AB 1561: Economic development: infrastructure: logistic hubs.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2018-09-10
(1)Existing law requires the Director of the Governors Office of Business and Economic Development to provide to the Legislature, not later than February 1, 2019, a strategy for international trade and investment that includes, at minimum, specified components. Existing law requires that this strategy include a framework that enables the office to evaluate on an ongoing basis, as appropriate, current workforce, infrastructure, research and development, and other needs of small and large firms, including, among other things, airports.
This bill would extend to July 1, 2019, the date by which the director would be required to provide that strategy to the Legislature, and would instead require that the strategy identify the process the Governors Office of Business and Economic Development will use to complete that evaluation, and would require that the strategy also evaluate logistic hubs.
Existing law requires the director to submit the international trade and investment strategy to the Chief Clerk of the Assembly and the Secretary of the Senate and to provide a copy of the strategy to the Speaker of the Assembly, the President pro Tempore of the Senate, and the chairs of specified committees of the Legislature.
This bill would instead require the director to provide to the these specified members of the Legislature a notice of the submittal of the strategy to the Chief Clerk of the Assembly and Secretary of the Senate.
(2)Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, authorizes the California Infrastructure and Economic Development Bank, governed by a board of directors, to, among other things, make loans, issue bonds, and provide other financial assistance for various types of projects that qualify as public development or economic development facilities. The act defines the term public development facilities for these purposes as real and personal property, structures, conveyances, equipment, thoroughfares, buildings, and supporting components thereof that are directly related to providing, among other things, port facilities.
This bill would revise the description of port facilities to specifically include inland ports.
(1)Existing law requires the Director of the Governors Office of Business and Economic Development to provide to the Legislature, not later than February 1, 2019, a strategy for international trade and investment that includes, at minimum, specified components. Existing law requires that this strategy include a framework that enables the office to evaluate on an ongoing basis, as appropriate, current workforce, infrastructure, research and development, and other needs of small and large firms, including, among other things, airports.
This bill would extend to July 1, 2019, the date by which the director would be required to provide that strategy to the Legislature, and would instead require that the strategy identify the process the Governors Office of Business and Economic Development will use to complete that evaluation, and would require that the strategy also evaluate logistic hubs.
Existing law requires the director to submit the international trade and investment strategy to the Chief Clerk of the Assembly and the Secretary of the Senate and to provide a copy of the strategy to the Speaker of the Assembly, the President pro Tempore of the Senate, and the chairs of specified committees of the Legislature.
This bill would instead require the director to provide to the these specified members of the Legislature a notice of the submittal of the strategy to the Chief Clerk of the Assembly and Secretary of the Senate.
(2)Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, authorizes the California Infrastructure and Economic Development Bank, governed by a board of directors, to, among other things, make loans, issue bonds, and provide other financial assistance for various types of projects that qualify as public development or economic development facilities. The act defines the term public development facilities for these purposes as real and personal property, structures, conveyances, equipment, thoroughfares, buildings, and supporting components thereof that are directly related to providing, among other things, port facilities.
This bill would revise the description of port facilities to specifically include inland ports.
(1)Existing law requires the Director of the Governors Office of Business and Economic Development to provide to the Legislature, not later than February 1, 2019, a strategy for international trade and investment that includes, at minimum, specified components. Existing law requires that this strategy include a framework that enables the office to evaluate on an ongoing basis, as appropriate, current workforce, infrastructure, research and development, and other needs of small and large firms, including, among other things, airports.
This bill would extend to July 1, 2019, the date by which the director would be required to provide that strategy to the Legislature, and would instead require that the strategy identify the process the Governors Office of Business and Economic Development will use to complete that evaluation, and would require that the strategy also evaluate logistic hubs.
Existing law requires the director to submit the international trade and investment strategy to the Chief Clerk of the Assembly and the Secretary of the Senate and to provide a copy of the strategy to the Speaker of the Assembly, the President pro Tempore of the Senate, and the chairs of specified committees of the Legislature.
This bill would instead require the director to provide to the these specified members of the Legislature a notice of the submittal of the strategy to the Chief Clerk of the Assembly and Secretary of the Senate.
(2)Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, authorizes the California Infrastructure and Economic Development Bank, governed by a board of directors, to, among other things, make loans, issue bonds, and provide other financial assistance for various types of projects that qualify as public development or economic development facilities. The act defines the term public development facilities for these purposes as real and personal property, structures, conveyances, equipment, thoroughfares, buildings, and supporting components thereof that are directly related to providing, among other things, port facilities.
This bill would revise the description of port facilities to specifically include inland ports, as defined. ports.
(1)Existing law requires the Director of the Governors Office of Business and Economic Development to provide to the Legislature, not later than February 1, 2019, a strategy for international trade and investment that includes, at minimum, specified components. Existing law requires that this strategy include a framework that enables the office to evaluate on an ongoing basis, as appropriate, current workforce, infrastructure, research and development, and other needs of small and large firms, including, among other things, airports.
This bill would extend to July 1, 2019, the date by which the director would be required to provide that strategy to the Legislature, and would instead require that the strategy identify the process the Governors Office of Business and Economic Development will use to complete that evaluation, and would require that the strategy also evaluate logistic hubs.
Existing law requires the director to submit the international trade and investment strategy to the Chief Clerk of the Assembly and the Secretary of the Senate and to provide a copy of the strategy to the Speaker of the Assembly, the President pro Tempore of the Senate, and the chairs of specified committees of the Legislature.
This bill would instead require the director to provide to the these specified members of the Legislature a notice of the submittal of the strategy to the Chief Clerk of the Assembly and Secretary of the Senate.
(2)Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, authorizes the California Infrastructure and Economic Development Bank, governed by a board of directors, to, among other things, make loans, issue bonds, and provide other financial assistance for various types of projects that qualify as public development or economic development facilities. The act defines the term public development facilities for these purposes as real and personal property, structures, conveyances, equipment, thoroughfares, buildings, and supporting components thereof that are directly related to providing, among other things, port facilities.
This bill would revise the description of port facilities to specifically include inland ports, as defined.
(1)Existing law requires the Director of the Governors Office of Business and Economic Development to provide to the Legislature, not later than February 1, 2019, a strategy for international trade and investment that includes, at minimum, specified components. Existing law requires that this strategy include a framework that enables the office to evaluate on an ongoing basis, as appropriate, current workforce, infrastructure, research and development, and other needs of small and large firms, including, among other things, airports.
This bill would expand this required framework to include instead require that the strategy identify the process the Governors Office of Business and Economic Development will use to complete that evaluation, and would require that the strategy also evaluate logistic hubs.
Existing law requires the director to submit the international trade and investment strategy to the Chief Clerk of the Assembly and the Secretary of the Senate and to provide a copy of the strategy to the Speaker of the Assembly, the President pro Tempore of the Senate, and the chairs of specified committees of the Legislature.
This bill would instead require the director to provide to the these specified members of the Legislature a notice of the submittal of the strategy to the Chief Clerk of the Assembly and Secretary of the Senate.
(2)Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, authorizes the California Infrastructure and Economic Development Bank, governed by a board of directors, to, among other things, make loans, issue bonds, and provide other financial assistance for various types of projects that qualify as public development or economic development facilities. The act defines the term public development facilities for these purposes as real and personal property, structures, conveyances, equipment, thoroughfares, buildings, and supporting components thereof that are directly related to providing, among other things, port facilities.
This bill would revise the description of port facilities to specifically include inland ports, as defined.
(1)Existing law requires the Director of the Governors Office of Business and Economic Development to provide to the Legislature, not later than February 1, 2019, a strategy for international trade and investment that includes, at minimum, specified components. Existing law requires that this strategy include a framework that enables the office to evaluate on an ongoing basis, as appropriate, current workforce, infrastructure, research and development, and other needs of small and large firms, including, among other things, airports.
This bill would expand this required framework to include logistic hubs.
Existing law requires the director to submit the international trade and investment strategy to the Chief Clerk of the Assembly and the Secretary of the Senate and to provide a copy of the strategy to the Speaker of the Assembly, the President pro Tempore of the Senate, and the chairs of specified committees of the Legislature.
This bill would instead require the director to provide to the these specified members of the Legislature a notice of the submittal of the strategy to the Chief Clerk of the Assembly and Secretary of the Senate.
(2)Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, authorizes the California Infrastructure and Economic Development Bank, governed by a board of directors, to, among other things, make loans, issue bonds, and provide other financial assistance for various types of projects that qualify as public development or economic development facilities. The act defines the term public development facilities for these purposes as real and personal property, structures, conveyances, equipment, thoroughfares, buildings, and supporting components thereof that are directly related to providing, among other things, port facilities.
This bill would revise the description of port facilities to specifically include inland ports, as defined.
(1)Existing law authorizes 2 or more harbor agencies to establish an authority under the joint powers law, with various powers and duties, for the purpose of establishing an infrastructure fund and financing port or harbor infrastructure, as specified.
This bill would authorize 2 or more local agencies to establish an authority under the joint powers law for the purpose of establishing an infrastructure fund and financing inland port infrastructure.
(2)Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, authorizes the California Infrastructure and Economic Development Bank, governed by a board of directors, to, among other things, make loans, issue bonds, and provide other financial assistance for various types of projects that qualify as public development or economic development facilities. The act defines the term public development facilities for these purposes as real and personal property, structures, conveyances, equipment, thoroughfares, buildings, and supporting components thereof that are directly related to providing, among other things, port facilities.
This bill would revise the description of port facilities to specifically include inland ports, as defined.
(1)Existing law authorizes 2 or more harbor agencies to establish an authority under the joint powers law, with various powers and duties, for the purpose of establishing an infrastructure fund and financing port or harbor infrastructure, as specified.
This bill would enact similar provisions authorizing authorize 2 or more local agencies to establish an authority under the joint powers law for the purpose of establishing an infrastructure fund and financing land inland port infrastructure.
(2) Existing law authorizes the legislative body of a city or county to establish an enhanced infrastructure financing district, adopt an infrastructure financing plan, and issue bonds, for which only the district is liable, upon approval by the voters, and to finance public capital facilities or other specified projects of communitywide significance, including, but not limited to, among other things, environmental mitigation, military base reuse, low-income housing, specified housing and transit projects, and specified port or harbor infrastructure. Existing law authorizes an enhanced infrastructure financing district to fund infrastructure projects through tax increment financing, pursuant to the infrastructure financing plan and the agreement of affected taxing entities. Existing law authorizes the creation of seaport infrastructure financing districts for the purpose of implementing these provisions relative to seaports.This bill would additionally authorize the creation of land port infrastructure financing districts for the purpose of implementing these provisions relative to land ports.(2)Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, authorizes the California Infrastructure and Economic Development Bank, governed by a board of directors, to, among other things, make loans, issue bonds, and provide other financial assistance for various types of projects that qualify as public development or economic development facilities. The act defines the term public development facilities for these purposes as real and personal property, structures, conveyances, equipment, thoroughfares, buildings, and supporting components thereof that are directly related to providing, among other things, port facilities.
This bill would revise the description of port facilities to specifically include inland ports, as defined.
(1) Existing law authorizes 2 or more harbor agencies to establish an authority under the joint powers law, with various powers and duties, for the purpose of establishing an infrastructure fund and financing port or harbor infrastructure, as specified.
This bill would enact similar provisions authorizing 2 or more local agencies to establish an authority under the joint powers law for the purpose of establishing an infrastructure fund and financing land port infrastructure.
(2) Existing law authorizes the legislative body of a city or county to establish an enhanced infrastructure financing district, adopt an infrastructure financing plan, and issue bonds, for which only the district is liable, upon approval by the voters, and to finance public capital facilities or other specified projects of communitywide significance, including, but not limited to, among other things, environmental mitigation, military base reuse, low-income housing, specified housing and transit projects, and specified port or harbor infrastructure. Existing law authorizes an enhanced infrastructure financing district to fund infrastructure projects through tax increment financing, pursuant to the infrastructure financing plan and the agreement of affected taxing entities. Existing law authorizes the creation of seaport infrastructure financing districts for the purpose of implementing these provisions relative to seaports.
This bill would additionally authorize the creation of land port infrastructure financing districts for the purpose of implementing these provisions relative to land ports.
The Legislature finds and declares all of the following:
(a)The state has a compelling interest in the development of a robust network of logistic hubs, connected by roads, rail, and air. It is the policy of this state that, because of that compelling interest, legislation in this area is a matter of statewide concern and is necessary to develop and build out an intermodal network in a manner that provides the state with an economic advantage today and in the future.
(b)New and upgraded port and foreign-trade zone facilities, as well as rail and road infrastructure investments, are needed to enhance Californias competitiveness for international and domestic cargoes, grow employment, yield significant economic development, increase state and local tax revenues, and reduce impacts on environmental quality from goods movement.
(c)The states ports of entry serve as a vital interface between California, the United States, and the states important trade partners in North and South America, the Pacific Rim countries, and other regions of the world. In 2016, California exported $163.6 billion in products through its air, land, and sea ports to over 220 foreign markets.
(d)Inland ports represent a relatively new concept within the United States freight system, but their use is growing as facilities in Salt Lake City, Utah; Dallas/Fort Worth, Texas; and Cordele, Georgia expand these regions goods movement capabilities. Inland ports can play a key role in enhancing the efficiency of logistic networks and serve as key nodes within expansive domestic and international supply chains.
(e)Californias long-term success is dependent on the ability to reimagine a state manufacturing and freight movement system that connects resources to production and products to consumers with economical options that are able to adapt to changing needs. Developing inland ports complements the states existing innovation, manufacturing, and goods movement resources, while offering new options for improving air quality and reducing greenhouse gas emissions. Inland ports also promote and disburse economic development benefits throughout the state and provide for higher levels of logistical integration.
(f)A further benefit of inland ports is the development of underutilized areas and economic resources of the state, while relieving congestion at land, air, and sea ports of entry. Once goods are received at the inland port, further inspection can occur or the goods can be transferred to a different transportation mode, stored for future distribution, or assembled into other products. The colocation of innovation and manufacturing facilities with the consolidation of logistic services provides inland ports with unique and high-value opportunities attractive to quality shippers and logistical managers.
(g)It is the intent of the Legislature to assist in the economic development of a statewide goods movement network that supports, leverages, enhances, and links resources, manufacturing, warehousing, distribution centers, and inland ports with airports, seaports, and land ports of entry.
SEC. 2.Section 13996.55 of the Government Code is amended to read:13996.55.(a)The Director of the Governors Office of Business and Economic Development shall provide to the Legislature, not later than July 1, 2019, a strategy for international trade and investment that, at a minimum, includes all of the following:
(1)Policy goals, objectives, and recommendations necessary to implement a comprehensive international trade and investment program for the state. This information shall be provided in a fashion that clearly indicates priority within the overall strategy.
(2)Measurable outcomes and timelines for the goals, objectives, and actions for the international trade and investment program.
(3)Identification of impediments for achieving goals and objectives.
(4)Identification of key stakeholder partnerships that will be used in implementing the strategy.
(5)Identification of options for funding recommended actions.
(6)A current organizational structure for the state administration of international trade and investment policies, programs, and services. The organizational chart may include other state entities that are related to achieving the goals, objectives, and actions identified in the strategy.
(b)(1)The strategy shall be based on current and emerging market conditions and the needs of investors, businesses, and workers to be competitive in global markets.
(2)The strategy shall identify the process the Governors Office of Business and Economic Development will use to evaluate on an ongoing basis, as appropriate, current workforce, infrastructure, research and development, and other needs of small and large firms, including, but not limited to, highways, logistic hubs, and rail that link businesses with the states ports of entry and foreign and domestic markets.
(3)The strategy may, to the extent relevant and feasible, be based on existing studies and reports, including, but not limited to, the Goods Movement Action Plan, the California Strategic Workforce Development Plan, the California Export of Recycled Materials Report, the California Five-Year Infrastructure Plan, and the Environmental Goals and Policy Report.
(c)The strategy shall be submitted to the Chief Clerk of the Assembly and the Secretary of the Senate and a notice of its submittal shall be provided to the Speaker of the Assembly, the President pro Tempore of the Senate, and the chairs of the Assembly Committee on Jobs, Economic Development, and the Economy and the Senate Committee on Business, Professions and Economic Development, or the successor committees with jurisdiction over international trade and economic development programs.
(d)The strategy shall be updated pursuant to the procedures of this section at least once every five years.
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, inland ports, 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.
(18)Housing-related infrastructure including city streets; drainage, water supply, and flood control; environmental mitigation measures; power and communications; public transit improvement that directly supports transit-oriented housing; sewage collection and treatment; and water treatment and distribution.
(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.
The Legislature finds and declares all of the following:
(a)The state has a compelling interest in the development of a robust network of logistic hubs, connected by roads, rail, and air. It is the policy of this state that, because of that compelling interest, legislation in this area is a matter of statewide concern and is necessary to develop and build out an intermodal network in a manner that provides the state with an economic advantage today and in the future.
