AB 1533: Infrastructure financing.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2015-09-30
(1)The Bergeson-Peace Infrastructure and Economic Development Bank Act establishes the California Infrastructure and Economic Development Bank, within the Governors Office of Business and Economic Development, to be governed by a specified board of directors. The act makes findings and declarations, provides definitions, and authorizes the board to take various actions in connection with the bank, including the issuance of bonds, as specified.
This bill, among other things, would revise the definition of economic development facilities to include facilities that are used to provide goods movement and would define goods movement-related infrastructure. The bill would revise the definition of port facilities to specifically reference airports, landports, waterports, and railports.
(2)Existing law authorizes the Governors Office of Business and Economic Development and its director to expend funds relating to the Economic Adjustment Assistance Grant funded through the United States Economic Development Administration.
This bill would repeal these provisions, and would specify that, effective June 30, 2014, those funds are transferred to the Valley Economic Development Corporation pursuant to the terms and conditions agreed to by the United States Economic Development Administration, the Governors Office of Business and Economic Development, and the Valley Economic Development Center, Inc., on June 17, 2014.
(1)The Bergeson-Peace Infrastructure and Economic Development Bank Act establishes the California Infrastructure and Economic Development Bank, within the Governors Office of Business and Economic Development, to be governed by a specified board of directors. The act makes findings and declarations, provides definitions, and authorizes the board to take various actions in connection with the bank, including the issuance of bonds, as specified.
This bill, among other things, would revise the definition of economic development facilities to include facilities that are used to provide goods movement and would define goods movement-related infrastructure. The bill would revise the definition of port facilities to specifically reference airports, landports, waterports, and railports.
(2)Existing law authorizes the Governors Office of Business and Economic Development and its director to expend funds relating to the Economic Adjustment Assistance Grant funded through the United States Economic Development Administration.
This bill would repeal these provisions, and would specify that, effective June 30, 2014, those funds are transferred to the Valley Economic Development Corporation pursuant to the terms and conditions agreed to by the United States Economic Development Administration, the Governors Office of Business and Economic Development, and the Valley Economic Development Center, Inc., on June 17, 2014.
(1)The Bergeson-Peace Infrastructure and Economic Development Bank Act establishes the California Infrastructure and Economic Development Bank, within the Governors Office of Business and Economic Development, to be governed by a specified board of directors. The act makes findings and declarations, provides definitions, and authorizes the board to take various actions in connection with the bank, including the issuance of bonds, as specified.
This bill, among other things, would revise the definition of economic development facilities to include facilities that are used to provide goods movement and would define goods movement-related infrastructure. The bill would revise the definition of port facilities to specifically reference airports, landports, waterports, and railports.
(2)Existing law authorizes the Governors Office of Business and Economic Development and its director to expend specified funds relating to the Economic Adjustment Assistance Grant funded through the United States Economic Development Administration.
This bill would renumber this provisions repeal these provisions, and would instead authorize the California Infrastructure and Economic Development Bank and its executive director to expend these funds, as specified specify that, effective June 30, 2014, those funds are transferred to the Valley Economic Development Corporation pursuant to the terms and conditions agreed to by the United States Economic Development Administration, the Governors Office of Business and Economic Development, and the Valley Economic Development Center, Inc., on that date.
(1)The Bergeson-Peace Infrastructure and Economic Development Bank Act establishes the California Infrastructure and Economic Development Bank, within the Governors Office of Business and Economic Development, to be governed by a specified board of directors. The act makes findings and declarations, provides definitions, and authorizes the board to take various actions in connection with the bank, including the issuance of bonds, as specified.
This bill, among other things, would revise the definition of economic development facilities to include facilities that are used to provide goods movement and would define goods movement-related infrastructure. The bill would revise the definition of port facilities to specifically reference airports, landports, waterports, and railports, and would expand the definition of a participating party to include an international governmental entity. railports.
(2)Existing law authorizes the Governors Office of Business and Economic Development and its director to expend specified funds.
This bill would renumber this provisions, and would instead authorize the California Infrastructure and Economic Development Bank and its executive director to expend these funds, as specified.
(1)The Bergeson-Peace Infrastructure and Economic Development Bank Act establishes the California Infrastructure and Economic Development Bank, within the Governors Office of Business and Economic Development, to be governed by a specified board of directors. The act makes findings and declarations, provides definitions, and authorizes the board to take various actions in connection with the bank, including the issuance of bonds, as specified.
This bill, among other things, would revise the definition of economic development facilities to include facilities that are used to provide goods movement and would define goods movement-related infrastructure. The bill would revise the definition of port facilities to specifically reference airports, landports, waterports, and railports, and would expand the definition of a participating party to include an international governmental entity.
(2)Existing law authorizes the Governors Office of Business and Economic Development and its director to expend specified funds.
This bill would renumber this provisions, and would instead authorize the California Infrastructure and Economic Development Bank and its executive director to expend these funds, as specified.
Notwithstanding any other law, effective June 30, 2014, the Economic Adjustment Assistance Grant funded through the United States Economic Development Administration under Title IX of the Public Works and Economic Development Act of 1965 (Grant No. 07-19-02709 and 07-19-2709.01) shall be transferred to the Valley Economic Development Center, Inc. The State of California is the dismissed grantee and the Valley Economic Development Center, Inc., shall be the successor grantee. All responsibilities and authorities associated with these funds shall be transferred from the Governors Office of Business and Economic Development to the Valley Economic Development Center, Inc., pursuant to the terms and conditions agreed to by all parties, including the United States Economic Development Administration, the Governors Office of Business and Economic Development, and the Valley Economic Development Center, Inc., pursuant to the Offer and Acceptance of Award Amendment For Transfer of Award entered into by the parties on June 17, 2014.
SEC. 3.Section 63010 of the Government Code is amended to read:63010.For purposes of this division, the following words and terms shall have the following meanings unless the context clearly indicates or requires another or different meaning or intent:
(a)Act means the Bergeson-Peace Infrastructure and Economic Development Bank Act.
(b)Bank means the California Infrastructure and Economic Development Bank.
(c)Board or bank board means the Board of Directors of the California Infrastructure and Economic Development Bank.
(d)Bond purchase agreement means a contractual agreement executed between the bank and a sponsor, or a special purpose trust authorized by the bank or a sponsor, or both, whereby the bank or special purpose trust authorized by the bank agrees to purchase bonds of the sponsor for retention or sale.
(e)Bonds means bonds, including structured, senior, and subordinated bonds or other securities; loans; notes, including bond, revenue, tax, or grant anticipation notes; commercial paper; floating rate and variable maturity securities; and any other evidences of indebtedness or ownership, including certificates of participation or beneficial interest, asset backed certificates, or lease-purchase or installment purchase agreements, whether taxable or excludable from gross income for federal income taxation purposes.
(f)Cost, as applied to a project or portion thereof financed under this division, means all or any part of the cost of construction, renovation, and acquisition of all lands, structures, real or personal property, rights, rights-of-way, franchises, licenses, easements, and interests acquired or used for a project; the cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring any lands to which the buildings or structures may be moved; the cost of all machinery, equipment, and financing charges; interest prior to, during, and for a period after completion of construction, renovation, or acquisition, as determined by the bank; provisions for working capital; reserves for principal and interest and for extensions, enlargements, additions, replacements, renovations, and improvements; and the cost of architectural, engineering, financial and legal services, plans, specifications, estimates, administrative expenses, and other expenses necessary or incidental to determining the feasibility of any project or incidental to the construction, acquisition, or financing of any project, and transition costs in the case of an electrical corporation.
(g)Economic development facilities means real and personal property, structures, buildings, equipment, and supporting components thereof that are used to provide industrial, recreational, research, commercial, utility, goods movement, or service enterprise facilities, community, educational, cultural, or social welfare facilities and any parts or combinations thereof, and all facilities or infrastructure necessary or desirable in connection therewith, including provision for working capital, but shall not include any housing.
(h)Electrical corporation has the meaning set forth in Section 218 of the Public Utilities Code.
(i)Executive director means the Executive Director of the California Infrastructure and Economic Development Bank appointed pursuant to Section 63021.
(j)Financial assistance in connection with a project, includes, but is not limited to, any combination of grants, loans, the proceeds of bonds issued by the bank or special purpose trust, insurance, guarantees or other credit enhancements or liquidity facilities, and contributions of money, property, labor, or other things of value, as may be approved by resolution of the board or the sponsor, or both; the purchase or retention of bank bonds, the bonds of a sponsor for their retention or for sale by the bank, or the issuance of bank bonds or the bonds of a special purpose trust used to fund the cost of a project for which a sponsor is directly or indirectly liable, including, but not limited to, bonds, the security for which is provided in whole or in part pursuant to the powers granted by Section 63025.1; bonds for which the bank has provided a guarantee or enhancement, including, but not limited to, the purchase of the subordinated bonds of the sponsor, the subordinated bonds of a special purpose trust, or the retention of the subordinated bonds of the bank pursuant to Chapter 4 (commencing with Section 63060); or any other type of assistance deemed appropriate by the bank or the sponsor, except that no direct loans shall be made to nonpublic entities other than in connection with the issuance of rate reduction bonds pursuant to a financing order or in connection with a financing for an economic development facility.
For purposes of this subdivision, grant does not include grants made by the bank except when acting as an agent or intermediary for the distribution or packaging of financing available from federal, private, or other public sources.
(k)Financing order has the meaning set forth in Section 840 of the Public Utilities Code.
(l)Guarantee trust fund means the California Infrastructure Guarantee Trust Fund.
(m)Infrastructure bank fund means the California Infrastructure and Economic Development Bank Fund.
(n)Loan agreement means a contractual agreement executed between the bank or a special purpose trust and a sponsor that provides that the bank or special purpose trust will loan funds to the sponsor and that the sponsor will repay the principal and pay the interest and redemption premium, if any, on the loan.
(o)Participating party means any person, company, corporation, association, state, or municipal governmental entity, partnership, firm, or other entity or group of entities, whether organized for profit or not for profit, engaged in business or operations within the state and that applies for financing from the bank in conjunction with a sponsor for the purpose of implementing a project. However, in the case of a project relating to the financing of transition costs or the acquisition of transition property, or both, on the request of an electrical corporation, or in connection with financing for an economic development facility, or for the financing of insurance claims, the participating party shall be deemed to be the same entity as the sponsor for the financing.
(p)Project means designing, acquiring, planning, permitting, entitling, constructing, improving, extending, restoring, financing, and generally developing public development facilities or economic development facilities within the state or financing transition costs or the acquisition of transition property, or both, upon approval of a financing order by the Public Utilities Commission, as provided in Article 5.5 (commencing with Section 840) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code.
(q)Public development facilities means real and personal property, structures, conveyances, equipment, thoroughfares, buildings, and supporting components thereof, excluding any housing, that are directly related to providing the following:
(1)City streets including any street, avenue, boulevard, road, parkway, drive, or other way that is any of the following:
(A)An existing municipal roadway.
(B)Is shown upon a plat approved pursuant to law and includes the land between the street lines, whether improved or unimproved, and may comprise pavement, bridges, shoulders, gutters, curbs, guardrails, sidewalks, parking areas, benches, fountains, plantings, lighting systems, and other areas within the street lines, as well as equipment and facilities used in the cleaning, grading, clearance, maintenance, and upkeep thereof.
(2)County highways including any county highway as defined in Section 25 of the Streets and Highways Code, that includes the land between the highway lines, whether improved or unimproved, and may comprise pavement, bridges, shoulders, gutters, curbs, guardrails, sidewalks, parking areas, benches, fountains, plantings, lighting systems, and other areas within the street lines, as well as equipment and facilities used in the cleaning, grading, clearance, maintenance, and upkeep thereof.
(3)Drainage, water supply, and flood control including, but not limited to, ditches, canals, levees, pumps, dams, conduits, pipes, storm sewers, and dikes necessary to keep or direct water away from people, equipment, buildings, and other protected areas as may be established by lawful authority, as well as the acquisition, improvement, maintenance, and management of floodplain areas and all equipment used in the maintenance and operation of the foregoing.
(4)Educational facilities including libraries, child care facilities, including, but not limited to, day care facilities, and employment training facilities.
(5)Environmental mitigation measures including required construction or modification of public infrastructure and purchase and installation of pollution control and noise abatement equipment.
(6)Parks and recreational facilities including local parks, recreational property and equipment, parkways, and property.
(7)Port facilities including airports, landports, waterports, railports, docks, harbors, ports of entry, piers, ships, small boat harbors and marinas, and any other facilities, additions, or improvements in connection therewith, that transport goods or persons.
(8)Power and communications including facilities for the transmission or distribution of electrical energy, natural gas, and telephone and telecommunications service.
