Amended in Senate August 31, 2015

Amended in Assembly May 13, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1533


Introduced by Committee on Jobs, Economic Development, and the Economy (Assembly Members Eduardo Garcia (Chair), Kim (Vice Chair), Chau, Chu, Gipson, and Irwin)

March 24, 2015


An act tobegin insert repeal and add Section 12098.7 of, and toend insert amend Section 63010 of,begin delete and to amend and renumber Section 12098.7 of,end delete the Government Code, relating to state government.

LEGISLATIVE COUNSEL’S DIGEST

AB 1533, as amended, Committee on Jobs, Economic Development, and the Economy. Infrastructure financing.

(1) 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.

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.

(2) Existing law authorizes the Governor’s Office of Business and Economic Development and its director to expendbegin delete specifiedend delete fundsbegin insert relating to the Economic Adjustment Assistance Grant funded through the United States Economic Development Administrationend insert.

This bill wouldbegin delete renumber this provisionsend deletebegin insert repeal these provisionsend insert, and wouldbegin delete instead authorize the California Infrastructure and Economic Development Bank and its executive director to expend these funds, as specifiedend deletebegin insert specify that, effective June 30, 2014, those funds are transferred to the Valley Economic Development Corporation pursuant to the terms and conditions agreed to by the United States Economic Development Administration, the Governor’s Office of Business and Economic Development, and the Valley Economic Development Center, Inc., on that dateend insert.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 12098.7 of the end insertbegin insertGovernment Codeend insertbegin insert is
2repealed.end insert

begin delete
3

12098.7.  

(a) Notwithstanding any other law, effective January
41, 2008, the Economic Adjustment Assistance Grant funded
5through the United States Economic Development Administration
6under Title IX of the Public Works and Economic Development
7Act of 1965 (Grant No. 07-19-02709 and 07-19-2709.1) shall be
8administered by the director, and, for the purpose of state
9administration of this grant, the director shall be deemed to be the
10successor to the former Secretary of Business, Transportation and
11Housing and the former Secretary of Technology, Trade and
12Commerce. The director may assign and contract administration
13of the grant to a public agency created pursuant to Chapter 5
14(commencing with Section 6500) of Division 7 of Title 1.

15(b) On January 1, 2008, all federal moneys held in the Sudden
16and Severe Economic Dislocation Grant Account within the Special
17Deposit Fund are hereby transferred to the Small Business
18Expansion Fund created pursuant to Section 14030 of the
19Corporations Code for expenditure by the office pursuant to Article
209 (commencing with Section 14070) of the Corporations Code for
21purposes of the Sudden and Severe Economic Dislocation Grant
P3    1program, or other purposes permitted by the cognizant federal
2agency.

3(c) All loan repayments received on or after January 1, 2008,
4for the Sudden and Severe Economic Dislocation Grant program
5loans issued pursuant to former Section 15327 (repealed by Section
61.8 of Chapter 229 of the Statutes of 2003 (AB 1757)) and this
7section, shall be deposited into the Small Business Expansion Fund
8and shall be available to the office for expenditure pursuant to the
9provisions of Article 9 (commencing with Section 14070) of the
10Corporations Code for the Sudden and Severe Economic
11Dislocation Grant program, or other purposes permitted by the
12cognizant federal agency.

end delete
13begin insert

begin insertSEC. end insertbegin insert2.end insert  

end insert

begin insertSection 12098.7 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
14read:end insert

begin insert
15

begin insert12098.7.end insert  

Notwithstanding any other law, effective June 30,
162014, the Economic Adjustment Assistance Grant funded through
17the United States Economic Development Administration under
18Title IX of the Public Works and Economic Development Act of
191965 (Grant No. 07-19-02709 and 07-19-2709.01) shall be
20transferred to the Valley Economic Development Center, Inc. The
21State of California is the dismissed grantee and the Valley
22Economic Development Center, Inc., shall be the successor
23grantee. All responsibilities and authorities associated with these
24funds shall be transferred from the Governor’s Office of Business
25and Economic Development to the Valley Economic Development
26Center, Inc., pursuant to the terms and conditions agreed to by all
27parties, including the United States Economic Development
28Administration, the Governor’s Office of Business and Economic
29Development, and the Valley Economic Development Center, Inc.,
30pursuant to the Offer and Acceptance of Award Amendment For
31Transfer of Award entered into by the parties on June 17, 2014.

