Amended in Assembly January 4, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1033

Introduced by Assembly Member Eduardo Garcia

February 26, 2015

An act to amend Section begin delete 63010 of, and to add Chapter 7 (commencing with Section 63090) to Division 1 of Title 6.7 of, the Government Code, relating to state government. end delete begin insert 11346.3 of the Government Code, relating to state agency regulations. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1033, as amended, Eduardo Garcia. begin delete Infrastructure financing. end delete begin insert Economic impact analysis: small business definition. end insert

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Existing law, the Administrative Procedure Act, governs, among other things, the procedures for the adoption, amendment, or repeal of regulations by state agencies and for the review of those regulatory actions by the Office of Administrative Law. Existing law requires a state agency proposing to adopt, amend, or repeal specific administrative regulations to assess the potential for adverse economic impact on California business enterprises and individuals and to prepare an economic impact analysis, as specified, that addresses, among other things, the creation or elimination of jobs within the state.

end insert begin insert

This bill would authorize a state agency, when preparing the economic impact analysis, to use a consolidated definition of small business to determine the number of small businesses within the economy, a specific industry sector, or geographic region, and would define “small business” for that purpose as a business that is independently owned and operated, not dominant in its field of operation, and has fewer than 100 employees.

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The Bergeson-Peace Infrastructure and Economic Development Bank Act establishes the California Infrastructure and Economic Development Bank, within the Governor’s Office of Business and Economic Development, to be governed by a specified board of directors. The act makes findings and declarations, provides definitions, and authorizes the board to take various actions in connection with the bank, including the issuance of bonds, as specified.

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This bill, among other things, would revise the definition of economic development facilities to include facilities that are used to provide goods movement and would define goods movement-related infrastructure. The bill would revise the definition of port facilities to specifically reference airports, landports, waterports, and railports, and would expand the definition of a participating party to include an international governmental entity.

end delete begin delete

This bill would also enact the California Economic Development Infrastructure Act of 2015 to create the California Infrastructure Finance Center to administer the act, as specified, under the oversight of the bank. This bill would authorize the designation of corporations as a California Infrastructure Development Partner, as specified, and would establish requirements for those corporations to secure participation rights, as defined, as part of forming public-private partnerships with the bank in building infrastructure related to economic-related activities. This bill would prove that participation rights include, but are not limited to, a commitment by the state to use the corporation to deliver infrastructure projects and the right to compete for public-private partnership projects, also known as P3 projects. This bill would exempt contracts entered into between the bank and the corporations awarded participation rights under this act from specified public contracting requirements. This bill would authorize the bank to charge a fee related to the cost of designating and overseeing the act, and to borrow from other resources of the bank or the state, if approved by the Legislature, to pay for operational expenses of the first 2 years of the act, as provided. This bill would establish the Infrastructure Development Account in an unspecified fund to accept fees charged by the bank.

end delete

Vote: majority. Appropriation: no. Fiscal committee:  begin delete yes end delete begin insert no end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 11346.3 of the end insert begin insert Government Code end insert begin insert is
amended to read: end insert

11346.3.  

(a) A state agency proposing to adopt, amend, or
repeal any administrative regulation shall assess the potential for
adverse economic impact on California business enterprises and
individuals, avoiding the imposition of unnecessary or unreasonable
regulations or reporting, recordkeeping, or compliance
requirements. For purposes of this subdivision, assessing the
potential for adverse economic impact shall require agencies, when
proposing to adopt, amend, or repeal a regulation, to adhere to the
following requirements, to the extent that these requirements do
not conflict with other state or federal laws:

(1) The proposed adoption, amendment, or repeal of a regulation
shall be based on adequate information concerning the need for,
and consequences of, proposed governmental action.

(2) The state agency, prior to submitting a proposal to adopt,
amend, or repeal a regulation to the office, shall consider the
proposal’s impact on business, with consideration of industries
affected including the ability of California businesses to compete
with businesses in other states. For purposes of evaluating the
impact on the ability of California businesses to compete with
businesses in other states, an agency shall consider, but not be
limited to, information supplied by interested parties.

(3) An economic impact assessment prepared pursuant to this
subdivision for a proposed regulation that is not a major regulation
or that is a major regulation proposed prior to November 1, 2013,
shall be prepared in accordance with subdivision (b), and shall be
included in the initial statement of reasons as required by Section
11346.2. An economic assessment prepared pursuant to this
subdivision for a major regulation proposed on or after November
1, 2013, shall be prepared in accordance with subdivision (c), and
shall be included in the initial statement of reasons as required by
Section 11346.2.

