BILL NUMBER: AB 294	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 6, 2013
	AMENDED IN ASSEMBLY  APRIL 23, 2013
	AMENDED IN ASSEMBLY  APRIL 8, 2013

INTRODUCED BY   Assembly Member Holden

                        FEBRUARY 11, 2013

   An act to add and repeal Article 5.5 (commencing with Section
63047.55) of Chapter 2 of Division 1 of Title 6.7 of the Government
Code, relating to local government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 294, as amended, Holden. Local-State Joint Investment
Partnership Pilot Program.
    The Bergeson-Peace Infrastructure and Economic Development Bank
Act establishes the Infrastructure and Economic Development Bank
within the Governor's Office of Business and Economic Development.
The bank is authorized to, among other things, issue bonds, approve
the issuance of certain bonds, invest moneys, and make loans, as
specified.
   This bill would, until January 1, 2020, establish a pilot program
whereby certain local government entities, upon the approval and
oversight of the bank, are authorized to reallocate their annual
payments of property tax revenue directed to the Educational Revenue
Augmentation Fund to instead finance certain kinds of public works
that further state policy, as specified. This bill would require each
local government entity operating a project under the pilot program
and the bank to submit annual reports, as specified, on the results
of the pilot program.
   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.  The Legislature finds and declares that the purpose of
this act is to create a pilot program whereby certain local
government entities, upon the approval and oversight of the
Infrastructure and Economic Development Bank, are authorized to
reallocate their payments of property tax revenue directed to the
Educational Revenue Augmentation Fund to instead finance certain
kinds of public works.
  SEC. 2.  Article 5.5 (commencing with Section 63047.55) is added to
Chapter 2 of Division 1 of Title 6.7 of the Government Code, to
read:

      Article 5.5.  Local-State Joint Investment Partnership Pilot
Program


   63047.55.  There is in state government the Local-State Joint
Investment Partnership Pilot Program.
   63047.60.  Only a local government entity, including, but not
limited to, an infrastructure financing district established pursuant
to Chapter 2.8 (commencing with Section 53395) of Part 1 of Division
2 of Title 5 or any special district, but excluding a city, county,
or city and county, may file an application for financing a public
works project with, and for approval by, the bank pursuant to the
program.
   63047.65.  Only the following public works that further state
policy objectives shall be financed under the program:
   (a) "City streets," "county highways," and "state highways," as
those terms are used in paragraphs (1), (2), and (15), respectively,
of subdivision (q) of Section 63010.
   (b) "Sewage collection and treatment," as that term is used in
paragraph (10) of subdivision (q) of Section 63010.
   (c) "Water treatment and distribution," as that term is used in
paragraph (12) of subdivision (q) of Section 63010.
   (d) Facilities for the collection and treatment of water for urban
uses.
   (e) "Drainage, water supply, and flood control," as that term is
used in paragraph (3) of subdivision (q) of Section 63010.
   (f) "Educational facilities," as that term is used in paragraph
(4) of subdivision (q) of Section 63010.
   (g) "Parks and recreational facilities," as that term is used in
paragraph (6) of subdivision (q) of Section 63010.
   (h) "Solid waste collection and disposal," as that term is used in
paragraph (11) of subdivision (q) of Section 63010.
   (i) "Public transit," as that term is used in paragraph (9) of
subdivision (q) of Section 63010.
   (j) "Power and communications," as that term is used in paragraph
(8) of subdivision (q) of Section 63010.
   (k) (1) Brownfield cleanup that promotes infill housing
development and other related infill development consistent with
regional and local plans.
   (2) For purposes of this subdivision, "brownfield" has the same
meaning as in paragraph (2) of subdivision (a) of Section 25395.20 of
the Health and Safety Code.
   (l) "Economic development facilities" as that term is used in
subdivision (g) of Section 63010.
   (m) Development of affordable housing.
   63047.70.  (a) An application for financing approval filed with
the bank pursuant to the program shall include all of the following
information in a manner prescribed by the bank:
   (1) An economic analysis of the project that includes a
determination that the development to be financed would result in an
amount of revenue to the General Fund with a net present value that
is greater than the net present value of the amount of property tax
increment revenues that would be diverted from the Educational
 Augmentation Revenue   Revenue Augmentation
 Fund over a 35-year period, taking into consideration all
pertinent data.
   (2) A description of how the project will further local and
statewide policy objectives.
   (3) A description of all local resources available to invest in
the project and an analysis of the reduced scope or feasibility of
the project based on the investment of only those local resources.
   (4) A statement of the availability of matching funds from the
applicant local government entity. The application shall not request
funding greater than required to complete the project.
   (5) The annual amount of property taxes otherwise allocated to the
Educational  Augmentation Revenue   Revenue
Augmentation  Fund, from the tax rate areas within the
territorial jurisdiction of the applicant, that the applicant
proposes to reallocate to finance the project, and whether the
applicant proposes to issue debt to fund the project.
   (6) A demonstration, to a reasonable probability, that the project
would result in an amount of tax revenue to the state General Fund
with a net present value that is greater than the net present value
of the amount of property tax increment revenues that would be
reallocated from the Educational Revenue Augmentation Fund over the
term of the project, taking into consideration all pertinent data.
   (b) The bank may circulate an application for financing to other
state agencies, including, but not limited to, the Department of
Finance, the Department of Housing and Community Development, and the
Office of Planning and Research.
   (c) The bank may establish a process for the public to comment on
an application for financing.
   (d) The legislative body of the applicant shall reimburse the bank
for the reasonable cost of the bank's review of its application for
financing.
   (e) For purposes of this article, "public works project" means the
entire plan for developing the public works specified in Section
63047.65, within a specified geographical area, as set forth by the
applicant.
   63047.75.  (a) On and after January 1, 2015, the bank may approve
up to a maximum of 15 applications for financing pursuant to the
program or a total of fifty million dollars ($50,000,000) in
allocations for all approved projects, whichever comes first.
   (b) The bank shall not approve an application for financing unless
it determines that approving a public works project proposed in an
application is necessary either to make the project financially
feasible or to significantly enhance the scope and potential benefits
of the project.
   (c) In reviewing the economic analysis in an application for
financing, the bank shall consider the increase in state General Fund
tax revenues that would occur because of the proposed economic
activity. The bank shall not approve an application unless the bank
determines that the development to be financed would result in an
amount of revenue to the General Fund with a net present value that
is greater than the net present value of the amount of property tax
increment revenues that would be diverted from the Educational
 Augmentation Revenue   Revenue Augmentation
 Fund over a 35-year period, taking into consideration all
pertinent data.
   (d) In making its decision to approve an application for
financing, the bank may give weight to any established state policy
objective or benefit identified by a state agency reviewing the
application.
   (e) The bank shall only approve a level of financing that
reallocates tax revenue that would otherwise be allocated to the
Educational Revenue Augmentation Fund from the tax rate areas within
the territorial jurisdiction of the applicant, for which the bank has
received verification from the county auditor that the level of
financing approved by the bank would not prevent the county auditor
from making all distributions to cities, counties, and special
districts from the Educational Revenue Augmentation Fund as required
by law. The local government agency shall only receive its share of
the Educational  Augmentation Revenue   Revenue
Augmentation  Fund funds for projects approved pursuant to the
program.
   (f) The bank may approve an amount less than the amount requested
by the applicant. The bank shall not approve an application unless it
finds that the local government will be able to provide matching
funds in an amount equal to the approved funding.
   63047.80.  (a) To approve an application for financing under the
program, the bank shall issue a written statement that establishes,
but is not limited to, the total amount of tax revenue that would
have been directed to the Educational Revenue Augmentation Fund that
is reallocated to finance specific public works projects proposed in
the application, the amount of each affected taxing  agency's
  entity's  payment to the Educational Revenue
Augmentation Fund that is being reallocated, and the duration of
those reallocations. The written statement shall include a statement
that the maximum amount that may be diverted from the Educational
 Augmentation Revenue   Revenue Augmentation
 Fund shall not exceed the total amount of the Educational
 Augmentation Revenue   Revenue Augmentation
 Fund contributions by each local agency participating in an
infrastructure financing district, or in the case of a special
district, that special district's  the  Educational
 Augmentation Revenue   Revenue Augmentation
 Fund share. The statement shall additionally specify that the
Educational  Augmentation Revenue   Revenue
Augmentation  Fund reallocations pursuant to the program shall
only be used for projects of the applicant that are approved projects
pursuant to this program. The bank shall transmit the statement to
the county tax collector or the official responsible for the
allocation of property tax revenues within the county.
   (b) Upon receiving the bank's written statement described in
subdivision (a), the county tax collector or the official responsible
for the allocation of tax revenues within the county shall direct
the tax revenues as prescribed in the bank's statement.
   63047.83.  Upon approval by the bank, the local government entity
may issue bonds, including, but not limited to, general obligation
bonds, against the Educational  Augmentation Revenue
  Revenue Augmentation  Fund funds, the proceeds of
which shall only be used for a project approved pursuant to this
program.
   63047.85.  (a) On or before December 31, 2016, and annually
thereafter, each applicant that has received financing pursuant to
the program for any fiscal year shall provide a report to the bank
that includes all of the following information for that fiscal year:
   (1) The amount of money that the county auditor reallocated from
the Educational Revenue Augmentation Fund for financing under the
program.
   (2) The purposes for which that allocated money was used.
   (3) The actions taken during the fiscal year to implement the
applicant's project.
   (b) On or before March 1, 2017, and annually thereafter, the bank
shall provide a report to the Joint Legislative Budget Committee that
includes all of the following information for the preceding fiscal
year:
   (1) The name, location, and general description of each
application for financing approved under the program.
   (2) The total amount of money that county auditors reallocated
from the Educational Revenue Augmentation Fund under the program.
   (3) An evaluation of the extent to which the implementation of the
approved financing has achieved the purposes and intent of the
program. In preparing this evaluation, the bank may solicit advice
and assistance from other state entities, including, but not limited
to, the departments within the Transportation Agency, the Business,
Consumer Services, and Housing Agency, and the Natural Resources
Agency, the Department of Finance, and the Office of Planning and
Research.
   63047.90.  This article shall remain in effect only until January
1, 2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date. However, the repeal of this article shall not affect the
continuing annual reallocation of property taxes for financing
approved by the bank prior to the repeal of this article.