BILL ANALYSIS Ó AB 826 Page 1 Date of Hearing: May 6, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 826 (Chau) - As Introduced February 26, 2015 ----------------------------------------------------------------- |Policy |Jobs, Economic Development, |Vote:|9 - 0 | |Committee: |and the Economy | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 AB 826 Page 3 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