2005 California Health and Safety Code Sections 25385-25386.5 Article 7.5. Hazardous Substance Cleanup Bond Act of 1984

25385.  This article shall be known and may be cited as the
Johnston-Filante Hazardous Substance Cleanup Bond Act of 1984.
25385.1.  For purposes of this article, and for purposes of Section
16722 of the Government Code as applied to this article, the
following definitions apply:
   (a) "Board" means the Department of Toxic Substances Control.
   (b) "Committee" means the Hazardous Substance Cleanup Committee
created pursuant to Section 25385.4.
   (c) "Director" means the Director of Toxic Substances Control.
   (d) "Fund" means the Hazardous Substance Cleanup Fund created
pursuant to Section 25385.3.
   (e) "Orphan site" means a site with a release or threatened
release of a hazardous substance with no reasonably identifiable
responsible parties.
   (f) "Orphan share" means those costs of removal or remedial action
at sites with a release or threatened release of hazardous
substances, which costs are in excess of amounts included in a
cleanup agreement.
   (g) "Responsible party" means a person who is, or may be,
responsible or liable for carrying out, or paying for the costs of, a
removal or remedial action.
   (h) "Trust fund" means the Superfund Bond Trust Fund.
25385.2.  The State General Obligation Bond Law (Chapter 4
(commencing with Section 16720) of Part 3 of Division 4 of Title 2 of
the Government Code) is adopted for the purpose of the issuance,
sale, and repayment of, and otherwise providing with respect to, the
bonds authorized to be issued pursuant to this article, and the
provisions of that law are included in this article as though set out
in full in this article, except that, notwithstanding anything in
the State General Obligation Bond Law, the maximum maturity of bonds
shall not exceed 30 years from the date of the bonds, or from the
date of each respective series.  The maturity of each respective
series shall be calculated from the date of the series.
25385.3.  (a) The Hazardous Substance Cleanup Fund is hereby created
in the State Treasury.  The proceeds of bonds issued and sold
pursuant to this article shall be deposited in the fund, and the
money in the fund may be expended only for the purposes specified in
this article and, pursuant to appropriation by the Legislature, in
the manner specified in this section.
   (b) Except when the Legislature appropriates money from the fund
for specified removal or remedial actions in a bill other than the
Budget Act, it is the intention of the Legislature that all proposed
appropriations for activities conducted pursuant to this article be
included in a section of the Budget Act for each fiscal year for
consideration by the Legislature and that this section be captioned
"Hazardous Substance Cleanup Bond Act Program." Any appropriation of
money from the fund is subject to all the limitations contained in
the bill making the appropriation and to all fiscal procedures
specified by statute concerning the expenditure of state funds.
   (c) In issuing bonds pursuant to this article, the committee
shall, to the extent possible, pay the principal of, and interest on,
the bonds from the sources specified in subdivisions (a) to (f),
inclusive, of Section 25385.9.  The General Fund shall be reimbursed
from these sources for any transfers made to the Hazardous Substance
Clearing Account from the General Fund to make the principal and
interest payments.  In determining the amount the General Fund is to
be reimbursed for any transfer, the committee shall also include
interest on the transfer at a rate equal to the bond rate on the
transfer from the date of transfer to the date of reimbursement.
25385.4.  The Hazardous Substance Cleanup Committee, which is hereby
created, shall consist of the Governor, the Director of Finance, the
Treasurer, the Controller, and the Secretary for Environmental
Protection.
25385.5.  The committee may create a debt or debts, liability or
liabilities, of the State of California, in the aggregate of one
hundred million dollars ($100,000,000), in the manner provided in
this article.  The debt or debts, liability or liabilities, shall be
created for the purpose of providing moneys, for deposit in the fund,
for the purposes specified in Section 25385.6.
25385.6.  (a) The moneys in the Hazardous Substance Cleanup Fund may
be used, upon appropriation by the Legislature, for the purposes
specified in this section.
   (b) The board may expend moneys in the fund, upon the
authorization of the committee, for all of the following purposes:
   (1) To provide the state share of a removal or remedial action
pursuant to Section 104(c)(3) of the federal act (42 U.S.C. Sec. 9604
(c)(3)) if the site is the subject of a final remedial action plan
issued pursuant to Section 25356.1.
   (2) To pay all costs of a removal or remedial action incurred by
the state, or by any local agency with the approval of the director,
in response to a release or threatened release of a hazardous
substance at a site which is listed in the priority ranking of sites
pursuant to Section 25356 and is the subject of a final remedial
action plan issued pursuant to Section 25356.1, to the extent that
the costs are not paid by responsible parties or are reimbursed by
the federal act.
   (3) To pay for site characterization of a release of hazardous
substances, even if a remedial action plan has not been prepared,
approved, adopted, or made final for that site.
25385.7.  (a) All bonds authorized by this article, which are sold
and delivered as provided in this article, constitute valid and
legally binding general obligations of the State of California, and
the full faith and credit of the State of California are hereby
pledged for the punctual payment of both principal and interest
thereon.
   (b) There shall be collected annually, in the same manner and at
the same time as other state revenue is collected, that sum, in
addition to the ordinary revenues of the state, which is required to
pay the principal of, and interest on, the bonds as provided in this
article, and all officers charged by law with any duty in regard to
the collection of the revenue shall perform each and every act which
is necessary to collect this additional sum.