(9)Public transit including air and rail transport, airports, guideways, vehicles, rights-of-way, passenger stations, maintenance and storage yards, and related structures, including public parking facilities, and equipment used to provide or enhance transportation by bus, rail, ferry, or other conveyance, either publicly or privately owned, that provides to the public general or special service on a regular and continuing basis.
(10)Sewage collection and treatment including pipes, pumps, and conduits that collect wastewater from residential, manufacturing, and commercial establishments, the equipment, structures, and facilities used in treating wastewater to reduce or eliminate impurities or contaminants, and the facilities used in disposing of, or transporting, remaining sludge, as well as all equipment used in the maintenance and operation of the foregoing.
(11)Solid waste collection and disposal including vehicles, vehicle-compatible waste receptacles, transfer stations, recycling centers, sanitary landfills, and waste conversion facilities necessary to remove solid waste, except that which is hazardous as defined by law, from its point of origin.
(12)Water treatment and distribution including facilities in which water is purified and otherwise treated to meet residential, manufacturing, or commercial purposes and the conduits, pipes, and pumps that transport it to places of use.
(13)Defense conversion including, but not limited to, facilities necessary for successfully converting military bases consistent with an adopted base reuse plan.
(14)Public safety facilities including, but not limited to, police stations, fire stations, court buildings, jails, juvenile halls, and juvenile detention facilities.
(15)State highways including any state highway as described in Chapter 2 (commencing with Section 230) of Division 1 of the Streets and Highways Code, and the related components necessary for safe operation of the highway.
(16)(A)Military infrastructure, including, but not limited to, facilities on or near a military installation, that enhance the military operations and mission of one or more military installations in this state. To be eligible for funding, the project shall be endorsed by the Office of Planning and Research.
(B)For purposes of this subdivision, military installation means any facility under the jurisdiction of the Department of Defense, as defined in paragraph (1) of subsection (e) of Section 2687 of Title 10 of the United States Code.
(17)Goods movement-related infrastructure including port facilities, roads, rail, and other facilities and projects that move goods, energy, and information.
(r)Rate reduction bonds has the meaning set forth in Section 840 of the Public Utilities Code.
(s)Revenues means all receipts, purchase payments, loan repayments, lease payments, and all other income or receipts derived by the bank or a sponsor from the sale, lease, or other financing arrangement undertaken by the bank, a sponsor, or a participating party, including, but not limited to, all receipts from a bond purchase agreement, and any income or revenue derived from the investment of any money in any fund or account of the bank or a sponsor and any receipts derived from transition property. Revenues shall not include moneys in the General Fund of the state.
(t)Special purpose trust means a trust, partnership, limited partnership, association, corporation, nonprofit corporation, or other entity authorized under the laws of the state to serve as an instrumentality of the state to accomplish public purposes and authorized by the bank to acquire, by purchase or otherwise, for retention or sale, the bonds of a sponsor or of the bank made or entered into pursuant to this division and to issue special purpose trust bonds or other obligations secured by these bonds or other sources of public or private revenues. Special purpose trust also means any entity authorized by the bank to acquire transition property or to issue rate reduction bonds, or both, subject to the approvals by the bank and powers of the bank as are provided by the bank in its resolution authorizing the entity to issue rate reduction bonds.
(u)Sponsor means any subdivision of the state or local government including departments, agencies, commissions, cities, counties, nonprofit corporations formed on behalf of a sponsor, special districts, assessment districts, and joint powers authorities within the state or any combination of these subdivisions that makes an application to the bank for financial assistance in connection with a project in a manner prescribed by the bank. This definition shall not be construed to require that an applicant have an ownership interest in the project. In addition, an electrical corporation shall be deemed to be the sponsor as well as the participating party for any project relating to the financing of transition costs and the acquisition of transition property on the request of the electrical corporation and any person, company, corporation, partnership, firm, or other entity or group engaged in business or operation within the state that applies for financing of any economic development facility, shall be deemed to be the sponsor as well as the participating party for the project relating to the financing of that economic development facility.
(v)State means the State of California.
(w)Transition costs has the meaning set forth in Section 840 of the Public Utilities Code.
(x)Transition property has the meaning set forth in Section 840 of the Public Utilities Code.
Notwithstanding any other law, effective June 30, 2014, the Economic Adjustment Assistance Grant funded through the United States Economic Development Administration under Title IX of the Public Works and Economic Development Act of 1965 (Grant No. 07-19-02709 and 07-19-2709.01) shall be transferred to the Valley Economic Development Center, Inc. The State of California is the dismissed grantee and the Valley Economic Development Center, Inc., shall be the successor grantee. All responsibilities and authorities associated with these funds shall be transferred from the Governors Office of Business and Economic Development to the Valley Economic Development Center, Inc., pursuant to the terms and conditions agreed to by all parties, including the United States Economic Development Administration, the Governors Office of Business and Economic Development, and the Valley Economic Development Center, Inc., pursuant to the Offer and Acceptance of Award Amendment For Transfer of Award entered into by the parties on June 17, 2014.
SEC. 3.Section 63010 of the Government Code is amended to read:63010.For purposes of this division, the following words and terms shall have the following meanings unless the context clearly indicates or requires another or different meaning or intent:
(a)Act means the Bergeson-Peace Infrastructure and Economic Development Bank Act.
(b)Bank means the California Infrastructure and Economic Development Bank.
(c)Board or bank board means the Board of Directors of the California Infrastructure and Economic Development Bank.
(d)Bond purchase agreement means a contractual agreement executed between the bank and a sponsor, or a special purpose trust authorized by the bank or a sponsor, or both, whereby the bank or special purpose trust authorized by the bank agrees to purchase bonds of the sponsor for retention or sale.
(e)Bonds means bonds, including structured, senior, and subordinated bonds or other securities; loans; notes, including bond, revenue, tax, or grant anticipation notes; commercial paper; floating rate and variable maturity securities; and any other evidences of indebtedness or ownership, including certificates of participation or beneficial interest, asset backed certificates, or lease-purchase or installment purchase agreements, whether taxable or excludable from gross income for federal income taxation purposes.
(f)Cost, as applied to a project or portion thereof financed under this division, means all or any part of the cost of construction, renovation, and acquisition of all lands, structures, real or personal property, rights, rights-of-way, franchises, licenses, easements, and interests acquired or used for a project; the cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring any lands to which the buildings or structures may be moved; the cost of all machinery, equipment, and financing charges; interest prior to, during, and for a period after completion of construction, renovation, or acquisition, as determined by the bank; provisions for working capital; reserves for principal and interest and for extensions, enlargements, additions, replacements, renovations, and improvements; and the cost of architectural, engineering, financial and legal services, plans, specifications, estimates, administrative expenses, and other expenses necessary or incidental to determining the feasibility of any project or incidental to the construction, acquisition, or financing of any project, and transition costs in the case of an electrical corporation.
(g)Economic development facilities means real and personal property, structures, buildings, equipment, and supporting components thereof that are used to provide industrial, recreational, research, commercial, utility, goods movement, or service enterprise facilities, community, educational, cultural, or social welfare facilities and any parts or combinations thereof, and all facilities or infrastructure necessary or desirable in connection therewith, including provision for working capital, but shall not include any housing.
(h)Electrical corporation has the meaning set forth in Section 218 of the Public Utilities Code.
(i)Executive director means the Executive Director of the California Infrastructure and Economic Development Bank appointed pursuant to Section 63021.
(j)Financial assistance in connection with a project, includes, but is not limited to, any combination of grants, loans, the proceeds of bonds issued by the bank or special purpose trust, insurance, guarantees or other credit enhancements or liquidity facilities, and contributions of money, property, labor, or other things of value, as may be approved by resolution of the board or the sponsor, or both; the purchase or retention of bank bonds, the bonds of a sponsor for their retention or for sale by the bank, or the issuance of bank bonds or the bonds of a special purpose trust used to fund the cost of a project for which a sponsor is directly or indirectly liable, including, but not limited to, bonds, the security for which is provided in whole or in part pursuant to the powers granted by Section 63025.1; bonds for which the bank has provided a guarantee or enhancement, including, but not limited to, the purchase of the subordinated bonds of the sponsor, the subordinated bonds of a special purpose trust, or the retention of the subordinated bonds of the bank pursuant to Chapter 4 (commencing with Section 63060); or any other type of assistance deemed appropriate by the bank or the sponsor, except that no direct loans shall be made to nonpublic entities other than in connection with the issuance of rate reduction bonds pursuant to a financing order or in connection with a financing for an economic development facility.
For purposes of this subdivision, grant does not include grants made by the bank except when acting as an agent or intermediary for the distribution or packaging of financing available from federal, private, or other public sources.
(k)Financing order has the meaning set forth in Section 840 of the Public Utilities Code.
(l)Guarantee trust fund means the California Infrastructure Guarantee Trust Fund.
(m)Infrastructure bank fund means the California Infrastructure and Economic Development Bank Fund.
(n)Loan agreement means a contractual agreement executed between the bank or a special purpose trust and a sponsor that provides that the bank or special purpose trust will loan funds to the sponsor and that the sponsor will repay the principal and pay the interest and redemption premium, if any, on the loan.
(o)Participating party means any person, company, corporation, association, state, or municipal governmental entity, partnership, firm, or other entity or group of entities, whether organized for profit or not for profit, engaged in business or operations within the state and that applies for financing from the bank in conjunction with a sponsor for the purpose of implementing a project. However, in the case of a project relating to the financing of transition costs or the acquisition of transition property, or both, on the request of an electrical corporation, or in connection with financing for an economic development facility, or for the financing of insurance claims, the participating party shall be deemed to be the same entity as the sponsor for the financing.
(p)Project means designing, acquiring, planning, permitting, entitling, constructing, improving, extending, restoring, financing, and generally developing public development facilities or economic development facilities within the state or financing transition costs or the acquisition of transition property, or both, upon approval of a financing order by the Public Utilities Commission, as provided in Article 5.5 (commencing with Section 840) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code.
(q)Public development facilities means real and personal property, structures, conveyances, equipment, thoroughfares, buildings, and supporting components thereof, excluding any housing, that are directly related to providing the following:
(1)City streets including any street, avenue, boulevard, road, parkway, drive, or other way that is any of the following:
(A)An existing municipal roadway.
(B)Is shown upon a plat approved pursuant to law and includes the land between the street lines, whether improved or unimproved, and may comprise pavement, bridges, shoulders, gutters, curbs, guardrails, sidewalks, parking areas, benches, fountains, plantings, lighting systems, and other areas within the street lines, as well as equipment and facilities used in the cleaning, grading, clearance, maintenance, and upkeep thereof.
(2)County highways including any county highway as defined in Section 25 of the Streets and Highways Code, that includes the land between the highway lines, whether improved or unimproved, and may comprise pavement, bridges, shoulders, gutters, curbs, guardrails, sidewalks, parking areas, benches, fountains, plantings, lighting systems, and other areas within the street lines, as well as equipment and facilities used in the cleaning, grading, clearance, maintenance, and upkeep thereof.
(3)Drainage, water supply, and flood control including, but not limited to, ditches, canals, levees, pumps, dams, conduits, pipes, storm sewers, and dikes necessary to keep or direct water away from people, equipment, buildings, and other protected areas as may be established by lawful authority, as well as the acquisition, improvement, maintenance, and management of floodplain areas and all equipment used in the maintenance and operation of the foregoing.
(4)Educational facilities including libraries, child care facilities, including, but not limited to, day care facilities, and employment training facilities.
(5)Environmental mitigation measures including required construction or modification of public infrastructure and purchase and installation of pollution control and noise abatement equipment.
(6)Parks and recreational facilities including local parks, recreational property and equipment, parkways, and property.
(7)Port facilities including airports, landports, waterports, railports, docks, harbors, ports of entry, piers, ships, small boat harbors and marinas, and any other facilities, additions, or improvements in connection therewith, that transport goods or persons.
(8)Power and communications including facilities for the transmission or distribution of electrical energy, natural gas, and telephone and telecommunications service.
(9)Public transit including air and rail transport, airports, guideways, vehicles, rights-of-way, passenger stations, maintenance and storage yards, and related structures, including public parking facilities, and equipment used to provide or enhance transportation by bus, rail, ferry, or other conveyance, either publicly or privately owned, that provides to the public general or special service on a regular and continuing basis.
(10)Sewage collection and treatment including pipes, pumps, and conduits that collect wastewater from residential, manufacturing, and commercial establishments, the equipment, structures, and facilities used in treating wastewater to reduce or eliminate impurities or contaminants, and the facilities used in disposing of, or transporting, remaining sludge, as well as all equipment used in the maintenance and operation of the foregoing.
