CA AB1873

Authorizes the State Treasurer, Public Employees' Retirement System Board of Administration, and State Compensation Insurance Fund to purchase Property Assessed Clean Energy (PACE) bonds from their respective funds.

Allows joint powers authorities to purchase assessment contracts from local agencies and permits local agencies to sell their rights, title, and interest in assessment contracts authorized under Chapter 29 of the Streets and Highways Code.

Defines PACE bonds as those secured by voluntary contractual assessments or voluntary special taxes on property to finance distributed generation renewable energy sources or energy and water efficiency improvements.

Amends Insurance Code Section 11797 to permit the State Compensation Insurance Fund to purchase PACE bonds in addition to general obligation bonds and other state indebtedness.

Incorporates provisions to coordinate with SB 1407 if both bills are enacted before January 1, 2011, with Section 5.5 becoming operative only if this bill is enacted after SB 1407.