Amended in Assembly April 6, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2841

Introduced by Assembly Member Travis Allen

February 19, 2016

An act begin insert to amend Section 63025.1 of the Government Code, and end insert to add Chapter 4 (commencing with Section 1719.1) to Part 1 of Division 6 of the Harbors and Navigation Code, relating to seaport infrastructure financing.

LEGISLATIVE COUNSEL’S DIGEST

AB 2841, as amended, Travis Allen. State infrastructure financing for seaports.

Existing law authorizes begin delete port or harbor infrastructure projects to be financed by an enhanced end delete begin insert the formation of a seaport end insert infrastructure financing begin delete district. end delete begin insert district to finance port or harbor infrastructure projects. end insert Existing law requires that a harbor begin delete agency end delete begin insert agency, as defined, end insert prepare an infrastructure financing plan begin delete for end delete begin insert as part of a proposal to form end insert a seaport infrastructure financing district, begin delete defined as an enhanced infrastructure financing district that finances port or harbor infrastructure, end delete and requires that the plan meet specified requirements. Existing law authorizes begin delete an enhanced end delete begin insert a seaport end insert infrastructure financing district to fund infrastructure projects through tax increment financing, begin delete pursuant to end delete begin insert consistent with end insert the infrastructure financing plan and begin insert with end insert the agreement of begin insert the new seaport infrastructure financing district’s end insert affected taxing entities.

Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank begin delete Act end delete begin insert Act, end insert establishes the Infrastructure and Economic Development Bank within the Governor’s Office of Business and Economic Development, and requires the bank to establish criteria, priorities, and guidelines for the selection of projects to receive financial assistance from the bank, including, but not limited to, any combination of grants, loans, and the proceeds of bonds issued by the bank.

This bill would begin delete authorize a harbor agency, as defined, to prepare a proposed financing plan to be submitted to the bank to finance infrastructure development or equipment, and end delete begin insert require the bank, after consulting with appropriate state and local agencies, to establish criteria, priorities, and guidelines for the selection of infrastructure development and equipment purchase projects submitted by harbor agencies, as defined, for assistance from the bank, as specified. The bill end insert would require the begin delete plan to include end delete begin insert harbor agency to adopt a resolution that includes end insert specified begin delete information including end delete begin insert information, including, among others, end insert the state fiscal and economic begin delete impacts, including increased jobs and tax revenues and state fund savings, end delete begin insert impacts end insert estimated to result from the proposed begin delete project. end delete begin insert infrastructure development or equipment purchase project. end insert The bill would require the bank to begin delete consider a project proposal and to end delete approve the begin delete financing of it end delete begin insert infrastructure development and equipment purchase project end insert if the begin delete project meets specified requirements, including that the State Lands Commission has verified that the proposed project is consistent with the state tidelands trust and any conditions of a grant of trust lands to a harbor agency and a finding by the end delete bank begin insert finds end insert that the project is more likely than not to result in the begin insert harbor agency’s end insert estimated state fiscal and economic impacts. The bill would begin delete limit the amount of financing provided, as specified, and would end delete authorize the bank to begin delete provide end delete begin insert require the harbor agency to meet a specified condition prior to providing end insert the begin delete financing only upon an appropriation of funds for that purpose. end delete begin insert moneys appropriated by the Legislature for the infrastructure development and equipment purchase project. end insert

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

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

SECTION 1.  

The Legislature finds and declares all of the
following:

(a) The primary purpose of this act is to encourage the
development and growth of, and to encourage and help finance
the further investment in, and subsequent increased use of,
California’s public port facilities and the introduction of
zero-emission and near-zero-emission equipment and supporting
infrastructure at California’s public port facilities.

(b) The statewide interest in the need to continually invest in
California’s public port infrastructure is predicated on the fact that
California’s public seaports and the international trade that they
facilitate are critical components of the state economy, directly or
indirectly employing millions of Californians, contributing billions
of dollars in economic activity, and generating significant local
and state tax revenues as a result of this activity. As such, our ports
must be given the ability to successfully compete for cargo volume,
attract new trade, and continue to grow.

(c) The development, improvement, expansion, and maintenance
of the state’s public ports and port infrastructure facilities, and the
utilization of public port facilities for the export and import of
cargo to or from distribution, manufacturing, fabrication, assembly,
processing, transloading, and warehousing sites in begin delete California end delete
begin insert California, end insert are matters of statewide significance that are essential
to the growth of the state’s economic well-being and the ability of
those businesses and workers associated with trade-related
industries to continue to compete cost-effectively on a regional,
national, and global scale.