(11)Solid waste collection and disposal including vehicles, vehicle-compatible waste receptacles, transfer stations, recycling centers, sanitary landfills, and waste conversion facilities necessary to remove solid waste, except that which is hazardous as defined by law, from its point of origin.
(12)Water treatment and distribution including facilities in which water is purified and otherwise treated to meet residential, manufacturing, or commercial purposes and the conduits, pipes, and pumps that transport it to places of use.
(13)Defense conversion including, but not limited to, facilities necessary for successfully converting military bases consistent with an adopted base reuse plan.
(14)Public safety facilities including, but not limited to, police stations, fire stations, court buildings, jails, juvenile halls, and juvenile detention facilities.
(15)State highways including any state highway as described in Chapter 2 (commencing with Section 230) of Division 1 of the Streets and Highways Code, and the related components necessary for safe operation of the highway.
(16)(A)Military infrastructure, including, but not limited to, facilities on or near a military installation, that enhance the military operations and mission of one or more military installations in this state. To be eligible for funding, the project shall be endorsed by the Office of Planning and Research.
(B)For purposes of this subdivision, military installation means any facility under the jurisdiction of the Department of Defense, as defined in paragraph (1) of subsection (e) of Section 2687 of Title 10 of the United States Code.
(17)Goods movement-related infrastructure including port facilities, roads, rail, and other facilities and projects that move goods, energy, and information.
(r)Rate reduction bonds has the meaning set forth in Section 840 of the Public Utilities Code.
(s)Revenues means all receipts, purchase payments, loan repayments, lease payments, and all other income or receipts derived by the bank or a sponsor from the sale, lease, or other financing arrangement undertaken by the bank, a sponsor, or a participating party, including, but not limited to, all receipts from a bond purchase agreement, and any income or revenue derived from the investment of any money in any fund or account of the bank or a sponsor and any receipts derived from transition property. Revenues shall not include moneys in the General Fund of the state.
(t)Special purpose trust means a trust, partnership, limited partnership, association, corporation, nonprofit corporation, or other entity authorized under the laws of the state to serve as an instrumentality of the state to accomplish public purposes and authorized by the bank to acquire, by purchase or otherwise, for retention or sale, the bonds of a sponsor or of the bank made or entered into pursuant to this division and to issue special purpose trust bonds or other obligations secured by these bonds or other sources of public or private revenues. Special purpose trust also means any entity authorized by the bank to acquire transition property or to issue rate reduction bonds, or both, subject to the approvals by the bank and powers of the bank as are provided by the bank in its resolution authorizing the entity to issue rate reduction bonds.
(u)Sponsor means any subdivision of the state or local government including departments, agencies, commissions, cities, counties, nonprofit corporations formed on behalf of a sponsor, special districts, assessment districts, and joint powers authorities within the state or any combination of these subdivisions that makes an application to the bank for financial assistance in connection with a project in a manner prescribed by the bank. This definition shall not be construed to require that an applicant have an ownership interest in the project. In addition, an electrical corporation shall be deemed to be the sponsor as well as the participating party for any project relating to the financing of transition costs and the acquisition of transition property on the request of the electrical corporation and any person, company, corporation, partnership, firm, or other entity or group engaged in business or operation within the state that applies for financing of any economic development facility, shall be deemed to be the sponsor as well as the participating party for the project relating to the financing of that economic development facility.
(v)State means the State of California.
(w)Transition costs has the meaning set forth in Section 840 of the Public Utilities Code.
(x)Transition property has the meaning set forth in Section 840 of the Public Utilities Code.
(a)Notwithstanding any other law, effective January 1, 2008, the Economic Adjustment Assistance Grant funded through the United States Economic Development Administration under Title IX of the Public Works and Economic Development Act of 1965 (Grant No. 071902709 and 07192709.1) shall be administered by the director, and, for the purpose of state administration of this grant, the director shall be deemed to be the successor to the former Secretary of Business, Transportation and Housing and the former Secretary of Technology, Trade and Commerce. The director may assign and contract administration of the grant to a public agency created pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1.
(b)On January 1, 2008, all federal moneys held in the Sudden and Severe Economic Dislocation Grant Account within the Special Deposit Fund are hereby transferred to the Small Business Expansion Fund created pursuant to Section 14030 of the Corporations Code for expenditure by the office pursuant to Article 9 (commencing with Section 14070) of the Corporations Code for purposes of the Sudden and Severe Economic Dislocation Grant program, or other purposes permitted by the cognizant federal agency.
(c)All loan repayments received on or after January 1, 2008, for the Sudden and Severe Economic Dislocation Grant program loans issued pursuant to former Section 15327 (repealed by Section 1.8 of Chapter 229 of the Statutes of 2003 (AB 1757)) and this section, shall be deposited into the Small Business Expansion Fund and shall be available to the office for expenditure pursuant to the provisions of Article 9 (commencing with Section 14070) of the Corporations Code for the Sudden and Severe Economic Dislocation Grant program, or other purposes permitted by the cognizant federal agency.
SEC. 2.Section 12098.7 is added to the Government Code, to read:12098.7.Notwithstanding any other law, effective June 30, 2014, the Economic Adjustment Assistance Grant funded through the United States Economic Development Administration under Title IX of the Public Works and Economic Development Act of 1965 (Grant No. 07-19-02709 and 07-19-2709.01) shall be transferred to the Valley Economic Development Center, Inc. The State of California is the dismissed grantee and the Valley Economic Development Center, Inc., shall be the successor grantee. All responsibilities and authorities associated with these funds shall be transferred from the Governors Office of Business and Economic Development to the Valley Economic Development Center, Inc., pursuant to the terms and conditions agreed to by all parties, including the United States Economic Development Administration, the Governors Office of Business and Economic Development, and the Valley Economic Development Center, Inc., pursuant to the Offer and Acceptance of Award Amendment For Transfer of Award entered into by the parties on June 17, 2014.
SECTION 1.SEC. 3.Section 63010 of the Government Code is amended to read:63010.For purposes of this division, the following words and terms shall have the following meanings unless the context clearly indicates or requires another or different meaning or intent:
(a)Act means the Bergeson-Peace Infrastructure and Economic Development Bank Act.
(b)Bank means the California Infrastructure and Economic Development Bank.
(c)Board or bank board means the Board of Directors of the California Infrastructure and Economic Development Bank.
(d)Bond purchase agreement means a contractual agreement executed between the bank and a sponsor, or a special purpose trust authorized by the bank or a sponsor, or both, whereby the bank or special purpose trust authorized by the bank agrees to purchase bonds of the sponsor for retention or sale.
(e)Bonds means bonds, including structured, senior, and subordinated bonds or other securities; loans; notes, including bond, revenue, tax, or grant anticipation notes; commercial paper; floating rate and variable maturity securities; and any other evidences of indebtedness or ownership, including certificates of participation or beneficial interest, asset backed certificates, or lease-purchase or installment purchase agreements, whether taxable or excludable from gross income for federal income taxation purposes.
(f)Cost, as applied to a project or portion thereof financed under this division, means all or any part of the cost of construction, renovation, and acquisition of all lands, structures, real or personal property, rights, rights-of-way, franchises, licenses, easements, and interests acquired or used for a project; the cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring any lands to which the buildings or structures may be moved; the cost of all machinery, equipment, and financing charges; interest prior to, during, and for a period after completion of construction, renovation, or acquisition, as determined by the bank; provisions for working capital; reserves for principal and interest and for extensions, enlargements, additions, replacements, renovations, and improvements; and the cost of architectural, engineering, financial and legal services, plans, specifications, estimates, administrative expenses, and other expenses necessary or incidental to determining the feasibility of any project or incidental to the construction, acquisition, or financing of any project, and transition costs in the case of an electrical corporation.
(g)Economic development facilities means real and personal property, structures, buildings, equipment, and supporting components thereof that are used to provide industrial, recreational, research, commercial, utility, goods movement, or service enterprise facilities, community, educational, cultural, or social welfare facilities and any parts or combinations thereof, and all facilities or infrastructure necessary or desirable in connection therewith, including provision for working capital, but shall not include any housing.
(h)Electrical corporation has the meaning set forth in Section 218 of the Public Utilities Code.
(i)Executive director means the Executive Director of the California Infrastructure and Economic Development Bank appointed pursuant to Section 63021.
(j)Financial assistance in connection with a project, includes, but is not limited to, any combination of grants, loans, the proceeds of bonds issued by the bank or special purpose trust, insurance, guarantees or other credit enhancements or liquidity facilities, and contributions of money, property, labor, or other things of value, as may be approved by resolution of the board or the sponsor, or both; the purchase or retention of bank bonds, the bonds of a sponsor for their retention or for sale by the bank, or the issuance of bank bonds or the bonds of a special purpose trust used to fund the cost of a project for which a sponsor is directly or indirectly liable, including, but not limited to, bonds, the security for which is provided in whole or in part pursuant to the powers granted by Section 63025.1; bonds for which the bank has provided a guarantee or enhancement, including, but not limited to, the purchase of the subordinated bonds of the sponsor, the subordinated bonds of a special purpose trust, or the retention of the subordinated bonds of the bank pursuant to Chapter 4 (commencing with Section 63060); or any other type of assistance deemed appropriate by the bank or the sponsor, except that no direct loans shall be made to nonpublic entities other than in connection with the issuance of rate reduction bonds pursuant to a financing order or in connection with a financing for an economic development facility.
For purposes of this subdivision, grant does not include grants made by the bank except when acting as an agent or intermediary for the distribution or packaging of financing available from federal, private, or other public sources.
(k)Financing order has the meaning set forth in Section 840 of the Public Utilities Code.
(l)Guarantee trust fund means the California Infrastructure Guarantee Trust Fund.
(m)Infrastructure bank fund means the California Infrastructure and Economic Development Bank Fund.
(n)Loan agreement means a contractual agreement executed between the bank or a special purpose trust and a sponsor that provides that the bank or special purpose trust will loan funds to the sponsor and that the sponsor will repay the principal and pay the interest and redemption premium, if any, on the loan.
(o)Participating party means any person, company, corporation, association, state, or municipal governmental entity, partnership, firm, or other entity or group of entities, whether organized for profit or not for profit, engaged in business or operations within the state and that applies for financing from the bank in conjunction with a sponsor for the purpose of implementing a project. However, in the case of a project relating to the financing of transition costs or the acquisition of transition property, or both, on the request of an electrical corporation, or in connection with financing for an economic development facility, or for the financing of insurance claims, the participating party shall be deemed to be the same entity as the sponsor for the financing.
(p)Project means designing, acquiring, planning, permitting, entitling, constructing, improving, extending, restoring, financing, and generally developing public development facilities or economic development facilities within the state or financing transition costs or the acquisition of transition property, or both, upon approval of a financing order by the Public Utilities Commission, as provided in Article 5.5 (commencing with Section 840) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code.
(q)Public development facilities means real and personal property, structures, conveyances, equipment, thoroughfares, buildings, and supporting components thereof, excluding any housing, that are directly related to providing the following:
(1)City streets including any street, avenue, boulevard, road, parkway, drive, or other way that is any of the following:
(A)An existing municipal roadway.
(B)Is shown upon a plat approved pursuant to law and includes the land between the street lines, whether improved or unimproved, and may comprise pavement, bridges, shoulders, gutters, curbs, guardrails, sidewalks, parking areas, benches, fountains, plantings, lighting systems, and other areas within the street lines, as well as equipment and facilities used in the cleaning, grading, clearance, maintenance, and upkeep thereof.
(2)County highways including any county highway as defined in Section 25 of the Streets and Highways Code, that includes the land between the highway lines, whether improved or unimproved, and may comprise pavement, bridges, shoulders, gutters, curbs, guardrails, sidewalks, parking areas, benches, fountains, plantings, lighting systems, and other areas within the street lines, as well as equipment and facilities used in the cleaning, grading, clearance, maintenance, and upkeep thereof.
(3)Drainage, water supply, and flood control including, but not limited to, ditches, canals, levees, pumps, dams, conduits, pipes, storm sewers, and dikes necessary to keep or direct water away from people, equipment, buildings, and other protected areas as may be established by lawful authority, as well as the acquisition, improvement, maintenance, and management of floodplain areas and all equipment used in the maintenance and operation of the foregoing.
(4)Educational facilities including libraries, child care facilities, including, but not limited to, day care facilities, and employment training facilities.
(5)Environmental mitigation measures including required construction or modification of public infrastructure and purchase and installation of pollution control and noise abatement equipment.
(6)Parks and recreational facilities including local parks, recreational property and equipment, parkways, and property.
(7)Port facilities including airports, landports, waterports, railports, docks, harbors, ports of entry, piers, ships, small boat harbors and marinas, and any other facilities, additions, or improvements in connection therewith, that transport goods or persons.
