make any loan to a small business to finance
the cost of a project that exceeds the lesser of $50,000 or the
total cost of the project, as determined by the participating small
business and approved by the authority. The authority shall not make
a loan to a small business with a repayment period of 60 months or
longer, except if the project is located on real property that is
leased. If the project is located on real property that is leased,
the repayment period shall not exceed the term of the lease,
excluding any option to extend the lease. The authority shall only
make a loan that includes an interest rate that equals the pooled
money investment rate at the time the loan is approved and is
sufficient to repay the reasonable pro rata expenses of the authority
to administer the loan, including, but not limited to, the costs of
issuing revenue bonds to fund the loan.
(i) Enter into any and all agreements or contracts, including
agreements for liquidity or credit enhancement, bond exchange
agreements, interest rate swaps or hedges; execute any and all
instruments; and do and perform any and all acts or things necessary,
convenient, or desirable for the purposes of the authority or to
carry out any power expressly granted by the act.
(j) Invest any moneys held in reserve or sinking funds or any
moneys not required for immediate use or disbursement, at the
discretion of the authority, in any obligations authorized by the
resolution authorizing the issuance of the bonds secured thereof or
authorized by law for the investment of trust funds in the custody of
the Treasurer.
(k) The authority may require any information it deems necessary
and prudent prior to providing a loan to a small business and may
require any term, condition, security, or repayment provision it
deems necessary in the event the authority chooses to provide a loan.
15427.32. (a) The authority is authorized to issue revenue bonds
to provide funds for achieving any of the purposes under the act.
(b) Except as expressly provided otherwise by the authority,
revenue bonds shall be payable from any revenues or moneys of the
authority available therefor and not otherwise pledged, subject only
to any agreements with the holders of particular bonds or notes
pledging any particular revenues or moneys. Negotiable bonds shall be
and be deemed to be for all purposes negotiable instruments,
notwithstanding that these bonds may be payable from a special fund,
subject only to the provisions of these bonds for registration.
(c) The authority's revenue bonds may be issued as serial bonds or
as term bonds, or the authority, in its discretion, may issue bonds
of both types. The issuance of all revenue bonds shall be authorized
by resolution of the authority and shall bear such date or dates,
mature at such time or times, not exceeding 40 years from their
respective dates, bear interest at such rate or rates, be payable at
such time or times, be in such denominations, be in such form, either
coupon or registered, carry such registration privileges, be
executed in such manner, be payable in lawful money of the United
States of America at such place or places, and be subject to such
terms of redemption, as the indenture, trust agreement, or resolution
relating to these revenue bonds may provide. The authority's revenue
bonds or notes may be sold by the Treasurer at public or private
sale, after giving due consideration to the recommendation of the
participating small business, for the price or prices and upon the
terms and conditions as the authority shall determine. The Treasurer
may sell these revenue bonds at a price below the par value thereof.
However, the discount on any bonds so sold shall not exceed 6 percent
of the par value thereof, except in the case of any bonds payable in
whole or in part from moneys held under one or more outstanding
resolutions or indentures. Pending preparation of the definitive
bonds, the authority may issue interim receipts or certificates or
temporary bonds which shall be exchanged for such definitive bonds.
(d) A resolution or resolutions authorizing the issuance of any
revenue bonds or any issue of revenue bonds may contain provisions,
which shall be a part of the contract with the holders of the bonds
to be authorized, as to pledging all or any part of the revenues of a
project or any revenue-producing contract or contracts made by the
authority with an individual, partnership, corporation or association
or other body, public or private, to secure the payment of the bonds
or of a particular issue of bonds.
(e) Neither the members of the authority nor any person executing
the revenue bonds shall be liable personally on the bonds or be
subject to any personal liability or accountability by reason of the
issuance thereof.
(f) The authority may purchase its bonds with any moneys available
to the authority for this purpose. The authority may exchange bonds
for its bonds. The authority may hold, pledge, exchange, cancel, or
resell these bonds, subject to and in accordance with its agreements
with bondholders.
