BILL ANALYSIS Ó AB 1873 Page 1 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; AB 1873 Page 2 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. AB 1873 Page 3 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. AB 1873 Page 4 REGISTERED SUPPORT / OPPOSITION: Support California State Treasurer (sponsor) Opposition None on file Analysis Prepared by:William Herms / A. & A.R. / (916) 319-3600