(b)New and upgraded port and foreign-trade zone facilities, as well as rail and road infrastructure investments, are needed to enhance Californias competitiveness for international and domestic cargoes, grow employment, yield significant economic development, increase state and local tax revenues, and reduce impacts on environmental quality from goods movement.
(c)The states ports of entry serve as a vital interface between California, the United States, and the states important trade partners in North and South America, the Pacific Rim countries, and other regions of the world. In 2016, California exported $163.6 billion in products through its air, land, and sea ports to over 220 foreign markets.
(d)Inland ports represent a relatively new concept within the United States freight system, but their use is growing as facilities in Salt Lake City, Utah; Dallas/Fort Worth, Texas; and Cordele, Georgia expand these regions goods movement capabilities. Inland ports can play a key role in enhancing the efficiency of logistic networks and serve as key nodes within expansive domestic and international supply chains.
(e)Californias long-term success is dependent on the ability to reimagine a state manufacturing and freight movement system that connects resources to production and products to consumers with economical options that are able to adapt to changing needs. Developing inland ports complements the states existing innovation, manufacturing, and goods movement resources, while offering new options for improving air quality and reducing greenhouse gas emissions. Inland ports also promote and disburse economic development benefits throughout the state and provide for higher levels of logistical integration.
(f)A further benefit of inland ports is the development of underutilized areas and economic resources of the state, while relieving congestion at land, air, and sea ports of entry. Once goods are received at the inland port, further inspection can occur or the goods can be transferred to a different transportation mode, stored for future distribution, or assembled into other products. The colocation of innovation and manufacturing facilities with the consolidation of logistic services provides inland ports with unique and high-value opportunities attractive to quality shippers and logistical managers.
(g)It is the intent of the Legislature to assist in the economic development of a statewide goods movement network that supports, leverages, enhances, and links resources, manufacturing, warehousing, distribution centers, and inland ports with airports, seaports, and land ports of entry.
SEC. 2.Section 13996.55 of the Government Code is amended to read:13996.55.(a)The Director of the Governors Office of Business and Economic Development shall provide to the Legislature, not later than July 1, 2019, a strategy for international trade and investment that, at a minimum, includes all of the following:
(1)Policy goals, objectives, and recommendations necessary to implement a comprehensive international trade and investment program for the state. This information shall be provided in a fashion that clearly indicates priority within the overall strategy.
(2)Measurable outcomes and timelines for the goals, objectives, and actions for the international trade and investment program.
(3)Identification of impediments for achieving goals and objectives.
(4)Identification of key stakeholder partnerships that will be used in implementing the strategy.
(5)Identification of options for funding recommended actions.
(6)A current organizational structure for the state administration of international trade and investment policies, programs, and services. The organizational chart may include other state entities that are related to achieving the goals, objectives, and actions identified in the strategy.
(b)(1)The strategy shall be based on current and emerging market conditions and the needs of investors, businesses, and workers to be competitive in global markets.
(2)The strategy shall identify the process the Governors Office of Business and Economic Development will use to evaluate on an ongoing basis, as appropriate, current workforce, infrastructure, research and development, and other needs of small and large firms, including, but not limited to, highways, logistic hubs, and rail that link businesses with the states ports of entry and foreign and domestic markets.
(3)The strategy may, to the extent relevant and feasible, be based on existing studies and reports, including, but not limited to, the Goods Movement Action Plan, the California Strategic Workforce Development Plan, the California Export of Recycled Materials Report, the California Five-Year Infrastructure Plan, and the Environmental Goals and Policy Report.
(c)The strategy shall be submitted to the Chief Clerk of the Assembly and the Secretary of the Senate and a notice of its submittal shall be provided to the Speaker of the Assembly, the President pro Tempore of the Senate, and the chairs of the Assembly Committee on Jobs, Economic Development, and the Economy and the Senate Committee on Business, Professions and Economic Development, or the successor committees with jurisdiction over international trade and economic development programs.
(d)The strategy shall be updated pursuant to the procedures of this section at least once every five years.
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, inland ports, 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.
(18)Housing-related infrastructure including city streets; drainage, water supply, and flood control; environmental mitigation measures; power and communications; public transit improvement that directly supports transit-oriented housing; sewage collection and treatment; and water treatment and distribution.
(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.
The Legislature finds and declares all of the following:
(a)The state has a compelling interest in the development of a robust network of logistic hubs, connected by roads, rail, and air. It is the policy of this state that, because of that compelling interest, legislation in this area is a matter of statewide concern and is necessary to develop and build out an intermodal network in a manner that provides the state with an economic advantage today and in the future.
(b)New and upgraded port and foreign-trade zone facilities, as well as rail and road infrastructure investments, are needed to enhance Californias competitiveness for international and domestic cargoes, grow employment, yield significant economic development, increase state and local tax revenues, and reduce impacts on environmental quality from goods movement.
(c)The states ports of entry serve as a vital interface between California, the United States, and the states important trade partners in North and South America, the Pacific Rim countries, and other regions of the world. In 2016, California exported $163.6 billion in products through its air, land, and sea ports to over 220 foreign markets.
(d)Inland ports represent a relatively new concept within the United States freight system, but their use is growing as facilities in Salt Lake City, Utah; Dallas/Fort Worth, Texas; and Cordele, Georgia expand these regions goods movement capabilities. Inland ports can play a key role in enhancing the efficiency of logistic networks and serve as key nodes within expansive domestic and international supply chains.
(e)Californias long-term success is dependent on the ability to reimagine a state manufacturing and freight movement system that connects resources to production and products to consumers with economical options that are able to adapt to changing needs. Developing inland ports complements the states existing innovation, manufacturing, and goods movement resources, while offering new options for improving air quality and reducing greenhouse gas emissions. Inland ports also promote and disburse economic development benefits throughout the state and provide for higher levels of logistical integration.
(f)A further benefit of inland ports is the development of underutilized areas and economic resources of the state, while relieving congestion at land, air, and sea ports of entry. Once goods are received at the inland port, further inspection can occur or the goods can be transferred to a different transportation mode, stored for future distribution, or assembled into other products. The colocation of innovation and manufacturing facilities with the consolidation of logistic services provides inland ports with unique and high-value opportunities attractive to quality shippers and logistical managers.
(g)It is the intent of the Legislature to assist in the economic development of a statewide goods movement network that supports, leverages, enhances, and links resources, manufacturing, warehousing, distribution centers, and inland ports with airports, seaports, and land ports of entry.
SEC. 2.Section 13996.55 of the Government Code is amended to read:13996.55.(a)The Director of the Governors Office of Business and Economic Development shall provide to the Legislature, not later than July 1, 2019, a strategy for international trade and investment that, at a minimum, includes all of the following:
(1)Policy goals, objectives, and recommendations necessary to implement a comprehensive international trade and investment program for the state. This information shall be provided in a fashion that clearly indicates priority within the overall strategy.
(2)Measurable outcomes and timelines for the goals, objectives, and actions for the international trade and investment program.
(3)Identification of impediments for achieving goals and objectives.
(4)Identification of key stakeholder partnerships that will be used in implementing the strategy.
(5)Identification of options for funding recommended actions.
(6)A current organizational structure for the state administration of international trade and investment policies, programs, and services. The organizational chart may include other state entities that are related to achieving the goals, objectives, and actions identified in the strategy.
(b)(1)The strategy shall be based on current and emerging market conditions and the needs of investors, businesses, and workers to be competitive in global markets.
(2)The strategy shall identify the process the Governors Office of Business and Economic Development will use to evaluate on an ongoing basis, as appropriate, current workforce, infrastructure, research and development, and other needs of small and large firms, including, but not limited to, highways, logistic hubs, and rail that link businesses with the states ports of entry and foreign and domestic markets.
(3)The strategy may, to the extent relevant and feasible, be based on existing studies and reports, including, but not limited to, the Goods Movement Action Plan, the California Strategic Workforce Development Plan, the California Export of Recycled Materials Report, the California Five-Year Infrastructure Plan, and the Environmental Goals and Policy Report.
(c)The strategy shall be submitted to the Chief Clerk of the Assembly and the Secretary of the Senate and a notice of its submittal shall be provided to the Speaker of the Assembly, the President pro Tempore of the Senate, and the chairs of the Assembly Committee on Jobs, Economic Development, and the Economy and the Senate Committee on Business, Professions and Economic Development, or the successor committees with jurisdiction over international trade and economic development programs.
(d)The strategy shall be updated pursuant to the procedures of this section at least once every five years.
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)(A)Port facilities including airports, inland ports, 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.
(B)For purposes of this paragraph, inland port means a logistical hub that is located on a site separate from land, air, and coastal ports of entry and that is designed to facilitate and process international and domestic trade, including, but not limited to, multimodal transportation assets and goods movement value-added facilities and services.
(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.
(18)Housing-related infrastructure including city streets; drainage, water supply, and flood control; environmental mitigation measures; power and communications; public transit improvement that directly supports transit-oriented housing; sewage collection and treatment; and water treatment and distribution.
(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.
The Legislature finds and declares all of the following:
(a)The state has a compelling interest in the development of a robust network of logistic hubs, connected by roads, rail, and air. It is the policy of this state that, because of that compelling interest, legislation in this area is a matter of statewide concern and is necessary to develop and build out an intermodal network in a manner that provides the state with an economic advantage today and in the future.
(b)New and upgraded port and foreign-trade zone facilities, as well as rail and road infrastructure investments, are needed to enhance Californias competitiveness for international and domestic cargoes, grow employment, yield significant economic development, increase state and local tax revenues, and reduce impacts on environmental quality from goods movement.
(c)The states ports of entry serve as a vital interface between California, the United States, and the states important trade partners in North and South America, the Pacific Rim countries, and other regions of the world. In 2016, California exported $163.6 billion in products through its air, land, and sea ports to over 220 foreign markets.
(d)Inland ports represent a relatively new concept within the United States freight system, but their use is growing as facilities in Salt Lake City, Utah; Dallas/Fort Worth, Texas; and Cordele, Georgia expand these regions goods movement capabilities. Inland ports can play a key role in enhancing the efficiency of logistic networks and serve as key nodes within expansive domestic and international supply chains.
(e)Californias long-term success is dependent on the ability to reimagine a state manufacturing and freight movement system that connects resources to production and products to consumers with economical options that are able to adapt to changing needs. Developing inland ports complements the states existing innovation, manufacturing, and goods movement resources, while offering new options for improving air quality and reducing greenhouse gas emissions. Inland ports also promote and disburse economic development benefits throughout the state and provide for higher levels of logistical integration.
(f)A further benefit of inland ports is the development of underutilized areas and economic resources of the state, while relieving congestion at land, air, and sea ports of entry. Once goods are received at the inland port, further inspection can occur or the goods can be transferred to a different transportation mode, stored for future distribution, or assembled into other products. The colocation of innovation and manufacturing facilities with the consolidation of logistic services provides inland ports with unique and high-value opportunities attractive to quality shippers and logistical managers.
(g)It is the intent of the Legislature to assist in the economic development of a statewide goods movement network that supports, leverages, enhances, and links resources, manufacturing, warehousing, distribution centers, and inland ports with airports, seaports, and land ports of entry.
SEC. 2.Section 13996.55 of the Government Code is amended to read:13996.55.(a)The Director of the Governors Office of Business and Economic Development shall provide to the Legislature, not later than February July 1, 2019, a strategy for international trade and investment that, at a minimum, includes all of the following:
(1)Policy goals, objectives, and recommendations necessary to implement a comprehensive international trade and investment program for the state. This information shall be provided in a fashion that clearly indicates priority within the overall strategy.
(2)Measurable outcomes and timelines for the goals, objectives, and actions for the international trade and investment program.
(3)Identification of impediments for achieving goals and objectives.
(4)Identification of key stakeholder partnerships that will be used in implementing the strategy.
(5)Identification of options for funding recommended actions.
(6)A current organizational structure for the state administration of international trade and investment policies, programs, and services. The organizational chart may include other state entities that are related to achieving the goals, objectives, and actions identified in the strategy.
(b)(1)The strategy shall be based on current and emerging market conditions and the needs of investors, businesses, and workers to be competitive in global markets.
(2)The strategy shall identify the process the Governors Office of Business and Economic Development will use to evaluate on an ongoing basis, as appropriate, current workforce, infrastructure, research and development, and other needs of small and large firms, including, but not limited to, highways, logistic hubs, and rail that link businesses with the states ports of entry and foreign and domestic markets.
(3)The strategy may, to the extent relevant and feasible, be based on existing studies and reports, including, but not limited to, the Goods Movement Action Plan, the California Strategic Workforce Development Plan, the California Export of Recycled Materials Report, the California Five-Year Infrastructure Plan, and the Environmental Goals and Policy Report.
(c)The strategy shall be submitted to the Chief Clerk of the Assembly and the Secretary of the Senate and a notice of its submittal shall be provided to the Speaker of the Assembly, the President pro Tempore of the Senate, and the chairs of the Assembly Committee on Jobs, Economic Development, and the Economy and the Senate Committee on Business, Professions and Economic Development, or the successor committees with jurisdiction over international trade and economic development programs.
(d)The strategy shall be updated pursuant to the procedures of this section at least once every five years.
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)(A)Port facilities including airports, inland ports, 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.
(B)For purposes of this paragraph, inland port means a logistical hub that is located on a site separate from land, air, and coastal ports of entry and that is designed to facilitate and process international and domestic trade, including, but not limited to, multimodal transportation assets and goods movement value-added facilities and services.
(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.
(18)Housing-related infrastructure including city streets; drainage, water supply, and flood control; environmental mitigation measures; power and communications; public transit improvement that directly supports transit-oriented housing; sewage collection and treatment; and water treatment and distribution.
(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.
The Legislature finds and declares all of the following:
(a)The state has a compelling interest in the development of a robust network of logistic hubs, connected by roads, rail, and air. It is the policy of this state that, because of that compelling interest, legislation in this area is a matter of statewide concern and is necessary to develop and build out an intermodal network in a manner that provides the state with an economic advantage today and in the future.
(b)New and upgraded port and foreign-trade zone facilities, as well as rail and road infrastructure investments, are needed to enhance Californias competitiveness for international and domestic cargoes, grow employment, yield significant economic development, increase state and local tax revenues, and reduce impacts on environmental quality from goods movement.
(c)The states ports of entry serve as a vital interface between California, the United States, and the states important trade partners in North and South America, the Pacific Rim countries, and other regions of the world. In 2016, California exported $163.6 billion in products through its air, land, and sea ports to over 220 foreign markets.
(d)Inland ports represent a relatively new concept within the United States freight system, but their use is growing as facilities in Salt Lake City, Utah; Dallas/Fort Worth, Texas; and Cordele, Georgia expand these regions goods movement capabilities. Inland ports can play a key role in enhancing the efficiency of logistic networks and serve as key nodes within expansive domestic and international supply chains.
(e)Californias long-term success is dependent on the ability to reimagine a state manufacturing and freight movement system that connects resources to production and products to consumers with economical options that are able to adapt to changing needs. Developing inland ports complements the states existing innovation, manufacturing, and goods movement resources, while offering new options for improving air quality and reducing greenhouse gas emissions. Inland ports also promote and disburse economic development benefits throughout the state and provide for higher levels of logistical integration.
(f)A further benefit of inland ports is the development of underutilized areas and economic resources of the state, while relieving congestion at land, air, and sea ports of entry. Once goods are received at the inland port, further inspection can occur or the goods can be transferred to a different transportation mode, stored for future distribution, or assembled into other products. The colocation of innovation and manufacturing facilities with the consolidation of logistic services provides inland ports with unique and high-value opportunities attractive to quality shippers and logistical managers.
(g)It is the intent of the Legislature to assist in the economic development of a statewide goods movement network that supports, leverages, enhances, and links resources, manufacturing, warehousing, distribution centers, and inland ports with airports, seaports, and land ports of entry.
SEC. 2.Section 13996.55 of the Government Code is amended to read:13996.55.(a)The Director of the Governors Office of Business and Economic Development shall provide to the Legislature, not later than February 1, 2019, a strategy for international trade and investment that, at a minimum, includes all of the following:
(1)Policy goals, objectives, and recommendations necessary to implement a comprehensive international trade and investment program for the state. This information shall be provided in a fashion that clearly indicates priority within the overall strategy.
(2)Measurable outcomes and timelines for the goals, objectives, and actions for the international trade and investment program.
(3)Identification of impediments for achieving goals and objectives.
(4)Identification of key stakeholder partnerships that will be used in implementing the strategy.
(5)Identification of options for funding recommended actions.
(6)Identification of an international trade and investment A current organizational structure for the state administration of international trade and investment policies, programs, and services. The organizational chart may include other state entities that are related to achieving the goals, objectives, and actions identified in the strategy.