end insert
32

begin deleteSECTION 1.end delete
33begin insertSEC. 3.end insert  

Section 63010 of the Government Code is amended
34to read:

35

63010.  

For purposes of this division, the following words and
36terms shall have the following meanings unless the context clearly
37indicates or requires another or different meaning or intent:

38(a) “Act” means the Bergeson-Peace Infrastructure and
39Economic Development Bank Act.

P4    1(b) “Bank” means the California Infrastructure and Economic
2Development Bank.

3(c) “Board” or “bank board” means the Board of Directors of
4the California Infrastructure and Economic Development Bank.

5(d) “Bond purchase agreement” means a contractual agreement
6executed between the bank and a sponsor, or a special purpose
7trust authorized by the bank or a sponsor, or both, whereby the
8bank or special purpose trust authorized by the bank agrees to
9purchase bonds of the sponsor for retention or sale.

10(e) “Bonds” means bonds, including structured, senior, and
11subordinated bonds or other securities; loans; notes, including
12bond, revenue, tax, or grant anticipation notes; commercial paper;
13floating rate and variable maturity securities; and any other
14evidences of indebtedness or ownership, including certificates of
15participation or beneficial interest, asset backed certificates, or
16lease-purchase or installment purchase agreements, whether taxable
17or excludable from gross income for federal income taxation
18purposes.

19(f) “Cost,” as applied to a project or portion thereof financed
20under this division, means all or any part of the cost of construction,
21renovation, and acquisition of all lands, structures, real or personal
22property, rights, rights-of-way, franchises, licenses, easements,
23and interests acquired or used for a project; the cost of demolishing
24or removing any buildings or structures on land so acquired,
25including the cost of acquiring any lands to which the buildings
26or structures may be moved; the cost of all machinery, equipment,
27and financing charges; interest prior to, during, and for a period
28after completion of construction, renovation, or acquisition, as
29determined by the bank; provisions for working capital; reserves
30for principal and interest and for extensions, enlargements,
31additions, replacements, renovations, and improvements; and the
32cost of architectural, engineering, financial and legal services,
33plans, specifications, estimates, administrative expenses, and other
34expenses necessary or incidental to determining the feasibility of
35any project or incidental to the construction, acquisition, or
36financing of any project, and transition costs in the case of an
37electrical corporation.

38(g) “Economic development facilities” means real and personal
39property, structures, buildings, equipment, and supporting
40components thereof that are used to provide industrial, recreational,
P5    1research, commercial, utility, goods movement, or service
2enterprise facilities, community, educational, cultural, or social
3welfare facilities and any parts or combinations thereof, and all
4facilities or infrastructure necessary or desirable in connection
5therewith, including provision for working capital, but shall not
6include any housing.

7(h) “Electrical corporation” has the meaning set forth in Section
8218 of the Public Utilities Code.

9(i) “Executive director” means the Executive Director of the
10California Infrastructure and Economic Development Bank
11appointed pursuant to Section 63021.

