Amended in Assembly May 28, 2015

Amended in Assembly March 24, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1230


Introduced by Assembly Member Gomez

February 27, 2015


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. 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 providebegin delete loans, funded in part by bond issuances,end deletebegin insert loansend insert 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.begin delete 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.end delete

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.

Vote: 23. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Part 7.1 (commencing with Section 15427) is
2added to Division 3 of Title 2 of the Government Code, to read:

3 

4PART 7.1.  California Americans with Disabilities
5Act Small Business Compliance Financing
6Authority

7

7 

8Chapter  1. General Provisions
9

 

10

15427.  

This act shall be known and may be cited as the
11California Americans with Disabilities Act Small Business
12Compliance Financing Authority Act.

13

15427.2.  

It is the intent of the Legislature in this act to establish
14a self-sustaining program to provide loans to assist small businesses
15in complying with the Americans with Disabilities Act. It is not
16the intent of the Legislature to fund the physical expansion of small
17businesses that includes modifications that comply with the
18Americans with Disabilities Act, or to authorize the authority to
19control or participate in the operation of a small business except
20to the extent necessary to secure payment by a small business that
P3    1defaulted on a loan to the authority, and then only to the extent
2that complies with the loan agreement between that small business
3and the authority.

4

15427.4.  

Unless the context requires otherwise, as used in the
5act the following words and terms shall have the following
6meanings:

7(a) “Act” means the California Americans with Disabilities Act
8Small Business Compliance Financing Authority Act enacted
9pursuant to this part.

10(b) “Americans with Disabilities Act” means the federal
11Americans with Disabilities Act (42 U.S.C.begin delete 12101,end deletebegin insert Sec. 12101end insert et
12seq.) and amendments thereto.

13(c) “Authority” means the California Americans with Disabilities
14Act Small Business Compliance Financing Authority created by
15the act or any board, body, commission, department, or officer
16acting under the authorization of the act.

17(d) “Cost” means and includes all or any part of the price of
18construction, purchase price of real or personal property, the price
19of demolishing or removing any buildings or structures, the price
20of all machinery and equipment, the amount of financing charges
21and interest prior to, during, and for a period not to exceed the
22later of one year or one year following completion of construction,
23as determined by the authority, the price of insurance during
24construction, the amount of funding or financing noncapital
25expenses, the amount of reserves for principal and interest and for
26extensions, enlargements, additions, replacements, renovations
27and improvements, the price of engineering, financial and legal
28services and other service contracts, the price of plans,
29specifications, studies, surveys, estimates, administrative expenses,
30and any other expenses of funding or financing, that are necessary
31or incidental to determining the total payment necessary to
32complete a project.

33(e) “Fund” means the California Americans with Disabilities
34Act Small Business Compliance Financing Authority Fund
35established by Section 15427.24.

36(f) “Project” means the physical alterations or retrofits to an
37existing small business facility of less than 5,000 square feet
38necessary to ensure that facility is in compliance with the
39Americans withbegin delete Disabilityend deletebegin insert Disabilitiesend insert Act, and the financing
40necessary to pay all costs of the project.

P4    1(g) “Small business” means a business located in California that
2meets all of the following criteria:

3(1) Less than six full-time equivalent employees.

4(2) Less than one million dollars ($1,000,000) in total gross
5annual income from all sources.

6(3) Does not provide overnight accommodations.

7 

8Chapter  2. begin deletetheend deletebegin insertTheend insert California Americans with
9Disabilities Act Small Business Compliance Financing
10Authority
11

 

12

15427.6.  

There is in state government the California Americans
13with Disabilities Act Small Business Compliance Financing
14Authority.

15

15427.8.  

The California Americans with Disabilities Act Small
16Business Compliance Financing Authority constitutes a public
17instrumentality, and the exercise by the authority of the powers
18conferred by the act shall be deemed and held to be the
19performance of an essential public function.

20

15427.10.  

(a) The authority shall be composed of the following
21seven members:

22(1) The Treasurer, who shall serve as the chair.

23(2) The Controller.

24(3) The Director of Finance.

25(4) The Director of General Services.

26(5) One member appointed by the Senate Committee on Rules
27who shall have specialized knowledge or experience with
28accessibility issues for people with disabilities.