(b)(1)The strategy shall be based on current and emerging market conditions and the needs of investors, businesses, and workers to be competitive in global markets. In order to keep the strategy current, the
(2)The strategy shall include a framework that enables identify the process the Governors Office of Business and Economic Development will use to evaluate on an ongoing basis, as appropriate, current workforce, infrastructure, research and development, and other needs of small and large firms, including, but not limited to, highways, logistic hubs, and rail that link businesses with the states ports of entry and foreign and domestic markets.
(2)(3)The strategy may, to the extent relevant and feasible, be based on existing studies and reports, including, but not limited to, the Goods Movement Action Plan, the California Strategic Workforce Development Plan, the California Export of Recycled Materials Report, the California Five-Year Infrastructure Plan, and the Environmental Goals and Policy Report.
(c)The strategy shall be submitted to the Chief Clerk of the Assembly and the Secretary of the Senate and a notice of its submittal shall be provided to the Speaker of the Assembly, the President pro Tempore of the Senate, and the chairs of the Assembly Committee on Jobs, Economic Development, and the Economy and the Senate Committee on Business, Professions and Economic Development, or the successor committees with jurisdiction over international trade and economic development programs.
(d)The strategy shall be updated pursuant to the procedures of this section at least once every five years.
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)(A)Port facilities including airports, inland ports, 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.
(B)For purposes of this paragraph, inland port means a logistical hub that is located on a site separate from land, air, and coastal ports of entry and that is designed to facilitate and process international and domestic trade, including, but not limited to, multimodal transportation assets and goods movement value-added facilities and services.
(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.
(18)Housing-related infrastructure including city streets; drainage, water supply, and flood control; environmental mitigation measures; power and communications; public transit improvement that directly supports transit-oriented housing; sewage collection and treatment; and water treatment and distribution.
(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.
The Legislature finds and declares all of the following:
(a)The state has a compelling interest in the development of a robust network of logistic hubs, connected by roads, rail, and air. It is the policy of this state that, because of that compelling interest, legislation in this area is a matter of statewide concern and is necessary to develop and build out an intermodal network in a manner that provides the state with an economic advantage today and in the future.
(b)New and upgraded port and foreign-trade zone facilities, as well as rail and road infrastructure investments, are needed to enhance Californias competitiveness for international and domestic cargoes, grow employment, yield significant economic development, increase state and local tax revenues, and reduce impacts on environmental quality from goods movement.
(c)The states ports of entry serve as a vital interface between California, the United States, and the states important trade partners in North and South America, the Pacific Rim countries, and other regions of the world. In 2016, California exported $163.6 billion in products through its air, land, and sea ports to over 220 foreign markets.
(d)Inland ports represent a relatively new concept within the United States freight system, but their use is growing as facilities in Salt Lake City, Utah; Dallas/Fort Worth, Texas; and Cordele, Georgia expand these regions goods movement capabilities. Inland ports can play a key role in enhancing the efficiency of logistic networks and serve as key nodes within expansive domestic and international supply chains.
(e)Californias long-term success is dependent on the ability to reimagine a state manufacturing and freight movement system that connects resources to production and products to consumers with economical options that are able to adapt to changing needs. Developing inland ports complements the states existing innovation, manufacturing, and goods movement resources, while offering new options for improving air quality and reducing greenhouse gas emissions. Inland ports also promote and disburse economic development benefits throughout the state and provide for higher levels of logistical integration.
(f)A further benefit of inland ports is the development of underutilized areas and economic resources of the state, while relieving congestion at land, air, and sea ports of entry. Once goods are received at the inland port, further inspection can occur or the goods can be transferred to a different transportation mode, stored for future distribution, or assembled into other products. The colocation of innovation and manufacturing facilities with the consolidation of logistic services provides inland ports with unique and high-value opportunities attractive to quality shippers and logistical managers.
(g)It is the intent of the Legislature to assist in the economic development of a statewide goods movement network that supports, leverages, enhances, and links resources, manufacturing, warehousing, distribution centers, and inland ports with airports, seaports, and land ports of entry.
SEC. 2.Section 13996.55 of the Government Code is amended to read:13996.55.(a)The Director of the Governors Office of Business and Economic Development shall provide to the Legislature, not later than February 1, 2019, a strategy for international trade and investment that, at a minimum, includes all of the following:
(1)Policy goals, objectives, and recommendations necessary to implement a comprehensive international trade and investment program for the state. This information shall be provided in a fashion that clearly indicates priority within the overall strategy.
(2)Measurable outcomes and timelines for the goals, objectives, and actions for the international trade and investment program.
(3)Identification of impediments for achieving goals and objectives.
(4)Identification of key stakeholder partnerships that will be used in implementing the strategy.
(5)Identification of options for funding recommended actions.
(6)Identification of an international trade and investment organizational structure for the state administration of international trade and investment policies, programs, and services.
(b)(1)The strategy shall be based on current and emerging market conditions and the needs of investors, businesses, and workers to be competitive in global markets. In addition to the policy goals, objectives, and recommendations required pursuant to subdivision (a), order to keep the strategy current, the strategy shall include a framework that enables the Governors Office of Business and Economic Development to evaluate on an ongoing basis, as appropriate, current workforce, infrastructure, research and development, and other needs of small and large firms, including, but not limited to, highways, airports, logistic hubs, and rail that link businesses with the states ports of entry and foreign and domestic markets.
(2)The strategy may, to the extent relevant and feasible, be based on existing studies and reports, including, but not limited to, the Goods Movement Action Plan, the California Strategic Workforce Development Plan, the California Export of Recycled Materials Report, the California Five-Year Infrastructure Plan, and the Environmental Goals and Policy Report.
(c)The strategy shall be submitted to the Chief Clerk of the Assembly and the Secretary of the Senate. A copy of the strategy Senate and a notice of its submittal shall be provided to the Speaker of the Assembly, the President pro Tempore of the Senate, and the chairs of the Assembly Committee on Jobs, Economic Development, and the Economy and the Senate Committee on Business, Professions and Economic Development, or the successor committees with jurisdiction over international trade and economic development programs.
(d)The strategy shall be updated pursuant to the procedures of this section at least once every five years.
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)(A)Port facilities including airports, inland ports, 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.
(B)For purposes of this paragraph, inland port means a logistical hub that is located on a site separate from land, air, and coastal ports of entry and that is designed to facilitate and process international and domestic trade, including, but not limited to, multimodal transportation assets and goods movement value-added facilities and services.
(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.
(18)Housing-related infrastructure including city streets; drainage, water supply, and flood control; environmental mitigation measures; power and communications; public transit improvement that directly supports transit-oriented housing; sewage collection and treatment; and water treatment and distribution.
(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.
SECTION 1.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)(A)Port facilities including airports, inland ports, 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.(B)For purposes of this paragraph, an inland port means a logistical hub that is located on a site separate from land, air, and coastal ports of entry and that is designed to facilitate and process international and domestic trade, including, but not limited to, multimodal transportation assets and goods movement value added facilities and services.(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.Title 6.9 (commencing with Section 64200) is added to the Government Code, to read:6.9.INLAND PORT DEVELOPMENT AND MANAGEMENT ACT1.Findings and Definitions1.Legislative Findings64200.This act shall be known as, and may be cited as, the Inland Port Development and Management Act.64201.The Legislature finds and declares all of the following:(a)The state has a compelling interest in the success of its inland ports because, as in the case of sea ports and harbors, they provide significant economic benefit to the state in terms of jobs, personal income, business revenue, and taxes. It is the policy of the state that, because of that compelling interest, legislation in this area is a matter of statewide concern and is necessary to develop the inland ports of this state for the benefit of the people.(b)Inland ports, and sea ports and harbors, are the vital interface between California and the United States and the states important trade partners in North and South America, the Pacific Rim countries, and other regions of the world.(c)In addition to inland port access transportation projects, there is a need for new facilities and infrastructure investments that will enhance Californias competitiveness for international and domestic cargoes, grow employment, yield significant economic development, increase state and local tax revenues, and reduce impacts to environmental quality from goods movement.(d)Californias long-term success is dependent on the ability to reimage a state freight movement system that connects, offers economical options, and is adapting to changing needs. Using an expanded inland port concept incorporates the idea that some facilities at traditional maritime ports could be duplicated or complemented at inland locations. In this way, inland ports can promote and disburse economic development and provide for higher levels of logistical integration while reducing the demands on limited capacity at air and sea ports.(e)A further benefit of inland ports is to relieve congestion at land and sea ports. Once goods are received at the inland port, further inspection can occur or the goods can be transferred to a different transportation mode, stored for future distribution, or assembled into other products. This consolidation of services provides value-adding activities, allowing for less congestion and fewer delays at border points of entry. Consolidated services offer inland ports unique and high-value opportunities attractive to quality shippers and logistical managers.(f)It is the intent of the Legislature to assist in the development of a statewide inland port system that supports, leverages, enhances, and links resources, manufacturing, warehousing, distribution centers, and airports, seaports, and land ports of entry. In achieving this interconnected and more efficient economic development network, Californias public and private sectors will benefit from a reduction of borrowing costs and accelerated timeframes for adopting innovative and lower carbon-emitting technologies and processes.2.Definitions64203.The definitions in this article govern the construction of this title:(a)Authority means a joint powers entity or nonprofit public benefit corporation created in accordance with Section 64210.(b)Bonds means bonds, notes, bond anticipation notes, commercial paper, or other evidences of indebtedness or lease, installment sale, or other agreements or certificates of participation therein.(c)Infrastructure fund means a port infrastructure fund established by an authority pursuant to Section 64211.(d)Inland port means a logistical hub that is located on a site separate from land, air, and coastal ports of entry and that is designed to facilitate and process international and domestic trade, including, but not limited to, multimodal transportation assets and goods movement value added facilities and services.(e)Inland port infrastructure means any of the following, if its primary or predominant use is of direct benefit to the port:(1)Streets, roads, highways, bridges, sidewalks, curbs, gutters, tunnels, subways, alleyways, viaducts, pipelines, rail lines, or other facilities for the transportation or movement of people, vehicles, equipment, or goods.(2)Piers, platforms, decks, cranes, or other facilities for loading or unloading of cargo or passengers.(3)Lands, easements, port access routes, rights-of-way, dredge disposal sites, safety zones, levees, or walls of rock or other material to protect property or traffic.(4)Parking, warehouse, or storage facilities.(5)Parks, recreation, or open-space facilities.(6)Remediation or any capital improvement that improves environmental quality.(7)Water, wastewater, drainage, electric, or telecommunication systems or facilities.(8)Buildings, structures, facilities, improvements, or equipment necessary or convenient to any of paragraphs (1) to (7), inclusive, or to the operation of a port.(9)Public improvements authorized pursuant to the Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code), the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), and the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5).(f)Joint powers law means Chapter 5 (commencing with Section 6500) of Division 7 of Title 1.(g)Member means any agency that is party to an agreement establishing an authority pursuant to Section 64210.(h)Public financing authority has the same meaning as provided in Section 53398.51.2.Formation and Powers of an Authority64210.(a)Any two or more local agencies may, pursuant to the joint powers law, establish an authority, separate from the parties to the agreement, for the purpose, in addition to any other purpose permitted under the joint powers law, of establishing an infrastructure fund and financing port infrastructure pursuant to this title.(b)An authority may be formed as a nonprofit public benefit corporation subject to the Nonprofit Corporation Law (Division 2 (commencing with Section 5000) of Title 1 of the Corporations Code), for the purpose of establishing an infrastructure fund and financing port or infrastructure pursuant to this title. (c)An authority may include land that has been designated as part of a foreign trade zone as authorized by Section 6304. In this case, the governing body of the foreign trade zone may, to the extent not otherwise prohibited, partner with the authority on issues of mutual interest.64211.An authority established pursuant to Section 64210 shall deposit into an infrastructure fund to be established by the authority both of the following:(a)Any federal, state, or private grants received by the authority directly or by assignment or other transfer from the state, any member, or any other public body.(b)Any other money of, or received by, the authority, which the authority determines to deposit in the infrastructure fund.64212.An authority may establish one or more subaccounts within the infrastructure fund, and may treat each subaccount as separate and distinct. Money in the infrastructure fund may be invested in any instrument permitted by Section 53601. However, any money in any subaccount which is separately pledged to secure or pay bonds may be invested in, or may be limited to investments in, any instrument permitted by the resolution or indenture providing for the issuance of the bonds. Any investment income earned on the investment of money in an infrastructure fund shall be credited to the infrastructure fund unless, and to the extent that, federal or state law or agreement, pursuant to which moneys were deposited into the fund, requires otherwise. Any income earned on the investment of money in any subaccount shall be credited to the subaccount unless, and to the extent that, the authority establishing the fund determines otherwise.64213.Subject to the terms and conditions determined by an authority that establishes an infrastructure fund, including, but not limited to, any terms and conditions related to interest rates, payment, prepayment, pledges, security, or remedy for defaults, the funds in an infrastructure fund, or any subaccount therein, may be used for one or more of the following purposes:(a)To make loans to, or to enter into an installment sale or other agreement with, any member or other port authority for the purpose of financing or refinancing port infrastructure.(b)To purchase, refinance, or restructure bonds issued by any member or other port authority in whole or in part to finance or refinance port infrastructure.(c)To secure or guarantee, or to purchase, pay for, or reimburse any guaranty, insurance, or other credit enhancement of, any bonds issued by the authority, any member, or other port authority, if the bonds were issued in whole or in part to finance or refinance port infrastructure.(d)To pay the costs of administering the infrastructure fund or the authority, including any costs of issuance of bonds issued by the authority to finance or refinance port infrastructure. 64214.In addition to any purpose authorized under the joint powers law for which bonds may be issued, an authority may issue bonds in the manner set forth in Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1, to finance or refinance port infrastructure or to make deposits into the infrastructure fund or any subaccount thereof, except that a nonprofit public benefit corporation may issue bonds only to the extent authorized by a joint powers agreement. 64215.Exclusively for purposes of securing the financing of port infrastructure, any local agency may borrow funds from, or otherwise secure financing through, an authority at the interest rate or rates, with the maturity date or dates, payment, pledge, security, default, remedy, and other terms and conditions specified in bonds of the local agency or obtain a loan, loan purchase, installment purchase, lease, or other agreement between the authority and the local agency. The local agency also may enter into any agreement for liquidity or credit enhancement that may be necessary or appropriate, as determined by the authority and consistent with other provisions of law, in connection with the borrowing or loan. This section provides a complete, additional, and alternative method for performing the acts authorized by this section.64216.(a)Subject to subdivision (a) of Section 64217, port infrastructure may be privately operated. Privately owned port infrastructure may be eligible in whole or in part for financing or other support or subsidy from money deposited in the infrastructure fund pursuant to subdivision (a) of Section 64211.(b)If port infrastructure financed wholly or partly with public funds is privately owned and if the use of the port infrastructure changes so as to be incompatible with the purposes for which the funds were provided, the private owner shall pay the public agency the percentage of the full appreciated value of the port infrastructure that was originally financed with public funds.(c)Port infrastructure may be located within, partly within and partly outside, or outside the boundaries of a port authority. Port infrastructure may include infrastructure located in a foreign trade zone within 60 miles of the port.64217.(a)Before public funds are allocated pursuant to this title for privately owned port infrastructure, as specified in Section 64216, approval of the Treasurer is required.(b)Each authority shall submit an annual report regarding receipts and expenditures from the infrastructure fund and all financing activities to the Controller.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)(A)Port facilities including airports, inland ports, 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.
(B)For purposes of this paragraph, an inland port means a logistical hub that is located on a site separate from land, air, and coastal ports of entry and that is designed to facilitate and process international and domestic trade, including, but not limited to, multimodal transportation assets and goods movement value added facilities and services.
(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.Title 6.9 (commencing with Section 64200) is added to the Government Code, to read:6.9.INLAND PORT INFRASTRUCTUREFINANCING DEVELOPMENT AND MANAGEMENT ACT1.Findings and Definitions1.Legislative Findings64200.This act shall be known as, and may be cited as, the Inland Port Infrastructure Financing Development and Management Act.
64201.The Legislature finds and declares all of the following:
(a)The state has a compelling interest in the success of its inland ports because, as in the case of sea ports and harbors, they provide significant economic benefit to the state in terms of jobs, personal income, business revenue, and taxes. It is the policy of the state that, because of that compelling interest, legislation in this area is a matter of statewide concern and is necessary to develop the inland ports of this state for the benefit of the people.
(b)Inland ports, and sea ports and harbors, are the vital interface between California and the United States and the states important trade partners in North and South America, the Pacific Rim countries, and other regions of the world.
