BILL ANALYSIS Ó
AB 826
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Date of Hearing: May 6, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
826 (Chau) - As Introduced February 26, 2015
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|Policy |Jobs, Economic Development, |Vote:|9 - 0 |
|Committee: |and the Economy | | |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY: Defines "regional center" for purposes of the United
States Citizenship and Immigration Services (USCIS) EB-5
Investment program. Specifically, this bill:
1)Provides a definition of an EB-5 regional center to mean an
entity designated by the USCIS for the purpose of pooling EB-5
AB 826
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capital from multiple foreign investors in economic
development projects in a defined geographic region.
2)Requires GO-Biz to include a web-link to regional centers
operating within the state on its official website.
3)Expands the role of the California Business Investment
Services Program, which is administered through GO-Biz, to
include attracting foreign and domestic investors.
FISCAL EFFECT:
Ongoing administrative costs of approximately $107,000 GF to
Go-Biz for staffing related to the expanded role of the CA
Business Investment Services Program and for GO-Biz to include a
web-link to regional centers operating in California.
COMMENTS:
1)Background. The United States Citizenship and Immigration
Services (USCIS) administers the Immigrant Investor Program
(known as "EB-5"). The name "EB-5" is derived from the fact
that it is the 5th category of the Employment-Based visa.
This pilot immigration program first enacted in 1992 and
regularly reauthorized since, seeks to stimulate the U.S.
economy through job creation and capital investment by foreign
investors. Under the program, permanent-resident status
through an EB-5 visa is available to foreign investors who
have invested - or are actively in the process of investing -
at least $1million into a new commercial enterprise, which can
entail: the creation of an original business; the purchase of
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an existing business and restructuring or reorganizing the
business to the extent that a new commercial enterprise
results; or a significant expansion of an existing business.
2)Purpose. According to the author, the EB-5 investment
accounted for $6.5 billion in capital investment and
contributed to over 131,000 U.S. jobs from fiscal years
2005-2013. With current efforts to make the EB-5 program
permanent, state and local efforts to attract EB-5 investment
is sure to grow. This bill enhances adds investors to the
range of economic development stakeholders who are encouraged
to seek services. Under current law, the program's activities
have primarily focused on business development. This bill
expands that focus and highlights the importance of foreign
and domestic investors to the state's economic growth.
Analysis Prepared by:Misty Feusahrens / APPR. / (916)
319-2081