BILL ANALYSIS                                                                                                                                                                                                    



                                                                     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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          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