(c)In addition to inland port access transportation projects, there is a need for new facilities and infrastructure investments that will enhance Californias competitiveness for international and domestic cargoes, grow employment, yield significant economic development, increase state and local tax revenues, and reduce impacts to environmental quality from goods movement.
(d)Californias long-term success is dependent on the ability to reimage a state freight movement system that connects, offers economical options, and is adapting to changing needs. Using an expanded inland port concept incorporates the idea that some facilities at traditional maritime ports could be duplicated or complemented at inland locations. In this way, inland ports can promote and disburse economic development and provide for higher levels of logistical integration while reducing the demands on limited capacity at air and sea ports.
(e)A further benefit of inland ports is to relieve congestion at land and sea ports. Once goods are received at the inland port, further inspection can occur or the goods can be transferred to a different transportation mode, stored for future distribution, or assembled into other products. This consolidation of services provides value-adding activities, allowing for less congestion and fewer delays at border points of entry. Consolidated services offer inland ports unique and high-value opportunities attractive to quality shippers and logistical managers.
(f)It is the intent of the Legislature to assist in the reduction of local borrowing costs, help accelerate the construction, repair, and maintenance of inland port capital improvements, and promote greater use of existing and new financial instruments and mechanisms. development of a statewide inland port system that supports, leverages, enhances, and links resources, manufacturing, warehousing, distribution centers, and airports, seaports, and land ports of entry. In achieving this interconnected and more efficient economic development network, Californias public and private sectors will benefit from a reduction of borrowing costs and accelerated timeframes for adopting innovative and lower carbon-emitting technologies and processes.
2.Definitions64203.The definitions in this article govern the construction of this title:
(a)Authority means a joint powers entity or nonprofit public benefit corporation created in accordance with Section 64210.
(b)Bonds means bonds, notes, bond anticipation notes, commercial paper, or other evidences of indebtedness or lease, installment sale, or other agreements or certificates of participation therein.
(c)Infrastructure fund means a port infrastructure fund established by an authority pursuant to Section 64211.
(d)Inland port means a logistical hub that is located on a site separate from land, air, and coastal ports of entry and that is designed to facilitate and process international and domestic trade, including, but not limited to, multimodal transportation assets and goods movement value added facilities and services.
(e)Inland port infrastructure means any of the following, if its primary or predominant use is of direct benefit to the port:
(1)Streets, roads, highways, bridges, sidewalks, curbs, gutters, tunnels, subways, alleyways, viaducts, pipelines, rail lines, or other facilities for the transportation or movement of people, vehicles, equipment, or goods.
(2)Piers, platforms, decks, cranes, or other facilities for loading or unloading of cargo or passengers.
(3)Lands, easements, port access routes, rights-of-way, dredge disposal sites, safety zones, levees, or walls of rock or other material to protect property or traffic.
(4)Parking, warehouse, or storage facilities.
(5)Parks, recreation, or open-space facilities.
(6)Remediation or any capital improvement that improves environmental quality.
(7)Water, wastewater, drainage, electric, or telecommunication systems or facilities.
(8)Buildings, structures, facilities, improvements, or equipment necessary or convenient to any of paragraphs (1) to (7), inclusive, or to the operation of a port.
(9)Public improvements authorized pursuant to the Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code), the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), and the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5).
(f)Joint powers law means Chapter 5 (commencing with Section 6500) of Division 7 of Title 1.
(g)Member means any agency that is party to an agreement establishing an authority pursuant to Section 64210.
(h)Public financing authority has the same meaning as provided in Section 53398.51.
2.Formation and Powers of an Authority64210.(a)Any two or more local agencies may, pursuant to the joint powers law, establish an authority, separate from the parties to the agreement, for the purpose, in addition to any other purpose permitted under the joint powers law, of establishing an infrastructure fund and financing port infrastructure pursuant to this title.
(b)An authority may be formed as a nonprofit public benefit corporation subject to the Nonprofit Corporation Law (Division 2 (commencing with Section 5000) of Title 1 of the Corporations Code), for the purpose of establishing an infrastructure fund and financing port or infrastructure pursuant to this title.
(c)An authority may include land that has been designated as part of a foreign trade zone as authorized by Section 6304. In this case, the governing body of the foreign trade zone may, to the extent not otherwise prohibited, partner with the authority on issues of mutual interest.
64211.An authority established pursuant to Section 64210 shall deposit into an infrastructure fund to be established by the authority both of the following:
(a)Any federal, state, or private grants received by the authority directly or by assignment or other transfer from the state, any member, or any other public body.
(b)Any other money of, or received by, the authority, which the authority determines to deposit in the infrastructure fund.
64212.An authority may establish one or more subaccounts within the infrastructure fund, and may treat each subaccount as separate and distinct. Money in the infrastructure fund may be invested in any instrument permitted by Section 53601. However, any money in any subaccount which is separately pledged to secure or pay bonds may be invested in, or may be limited to investments in, any instrument permitted by the resolution or indenture providing for the issuance of the bonds. Any investment income earned on the investment of money in an infrastructure fund shall be credited to the infrastructure fund unless, and to the extent that, federal or state law or agreement, pursuant to which moneys were deposited into the fund, requires otherwise. Any income earned on the investment of money in any subaccount shall be credited to the subaccount unless, and to the extent that, the authority establishing the fund determines otherwise.
64213.Subject to the terms and conditions determined by an authority that establishes an infrastructure fund, including, but not limited to, any terms and conditions related to interest rates, payment, prepayment, pledges, security, or remedy for defaults, the funds in an infrastructure fund, or any subaccount therein, may be used for one or more of the following purposes:
(a)To make loans to, or to enter into an installment sale or other agreement with, any member or other port authority for the purpose of financing or refinancing port infrastructure.
(b)To purchase, refinance, or restructure bonds issued by any member or other port authority in whole or in part to finance or refinance port infrastructure.
(c)To secure or guarantee, or to purchase, pay for, or reimburse any guaranty, insurance, or other credit enhancement of, any bonds issued by the authority, any member, or other port authority, if the bonds were issued in whole or in part to finance or refinance port infrastructure.
(d)To pay the costs of administering the infrastructure fund or the authority, including any costs of issuance of bonds issued by the authority to finance or refinance port infrastructure.
64214.In addition to any purpose authorized under the joint powers law for which bonds may be issued, an authority may issue bonds in the manner set forth in Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1, to finance or refinance port infrastructure or to make deposits into the infrastructure fund or any subaccount thereof, except that a nonprofit public benefit corporation may issue bonds only to the extent authorized by a joint powers agreement.
64215.Exclusively for purposes of securing the financing of port infrastructure, any local agency may borrow funds from, or otherwise secure financing through, an authority at the interest rate or rates, with the maturity date or dates, payment, pledge, security, default, remedy, and other terms and conditions specified in bonds of the local agency or obtain a loan, loan purchase, installment purchase, lease, or other agreement between the authority and the local agency. The local agency also may enter into any agreement for liquidity or credit enhancement that may be necessary or appropriate, as determined by the authority and consistent with other provisions of law, in connection with the borrowing or loan. This section provides a complete, additional, and alternative method for performing the acts authorized by this section.
64216.(a)Subject to subdivision (a) of Section 64217, port infrastructure may be privately operated. Privately owned port infrastructure may be eligible in whole or in part for financing or other support or subsidy from money deposited in the infrastructure fund pursuant to subdivision (a) of Section 64211.
(b)If port infrastructure financed wholly or partly with public funds is privately owned and if the use of the port infrastructure changes so as to be incompatible with the purposes for which the funds were provided, the private owner shall pay the public agency the percentage of the full appreciated value of the port infrastructure that was originally financed with public funds.
(c)Port infrastructure may be located within, partly within and partly outside, or outside the boundaries of a port authority. Port infrastructure may include infrastructure located in a foreign trade zone within 60 miles of the port.
64217.(a)Before public funds are allocated pursuant to this title for privately owned port infrastructure, as specified in Section 64216, approval of the Treasurer is required.
(b)Each authority shall submit an annual report regarding receipts and expenditures from the infrastructure fund and all financing activities to the Controller.
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)(A)Port facilities including airports, inland ports, 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.
(B)For purposes of this paragraph, an inland port means a logistical hub that is located on a site separate from land, air, and coastal ports of entry and that is designed to facilitate and process international and domestic trade, including, but not limited to, multimodal transportation assets and goods movement value added facilities and services.
(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.Title 6.9 (commencing with Section 64200) is added to the Government Code, to read:6.9.LAND INLAND PORT INFRASTRUCTURE FINANCING ACT1.Findings and Definitions1.Legislative Findings64200.This act shall be known as, and may be cited as, the Land Inland Port Infrastructure Financing Act.
64201.The Legislature finds and declares all of the following:
(a)The state has a compelling interest in the success of its land inland ports because, as in the case of sea ports and harbors, they provide significant economic benefit to the state in terms of jobs, personal income, business revenue, and taxes. It is the policy of the state that, because of that compelling interest, legislation in this area is a matter of statewide concern and is necessary to develop the land inland ports of this state for the benefit of the people.
(b)Land Inland ports, and sea ports and harbors, are the vital interface between California and its the United States and the states important trade partners in North and South America, the Pacific Rim countries, and other regions of the world.
(c)In addition to land inland port access transportation projects, there is a need for new facilities and infrastructure investments that will enhance Californias competitiveness for international and domestic cargoes, grow employment, yield significant economic development, increase state and local tax revenues, and reduce impacts to environmental quality from goods movement.
(d)Californias long-term success is dependent on the ability to reimage a state freight movement system that connects, offers economical options, and is adapting to changing needs. Using an expanded inland port concept incorporates the idea that some facilities at traditional maritime ports could be duplicated or complemented at inland locations. In this way, inland ports can promote and disburse economic development and provide for higher levels of logistical integration while reducing the demands on limited capacity at air and sea ports.
(e)A further benefit of inland ports is to relieve congestion at land and sea ports. Once goods are received at the inland port, further inspection can occur or the goods can be transferred to a different transportation mode, stored for future distribution, or assembled into other products. This consolidation of services provides value-adding activities, allowing for less congestion and fewer delays at border points of entry. Consolidated services offer inland ports unique and high-value opportunities attractive to quality shippers and logistical managers.
(d)(f)It is the intent of the Legislature to assist in the reduction of local borrowing costs, help accelerate the construction, repair, and maintenance of land inland port capital improvements, and promote greater use of existing and new financial instruments and mechanisms.
2.Definitions64203.The definitions in this article govern the construction of this title:
(a)Authority means a joint powers entity or nonprofit public benefit corporation created in accordance with Section 64210.
(b)Bonds means bonds, notes, bond anticipation notes, commercial paper, or other evidences of indebtedness or lease, installment sale, or other agreements or certificates of participation therein.
(c)Infrastructure fund means a port infrastructure fund established by an authority pursuant to Section 64211.
(d)Inland port means a logistical hub that is located on a site separate from land, air, and coastal ports of entry and that is designed to facilitate and process international and domestic trade, including, but not limited to, multimodal transportation assets and goods movement value added facilities and services.
(e)Inland port infrastructure means any of the following, if its primary or predominant use is of direct benefit to the port:
(1)Streets, roads, highways, bridges, sidewalks, curbs, gutters, tunnels, subways, alleyways, viaducts, pipelines, rail lines, or other facilities for the transportation or movement of people, vehicles, equipment, or goods.
(2)Piers, platforms, decks, cranes, or other facilities for loading or unloading of cargo or passengers.
(3)Lands, easements, port access routes, rights-of-way, dredge disposal sites, safety zones, levees, or walls of rock or other material to protect property or traffic.
(4)Parking, warehouse, or storage facilities.
(5)Parks, recreation, or open-space facilities.
(6)Remediation or any capital improvement that improves environmental quality.
(7)Water, wastewater, drainage, electric, or telecommunication systems or facilities.
(8)Buildings, structures, facilities, improvements, or equipment necessary or convenient to any of paragraphs (1) to (7), inclusive, or to the operation of a port.
(9)Public improvements authorized pursuant to the Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code), the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), and the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5).
(d)(f)Joint powers law means Chapter 5 (commencing with Section 6500) of Division 7 of Title 1.
(e)(g)Member means any agency that is party to an agreement establishing an authority pursuant to Section 64210.
(f)Land port infrastructure means any of the following, if its primary or predominant use is of direct benefit to the port:(1)Streets, roads, highways, bridges, sidewalks, curbs, gutters, tunnels, subways, alleyways, viaducts, pipelines, rail lines, or other facilities for the transportation or movement of people, vehicles, equipment, or goods.(2)Piers, platforms, decks, cranes, or other facilities for loading or unloading of cargo or passengers.(3)Lands, easements, port access routes, rights-of-way, dredge disposal sites, safety zones, levees, or walls of rock or other material to protect property or traffic.(4)Parking, warehouse, or storage facilities.(5)Parks, recreation, or open-space facilities.(6)Remediation or any capital improvement that improves environmental quality.(7)Water, wastewater, drainage, electric, or telecommunication systems or facilities.(8)Buildings, structures, facilities, improvements, or equipment necessary or convenient to any of paragraphs (1) to (7), inclusive, or to the operation of a port.(9)Public improvements authorized pursuant to the Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code), the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), and the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5).(g)Land port infrastructure financing district means an enhanced infrastructure financing district that finances port infrastructure created in accordance with Chapter 3 (commencing with Section 64220) and Chapter 2.99 (commencing with Section 53398.50) of Part 1 of Division 2 of Title 5.(h)Public financing authority has the same meaning as provided in Section 53398.51.
2.Formation and Powers of an Authority64210.(a)Any two or more local agencies may, pursuant to the joint powers law, establish an authority, separate from the parties to the agreement, for the purpose, in addition to any other purpose permitted under the joint powers law, of establishing an infrastructure fund and financing port infrastructure pursuant to this title.
(b)An authority may be formed as a nonprofit public benefit corporation subject to the Nonprofit Corporation Law (Division 2 (commencing with Section 5000) of Title 1 of the Corporations Code), for the purpose of establishing an infrastructure fund and financing port or infrastructure pursuant to this title.
64211.An authority established pursuant to Section 64210 shall deposit into an infrastructure fund to be established by the authority both of the following:
(a)Any federal, state, or private grants received by the authority directly or by assignment or other transfer from the state, any member, or any other public body.
(b)Any other money of, or received by, the authority, which the authority determines to deposit in the infrastructure fund.
64212.An authority may establish one or more subaccounts within the infrastructure fund, and may treat each subaccount as separate and distinct. Money in the infrastructure fund may be invested in any instrument permitted by Section 53601 of the Government Code. 53601. However, any money in any subaccount which is separately pledged to secure or pay bonds may be invested in, or may be limited to investments in, any instrument permitted by the resolution or indenture providing for the issuance of the bonds. Any investment income earned on the investment of money in an infrastructure fund shall be credited to the infrastructure fund unless, and to the extent that, federal or state law or agreement, pursuant to which moneys were deposited into the fund, requires otherwise. Any income earned on the investment of money in any subaccount shall be credited to the subaccount unless, and to the extent that, the authority establishing the fund determines otherwise.
64213.Subject to the terms and conditions determined by an authority that establishes an infrastructure fund, including, but not limited to, any terms and conditions related to interest rates, payment, prepayment, pledges, security, or remedy for defaults, the funds in an infrastructure fund, or any subaccount therein, may be used for one or more of the following purposes:
(a)To make loans to, or to enter into an installment sale or other agreement with, any member or other port authority for the purpose of financing or refinancing port infrastructure.
(b)To purchase, refinance, or restructure bonds issued by any member or other port authority in whole or in part to finance or refinance port infrastructure.
(c)To secure or guarantee, or to purchase, pay for, or reimburse any guaranty, insurance, or other credit enhancement of, any bonds issued by the authority, any member, or other port authority, if the bonds were issued in whole or in part to finance or refinance port infrastructure.
(d)To pay the costs of administering the infrastructure fund or the authority, including any costs of issuance of bonds issued by the authority to finance or refinance port infrastructure.
64214.In addition to any purpose authorized under the joint powers law for which bonds may be issued, an authority may issue bonds in the manner set forth in Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1, to finance or refinance port infrastructure or to make deposits into the infrastructure fund or any subaccount thereof, except that a nonprofit public benefit corporation may issue bonds only to the extent authorized by a joint powers agreement.
64215.Exclusively for purposes of securing the financing of port infrastructure, any local agency may borrow funds from, or otherwise secure financing through, an authority at the interest rate or rates, with the maturity date or dates, payment, pledge, security, default, remedy, and other terms and conditions specified in bonds of the local agency or obtain a loan, loan purchase, installment purchase, lease, or other agreement between the authority and the local agency. The local agency also may enter into any agreement for liquidity or credit enhancement that may be necessary or appropriate, as determined by the authority and consistent with other provisions of law, in connection with the borrowing or loan. This section provides a complete, additional, and alternative method for performing the acts authorized by this section.