15427.34. In the discretion of the authority, any revenue bonds
issued under the provisions of the act may be secured by a trust
agreement or indenture by and between the authority and a corporate
trustee or trustees, which may be the Treasurer or any trust company
or bank having the powers of a trust company within or without the
state. The trust agreement, indenture, or the resolution providing
for the issuance of these bonds may pledge or assign the revenues to
be received from a participating small business. The indenture, trust
agreement, or resolution providing for the issuance of these bonds
may contain provisions for protecting and enforcing the rights and
remedies of the bondholders and any provider of credit or liquidity
support for these bonds as may be reasonable and proper and not in
violation of law, including particularly those provisions as have
hereinabove been specifically authorized to be included in any
resolution or resolutions of the authority authorizing bonds thereof.
Any trust agreement or indenture may set forth the rights and
remedies of the bondholders, any provider of credit or liquidity
support for these bonds, and of the trustee or trustees, and may
restrict the individual right of action of bondholders. In addition
to the foregoing, any indenture, trust agreement, or resolution may
contain such other provisions as the authority may deem reasonable
and proper for the security of the bondholders.
15427.36. Any provision that the authority may include in a trust
agreement, indenture, or resolution pursuant to the act may
alternatively be included in a bond with the same effect.
15427.38. Revenue bonds issued under the provisions of the act
shall not be deemed to constitute a debt or liability of the state or
of a political subdivision thereof or a pledge of the faith and
credit of the state or of that political subdivision, other than the
authority, but shall be payable solely from the moneys in the fund.
These bonds shall contain a statement to the effect that neither the
State of California nor the authority shall be obligated to pay the
principal of, or the interest thereon, except from revenues of the
authority, and that neither the faith and credit nor the taxing power
of the State of California or of a political subdivision thereof is
pledged to the payment of the principal of or the interest on these
bonds. The issuance of revenue bonds under the act shall not directly
or indirectly or contingently obligate the state or a political
subdivision thereof to levy or to pledge a form of taxation whatever
therefor or to make an appropriation for their payment.
15427.40 Any holder of revenue bonds issued under the act or any
of the coupons appertaining thereto, and the trustee or trustees
under any indenture or trust agreement, except to the extent the
rights herein given may be restricted by any resolution authorizing
the issuance of, or any such indenture or trust agreement securing,
such bonds, may, either at law or in equity, by suit, action,
mandamus or other proceedings, protect and enforce any and all rights
under the laws of the state or granted hereunder or under such
resolution or indenture or trust agreement, and may enforce and
compel the performance of all duties required by the act or by such
resolution, indenture, or trust agreement to be performed by the
authority or by any officer, employee or agent thereof.
15427.42. All moneys received pursuant to the act, whether as
proceeds from selling or incurring revenue bonds or as revenues,
shall be deemed to be trust funds to be held and applied solely as
provided in the act. Until the funds are applied as provided in the
act, and notwithstanding any other provision of law, the moneys may
be invested in any obligations or securities authorized by
resolutions of the authority authorizing the issuance of the bonds.
Any officer with whom, or any bank or trust company with which, the
moneys are deposited shall act as trustee of the moneys and shall
hold and apply the moneys for the purposes hereof, subject to any
regulations adopted pursuant to the act and the resolution
authorizing the issuance of the bonds or the indenture or trust
agreement securing the bonds.
15427.44. (a) The authority may provide for the issuance of bonds
of the authority for the purpose of redeeming, refunding, or
retiring any bonds or any series or issue of bonds then outstanding
issued for the benefit of a participating
small business to finance or refinance a project,
including the payment of any redemption premium thereon and any
interest accrued or to accrue to the date of redemption, purchase, or
maturity of the bonds.
(b) The proceeds of any bonds issued for the purpose of refunding
of outstanding bonds may, in the discretion of the authority, be
applied to the purchase, redemption prior to maturity, or retirement
at maturity of any outstanding bonds on their earliest redemption
date or dates, upon their purchase or maturity, or paid to a third
person to assume the authority's obligation or the applicable bond
issuer's obligation to make the payments, and may, pending that
application, be placed in escrow to be applied to the purchase,
retirement at maturity, or redemption on the date or dates determined
by the authority or the participating small business.
