BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1009|
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                                 THIRD READING


          Bill No:  AB 1009
          Author:   V. Manuel Perez (D)
          Amended:  9/4/09 in Senate
          Vote:     27 - Urgency

           
          ALL PRIOR VOTES NOT RELEVANT

           SEN. GOVERNMENTAL ORGANIZATION COMM  .:  Not available


           SUBJECT  :    Bonds

           SOURCE  :     Author


           DIGEST :    This bill revises the definition of state  
          ceiling for the purpose of private activity bonds to also  
          include certain amounts reserved to the state for qualified  
          energy conservation bonds and recovery zone economic  
          development bonds.

          This bill expands the scope of the California Industrial  
          Development Financing Act by including additional types of  
          projects and costs authorized for financing under the act,  
          including, but not limited to, projects qualified under the  
          American Recovery and Reinvestment Act of 2009.  This bill  
          also authorizes financial assistance to businesses for  
          certain costs of a bond issuance.

           ANALYSIS  :    Existing law establishes in state government  
          the California Debt Limit Allocation Committee, with duties  
          that include annually determining a state ceiling on the  
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                                                               AB 1009
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          aggregate amount of private activity bonds that may be  
          issued, and allocating that amount among state and local  
          agencies.  Existing law defines the term "state ceiling"for  
          those purposes with regard to an amount specified in  
          federal law.

          Existing law, the California Industrial Development  
          Financing Act, authorizes cities, counties, cities and  
          counties, and redevelopment agencies to establish  
          industrial development authorities that are authorized to  
          issue industrial development bonds, the proceeds of which  
          may be used to fund capital projects of private enterprise  
          under terms and conditions specified in the act.

          This bill:

          1.This bill revises the definition of "state ceiling" for  
            the purpose of private activity bonds to also include  
            certain amounts reserved to the state for qualified  
            energy conservation bonds and recovery zone economic  
            development bonds.

          2.Expands the scope of the California Industrial  
            Development Financing Act by including additional types  
            of projects and costs authorized for financing under the  
            act, including, but not limited to, projects qualified  
            under the American Recovery and Reinvestment Act of 2009.  
             This bill also authorizes financial assistance to  
            businesses for certain costs of a bond issuance.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          TSM:cm  10/14/09   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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