(b) (1) A state agency proposing to adopt, amend, or repeal a
regulation that is not a major regulation or that is a major regulation
proposed prior to November 1, 2013, shall prepare an economic
impact assessment that assesses whether and to what extent it will
affect the following:

(A) The creation or elimination of jobs within the state.

(B) The creation of new businesses or the elimination of existing
businesses within the state.

(C) The expansion of businesses currently doing business within
the state.

(D) The benefits of the regulation to the health and welfare of
California residents, worker safety, and the state’s environment.

(2) This subdivision does not apply to the University of
California, the Hastings College of the Law, or the Fair Political
Practices Commission.

(3) Information required from a state agency for the purpose of
completing the assessment may come from existing state
publications.

begin insert

(4) (A) For purposes of conducting the economic impact
analysis pursuant to this subdivision, a state agency may use the
consolidated definition of small business in subparagraph (B) in
order to determine the number of small businesses within the
economy, a specific industry sector, or geographic region. The
state agency shall clearly identify the use of the consolidated small
business definition in its rulemaking package.

end insert begin insert

(B) For the exclusive purpose of undertaking the economic
impact analysis in a manner described by the Department of
Finance pursuant to Section 11346.36, a “small business” means
a business that is all of the following:

end insert begin insert

(i) Independently owned and operated.

end insert begin insert

(ii) Not dominant in its field of operation.

end insert begin insert

(iii) Has fewer than 100 employees.

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(c) (1) Each state agency proposing to adopt, amend, or repeal
a major regulation on or after November 1, 2013, shall prepare a
standardized regulatory impact analysis in the manner prescribed
by the Department of Finance pursuant to Section 11346.36. The
standardized regulatory impact analysis shall address all of the
following:

(A) The creation or elimination of jobs within the state.

(B) The creation of new businesses or the elimination of existing
businesses within the state.

(C) The competitive advantages or disadvantages for businesses
currently doing business within the state.

(D) The increase or decrease of investment in the state.

(E) The incentives for innovation in products, materials, or
processes.

(F) The benefits of the regulations, including, but not limited
to, benefits to the health, safety, and welfare of California residents,
worker safety, and the state’s environment and quality of life,
among any other benefits identified by the agency.

(2) This subdivision shall not apply to the University of
California, the Hastings College of the Law, or the Fair Political
Practices Commission.

(3) Information required from state agencies for the purpose of
completing the analysis may be derived from existing state, federal,
or academic publications.

(d) Any administrative regulation adopted on or after January
1, 1993, that requires a report shall not apply to businesses, unless
the state agency adopting the regulation makes a finding that it is
necessary for the health, safety, or welfare of the people of the
state that the regulation apply to businesses.

(e) Analyses conducted pursuant to this section are intended to
provide agencies and the public with tools to determine whether
the regulatory proposal is an efficient and effective means of
implementing the policy decisions enacted in statute or by other
provisions of law in the least burdensome manner. Regulatory
impact analyses shall inform the agencies and the public of the
economic consequences of regulatory choices, not reassess
statutory policy. The baseline for the regulatory analysis shall be
the most cost-effective set of regulatory measures that are equally
effective in achieving the purpose of the regulation in a manner
that ensures full compliance with the authorizing statute or other
law being implemented or made specific by the proposed
regulation.

(f) Each state agency proposing to adopt, amend, or repeal a
major regulation on or after November 1, 2013, and that has
prepared a standardized regulatory impact analysis pursuant to
subdivision (c), shall submit that analysis to the Department of
Finance upon completion. The department shall comment, within
30 days of receiving that analysis, on the extent to which the
analysis adheres to the regulations adopted pursuant to Section
11346.36. Upon receiving the comments from the department, the
agency may update its analysis to reflect any comments received
from the department and shall summarize the comments and the
response of the agency along with a statement of the results of the
updated analysis for the statement required by paragraph (10) of
subdivision (a) of Section 11346.5.

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SECTION 1.  

(a) The Legislature finds and declares that
engaging the private sector in building infrastructure related to
economic-related activities will further the opportunities of
California businesses and workers.

(b) Without a modern infrastructure network comprised of roads,
highways, railroads, and airports, landports, and seaports,
California will be unable to remain sufficiently connected to the
global economy.