(d) In addition to the vast matters of statewide significance in
the economic impacts derived from all of California’s public ports,
the state’s interest in the reduction of mobile source emissions
from the freight sector and supply chain, including those emissions
from sources that operate at ports, are also matters of statewide
significance. In consideration of these environmental matters, the
state has a paramount interest in creating incentives that will
precipitate early investment by the industry in the newest
generation of zero-emission and near-zero-emission equipment
and supporting infrastructure at marine terminals and port facilities.
Due to the costs of those investments over and above the use of
traditional equipment, this is an infrastructure need that cannot be
met by private investment alone, and therefore public financing
mechanisms and the implementation of public-private partnerships
are required to support this new investment.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 63025.1 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

63025.1.  

The bank board may do or delegate the following to
the executive director:

(a) Sue and be sued in its own name.

(b) As provided in Chapter 5 (commencing with Section 63070),
issue bonds and authorize special purpose trusts to issue bonds,
including, at the option of the board, bonds bearing interest that
is taxable for the purpose of federal income taxation, or borrow
money to pay all or any part of the cost of any project, or to
otherwise carry out the purposes of this division.

(c) Engage the services of private consultants to render
professional and technical assistance and advice in carrying out
the purposes of this division.

(d) Employ attorneys, financial consultants, and other advisers
as may, in the bank’s judgment, be necessary in connection with
the issuance and sale, or authorization of special purpose trusts for
the issuance and sale, of any bonds, notwithstanding Sections
11042 and 11043.

(e) Contract for engineering, architectural, accounting, or other
services of appropriate state agencies as may, in its judgment, be
necessary for the successful development of a project.

(f) Pay the reasonable costs of consulting engineers, architects,
accountants, and construction, land use, recreation, and
environmental experts employed by any sponsor or participating
party if, in the bank’s judgment, those services are necessary for
the successful development of a project.

(g) Acquire, take title to, and sell by installment sale or
otherwise, lands, structures, real or personal property, rights,
rights-of-way, franchises, easements, and other interests in lands
that are located within the state, or transition property as the bank
may deem necessary or convenient for the financing of the project,
upon terms and conditions that it considers to be reasonable.

(h) Receive and accept from any source including, but not
limited to, the federal government, the state, or any agency thereof,
loans, contributions, or grants, in money, property, labor, or other
things of value, for, or in aid of, a project, or any portion thereof.

(i) Make loans to any sponsor or participating party, either
directly or by making a loan to a lending institution, in connection
with the financing of a project in accordance with an agreement
between the bank and the sponsor or a participating party, either
as a sole lender or in participation with other lenders. However,
no loan shall exceed the total cost of the project as determined by
the sponsor or the participating party and approved by the bank.

(j) Make loans to any sponsor or participating party, either
directly or by making a loan to a lending institution, in accordance
with an agreement between the bank and the sponsor or
participating party to refinance indebtedness incurred by the
sponsor or participating party in connection with projects
undertaken and completed prior to any agreement with the bank
or expectation that the bank would provide financing, either as a
sole lender or in participation with other lenders.

(k) Mortgage all or any portion of the bank’s interest in a project
and the property on which any project is located, whether owned
or thereafter acquired, including the granting of a security interest
in any property, tangible or intangible.

(l) Assign or pledge all or any portion of the bank’s interests in
transition property and the revenues therefrom, or assets, things
of value, mortgages, deeds of trust, bonds, bond purchase
agreements, loan agreements, indentures of mortgage or trust, or
similar instruments, notes, and security interests in property,
tangible or intangible and the revenues therefrom, of a sponsor or
a participating party to which the bank has made loans, and the
revenues therefrom, including payment or income from any interest
owned or held by the bank, for the benefit of the holders of bonds.

(m) Make, receive, or serve as a conduit for the making of, or
otherwise provide for, grants, contributions, guarantees, insurance,
credit enhancements or liquidity facilities, or other financial
enhancements to a sponsor or a participating party as financial
assistance for a project.