29(6) One member appointed by the Speaker of the Assembly who
30shall be the owner of a small business or a member of an
31organization that represents the interests of small businesses.

32(7) One member appointed by the Governor, subject to
33confirmation by a majority vote of the Senate, who shall be a
34member of the State Bar of California with professional experience
35in consumer protection laws.

36

15427.12.  

(a) Each member shall serve a term of four years.
37An individual appointed to fill a vacancy occurring during a term
38of office shall only serve the remainder of the unexpired term.

P5    1(b) At the expiration of his or her four-year term, a member
2shall continue to hold office until the successor has been appointed
3and qualifies to begin serving.

4(c) A member shall be eligible for reappointment.

5(d) Members of the authority shall serve without compensation,
6but the authority may reimburse members for necessary expenses
7incurred in the discharge of their duties.

8(e) This section shall only apply to the members appointed by
9the Senate Committee on Rules, the Speaker of the Assembly, and
10the Governor.

11

15427.14.  

The Director of Finance and the Director of General
12Services may designate an employee in his or her department to
13act for him or her at meetings of the authority.

14

15427.16.  

The State Treasurer, in his or her capacity as the
15chair, shall appoint an executive director, who shall not be a
16member of the authority and who shall serve at the pleasure of the
17authority. The executive director shall receive compensation fixed
18by the authority.

19

15427.18.  

(a) The executive director or the person designated
20by the authority in a resolution shall keep a record of the
21proceedings of the authority and be the custodian of the official
22seal, the minute book or journal, and all records and documents
23of the authority.

24(b) The executive director or the person designated by the
25authority in a resolution may provide a copy of a record of any
26proceeding of the authority or any other records and documents
27of the authority and may give a certificate under the official seal
28of the authority that the copy is a true copy, and all persons dealing
29with the authority may rely upon that certificate.

30

15427.20.  

(a) The affirmative vote of a majority of a quorum
31shall be necessary for the authority to take any action. Four
32members of the authority shall constitute a quorum, regardless of
33any vacancies in the membership of the authority.

34(b) Resolutions of the authority need not be published or posted.

35(c) (1)begin insertend insert The authority may delegate by resolution to one or more
36of its members or the executive director the powers and duties the
37authority deems proper.

38(2) The authority may delegate to the executive director or an
39employee of the authority the powers and duties the authority
P6    1deems proper, including, but not limited to, the power to enter into
2contracts on behalf of the authority.

3

15427.22.  

The authority shall comply with the Bagley-Keene
4Open Meeting Act (Article 9 (commencing with Section 11120)
5of Chapter 1 of Part 1) and the California Public Records Act
6(Chapter 3.5 (commencing with Section 6250) of Division 7 of
7Title 1).

8 

9Chapter  3. The California Americans with Disabilities
10Act Small Business Compliance Financing Authority Fund
11

 

12

15427.24.  

(a) The California Americans with Disabilities Act
13Small Business Compliance Financing Authority Fund is
14established in the State Treasury. Notwithstanding Section 13340,
15all money in the fund is continuously appropriated to the authority
16for carrying out the purposes of the act. The authority may divide
17the fund into separate accounts. All moneys accruing to the
18authority pursuant to the act from any source shall be deposited
19into the fund.

20(b) Subject to the cost of loans provided by the authority
21pursuant to the act and subject further to any reasonable costs that
22may be incurred by the authority in administering the act, all
23moneys in the fund derived from any source shall be held in trust
24for the securitybegin delete and payment of bonds of the authority and shall
25not be used or pledged for any other purpose so long as the bonds
26are outstanding and unpaid. However, nothing in this section shall
27limit the power of the authority to make loans with the proceeds
28of bonds in accordance with the terms of the resolution authorizing
29the same or pledging or granting a security interest to the provider
30of credit support as specified in the documents pursuant to which
31revenue bonds are issuedend delete
begin insert of loansend insert.

