Article 7.5. Hazardous Substance Cleanup Bond Act Of 1984 of California Health And Safety Code >> Division 20. >> Chapter 6.8. >> Article 7.5.
This article shall be known and may be cited as the
Johnston-Filante Hazardous Substance Cleanup Bond Act of 1984.
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 state account.
(e) "Orphan site" means a site with a release or threatened
release of a hazardous substance with no reasonably identifiable
(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
(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.
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.
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
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.
(a) The moneys in the state account that are the proceeds
of bonds issued and sold pursuant to this article may be used, upon
appropriation by the Legislature, for the purposes specified in this
(b) The board may expend moneys in the fund, that are the proceeds
of bonds issued and sold pursuant to this article 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.
(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
(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.
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.
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
(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.
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
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.
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.
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.
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.