(8)Power and communications including facilities for the transmission or distribution of electrical energy, natural gas, and telephone and telecommunications service.
(9)Public transit including air and rail transport, airports, guideways, vehicles, rights-of-way, passenger stations, maintenance and storage yards, and related structures, including public parking facilities, and equipment used to provide or enhance transportation by bus, rail, ferry, or other conveyance, either publicly or privately owned, that provides to the public general or special service on a regular and continuing basis.
(10)Sewage collection and treatment including pipes, pumps, and conduits that collect wastewater from residential, manufacturing, and commercial establishments, the equipment, structures, and facilities used in treating wastewater to reduce or eliminate impurities or contaminants, and the facilities used in disposing of, or transporting, remaining sludge, as well as all equipment used in the maintenance and operation of the foregoing.
(11)Solid waste collection and disposal including vehicles, vehicle-compatible waste receptacles, transfer stations, recycling centers, sanitary landfills, and waste conversion facilities necessary to remove solid waste, except that which is hazardous as defined by law, from its point of origin.
(12)Water treatment and distribution including facilities in which water is purified and otherwise treated to meet residential, manufacturing, or commercial purposes and the conduits, pipes, and pumps that transport it to places of use.
(13)Defense conversion including, but not limited to, facilities necessary for successfully converting military bases consistent with an adopted base reuse plan.
(14)Public safety facilities including, but not limited to, police stations, fire stations, court buildings, jails, juvenile halls, and juvenile detention facilities.
(15)State highways including any state highway as described in Chapter 2 (commencing with Section 230) of Division 1 of the Streets and Highways Code, and the related components necessary for safe operation of the highway.
(16)(A)Military infrastructure, including, but not limited to, facilities on or near a military installation, that enhance the military operations and mission of one or more military installations in this state. To be eligible for funding, the project shall be endorsed by the Office of Planning and Research.
(B)For purposes of this subdivision, military installation means any facility under the jurisdiction of the Department of Defense, as defined in paragraph (1) of subsection (e) of Section 2687 of Title 10 of the United States Code.
(17)Goods movement-related infrastructure including port facilities, roads, rail, and other facilities and projects that move goods, energy, and information.
(r)Rate reduction bonds has the meaning set forth in Section 840 of the Public Utilities Code.
(s)Revenues means all receipts, purchase payments, loan repayments, lease payments, and all other income or receipts derived by the bank or a sponsor from the sale, lease, or other financing arrangement undertaken by the bank, a sponsor, or a participating party, including, but not limited to, all receipts from a bond purchase agreement, and any income or revenue derived from the investment of any money in any fund or account of the bank or a sponsor and any receipts derived from transition property. Revenues shall not include moneys in the General Fund of the state.
(t)Special purpose trust means a trust, partnership, limited partnership, association, corporation, nonprofit corporation, or other entity authorized under the laws of the state to serve as an instrumentality of the state to accomplish public purposes and authorized by the bank to acquire, by purchase or otherwise, for retention or sale, the bonds of a sponsor or of the bank made or entered into pursuant to this division and to issue special purpose trust bonds or other obligations secured by these bonds or other sources of public or private revenues. Special purpose trust also means any entity authorized by the bank to acquire transition property or to issue rate reduction bonds, or both, subject to the approvals by the bank and powers of the bank as are provided by the bank in its resolution authorizing the entity to issue rate reduction bonds.
(u)Sponsor means any subdivision of the state or local government including departments, agencies, commissions, cities, counties, nonprofit corporations formed on behalf of a sponsor, special districts, assessment districts, and joint powers authorities within the state or any combination of these subdivisions that makes an application to the bank for financial assistance in connection with a project in a manner prescribed by the bank. This definition shall not be construed to require that an applicant have an ownership interest in the project. In addition, an electrical corporation shall be deemed to be the sponsor as well as the participating party for any project relating to the financing of transition costs and the acquisition of transition property on the request of the electrical corporation and any person, company, corporation, partnership, firm, or other entity or group engaged in business or operation within the state that applies for financing of any economic development facility, shall be deemed to be the sponsor as well as the participating party for the project relating to the financing of that economic development facility.
(v)State means the State of California.
(w)Transition costs has the meaning set forth in Section 840 of the Public Utilities Code.
(x)Transition property has the meaning set forth in Section 840 of the Public Utilities Code.
SEC. 2.Section 12098.7 of the Government Code is amended and renumbered to read:63089.63.(a)Notwithstanding any other law, effective January 1, 2008, the Economic Adjustment Assistance Grant funded through the United States Economic Development Administration under Title IX of the Public Works and Economic Development Act of 1965 (Grant No. 071902709 and 07192709.1) shall be administered by the director, and, for the purpose of state administration of this grant, the executive director shall be deemed to be the successor to the Director of the Governors Office of Business and Economic Development and the former Secretary of Business, Transportation and Housing and the former Secretary of Technology, Trade and Commerce. The executive director may assign and contract administration of the grant to a public agency created pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1.
(b)On January 1, 2008, all federal moneys held in the Sudden and Severe Economic Dislocation Grant Account within the Special Deposit Fund are hereby transferred to the Small Business Expansion Fund created pursuant to Section 63089.5 of the Government Code for expenditure by the office pursuant to Chapter 6 (commencing with Section 63088) of the Government Code for purposes of the Sudden and Severe Economic Dislocation Grant program, or other purposes permitted by the cognizant federal agency.
(c)All loan repayments received on or after January 1, 2008, for the Sudden and Severe Economic Dislocation Grant program loans issued pursuant to former Section 15327 (repealed by Section 1.8 of Chapter 229 of the Statutes of 2003 (AB 1757)) and this section, shall be deposited into the Small Business Expansion Fund and shall be available to the office for expenditure pursuant to the provisions of Chapter 6 (commencing with Section 63088) of the Government Code for the Sudden and Severe Economic Dislocation Grant program, or other purposes permitted by the cognizant federal agency.
For purposes of this division, the following words and terms shall have the following meanings unless the context clearly indicates or requires another or different meaning or intent:
(a)Act means the Bergeson-Peace Infrastructure and Economic Development Bank Act.
(b)Bank means the California Infrastructure and Economic Development Bank.
(c)Board or bank board means the Board of Directors of the California Infrastructure and Economic Development Bank.
(d)Bond purchase agreement means a contractual agreement executed between the bank and a sponsor, or a special purpose trust authorized by the bank or a sponsor, or both, whereby the bank or special purpose trust authorized by the bank agrees to purchase bonds of the sponsor for retention or sale.
(e)Bonds means bonds, including structured, senior, and subordinated bonds or other securities; loans; notes, including bond, revenue, tax, or grant anticipation notes; commercial paper; floating rate and variable maturity securities; and any other evidences of indebtedness or ownership, including certificates of participation or beneficial interest, asset backed certificates, or lease-purchase or installment purchase agreements, whether taxable or excludable from gross income for federal income taxation purposes.
(f)Cost, as applied to a project or portion thereof financed under this division, means all or any part of the cost of construction, renovation, and acquisition of all lands, structures, real or personal property, rights, rights-of-way, franchises, licenses, easements, and interests acquired or used for a project; the cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring any lands to which the buildings or structures may be moved; the cost of all machinery, equipment, and financing charges; interest prior to, during, and for a period after completion of construction, renovation, or acquisition, as determined by the bank; provisions for working capital; reserves for principal and interest and for extensions, enlargements, additions, replacements, renovations, and improvements; and the cost of architectural, engineering, financial and legal services, plans, specifications, estimates, administrative expenses, and other expenses necessary or incidental to determining the feasibility of any project or incidental to the construction, acquisition, or financing of any project, and transition costs in the case of an electrical corporation.
(g)Economic development facilities means real and personal property, structures, buildings, equipment, and supporting components thereof that are used to provide industrial, recreational, research, commercial, utility, goods movement, or service enterprise facilities, community, educational, cultural, or social welfare facilities and any parts or combinations thereof, and all facilities or infrastructure necessary or desirable in connection therewith, including provision for working capital, but shall not include any housing.
(h)Electrical corporation has the meaning set forth in Section 218 of the Public Utilities Code.
(i)Executive director means the Executive Director of the California Infrastructure and Economic Development Bank appointed pursuant to Section 63021.
(j)Financial assistance in connection with a project, includes, but is not limited to, any combination of grants, loans, the proceeds of bonds issued by the bank or special purpose trust, insurance, guarantees or other credit enhancements or liquidity facilities, and contributions of money, property, labor, or other things of value, as may be approved by resolution of the board or the sponsor, or both; the purchase or retention of bank bonds, the bonds of a sponsor for their retention or for sale by the bank, or the issuance of bank bonds or the bonds of a special purpose trust used to fund the cost of a project for which a sponsor is directly or indirectly liable, including, but not limited to, bonds, the security for which is provided in whole or in part pursuant to the powers granted by Section 63025.1; bonds for which the bank has provided a guarantee or enhancement, including, but not limited to, the purchase of the subordinated bonds of the sponsor, the subordinated bonds of a special purpose trust, or the retention of the subordinated bonds of the bank pursuant to Chapter 4 (commencing with Section 63060); or any other type of assistance deemed appropriate by the bank or the sponsor, except that no direct loans shall be made to nonpublic entities other than in connection with the issuance of rate reduction bonds pursuant to a financing order or in connection with a financing for an economic development facility.
For purposes of this subdivision, grant does not include grants made by the bank except when acting as an agent or intermediary for the distribution or packaging of financing available from federal, private, or other public sources.
(k)Financing order has the meaning set forth in Section 840 of the Public Utilities Code.
(l)Guarantee trust fund means the California Infrastructure Guarantee Trust Fund.
(m)Infrastructure bank fund means the California Infrastructure and Economic Development Bank Fund.
(n)Loan agreement means a contractual agreement executed between the bank or a special purpose trust and a sponsor that provides that the bank or special purpose trust will loan funds to the sponsor and that the sponsor will repay the principal and pay the interest and redemption premium, if any, on the loan.
(o)Participating party means any person, company, corporation, association, state, international, or municipal governmental entity, partnership, firm, or other entity or group of entities, whether organized for profit or not for profit, engaged in business or operations within the state and that applies for financing from the bank in conjunction with a sponsor for the purpose of implementing a project. However, in the case of a project relating to the financing of transition costs or the acquisition of transition property, or both, on the request of an electrical corporation, or in connection with financing for an economic development facility, or for the financing of insurance claims, the participating party shall be deemed to be the same entity as the sponsor for the financing.
(p)Project means designing, acquiring, planning, permitting, entitling, constructing, improving, extending, restoring, financing, and generally developing public development facilities or economic development facilities within the state or financing transition costs or the acquisition of transition property, or both, upon approval of a financing order by the Public Utilities Commission, as provided in Article 5.5 (commencing with Section 840) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code.
(q)Public development facilities means real and personal property, structures, conveyances, equipment, thoroughfares, buildings, and supporting components thereof, excluding any housing, that are directly related to providing the following:
(1)City streets including any street, avenue, boulevard, road, parkway, drive, or other way that is any of the following:
(A)An existing municipal roadway.
(B)Is shown upon a plat approved pursuant to law and includes the land between the street lines, whether improved or unimproved, and may comprise pavement, bridges, shoulders, gutters, curbs, guardrails, sidewalks, parking areas, benches, fountains, plantings, lighting systems, and other areas within the street lines, as well as equipment and facilities used in the cleaning, grading, clearance, maintenance, and upkeep thereof.
(2)County highways including any county highway as defined in Section 25 of the Streets and Highways Code, that includes the land between the highway lines, whether improved or unimproved, and may comprise pavement, bridges, shoulders, gutters, curbs, guardrails, sidewalks, parking areas, benches, fountains, plantings, lighting systems, and other areas within the street lines, as well as equipment and facilities used in the cleaning, grading, clearance, maintenance, and upkeep thereof.
(3)Drainage, water supply, and flood control including, but not limited to, ditches, canals, levees, pumps, dams, conduits, pipes, storm sewers, and dikes necessary to keep or direct water away from people, equipment, buildings, and other protected areas as may be established by lawful authority, as well as the acquisition, improvement, maintenance, and management of floodplain areas and all equipment used in the maintenance and operation of the foregoing.
(4)Educational facilities including libraries, child care facilities, including, but not limited to, day care facilities, and employment training facilities.
(5)Environmental mitigation measures including required construction or modification of public infrastructure and purchase and installation of pollution control and noise abatement equipment.
(6)Parks and recreational facilities including local parks, recreational property and equipment, parkways, and property.
(7)Port facilities including airports, landports, waterports, railports, docks, harbors, ports of entry, piers, ships, small boat harbors and marinas, and any other facilities, additions, or improvements in connection therewith, that transport goods or persons.