(c) Finding appropriate means for partnering with private sector
infrastructure developers must be undertaken in a thoughtful way
that ensures workers, residents, and small businesses are not
negatively impacted or result in an unreasonable ability to
participate in the broader economy.

SEC. 2.  

Section 63010 of the Government Code is amended
to read:

63010.  

For purposes of this division, the following words and
terms shall have the following meanings unless the context clearly
indicates or requires another or different meaning or intent:

(a) “Act” means the Bergeson-Peace Infrastructure and
Economic Development Bank Act.

(b) “Bank” means the California Infrastructure and Economic
Development Bank.

(c) “Board” or “bank board” means the Board of Directors of
the California Infrastructure and Economic Development Bank.

(d) “Bond purchase agreement” means a contractual agreement
executed between the bank and a sponsor, or a special purpose
trust authorized by the bank or a sponsor, or both, whereby the
bank or special purpose trust authorized by the bank agrees to
purchase bonds of the sponsor for retention or sale.

(e) “Bonds” means bonds, including structured, senior, and
subordinated bonds or other securities; loans; notes, including
bond, revenue, tax, or grant anticipation notes; commercial paper;
floating rate and variable maturity securities; and any other
evidences of indebtedness or ownership, including certificates of
participation or beneficial interest, asset backed certificates, or
lease-purchase or installment purchase agreements, whether taxable
or excludable from gross income for federal income taxation
purposes.

(f) “Cost,” as applied to a project or portion thereof financed
under this division, means all or any part of the cost of construction,
renovation, and acquisition of all lands, structures, real or personal
property, rights, rights-of-way, franchises, licenses, easements,
and interests acquired or used for a project; the cost of demolishing
or removing any buildings or structures on land so acquired,
including the cost of acquiring any lands to which the buildings
or structures may be moved; the cost of all machinery, equipment,
and financing charges; interest prior to, during, and for a period
after completion of construction, renovation, or acquisition, as
determined by the bank; provisions for working capital; reserves
for principal and interest and for extensions, enlargements,
additions, replacements, renovations, and improvements; and the
cost of architectural, engineering, financial and legal services,
plans, specifications, estimates, administrative expenses, and other
expenses necessary or incidental to determining the feasibility of
any project or incidental to the construction, acquisition, or
financing of any project, and transition costs in the case of an
electrical corporation.

(g) “Economic development facilities” means real and personal
property, structures, buildings, equipment, and supporting
components thereof that are used to provide industrial, recreational,
research, commercial, utility, goods movement, or service
enterprise facilities, community, educational, cultural, or social
welfare facilities and any parts or combinations thereof, and all
facilities or infrastructure necessary or desirable in connection
therewith, including provision for working capital, but shall not
include any housing.

(h) “Electrical corporation” has the meaning set forth in Section
218 of the Public Utilities Code.

(i) “Executive director” means the Executive Director of the
California Infrastructure and Economic Development Bank
appointed pursuant to Section 63021.

(j) “Financial assistance” in connection with a project, includes,
but is not limited to, any combination of grants, loans, the proceeds
of bonds issued by the bank or special purpose trust, insurance,
guarantees or other credit enhancements or liquidity facilities, and
contributions of money, property, labor, or other things of value,
as may be approved by resolution of the board or the sponsor, or
both; the purchase or retention of bank bonds, the bonds of a
sponsor for their retention or for sale by the bank, or the issuance
of bank bonds or the bonds of a special purpose trust used to fund
the cost of a project for which a sponsor is directly or indirectly
liable, including, but not limited to, bonds, the security for which
is provided in whole or in part pursuant to the powers granted by
Section 63025; bonds for which the bank has provided a guarantee
or enhancement, including, but not limited to, the purchase of the
subordinated bonds of the sponsor, the subordinated bonds of a
special purpose trust, or the retention of the subordinated bonds
of the bank pursuant to Chapter 4 (commencing with Section
63060); or any other type of assistance deemed appropriate by the
bank or the sponsor, except that no direct loans shall be made to
nonpublic entities other than in connection with the issuance of
rate reduction bonds pursuant to a financing order or in connection
with a financing for an economic development facility.

For purposes of this subdivision, “grant” does not include grants
made by the bank except when acting as an agent or intermediary
for the distribution or packaging of financing available from
federal, private, or other public sources.

(k) “Financing order” has the meaning set forth in Section 840
of the Public Utilities Code.

(l) “Guarantee trust fund” means the California Infrastructure
Guarantee Trust Fund.

(m) “Infrastructure bank fund” means the California
Infrastructure and Economic Development Bank Fund.

