BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 701|
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THIRD READING
Bill No: AB 701
Author: John A. Pérez (D)
Amended: 6/3/13 in Senate
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 4-1, 6/12/13
AYES: Wolk, Beall, DeSaulnier, Liu
NOES: Knight
NO VOTE RECORDED: Emmerson, Hernandez
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 54-24, 4/22/13 - See last page for vote
SUBJECT : California Infrastructure and Economic Development
Bank
SOURCE : Author
DIGEST : This bill allows the Assembly Speaker and the Senate
Rules Committee to each appoint a non-voting legislative member
to the California Infrastructure and Economic Development Banks
(I-Bank) board of directors. This bill also designates the
I-Bank as the primary state agency for developing an application
to any federal infrastructure bank or financing authority.
ANALYSIS : Existing law establishes the I-Bank which supports
economic development and public and private infrastructure
investments through its authority to issue bonds, make loans
and, provide credit enhancements.
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AB 701
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This bill allows the Assembly Speaker and the Senate Rules
Committee to each appoint a non-voting legislative member to the
I-Bank board of directors. This bill specifies that legislative
members can advise the board to the extent that their advisory
participation is not incompatible with their duties as Members
of the Legislature. The appointed Member of the Legislature may
select a designee to serve in his/her place. This bill also
designates the I-Bank as the primary state agency for developing
an application to any federal infrastructure bank or financing
authority.
Background
The I-Bank manages several programs, including:
The Infrastructure State Revolving Fund Program provides
low-cost financing to local agencies for public infrastructure
projects.
The Industrial Development Bond Program provides tax-exempt
revenue bond financing for eligible manufacturing and
processing companies.
The 501(c)(3) Revenue Bond Program offers tax-exempt revenue
bond financing for certain nonprofit, public benefit
corporations.
The Exempt Facility Bond Program provides tax-exempt financing
for projects that are government-owned or consist of private
improvements within publicly-owned facilities, such as private
airline improvements at publicly owned airports.
Public Agency Revenue Bond Program provides tax-exempt and
taxable bond financing to specified programs for state and
local governmental agencies.
Formerly housed within the Business, Transportation and Housing
Agency, Governor's Reorganization Plan 2 of 2012 moved the
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I-Bank into the Governor's Office of Business and Economic
Development. The I-Bank has a five-member board of directors,
including the Director of the Governor's Office of Business and
Economic Development, who serves as chair, the Treasurer, or his
designee, the Department of Finance, or her designee, the
Secretary of Transportation, or his designee, and an appointee
of the Governor.
The I-Bank's Executive Director is appointed by the Governor and
confirmed by the Senate.
The I-Bank generally does not receive direct state funding.
Funding comes from fees, interest income, and revenues tied to
financing activities.
Related legislation
AB 311 (V. Manuel Perez) expands the role of the I-Bank to
include facilitating infrastructure and economic development
financing activities within the California and Mexico border
region.
AB 1272 (Medina) expands the authority of the I-Bank to
participate in regional, national and international
organizations related to infrastructure financing and support
projects involving goods movement.
AB 1095 (John A. Pérez, 2011) adds two non-voting legislative
members of the
I-Bank's board of directors. Passed Senate Governance and
Finance 5-3, amended to address school recycling.
AB 696 (Hueso) directs the I-Bank to establish a methodology for
determining the economic benefits of projects under
consideration and, as of January 1, 2013, restricts the I-Bank
to approve only those projects that provide economic benefits
and meet land use criteria. AB 696 was vetoed by Governor
Brown.
AB 700 (Blumenfield) requires the I-Bank to adopt two-year goals
and measurable objectives, consistent with state infrastructure,
economic development and environmental plans and authorizes the
I-Bank to pursue streamlined administrative functions. AB 700
was vetoed by Governor Brown.
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AB 893 (V. Manuel Pérez) directs the I-Bank to enhance outreach
and technical assistance to small and rural communities to
obtain financing for infrastructure projects. AB 893 died in
Senate Appropriations.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/24/13)
AFSCME, AFL-CIO
ASSEMBLY FLOOR : 54-24, 4/22/13
AYES: Achadjian, Alejo, Ammiano, Atkins, Bloom, Blumenfield,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Chesbro, Cooley, Daly, Dickinson,
Eggman, Fong, Fox, Frazier, Garcia, Gatto, Gomez, Gordon,
Gray, Hall, Roger Hernández, Holden, Jones-Sawyer, Levine,
Medina, Mitchell, Mullin, Muratsuchi, Nazarian, Pan, Perea, V.
Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner,
Stone, Ting, Torres, Weber, Wieckowski, Williams, Yamada, John
A. Pérez
NOES: Allen, Bigelow, Chávez, Conway, Dahle, Donnelly, Beth
Gaines, Gorell, Grove, Hagman, Harkey, Jones, Linder, Logue,
Maienschein, Mansoor, Melendez, Morrell, Nestande, Olsen,
Patterson, Wagner, Waldron, Wilk
NO VOTE RECORDED: Lowenthal, Vacancy
AB:d 6/24/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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