(n) Lease the project being financed to a sponsor or a
participating party, upon terms and conditions that the bank deems
proper but shall not be leased at a loss; charge and collect rents
therefor; terminate any lease upon the failure of the lessee to
comply with any of the obligations thereof; include in any lease,
if desired, provisions that the lessee shall have options to renew
the lease for a period or periods, and at rents determined by the
bank; purchase any or all of the project; or, upon payment of all
the indebtedness incurred by the bank for the financing of the
project, the bank may convey any or all of the project to the lessee
or lessees.

(o) Charge and equitably apportion among sponsors and
participating parties the bank’s administrative costs and expenses
incurred in the exercise of the powers and duties conferred by this
division.

(p) Issue, obtain, or aid in obtaining, from any department or
agency of the United States, from other agencies of the state, or
from any private company, any insurance or guarantee to, or for,
the payment or repayment of interest or principal, or both, or any
part thereof, on any loan, lease, or obligation or any instrument
evidencing or securing the same, made or entered into pursuant to
this division.

(q) Notwithstanding any other provision of this division, enter
into any agreement, contract, or any other instrument with respect
to any insurance or guarantee; accept payment in the manner and
form as provided therein in the event of default by a sponsor or a
participating party; and issue or assign any insurance or guarantee
as security for the bank’s bonds.

(r) Enter into any agreement or contract, execute any instrument,
and perform any act or thing necessary or convenient to, directly
or indirectly, secure the bank’s bonds, the bonds issued by a special
purpose trust, or a sponsor’s obligations to the bank or to a special
purpose trust, including, but not limited to, bonds of a sponsor
purchased by the bank or a special purpose trust for retention or
sale, with funds or moneys that are legally available and that are
due or payable to the sponsor by reason of any grant, allocation,
begin delete apportionment end delete begin insert apportionment, end insert or appropriation of the state or
agencies thereof, to the extent that the Controller shall be the
custodian at any time of these funds or moneys, or with funds or
moneys that are or will be legally available to the sponsor, the
bank, or the state or any agencies thereof by reason of any grant,
allocation, apportionment, or appropriation of the federal
government or agencies thereof; and in the event of written notice
that the sponsor has not paid or is in default on its obligations to
the bank or a special purpose trust, direct the Controller to withhold
payment of those funds or moneys from the sponsor over which
it is or will be custodian and to pay the same to the bank or special
purpose trust or their assignee, or direct the state or any agencies
thereof to which any grant, allocation, begin delete apportionment end delete
begin insert apportionment, end insert or appropriation of the federal government or
agencies thereof is or will be legally available to pay the same
upon receipt by the bank or special purpose trust or their assignee,
until the default has been cured and the amounts then due and
unpaid have been paid to the bank or special purpose trust or their
assignee, or until arrangements satisfactory to the bank or special
purpose trust have been made to cure the default.

(s) Enter into any agreement or contract, execute any instrument,
and perform any act or thing necessary, convenient, or appropriate
to carry out any power expressly given to the bank by this division,
including, but not limited to, agreements for the sale of all or any
part, including principal, interest, redemption begin delete rights end delete begin insert rights, end insert or any
other rights or obligations, of bonds of the bank or of a special
purpose trust, liquidity agreements, contracts commonly known
as interest rate swap agreements, forward payment conversion
agreements, futures or contracts providing for payments based on
levels of, or changes in, interest rates or currency exchange rates,
or contracts to exchange begin delete cash-flows end delete begin insert cashflows end insert or a series of
payments, or contracts, including options, puts or calls to hedge
payments, rate, spread, currency exchange, or similar exposure,
or any other financial instrument commonly known as a structured
financial product.

(t) Purchase, with the proceeds of the bank’s bonds, transition
property or bonds issued by, or for the benefit of, any sponsor in
connection with a project, pursuant to a bond purchase agreement
or otherwise. Bonds or transition property purchased pursuant to
this division may be held by the bank, pledged or assigned by the
bank, or sold to public or private purchasers at public or negotiated
sale, in whole or in part, separately or together with other bonds
issued by the bank, and notwithstanding any other provision of
law, may be bought by the bank at private sale.

(u) Enter into purchase and sale agreements with all entities,
public and private, including state and local government pension
funds, with respect to the sale or purchase of bonds or transition
property.

(v) Invest any moneys held in reserve or sinking funds, or any
moneys not required for immediate use or disbursement, in
obligations that are authorized by law for the investment of trust
funds in the custody of the Treasurer.