12(j) “Financial assistance” in connection with a project, includes,
13but is not limited to, any combination of grants, loans, the proceeds
14of bonds issued by the bank or special purpose trust, insurance,
15guarantees or other credit enhancements or liquidity facilities, and
16contributions of money, property, labor, or other things of value,
17as may be approved by resolution of the board or the sponsor, or
18both; the purchase or retention of bank bonds, the bonds of a
19sponsor for their retention or for sale by the bank, or the issuance
20of bank bonds or the bonds of a special purpose trust used to fund
21the cost of a project for which a sponsor is directly or indirectly
22liable, including, but not limited to, bonds, the security for which
23is provided in whole or in part pursuant to the powers granted by
24Section 63025.1; bonds for which the bank has provided a
25guarantee or enhancement, including, but not limited to, the
26purchase of the subordinated bonds of the sponsor, the subordinated
27bonds of a special purpose trust, or the retention of the subordinated
28bonds of the bank pursuant to Chapter 4 (commencing with Section
2963060); or any other type of assistance deemed appropriate by the
30bank or the sponsor, except that no direct loans shall be made to
31nonpublic entities other than in connection with the issuance of
32rate reduction bonds pursuant to a financing order or in connection
33with a financing for an economic development facility.

34For purposes of this subdivision, “grant” does not include grants
35made by the bank except when acting as an agent or intermediary
36for the distribution or packaging of financing available from
37federal, private, or other public sources.

38(k) “Financing order” has the meaning set forth in Section 840
39of the Public Utilities Code.

P6    1(l) “Guarantee trust fund” means the California Infrastructure
2Guarantee Trust Fund.

3(m) “Infrastructure bank fund” means the California
4Infrastructure and Economic Development Bank Fund.

5(n) “Loan agreement” means a contractual agreement executed
6between the bank or a special purpose trust and a sponsor that
7provides that the bank or special purpose trust will loan funds to
8the sponsor and that the sponsor will repay the principal and pay
9the interest and redemption premium, if any, on the loan.

10(o) “Participating party” means any person, company,
11corporation, association, state, or municipal governmental entity,
12partnership, firm, or other entity or group of entities, whether
13organized for profit or not for profit, engaged in business or
14operations within the state and that applies for financing from the
15bank in conjunction with a sponsor for the purpose of implementing
16a project. However, in the case of a project relating to the financing
17of transition costs or the acquisition of transition property, or both,
18on the request of an electrical corporation, or in connection with
19financing for an economic development facility, or for the financing
20of insurance claims, the participating party shall be deemed to be
21the same entity as the sponsor for the financing.

22(p) “Project” means designing, acquiring, planning, permitting,
23entitling, constructing, improving, extending, restoring, financing,
24and generally developing public development facilities or economic
25development facilities within the state or financing transition costs
26or the acquisition of transition property, or both, upon approval of
27a financing order by the Public Utilities Commission, as provided
28in Article 5.5 (commencing with Section 840) of Chapter 4 of Part
291 of Division 1 of the Public Utilities Code.

30(q) “Public development facilities” means real and personal
31property, structures, conveyances, equipment, thoroughfares,
32buildings, and supporting components thereof, excluding any
33housing, that are directly related to providing the following:

34(1) “City streets” including any street, avenue, boulevard, road,
35parkway, drive, or other way that is any of the following:

36(A) An existing municipal roadway.

37(B) Is shown upon a plat approved pursuant to law and includes
38the land between the street lines, whether improved or unimproved,
39and may comprise pavement, bridges, shoulders, gutters, curbs,
40guardrails, sidewalks, parking areas, benches, fountains, plantings,
P7    1lighting systems, and other areas within the street lines, as well as
2equipment and facilities used in the cleaning, grading, clearance,
3maintenance, and upkeep thereof.

4(2) “County highways” including any county highway as defined
5in Section 25 of the Streets and Highways Code, that includes the
6land between the highway lines, whether improved or unimproved,
7and may comprise pavement, bridges, shoulders, gutters, curbs,
8guardrails, sidewalks, parking areas, benches, fountains, plantings,
9lighting systems, and other areas within the street lines, as well as
10equipment and facilities used in the cleaning, grading, clearance,
11maintenance, and upkeep thereof.