64216.(a)Subject to subdivision (a) of Section 64217, port infrastructure may be privately operated. Privately owned port infrastructure may be eligible in whole or in part for financing or other support or subsidy from money deposited in the infrastructure fund pursuant to subdivision (a) of Section 64211.
(b)If port infrastructure financed wholly or partly with public funds is privately owned and if the use of the port infrastructure changes so as to be incompatible with the purposes for which the funds were provided, the private owner shall pay the public agency the percentage of the full appreciated value of the port infrastructure that was originally financed with public funds.
(c)Port infrastructure may be located within, partly within and partly outside, or outside the boundaries of a port authority. Port infrastructure may include infrastructure located in a foreign trade zone within 60 miles of the port.
64217.(a)Before public funds are allocated pursuant to this title for privately owned port infrastructure, as specified in Section 64216, approval of the Treasurer is required.
(b)Each authority shall submit an annual report regarding receipts and expenditures from the infrastructure fund and all financing activities to the Controller and to the California Debt and Investment Advisory Commission. Controller.
3.Land Port Infrastructure Financing Districts64220.The Legislature finds and declares both of the following:(a)In addition to the findings and declarations in Section 53398.50, the ability to capture property tax increment revenues to finance needed land port infrastructure projects will provide direct benefits to the state.(b)A land port or its operation frequently generates large local tax benefits directly as a result of the possessory interest taxes paid on the value of leased land port real property.64221.When designated by the legislative body pursuant to Section 53398.62, the local agency shall prepare a proposed infrastructure financing plan, as provided in Section 53398.63, for a land port infrastructure financing district covering port infrastructure.64222.(a)Upon receipt of a resolution from the public financing authority promulgated under subdivision (a) of Section 53398.80.5, the local agency shall have 60 days to consider the proposal. During this time, the local agencys governing body shall act at a duly noticed meeting to either vote to give preliminary approval of the proposal, subject to the provisions of this section, or disapprove the proposal and return it to the public financing authority.(b)A local agency may give preliminary approval under this section only if it makes all of the following affirmative findings:(1)The local agency has prepared an infrastructure financing plan.(2)The improvements to the local agencys property to be financed through the proceeds of a land port infrastructure financing district are solely for the support of land port infrastructure.(3)All publicly owned property that is leased to private parties within the boundaries of the land port infrastructure financing district has been reported by the local agency to the local county assessor to facilitate possessory interest taxation.(c)(1) The local agency shall not grant preliminary approval under this section unless both of the following apply:(A)The land port infrastructure financing district will operate independently of any other prior or concurrent agreements between the local agency and the public financing authority, or the local governments that make up the public financing authority.(B)No transfers of funds or obligations, or future transfers of funds or obligations contingent on the approval of the land port infrastructure financing district, its financing, or projects within the district, are created between the local agency and the public financing authority, or the local governments that make up the public financing authority.(2)For purposes of this subdivision, transfers of funds or obligations includes any direct or indirect transfer of local agency land port resources to the public financing authority, or the local governments that make up the public financing authority, except for any of the following if agreed to between the local agency and the public financing authority in writing:(A)Local agency reimbursements of a public financing authority for its direct administrative costs of establishing the land port infrastructure financing district.(B)Public financing authority expenses for underwriting the bond issuance for the identified projects in the land port infrastructure financing district.(C)Any other administrative expenses or direct operating expenses that are incurred as the direct result of creating the land port infrastructure financing district that are identified by both parties at the time of preliminary local agency approval and in advance of the expense being incurred by the public financing authority.64223.(a)Except as provided in subdivision (b), Chapter 2.99 (commencing with Section 53398.50) of Part 1 of Division 2 of Title 5 shall apply to this chapter.(b)To the extent that any provision of this chapter conflicts with any provision of Chapter 2.99 (commencing with Section 53398.50) of Part 1 of Division 2 of Title 5 with respect to a land port infrastructure financing district, this chapter shall prevail.(a)(1)A district may finance any of the following:
(A)The purchase, construction, expansion, improvement, seismic retrofit, or rehabilitation of any real or other tangible property with an estimated useful life of 15 years or longer that satisfies the requirements of subdivision (b).
(B)The planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of property.
(C)The costs described in Sections 53398.56 and 53398.57.
(2)The facilities are not required to be physically located within the boundaries of the district. However, any facilities financed outside of a district shall have a tangible connection to the work of the district, as detailed in the infrastructure financing plan adopted pursuant to Section 53398.69.
(3)A district shall not finance routine maintenance, repair work, or the costs of an ongoing operation or providing services of any kind.
(b)The district shall finance only public capital facilities or other specified projects of communitywide significance that provide significant benefits to the district or the surrounding community, including, but not limited to, all of the following:
(1)Highways, interchanges, ramps and bridges, arterial streets, parking facilities, and transit facilities.
(2)Sewage treatment and water reclamation plants and interceptor pipes.
(3)Facilities for the collection and treatment of water for urban uses.
(4)Flood control levees and dams, retention basins, and drainage channels.
(5)Child care facilities.
(6)Libraries.
(7)Parks, recreational facilities, and open space.
(8)Facilities for the transfer and disposal of solid waste, including transfer stations and vehicles.
(9)Brownfield restoration and other environmental mitigation.
(10)The development of projects on a former military base, provided that the projects are consistent with the military base authority reuse plan and are approved by the military base reuse authority, if applicable.
(11)The repayment of the transfer of funds to a military base reuse authority pursuant to Section 67851 that occurred on or after the creation of the district.
(12)The acquisition, construction, or rehabilitation of housing for persons of very low, low, and moderate income, as defined in Sections 50105 and 50093 of the Health and Safety Code, for rent or purchase.
(13)Acquisition, construction, or repair of industrial structures for private use.
(14)Transit priority projects, as defined in Section 21155 of the Public Resources Code, that are located within a transit priority project area. For purposes of this paragraph, a transit priority project area may include a military base reuse plan that meets the definition of a transit priority project area and it may include a contaminated site within a transit priority project area.
(15)Projects that implement a sustainable communities strategy, when the State Air Resources Board, pursuant to Chapter 2.5 (commencing with Section 65080) of Division 1 of Title 7, has accepted a metropolitan planning organizations determination that the sustainable communities strategy or the alternative planning strategy would, if implemented, achieve the greenhouse gas emission reduction targets.
(16)Port or harbor infrastructure, as defined by Section 1698 of the Harbors and Navigation Code.
(17)Land port infrastructure, as defined by subdivision (f) of Section 64203.
(c)The district shall require, by recorded covenants or restrictions, that housing units built pursuant to this section shall remain available at affordable housing costs to, and occupied by, persons and families of very low, low-, or moderate-income households for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units.
(d)The district may finance mixed-income housing developments, but may finance only those units in such a development that are restricted to occupancy by persons of very low, low, or moderate incomes as defined in Sections 50105 and 50093 of the Health and Safety Code, and those onsite facilities for child care, after school care, and social services that are integrally linked to the tenants of the restricted units.
(e)A district may utilize any powers under either the Polanco Redevelopment Act (Article 12.5 (commencing with Section 33459) of Chapter 4 of Part 1 of Division 24 of the Health and Safety Code) or Chapter 6.10 (commencing with Section 25403) of Division 20 of the Health and Safety Code, and finance any action necessary to implement that act.
SEC. 2.Title 6.9 (commencing with Section 64200) is added to the Government Code, to read:6.9.LAND PORT INFRASTRUCTURE FINANCING ACT1.Findings and Definitions1.Legislative Findings64200.This act shall be known as, and may be cited as, the Land Port Infrastructure Financing Act.
64201.The Legislature finds and declares all of the following:
(a)The state has a compelling interest in the success of its land ports because, as in the case of sea ports and harbors, they provide significant economic benefit to the state in terms of jobs, personal income, business revenue, and taxes. It is the policy of the state that, because of that compelling interest, legislation in this area is a matter of statewide concern and is necessary to develop the land ports of this state for the benefit of the people.
(b)Land ports, and sea ports and harbors, are the vital interface between California and its important trade partners in North and South America, the Pacific Rim countries, and other regions of the world.
(c)In addition to land port access transportation projects, there is a need for new facilities and infrastructure investments that will enhance Californias competitiveness for international and domestic cargoes, grow employment, yield significant economic development, increase state and local tax revenues, and reduce impacts to environmental quality from goods movement.
(d)It is the intent of the Legislature to assist in the reduction of local borrowing costs, help accelerate the construction, repair, and maintenance of land port capital improvements, and promote greater use of existing and new financial instruments and mechanisms.
2.Definitions64203.The definitions in this article govern the construction of this title:
(a)Authority means a joint powers entity or nonprofit public benefit corporation created in accordance with Section 64210.
(b)Bonds means bonds, notes, bond anticipation notes, commercial paper, or other evidences of indebtedness or lease, installment sale, or other agreements or certificates of participation therein.
(c)Infrastructure fund means a port infrastructure fund established by an authority pursuant to Section 64211.
(d)Joint powers law means Chapter 5 (commencing with Section 6500) of Division 7 of Title 1.
(e)Member means any agency that is party to an agreement establishing an authority pursuant to Section 64210.
(f)Land port infrastructure means any of the following, if its primary or predominant use is of direct benefit to the port:
(1)Streets, roads, highways, bridges, sidewalks, curbs, gutters, tunnels, subways, alleyways, viaducts, pipelines, rail lines, or other facilities for the transportation or movement of people, vehicles, equipment, or goods.
(2)Piers, platforms, decks, cranes, or other facilities for loading or unloading of cargo or passengers.
(3)Lands, easements, port access routes, rights-of-way, dredge disposal sites, safety zones, levees, or walls of rock or other material to protect property or traffic.
(4)Parking, warehouse, or storage facilities.
(5)Parks, recreation, or open-space facilities.
(6)Remediation or any capital improvement that improves environmental quality.
(7)Water, wastewater, drainage, electric, or telecommunication systems or facilities.
(8)Buildings, structures, facilities, improvements, or equipment necessary or convenient to any of paragraphs (1) to (7), inclusive, or to the operation of a port.
(9)Public improvements authorized pursuant to the Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code), the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), and the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5).
(g)Land port infrastructure financing district means an enhanced infrastructure financing district that finances port infrastructure created in accordance with Chapter 3 (commencing with Section 64220) and Chapter 2.99 (commencing with Section 53398.50) of Part 1 of Division 2 of Title 5.
(h)Public financing authority has the same meaning as provided in Section 53398.51.
2.Formation and Powers of an Authority64210.(a)Any two or more local agencies may, pursuant to the joint powers law, establish an authority, separate from the parties to the agreement, for the purpose, in addition to any other purpose permitted under the joint powers law, of establishing an infrastructure fund and financing port infrastructure pursuant to this title.
(b)An authority may be formed as a nonprofit public benefit corporation subject to the Nonprofit Corporation Law (Division 2 (commencing with Section 5000) of Title 1 of the Corporations Code), for the purpose of establishing an infrastructure fund and financing port or infrastructure pursuant to this title.
64211.An authority established pursuant to Section 64210 shall deposit into an infrastructure fund to be established by the authority both of the following:
(a)Any federal, state, or private grants received by the authority directly or by assignment or other transfer from the state, any member, or any other public body.
(b)Any other money of, or received by, the authority, which the authority determines to deposit in the infrastructure fund.
64212.An authority may establish one or more subaccounts within the infrastructure fund, and may treat each subaccount as separate and distinct. Money in the infrastructure fund may be invested in any instrument permitted by Section 53601 of the Government Code. However, any money in any subaccount which is separately pledged to secure or pay bonds may be invested in, or may be limited to investments in, any instrument permitted by the resolution or indenture providing for the issuance of the bonds. Any investment income earned on the investment of money in an infrastructure fund shall be credited to the infrastructure fund unless, and to the extent that, federal or state law or agreement, pursuant to which moneys were deposited into the fund, requires otherwise. Any income earned on the investment of money in any subaccount shall be credited to the subaccount unless, and to the extent that, the authority establishing the fund determines otherwise.
64213.Subject to the terms and conditions determined by an authority that establishes an infrastructure fund, including, but not limited to, any terms and conditions related to interest rates, payment, prepayment, pledges, security, or remedy for defaults, the funds in an infrastructure fund, or any subaccount therein, may be used for one or more of the following purposes:
(a)To make loans to, or to enter into an installment sale or other agreement with, any member or other port authority for the purpose of financing or refinancing port infrastructure.
(b)To purchase, refinance, or restructure bonds issued by any member or other port authority in whole or in part to finance or refinance port infrastructure.
(c)To secure or guarantee, or to purchase, pay for, or reimburse any guaranty, insurance, or other credit enhancement of, any bonds issued by the authority, any member, or other port authority, if the bonds were issued in whole or in part to finance or refinance port infrastructure.
(d)To pay the costs of administering the infrastructure fund or the authority, including any costs of issuance of bonds issued by the authority to finance or refinance port infrastructure.
64214.In addition to any purpose authorized under the joint powers law for which bonds may be issued, an authority may issue bonds in the manner set forth in Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1, to finance or refinance port infrastructure or to make deposits into the infrastructure fund or any subaccount thereof, except that a nonprofit public benefit corporation may issue bonds only to the extent authorized by a joint powers agreement.
64215.Exclusively for purposes of securing the financing of port infrastructure, any local agency may borrow funds from, or otherwise secure financing through, an authority at the interest rate or rates, with the maturity date or dates, payment, pledge, security, default, remedy, and other terms and conditions specified in bonds of the local agency or obtain a loan, loan purchase, installment purchase, lease, or other agreement between the authority and the local agency. The local agency also may enter into any agreement for liquidity or credit enhancement that may be necessary or appropriate, as determined by the authority and consistent with other provisions of law, in connection with the borrowing or loan. This section provides a complete, additional, and alternative method for performing the acts authorized by this section.
64216.(a)Subject to subdivision (a) of Section 64217, port infrastructure may be privately operated. Privately owned port infrastructure may be eligible in whole or in part for financing or other support or subsidy from money deposited in the infrastructure fund pursuant to subdivision (a) of Section 64211.
(b)If port infrastructure financed wholly or partly with public funds is privately owned and if the use of the port infrastructure changes so as to be incompatible with the purposes for which the funds were provided, the private owner shall pay the public agency the percentage of the full appreciated value of the port infrastructure that was originally financed with public funds.
(c)Port infrastructure may be located within, partly within and partly outside, or outside the boundaries of a port authority.
64217.(a)Before public funds are allocated pursuant to this title for privately owned port infrastructure, as specified in Section 64216, approval of the Treasurer is required.
(b)Each authority shall submit an annual report regarding receipts and expenditures from the infrastructure fund and all financing activities to the Controller and to the California Debt and Investment Advisory Commission.
3.Land Port Infrastructure Financing Districts64220.The Legislature finds and declares both of the following:
(a)In addition to the findings and declarations in Section 53398.50, the ability to capture property tax increment revenues to finance needed land port infrastructure projects will provide direct benefits to the state.
(b)A land port or its operation frequently generates large local tax benefits directly as a result of the possessory interest taxes paid on the value of leased land port real property.
64221.When designated by the legislative body pursuant to Section 53398.62, the local agency shall prepare a proposed infrastructure financing plan, as provided in Section 53398.63, for a land port infrastructure financing district covering port infrastructure.
64222.(a)Upon receipt of a resolution from the public financing authority promulgated under subdivision (a) of Section 53398.80.5, the local agency shall have 60 days to consider the proposal. During this time, the local agencys governing body shall act at a duly noticed meeting to either vote to give preliminary approval of the proposal, subject to the provisions of this section, or disapprove the proposal and return it to the public financing authority.
(b)A local agency may give preliminary approval under this section only if it makes all of the following affirmative findings:
(1)The local agency has prepared an infrastructure financing plan.
(2)The improvements to the local agencys property to be financed through the proceeds of a land port infrastructure financing district are solely for the support of land port infrastructure.
(3)All publicly owned property that is leased to private parties within the boundaries of the land port infrastructure financing district has been reported by the local agency to the local county assessor to facilitate possessory interest taxation.
(c)(1) The local agency shall not grant preliminary approval under this section unless both of the following apply:
(A)The land port infrastructure financing district will operate independently of any other prior or concurrent agreements between the local agency and the public financing authority, or the local governments that make up the public financing authority.
(B)No transfers of funds or obligations, or future transfers of funds or obligations contingent on the approval of the land port infrastructure financing district, its financing, or projects within the district, are created between the local agency and the public financing authority, or the local governments that make up the public financing authority.
(2)For purposes of this subdivision, transfers of funds or obligations includes any direct or indirect transfer of local agency land port resources to the public financing authority, or the local governments that make up the public financing authority, except for any of the following if agreed to between the local agency and the public financing authority in writing:
(A)Local agency reimbursements of a public financing authority for its direct administrative costs of establishing the land port infrastructure financing district.