(n) “Loan agreement” means a contractual agreement executed
between the bank or a special purpose trust and a sponsor that
provides that the bank or special purpose trust will loan funds to
the sponsor and that the sponsor will repay the principal and pay
the interest and redemption premium, if any, on the loan.

(o) “Participating party” means any person, company,
corporation, association; state, international, or municipal
governmental entity; partnership, firm, or other entity or group of
entities, whether organized for profit or not for profit, engaged in
business or operations within the state and that applies for financing
from the bank in conjunction with a sponsor for the purpose of
implementing a project. However, in the case of a project relating
to the financing of transition costs or the acquisition of transition
property, or both, on the request of an electrical corporation, or in
connection with financing for an economic development facility,
or for the financing of insurance claims, the participating party
shall be deemed to be the same entity as the sponsor for the
financing.

(p) “Project” means designing, acquiring, planning, permitting,
entitling, constructing, improving, extending, restoring, financing,
and generally developing public development facilities or economic
development facilities within the state or financing transition costs
or the acquisition of transition property, or both, upon approval of
a financing order by the Public Utilities Commission, as provided
in Article 5.5 (commencing with Section 840) of Chapter 4 of Part
1 of Division 1 of the Public Utilities Code.

(q) “Public development facilities” means real and personal
property, structures, conveyances, equipment, thoroughfares,
buildings, and supporting components thereof, excluding any
housing, that are directly related to providing the following:

(1) “City streets” including any street, avenue, boulevard, road,
parkway, drive, or other way that is any of the following:

(A) An existing municipal roadway.

(B) Is shown upon a plat approved pursuant to law and includes
the land between the street lines, whether improved or unimproved,
and may comprise pavement, bridges, shoulders, gutters, curbs,
guardrails, sidewalks, parking areas, benches, fountains, plantings,
lighting systems, and other areas within the street lines, as well as
equipment and facilities used in the cleaning, grading, clearance,
maintenance, and upkeep thereof.

(2) “County highways” including any county highway as defined
in Section 25 of the Streets and Highways Code, that includes the
land between the highway lines, whether improved or unimproved,
and may comprise pavement, bridges, shoulders, gutters, curbs,
guardrails, sidewalks, parking areas, benches, fountains, plantings,
lighting systems, and other areas within the street lines, as well as
equipment and facilities used in the cleaning, grading, clearance,
maintenance, and upkeep thereof.

(3) “Drainage, water supply, and flood control” including, but
not limited to, ditches, canals, levees, pumps, dams, conduits,
pipes, storm sewers, and dikes necessary to keep or direct water
away from people, equipment, buildings, and other protected areas
as may be established by lawful authority, as well as the
acquisition, improvement, maintenance, and management of
floodplain areas and all equipment used in the maintenance and
operation of the foregoing.

(4) “Educational facilities” including libraries, child care
facilities, including, but not limited to, day care facilities, and
employment training facilities.

(5) “Environmental mitigation measures” including required
construction or modification of public infrastructure and purchase
and installation of pollution control and noise abatement
equipment.

(6) “Parks and recreational facilities” including local parks,
recreational property and equipment, parkways, and property.

(7) “Port facilities” including airports, landports, waterports,
railports, docks, harbors, ports of entry, piers, ships, small boat
harbors and marinas, and any other facilities, additions, or
improvements in connection therewith that transport good or
persons.

(8) “Power and communications” including facilities for the
transmission or distribution of electrical energy, natural gas, and
telephone and telecommunications service.

(9) “Public transit” including air and rail transport, airports,
guideways, vehicles, rights-of-way, passenger stations,
maintenance and storage yards, and related structures, including
public parking facilities, and equipment used to provide or enhance
transportation by bus, rail, ferry, or other conveyance, either
publicly or privately owned, that provides to the public general or
special service on a regular and continuing basis.

(10) “Sewage collection and treatment” including pipes, pumps,
and conduits that collect wastewater from residential,
manufacturing, and commercial establishments, the equipment,
structures, and facilities used in treating wastewater to reduce or
eliminate impurities or contaminants, and the facilities used in
disposing of, or transporting, remaining sludge, as well as all
equipment used in the maintenance and operation of the foregoing.

(11) “Solid waste collection and disposal” including vehicles,
vehicle-compatible waste receptacles, transfer stations, recycling
centers, sanitary landfills, and waste conversion facilities necessary
to remove solid waste, except that which is hazardous as defined
by law, from its point of origin.