(w) Authorize a special purpose trust or trusts to purchase or
retain, with the proceeds of the bonds of a special purpose trust,
transition property or bonds issued by, or for the benefit of, any
sponsor in connection with a project or issued by the bank or a
special purpose trust, pursuant to a bond purchase agreement or
otherwise. Bonds or transition property purchased pursuant to this
title may be held by a special purpose entity, pledged or assigned
by a special purpose entity, or sold to public or private purchasers
at public or negotiated sale, in whole or in part, with or without
structuring, begin delete subordination end delete begin insert subordination, end insert or credit enhancement,
separately or together with other bonds issued by a special purpose
trust, and notwithstanding any other provision of law, may be
bought by the bank or by a special purpose trust at private sale.

(x) Approve the issuance of any bonds, notes, or other evidences
of indebtedness by the Rural Economic Development Infrastructure
Panel, established pursuant to Section 15373.7.

(y) Approve the issuance of rate reduction bonds by an entity
other than the bank or a special purpose trust to acquire transition
property upon approval of the transaction in a financing order by
the Public Utilities Commission, as provided in Article 5.5
(commencing with Section 840) of Chapter 4 of Part 1 of Division
1 of the Public Utilities Code.

(z) Apply for and accept subventions, grants, loans, advances,
and contributions from any source of money, property, labor, or
other things of value. The sources may include bond proceeds,
dedicated taxes, state appropriations, federal appropriations, federal
grant and loan funds, public and private sector retirement system
funds, and proceeds of loans from the Pooled Money Investment
Account.

(aa) Do all things necessary and convenient to carry out its
purposes and exercise its powers, provided, however, that nothing
herein shall be construed to authorize the bank to engage directly
in the business of a manufacturing, industrial, real estate
development, or nongovernmental service enterprise. Further, the
bank shall not be organized to accept deposits of money for time
or demand deposits or to constitute a bank or trust company.

begin insert

(ab) Do all things necessary to carry out the bank’s duties
associated with Chapter 4 (commencing with Section 1719.1) of
Part 1 of Division 6 of the Harbors and Navigation Code.

end insert

begin delete SEC. 2. end delete

begin insert SEC. 3. end insert   

Chapter 4 (commencing with Section 1719.1) is added
to Part 1 of Division 6 of the Harbors and Navigation Code, to
read:

 

Chapter  4. State Infrastructure Financing for Seaports

 

1719.1.  

(a) The Legislature finds and declares all of the
following:

(1) It is equitable and in the public interest to provide alternative
procedures for financing public works and services needed to
support new commercial, environmental, and industrial
development in the state’s seaports and harbors that would generate
significant new employment opportunities and economic
development, increase state and local tax revenues, enhance seaport
competitiveness in the international trade community, reduce
congestion and delay in the supply chain, and result in improved
environmental quality.

(2) Except as authorized in this part, seaports and harbors in
California generally do not levy or expend any funds generated
by local taxes, as most of their operations are funded directly
through fees, tariffs, leases, and other revenue the seaports and
harbors generate from their users and tenants, in addition to the
occasional state or federal grant.

(3) There is significant opportunity for development and
investment in our state’s seaports and harbors and in their transition
to operations that are characterized by the use of new zero-emission
and near-zero-emission equipment and supporting infrastructure.
However, the state lacks the public infrastructure funding necessary
to support all of the new development and investment that begin delete are end delete begin insert is end insert
demanded.

(4) In addition to a lack of public infrastructure funding, our
state’s waterfront has infrastructure and environmental needs that
cannot be met by private investment alone, and therefore creative
public financing mechanisms need to be developed. The absence
of practical and equitable methods for state financing of public
works, like the development of seaport infrastructure that is a
matter of statewide significance, leads to a declining standard of
seaport infrastructure, a failure to construct new public structures
and facilities needed to support new commercial and industrial
development in our seaports and harbors, increased congestion,
and a lack of tools to facilitate environmental improvements,
including the transition to zero-emission and near-zero-emission
equipment and supporting infrastructure.

(5) The seaports and harbors of California are valuable begin insert public end insert
assets of the state that provide special maritime, navigational,
recreational, cultural, and historical benefits to the people of the
state and the management and development of these seaports and
harbors may not be subjugated. This begin delete in turn end delete means that the
management of the financial health, land use planning, waterfront
assets, and environmental infrastructure in all of California’s public
ports are matters of statewide significance. This chapter will help
to remediate these conditions that will otherwise result in
underinvestment in the state’s seaports and harbors by providing
a new financing mechanism, through the use of leveraged future
tax increment revenues, to facilitate matters of statewide
importance and further the purposes of the public trust.

