BILL NUMBER: AB 696	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 28, 2011
	AMENDED IN ASSEMBLY  MAY 27, 2011
	AMENDED IN ASSEMBLY  MAY 10, 2011

INTRODUCED BY   Assembly Member Hueso

                        FEBRUARY 17, 2011

   An act to amend Section  63040   63041 
of, and to add  Section 63024.6 to   Sections
63024.6 and 63034.7 to, and to repeal Section 63040 of , the
Government Code, relating to economic development.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 696, as amended, Hueso. Bergeson-Peace Infrastructure and
Economic Development Bank Act.
   (1) The Bergeson-Peace Infrastructure and Economic Development
Bank Act sets forth the duties of the California Infrastructure and
Economic Development Bank in financing economic development
facilities, and promoting infrastructure and economic development
opportunities in the state generally.
   This bill would require the bank to consult, and authorize it to
coordinate implementation of its revolving loan program, with local
and regional revolving loan funds and networks of revolving loan
funds, for specified purposes.
   (2) The act requires the bank to establish criteria, priorities,
and guidelines for the selection of  public infrastructure 
projects to receive assistance from the bank, to be based on a
minimum of specified factors.
   This bill  would repeal these provisions and instead apply
these requirements to public and private projects that receive
conduit financing through the bank. The bill  , beginning
January 1, 2013, would require a project selected to receive 
this  assistance from the bank to additionally have economic
development benefits and meet land use criteria  pursuant to
these provisions  .
    This bill would also require the bank to develop a methodology
and process to allow the bank to measure the economic development
benefits of a project.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   
  SECTION 1.    Section 63040 of the Government Code
is amended to read:
   63040.  (a) Following consultation with appropriate state and
local agencies, the bank shall establish criteria, priorities, and
guidelines for the selection of projects to receive assistance from
the bank. Projects shall comply with the criteria, priorities, and
guidelines adopted by the bank and comply with the requirements of
subdivision (c).
   (b) The bank shall develop a methodology and process to allow the
bank to measure the economic development benefits of a project.
   (c) Beginning January 1, 2013, the bank shall only select a
project to receive assistance pursuant to this section if the project
meets both of the following criteria:
   (1) (A) The project has economic development benefits.
   (B) For purposes of this paragraph, a project has economic
development benefits if the project would provide for some
quantitative level of economic benefit, including, but not limited
to, the creation or retention of jobs, growth of the property tax
base, growth of sales tax revenues, or as otherwise determined by the
bank using the methodology developed pursuant to subdivision (b).
   (2) The project meets land use criteria.
    (d) The criteria, priorities, and guidelines shall, at a minimum,
be based upon the following:
   (1) The State Environmental Goals and Policy Report, or its
successor, approved pursuant to Article 5 (commencing with Section
65041) of Chapter 1.5 of Division 1 of Title 7.
   (2) If the sponsor is a state agency, board, commission, or
department, the Capital and Infrastructure Project Planning Report,
prepared by the Director of Finance pursuant to Article 2 (commencing
with Section 13100) of Chapter 2 of Part 3 of Division 3 of Title 2.