(B)Public financing authority expenses for underwriting the bond issuance for the identified projects in the land port infrastructure financing district.
(C)Any other administrative expenses or direct operating expenses that are incurred as the direct result of creating the land port infrastructure financing district that are identified by both parties at the time of preliminary local agency approval and in advance of the expense being incurred by the public financing authority.
64223.(a)Except as provided in subdivision (b), Chapter 2.99 (commencing with Section 53398.50) of Part 1 of Division 2 of Title 5 shall apply to this chapter.
(b)To the extent that any provision of this chapter conflicts with any provision of Chapter 2.99 (commencing with Section 53398.50) of Part 1 of Division 2 of Title 5 with respect to a land port infrastructure financing district, this chapter shall prevail.
|
Date
|
Status
|
|---|---|
| Sep 10, 2018 | Chaptered by Secretary of State - Chapter 313, Statutes of 2018. |
| Sep 10, 2018 | Approved by the Governor. |
| Sep 4, 2018 | Enrolled and presented to the Governor at 3 p.m. |
| Aug 27, 2018 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Aug 22, 2018 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 24 pursuant to Assembly Rule 77. |
| Aug 21, 2018 | Read third time. Passed. Ordered to the Assembly. |
| Aug 15, 2018 | Read second time. Ordered to third reading. |
| Aug 14, 2018 | From inactive file. |
| Jun 28, 2018 | Ordered to inactive file at the request of Senator Hill. |
| Jun 26, 2018 | Read second time. Ordered to third reading. |
| Jun 25, 2018 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8. |
| May 7, 2018 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (May 7). Re-referred to Com. on APPR. |
| Apr 30, 2018 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B., P. & E.D. |
| Apr 19, 2018 | Referred to Com. on B., P. & E.D. |
| Jan 29, 2018 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Jan 29, 2018 | Read third time. Passed. Ordered to the Senate. |
| Jan 22, 2018 | Read second time. Ordered to Consent Calendar. |
| Jan 18, 2018 | From committee: Do pass. To Consent Calendar. (Ayes 17. Noes 0.) (January 18). |
| Jan 12, 2018 | Re-referred to Com. on APPR. |
| Jan 11, 2018 | Read second time and amended. |
| Jan 10, 2018 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 6. Noes 0.) (January 9). |
| Jan 4, 2018 | From committee: Be re-referred to Com. on J., E.D., & E. Re-referred. (Ayes 9. Noes 0.) (January 4). Re-referred to Com. on J., E.D., & E. |
| Jan 3, 2018 | From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended. |
| Sep 12, 2017 | Re-referred to Com. on L. GOV. |
| Sep 11, 2017 | From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended. |
| Mar 21, 2017 | Re-referred to Com. on L. GOV. |
| Mar 20, 2017 | From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended. |
| Mar 16, 2017 | Referred to Com. on L. GOV. |
| Feb 19, 2017 | From printer. May be heard in committee March 21. |
| Feb 17, 2017 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 27, 2018 | AB 1561 QUIRK-SILVA Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Aug 21, 2018 | Assembly 3rd Reading AB1561 Quirk-Silva By Hueso | Senate Floor |
Passed |
|
| May 7, 2018 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Business, Professions and Economic Development |
Passed |
|
| Jan 29, 2018 | AB 1561 QUIRK-SILVA Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Jan 18, 2018 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jan 9, 2018 | Do pass as amended, and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Jobs, Economic Development, and the Economy |
Passed |
|
| Jan 4, 2018 | Be re-referred to the Committee on [Jobs, Economic Development, and the Economy] | Assembly Standing Committee on Rules |
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.
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 1561
Author:(Quirk-Silva)
As Amended Ver:August 14, 2018
Majority vote
ASSEMBLY: | 75-0 | (January 29, 2018) | SENATE: | 39-0 | (August 21, 2018) |
Original Committee Reference: J., E.D., & E.
SUMMARY: Expands and updates the mandatory elements of the state's international trade and investment strategy (ITI Strategy) to include the role of logistical hubs and inland ports and streamline reporting requirements. This bill also authorizes the California Infrastructure and Economic Development Bank (IBank) to finance inland port facilities.
The Senate amendments extend the deadline for the next update to the ITI Strategy by five months and remove a definition of "inland port" to be consistent with other IBank definitions.
EXISTING LAW requires the Governor's Office of Business and Economic Development (GO-Biz) to provide the Legislature with an ITI Strategy by February 2019 and update it at least once every five years. Among other items, the ITI Strategy is required to include the following:
- Policy, goals, objectives, and recommendations;
- Measurable outcomes and timelines for meeting the ITI Strategy goals, objectives, and actions;
- Identification of key stakeholder partnerships that will be used to implement the goals and objectives;
- Identification of impediments for achieving the goals and objectives;
- Identification of options for funding recommended actions; and
- Identification of an international trade and investment organizational structure.
FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS: International trade and foreign investment are very important components of California's $2.7 trillion economy supporting over four million California jobs. California's largest industry sector by employment is Trade, Transportation, and Utilities, which encompasses everything from major retail outlets, to import-export businesses, to transportation and warehousing.
Improving the linkages between the production and movement of goods is an important economic development priority for California. As the state's global markets evolve, new demands are being placed on the state logistical network. This bill updates the state core planning and financing mechanism to meet these demands. Of particular interest is the use of inland ports which have the potential to substantially reduce the severity of conflicts between freight and other land uses, including idling trucks and congested areas around ports.
The policy committee analysis includes information on the California trade-related economy, key elements of the state ITI Strategy, the rise of inland ports, and related legislation.
Inland Ports: Inland ports represent a relatively new concept within the United States logistical network and freight movement system, but their use is growing as demonstrated through the development of new facilities in Salt Lake City, Utah (UT); Dallas/Fort Worth, Texas (TX); and Cordele, Georgia (GA). Well designed and strategically placed inland ports can play a key role in enhancing the efficiency of a state's logistic network and serve as key nodes within expansive domestic and international supply chains.
As globalization provides new economic opportunities for ports and technology centers across the globe, California's long-term economic success may be dependent on the state's ability to reimagine a state manufacturing and freight movement system that connects resources to production, and products to consumers, with economical options that are able to adapt to evolving market needs.
Developing inland ports as part of the state's logistical network complements existing business and goods movement resources, while also offering new options for relieving congestion at ports of entry, improving air quality, and reducing greenhouse gas emissions.
Further, inland ports can promote and disburse economic benefits throughout the state, including communities historically overlooked that have large underutilized tracts of land and/or other economic resources.
Analysis Prepared by: Toni Symonds / J., E.D., & E. / (916) 319-2090 FN: 0004052
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 1561
:
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 8-0, 5/7/18
AYES: Hill, Fuller, Dodd, Galgiani, Glazer, Hernandez, Newman, Pan
NO VOTE RECORDED: Wilk
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 75-0, 1/29/18 (Consent) - See last page for vote
DIGEST:
This bill requires the international trade and investment strategy (ITI Strategy) prepared by the Governor’s Office of Business and Economic Development (GO-Biz) to identify the process GO-Biz will use for ongoing evaluation of needs, including logistic hubs.
Senate Floor Amendments of 8/14/18 remove the definition of “inland port” for the purposes of the definition of “port facilities.”
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. (Government Code (GC) §§ 12096 – 12098.5)
- Specifies that GO-Biz is the primary state agency authorized to attract foreign investments, cooperate in international public infrastructure projects, and support California businesses in accessing markets, and requires the Director of GO-Biz to develop an international trade and investment program attracting employment-producing direct foreign investment to the state and provides support for California businesses in accessing international markets and increasing exports. (GC § 13996.41)
- Requires GO-Biz to prepare an international trade and investment strategy (ITI Strategy) based on current and emerging market conditions and the needs of investors, businesses, and workers to be competitive in global markets and may be based on existing studies and reports. Requires GO-Biz to provide the ITI Strategy, as specified, to the Legislature on or before February 1, 2019. (GC § 13996.55)
- Authorizes under the Bergeson-Peace Infrastructure and Economic Development Bank Act (IBank Act) the creation of the Infrastructure and Economic Development Bank (IBank) within GO-Biz, to promote economic revitalization, enable future development, and encourage a healthy climate for jobs in California. (GC § 63000 et seq.)
- Defines “Port facilities” for purposes of the IBank 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))
This bill:
- States findings and declarations that: the state has a compelling interest in the development of a robust network of logistic hubs; new and upgraded port and foreign-trade zone facilities, as well as rail and road infrastructure investments, are needed to enhance California’s competitiveness for international and domestic cargoes, grow employment, yield significant economic development, increase state and local tax revenues, and reduce impacts on environmental quality from goods movement; the state’s ports of entry serve as a vital interface between the state, nation, and trade partners; and developing inland ports complements the state’s existing innovation, manufacturing, and goods movement resources, among other benefits.
- States Legislative intent to assist in the economic development of a statewide goods movement network that supports, leverages, enhances, and links resources, manufacturing, warehousing, distribution centers, and inland ports with airports, seaports, and land ports of entry.
- Requires the ITI Strategy to identify the process GO-Biz will use for ongoing evaluation of needs, including logistic hubs. Delays submission of the next update to July 1, 2019.
- Adds “inland port” to the existing definition of “port facilities” under the IBank Act.
- Makes technical changes.
Background
GO-Biz has authority for undertaking international trade and foreign investment activities, including establishing any international trade and investment office. The International Trade and Investment Strategy prepared by GO-Biz in 2014 notes that as part of meeting its strategic objective to “develop a comprehensive, coordinated and cohesive strategy development framework with a clear vision to expand trade and investment which includes other relevant state agencies”, GO-Biz engaged in ongoing efforts to “identify foreign markets with the greatest potential for export expansion including our top trading partners such as Canada, Mexico and China…[and] utilize the public-private sector trade and investment working group to identify and target new foreign sources of investment with likely potential to invest in California.” Since 2013, Governor Brown has entered into a Memorandum of Understanding with entities in eight countries, including China, India, Israel, Japan, Mexico, Netherlands, Peru, and Spain. According to GO-Biz’s Web site, these international agreements are bilateral or multilateral accords meant to express mutual cooperation for a common goal undertaken by two or more parties. GO-Biz has partnered with the Bay Area Council to open a California-China Trade and Investment office (CCTO) in Shanghai's downtown Yangpu district. The 2015 CCTO Annual Report noted that “In fulfilling this mission the CCTO engages with California companies seeking to enter into or expand in the Chinese market as well as with Chinese entities looking to invest in California. The CCTO has had direct engagement with 69 entities between January 2014 and October 2015.” The report outlined efforts to expand opportunities and to increase the state’s presence in China to other cities and provide a broader representation of regions in California.
IBank. The IBank 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 of the Department of Finance, Secretary of the Transportation Agency, and a Governor’s appointee. The day-to-day operations of the IBank are directed by the Executive Director who is an appointee of the Governor and is subject to confirmation by the California State Senate.
The IBank 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. The IBank’s programs include:
- The Infrastructure State Revolving Fund which provides direct low-cost financing to public agencies for a variety of public infrastructure projects.
- The Small Business Finance Center which offers direct loans, loan guarantees, letters of credit and surety bond guarantees and the IBank Board of Directors has the authority to approve new debt and credit enhancement programs to assist small businesses meet changing market needs.
- The Revenue Bond Financing Program which provides financing for manufacturing companies, public benefit nonprofit organizations, public agencies and other eligible entities.
- The California Lending for Energy and Environmental Needs Center which provides low-cost financing to eligible State and local governments, and public universities, schools, and hospitals. The approved eligible projects include those with commercially proven technologies that are expected to result in carbon reduction benefits or other environmental benefits within the State, including energy efficiency, renewable energy, energy storage, alternative technologies, alternative fuels, transportation and water.
- The Statewide Energy Efficiency Program which finances projects that provides comprehensive efficiency improvements to new and existing facilities that save energy.
- The Light Emitting Diode Street Lighting Program that finances the installation of LED street lights.
According to the 2016-2017 IBank Annual Report, since its creation in 1994, IBank has loaned, financed, or participated in the financing of $38.4 billion of infrastructure and economic expansion projects. IBank is California’s only general purpose financing authority, with broad powers to issue tax-exempt and taxable revenue bonds, provide financing to public agencies, provide credit enhancements, acquire or lease facilities, and leverage State and Federal funds. IBank also helps small businesses through the loan guarantee programs and the farm loan program in the Small Business Finance Center.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
None received
OPPOSITION: (Verified 8/15/18)
None received
ASSEMBLY FLOOR: 75-0, 1/29/18
AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Gallagher, McCarty
8/15/18 14:32:35
**** END ****
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 1561
:
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 8-0, 5/7/18
AYES: Hill, Fuller, Dodd, Galgiani, Glazer, Hernandez, Newman, Pan
NO VOTE RECORDED: Wilk
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 75-0, 1/29/18 (Consent) - See last page for vote
DIGEST:
This bill requires the international trade and investment strategy (ITI Strategy) prepared by the Governor’s Office of Business and Economic Development (GO-Biz) to identify the process GO-Biz will use for ongoing evaluation of needs, including logistic hubs.
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. (Government Code (GC) §§ 12096 – 12098.5)
- Specifies that GO-Biz is the primary state agency authorized to attract foreign investments, cooperate in international public infrastructure projects, and support California businesses in accessing markets, and requires the Director of GO-Biz to develop an international trade and investment program attracting employment-producing direct foreign investment to the state and provides support for California businesses in accessing international markets and increasing exports. (GC § 13996.41)
- Requires GO-Biz to prepare an international trade and investment strategy (ITI Strategy) based on current and emerging market conditions and the needs of investors, businesses, and workers to be competitive in global markets and may be based on existing studies and reports. Requires GO-Biz to provide the ITI Strategy, as specified, to the Legislature on or before February 1, 2019. (GC § 13996.55)
- Authorizes under the Bergeson-Peace Infrastructure and Economic Development Bank Act (IBank Act) the creation of the Infrastructure and Economic Development Bank (IBank) within GO-Biz, to promote economic revitalization, enable future development, and encourage a healthy climate for jobs in California. (GC § 63000 et seq.)
- Defines “Port facilities” for purposes of the IBank 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))
This bill:
- States findings and declarations that: the state has a compelling interest in the development of a robust network of logistic hubs; new and upgraded port and foreign-trade zone facilities, as well as rail and road infrastructure investments, are needed to enhance California’s competitiveness for international and domestic cargoes, grow employment, yield significant economic development, increase state and local tax revenues, and reduce impacts on environmental quality from goods movement; the state’s ports of entry serve as a vital interface between the state, nation, and trade partners; and developing inland ports complements the state’s existing innovation, manufacturing, and goods movement resources, among other benefits.
- States Legislative intent to assist in the economic development of a statewide goods movement network that supports, leverages, enhances, and links resources, manufacturing, warehousing, distribution centers, and inland ports with airports, seaports, and land ports of entry.
- Requires the ITI Strategy to identify the process GO-Biz will use for ongoing evaluation of needs, including logistic hubs. Delays submission of the next update to July 1, 2019.
- Adds “inland port” to the existing definition of “port facilities” under the IBank Act and defines “inland port” as a logistical hub that is located on a site separate from land, air, and coastal ports of entry and that is designed to facilitate and process international and domestic trade, including, but not limited to, multimodal transportation assets and goods movement value-added facilities and services.
- Makes technical changes.
Background
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, Governor Brown signed AB 29 (John A. Pérez, Chapter 475, Statutes of 2011), which effectively codified GOED and changed its name to GO-Biz. Since its inception, the office has served thousands of businesses, 95 percent of which are small businesses. The most frequent types of assistance include help with permit streamlining, starting a business, relocation and expansion of businesses, and regulatory challenges.
In March 2012, Governor Brown initiated a reorganization process to realign the state's administrative structure. Key changes include dismantling of the Business, Transportation and Housing Agency and the shifting of a number of key programs 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 IBank. GO-Biz administers the “Made In California” program for the purpose of encouraging consumer product awareness and to foster the purchases of products manufactured in California. A key initiative of GO-Biz is the "strike teams" which can be mobilized to help attract and/or retain specific businesses. Among these other programs, GO-Biz also administers the Innovation Hub (iHub) program, an effort to harness and enhance California's innovative spirit. The iHubs aim to improve the state's national and global competitiveness by stimulating partnerships, economic development, and job creation around specific research clusters through state-designated iHubs.
GO-Biz also administers the California Competes Tax Credit Program under which “businesses who want to come, stay, or grow in California”, as noted on the GO-Biz Web site, can receive and income tax credit. Tax credit agreements are negotiated between GO-Biz and the taxpayer, and approved by a committee, consisting of the State Treasurer, the Director of the Department of Finance, the Director of GO-Biz, and one appointee each by the Speaker of the Assembly and Senate Committee on Rules. Allocations are based on certain specified factors, but mainly focus on the amount of investment, the impact of a project, and the number of jobs the taxpayer will create or retain in California. The program is open to taxpayers of all sizes but creates preferential treatment for “small businesses”, defined as those making less than $2 million in revenue per year.
