BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1009| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 CONTINUED AB 1009 Page 2 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 **** END ****