32(c) begin delete(1) end deleteThe authority may pledge any or all of the moneys in the
33fund as security for payment of the principal of, and interest on,
34any secured or unsecured loan made pursuant to the act or as
35necessary or convenient tobegin delete theend delete accomplish any purpose of the
36authority.

begin delete

37(2) Pursuant to any agreements with the holders of particular
38bonds pledging any particular assets, revenues, or moneys, the
39authority may create separate accounts in the fund to manage
P7    1assets, revenues, or moneys in the manner set forth in the
2agreements.

end delete

3(d) The authority may direct the Treasurer to invest moneys in
4the fund that are not required for its currentbegin delete needs, including
5proceeds from the sale of any bonds,end delete
begin insert needsend insert in the eligible securities
6specified in Section 16430 as the authority shall designate. The
7authority may direct the Treasurer to deposit moneys in
8interest-bearing accounts in state or national banks or other
9financial institutions having principal offices located in the state.
10The authority may alternatively require the transfer of moneys in
11the fund to the Surplus Money Investment Fund for investment
12pursuant to Article 4 (commencing with Section 16470) of Chapter
133 of Part 2 of Division 4. All interest or other increment resulting
14from an investment or deposit shall be deposited into the fund,
15notwithstanding Section 16305.7. Moneys in the fund shall not be
16subject to transfer to any other fund pursuant to any provision of
17Part 2 (commencing with Section 16300) of Division 4, excepting
18the Surplus Money Investment Fund.

19

15427.26.  

All expenses of the authority incurred in carrying
20out the provisions of the act shall be payable solely from funds
21and authority provided to the authority.

22 

23Chapter  4. Powers and Duties of the California
24Americans with Disabilities Act Small Business Compliance
25Financing Authority
26

 

27

15427.28.  

(a) The authority shall administer the act and is
28vested with all powers reasonably necessary to carry out the duties
29expressly granted or imposed under the act.

30(b) The authority shall establish financial eligibility standards
31for each small business seeking financing from the authority by
32studying the creditworthiness and earning capacity of the small
33business, the impact of new debt and the completion of the project
34on the small business, and the amount of pledged revenues, debt
35service coverage, and basic security.

36

15427.30.  

The authority may do any of the following:

37(a) Adopt bylaws for the regulation of its affairs and the conduct
38of its business.

39(b) Adopt an official seal.

40(c) Sue and be sued in its name.

P8    1(d) Receive and accept gifts, grants, or donations of money for
2achieving any purpose of the act from any agency of the federal
3government, another state entity, a city, county, city and county,
4any other political subdivision of the state, an individual,
5association, or corporation.

6(e) Engage private consultants to provide professional and
7technical services and advice in carrying out the purposes of the
8act.

9(f) Determine the location and character of any project to be
10financed under the act; acquire, construct, enlarge, remodel,
11renovate, alter, improve, furnish, equip, fund, finance, own,
12maintain, manage, repair, operate, lease as lessee or lessor, and
13regulate a project under the act and enter into contracts for any or
14all of those purposes; enter into contracts for the management and
15operation of a project or other small business facilities owned by
16the authority; designate a participating property manager as its
17agent to determine the location and character of a project
18undertaken by that participating small business under the act and,
19as the agent of the authority, acquire, construct, enlarge, remodel,
20renovate, alter, improve, furnish, equip, own, maintain, manage,
21repair, operate, lease as lessee or lessor, and regulate the same and,
22as the agent of the authority, to enter into contracts for any or all
23of those purposes, including contracts for the management and
24operation of that project or other small business facilities owned
25by the authority.

26(g) Receive and accept from any source loans, contributions,
27or grants for, or in aid of, the construction, financing, or refinancing
28of a project or any portion of a project in money, property, labor,
29or other things of value.

30(h) Make secured or unsecured loans to, or purchase secured or
31unsecured loans of, any participating small business in connection
32with financing the costs of a project in accordance with an
33agreement between the authority and the participating small
34business. However, the authority shall not make any loan to a small
35business to finance the cost of a project that exceeds the lesser of
36$50,000 or the total cost of the project, as determined by the
37participating small business and approved by the authority. The
38authority shall not make a loan to a small business with a
39repayment period of 60 months or longer, except if the project is
40located on real property that is leased. If the project is located on
P9    1real property that is leased, the repayment period shall not exceed
2the term of the lease, excluding any option to extend the lease. The
3authority shall only make a loan that includes an interest rate that
4equals the pooled money investment rate at the time the loan is
5approved and is sufficient to repay the reasonable pro rata expenses
6of the authority to administer thebegin delete loan, including, but not limited
7to, the costs of issuing revenue bonds to fund theend delete
loan.

