BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1272
                                                                  Page  1

          Date of Hearing:   April 17, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                AB 1272 (Medina) - As Introduced:  February 22, 2013 

          Policy Committee:                              JEDE Vote:8-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill authorizes the I-Bank to join or formally participate  
          in regional, state, national or international organizations  
          related to infrastructure finance, and also authorizes the  
          I-Bank to facilitate the development of infrastructure projects  
          regardless of whether the I-Bank is funding a portion of the  
          project.

           FISCAL EFFECT  

          The costs to the I-Bank are expected to be about $250,000 to  
          administer the program.  The I-Bank is financed by fees,  
          interest income and other revenue from its financing activities.

           COMMENTS  

           1)Purpose.   The author states the aim of this bill is to close a  
            gap between investors that are willing to fund infrastructure  
            projects in California and the proposed projects that are in  
            need of financing.  According to the author, AB 1272  
            authorizes the I-Bank to join state, national or international  
            organizations, and is likely to lead to the I-Bank joining the  
            West Coast Infrastructure Exchange.  The author states the  
            bill also directs the I-Bank to assist state agencies in  
            placing projects on the exchange for the purpose of obtaining  
            investors.  The author notes the I-Bank's pre-existing private  
            market expertise makes the I-Bank best prepared to help other  
            state agencies place projects on the West Coast Infrastructure  
            Exchange for possible private sector financing.

           2)Background on I-Bank  .  The I-Bank was established in 1994 to  
            promote economic revitalization, enable future development and  








                                                                  AB 1272
                                                                  Page  2

            encourage a healthy climate for jobs in California.  Currently  
            housed within BTH, the I-Bank is governed by a five-member  
            board comprised of the BTH Secretary (chair), State Treasurer,  
            Director Department of Finance, Secretary of the State and  
            Consumer Services Agency, and a Governor's appointee.  The  
            I-Bank does not receive any ongoing General Fund support.

           3)West Coast Infrastructure Exchange.   California, Oregon,  
            Washington, and British Columbia have combined to form the  
            West Coast Infrastructure Exchange.  The State Treasurer's  
            Office is the California entity that signed the framework  
            agreement for the exchange.  The West Coast Infrastructure  
            Exchange solicits private financing needed to maintain roads,  
            bridges, dams and water systems. The exchange is a  
            clearinghouse of projects and investment opportunities which  
            should attract institutional investors who want to invest in  
            long-term projects.  

           4)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 311 is pending in  
            this committee.

           5)Previous legislation  .  AB 1545 (V. Manuel Perez) of 2012,  
            would have expanded the role of the I-Bank to include  
            facilitating infrastructure and economic development financing  
            activities within the California and Mexico border region.   
            This bill was held in this committee.

           6)There is no registered opposition to this bill.
           


           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081