GO-Biz also has authority for undertaking international trade and foreign investment activities, including establishing any international trade and investment office. The International Trade and Investment Strategy prepared by GO-Biz in 2014 notes that as part of meeting its strategic objective to “develop a comprehensive, coordinated and cohesive strategy development framework with a clear vision to expand trade and investment which includes other relevant state agencies”, GO-Biz engaged in ongoing efforts to “identify foreign markets with the greatest potential for export expansion including our top trading partners such as Canada, Mexico and China…[and] utilize the public-private sector trade and investment working group to identify and target new foreign sources of investment with likely potential to invest in California.” Since 2013, Governor Brown has entered into a Memorandum of Understanding with entities in eight countries, including China, India, Israel, Japan, Mexico, Netherlands, Peru, and Spain. According to GO-Biz’s Web site, these international agreements are bilateral or multilateral accords meant to express mutual cooperation for a common goal undertaken by two or more parties. GO-Biz has partnered with the Bay Area Council to open a California-China Trade and Investment office (CCTO) in Shanghai's downtown Yangpu district. The 2015 CCTO Annual Report noted that “In fulfilling this mission the CCTO engages with California companies seeking to enter into or expand in the Chinese market as well as with Chinese entities looking to invest in California. The CCTO has had direct engagement with 69 entities between January 2014 and October 2015.” The report outlined efforts to expand opportunities and to increase the state’s presence in China to other cities and provide a broader representation of regions in California.
Under the Control, Regulate and Tax Adult Use of Marijuana Act enacted by voters through Proposition 64 in 2016, GO-Biz is responsible for administering a community reinvestments grants program to local health departments and at least 50 percent to qualified community-based nonprofit organizations to support job placement, mental health treatment, substance use disorder treatment, system navigation services, legal services to address barriers to reentry and linkages to medical care for communities disproportionately affected by past federal and state drug policies. GO-Biz must solicit input from community-based job skills, job placement, and legal service providers with relevant expertise as to the administration of the grants program, as well as periodically evaluate the programs, and its funding to determine the effectiveness of the programs, spending no more than four percent for administrative costs related to implementation, evaluation and oversight of the programs.
IBank. The IBank 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 of the Department of Finance, Secretary of the Transportation Agency, and a Governor’s appointee. The day-to-day operations of the IBank are directed by the Executive Director who is an appointee of the Governor and is subject to confirmation by the California State Senate.
The IBank 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. The IBank’s programs include:
- The Infrastructure State Revolving Fund which provides direct low-cost financing to public agencies for a variety of public infrastructure projects.
- The Small Business Finance Center which offers direct loans, loan guarantees, letters of credit and surety bond guarantees and the IBank Board of Directors has the authority to approve new debt and credit enhancement programs to assist small businesses meet changing market needs.
- The Revenue Bond Financing Program which provides financing for manufacturing companies, public benefit nonprofit organizations, public agencies and other eligible entities.
- The California Lending for Energy and Environmental Needs Center which provides low-cost financing to eligible State and local governments, and public universities, schools, and hospitals. The approved eligible projects include those with commercially proven technologies that are expected to result in carbon reduction benefits or other environmental benefits within the State, including energy efficiency, renewable energy, energy storage, alternative technologies, alternative fuels, transportation and water.
- The Statewide Energy Efficiency Program which finances projects that provides comprehensive efficiency improvements to new and existing facilities that save energy.
- The Light Emitting Diode Street Lighting Program that finances the installation of LED street lights.
According to the 2016-2017 IBank Annual Report, since its creation in 1994, IBank has loaned, financed, or participated in the financing of $38.4 billion of infrastructure and economic expansion projects. IBank is California’s only general purpose financing authority, with broad powers to issue tax-exempt and taxable revenue bonds, provide financing to public agencies, provide credit enhancements, acquire or lease facilities, and leverage State and Federal funds. IBank also helps small businesses through the loan guarantee programs and the farm loan program in the Small Business Finance Center.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
None received
OPPOSITION: (Verified 6/26/18)
None received
ASSEMBLY FLOOR: 75-0, 1/29/18
AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Gallagher, McCarty
6/27/18 10:36:58
**** END ****
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2017 - 2018 Regular
Bill No: AB 1561 Hearing Date: May 7, 2018
Author: | Quirk-Silva | ||
Version: |
| ||
Urgency: | Fiscal: | ||
Consultant: | |||
Subject: Economic development: infrastructure: logistic hubs
SUMMARY:
Requires the international trade and investment strategy (ITI Strategy) prepared by the Governor’s Office of Business and Economic Development (GO-Biz) to identify the process GO-Biz will use for ongoing evaluation of needs, including logistic hubs.
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. (Government Code (GC) §§ 12096 – 12098.5)
- Specifies that GO-Biz is the primary state agency authorized to attract foreign investments, cooperate in international public infrastructure projects, and support California businesses in accessing markets, and requires the Director of GO-Biz to develop an international trade and investment program attracting employment-producing direct foreign investment to the state and provides support for California businesses in accessing international markets and increasing exports. (GC § 13996.41)
- Requires GO-Biz to prepare an international trade and investment strategy (ITI Strategy) based on current and emerging market conditions and the needs of investors, businesses, and workers to be competitive in global markets and may be based on existing studies and reports. Requires GO-Biz to provide the ITI Strategy , to the Legislature on or before February 1, 2019, that includes: (GC § 13996.55)
- Policy goals, objectives and recommendations necessary to implement a comprehensive international trade and investment program.
- Measurable outcomes and timelines for the goals, objectives and actions for the program.
- Impediments to achieving goals and objectives.
- Key stakeholder partnerships that will be used to implement the strategy.
- Options for funding.
- An organizational structure for state administration of international trade and investment policies, programs and services.
- Authorizes under the Bergeson-Peace Infrastructure and Economic Development Bank Act (IBank Act) the creation of the Infrastructure and Economic Development Bank (IBank) within GO-Biz, to promote economic revitalization, enable future development, and encourage a healthy climate for jobs in California.
(GC § 63000 et seq.) - Defines “Port facilities” for purposes of the IBank 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))
This bill:
- States findings and declarations that: the state has a compelling interest in the development of a robust network of logistic hubs; new and upgraded port and foreign-trade zone facilities, as well as rail and road infrastructure investments, are needed to enhance California’s competitiveness for international and domestic cargoes, grow employment, yield significant economic development, increase state and local tax revenues, and reduce impacts on environmental quality from goods movement; the state’s ports of entry serve as a vital interface between the state, nation, and trade partners; and developing inland ports complements the state’s existing innovation, manufacturing, and goods movement resources, among other benefits.
- States Legislative intent to assist in the economic development of a statewide goods movement network that supports, leverages, enhances, and links resources, manufacturing, warehousing, distribution centers, and inland ports with airports, seaports, and land ports of entry.
- Requires the ITI Strategy to identify the process GO-Biz will use for ongoing evaluation of needs, including logistic hubs. Delays submission of the next update to July 1, 2019.
- Adds “inland port” to the existing definition of “port facilities” under the IBank Act and defines “inland port” as a logistical hub that is located on a site separate from land, air, and coastal ports of entry and that is designed to facilitate and process international and domestic trade, including, but not limited to, multimodal transportation assets and goods movement value-added facilities and services.
- Makes technical changes.
FISCAL EFFECT: This bill is keyed fiscal by Legislative Counsel. According to the Assembly Committee on Appropriations analysis dated January 18, 2018, this bill will not result in any new state costs. The analysis also notes that this bill does not result in additional workload for GO-Biz nor does it result in additional state fiscal commitments related to the I Bank.
COMMENTS:
- Purpose. The Assembly Committee on Jobs, Economic Development and the Economy is the sponsor of this bill. According to the Author, “International trade and foreign investment are very important components of California's $2.6 trillion economy supporting over 4 million California jobs. California's largest industry sector by employment is Trade, Transportation, and Utilities, which encompasses everything from major retail outlets, to import-export businesses, to transportation and warehousing.
Improving the linkages between the production and movement of goods is an important economic development priority for California. As the state's global markets evolve, new demands are being placed on the state logistical network.
AB 1561 updates the state core planning and financing mechanism to meet these demands. Of particular interest is the use of inland ports which have the potential to substantially reduce the severity of conflicts between freight and other land uses, including idling trucks and congested areas around ports.”
- Background.
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, Governor Brown signed AB 29 (John A. Pérez, Chapter 475, Statutes of 2011), which effectively codified GOED and changed its name to GO-Biz. Since its inception, the office has served thousands of businesses, 95 percent of which are small businesses. The most frequent types of assistance include help with permit streamlining, starting a business, relocation and expansion of businesses, and regulatory challenges.
In March 2012, Governor Brown initiated a reorganization process to realign the state's administrative structure. Key changes include dismantling of the Business, Transportation and Housing Agency and the shifting of a number of key programs 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 IBank. GO-Biz administers the “Made In California” program for the purpose of encouraging consumer product awareness and to foster the purchases of products manufactured in California. A key initiative of GO-Biz is the "strike teams" which can be mobilized to help attract and/or retain specific businesses. Among these other programs, GO-Biz also administers the Innovation Hub (iHub) program, an effort to harness and enhance California's innovative spirit. The iHubs aim to improve the state's national and global competitiveness by stimulating partnerships, economic development, and job creation around specific research clusters through state-designated iHubs.
GO-Biz also administers the California Competes Tax Credit Program under which “businesses who want to come, stay, or grow in California”, as noted on the GO-Biz website, can receive and income tax credit. Tax credit agreements are negotiated between GO-Biz and the taxpayer, and approved by a committee, consisting of the State Treasurer, the Director of the Department of Finance, the Director of GO-Biz, and one appointee each by the Speaker of the Assembly and Senate Committee on Rules. Allocations are based on certain specified factors, but mainly focus on the amount of investment, the impact of a project, and the number of jobs the taxpayer will create or retain in California. The program is open to taxpayers of all sizes but creates preferential treatment for “small businesses”, defined as those making less than $2 million in revenue per year.
GO-Biz also has authority for undertaking international trade and foreign investment activities, including establishing any international trade and investment office. The International Trade and Investment Strategy prepared by GO-Biz in 2014 notes that as part of meeting its strategic objective to “develop a comprehensive, coordinated and cohesive strategy development framework with a clear vision to expand trade and investment which includes other relevant state agencies”, GO-Biz engaged in ongoing efforts to “identify foreign markets with the greatest potential for export expansion including our top trading partners such as Canada, Mexico and China…[and] utilize the public-private sector trade and investment working group to identify and target new foreign sources of investment with likely potential to invest in California.” Since 2013, Governor Brown has entered into a Memorandum of Understanding with entities in eight countries, including China, India, Israel, Japan, Mexico, Netherlands, Peru, and Spain. According to GO-Biz’s website, these international agreements are bilateral or multilateral accords meant to express mutual cooperation for a common goal undertaken by two or more parties. GO-Biz has partnered with the Bay Area Council to open a California-China Trade and Investment office (CCTO) in Shanghai's downtown Yangpu district. The 2015 CCTO Annual Report noted that “In fulfilling this mission the CCTO engages with California companies seeking to enter into or expand in the Chinese market as well as with Chinese entities looking to invest in California. The CCTO has had direct engagement with 69 entities between January 2014 and October 2015.” The report outlined efforts to expand opportunities and to increase the state’s presence in China to other cities and provide a broader representation of regions in California.
Under the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) enacted by voters through Proposition 64 in 2016, GO-Biz is responsible for administering a community reinvestments grants program to local health departments and at least 50 percent to qualified community-based nonprofit organizations to support job placement, mental health treatment, substance use disorder treatment, system navigation services, legal services to address barriers to reentry and linkages to medical care for communities disproportionately affected by past federal and state drug policies. GO-Biz must solicit input from community-based job skills, job placement, and legal service providers with relevant expertise as to the administration of the grants program, as well as periodically evaluate the programs, and its funding to determine the effectiveness of the programs, spending no more than four percent for administrative costs related to implementation, evaluation and oversight of the programs.
IBank. The IBank 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 of the Department of Finance, Secretary of the Transportation Agency, and a Governor’s appointee. The day-to-day operations of the IBank are directed by the Executive Director who is an appointee of the Governor and is subject to confirmation by the California State Senate.
The IBank 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. The IBank’s programs include:
- The Infrastructure State Revolving Fund which provides direct low-cost financing to public agencies for a variety of public infrastructure projects.
- The Small Business Finance Center which offers direct loans, loan guarantees, letters of credit and surety bond guarantees and the IBank Board of Directors has the authority to approve new debt and credit enhancement programs to assist small businesses meet changing market needs.
- The Revenue Bond Financing Program which provides financing for manufacturing companies, public benefit nonprofit organizations, public agencies and other eligible entities.
- The California Lending for Energy and Environmental Needs Center which provides low-cost financing to eligible State and local governments, and public universities, schools, and hospitals. The approved eligible projects include those with commercially proven technologies that are expected to result in carbon reduction benefits or other environmental benefits within the State, including energy efficiency, renewable energy, energy storage, alternative technologies, alternative fuels, transportation and water.
- The Statewide Energy Efficiency Program which finances projects that provide comprehensive efficiency improvements to new and existing facilities that save energy.
- The Light Emitting Diode Street Lighting Program that finances the installation of LED street lights.
According to the 2016-2017 IBank Annual Report, since its creation in 1994, IBank has loaned, financed, or participated in the financing of $38.4 billion of infrastructure and economic expansion projects. IBank is California’s only general purpose financing authority, with broad powers to issue tax-exempt and taxable revenue bonds, provide financing to public agencies, provide credit enhancements, acquire or lease facilities, and leverage State and Federal funds. IBank also helps small businesses through the loan guarantee programs and the farm loan program in the Small Business Finance Center.
- Prior Related Legislation. AB 962 (Allen) would have required the IBank, after consulting with appropriate state and local agencies, to establish criteria, priorities, and guidelines for the selection of infrastructure development and equipment purchase projects submitted by harbor agencies. (Status: The measure was held in the Assembly Committee on Appropriations.)
AB 1533 (Assembly Committee on Jobs, Economic Development and the Economy, Chapter 383, Statutes of 2015), among other changes, added “railports” to the definition of port facilities for purposes of the I-Bank Act.
SB 511 (Lieu) of 2014 would have established the California Export Finance Office within the I-Bank and would have required GO-Biz to convene a statewide business partnership to discuss the promotion and greater utilization of California ports. (Status: This bill was held in the Assembly Committee on Appropriations.)
AB 337 (Allen, Chapter 776, Statutes of 2014) updated requirements for the ITI strategy prepared by GO-Biz to be based on current and emerging market conditions and the needs of investors, businesses, and workers to be competitive in global markets.
SB 592 (Price) of 2013 included the same language as SB 511, but also required GO-Biz to provide a port trade promotion strategy to the Legislature on or before April 1, 2014. (Status: The bill was held in the Assembly Committee on Appropriations.)
AB 412 (Allen) of 2013 would have required GO-Biz to undertake a study of the potential roles for the state in global markets. (Status: This bill was held in the Assembly Committee on Appropriations.)
SUPPORT AND OPPOSITION:
Support:
None on file as of May 1, 2018.
Opposition:
None on file as of May 1, 2018.
-- END --
Date of Hearing: January 18, 2018
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
ABPCA Bill Id:AB 1561
Author:(Quirk-Silva) – As Amended January 11, 2018Ver:January 11, 2018
Policy Committee: | Jobs, Economic Development, and the Economy | Vote: | 6 - 0 |
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill expands the mandatory elements of the state's international trade and investment strategy (ITI Strategy) to include the role of logistical hubs, including inland ports, and authorizes the California Infrastructure and Economic Development Bank (I Bank) to finance inland port facilities, as defined.
FISCAL EFFECT:
No new state costs. This bill does not result in additional workload for the Governor’s Office of Economic Development (GO-Biz) nor does it result in additional state fiscal commitments related to the I Bank.
COMMENTS:
Background and Purpose. State law authorizes GO-Biz to undertake ITI activities and, as a condition of that authority, directs the development and implementation of a comprehensive ITI strategy. Existing law requires the ITI Strategy to, at a minimum, include the following: a) Policy, goals, objectives and recommendations; b) Measurable outcomes and timelines for meeting the ITI Strategy goals, objectives, and actions; c) Identification of key stakeholder partnerships that will be used to implement the goals and objectives; d) Identification of impediments for achieving the goals and objectives; e) Identification of options for funding recommended actions; and f) Identification of an international trade and investment organizational structure.