(8)Power and communications including facilities for the transmission or distribution of electrical energy, natural gas, and telephone and telecommunications service.
(9)Public transit including air and rail transport, airports, guideways, vehicles, rights-of-way, passenger stations, maintenance and storage yards, and related structures, including public parking facilities, and equipment used to provide or enhance transportation by bus, rail, ferry, or other conveyance, either publicly or privately owned, that provides to the public general or special service on a regular and continuing basis.
(10)Sewage collection and treatment including pipes, pumps, and conduits that collect wastewater from residential, manufacturing, and commercial establishments, the equipment, structures, and facilities used in treating wastewater to reduce or eliminate impurities or contaminants, and the facilities used in disposing of, or transporting, remaining sludge, as well as all equipment used in the maintenance and operation of the foregoing.
(11)Solid waste collection and disposal including vehicles, vehicle-compatible waste receptacles, transfer stations, recycling centers, sanitary landfills, and waste conversion facilities necessary to remove solid waste, except that which is hazardous as defined by law, from its point of origin.
(12)Water treatment and distribution including facilities in which water is purified and otherwise treated to meet residential, manufacturing, or commercial purposes and the conduits, pipes, and pumps that transport it to places of use.
(13)Defense conversion including, but not limited to, facilities necessary for successfully converting military bases consistent with an adopted base reuse plan.
(14)Public safety facilities including, but not limited to, police stations, fire stations, court buildings, jails, juvenile halls, and juvenile detention facilities.
(15)State highways including any state highway as described in Chapter 2 (commencing with Section 230) of Division 1 of the Streets and Highways Code, and the related components necessary for safe operation of the highway.
(16)(A)Military infrastructure, including, but not limited to, facilities on or near a military installation, that enhance the military operations and mission of one or more military installations in this state. To be eligible for funding, the project shall be endorsed by the Office of Planning and Research.
(B)For purposes of this subdivision, military installation means any facility under the jurisdiction of the Department of Defense, as defined in paragraph (1) of subsection (e) of Section 2687 of Title 10 of the United States Code.
(17)Goods movement-related infrastructure including port facilities, roads, rail, and other facilities and projects that move goods, energy, and information.
(r)Rate reduction bonds has the meaning set forth in Section 840 of the Public Utilities Code.
(s)Revenues means all receipts, purchase payments, loan repayments, lease payments, and all other income or receipts derived by the bank or a sponsor from the sale, lease, or other financing arrangement undertaken by the bank, a sponsor, or a participating party, including, but not limited to, all receipts from a bond purchase agreement, and any income or revenue derived from the investment of any money in any fund or account of the bank or a sponsor and any receipts derived from transition property. Revenues shall not include moneys in the General Fund of the state.
(t)Special purpose trust means a trust, partnership, limited partnership, association, corporation, nonprofit corporation, or other entity authorized under the laws of the state to serve as an instrumentality of the state to accomplish public purposes and authorized by the bank to acquire, by purchase or otherwise, for retention or sale, the bonds of a sponsor or of the bank made or entered into pursuant to this division and to issue special purpose trust bonds or other obligations secured by these bonds or other sources of public or private revenues. Special purpose trust also means any entity authorized by the bank to acquire transition property or to issue rate reduction bonds, or both, subject to the approvals by the bank and powers of the bank as are provided by the bank in its resolution authorizing the entity to issue rate reduction bonds.
(u)Sponsor means any subdivision of the state or local government including departments, agencies, commissions, cities, counties, nonprofit corporations formed on behalf of a sponsor, special districts, assessment districts, and joint powers authorities within the state or any combination of these subdivisions that makes an application to the bank for financial assistance in connection with a project in a manner prescribed by the bank. This definition shall not be construed to require that an applicant have an ownership interest in the project. In addition, an electrical corporation shall be deemed to be the sponsor as well as the participating party for any project relating to the financing of transition costs and the acquisition of transition property on the request of the electrical corporation and any person, company, corporation, partnership, firm, or other entity or group engaged in business or operation within the state that applies for financing of any economic development facility, shall be deemed to be the sponsor as well as the participating party for the project relating to the financing of that economic development facility.
(v)State means the State of California.
(w)Transition costs has the meaning set forth in Section 840 of the Public Utilities Code.
(x)Transition property has the meaning set forth in Section 840 of the Public Utilities Code.
SEC. 2.Section 12098.7 of the Government Code is amended and renumbered to read:63089.63.(a)Notwithstanding any other law, effective January 1, 2008, the Economic Adjustment Assistance Grant funded through the United States Economic Development Administration under Title IX of the Public Works and Economic Development Act of 1965 (Grant No. 071902709 and 07192709.1) shall be administered by the director, and, for the purpose of state administration of this grant, the executive director shall be deemed to be the successor to the Director of the Governors Office of Business and Economic Development and the former Secretary of Business, Transportation and Housing and the former Secretary of Technology, Trade and Commerce. The executive director may assign and contract administration of the grant to a public agency created pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1.
(b)On January 1, 2008, all federal moneys held in the Sudden and Severe Economic Dislocation Grant Account within the Special Deposit Fund are hereby transferred to the Small Business Expansion Fund created pursuant to Section 63089.5 of the Government Code for expenditure by the office pursuant to Chapter 6 (commencing with Section 63088) of the Government Code for purposes of the Sudden and Severe Economic Dislocation Grant program, or other purposes permitted by the cognizant federal agency.
(c)All loan repayments received on or after January 1, 2008, for the Sudden and Severe Economic Dislocation Grant program loans issued pursuant to former Section 15327 (repealed by Section 1.8 of Chapter 229 of the Statutes of 2003 (AB 1757)) and this section, shall be deposited into the Small Business Expansion Fund and shall be available to the office for expenditure pursuant to the provisions of Chapter 6 (commencing with Section 63088) of the Government Code for the Sudden and Severe Economic Dislocation Grant program, or other purposes permitted by the cognizant federal agency.
For purposes of this division, the following words and terms shall have the following meanings unless the context clearly indicates or requires another or different meaning or intent:
(a)Act means the Bergeson-Peace Infrastructure and Economic Development Bank Act.
(b)Bank means the California Infrastructure and Economic Development Bank.
(c)Board or bank board means the Board of Directors of the California Infrastructure and Economic Development Bank.
(d)Bond purchase agreement means a contractual agreement executed between the bank and a sponsor, or a special purpose trust authorized by the bank or a sponsor, or both, whereby the bank or special purpose trust authorized by the bank agrees to purchase bonds of the sponsor for retention or sale.
(e)Bonds means bonds, including structured, senior, and subordinated bonds or other securities; loans; notes, including bond, revenue, tax, or grant anticipation notes; commercial paper; floating rate and variable maturity securities; and any other evidences of indebtedness or ownership, including certificates of participation or beneficial interest, asset backed certificates, or lease-purchase or installment purchase agreements, whether taxable or excludable from gross income for federal income taxation purposes.
(f)Cost, as applied to a project or portion thereof financed under this division, means all or any part of the cost of construction, renovation, and acquisition of all lands, structures, real or personal property, rights, rights-of-way, franchises, licenses, easements, and interests acquired or used for a project; the cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring any lands to which the buildings or structures may be moved; the cost of all machinery, equipment, and financing charges; interest prior to, during, and for a period after completion of construction, renovation, or acquisition, as determined by the bank; provisions for working capital; reserves for principal and interest and for extensions, enlargements, additions, replacements, renovations, and improvements; and the cost of architectural, engineering, financial and legal services, plans, specifications, estimates, administrative expenses, and other expenses necessary or incidental to determining the feasibility of any project or incidental to the construction, acquisition, or financing of any project, and transition costs in the case of an electrical corporation.
(g)Economic development facilities means real and personal property, structures, buildings, equipment, and supporting components thereof that are used to provide industrial, recreational, research, commercial, utility, goods movement, or service enterprise facilities, community, educational, cultural, or social welfare facilities and any parts or combinations thereof, and all facilities or infrastructure necessary or desirable in connection therewith, including provision for working capital, but shall not include any housing.
(h)Electrical corporation has the meaning set forth in Section 218 of the Public Utilities Code.
(i)Executive director means the Executive Director of the California Infrastructure and Economic Development Bank appointed pursuant to Section 63021.
(j)Financial assistance in connection with a project, includes, but is not limited to, any combination of grants, loans, the proceeds of bonds issued by the bank or special purpose trust, insurance, guarantees or other credit enhancements or liquidity facilities, and contributions of money, property, labor, or other things of value, as may be approved by resolution of the board or the sponsor, or both; the purchase or retention of bank bonds, the bonds of a sponsor for their retention or for sale by the bank, or the issuance of bank bonds or the bonds of a special purpose trust used to fund the cost of a project for which a sponsor is directly or indirectly liable, including, but not limited to, bonds, the security for which is provided in whole or in part pursuant to the powers granted by Section 63025 63025.1; bonds for which the bank has provided a guarantee or enhancement, including, but not limited to, the purchase of the subordinated bonds of the sponsor, the subordinated bonds of a special purpose trust, or the retention of the subordinated bonds of the bank pursuant to Chapter 4 (commencing with Section 63060); or any other type of assistance deemed appropriate by the bank or the sponsor, except that no direct loans shall be made to nonpublic entities other than in connection with the issuance of rate reduction bonds pursuant to a financing order or in connection with a financing for an economic development facility.
For purposes of this subdivision, grant does not include grants made by the bank except when acting as an agent or intermediary for the distribution or packaging of financing available from federal, private, or other public sources.
(k)Financing order has the meaning set forth in Section 840 of the Public Utilities Code.
(l)Guarantee trust fund means the California Infrastructure Guarantee Trust Fund.
(m)Infrastructure bank fund means the California Infrastructure and Economic Development Bank Fund.
(n)Loan agreement means a contractual agreement executed between the bank or a special purpose trust and a sponsor that provides that the bank or special purpose trust will loan funds to the sponsor and that the sponsor will repay the principal and pay the interest and redemption premium, if any, on the loan.
(o)Participating party means any person, company, corporation, association, state or, international, municipal governmental entity, partnership, firm, or other entity or group of entities, whether organized for profit or not for profit, engaged in business or operations within the state and that applies for financing from the bank in conjunction with a sponsor for the purpose of implementing a project. However, in the case of a project relating to the financing of transition costs or the acquisition of transition property, or both, on the request of an electrical corporation, or in connection with a financing for an economic development facility, or for the financing of insurance claims, the participating party shall be deemed to be the same entity as the sponsor for the financing.
(p)Project means designing, acquiring, planning, permitting, entitling, constructing, improving, extending, restoring, financing, and generally developing public development facilities or economic development facilities within the state or financing transition costs or the acquisition of transition property, or both, upon approval of a financing order by the Public Utilities Commission, as provided in Article 5.5 (commencing with Section 840) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code.
(q)Public development facilities means real and personal property, structures, conveyances, equipment, thoroughfares, buildings, and supporting components thereof, excluding any housing, that are directly related to providing the following:
(1)City streets including any street, avenue, boulevard, road, parkway, drive, or other way that is any of the following:
(A)An existing municipal roadway.
(B)Is shown upon a plat approved pursuant to law and includes the land between the street lines, whether improved or unimproved, and may comprise pavement, bridges, shoulders, gutters, curbs, guardrails, sidewalks, parking areas, benches, fountains, plantings, lighting systems, and other areas within the street lines, as well as equipment and facilities used in the cleaning, grading, clearance, maintenance, and upkeep thereof.
(2)County highways including any county highway as defined in Section 25 of the Streets and Highways Code, that includes the land between the highway lines, whether improved or unimproved, and may comprise pavement, bridges, shoulders, gutters, curbs, guardrails, sidewalks, parking areas, benches, fountains, plantings, lighting systems, and other areas within the street lines, as well as equipment and facilities used in the cleaning, grading, clearance, maintenance, and upkeep thereof.
(3)Drainage, water supply, and flood control including, but not limited to, ditches, canals, levees, pumps, dams, conduits, pipes, storm sewers, and dikes necessary to keep or direct water away from people, equipment, buildings, and other protected areas as may be established by lawful authority, as well as the acquisition, improvement, maintenance, and management of floodplain areas and all equipment used in the maintenance and operation of the foregoing.
(4)Educational facilities including libraries, child care facilities, including, but not limited to, day care facilities, and employment training facilities.
(5)Environmental mitigation measures including required construction or modification of public infrastructure and purchase and installation of pollution control and noise abatement equipment.
(6)Parks and recreational facilities including local parks, recreational property and equipment, parkways, and property.
(7)Port facilities including airports, landports, waterports, railports, docks, harbors, ports of entry, piers, ships, small boat harbors and marinas, and any other facilities, additions, or improvements in connection therewith, that transport goods or persons.