12(3) “Drainage, water supply, and flood control” including, but
13not limited to, ditches, canals, levees, pumps, dams, conduits,
14pipes, storm sewers, and dikes necessary to keep or direct water
15away from people, equipment, buildings, and other protected areas
16as may be established by lawful authority, as well as the
17acquisition, improvement, maintenance, and management of
18floodplain areas and all equipment used in the maintenance and
19operation of the foregoing.

20(4) “Educational facilities” including libraries, child care
21facilities, including, but not limited to, day care facilities, and
22employment training facilities.

23(5) “Environmental mitigation measures” including required
24construction or modification of public infrastructure and purchase
25and installation of pollution control and noise abatement
26equipment.

27(6) “Parks and recreational facilities” including local parks,
28recreational property and equipment, parkways, and property.

29(7) “Port facilities” including airports, landports, waterports,
30railports, docks, harbors, ports of entry, piers, ships, small boat
31harbors and marinas, and any other facilities, additions, or
32improvements in connection therewith, that transport goods or
33persons.

34(8) “Power and communications” including facilities for the
35transmission or distribution of electrical energy, natural gas, and
36telephone and telecommunications service.

37(9) “Public transit” including air and rail transport, airports,
38guideways, vehicles, rights-of-way, passenger stations,
39maintenance and storage yards, and related structures, including
40public parking facilities, and equipment used to provide or enhance
P8    1transportation by bus, rail, ferry, or other conveyance, either
2publicly or privately owned, that provides to the public general or
3special service on a regular and continuing basis.

4(10) “Sewage collection and treatment” including pipes, pumps,
5and conduits that collect wastewater from residential,
6manufacturing, and commercial establishments, the equipment,
7structures, and facilities used in treating wastewater to reduce or
8eliminate impurities or contaminants, and the facilities used in
9disposing of, or transporting, remaining sludge, as well as all
10equipment used in the maintenance and operation of the foregoing.

11(11) “Solid waste collection and disposal” including vehicles,
12vehicle-compatible waste receptacles, transfer stations, recycling
13centers, sanitary landfills, and waste conversion facilities necessary
14to remove solid waste, except that which is hazardous as defined
15by law, from its point of origin.

16(12) “Water treatment and distribution” including facilities in
17which water is purified and otherwise treated to meet residential,
18manufacturing, or commercial purposes and the conduits, pipes,
19and pumps that transport it to places of use.

20(13) “Defense conversion” including, but not limited to, facilities
21necessary for successfully converting military bases consistent
22with an adopted base reuse plan.

23(14) “Public safety facilities” including, but not limited to, police
24stations, fire stations, court buildings, jails, juvenile halls, and
25juvenile detention facilities.

26(15) “State highways” including any state highway as described
27in Chapter 2 (commencing with Section 230) of Division 1 of the
28Streets and Highways Code, and the related components necessary
29for safe operation of the highway.

30(16) (A) “Military infrastructure,” including, but not limited
31to, facilities on or near a military installation, that enhance the
32military operations and mission of one or more military
33installations in this state. To be eligible for funding, the project
34shall be endorsed by the Office of Planning and Research.

35(B) For purposes of this subdivision, “military installation”
36means any facility under the jurisdiction of the Department of
37Defense, as defined in paragraph (1) of subsection (e) of Section
382687 of Title 10 of the United States Code.

P9    1(17) “Goods movement-related infrastructure” including port
2facilities, roads, rail, and other facilities and projects that move
3goods, energy, and information.

4(r) “Rate reduction bonds” has the meaning set forth in Section
5840 of the Public Utilities Code.

6(s) “Revenues” means all receipts, purchase payments, loan
7repayments, lease payments, and all other income or receipts
8derived by the bank or a sponsor from the sale, lease, or other
9financing arrangement undertaken by the bank, a sponsor, or a
10participating party, including, but not limited to, all receipts from
11a bond purchase agreement, and any income or revenue derived
12from the investment of any money in any fund or account of the
13bank or a sponsor and any receipts derived from transition property.
14Revenues shall not include moneys in the General Fund of the
15state.