(b) The Legislature further finds and declares all of the
following:

(1) The ability to capture future tax increment revenues to
finance needed seaport and harbor infrastructure projects will
provide direct benefits to the state. When harbor agencies are better
funded to further the objectives of the state, the state’s seaports
and harbors, and the public trust and enjoyment of those trust lands
by the people of the state, the state’s economy and environment
will also be improved.

(2) A seaport frequently generates large state tax benefits
directly and indirectly as a result of the economic activity that is
generated from its maritime operations and other economic
development efforts.

(3) Investments by a seaport and its industry partners in
environmental improvements generate long-term state benefits
and begin insert a end insert reduction in public costs with respect to the reduction of
greenhouse gases, criteria pollutants, projected public health
impacts, and overall improvements in the quality of life of
Californians.

(4) The potential for increases in state tax revenues and
decreases in costs to the state that will result from the improvement
of seaport and harbor infrastructure and investment in
environmental improvements should be begin delete incentivized end delete begin insert provided
incentives end insert and leveraged through state financing, whenever
possible, which supports the state’s significant interest in the
successful operation of its seaports and harbors.

1719.2  

It is the intent of the Legislature that seaport
infrastructure financing be developed pursuant to this chapter in
a manner that improves public port assets, infrastructure, and
operations and achieves the public goals of improving the state’s
waterborne commerce, enhancing economic prosperity, and
financing the costs of environmental mitigation and improvement.

1719.3.  

begin insert (a) end insert begin insert   end insert For purposes of this chapter, the following terms
have the following meanings:

begin delete

(a)

end delete

begin insert (1) end insert  “Bank” means the Infrastructure and Economic Development
Bank, as established pursuant to Section 63021 of the Government
Code.

begin insert

(2) “Commission” means the State Lands Commission.

end insert begin insert

(3) “Department” means the Department of Finance.

end insert begin insert

(4) “Proposed project valuation” means the economic impact
of the proposed infrastructure development or equipment purchase,
as demonstrated through an economic impact report, as determined
by the requirements of this chapter and the criteria, priorities, and
guidelines adopted by the bank.

end insert begin delete

(b)

end delete

begin insert (5) end insert  “Project” has the same meaning as defined in Section 63010
of the Government Code.

begin insert

(b) Unless the context otherwise requires, the definitions in this
section shall govern the construction of this chapter. The definitions
provided in this section shall apply to this chapter only and not to
any other part or chapter of this division.

end insert

begin delete

1719.4.  

A harbor agency may prepare a proposed financing
plan for a project to be submitted to the bank as provided in Section
63041 of the Government Code, for consideration pursuant to the
terms of this chapter.

end delete begin insert

begin insert 1719.4. end insert   

(a) After consulting with the appropriate state and
local agencies, the bank shall establish criteria, priorities, and
guidelines for the selection of projects to receive assistance from
the bank. Projects shall comply with the criteria, priorities, and
guidelines adopted by the bank.

(b) When the bank establishes or makes changes to the criteria,
priorities, and guidelines, the bank shall notify the Governor, the
appropriate fiscal and policy committees of the Legislature that
exercise oversight of the bank, and the appropriate state and local
agencies.

end insert begin delete

1719.5.  

In addition to the requirements of Section 63041 of
the Government Code, a proposed financing plan for a project
submitted to the bank pursuant to Section 1719.4 shall include all
of the following information:

end delete

begin insert

begin insert 1719.5. end insert   

end insert begin insert

The bank may accept applications for a proposed
project valuation consistent with the criteria, priorities, and
guidelines adopted by the board pursuant to Section 1719.4. At a
minimum, the application shall include all of the following
information:

end insert

(a) The begin insert proposed end insert infrastructure development or equipment

begin delete purchase to be financed through the proceeds of the proposed
financing. end delete begin insert purchases that are the subject of the proposed project
valuation. end insert

(b) (1)  begin insert (A) end insert begin insert   end insert If the harbor agency is acting on granted lands, a
finding that the project to be financed is consistent with the state
tidelands trust and the terms and conditions of any grant of trust
lands to the harbor agency. begin delete A end delete begin insert The harbor agency shall forward a end insert
copy of this finding begin delete shall be forwarded by the harbor agency end delete to
the begin delete State Lands Commission. end delete begin insert commission. end insert

begin insert

(B) Prior to making a finding pursuant to subparagraph (A),
the harbor agency shall consult with the commission. The harbor
agency shall reimburse the commission for all reasonable expenses
resulting from that consultation.

end insert

(2) If the harbor agency was formed pursuant to this code, a
finding that the project to be financed is consistent with its charter
and the statewide interests in the operation of harbors and ports.