(c) Any proceeds placed in escrow may, pending their use, be
invested and reinvested in obligations or securities authorized by
resolutions of the authority or as determined by the participating
small business, payable or maturing at the time or times as are
appropriate to assure the prompt payment of the principal, interest,
and redemption premium, if any, of the outstanding bonds to be
refunded at maturity or redemption of the bonds to be refunded either
at their earliest redemption date or dates or any subsequent
redemption date or dates or for payment of interest on the refunding
bonds on or prior to the final date of redemption or payment of the
bonds to be refunded. After the terms of the escrow have been fully
satisfied and carried out, any balance of the proceeds and interest,
income and profits, if any, earned or realized on the investments
thereof may be returned to the authority for use by the authority or
the participating small business.
(d) All of the bonds issued pursuant to subdivision (a) are
subject to the act in the same manner and to the same extent as other
bonds issued pursuant to the act.
15427.46. Bonds issued by the authority under the act are hereby
made securities in which all banks, bankers, savings banks, trust
companies and other persons carrying on a banking business; all
insurance companies, insurance associations and other persons
carrying on an insurance business; and all administrators, executors,
guardians, trustees and other fiduciaries, and all other persons
whatsoever who now are or may hereafter be authorized to invest in
bonds or other obligations of the state, may properly and legally
invest any funds, including capital belonging to them or within their
control; and such bonds, notes or other securities or obligations
are hereby made securities which may properly and legally be
deposited with and received by any state or municipal officers or
agency of the state for any purpose for which the deposit of bonds or
other obligations of the state is now or may hereafter be authorized
by law.
15427.48. Any bonds issued under the provisions of the act, their
transfer, and the income therefrom shall at all times be free from
taxation of every kind by the state and by all political subdivisions
in the state.
15427.50. The State of California does pledge to and agree with
the holders of the bonds issued pursuant to the act, and with those
parties who may enter into contracts with the authority pursuant to
the provisions of the act, that the state will not limit, alter or
restrict the rights hereby vested in the authority to finance small
business projects and to fulfill the terms of any agreements made
with the holders of bonds authorized by the act, and with the parties
who may enter into contracts with the authority pursuant to the act,
or in any way impair the rights or remedies of the holders of such
bonds or such parties until the bonds, together with interest
thereon, are fully paid and discharged and such contracts are fully
performed on the part of the authority. The authority as a public
body corporate and politic shall have the right to include the pledge
herein made in its bonds and contracts.
15427.52. A pledge by or to the authority of revenues, moneys,
accounts, accounts receivable, contract rights and other rights to
payment of whatever kind made by or to the authority pursuant to the
authority granted in the act shall be valid and binding from the time
the pledge is made for the benefit of pledges and successors
thereto. The revenues, moneys, accounts, accounts receivable,
contract rights and other rights to payment of whatever kind pledged
by or to the authority or its assignees shall immediately be subject
to the lien of the pledge without physical delivery or further act.
The lien of such pledge shall be valid and binding against all
parties, irrespective of whether the parties have notice of the
claim. The indenture, trust agreement, resolution or another
instrument by which such pledge is created need not be recorded.
15427.54. Any net earnings of the authority beyond that necessary
for retirement of any obligations issued by the authority or to
implement the purposes of this chapter may inure to the benefit only
of the State of California or the authority.
15427.56. Upon dissolution of the authority, title to all
property owned by the authority shall vest in the successor authority
created by the Legislature, if any, if the successor authority
qualifies under Section 103 of the federal Internal Revenue Code of
1954, as amended, and the regulations promulgated thereunder, as an
authority entitled to issue obligations on behalf of the State of
California the interest on which is exempt from federal income
taxation. If no such successor authority is so created, title to such
property shall vest in the State of California.
