BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1873


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          Date of Hearing:  May 11, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          1873 (Holden) - As Amended April 19, 2016


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          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: 









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          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  








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          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


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