(8)Power and communications including facilities for the transmission or distribution of electrical energy, natural gas, and telephone and telecommunications service.
(9)Public transit including air and rail transport of goods, airports, guideways, vehicles, rights-of-way, passenger stations, maintenance and storage yards, and related structures, including public parking facilities, and equipment used to provide or enhance transportation by bus, rail, ferry, or other conveyance, either publicly or privately owned, that provides to the public general or special service on a regular and continuing basis.
(10)Sewage collection and treatment including pipes, pumps, and conduits that collect wastewater from residential, manufacturing, and commercial establishments, the equipment, structures, and facilities used in treating wastewater to reduce or eliminate impurities or contaminants, and the facilities used in disposing of, or transporting, remaining sludge, as well as all equipment used in the maintenance and operation of the foregoing.
(11)Solid waste collection and disposal including vehicles, vehicle-compatible waste receptacles, transfer stations, recycling centers, sanitary landfills, and waste conversion facilities necessary to remove solid waste, except that which is hazardous as defined by law, from its point of origin.
(12)Water treatment and distribution including facilities in which water is purified and otherwise treated to meet residential, manufacturing, or commercial purposes and the conduits, pipes, and pumps that transport it to places of use.
(13)Defense conversion including, but not limited to, facilities necessary for successfully converting military bases consistent with an adopted base reuse plan.
(14)Public safety facilities including, but not limited to, police stations, fire stations, court buildings, jails, juvenile halls, and juvenile detention facilities.
(15)State highways including any state highway as described in Chapter 2 (commencing with Section 230) of Division 1 of the Streets and Highways Code, and the related components necessary for safe operation of the highway.
(16)(A)Military infrastructure, Military infrastructure, including, but not limited to, facilities on or near a military installation, that enhance the military operations and mission of one or more military installations in this state. To be eligible for funding, the project shall be endorsed by the Office of Military and Aerospace Support established pursuant to Section 13998.2 Planning and Research.
(B)For purposes of this subdivision, military installation means any facility under the jurisdiction of the Department of Defense, as defined in paragraph (1) of subsection (e) of Section 2687 of Title 10 of the United States Code.
(17)Goods movement-related infrastructure including port facilities, roads, rail, and other facilities and projects that move goods, energy, and information.
(r)Rate reduction bonds has the meaning set forth in Section 840 of the Public Utilities Code.
(s)Revenues means all receipts, purchase payments, loan repayments, lease payments, and all other income or receipts derived by the bank or a sponsor from the sale, lease, or other financing arrangement undertaken by the bank, a sponsor, or a participating party, including, but not limited to, all receipts from a bond purchase agreement, and any income or revenue derived from the investment of any money in any fund or account of the bank or a sponsor and any receipts derived from transition property. Revenues shall not include moneys in the General Fund of the state.
(t)Special purpose trust means a trust, partnership, limited partnership, association, corporation, nonprofit corporation, or other entity authorized under the laws of the state to serve as an instrumentality of the state to accomplish public purposes and authorized by the bank to acquire, by purchase or otherwise, for retention or sale, the bonds of a sponsor or of the bank made or entered into pursuant to this division and to issue special purpose trust bonds or other obligations secured by these bonds or other sources of public or private revenues. Special purpose trust also means any entity authorized by the bank to acquire transition property or to issue rate reduction bonds, or both, subject to the approvals by the bank and powers of the bank as are provided by the bank in its resolution authorizing the entity to issue rate reduction bonds.
(u)Sponsor means any subdivision of the state or local government including departments, agencies, commissions, cities, counties, nonprofit corporations formed on behalf of a sponsor, special districts, assessment districts, and joint powers authorities within the state or any combination of these subdivisions that makes an application to the bank for financial assistance in connection with a project in a manner prescribed by the bank. This definition shall not be construed to require that an applicant have an ownership interest in the project. In addition, an electrical corporation shall be deemed to be the sponsor as well as the participating party for any project relating to the financing of transition costs and the acquisition of transition property on the request of the electrical corporation and any person, company, corporation, partnership, firm, or other entity or group engaged in business or operation within the state that applies for financing of any economic development facility, shall be deemed to be the sponsor as well as the participating party for the project relating to the financing of that economic development facility.
(v)State means the State of California.
(w)Transition costs has the meaning set forth in Section 840 of the Public Utilities Code.
(x)Transition property has the meaning set forth in Section 840 of the Public Utilities Code.
SEC. 2.Section 12098.7 of the Government Code is amended and renumbered to read:12098.7.63089.63.(a)Notwithstanding any other law, effective January 1, 2008, the Economic Adjustment Assistance Grant funded through the United States Economic Development Administration under Title IX of the Public Works and Economic Development Act of 1965 (Grant No. 071902709 and 07192709.1) shall be administered by the director, and, for the purpose of state administration of this grant, the executive director shall be deemed to be the successor to the Director of the Governors Office of Business and Economic Development and the former Secretary of Business, Transportation and Housing and the former Secretary of Technology, Trade and Commerce. The executive director may assign and contract administration of the grant to a public agency created pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1.
(b)On January 1, 2008, all federal moneys held in the Sudden and Severe Economic Dislocation Grant Account within the Special Deposit Fund are hereby transferred to the Small Business Expansion Fund created pursuant to Section 14030 of the Corporations 63089.5 of the Government Code for expenditure by the office pursuant to Article 9 (commencing with Section 14070) of the Corporations Chapter 6 (commencing with Section 63088) of the Government Code for purposes of the Sudden and Severe Economic Dislocation Grant program, or other purposes permitted by the cognizant federal agency.
(c)All loan repayments received on or after January 1, 2008, for the Sudden and Severe Economic Dislocation Grant program loans issued pursuant to former Section 15327 (repealed by Section 1.8 of Chapter 229 of the Statutes of 2003 (AB 1757)) and this section, shall be deposited into the Small Business Expansion Fund and shall be available to the office for expenditure pursuant to the provisions of Article 9 (commencing with Section 14070) of the Corporations Chapter 6 (commencing with Section 63088) of the Government Code for the Sudden and Severe Economic Dislocation Grant program, or other purposes permitted by the cognizant federal agency.
|
Date
|
Status
|
|---|---|
| Jul 7, 2015 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 9. Noes 0.) (July 6). Re-referred to Com. on APPR. |
| Sep 30, 2015 | Chaptered by Secretary of State - Chapter 383, Statutes of 2015. |
| Sep 30, 2015 | Approved by the Governor. |
| Sep 16, 2015 | Enrolled and presented to the Governor at 4 p.m. |
| Sep 3, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0.). |
| Sep 3, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 2873.). |
| Sep 3, 2015 | Assembly Rule 77 suspended. (Page 2859.) |
| Sep 3, 2015 | Assembly Rule 77 suspended. |
| Sep 2, 2015 | Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 2405.). |
| Sep 2, 2015 | Read third time. Passed. Ordered to the Assembly. |
| Sep 2, 2015 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 4 pursuant to Assembly Rule 77. |
| Aug 31, 2015 | Read second time and amended. Ordered to third reading. |
| Aug 27, 2015 | From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 27). |
| Aug 17, 2015 | In committee: Referred to APPR. suspense file. |
| Mar 24, 2015 | Read first time. To print. |
| Jun 11, 2015 | Referred to Com. on B., P. & E.D. |
| Jun 1, 2015 | Read third time. Passed. Ordered to the Senate. (Ayes 80. Noes 0. Page 1693.) |
| Jun 1, 2015 | Read third time. Passed. Ordered to the Senate. |
| Jun 1, 2015 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 28, 2015 | Read second time. Ordered to third reading. |
| May 27, 2015 | From committee: Do pass. (Ayes 17. Noes 0.) (May 27). |
| May 20, 2015 | In committee: Hearing postponed by committee. |
| May 14, 2015 | Re-referred to Com. on APPR. |
| May 13, 2015 | In committee: Hearing postponed by committee. |
| May 13, 2015 | From committee chair, with author's amendments: Amend, and re-refer to Com. on APPR. Read second time and amended. |
| Apr 30, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (April 29). Re-referred to Com. on APPR. |
| Apr 6, 2015 | Referred to Com. on J., E.D., & E. |
| Mar 25, 2015 | From printer. May be heard in committee April 24. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 3, 2015 | AB 1533 J., E.D. & E. Concurrence in Senate Amendments By GARCIA, E. | Assembly Floor |
Passed |
|
| Sep 2, 2015 | Assembly 3rd Reading AB1533 Committee on Jobs, Economic Development, and the Economy By Hill | Senate Floor |
Passed |
|
| Aug 27, 2015 | Do pass as amended | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 17, 2015 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jul 6, 2015 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Business, Professions and Economic Development |
Passed |
|
| Jun 1, 2015 | AB 1533 J., E.D. & E. Assembly Third Reading By GARCIA, E. | Assembly Floor |
Passed |
|
| May 27, 2015 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 29, 2015 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Jobs, Economic Development, and the Economy |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Pacific Merchant Shipping Association | * Indeterminate | Apr 29, 2015 |
AB 1533
Page 2
CONCURRENCE IN SENATE AMENDMENTS
AB 1533
(Committee on Jobs, Economic Development, and the Economy)
As Amended August 31, 2015
Majority vote
ASSEMBLY: |
80-0 |
(June 1, 2015) |
SENATE: |
40-0 |
(September 2, 2015) |
Original Committee Reference: J., E.D., & E.
SUMMARY: Updates definitions used by the California Infrastructure and Economic Development Bank (I-Bank) when authorizing financing of infrastructure projects and economic development-related facilities. Further, the bill codifies the transfer of federal funds and grantee status from the Governor's Office of Business and Economic Development (GO-Biz) to the Valley Economic Development Center, Inc, as specified.
The Senate amendments replace the intra-agency transfer of federal funding provisions with provisions that codify the 2014 transfer of the same federal grant funding from the state to a private nonprofit, as specified.
EXISTING LAW:
Establishes the I-Bank within the GO-Biz and authorizes it to undertake a variety of infrastructure related financial activities including, but not limited to, the administration of a revolving loan fund, oversight of the Small Business Finance Center, and the issuance of tax-exempt and taxable revenue bonds.
Designates GO-Biz as the administrator of specified Economic Development Administration (EDA) grant moneys. The EDA moneys were originally awarded to the state in the 1990s and since that time have been overseen by the Technology, Trade and Commerce Agency, the Business, Transportation and Housing Agency, and GO-Biz.
FISCAL EFFECT: According to the Senate Appropriations Committee, recent amendments remove all costs associated with the bill.
COMMENTS: This is the I-Bank code maintenance bill annually authored by the members of the Assembly Committee on Jobs, Economic Development, and the Economy. This bill contains technical changes to the statute governing the I-Bank and GO-Biz.
Updating Infrastructure Development Definitions: Existing law includes an extended list of definitions for the operation of the I-Bank including definitions related to the types of:
Financial actions the I-Bank is authorized to undertake including bond purchase agreements, financial assistance, and loan agreements; and
Projects the I-Bank is authorized to finance including economic development facilities, education facilities and public development facilities.
This bill reorganizes the placement of certain definitions, clarifies some definitions, and updates cross references within the I-Bank's definition code sections.
Transferring program authority of federal funds: In 1983, California received the first of two grants from the federal (EDA) totaling $1.6 million for the purpose of establishing a small business revolving loan fund (RLF) program serving severely distressed areas, (grant numbers 07-19-02709 and 07-19-2079.01).
Over the life of the program, 35 loans have been made ranging between $100,000 and $500,000. Seven loans have been written off and 25 have been paid in full, as of the most current records of dating September 2012. The federal funds have been overseen by four separate state agencies and twice the state tried unsuccessfully to terminate the grant. For the four years following the dissolution of the California Technology, Trade, and Commerce Agency in 2003, the funds sat unused in a State Controller holding account.
Most recently, state administration of the RLF passed from the disbanded Business, Transportation and Housing Agency to GO-Biz, pursuant to the 2013 Governor's Reorganization Plan 2. Given the staffing and expertise required to manage the RLF, GO-Biz decided and was successful in negotiating a compromise with the EDA which provided for the final transfer of the funds and program responsibility to the Valley Economic Development Center, Inc, a nonprofit with experience in providing small business financing statewide. The value of the RLF at the point of transfer was approximately $3.7 million including federal funds, loan repayments, and interest earned.
This bill codifies this final transfer, including reference to the formal agreement to transfer grantee status signed by EDA, GO-Biz, and the Valley Economic Development Centers. Given the long and somewhat complicated state administration of these funds, the authors believe a clear statutory record should be provided to ensure the state, as well as local economic development organizations, are not negatively impacted in their future attempts to receive federal moneys based on the incorrect perception that the state still manages the EDA funds.
