SECTIONS 63043-63047 - California Statutes

GOVERNMENT CODE

SECTION 63043-63047

63043. Notwithstanding any other provision of this division,
Article 3 (commencing with Section 63040) and Article 4 (commencing
with Section 63042), shall not apply to any conduit financing for
economic development facilities by the bank directly for the benefit
of a participating party.

63044. The bank shall consider a project for conduit financing for
economic development facilities upon filing of an application with
the bank by an appropriate participating party, on the terms and
conditions the bank shall determine. The bank shall establish
procedures for the expeditious review of applications for the
issuance or approval of bonds to finance economic development
facilities.

63045. In order to provide or arrange for the financing of economic
development facilities, the bank may:
(a) Issue taxable revenue bonds pursuant to Chapter 5 (commencing
with Section 63070) to provide financing for economic development
projects compatible with the public interest as specified in Section
63046.
(b) Issue taxable revenue bonds pursuant to Chapter 5 (commencing
with Section 63070) to provide financing for the revolving loan funds
and economic development projects of small business development
corporations, local economic development corporations, community
development corporations, and nonprofit organizations, which
revolving loan funds and economic development projects shall be
compatible with the public interest.
(c) Issue tax-exempt revenue bonds pursuant to Chapter 5
(commencing with Section 63070) to provide financing for economic
development facilities as permitted by federal law and in accordance
with applicable California law relating to the distribution of state
allocations for private activity bonds. Projects so financed shall be
compatible with the public interest as specified in Section 63046.
(d) Issue tax-exempt revenue bonds pursuant to Chapter 5
(commencing with Section 63070) for economic development facilities
of public sector and nonprofit organizations qualifying for exemption
under federal law.

63046. No financing shall be made by the bank under this article
unless the bank shall have first determined that the financing or
assistance meets the following public interest criteria:
(a) The financing, loan, grant, or other assistance is for a
project or a use in the State of California.
(b) Those seeking funds or other assistance are capable of meeting
obligations incurred under relevant agreements.
(c) In the case of loans or bonds, payments to be made under
applicable financing documents are adequate to pay the current
expenses of the bank in connection with the financing and to make
payments on the bonds.
(d) The proposed financing is appropriate for the specific
project.

63047. (a) Any loan entered into pursuant to this article may
contain provisions for payment of a penalty if any recipient of funds
under this article leaves this state prior to the completion of the
full term of the loan.
(b) Projects that the board determines will produce long-term
employment creation or retention shall receive first priority for
financing.
(c) Any recipient of funds under this article that utilizes the
funds for construction purposes, shall certify that the contractors
are properly licensed by the Contractors' State License Board.
(d) The bank shall require that the proposed economic development
facilities be consistent with any existing local or regional
comprehensive plan.
(e) The bank shall develop a policy regarding financing companies
that move within this state so as to minimize any displacement of
jobs.
(f) In addition to any other methods the bank may use to identify
economic development projects, the bank shall utilize existing local
economic development networks to identify these projects and prepare
a plan, in consultation with local economic development networks and
their organizations and representatives, to implement this policy.