CALIFORNIA STATUTES AND CODES
SECTIONS 42010-42024
PUBLIC RESOURCES CODE
SECTION 42010-42024
42010. (a) The local governing body may, either by ordinance or
resolution, upon the recommendation of the appropriate land use
planning agency, propose eligible parcels of property within its
jurisdiction as a recycling market development zone.
(b) The proposal of a recycling market development zone shall be
based upon the following findings by the local governing body:
(1) The current waste management practices and conditions are
favorable to the development of postconsumer waste material markets.
(2) The designation as a recycling market development zone is
necessary to assist in attracting private sector recycling
investments to the area.
42011. Any parcel of property designated as a recycling market
development zone shall retain this designation for 10 years.
42012. The local governing body, or any person through the local
governing body, may apply to the board for designation as a recycling
market development zone.
42013. The board shall adopt regulations and guidelines concerning
the necessary contents of each application for designation and, in
the countywide integrated waste management plans, shall determine the
maximum number of recycling market development zones to be
designated pursuant to this chapter.
42014. The board may designate or redesignate recycling market
development zones for persons applying for that designation.
42015. If there are more applications for designation than the
number of recycling market development zones to be designated, the
board shall select the applicants who shall receive the designation
of a recycling market development zone based on a comparison of the
applications submitted and an indication that the applicant's
proposals include effective, innovative, and comprehensive tax
incentives and regulatory incentives, and other incentives programs,
to attract private sector investment in the proposed recycling market
development zone.
42016. For the purpose of Section 42015, "regulatory incentives"
include, but are not limited to, all of the following:
(a) The suspension or relaxation of locally originated or modified
building codes, zoning laws, and general plans.
(b) The elimination or reduction of fees for applications,
permits, and local government services, and the establishment of a
streamlined local permit process.
42017. For purposes of Section 42015, "tax incentives" include, but
are not limited to, the elimination or reduction of construction
taxes or business license taxes.
42018. For purposes of Section 42015, "other incentives" may
include, but are not limited to, all of the following:
(a) The provision for expansion of infrastructure.
(b) Provisions for increased amounts of recyclable feedstock.
42019. In evaluating an application for the designation of a
recycling market development zone, the board shall consider the
amount of landfill capacity remaining in the jurisdiction where the
zone would be located.
42020. In evaluating an application for the designation of a
recycling market development zone, the board shall not deny the
application solely because of technical deficiencies. The board shall
provide applicants with an opportunity to correct technical
deficiencies. An application shall be denied if technical
deficiencies are not corrected within 14 days.
42021. Nothing in this chapter prohibits an applicant from seeking
designation of an enterprise zone and receiving economic incentives
as defined in Section 7073 of the Government Code.
42023. Nothing in this section shall be interpreted to limit the
authority of local governments to make land use decisions within
their jurisdiction.
42023.1. (a) The Recycling Market Development Revolving Loan
Subaccount is hereby created in the account for the purpose of
providing loans for purposes of the Recycling Market Development
Revolving Loan Program established pursuant to this article.
(b) Notwithstanding Section 13340 of the Government Code, the
funds deposited in the subaccount are hereby continuously
appropriated to the department without regard to fiscal year for
making loans pursuant to this article.
(c) The department may expend interest earnings on funds in the
subaccount for administrative expenses incurred in carrying out the
Recycling Market Development Revolving Loan Program, upon the
appropriation of funds in the subaccount for that purpose in the
annual Budget Act.
(d) The money from loan repayments and fees, including, but not
limited to, principal and interest repayments, fees and points,
recovery of collection costs, income earned on an asset recovered
pursuant to a loan default, and funds collected through foreclosure
actions shall be deposited in the subaccount.
(e) All interest accruing on interest payments from loan
applicants shall be deposited in the subaccount.
(f) The department may expend the money in the subaccount to make
loans to local governing bodies, private businesses, and nonprofit
entities within recycling market development zones, or in areas
outside zones where partnerships exist with other public entities to
assist local jurisdictions to comply with Section 40051.
(g) The department shall not fund a loan until it determines that
the applicant has obtained all significant applicable federal, state,
and local permits. The department shall determine which applicable
federal, state, and local permits are significant.
(h) The department shall establish and collect fees for
applications for loans authorized by this section. The application
fee shall be set at a level that is sufficient to fund the department'
s cost of processing applications for loans. In addition, the
department shall establish a schedule of fees or points for loans
that are entered into by the department, to fund the department's
administration of the revolving loan program.
(i) The department may expend money in the subaccount for the
administration of the Recycling Market Development Revolving Loan
Program, upon the appropriation of funds in the subaccount for that
purpose in the annual Budget Act. In addition, the department may
expend money in the account to administer the revolving loan program,
upon the appropriation of funds in the subaccount for that purpose
in the annual Budget Act. However, funding for the administration of
the revolving loan program from the account shall be provided only if
there are not sufficient funds in the subaccount to fully fund the
administration of the program.
(j) The department, pursuant to subdivision (a) of Section 47901,
may set aside funds for the purposes of paying costs necessary to
protect the state's position as a lender-creditor. These costs shall
be broadly construed to include, but not be limited to, foreclosure
expenses, auction fees, title searches, appraisals, real estate
brokerage fees, attorney fees, mortgage payments, insurance payments,
utility costs, repair costs, removal and storage costs for
repossessed equipment and inventory, and additional expenditures to
purchase a senior lien in foreclosure or bankruptcy proceedings.