(c) The state fiscal and economic impacts begin delete forecast end delete begin insert estimates end insert
required begin delete by end delete begin insert pursuant to end insert Section 1719.6.

1719.6.  

(a) A harbor agency shall adopt a resolution setting
forth estimates of the state fiscal and economic impacts that will
result from the begin insert proposed end insert project, including, but not begin delete be end delete limited to,
the following:

(1) The total direct and indirect state tax revenues generated by
the impact of the infrastructure development or equipment begin delete purchase
to be financed through the bank. end delete begin insert purchase. end insert

(2) The total direct and indirect state begin delete general fund end delete begin insert General Fund end insert
and special fund expenditure savings generated by the impact of
the infrastructure development or equipment begin delete purchase to be
financed through the bank. end delete begin insert purchase. end insert

(3) The total local tax and user fee revenues generated by the
infrastructure development or equipment begin delete purchase to be financed
through the bank. end delete begin insert purchase. end insert

(4) The total jobs created by the infrastructure development or
equipment begin delete purchase to be financed through the bank, end delete begin insert purchase, end insert
including the specific impact of the financing on the employment
of begin delete California end delete residents.

begin delete

(b) (1) Prior to making findings upon which the resolution may
be based, a harbor agency shall obtain an economic impact report
that shall be completed by a third-party economist, based on a
published economic impact methodology. The published economic
impact methodology shall be incorporated into the findings of a
peer review conducted pursuant to paragraph (2), and shall be
adopted in a public meeting of the harbor agency with a finding
that the guidelines and methodology were developed in a manner
consistent with this section.

end delete begin insert

(5) The total direct and indirect public health savings generated
by the infrastructure development or equipment purchase.

end insert begin insert

(b) (1) The estimates of the state fiscal and economic impacts
shall be based on an economic impact report that, among other
criteria that may be established by the bank, shall be completed
by an economist not in the direct employment of the harbor agency
and be based on a nationally recognized economic impact
methodology.

end insert

(2) The economic impact report and the economic methodology
begin delete to be adopted under this subdivision end delete begin insert required pursuant to
paragraph (1) end insert shall be begin delete peer reviewed end delete begin insert peer-reviewed end insert and evaluated
by an independent party begin delete that end delete begin insert who end insert is without any financial
association with the begin delete third party that end delete begin insert economist who end insert completed the
economic impact report begin delete guidelines end delete and begin insert developed the end insert economic
methodology. The peer review shall evaluate the adequacy of the
begin delete guidelines end delete begin insert economic impact report end insert and make specific
recommendations regarding the methodologies, which begin delete should end delete begin insert shall end insert
be begin insert either end insert incorporated into the begin delete peer review by the harbor agency
upon adoption. end delete begin insert economic impact report or submitted as additional
information in the application to the bank. end insert

begin delete

(3) A harbor agency may adopt guidelines for study preparation
previously developed by a third party for another harbor agency
under this section as long as the final guidelines are adopted
pursuant to paragraph (1).

end delete begin delete

(c) This section shall not require a harbor agency to prepare a
report or adopt a resolution except at its discretion prior to
submission of a proposed financing plan for a project.

end delete begin insert

(c) Consistent with the criteria, priorities, and guidelines
approved by the bank, a harbor agency may adopt guidelines to
be used by a tenant, another harbor agency, or other public or
private entity for submitting information that may be used in the
development of the estimates in the resolution adopted pursuant
to subdivision (a) or the economic impact report developed
pursuant to subdivision (b).

end insert begin insert

(d) Participation in the proposed project valuation program
established in this chapter is voluntary on the part of a harbor
agency and the submission of an application to the bank is a
discretionary act.

end insert

1719.7.  

