BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1873


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          Date of Hearing:  April 13, 2016


           ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW


                               Cristina Garcia, Chair


          AB 1873  
          (Holden) - As Amended March 18, 2016


          SUBJECT:  Strategic Growth Council:  Board of Infrastructure  
          Planning, Development, and Finance


          SUMMARY:  Creates the Board of Infrastructure Planning,  
          Development, and Finance (Board) within the Strategic Growth  
          Council (SGC).  Specifically, this bill:


          1)Specifies the membership of the Board as follows:


             a)   Governor;


             b)   Treasurer;


             c)   Controller;


             d)   Secretary of Transportation;


             e)   Director of the Department of General Services;









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             f)   A member selected by the pro Tempore of the Senate; and,


             g)   A member selected by the Speaker of the Assembly 


          2)Directs the Board to categorize and recommend the priority of  
            the state's infrastructure needs and to develop funding to  
            finance infrastructure projects. 


          EXISTING LAW requires the Department of Finance to develop and  
          update a five year infrastructure plan and make recommendations  
          to the Governor for inclusion in the state budget.


          FISCAL EFFECT:  Unknown


          COMMENTS:  California's infrastructure is broad and diverse,  
          consisting not only of roads and bridges, but parks, schools,  
          hospitals, office buildings, and a variety of other structures  
          needed to meet the state's mission of serving the people of  
          California.  The author states, "California presently lacks a  
          unified body to oversee all infrastructure planning and project  
          development, resulting in California's infrastructure needs  
          frequently being addressed on a subject-by-subject basis, and  
          only once a portion of the state's infrastructure has reached  
          the point of near-failure."


          To alleviate this perceived lack of unitary planning the author  
          proposes to create a new government entity.  The Board  
          established by this bill would be meant to oversee the planning  
          and financing of infrastructure projects at all levels of  
          government throughout the state, including local governments and  
          special districts.









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          The sponsor of this bill, the State Treasurer, notes, "The state  
          faces a significant challenge finding enough money to replace,  
          repair and expand public facilities, even though doing so is  
          essential for social welfare and a growing economy."  


          This bill places the new Board within the SGC which is located  
          within the Natural Resource Agency.  However, the SGC is tasked  
          with identifying, reviewing and coordinating funding programs of  
          its member state agencies to improve air and water quality.   
          Given the author's stated goal of creating a board that can  
          assess the state's aggregate infrastructure needs, it seems the  
          SGC is too narrowly focused.  The author may wish to consider  
          placing the Board within a department or agency that has a more  
          statewide perspective.


          Additionally, the Board does not appear to have any authority  
          beyond categorizing and recommending the priority of the state's  
          infrastructure needs.  The Board is also tasked with developing  
          funding to finance infrastructure projects, but it is not clear  
          what authority the Board has to accomplish this goal.


          SUGGESTED AMENDMENTS:  Committee staff recommends the following  
          amendments:


          1)Move the location of the Board from the SGC to the Governor's  
            Office of Planning and Research;


          2)Add language to the bill that allows the members of the Board  
            to send a designee in their place;


          3)Replace the Board with a Task Force.









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          REGISTERED SUPPORT / OPPOSITION:




          Support


          California State Treasurer (sponsor)




          Opposition


          None on file




          Analysis Prepared by:William Herms / A. & A.R. / (916) 319-3600