(k) (1) Except as provided in paragraph (2), this section shall
become inoperative on July 1, 2021, and as of January 1, 2022, is
repealed, unless a later enacted statute, which becomes effective on
or before January 1, 2022, deletes or extends the date on which it
becomes inoperative and is repealed.
(2) The repeal of this section pursuant to paragraph (1) shall not
extinguish any loan obligation or the authority of the state to
pursue appropriate actions for the collection of a loan.
42023.2. (a) Upon authorization by the Legislature in the annual
Budget Act, the Controller shall transfer a sum, as available, from
the account to the subaccount as necessary to meet anticipated loan
demand under the program.
(b) (1) Except as provided in paragraph (2), this section shall
become inoperative on July 1, 2021, and as of January 1, 2022, is
repealed, unless a later enacted statute, which becomes effective on
or before January 1, 2022, deletes or extends the date on which it
becomes inoperative and is repealed.
(2) (A) The repeal of this section pursuant to paragraph (1) shall
not extinguish any loan obligation or the authority of the state to
pursue appropriate actions for the collection of a loan.
(B) The department shall not be obligated to pay interest on the
amount appropriated from the account to the subaccount pursuant to
subdivision (a). This subparagraph shall apply retroactively from
January 1, 1992.
42023.3. (a) All money remaining in the subaccount on July 1, 2021,
and all money received as repayment and interest on loans shall, as
of July 1, 2021, be transferred to the account and any money due and
outstanding on loans as of July 1, 2021, shall be repaid to the
department and deposited by the department in the account until paid
in full, except that, upon authorization by the Legislature in the
annual Budget Act, interest earnings may be expended for
administrative costs associated with the collection of outstanding
loan accounts.
(b) (1) Except as provided in paragraph (2), this section shall
become inoperative on July 1, 2021, and as of January 1, 2022, is
repealed, unless a later enacted statute, which becomes effective on
or before January 1, 2022, deletes or extends the dates on which it
becomes inoperative and is repealed.
(2) The repeal of this section pursuant to paragraph (1) shall not
extinguish any loan obligation or the authority of the state to
pursue appropriate actions for the collection of a loan.
42023.4. (a) A loan made pursuant to Section 42023.1 shall be
subject to all of the following requirements:
(1) The terms of an approved loan shall be specified in a loan
agreement between the borrower and the department. The loan agreement
shall include a requirement that the failure to comply with the
agreement shall result in any remaining unpaid amount of the loan,
with accrued interest, being immediately due and payable.
Notwithstanding any term of the agreement, a recipient of a loan that
the department approves shall repay the principal amount, plus
interest on the basis of the rate of return for money in the Surplus
Money Investment Fund at the time of the loan commitment. All money
received as repayment and interest on loans made pursuant to this
section shall be deposited in the subaccount.
(2) The term of a loan made pursuant to this section shall be not
more than 10 years when collateralized by assets other than real
estate, or not more than 15 years when partially or wholly
collateralized by real estate.
(3) The department shall approve only those loan applications that
demonstrate the applicant's ability to repay the loan. The highest
priority for funding shall be given to projects that demonstrate that
the project will increase market demand for recycling the project's
type of postconsumer waste material.
(4) The department shall not finance more than three-fourths of
the cost of a project or two million dollars ($2,000,000), whichever
is less.
(5) The Department of Finance may audit the expenditure of the
proceeds of a loan made pursuant to Section 42023.1 and this section.
(b) (1) Except as provided in paragraph (2), this section shall
become inoperative on July 1, 2021, and as of January 1, 2022, is
repealed, unless a later enacted statute, which becomes effective on
or before January 1, 2022, deletes or extends the dates on which it
becomes inoperative and is repealed.
(2) The repeal of this section pursuant to paragraph (1) shall not
extinguish any loan obligation or the authority of the state to
pursue appropriate actions for the collection of a loan.
42023.5. (a) The department shall, as part of the annual report to
the Legislature, pursuant to Section 40507, include a report on the
performance of the Recycling Market Development Revolving Loan
Program, including the number and size of loans made, characteristics
of loan recipients, projected loan demand, and the cost of
administering the program.
(b) This section shall become inoperative on July 1, 2021, and as
of January 1, 2022, is repealed, unless a later enacted statute,
which becomes effective on or before January 1, 2022, deletes or
extends the date on which it becomes inoperative and is repealed.
42023.6. (a) The department shall encourage applicants to seek
participation from private financial institutions or other public
agencies. For purposes of enabling the department and local agencies
to comply with Sections 40051 and 41780, the department may
participate, in an amount not to exceed five hundred thousand dollars
($500,000), in the Capital Access Loan Program as provided in
Article 8 (commencing with Section 44559) of Chapter 1 of Division 27
of the Health and Safety Code.
(b) For purposes of participating in the Capital Access Loan
Program, as specified in subdivision (a), or in a program that
leverages subaccount funds, the department may operate both inside
and outside the recycling market development zones.
(c) (1) Except as provided in paragraph (2), this section shall
become inoperative on July 1, 2021, and as of January 1, 2022, is
repealed, unless a later enacted statute, which becomes effective on
or before January 1, 2022, deletes or extends the date on which it
becomes inoperative and is repealed.
(2) The repeal of this section pursuant to paragraph (1) shall not
extinguish any loan obligation or the authority of the state to
pursue appropriate actions for the collection of a loan.
42024. The board, the Treasurer, and other appropriate state
agencies shall, to the extent feasible and as appropriate, coordinate
activities that will leverage financing for market development
projects and encourage joint activities to strengthen markets for
recycled materials.