Analysis Prepared by: Toni Symonds / J., E.D., & E. / (916) 319-2090 FN: 0001839
AB 1533
Page 3
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: AB 1533
Author: Committee on Jobs, Economic Development, and the Economy
Amended: 8/31/15 in Senate
SENATE BUS, PROF. & ECON. DEV. COMMITTEE: 9-0, 7/6/15
AYES: Hill, Bates, Berryhill, Block, Galgiani, Hernandez, Jackson, Mendoza, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/27/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
ASSEMBLY FLOOR: 80-0, 6/1/15 - See last page for vote
SUBJECT: Infrastructure financing
DIGEST: This bill transfers fiscal responsibility for federal funds from the Governor’s Office of Business and Economic Development to the Valley Economic Development Corporation.
Existing law
requires the Director of the Governor’s Office of Business and
Economic Development (GO-Biz) to administer the Economic Adjustment
Assistance Grant (Assistance Grant) funded through the United States
Economic Development Administration under Title IX of the Public
Works and Economic Development Act of 1965 (Grant No. 07–19–02709
and 07–19–2709.1).
(GC § 12098.7)
This bill codifies the transfer of Assistance Grant monies to the Valley Economic Development Center, Inc., dismisses the State of California as the grantee and names the Valley Economic Development Center, Inc. as the successor grantee and assigns responsibilities and authorities associated with the Assistant Grant funds from GO-Biz to the Valley Economic Development Center, Inc.
Background
Over a decade ago, California received $2 million from the federal Economic Development Agency (EDA) through an Economic Adjustment Assistance Grant, which provides funding to serve economically-distressed communities, and the Sudden and Severe Economic Dislocation Grant Program, which provides capital to businesses in economically-distressed areas. This bill stems from concerns that the Assistance grant funds were not tracked for a period of years following the elimination of the state Technology, Trade and Commerce Agency during which time, EDA sought reimbursement for the outstanding amount of the Assistance Grants. While the state has permanently transferred the responsibility for the federal grant funds, the author wants to provide a clear statutory record in order to ensure local economic development organizations are not negatively impacted in their future attempts to receive federal economic development monies based on the incorrect perception that the state did not responsibly oversee these funds.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Committee on Appropriations, this bill will not result in cost to the state.
None received
OPPOSITION: (Verified 8/31/15)
None received
ASSEMBLY FLOOR: 80-0, 6/1/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
Prepared by: Sarah Mason / B., P. & E.D. / (916) 651-4104
8/31/15 14:34:21
**** END ****
AB 1533 (Committee on Jobs, Economic Development, and the Economy) Page 0 of 1
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 1533 (Committee on Jobs, Economic Development, and the Economy) - Infrastructure financing.
|
|
Version: May 13, 2015 |
Policy Vote: B., P. & E.D. 9 - 0 |
Urgency: No |
Mandate: No |
Hearing Date: August 27, 2015 |
Consultant: Robert Ingenito |
*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on August 27, 2015
Bill Summary:
AB 1533 would revise the definition of economic development facilities and port facilities for purposes of the Bergeson-Peace Infrastructure and Economic Development Bank (I-Bank) Act, as specified.
Fiscal Impact:
The author amendments result in the removal of state costs from the bill.
Author Amendments:
Transfer fiscal responsibility for the federal funds from the Governor’s Office of Business and Economic Development to the Valley Economic Development Corporation.
-- END --
AB 1533 (Committee on Jobs, Economic Development, and the Economy) Page 2 of 2
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 1533 (Committee on Jobs, Economic Development, and the Economy) - Infrastructure financing.
|
|
Version: May 13, 2015 |
Policy Vote: B., P. & E.D. 9 - 0 |
Urgency: No |
Mandate: No |
Hearing Date: August 17, 2015 |
Consultant: Robert Ingenito |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
AB 1533 would (1) revise the definition of economic development facilities and port facilities for purposes of the Bergeson-Peace Infrastructure and Economic Development Bank (I-Bank) Act, and (2) authorize the I-Bank to administer and expend certain federal funds.
Fiscal Impact:
This bill would likely result in increased annual administrative costs to the I-Bank of up to $150,000 (General Fund), to administer grant funds, as specified.
Background:
The I-Bank was established in 1994 to promote economic revitalization, enable future development, and encourage a healthy climate for jobs in California. Housed within GO-Biz, it is governed by a five-member board, with its day-to-day operations directed by an Executive Director who is an appointee of the Governor and is subject to confirmation by the California State Senate. Currently, the I-Bank has authority for 25 staff.
The I-Bank does not receive any ongoing General Fund support, rather it is financed through fees, interest income, and other revenues derived from its various public and private sector financing activities. Budgetary data indicate that its programs provide revenues sufficient to cover operating expenses.
The I-Bank administers three programs: (1) the Infrastructure State Revolving Fund, which provides direct low-cost financing to public agencies for a variety of public infrastructure projects, (2) the Conduit Bond Program, which provides financing for manufacturing companies, public benefit nonprofit organizations, public agencies and other eligible entities, and (3) the Small Business Finance Center, which helps small businesses access private financing through loan guarantees, direct loans, and performance bond guarantees. There is no commitment of I-Bank or state funds for any of the conduit revenue bonds. Even in the case of default, the state is not liable.
Since its creation, the I-Bank has loaned, financed, or participated in over $344 billion in infrastructure and economic expansion projects, subsequently developing expertise in the financing of public infrastructure. The I-Bank also serves as the State's only general purpose financing authority with broad statutory powers to issue revenue bonds, make loans, and provide guarantees. Over $33 billion in conduit revenue bonds have been issued by the I-Bank since 2000.
Proposed Law:
This bill would revise the definition of "economic development facilities" to include facilities that are used to provide goods movement and "port facilities" to specifically reference airports, landports, waterports, and railports, for purposes of the I-Bank Act. Additionally, the bill would transfer authority over the federal Economic Development Adjustment Assistance (EDAA) Grant and the Sudden and Severe Economic Dislocation Grant from the Governor's Office of Business and Economic Development (GO-Biz) to the I-Bank.
Related Legislation:
AB 1537 (Assembly Committee on Jobs, Economic Development and the Economy, Chapter 191, Statutes of 2015) expanded the reporting requirements of the California Small Business Finance Center to include the geographic location of businesses assisted by its programs.
Staff Comments:
Over a decade ago, California received $2 million in federal funding through the EDAA Grant, which funds economically-distressed communities, and the Sudden and Severe Economic Dislocation Grant Program, which provides capital to businesses in economically-distressed areas.
The EDAA was administered by the Business, Transportation and Housing (BTH) Agency through 2013. When BTH was eliminated in 2013, pursuant to the Governor’s reorganization plan, the California Small Business Expansion Fund (including the EDAA grant) and the program authority to oversee the EDAA grant, were transferred to GO-Biz. Other 2013 legislation, chaptered after the reorganization bill, transferred the California Small Business Expansion Fund to the I-Bank.
This bill would streamline the organization structure for the federal funds by authorizing the I-Bank to oversee both the money and program implementation responsibility.
-- END --
AB 1533 (Committee on Jobs, Economic Development, and the Economy) Page 6 of 6
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2015 - 2016 Regular
Bill No: AB 1533 Hearing Date: July 6, 2015
Author: |
Committee on Jobs, Economic Development, and the Economy |
||
Version: |
May 13, 2015 |
||
Urgency: |
No |
Fiscal: |
Yes |
Consultant: |
Sarah Mason |
||
Subject: Infrastructure financing.
SUMMARY: Revises the definition of economic development facilities and port facilities for purposes of the Bergeson-Peace Infrastructure and Economic Development Bank Act and authorizes the California Infrastructure and Economic Development Bank to administer and expend certain federal funds.
Existing law:
Establishes GO-Biz within the Governor's Office for the purpose of serving as the lead state entity for economic strategy and marketing of California on issues relating to business development, private sector investment and economic growth. GO-Biz also serves as the administrative oversight for the California Business Investment Service and the Office of the Small Business Advocate. (Government Code (GC) §§ 12096 – 12098.5)
Requires the Director of GO-Biz to administer the Economic Adjustment Assistance Grant (Assistance Grant) funded through the United States Economic Development Administration under Title IX of the Public Works and Economic Development Act of 1965 (Grant No. 07–19–02709 and 07–19–2709.1). (GC § 12098.7)
Enacts the California Small Business Financial Development Corporation Law (FDC Law) with the intention of promoting the economic development of small businesses by making available capital, general management assistance, and other resources, including loan services, personnel, and business education to small business entrepreneurs, including women and minority owned businesses, for the purpose of promoting the health, safety, and social welfare of the citizens of California, to eliminate unemployment of the economically disadvantaged of the state, and to stimulate economic development, employment, minority group, women, and disabled persons entrepreneurship. (Corporations Code §§ 14000-14024)
Authorizes under the Bergeson-Peace Infrastructure and Economic Development Bank Act (Act) the creation of the Infrastructure and Economic Development Bank
(I-Bank) within GO-Biz, to promote economic revitalization, enable future development, and encourage a healthy climate for jobs in California.
(GC § 63000 et seq.)
Defines “Economic development facilities” for purposes of the Act as real and personal property, structures, buildings, equipment, and supporting components thereof that are used to provide industrial, recreational, research, commercial, utility, or service enterprise facilities, community, educational, cultural, or social welfare facilities and any parts or combinations thereof, and all facilities or infrastructure necessary or desirable in connection therewith, including provision for working capital, but shall not include any housing. (GC § 63010 (g))
Defines “Executive director” as the Executive Director (ED) of the I-Bank.
(GC § 63010 (i))
Defines “Port facilities” for purposes of the Act as docks, harbors, ports of entry, piers, ships, small boat harbors and marinas, and any other facilities, additions, or improvements in connection therewith. (GC § 63010 (q) (7))
Enacts the Small Business Financial Assistance Act of 2013 and establishes the Small Business Finance Center within the I-Bank for the purpose of assisting businesses seeking capital resources not otherwise available in the private markets including:
Loan guarantees and other credit enhancements;
Direct loans and other debt instruments;
Disaster loan guarantees; and
Surety bond guarantees. (GC §§63088-63089.98)
Establishes the California Small Business Expansion Fund (Expansion Fund) for the purpose of retaining the moneys which separately capitalize the Small Business Loan Guarantee Program (SBLGP) and paying out defaulted loan guarantees issued under the SBLGP. States findings and declarations that the SBLGP has enabled participating small businesses that do not qualify for conventional business loans or Small Business Administration loans to secure funds to expand their businesses. These small businesses would not have been able to expand their businesses in the absence of the program. The program has also provided valuable technical assistance to small businesses to ensure growth and stability. (GC § 63089.70)
This
bill:
Adds “goods movement” to the definition of economic development facilities above.
Adds “railports” to the definition of port facilities above.
Defines “goods movement-related infrastructure” for purposes of public development facilities under the Act as port facilities, roads, rail and other facilities and projects that move goods, energy and information.
Shifts administration of the Assistance Grant from GO-Biz to the I-Bank.
Makes other technical changes.
FISCAL EFFECT: This
bill is keyed “fiscal” by Legislative Counsel. According to the
Assembly Committee on Appropriations analysis dated May 27, 2015,
this bill will result in administrative costs to the I-Bank, not
likely to exceed $150,000, to administer grant funds as specified.
COMMENTS:
Purpose. The Author is the Sponsor of this bill. According to the Author, over a decade ago, California received $2 million from the federal Economic Development Agency through an Economic Adjustment Assistance Grant, which provides funding to serve economically-distressed communities, and the Sudden and Severe Economic Dislocation Grant Program, which provides capital to businesses in economically-distressed areas.
According to the Author, in 2008 the federal funds were deposited in the Small Business Expansion Fund and the then-Business, Transportation, and Housing Agency (BTH) was given oversight responsibility. The Governor’s Reorganization Plan (GRP) 2, submitted to the Legislature in 2012, eliminated the BTH. The technical clean-up bills to GRP2 transferred the California Small Business Expansion Fund (including the federal funds) and the program authority to oversee the federal funds to the I-Bank's parent agency, the Governor's Office of Business and Economic Development (GO-Biz). According to the Author, at the same time that the GRP2 bills were going through, AB 1247 passed. This established the Small Business Finance Center at the I-Bank and transferred the Small Business Expansion Fund to the I-Bank which resulted in the Expansion Fund being under the I-Bank and the program authority being under GO-Biz.
According to the Author, AB 1533 proposes a more streamlined organization structure for the federal funds by directing the I-Bank to oversee the money and program implementation responsibility. The Author states that the shift is recommended because the I-Bank already operates under the purview of GO-Biz, meaning GO-Biz will still have oversight; the I-Bank already has authority to provide direct loans and guarantees to businesses seeking capital, meaning they are well equipped to appropriately expend the funds and; the I-Bank already has primary responsibility for the funds in the California Small Business Expansion Fund
Governor's Office of Business and Economic Development (GO-Biz).