16(t) “Special purpose trust” means a trust, partnership, limited
17partnership, association, corporation, nonprofit corporation, or
18other entity authorized under the laws of the state to serve as an
19instrumentality of the state to accomplish public purposes and
20authorized by the bank to acquire, by purchase or otherwise, for
21retention or sale, the bonds of a sponsor or of the bank made or
22entered into pursuant to this division and to issue special purpose
23trust bonds or other obligations secured by these bonds or other
24sources of public or private revenues. Special purpose trust also
25means any entity authorized by the bank to acquire transition
26property or to issue rate reduction bonds, or both, subject to the
27approvals by the bank and powers of the bank as are provided by
28the bank in its resolution authorizing the entity to issue rate
29reduction bonds.

30(u) “Sponsor” means any subdivision of the state or local
31government including departments, agencies, commissions, cities,
32counties, nonprofit corporations formed on behalf of a sponsor,
33special districts, assessment districts, and joint powers authorities
34within the state or any combination of these subdivisions that
35makes an application to the bank for financial assistance in
36connection with a project in a manner prescribed by the bank. This
37definition shall not be construed to require that an applicant have
38an ownership interest in the project. In addition, an electrical
39corporation shall be deemed to be the sponsor as well as the
40participating party for any project relating to the financing of
P10   1transition costs and the acquisition of transition property on the
2request of the electrical corporation and any person, company,
3corporation, partnership, firm, or other entity or group engaged in
4business or operation within the state that applies for financing of
5any economic development facility, shall be deemed to be the
6sponsor as well as the participating party for the project relating
7to the financing of that economic development facility.

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

9(w) “Transition costs” has the meaning set forth in Section 840
10of the Public Utilities Code.

11(x) “Transition property” has the meaning set forth in Section
12840 of the Public Utilities Code.

begin delete
13

SEC. 2.  

Section 12098.7 of the Government Code is amended
14and renumbered to read:

15

63089.63.  

(a) Notwithstanding any other law, effective January
161, 2008, the Economic Adjustment Assistance Grant funded
17through the United States Economic Development Administration
18under Title IX of the Public Works and Economic Development
19Act of 1965 (Grant No. 07-19-02709 and 07-19-2709.1) shall be
20administered by the director, and, for the purpose of state
21administration of this grant, the executive director shall be deemed
22to be the successor to the Director of the Governor’s Office of
23Business and Economic Development and the former Secretary
24of Business, Transportation and Housing and the former Secretary
25of Technology, Trade and Commerce. The executive director may
26assign and contract administration of the grant to a public agency
27created pursuant to Chapter 5 (commencing with Section 6500)
28of Division 7 of Title 1.

29(b) On January 1, 2008, all federal moneys held in the Sudden
30and Severe Economic Dislocation Grant Account within the Special
31Deposit Fund are hereby transferred to the Small Business
32Expansion Fund created pursuant to Section 63089.5 of the
33Government Code for expenditure by the office pursuant to Chapter
346 (commencing with Section 63088) of the Government Code for
35purposes of the Sudden and Severe Economic Dislocation Grant
36program, or other purposes permitted by the cognizant federal
37agency.

38(c) All loan repayments received on or after January 1, 2008,
39for the Sudden and Severe Economic Dislocation Grant program
40loans issued pursuant to former Section 15327 (repealed by Section
P11   11.8 of Chapter 229 of the Statutes of 2003 (AB 1757)) and this
2section, shall be deposited into the Small Business Expansion Fund
3and shall be available to the office for expenditure pursuant to the
4provisions of Chapter 6 (commencing with Section 63088) of the
5Government Code for the Sudden and Severe Economic
6Dislocation Grant program, or other purposes permitted by the
7cognizant federal agency.

end delete


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