8(i) Enter into any and all agreements or contracts, including
9agreements for liquidity or credit enhancement,begin delete bond exchange
10agreements,end delete
interest rate swaps or hedges; execute any and all
11instruments; and do and perform any and all acts or things
12necessary, convenient, or desirable for the purposes of the authority
13or to carry out any power expressly granted by the act.

14(j) Invest any moneys held in reserve or sinking funds or any
15moneys not required for immediate use or disbursement, at the
16discretion of the authority, in any obligations begin delete authorized by the
17resolution authorizing the issuance of the bonds secured thereof
18orend delete
authorized by law for the investment of trust funds in the custody
19of the Treasurer.

20(k) The authority may require any information it deems
21necessary and prudent prior to providing a loan to a small business
22and may require any term, condition, security, or repayment
23provision it deems necessary in the event the authority chooses to
24provide a loan.

begin delete
25

15427.32.  

(a) The authority is authorized to issue revenue
26bonds to provide funds for achieving any of the purposes under
27the act.

28(b) Except as expressly provided otherwise by the authority,
29revenue bonds shall be payable from any revenues or moneys of
30the authority available therefor and not otherwise pledged, subject
31only to any agreements with the holders of particular bonds or
32notes pledging any particular revenues or moneys. Negotiable
33bonds shall be and be deemed to be for all purposes negotiable
34instruments, notwithstanding that these bonds may be payable
35from a special fund, subject only to the provisions of these bonds
36for registration.

37(c) The authority’s revenue bonds may be issued as serial bonds
38or as term bonds, or the authority, in its discretion, may issue bonds
39of both types. The issuance of all revenue bonds shall be authorized
40by resolution of the authority and shall bear such date or dates,
P10   1mature at such time or times, not exceeding 40 years from their
2respective dates, bear interest at such rate or rates, be payable at
3such time or times, be in such denominations, be in such form,
4either coupon or registered, carry such registration privileges, be
5executed in such manner, be payable in lawful money of the United
6States of America at such place or places, and be subject to such
7terms of redemption, as the indenture, trust agreement, or resolution
8relating to these revenue bonds may provide. The authority’s
9revenue bonds or notes may be sold by the Treasurer at public or
10private sale, after giving due consideration to the recommendation
11of the participating small business, for the price or prices and upon
12the terms and conditions as the authority shall determine. The
13Treasurer may sell these revenue bonds at a price below the par
14value thereof. However, the discount on any bonds so sold shall
15not exceed 6 percent of the par value thereof, except in the case
16of any bonds payable in whole or in part from moneys held under
17one or more outstanding resolutions or indentures. Pending
18preparation of the definitive bonds, the authority may issue interim
19receipts or certificates or temporary bonds which shall be
20exchanged for such definitive bonds.

21(d) A resolution or resolutions authorizing the issuance of any
22revenue bonds or any issue of revenue bonds may contain
23provisions, which shall be a part of the contract with the holders
24of the bonds to be authorized, as to pledging all or any part of the
25revenues of a project or any revenue-producing contract or
26contracts made by the authority with an individual, partnership,
27corporation or association or other body, public or private, to secure
28the payment of the bonds or of a particular issue of bonds.

29(e) Neither the members of the authority nor any person
30executing the revenue bonds shall be liable personally on the bonds
31or be subject to any personal liability or accountability by reason
32of the issuance thereof.

33(f) The authority may purchase its bonds with any moneys
34available to the authority for this purpose. The authority may
35exchange bonds for its bonds. The authority may hold, pledge,
36exchange, cancel, or resell these bonds, subject to and in
37accordance with its agreements with bondholders.

38

15427.34.  