25385.8.  (a) The Superfund Bond Trust Fund is hereby created in the
State Treasury.  All interest earned on funds in the state account,
and other funds transferred to the trust fund by the Legislature or
the department, shall be deposited in the trust fund, which is a
sinking fund to ensure the payment of principal of, and interest on,
the debt incurred pursuant to Section 25385.5.  All interest earned
on money in the fund shall be deposited in the trust fund.  The funds
in the trust fund shall be invested by the Treasurer.  The committee
shall administer the trust fund so that there are sufficient funds
in the trust fund to make the necessary principal and interest
payments on bonds issued and shall transfer funds from the trust fund
for this purpose to the Hazardous Substance Clearing Account.
   (b) There shall be transferred annually the sum of five million
dollars ($5,000,000) from the state account to the trust fund.
   (c) The unobligated balance in the state account shall be
transferred by the department to the trust fund on December 31 of
each year.  For purposes of this section, "unobligated balance" means
that amount, which shall not be less than  zero, determined by the
department, in the year-end financial statement submitted to the
Controller, to be the total of all unencumbered funds on June 30 of
that calendar year, less the total of all of the following:
   (1) Any fund in the reserve account for emergencies established by
Section 25354.
   (2) Any remaining principal of the loan authorized by Section
25332.
   (3) Any interest due on any remaining principal of the loan
authorized by Section 25332.
   (4) Any funds paid as taxes for the following fiscal year.
   (5) Any funds received from the federal government pursuant to the
federal act.
   (6) Any interest accruing from funds deposited in the subaccount
for site operation and maintenance established by Section 25330.5.
   (7) Any funds received from responsible parties for remedial and
removal action, except to the extent those funds are necessary to
reimburse the state account for funds previously expended therefrom.
   (8) Any funds deposited into a sinking fund to ensure the
repayment of principal on, and interest of, bonds pursuant to Section
25385.9.
   (d) The amendment of this section by Chapter 531 of the Statutes
of 1990 does not constitute a change in, but is declaratory of, the
existing law.
25385.9.  Notwithstanding any other provision of law, the board
shall pay the principal of, and interest on, the bonds from the
Hazardous Substance Clearing Account, using the following sources, in
the following order of priority:
   (a) Money derived from the premium and the accrued interest on
bonds which are sold.
   (b) Recoveries from responsible parties of costs incurred for
removal or remedial actions at sites listed pursuant to Section
25356, insofar as the removal or remedial action expenditures were
paid from proceeds from bonds issued pursuant to this article.
   (c) Funds received pursuant to the federal act which are
designated to be used for removal or remedial actions paid for by
proceeds from bonds issued pursuant to this article.
   (d) Any money transferred from the state account.
   (e) Any money transferred from the trust fund.
   (f) Any money derived from any other source, as provided by law.
   (g) The General Fund.
25386.  Notwithstanding Section 25386.5, the money deposited in the
fund is available for transfer to the General Fund if money was
deposited in the fund pursuant to any provision of law requiring
repayments to the state for assistance financed by the proceeds of
the bonds issued pursuant to this article.  When transferred to the
General Fund, that money shall be applied as a reimbursement to the
General Fund for the principal and interest payments on the bonds
which have been paid from the General Fund.
25386.1.  There is hereby appropriated from the General Fund in the
State Treasury, for the purpose of this article, an amount equal to
the sum of all of the following:
   (a) The sum, annually, which will be necessary to pay the
principal of, and the interest on, the bonds issued and sold pursuant
to this article, as the principal and interest become due and
payable.
   (b) The sum which is necessary to carry out Section 25386.2, which
sum is appropriated without regard to fiscal years, notwithstanding
Section 13340 of the Government Code.
25386.2.  For the purpose of carrying out this article, the Director
of Finance may, by executive order, authorize the withdrawal from
the General Fund of amounts not to exceed the amount of the unsold
bonds which the committee has, by resolution, authorized to be sold
for the purpose of carrying out this article.  Any amounts withdrawn
shall be deposited in the fund and shall be disbursed by the board in
accordance with this article.  Any moneys made available pursuant to
this section shall be returned to the General Fund from moneys
received from the sale of bonds sold for the purpose of carrying out
this article.
25386.25.  Notwithstanding any other provision of this bond act, or
of the State General Obligation Bond Law (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code), if the Treasurer sells bonds pursuant to this bond act that
include a bond counsel opinion to the effect that the interest on the
bonds is excluded from gross income for federal tax purposes under
designated conditions, the Treasurer may maintain separate accounts
for the bond proceeds invested and the investment earnings on those
proceeds, and may use or direct the use of those proceeds or earnings
to pay any rebate, penalty, or other payment required under federal
law, or take any other action with respect to the investment and use
of those bond proceeds, as may be required or desirable under federal
law in order to maintain the tax-exempt status of those bonds and to
obtain any other advantage under federal law on behalf of the funds
of this state.
25386.3.  Upon the request of the board, and supported by a
statement of the proposed actions to be taken pursuant to Section
25385.6, the committee shall determine whether it is necessary or
desirable to issue any bonds authorized pursuant to this article in
order to take these actions, and if so, the amount of bonds which
should be issued and sold.  Successive issues of bonds may be
authorized and sold to take these actions progressively, and it is
not necessary that all of the bonds authorized by this article to be
issued are sold at any one time.
25386.4.  The committee may authorize the Treasurer to sell all, or
any part of, the bonds authorized under this article at the time or
times as may be fixed by the Treasurer.
25386.5.  Except as provided in subdivision (c) of Section 25385.3
and Section 25386, all proceeds from the sale of bonds, except those
derived from premiums and accrued interest, are available for the
purposes specified in Section 25385.6, but are not available for
transfer to the General Fund to pay the principal of, and interest
on, the bonds.