According to the policy committee analysis of AB 1561, improving the linkages between production and the movement of goods is an important economic development priority for California. This bill updates core planning and financing mechanisms so that inland ports, which have the potential to help with the state’s logistical network, are part of California’s overall trade and investment strategy.
Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081
Date of Hearing: January 9, 2018
ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT, AND THE ECONOMY
Sharon Quirk-Silva, Chair
ABPCA Bill Id:AB 1561 (
Author:Quirk-Silva) – As Amended Ver:January 3, 2018
SUBJECT: Economic development: infrastructure: logistic hubs
SUMMARY: Expands the mandatory elements of the state's international trade and investment strategy (ITI Strategy) to include the role of logistical hubs, including inland ports, and authorizes the California Infrastructure and Economic Development Bank (IBank) to finance inland port facilities, as defined. Specifically, the bill:
- Makes legislative findings and declarations, including, but not limited to:
- The state has a compelling interest in the development of a robust network of logistic hubs, connected by roads, rail, and air. The development and buildout of an intermodal network provides the state an economic advantage today and in the future;
- New and upgraded port and foreign trade zone facilities, as well as rail and road infrastructure investments, are needed to enhance California’s competitiveness for international and domestic cargoes, resulting in employment growth, significant economic development, increases in state and local tax revenues, and reduction in impacts to environmental quality from goods movement;
- The state's ports of entry serve as a vital interface between California and the U.S. and the state’s important trade partners in North and South America, the Pacific Rim countries, and other regions of the world. In 2016, California exported $163.6 billion in products through its air, land, and seaports to over 220 foreign markets; and
- Inland ports represent a relatively new concept within the US freight system, but their use is growing. Among other advantages, inland ports play a key role in enhancing the efficiency of logistic networks and serve as key nodes within expansive domestic international supply chains.
- Expresses the intent of the Legislature to assist in the economic development of a statewide goods movement network that supports, leverages, enhances, and links resources, manufacturing, warehousing, distribution centers, inland ports with airports, seaports, and land ports of entry.
- Expands the eligible financing activities of the IBank to include inland ports, which it defines as a logistical hub located on a site separate from land, air, and coastal ports of entry and that is designed to facilitate and process international and domestic trade, including, but not limited to, multimodal transportation assets and goods movement value-added facilities and services.
- Streamlines the reporting requirements of the ITI Strategy and expands the required elements to include logistical hubs. Existing law only requires airports, rail and highways; leaving out inland ports and other multimodal facilities that are designed to support trade and foreign investment.
EXISTING LAW:
- Establishes GO-Biz within the Governor's Office for the purpose of serving as the state's principal entity for issues relating to international trade and foreign investment, excluding agricultural issues. GO-Biz is led by a director, which is appointed by the Governor.
- Establishes the IBank 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 to finance port facilities, oversight of the Small Business Finance Center, and the issuance of tax-exempt and taxable revenue bonds.
- Requires GO-Biz, as a condition of exercising international trade authority, to develop and implement a comprehensive ITI Strategy. All international trade and foreign investment activities and funding are required to be consistent with the ITI strategy.
- Requires the GO-Biz to provide the Legislature with an ITI Strategy by February 2014 and update it at least once every five years 2019.
- Requires the ITI Strategy to, at a minimum, include the following:
- Policy, goals, objectives and recommendations;
- Measurable outcomes and timelines for meeting the ITI Strategy goals, objectives, and actions;
- Identification of key stakeholder partnerships that will be used to implement the goals and objectives;
- Identification of impediments for achieving the goals and objectives;
- Identification of options for funding recommended actions; and
- Identification of an international trade and investment organizational structure.
- Requires the ITI Strategy to be based on current and emerging market conditions and the needs of investors, businesses, and workers. The ITI Strategy is also required to include a process by which GO-Biz will use to evaluate on an ongoing basis, as appropriate, current workforce, infrastructure, research and development, and other needs of small and large firms, including, but not limited to, highways, airports, and rail that link businesses with the state’s ports of entry and foreign and domestic markets.
FISCAL EFFECT: Unknown
POLICY FRAME: International trade and foreign investment are very important components of California's $2.6 trillion economy supporting over 4 million California jobs. California's largest industry sector by employment is Trade, Transportation, and Utilities, which encompasses everything from major retail outlets, to import-export businesses, to transportation and warehousing.
Improving the linkages between the production and movement of goods is an important economic development priority for California. As the state's global markets evolve, new demands are being placed on the state logistical network. AB 1561 updates the state core planning and financing mechanism to meet these demands. Of particular interest is the use of inland ports which have the potential to substantially reduce the severity of conflicts between freight and other land uses, including idling trucks and congested areas around ports.
The analysis includes information on the California trade-related economy, key elements of the state ITI Strategy, the rise of inland ports, and related legislation. Suggested amendments are included in Comment 5.
COMMENTS:
- Profile of California's Trade Dominated Economy: California is home to over 39 million people, providing the state with one of the most diverse populations in the world, often comprising the single largest concentration of nationals outside their native country. In 2016, this diverse group of business owners and workers produced $2.6 trillion in goods and services; $163.6 billion of which were exported to over 220 countries around the world.
If California were a country, its 2016 GDP would place it 6th among nations, ranking as follows: United States ($18.56 trillion); China ($11.22 trillion); Japan ($4.94 trillion); Germany ($3.47 trillion); United Kingdom ($2.62 trillion); California ($2.60 trillion); France ($2.46 trillion); India ($2.26 trillion), and Italy ($1.85 trillion). Russia ranks 13th with GDP of $1.28 trillion.
Historically, a number of factors have contributed to California's significant positon within the global marketplace, including its strategic west coast location, the size of its consumer base, the strength of its dominant industry sectors, its economically diverse regional economies, its skilled workforce, and its culture of innovation and entrepreneurship, particularly in the area of technology. California's 29 million working age individuals comprise the single largest workforce in the nation, are comparatively younger, and have an educational achievement level above the national average.
Many policy makers and economists describe California as having not a single economy, but having a highly integrated network of a dozen or so regional economies. While biotech has a comparative advantage in some regions, information technology drives growth in others. This economic diversity contributed to California's ability to aggressively move out of the recession, ranking number two in the nation by Business Insider for fastest growing economy in the nation in August 2014 and being named as having the fourth best overall economy in March 2015.
Chart 1 displays information from the U.S. Census Bureau on California's private industry sectors based on its contribution to the state's GDP. In 2016, the finance and insurance sector provided the
largest economic contribution to the state's overall GDP, $565 billion of the $2.6 trillion. Firms in this industry sector include entities that raise funds, pool risk, and facilitate financial transactions including trade and foreign investment.
Chart 2, developed using data provided by the California Employment Development Department, shows California's largest industry sectors based on employment. In 2016, the trade, transportation, and utilities sector was largest, employing nearly 3 million people (18.4% of California jobs). (5.0%).
Jobs in the trade, transportation and utility sector also support employment in other industry sectors including manufacturing (8.1%), professional services (15.6%), and financial activities. Many of the jobs associated with these major industry sectors are also associated with high wages. Manufacturing is considered the "gold standard" for jobs because of its high wages, inclusion of small businesses within its global supply chains, and having a high multiplier effect on related jobs. The Milken Institute estimates that for every job created in manufacturing, 2.5 jobs are created in other sectors. In some industry sectors, such as electronic computer manufacturing, the multiplier effect is 16:1.
Advances in transportation and communication technologies are encouraging the development of previously undeveloped markets and expanding multinational business opportunities for California firms. Today, four of California's top five exports include component parts, which leave the state to be assembled and/or partially assembled before returning.
These trade-related industry sectors comprise a majority of what EDD has designated as the state's "economic base" sectors, which include professional services, manufacturing, and transportation, among others. Employment in these economic base industries represents 37.3% of the state’s total employment, and employment growth within these sectors grew at twice the pace of the overall state economy from 2010 to 2012.
- Inland Ports: Inland ports represent a relatively new concept within the US logistical network and freight movement system, but their use is growing as demonstrated through the development is new facilities in Salt Lake City, UT; Dallas/Fort Worth, TX; and Cordele, GA. Well designed and strategically placed inland ports can play a key role in enhancing the efficiency of a state's logistic network and serve as key nodes within expansive domestic and international supply chains.
As globalization provides new economic opportunities for ports and technology centers across the globe, California’s long-term economic success may be dependent on the state's ability to reimage a state manufacturing and freight movement system that connects resources to production, and products to consumers, with economical options that are able to adapt to evolving market needs.
Developing inland ports as part of the state's logistical network complements existing business and goods movement resources, while also offering new options for relieving congestion at ports of entry, improving air quality, and reducing greenhouse gas emissions.
Further, inland ports can promote and disburse economic benefits throughout the state, including communities historically overlooked that have large underutilized tracts of land and/or other economic resources.
- The Current ITI Strategy: Between 2003 and 2006, California had no trade and international marketing authority. After years of debate, the Legislature and the Governor began an unprecedented collaboration on the development of a new international trade and investment program. Agreements on the new program were codified in SB 1513 (Romero/Figueroa), Chapter 663, Statutes of 2006 and further refined in AB 2012 (John A. Pérez), Chapter 294, Statutes of 2012.
Under California's new trade and foreign investment framework, state activities are required to be directed through the development and implementation of the ITI Strategy. The ITI Strategy is prepared every five years based on current state and regional economic research and a public vetting with the Legislature to ensure the inclusion of jointly agreed upon goals and measurable objectives. The initial strategy was finalized in August 2008 and the current ITI Strategy was finalized in February 2014.
The overall policies governing the ITI Strategy are to create jobs, increase revenues for California enterprises, improve California’s international competitiveness by expanding the export of California goods and services, and by increasing foreign direct investment into the state. Based on these guiding policy goals, the ITI Strategy sets forth a comprehensive set of recommendations around six strategic objectives:
- Comprehensive Framework: Develop a comprehensive, coordinated and cohesive strategy framework with a clear vision to expand trade and investment, which includes other relevant state agencies, with input from private and public sector stakeholders;
- Marketing: Implement more proactive outreach, awareness, education and engagement programs both within the state for California-based companies and through foreign partners and trade office(s);
- China Trade Office: Maximize China Trade Office resources and opportunities to expand exports and investment;
- Infrastructure: Develop an action plan to address key challenges facing our ports and related infrastructure to ensure their competitiveness;
- Federal-State Relationship: Re-engage and strengthen working relationships with the Office of the U.S. Trade Representative and the state’s Congressional delegation to advocate California interests related to international trade and investment; and
- Website: Develop and implement a more user-friendly, comprehensive, interactive and useful website to assist California companies wanting to export and to attract foreign investment.
Under each of the program objectives, the ITI Strategy identifies a set of specific actions, including timelines, priority levels, and measurable outcomes. Among other actions under the Comprehensive Framework objective, the ITI Strategy calls for identification of foreign markets with the greatest potential for export expansion. Top trade partners identified include: Canada, Mexico, and China, and emerging markets such as Brazil and India. AB 923 would include an analysis of countries in Africa and the Caribbean, as potential emerging markets.
AB 1561 helps to develop the framework to advance strategic objective "D. Infrastructure".
- The Governor's Office of Business and Economic Development: In California, the primary state agency responsible for state trade and foreign investment activity (excluding agriculture) is GO-Biz. Initially established in 2011, international trade responsibility was transferred from the Business, Transportation, and Housing Agency to GO-Biz in 2012. Among GO-Biz' assets are the Office of the Small Business Advocate, the Permit Assistance Unit, the Office Foreign Trade and Investment, and the Business Investment Services Unit. [AB 29 (John A. Pérez), Chapter 475, Statutes of 2011 and AB 2012 (John A. Pérez), Chapter 294, Statutes of 2012]
The Governor's Reorganization Plan transferred a number of additional economic development related entities under the purview of GO-Biz in 2012 including the California Travel and Tourism Commission, the California Infrastructure and Economic Development Bank (IBank), and the California Film Commission. In 2013, the Innovation Hub Program and the EB-5 investment visa program were codified under the administration of GO-Biz. Also in 2013, a Small Business Finance Center was established within the IBank and debt and credit enhancement programs administered through a network of 11 small business financial development corporations were transferred to GO-Biz under the auspices of the new Center. [AB 250 (Holden and V. Manuel Pérez), Chapter 530, Statutes of 2013, AB 1067 (Medina), Chapter 535, Statutes of 2013, and AB 1247 (Medina and Bocanegra), Chapter 537, Statutes of 2013]
In addition to developing the ITI Strategy, GO-Biz operates a number of key programs to facilitate business development, in general, and trade and foreign investment, specifically, including the State Trade and Export Promotion (STEP) Program, EB-5 investment visa activities, export finance support through the Small Business Finance Center, data reports and tracking of foreign trade trends, and the China Trade Office.
STEP is a federal initiative authorized through the Small Business Jobs Act of 2010. The program is regionally administered through a partnership between GO-Biz and the California Community Colleges through a network of Centers for International Trade and Development (CITDs). The primary purpose of the program is to create jobs by increasing the number of, and the volume of, small businesses exporting.
The California Trade and Investment Office in Shanghai is the first trade office opened under the
AB 2012 program authority. The Trade Office is self-funded through private contributions and operates under a cooperative agreement between GO-Biz and the Bay Area Council, a San Francisco-headquartered nonprofit business organization. Opened in October 2012, the purpose of the Trade Office is to provide California companies increased access to Chinese business contacts, Chinese investors with access to California projects, and spur new investment and trade growth between California and China. In order to expand the Offices' outreach, GO-Biz entered into a memorandum of understanding with additional California-China trade partners including the California Asian Pacific Chamber of Commerce; World Trade Center Los Angeles; and the City of Sacramento.
- Proposed Amendments: Below is a list of technical amendments staff understands the author will be present for Committee approval at the hearing.
- Clarify the process GO-Biz will use to evaluate, on an ongoing basis, the current international trade and foreign investment needs of businesses.
- Make a technical change to a previously required section of the strategy, which called for the inclusion of an organizational chart that includes the state entities involved in implementing the trade strategy.
- Related Legislation: Below is a list of bills from the current and prior sessions.
- AB 886 (Allen and Ian Calderon) Importer-Exporter Tax Credit: This bill would have authorized a five-year $500 million tax credit program for importers and exporters that increase cargo through in-state airports and seaports, hire additional staff, or incur capital costs at a California cargo facility. Status: Held on the Suspense File of the Assembly Committee on Appropriations, 2013.
- AB 923 (Ridley-Thomas) Emerging Markets Analysis: This bill requires the Governor's Office of Business and Economic Development to include an analysis of dominant and emerging foreign markets within the already mandated state international trade and investment strategy. Status: Held on the Suspense File of the Senate Appropriations Committee, 2017.
- AB 962 (Allen) Project Evaluation Financing: This bill establishes a process by which a harbor agency can monetize the future financial value of installing and operating a port using technology and processes that result in zero and near zero emissions. This valuation would be used to establish the amount of a state appropriation that would be used by the harbor agency to pay for part or all of those proposed improvements. Status: Pending in the Assembly Committee on Jobs, Economic Development, and the Economy.
- SB 63 (Hall) Seaport Infrastructure Districts: This bill authorizes cities and counties to establish Seaport Infrastructure Financing Districts and allows these districts to finance certain port or harbor facilities, as specified. Status: Signed by the Governor, Chapter 793, Statutes of 2015.
- SB 628 (Beall) Enhanced Infrastructure Financing Districts: This bill authorizes local officials to create Enhanced Infrastructure Financing Districts (EIFDs), which augment the tax increment financing powers that are available to local government under the IFD statutes. City or county officials can create an EIFD, which is governed by a public finance authority, to finance public capital facilities or other specified projects of communitywide significance that provide significant benefits to the district or the surrounding community. Status: Signed by the Governor, Chapter 785, Statutes of 2014.
- SB 308 (Seymour) Infrastructure Financing Districts: This bill authorizes cities and counties to create infrastructure financing districts (IFDs) and issue bonds to pay for community scale public works: highways, transit, water systems, sewer projects, flood control, child care facilities, libraries, parks, and solid waste facilities. To repay the bonds, IFDs can divert property tax increment revenues, which are revenues generated from increases in property values within the IFD above property values in the base-year when the IFD was formed. However, IFDs can’t divert property tax increment revenues from schools. Signed by the Governor, Chapter 1575, Statutes of 1990.
REGISTERED SUPPORT / OPPOSITION:
Support
None on File
Opposition
None on File
Analysis Prepared by: Toni Symonds / J., E.D., & E. / (916) 319-2090
Discussed in Hearing
1MIN
Assembly Floor
1MIN
Senate Floor
1MIN
Senate Standing Committee on Business, Professions and Economic Development
21MIN
Assembly Standing Committee on Appropriations
Bill Author
Bill Co-Author(s):