Article 3 - Market Development Zone Program

California Public Resources Code — §§ 42010-42025

Sections (15)

§ 42010

Amended by Stats. 1999, Ch. 467, Sec. 2. Effective January 1, 2000.

(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.

§ 42012

Amended by Stats. 2021, Ch. 258, Sec. 27. (SB 155) Effective September 23, 2021.

The local governing body, or any person through the local governing body, may apply to the department for designation as a recycling market development zone.

§ 42013

Amended by Stats. 2021, Ch. 258, Sec. 28. (SB 155) Effective September 23, 2021.

The department 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

Amended by Stats. 2021, Ch. 258, Sec. 29. (SB 155) Effective September 23, 2021.

The department may designate or redesignate recycling market development zones for persons applying for that designation.

§ 42019

Amended by Stats. 2021, Ch. 258, Sec. 34. (SB 155) Effective September 23, 2021.

In evaluating an application for the designation of a recycling market development zone, the department shall consider the amount of landfill capacity remaining in the jurisdiction where the zone would be located.

§ 42020

Amended by Stats. 2021, Ch. 258, Sec. 35. (SB 155) Effective September 23, 2021.

In evaluating an application for the designation of a recycling market development zone, the department shall not deny the application solely because of technical deficiencies. The department shall provide applicants with an opportunity to correct technical deficiencies. An application shall be denied if technical deficiencies are not corrected within 14 days.

§ 42023

Added by Stats. 1993, Ch. 733, Sec. 2. Effective January 1, 1994.

Nothing in this section shall be interpreted to limit the authority of local governments to make land use decisions within their jurisdiction.

§ 42023.1

Amended by Stats. 2021, Ch. 258, Sec. 37. (SB 155) Effective September 23, 2021. Inoperative July 1, 2031. Repealed as of January 1, 2032, by its own provisions.

(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 and for making payments pursuant to subdivision (g).

(b)Notwithstanding Section 13340 of the Government Code, the moneys deposited into the subaccount are hereby continuously appropriated to the department without regard to fiscal year for making loans pursuant to this article and for making payments pursuant to subdivision (g).

(c)The department may expend interest earnings on moneys in the subaccount for administrative expenses incurred in carrying out the

Recycling Market Development Revolving Loan Program, upon the appropriation of moneys in the subaccount for that purpose in the annual Budget Act.

(d)The moneys 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 into the subaccount.

(e)All interest accruing on interest payments from loan applicants shall be deposited into the subaccount.

(f)The department may expend the moneys 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 making the loan will benefit a local

jurisdiction or assist a local jurisdiction in complying with Section 40051.

(g)The department may expend the moneys in the subaccount to make payments to local governing bodies within a recycling market zone for services related to the promotion of the zone. The services may include, but are not limited to, training, outreach, development of written promotional materials, and technical analyses of feedstock availability.

(h)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.

(i)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.

(j)The department may expend moneys in the subaccount for the administration of the Recycling Market Development Revolving Loan Program, upon the appropriation of moneys in the subaccount for that purpose in the annual Budget Act. In addition, the department may expend moneys in the account to administer the revolving loan program, upon the appropriation of moneys in the account 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 moneys in the subaccount to fully fund the administration of the program.

(k)The department, pursuant to subdivision (a) of Section 47901, may set aside moneys 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’s 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.

(l)(1) Except as provided in paragraph (2), this section shall become inoperative on July 1, 2031, and as of January 1, 2032, is repealed, unless a later enacted statute, which becomes effective on or before January 1, 2032, 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

Amended by Stats. 2019, Ch. 690, Sec. 9. (AB 1583) Effective January 1, 2020. Inoperative July 1, 2031. Repealed as of January 1, 2032, by its own provisions.

(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, 2031, and as of January 1, 2032, is repealed, unless a later enacted statute, which becomes effective on or before January 1, 2032, 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

Amended by Stats. 2019, Ch. 690, Sec. 10. (AB 1583) Effective January 1, 2020. Inoperative July 1, 2031. Repealed as of January 1, 2032, by its own provisions.

(a)All money remaining in the subaccount on July 1, 2031, and all money received as repayment and interest on loans shall, as of July 1, 2031, be transferred to the account and any money due and outstanding on loans as of July 1, 2031, 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, 2031, and as of January 1, 2032, is

repealed, unless a later enacted statute, which becomes effective on or before January 1, 2032, 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

Amended by Stats. 2021, Ch. 258, Sec. 38. (SB 155) Effective September 23, 2021. Inoperative July 1, 2031. Repealed as of January 1, 2032, by its own provisions.

(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. The department shall establish the loan interest rate as low as possible to make projects feasible and post the interest rate on its internet website. All money received as repayment and interest on loans made

pursuant to this section shall be deposited in the subaccount.

(2)The department shall approve only those loan applications that demonstrate the applicant’s ability to repay the loan.

(3)Priority for funding shall be given to projects for circular recycling programs that result in the product being recycled into a product that is also recyclable, as determined by the department, or that has a minimum lifespan of 10 or more years. The department shall establish project eligibility criteria and make it available to the public in order to achieve the intent of the Legislature.

(4)A loan shall not be provided for a project that will result in the production of fuels or energy through transformation, engineered municipal solid waste conversion, or other disposal activities.

(5)The Department of Finance may audit the expenditure of the proceeds of a loan made pursuant to Section 42023.1 and this section.

(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

Amended by Stats. 2019, Ch. 690, Sec. 12. (AB 1583) Effective January 1, 2020. Inoperative July 1, 2031. Repealed as of January 1, 2032, by its own provisions.

(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, 2031, and as of January 1, 2032, is repealed, unless a later enacted statute, which becomes effective on or before January 1, 2032, deletes or extends the date on which it becomes inoperative and is repealed.

§ 42023.6

Amended by Stats. 2019, Ch. 690, Sec. 13. (AB 1583) Effective January 1, 2020. Inoperative July 1, 2031. Repealed as of January 1, 2032, by its own provisions.

(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, 2031, and as of January 1, 2032, is repealed, unless a later enacted statute, which becomes effective on or before January 1, 2032, 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

Amended by Stats. 2021, Ch. 258, Sec. 39. (SB 155) Effective September 23, 2021.

The department, 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.

§ 42025

Added by Stats. 2021, Ch. 258, Sec. 40. (SB 155) Effective September 23, 2021.

The department shall update its regulations relating to the implementation of this article. Any regulation promulgated pursuant to this article and in effect on September 1, 2021, shall remain in effect until the department revises or repeals that regulation or January 1, 2022, whichever occurs first.