(12) “Water treatment and distribution” including facilities in
which water is purified and otherwise treated to meet residential,
manufacturing, or commercial purposes and the conduits, pipes,
and pumps that transport it to places of use.

(13) “Defense conversion” including, but not limited to, facilities
necessary for successfully converting military bases consistent
with an adopted base reuse plan.

(14) “Public safety facilities” including, but not limited to, police
stations, fire stations, court buildings, jails, juvenile halls, and
juvenile detention facilities.

(15) “State highways” including any state highway as described
in Chapter 2 (commencing with Section 230) of Division 1 of the
Streets and Highways Code, and the related components necessary
for safe operation of the highway.

(16) (A) “Military infrastructure” including, but not limited to,
facilities on or near a military installation, that enhance the military
operations and mission of one or more military installations in this
state. To be eligible for funding, the project shall be endorsed by
the Office of Planning and Research.

(B) For purposes of this subdivision, “military installation”
means any facility under the jurisdiction of the Department of
Defense, as defined in paragraph (1) of subsection (e) of Section
2687 of Title 10 of the United States Code.

(17) “Goods movement-related infrastructure” including port
facilities, roads, rail, and other facilities and projects that move
goods, energy, and information.

(r) “Rate reduction bonds” has the meaning set forth in Section
840 of the Public Utilities Code.

(s) “Revenues” means all receipts, purchase payments, loan
repayments, lease payments, and all other income or receipts
derived by the bank or a sponsor from the sale, lease, or other
financing arrangement undertaken by the bank, a sponsor, or a
participating party, including, but not limited to, all receipts from
a bond purchase agreement, and any income or revenue derived
from the investment of any money in any fund or account of the
bank or a sponsor and any receipts derived from transition property.
Revenues shall not include moneys in the General Fund of the
state.

(t) “Special purpose trust” means a trust, partnership, limited
partnership, association, corporation, nonprofit corporation, or
other entity authorized under the laws of the state to serve as an
instrumentality of the state to accomplish public purposes and
authorized by the bank to acquire, by purchase or otherwise, for
retention or sale, the bonds of a sponsor or of the bank made or
entered into pursuant to this division and to issue special purpose
trust bonds or other obligations secured by these bonds or other
sources of public or private revenues. Special purpose trust also
means any entity authorized by the bank to acquire transition
property or to issue rate reduction bonds, or both, subject to the
approvals by the bank and powers of the bank as are provided by
the bank in its resolution authorizing the entity to issue rate
reduction bonds.

(u) “Sponsor” means any subdivision of the state or local
government including departments, agencies, commissions, cities,
counties, nonprofit corporations formed on behalf of a sponsor,
special districts, assessment districts, and joint powers authorities
within the state or any combination of these subdivisions that
makes an application to the bank for financial assistance in
connection with a project in a manner prescribed by the bank. This
definition shall not be construed to require that an applicant have
an ownership interest in the project. In addition, an electrical
corporation shall be deemed to be the sponsor as well as the
participating party for any project relating to the financing of
transition costs and the acquisition of transition property on the
request of the electrical corporation and any person, company,
corporation, partnership, firm, or other entity or group engaged in
business or operation within the state that applies for financing of
any economic development facility, shall be deemed to be the
sponsor as well as the participating party for the project relating
to the financing of that economic development facility.

(v) “State” means the State of California.

(w) “Transition costs” has the meaning set forth in Section 840
of the Public Utilities Code.

(x) “Transition property” has the meaning set forth in Section
840 of the Public Utilities Code.

SEC. 3.  

Chapter 7 (commencing with Section 63090) is added
to Division 1 of Title 6.7 of the Government Code, to read:

 

Chapter  7. California Economic Development
Infrastructure Finance Act of 2015

 

Article 1.  Introduction

 

63090.  

(a) This chapter shall be known, and may be cited, as
the California Economic Development Infrastructure Act of 2015.

(b) Notwithstanding any other provision of this division, this
chapter shall not apply to any other activities, powers, and duties
of the bank under any of the other chapters of this division.

(c) Infrastructure development, enhancement, and modernization
is fundamental to the continued economic growth of the state. In
order to be successful in the integrated global economy, California
businesses and workers must have access to the necessary
infrastructure. Some of this infrastructure will be financed with
state moneys, while other infrastructure is more appropriately
funded privately.

(d) It is necessary to authorize the bank to serve as a conduit
financier, project advisor, and a project facilitator for infrastructure
that supports private economic development activities that provide
a meaningful benefit to the people of California.

