California Pollution Control Financing Authority.

Assembly Member Jackson's legislation restructures key financing mechanisms within the California Pollution Control Financing Authority (CPCFA) while expanding access to capital for small businesses and property owners. The bill modifies the Authority's role in utility project financing and enhances several loan programs targeting regulatory compliance and seismic safety.

The legislation removes CPCFA's oversight requirements for rate reduction bonds under the Marks-Roos Local Bond Pooling Act while broadening participation in the Capital Access Loan Program. Financial institutions regulated by the Department of Financial Protection and Innovation can now participate alongside California-domiciled and principal-office institutions. The bill establishes the California Capital Access Fund as a continuously appropriated resource, allowing it to receive private, state, and federal funding.

For the Americans with Disabilities Act Small Business Capital Access Loan Program, the bill expands eligible expenditures to include various forms of financial assistance, such as loans, credit enhancements, and interest rate subsidies. Similar provisions apply to the California Seismic Safety Capital Access Loan Program, which helps property owners and small businesses undertake seismic retrofitting projects.

The legislation maintains program integrity through detailed eligibility criteria, loss reserve account requirements, and limitations on administrative costs. Financial institutions must establish dedicated loss reserve accounts, obtain certifications for loan purposes, and adhere to specific term limits for loss coverage. The authority to issue rate reduction bonds under these provisions expires December 31, 2036.