Oil and gas: loan to City of Hermosa Beach.

Existing law requires the State Lands Commission to deposit in the General Fund all revenues, moneys, and remittances received by the commission, with certain exceptions. Existing law requires that the moneys be used for specified purposes, including refunds, commission expenses, and specified payments to cities and counties. This bill would appropriate $11,500,000 from the General Fund, from certain oil and gas revenues deposited by the commission, to the Controller for a loan to the City of Hermosa Beach, to be made if the city is obligated to make payment pursuant to a specified settlement agreement. The bill would require the State Board of Equalization, if the city fails to make any payment on the loan when due and upon the order of the Controller, to deduct the amount of the payment from the sales and use taxes to be paid to the city. The bill would also require the Controller to deposit moneys received in repayment of the loan into the General Fund. This bill would declare that it is to take effect immediately as an urgency statute.