BILL ANALYSIS Ó
AB 1393
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Date of Hearing: May 20, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
1393 (Burke) - As Amended May 18, 2015
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|Policy |Banking and Finance |Vote:|11 - 0 |
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| |JEDE |Vote:|8 - 0 |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill clarifies the statutory authority of the California
Pollution Control Financing Authority (CPCFA) to participate in
alternative funding source programs, including loan loss reserve
programs, to benefit individuals, companies, and public
agencies, and offer greater financial assistance through use of
grants, loans, and credit enhancements.
AB 1393
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FISCAL EFFECT:
Minor and absorbable costs to CPCFA to administer program
changes; possible increase in loan participation and volume over
time as a result of implementing new funding programs.
COMMENTS:
1)Purpose. According to the sponsor, the California State
Treasurer, CPCFA receives many requests from state agencies to
develop and administer new alternative financing programs to
encourage growth, provide economic relief, and leverage
private capital. AB 1393 clarifies CPCFA has statutory
authority to create a range of financing strategies, each of
which could be adopted pursuant to program-specific
rulemaking. The bill expands CPCFA's ability to offer a loan
loss reserve program to lenders to enhance loans offered to
individual consumers, permits joint powers authorities and
other public entities to be the borrower or beneficiary of
these programs, and creates credit enhancement programs that
vary from standard loan loss reserve structures. The sponsor
believes this authority will also help it provide loans to
those that need the most help, including new wells for drought
relief and support for clean, efficient cars for members of
low-income communities.
2)California Pollution Control Financing Authority. CPCFA was
established in 1975, and initially focused its efforts on
issuing private activity bonds to fund pollution control
projects. More recently, however, CPCFA has focused on its
Capital Access Loan Program, which helps participating
financial institutions extend credit to small businesses for
start-up, expansion, and working capital. Recent examples of
assistance include projects to purchase clean-air vehicles by
AB 1393
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waste management companies, construct and operate anaerobic
digesters, recycle used oil, convert animal waste into clean
fuel, and develop construction and demolition debris recycling
programs. According to the Treasurer, CPCFA's current funds
would not be impacted by the expansion of authority in this
bill, but the Treasurer anticipates increased loan volume and
participation in the expanded programs.
Analysis Prepared by:Joel Tashjian / APPR. / (916)
319-2081