BILL ANALYSIS Ó AB 1873 Page 1 Date of Hearing: May 11, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1873 (Holden) - As Amended April 19, 2016 ----------------------------------------------------------------- |Policy |Accountability and |Vote:|7 - 2 | |Committee: |Administrative Review | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill establishes a Board of Infrastructure Planning, Development, and Finance within the Office of Planning and Research. Specifically, this bill: AB 1873 Page 2 1)Designates the following as members of the Board: a) Governor b) Treasurer c) Controller d) Secretary of Transportation e) Director of General Services f) One member appointed by the Senate President pro Tempore g) One member appointed by the Assembly Speaker 2)Requires the Board to categorize and recommend the priority of the state's infrastructure needs and develop funding to finance those projects. FISCAL EFFECT: Under current law, the Department of Finance is required to annually develop a five-year state infrastructure plan for inclusion in the Governor's annual budget. While this would seem to provide a foundation for the Board's work, based on the description below, the Board work is to encompass both state and AB 1873 Page 3 local infrastructure. (Curiously, the board includes no representatives of local government.) Identifying priorities and funding mechanisms for state and local could be a comprehensive exercise requiring several staff positions at a cost of several hundred thousand dollars for the initial work product. COMMENTS: Purpose. 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. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081 AB 1873 Page 4