In the discretion of the authority, any revenue bonds
39issued under the provisions of the act may be secured by a trust
40agreement or indenture by and between the authority and a
P11   1corporate trustee or trustees, which may be the Treasurer or any
2trust company or bank having the powers of a trust company within
3or without the state. The trust agreement, indenture, or the
4resolution providing for the issuance of these bonds may pledge
5or assign the revenues to be received from a participating small
6business. The indenture, trust agreement, or resolution providing
7for the issuance of these bonds may contain provisions for
8protecting and enforcing the rights and remedies of the bondholders
9and any provider of credit or liquidity support for these bonds as
10may be reasonable and proper and not in violation of law, including
11particularly those provisions as have hereinabove been specifically
12authorized to be included in any resolution or resolutions of the
13authority authorizing bonds thereof. Any trust agreement or
14indenture may set forth the rights and remedies of the bondholders,
15any provider of credit or liquidity support for these bonds, and of
16the trustee or trustees, and may restrict the individual right of action
17of bondholders. In addition to the foregoing, any indenture, trust
18agreement, or resolution may contain such other provisions as the
19authority may deem reasonable and proper for the security of the
20bondholders.

21

15427.36.  

Any provision that the authority may include in a
22trust agreement, indenture, or resolution pursuant to the act may
23alternatively be included in a bond with the same effect.

24

15427.38.  

Revenue bonds issued under the provisions of the
25act shall not be deemed to constitute a debt or liability of the state
26or of a political subdivision thereof or a pledge of the faith and
27credit of the state or of that political subdivision, other than the
28authority, but shall be payable solely from the moneys in the fund.
29These bonds shall contain a statement to the effect that neither the
30State of California nor the authority shall be obligated to pay the
31principal of, or the interest thereon, except from revenues of the
32authority, and that neither the faith and credit nor the taxing power
33of the State of California or of a political subdivision thereof is
34pledged to the payment of the principal of or the interest on these
35bonds. The issuance of revenue bonds under the act shall not
36directly or indirectly or contingently obligate the state or a political
37subdivision thereof to levy or to pledge a form of taxation whatever
38therefor or to make an appropriation for their payment.

39

15427.40  

Any holder of revenue bonds issued under the act or
40any of the coupons appertaining thereto, and the trustee or trustees
P12   1under any indenture or trust agreement, except to the extent the
2rights herein given may be restricted by any resolution authorizing
3the issuance of, or any such indenture or trust agreement securing,
4such bonds, may, either at law or in equity, by suit, action,
5mandamus or other proceedings, protect and enforce any and all
6rights under the laws of the state or granted hereunder or under
7such resolution or indenture or trust agreement, and may enforce
8and compel the performance of all duties required by the act or by
9such resolution, indenture, or trust agreement to be performed by
10the authority or by any officer, employee or agent thereof.

11

15427.42.  

All moneys received pursuant to the act, whether as
12proceeds from selling or incurring revenue bonds or as revenues,
13shall be deemed to be trust funds to be held and applied solely as
14provided in the act. Until the funds are applied as provided in the
15act, and notwithstanding any other provision of law, the moneys
16may be invested in any obligations or securities authorized by
17resolutions of the authority authorizing the issuance of the bonds.
18Any officer with whom, or any bank or trust company with which,
19the moneys are deposited shall act as trustee of the moneys and
20shall hold and apply the moneys for the purposes hereof, subject
21to any regulations adopted pursuant to the act and the resolution
22authorizing the issuance of the bonds or the indenture or trust
23agreement securing the bonds.

24

15427.44.  

(a) The authority may provide for the issuance of
25bonds of the authority for the purpose of redeeming, refunding, or
26retiring any bonds or any series or issue of bonds then outstanding
27issued for the benefit of a participating small business to finance
28or refinance a project, including the payment of any redemption
29premium thereon and any interest accrued or to accrue to the date
30of redemption, purchase, or maturity of the bonds.

31(b) The proceeds of any bonds issued for the purpose of
32refunding of outstanding bonds may, in the discretion of the
33authority, be applied to the purchase, redemption prior to maturity,
34or retirement at maturity of any outstanding bonds on their earliest
35redemption date or dates, upon their purchase or maturity, or paid
36to a third person to assume the authority’s obligation or the
37applicable bond issuer’s obligation to make the payments, and
38may, pending that application, be placed in escrow to be applied
39to the purchase, retirement at maturity, or redemption on the date
P13   1or dates determined by the authority or the participating small
2business.