(e) This chapter shall not supplant any infrastructure contracting
authority that a government entity has under a different law. A
state agency, with the approval of the bank board, may avail itself
of the process authorized by this chapter.

 

Article 2.  Definitions

 

63091.  

Unless the context otherwise requires, the definitions
in this section govern the construction of this chapter. The
definitions in this chapter shall apply only to this chapter and not
to any other provision of this division.

(a) “Bank” means the California Infrastructure and Economic
Development Bank.

(b) “Bank board” means the Board of Directors of the California
Infrastructure and Economic Development Bank.

(c) “California Infrastructure Development Center” means the
governmental unit within the bank with the administrative
responsibility for programs and activities authorized pursuant to
this chapter.

(d) “Corporation” means any business establishment or groups
of two or more business establishments that apply for and are
designated by the bank as a California Infrastructure Development
Partner.

(e) “Directives and requirements” means a document adopted
by the bank board setting forth policy direction as well as rules
governing a particular subject area.

(f) “Executive director” means the Executive Director of the
California Infrastructure and Economic Development Bank.

(g) “Participation rights” means a commitment by the state to
use a corporation to deliver infrastructure projects. Participation
rights include the right to compete for a public-private partnership
project or projects (P3 projects). If the corporation should be
chosen to participate, participation rights may include a
preestablished minimum participation rate in financing the P3
project or projects.

(h) “Program manager” means the manager of the California
Infrastructure Development Center as appointed by the executive
director of the bank.

(i) “Spring fed pool” means a list of corporations designated by
the bank board as a California Infrastructure Development Partner
through a request for information or request for proposal process.

 

Article 3.  Purpose

 

63092.  

The bank shall include the California Infrastructure
Finance Center that administers the California Economic
Development Infrastructure Act of 2015.

 

Article 4.  Administrative Structure

 

63093.  

(a) Upon the approval of the board, the bank may award
the participation rights to a corporation that meets the criteria in
directives and requirements established pursuant to subdivision
(f).

(b) (1) A corporation designated for inclusion within the spring
fed pool by the board may deliver infrastructure projects that have
been determined by statute as appropriate for financing through a
public-private partnership.

(2) Eligible infrastructure projects include goods movement,
public transit, solid waste collection and disposal, water treatment
and distribution, and defense conversion, as defined in Section
63010.

(3) The contract awarding the participation rights shall state the
rights and conditions of the agreement. At a minimum, the
agreement shall include the right of competition in each and all
P3 projects the state undertakes during the term of the contract
relating to the specific type of infrastructure identified in the
contract. The agreement may include, for projects the corporation
agrees to participate in, a preestablished minimum participation
rate in financing each and all P3 projects.

(4) No agreement shall be for longer than five years.

(5) The bank may cancel a contract for fraudulent activity and
poor performance as set forth in the directives and requirements
adopted pursuant to subdivision (f).

(c) The award of the participation rights may be reflected as an
equity investment by the state in either an individual project or the
corporation.

(d) The bank may employ consultants and advisers as may be
necessary in its judgment, in connection with the award of the
participation rights. Payment for these services shall be reimbursed
from fees received from an applicant for designation under this
section.

(e) The bank may charge a fee to recover the cost of making
designations and overseeing the act, including, but not limited to,
the cost of consultants and advisors. Operation costs may be
recovered from fee revenues upon appropriation by the Legislature
of the Infrastructure Development Account of the ____ Fund,
which is hereby established to receive those fee revenues.
Operation costs for the first two years may be borrowed from other
resources of the bank or the state, if approved by the Legislature,
and then repaid once corporations are designated and fees become
available.

(f) (1) Section 10295 of the Public Contract Code does not
apply to agreements entered into by the bank in connection with
the award of participation rights under this chapter.

(2) The bank board shall adopt directives and requirements
concerning the implementation of this chapter. These directives
and requirements shall include a process for receiving and
reviewing applications and entering into participation rights
agreements that meet the requirements of this section.

(g) The bank shall annually report on its activities related to the
duties and authorities in this section as part of the bank’s annual
report, as required in Section 63035.

63094.  

The program manager acting under the guidance of the
executive director shall do all of the following:

(a) Administer this chapter.

(b) Enter into participation rights agreements between the bank
and a corporation for services to be provided by the corporation
to the state under this chapter.

(c) Act as a liaison between corporations, other state and federal
agencies, lenders, and the Legislature.

end delete