    (e) When the bank establishes or makes changes to the criteria,
priorities, and guidelines, the bank shall notify the Governor, the
fiscal and policy committees of the Legislature that exercise
legislative oversight of the bank, and appropriate state and local
agencies.
   (f) The resolution required in Section 63041 shall have been
adopted prior to the project's selection by the bank. 
   SEC. 2.   SECTION 1.   Section 63024.6
is added to the Government Code, to read:
   63024.6.  The bank shall consult, and may coordinate
implementation of its revolving loan program, with local and regional
revolving loan funds and networks of revolving loan funds, for the
purpose of improving the infrastructure and small business credit
markets.
   SEC. 2.   Section 63034.7 is added to the  
Government Code   , to read:  
   63034.7.  (a) Following consultation with appropriate state and
local agencies, the bank shall establish criteria, priorities, and
guidelines for the selection of projects to receive assistance from
the bank. Projects shall comply with the criteria, priorities, and
guidelines adopted by the bank and comply with the requirements of
subdivision (c).
   (b) The bank shall develop a methodology and process to allow the
bank to measure the anticipated economic development benefits of a
project.
   (c) Beginning January 1, 2013, the bank shall only select a
project to receive assistance pursuant to this section if the project
meets both of the following criteria:
   (1) (A) The project has economic development benefits.
   (B) For purposes of this paragraph, a project has economic
development benefits if the project would provide for some
quantitative level of economic benefit, including, but not limited
to, the creation or retention of jobs, growth of the property tax
base, growth of sales tax revenues, or as otherwise determined by the
bank using the methodology developed pursuant to subdivision (b).
   (2) The project meets land use criteria.
   (d) The criteria, priorities, and guidelines shall, at a minimum,
be based upon the following:
   (1) The State Environmental Goals and Policy Report, or its
successor, approved pursuant to Article 5 (commencing with Section
65041) of Chapter 1.5 of Division 1 of Title 7.
   (2) If the sponsor is a state agency, board, commission, or
department, the Capital and Infrastructure Project Planning Report,
prepared by the Director of Finance pursuant to Article 2 (commencing
with Section 13100) of Chapter 2 of Part 3 of Division 3 of Title 2.

   (e) When the bank establishes or makes changes to the criteria,
priorities, and guidelines, the bank shall notify the Governor, the
fiscal and policy committees of the Legislature that exercise
legislative oversight of the bank, and appropriate state and local
agencies.
   (f) The resolution required in Section 63041 shall have been
adopted prior to the project's selection by the bank. 
   SEC. 3.    Section 63040 of the   Government
Code   is repealed.  
   63040.  (a) Following consultation with appropriate state and
local agencies, the bank shall establish criteria, priorities, and
guidelines for the selection of projects to receive assistance from
the bank. Projects shall comply with the criteria, priorities, and
guidelines adopted by the bank.
   (b) The criteria, priorities, and guidelines shall, at a minimum,
be based upon the following:
   (1) The State Environmental Goals and Policy Report, or its
successor, approved pursuant to Article 5 (commencing with Section
65041) of Chapter 1.5 of Division 1 of Title 7.
   (2) If the sponsor is a state agency, board, commission, or
department, the Capital and Infrastructure Project Planning Report,
prepared by the Director of Finance pursuant to Article 2 (commencing
with Section 13100) of Chapter 2 of Part 3 of Division 3 of Title 2.

   (c) When the bank establishes or makes changes to the criteria,
priorities, and guidelines, the bank shall notify the Governor, the
fiscal and policy committees of the Legislature that exercise
legislative oversight of the bank, and appropriate state and local
agencies.
   (d) The resolution required in Section 63041 shall have been
adopted prior to the project's selection by the bank. 
   SEC. 4.    Section 63041 of the   Government
Code   is amended to read: 
   63041.  (a) Prior to submitting a project to the bank for
consideration, the legislative body or bodies of the sponsor or
sponsors of the project shall find, by resolution, each of the
following:
   (1) The project is consistent with the general plan of both the
city and county, or city and county in the case of San Francisco, or
only the county for projects in unincorporated areas in which the
project is located.
   (2) The proposed financing is appropriate for the specific
project.
   (3) The project facilitates effective and efficient use of
existing and future public resources so as to promote both economic
development and conservation of natural resources. The project
develops and enhances public infrastructure in a manner that will
attract, create, and sustain long-term employment opportunities.
   (4) The project is consistent with the criteria, priorities, and
guidelines for the selection of projects adopted pursuant to Section
 63040   63034.7  .
   (b) Upon the adoption of the resolution in subdivision (a) by the
legislative body, the legislative body shall transmit the resolution
to the executive director of the infrastructure bank.