3(c) Any proceeds placed in escrow may, pending their use, be
4invested and reinvested in obligations or securities authorized by
5resolutions of the authority or as determined by the participating
6small business, payable or maturing at the time or times as are
7appropriate to assure the prompt payment of the principal, interest,
8and redemption premium, if any, of the outstanding bonds to be
9refunded at maturity or redemption of the bonds to be refunded
10either at their earliest redemption date or dates or any subsequent
11redemption date or dates or for payment of interest on the refunding
12bonds on or prior to the final date of redemption or payment of
13the bonds to be refunded. After the terms of the escrow have been
14fully satisfied and carried out, any balance of the proceeds and
15interest, income and profits, if any, earned or realized on the
16investments thereof may be returned to the authority for use by
17the authority or the participating small business.

18(d) All of the bonds issued pursuant to subdivision (a) are subject
19to the act in the same manner and to the same extent as other bonds
20issued pursuant to the act.

21

15427.46.  

Bonds issued by the authority under the act are
22hereby made securities in which all banks, bankers, savings banks,
23trust companies and other persons carrying on a banking business;
24all insurance companies, insurance associations and other persons
25carrying on an insurance business; and all administrators, executors,
26guardians, trustees and other fiduciaries, and all other persons
27whatsoever who now are or may hereafter be authorized to invest
28in bonds or other obligations of the state, may properly and legally
29invest any funds, including capital belonging to them or within
30their control; and such bonds, notes or other securities or
31obligations are hereby made securities which may properly and
32legally be deposited with and received by any state or municipal
33officers or agency of the state for any purpose for which the deposit
34of bonds or other obligations of the state is now or may hereafter
35be authorized by law.

36

15427.48.  

Any bonds issued under the provisions of the act,
37their transfer, and the income therefrom shall at all times be free
38from taxation of every kind by the state and by all political
39subdivisions in the state.

P14   1

15427.50.  

The State of California does pledge to and agree
2with the holders of the bonds issued pursuant to the act, and with
3those parties who may enter into contracts with the authority
4pursuant to the provisions of the act, that the state will not limit,
5alter or restrict the rights hereby vested in the authority to finance
6small business projects and to fulfill the terms of any agreements
7made with the holders of bonds authorized by the act, and with
8the parties who may enter into contracts with the authority pursuant
9to the act, or in any way impair the rights or remedies of the holders
10of such bonds or such parties until the bonds, together with interest
11thereon, are fully paid and discharged and such contracts are fully
12performed on the part of the authority. The authority as a public
13body corporate and politic shall have the right to include the pledge
14herein made in its bonds and contracts.

15

15427.52.  

A pledge by or to the authority of revenues, moneys,
16accounts, accounts receivable, contract rights and other rights to
17payment of whatever kind made by or to the authority pursuant to
18the authority granted in the act shall be valid and binding from the
19time the pledge is made for the benefit of pledges and successors
20thereto. The revenues, moneys, accounts, accounts receivable,
21contract rights and other rights to payment of whatever kind
22pledged by or to the authority or its assignees shall immediately
23be subject to the lien of the pledge without physical delivery or
24further act. The lien of such pledge shall be valid and binding
25against all parties, irrespective of whether the parties have notice
26of the claim. The indenture, trust agreement, resolution or another
27instrument by which such pledge is created need not be recorded.

28

15427.54.  

Any net earnings of the authority beyond that
29necessary for retirement of any obligations issued by the authority
30or to implement the purposes of this chapter may inure to the
31benefit only of the State of California or the authority.

32

15427.56.  

Upon dissolution of the authority, title to all property
33owned by the authority shall vest in the successor authority created
34by the Legislature, if any, if the successor authority qualifies under
35Section 103 of the federal Internal Revenue Code of 1954, as
36amended, and the regulations promulgated thereunder, as an
37authority entitled to issue obligations on behalf of the State of
38California the interest on which is exempt from federal income
39taxation. If no such successor authority is so created, title to such
40property shall vest in the State of California.

end delete
P15   1

SEC. 2.  

The sum ofbegin delete $50,000,000 ($50 Million)end deletebegin insert fifty million
2dollars ($50,000,000)end insert
is hereby transferred from the General Fund
3to the California Americans with Disabilities Act Small Business
4Compliance Financing Authority Fund for the purposes of funding
5the activities of the California Americans with Disabilities Act
6Small Business Compliance Financing Authority pursuant to the
7California Americans with Disabilities Act Small Business
8Compliance Financing Authority Act.



O

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