In February 2010, the Little Hoover Commission undertook a review of the state's economic and workforce development programs. In its final report, Making up for Lost Ground: Creating a Governor's Office of Economic Development, it analyzed the status and effectiveness of current programs since the 2003 demise of the Technology, Trade and Commerce Agency and recommended the creation of a new governmental entity to fill the void left by the dismantled agency.
The report called for a single entity that would promote greater economic development, foster job creation, serve as a policy advisor and deliver specific services (i.e., permitting, tax, regulatory, and other information) directly to the California business community. In April 2010, Governor Schwarzenegger issued Executive Order S-05-10 as a means to operationalize the report recommendations including the creation of the Governor's Office of Economic Development (GOED).
In October 2011, the Governor signed AB 29 (cited and described below), which effectively codified GOED and changed its name to GO-Biz, effective January 1, 2012. Since its inception, the office has served over 3,000 businesses, 95% of which are small. The most frequent types of assistance include help with permit streamlining, starting a businesses, relocation and expansion of businesses, and regulatory challenges.
In March 2012, the Governor initiated a reorganization process to realign the state's administrative structure. Key changes include dismantling of the Business, Transportation and Housing Agency (BTH) and the shifting of a number of key programs and services to GO-Biz including the Small Business Loan Guarantee Program, the California Travel and Tourism Commission, the California Film Commission, the Film California First Program and the Infrastructure and Economic Development Bank (I-Bank). GO-Biz also administers the “Made in California” program for the purpose of encouraging consumer product awareness and to foster the purchases of products manufactured in California. GO-Biz now has authority for undertaking international trade and foreign investment activities, including establishing any international trade and investment office (AB 2012, Perez, Statutes of 2012). GO-Biz has partnered with the Bay Area Council to open a California-China Trade and Investment office in Shanghai's downtown Yangpu district and is authorized under current law to accept private monies to establish, fund and operate these offices.
In 2013, the Governor signed AB 1247 (Medina and Bocanegra, Chapter 537, Statutes of 2013) establishing a Small Business Finance Center within the I-Bank. Among other programs, the Small Business Finance Center offers direct loans, loan guarantees, letters of credit and surety bond guarantees and the I-Bank Board of Directors has the authority to approve new debt and credit enhancement programs to assist small businesses meet changing market needs.
I-Bank. The I-Bank was established in 1994 to promote economic revitalization, enable future development, and encourage a healthy climate for jobs in California. Housed within GO-Biz, it is governed by a five-member board of directors comprised of the Director of GO-biz (Chair), State Treasurer, Director Department of Finance, Transportation Agency, and a Governor’s appointee. The day-to-day operations of the I-Bank are directed by the Executive Director who is an appointee of the Governor and is subject to confirmation by the California State Senate. Currently, the I-Bank has authority for 25 staff members.
The I-Bank does not receive any ongoing General Fund support, rather it is financed through fees, interest income, and other revenues derived from its public and private sector financing activities. According to its Comprehensive Annual Financial Report for the fiscal year ended June 2013, its programs continued to provide revenues sufficient to cover operating expenses.
The I-Bank administers three programs: (1) the Infrastructure State Revolving Fund which provides direct low-cost financing to public agencies for a variety of public infrastructure projects; (2) the Conduit Bond Program which provides financing for manufacturing companies, public benefit nonprofit organizations, public agencies and other eligible entities; and (3) the Small Business Finance Center which helps small businesses access private financing through loan guarantees, direct loans, and performance bond guarantees. There is no commitment of I-Bank or state funds for any of the conduit revenue bonds. Even in the case of default, the state is not liable.
Since its creation in 1994, the I-Bank has loaned, financed, or participated in over $344 billion in infrastructure and economic expansion projects. This includes over $400 million to local and state agencies; developing a high-level of expertise in the financing of public infrastructure. The I-Bank also serves as the state's only general purpose financing authority with broad statutory powers to issue revenue bonds, make loans, and provide guarantees. Over $33 billion in conduit revenue bonds have been issued by the I-Bank since 2000.
Related Legislation This Year. AB 1537 (Assembly Committee on Jobs, Economic Development and the Economy) expands the reporting requirements of the California Small Business Finance Center to include the geographic location of businesses assisted by its programs. (Status: The measure is pending in the Senate Committee on Appropriations.)
Prior Related Legislation. AB 2749 (Assembly Committee on Jobs, Economic Development and the Economy, Chapter 132, Statutes of 2014) made technical changes to the Government Code relating to the transfer of economic development related programs from the Business, Transportation and Housing Agency (BTH) to GO-Biz.
AB 1247 (Medina, Chapter 537, Statutes of 2013) transferred the administration of the small business FDC managed programs from BTH to the California Infrastructure and Economic Development Bank (I-Bank) within GO-Biz.
AB 2523 (Hueso) of 2012 authorized the I-Bank to enter into participation loan agreements and syndicated loan agreements with financial institutions for loans they make to small businesses. (Status: The bill was held in the Senate Committee on Appropriations.)
AB 1104 (Aghazarian, Chapter 624, Statutes of 2007) extended the authority of the Expansion Fund through a FDC to make small business loan guarantees in an area affected by a state of emergency within the state and declared a disaster by the President of the United States, or by the Administrator of the federal SBA, or by the United States Secretary of Agriculture. The bill also modified the provision authorizing the executive director of the Expansion Fund to request a trustee of a trust fund to invest funds in securities issued by the United States Treasury.
AB 1695 (Bass) of 2007 would have appropriated $40 million from the State Highway Account to be placed within a newly created Surety Bond Guarantee Account within the Expansion Fund and required the FDC Director to establish and administer a surety bond guarantee account within to assist small contractors with obtaining the necessary bond and liability guarantees they need to compete for state infrastructure projects. (Status: The bill was held in the Assembly Committee on Appropriations.)
AB 3057 (Assembly Committee on Jobs, Economic Development and the Economy, 2006) would have extended the sunset from January 1, 2007 to January 1, 2012 on the Director of DOF’s authority to transfer moneys in the Special Fund for Economic Uncertainties to the Expansion Fund, and made other technical changes. (Status: The bill was held in the Senate Committee on Appropriations.)
SUPPORT AND OPPOSITION:
Support:
None on file as of June 30, 2015.
Opposition:
None on file as of June 30, 2015.
-- END --
AB 1533
Page 2
ASSEMBLY THIRD READING
AB 1533
(Committee on Jobs, Economic Development, and the Economy)
As Amended May 13, 2015
Majority vote
Committee |
Votes |
Ayes |
Noes |
Jobs |
8-0 |
Eduardo Garcia, Kim, Brough, Brown, Chu, Gipson, Irwin, Mathis |
|
Appropriations |
17-0 |
Gomez, Bigelow, Bonta, Calderon, Chang, Daly, Eggman, Gallagher, Eduardo Garcia, Gordon, Holden, Jones, Quirk, Rendon, Wagner, Weber, Wood |
|
SUMMARY: Makes a number of technical changes to the definition section of the code relating to the Infrastructure and Economic Development Bank (I-Bank). In addition, this bill makes conforming changes to the operations of the Small Business Finance Center, administered through the I-Bank, consistent with the Governor's Reorganization Plan 2 (GRP 2) and other legislation from 2013.
EXISTING LAW:
Establishes the I-Bank within the Governor's Office of Business and Economic Development (GO-Biz) and authorizes it to undertake a variety of infrastructure related financial activities including, but not limited to, the administration of a revolving loan fund, oversight of the Small Business Finance Center, and the issuance of tax-exempt and taxable revenue bonds.
Establishes the Small Business Finance Center within the I-Bank for the purpose of assisting businesses seeking capital resources not otherwise available in the private markets including:
Loan guarantees and other credit enhancements;
Direct loans and other debt instruments;
Disaster loan guarantees; and
Surety bond guarantees.
FISCAL EFFECT: According to the Assembly Appropriations Committee, implementation of this measure will result in administrative costs to GO-Biz of an amount that is unlikely to exceed $150,000.
COMMENTS: This is the I-Bank code maintenance bill from the Assembly Committee on Jobs, Economic Development, and the Economy. This bill contains technical and conforming changes to prior legislative actions.
Updating Definitions: Existing law includes an extended list of definitions for the operation of the I-Bank including definitions related to the types of:
Financial actions the I-Bank is authorized to undertake including bond purchase agreements, financial assistance, and loan agreements; and
Projects the I-Bank is authorized to finance including economic development facilities, education facilities and public development facilities.
This bill reorganizes the placement of certain definitions, clarifies some definitions, and updates cross references within the I-Bank's definition code sections.
Transferring program authority of federal funds: Over a decade ago, California received $2 million in grants from the federal Economic Development Agency. The funds were provided through the Economic Adjustment Assistance Grant Program, which funds economically-distressed communities, and the Sudden and Severe Economic Dislocation Grant Program, which provides capital to businesses in economically-distressed areas.
Until the agency was dissolved in 2003, the funds were under the control of the Technology, Trade, and Commerce Agency. Between 2003 and 2008, the funds were held by the State Controller awaiting statutory direction as to the administrative responsibility for the use of the funds. In 2008, the federal funds were transferred to the Small Business Expansion Fund and the Business, Transportation, and Housing Agency (BTH) was given program responsibility.
Pursuant to the Governor's Reorganization Plan 2, BTH was eliminated in 2013. Legislation to make the statutory changes to implement the reorganization transferred the California Small Business Expansion Fund (including the federal funds) and program authority to GO-Biz. During the same year, the Legislature approved and the Governor signed AB 1247 (Medina), Chapter 537, Statues of 2013, which transferred the Small Business Expansion Fund to the newly created Small Business Finance Center under the direct authority of the I-Bank. This resulted in the funding and the program authority being only indirectly aligned.
This bill proposes a more streamlined organization structure for the federal funds by authorizing the I-Bank to oversee both the money and program implementation responsibility. According to the author, this shift is recommended because the I-Bank already:
Operates under the purview of GO-Biz, meaning GO-Biz will still have oversight;
Has authority to provide direct loans and guarantees to businesses seeking capital, meaning they are well equipped to appropriately expend the funds; and
Has primary responsibility for the funds in the California Small Business Expansion Fund.
Analysis Prepared by: Toni Symonds / J., E.D., & E. / (916) 319-2090 FN: 0000535
AB 1533
Page 1
Date of Hearing: May 27, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB 1533
(Committee on Jobs, Economic Development, and the Economy) – As Amended May 15, 2015
Policy Committee: |
Jobs, Economic Development, and the Economy |
Vote: |
8 - 0 |
|
|
|
|
|
|
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill revises the definition of "economic development facilities" to include facilities that are used to provide goods movement and "port facilities" to specifically reference airports, landports, waterports, and railports, for purposes of the California Infrastructure and Economic Development Bank (I-Bank) Act. This bill also transfers authority over the federal Economic Development Adjustment Assistance (EDAA) Grant and the Sudden and Severe Economic Dislocation Grant from the Governor's Office of Business and Economic Development (GO-Biz) to the I-Bank.
FISCAL EFFECT:
Administrative costs to the I-Bank, not likely to exceed $150,000, to administer grant funds as specified.
COMMENTS:
Purpose. Over a decade ago, California received $2 million from the federal Economic Development Agency through the EDAA Grant, which funds economically-distressed communities, and the Sudden and Severe Economic Dislocation Grant Program, which provides capital to businesses in economically-distressed areas.
The EDAA was administered by the Business, Transportation and Housing (BTH) agency through 2013. When the BTH was eliminated in 2013, pursuant to the Governor’s reorganization plan, the California Small Business Expansion Fund (including the EDAA grant) and the program authority to oversee the EDAA grant, were transferred to GO-Biz. Other 2013 legislation, chaptered after the reorganization bill, transferred the California Small Business Expansion Fund to the I-Bank.
According to the author, this bill proposes a more streamlined organization structure for the federal funds by authorizing the I-Bank to oversee both the money and program implementation responsibility.
This bill also reorganizes the placement of certain definitions, clarifies some definitions, and updates cross references within the I-Bank's definition code sections.
Analysis Prepared by: Misty Feusahrens / APPR. / (916) 319-2081
Discussed in Hearing
51SEC
Assembly Floor
1MIN
Senate Floor
39SEC
Senate Standing Committee on Appropriations
40SEC
Assembly Floor
49SEC
Assembly Standing Committee on Appropriations
2MIN
Assembly Standing Committee on Jobs, Economic Development, and the Economy
Bill Author
Bill Co-Author(s):