(a) Upon begin insert the end insert receipt of a proposed begin delete financing plan for
a project, end delete begin insert project valuation, end insert the bank shall begin delete consider the project and end delete
approve, require a modification of, or deny the proposed begin delete financing. end delete

begin insert project valuation. end insert

(b) When considering begin insert the end insert approval of begin delete financing for end delete a begin insert proposed end insert
project begin insert valuation end insert submitted pursuant to this chapter, the bank shall
do both of the following:

(1) Review the proposed begin delete financing plan for the project end delete begin insert project
valuation end insert prepared by the harbor begin delete agency pursuant to Section
1719.4. end delete begin insert agency. end insert

(2) Review the begin delete methodology and projections end delete begin insert economic impact
report and the economic methodology end insert prepared for or by the harbor
agency pursuant to Section 1719.6.

begin insert

(c) The bank shall approve a proposed project valuation if, after
conducting its own evaluation of a harbor agency’s application,
including the economic impact report and methodology, it can
make the finding that the execution of the project is more likely
than not to result in the outcomes projected by the harbor agency
pursuant to Section 1719.6.

end insert

begin delete

1719.8.  

The bank shall approve financing for a project if, after
conducting its own evaluation of a harbor agency’s methodology,
it can make the finding that the execution of the project is more
likely than not to result in the outcomes projected by the harbor
agency pursuant to Section 1719.6.

end delete

1719.9.  

The bank shall not approve begin delete financing for end delete a begin insert proposed end insert
project begin insert valuation end insert if the begin delete State Lands Commission end delete begin insert commission end insert
objects to a finding made by a harbor agency pursuant to paragraph
(1) of subdivision (b) of Section 1719.5.

begin delete

1719.10.  

Once financing for a project is approved, the bank
shall submit a request to the Assembly Budget Committee and the
Senate Committee on Budget and Fiscal Review for an
appropriation in the following fiscal year in an amount equal to or
less than the total estimated state tax revenues and state general
fund savings approved by the bank pursuant to Section 1719.8.

end delete begin insert

begin insert 1719.10. end insert   

The bank shall provide notice to the department within
30 days of approving a proposed project valuation. The notice
shall include, at a minimum, the dollar amount of the valuation
and any other information requested by the department. The
department shall include an amount equal to the approved project
valuation in the appropriation for the California Infrastructure
and Economic Development Bank Fund, created pursuant to
Section 63050 of the Government Code, in the Governor’s
proposed annual budget.

end insert

1719.11.  

begin insert (a) end insert begin insert   end insert The begin delete financing of the project shall be underwritten
by the bank end delete begin insert bank shall remit funding to the harbor agency end insert only
upon an appropriation by the Legislature of begin delete funds end delete begin insert moneys end insert for that
purpose.

begin insert

(b) For the harbor agency to receive the remittance pursuant
to subdivision (a), the bank may require the harbor agency to
demonstrate it has sufficient resources to complete the
infrastructure development project or install the equipment
purchase.

end insert begin insert

(c) The bank shall prepare a report on its activities related to
this chapter and post that report on its Internet Web site. That
report may be included as part of the bank’s annual report.

end insert

1719.12.  

The harbor agency shall reimburse the administrative
expenses or direct operating expenses that are incurred by the bank
as the direct result of the begin delete consideration, review, end delete begin insert review end insert and
processing of the proposed financing of a project pursuant to this
chapter.

1719.13.  

To the extent that any provision of this chapter
conflicts with any provision of Chapter 2.99 (commencing with
Section 53398.50) of Part 1 of Division 2 of Title 5 of the
Government Code with respect to a seaport infrastructure financing
district, this chapter shall prevail.

1719.14.  

(a) All permanent fixtures and capital improvements
to the real property of a harbor agency that administers public trust
tidelands financed pursuant to this chapter shall be a trust asset begin insert of
the state end insert once completed. This does not apply to fixtures and
improvements otherwise agreed as nonpermanent in a lease
between the harbor agency and a private tenant.

(b) Nothing in this chapter shall prohibit a harbor agency from
submitting a begin delete proposed financing plan end delete begin insert proposed project valuation end insert
for a project on behalf of a tenant or for the purchase of equipment
to be owned and operated by a tenant, if the assets are owned,
maintained, and used exclusively in California and, upon the
cessation of the lease, ownership and control of the assets shall
revert to the harbor agency on terms enforceable by contract
between the harbor agency and the tenant.