SEC. 2. The sum of $50,000,000 ($50 Million) is
hereby transferred from the General Fund to the California Americans
with Disabilities Act Small Business Compliance Financing Authority
Fund for the purposes of funding the activities of the California
Americans with Disabilities Act Small Business Compliance Financing
Authority pursuant to the California Americans with Disabilities Act
Small Business Compliance Financing Authority Act.
SECTION 1. Section 65858 of the Government Code
is amended to read:
65858. (a) Without following the procedures otherwise required
prior to the adoption of a zoning ordinance, the legislative body of
a county, city, including a charter city, or city and county, to
protect the public safety, health, and welfare, may adopt as an
urgency measure an interim ordinance prohibiting any uses that may be
in conflict with a contemplated general plan, specific plan, or
zoning proposal that the legislative body, planning commission or the
planning department is considering or studying or intends to study
within a reasonable time. That urgency measure shall require a
four-fifths vote of the legislative body for adoption. The interim
ordinance shall be of no further force and effect 45 days from its
date of adoption. After notice pursuant to Section 65090 and public
hearing, the legislative body may extend the interim ordinance for 10
months and 15 days and subsequently extend the interim ordinance for
one year. Any extension shall also require a four-fifths vote for
adoption. Not more than two extensions may be adopted.
(b) Alternatively, an interim ordinance may be adopted by a
four-fifths vote following notice pursuant to Section 65090 and
public hearing, in which case it shall be of no further force and
effect 45 days from its date of adoption. After notice pursuant to
Section 65090 and public hearing, the legislative body may by a
four-fifths vote extend the interim ordinance for 22 months and 15
days.
(c) The legislative body shall not adopt or extend any interim
ordinance pursuant to this section unless the ordinance contains
legislative findings that there is a current and immediate threat to
the public health, safety, or welfare, and that the approval of
additional subdivisions, use permits, variances, building permits, or
any other applicable entitlement for use which is required in order
to comply with a zoning ordinance would result in that threat to
public health, safety, or welfare. In addition, any interim ordinance
adopted pursuant to this section that has the effect of denying
approvals needed for the development of projects with a significant
component of multifamily housing may not be extended except upon
written findings adopted by the legislative body, supported by
substantial evidence on the record, that all of the following
conditions exist:
(1) The continued approval of the development of multifamily
housing projects would have a specific, adverse impact upon the
public health or safety. As used in this paragraph, a "specific,
adverse impact" means a significant, quantifiable, direct, and
unavoidable impact, based on objective, identified written public
health or safety standards, policies, or conditions as they existed
on the date that the ordinance is adopted by the legislative body.
(2) The interim ordinance is necessary to mitigate or avoid the
specific, adverse impact identified pursuant to paragraph (1).
(3) There is no feasible alternative to satisfactorily mitigate or
avoid the specific, adverse impact identified pursuant to paragraph
(1) as well or better, with a less burdensome or restrictive effect,
than the adoption of the proposed interim ordinance.
(d) Fifteen days prior to the expiration of that interim
ordinance or any extension, the legislative body shall issue a
written report describing the measures taken to alleviate the
condition which led to the adoption of the ordinance.
(e) When an interim ordinance has been adopted, every subsequent
ordinance adopted pursuant to this section, covering the whole or a
part of the same property, shall automatically terminate and be of no
further force or effect upon the termination of the first interim
ordinance or any extension of the ordinance as provided in this
section.
(f) Notwithstanding subdivision (e), upon termination of a prior
interim ordinance, the legislative body may adopt another interim
ordinance pursuant to this section provided that the new interim
ordinance is adopted to protect the public safety, health, and
welfare from an event, occurrence, or set of circumstances different
from the event, occurrence, or set of circumstances that led to the
adoption of the prior interim ordinance.
(g) For purposes of this section, "development of multifamily
housing projects" does not include the demolition, conversion,
redevelopment, or rehabilitation of multifamily housing that is
affordable to lower income households, as defined in Section 50079.5
of the Health and Safety Code, or that will result in an increase in
the price or reduction of the number of affordable units in a
multifamily housing project.
(h) For purposes of this section, "projects with a significant
component of multifamily housing" means projects in which multifamily
housing consists of at least one-third of the total square footage
of the project.