BILL NUMBER: AB 1473	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY   APRIL 14, 1999

INTRODUCED BY   Assembly  Member Hertzberg  
Members Hertzberg and Torlakson 

                        FEBRUARY 26, 1999

   An act to repeal and add Article 2 (commencing with Section 13100)
of Chapter 2 of Part 3 of Division 3 of Title 2 of the Government
Code, relating to capital financing, and declaring the urgency
thereof, to take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1473, as amended, Hertzberg.  Capital outlay:  state planning
and funding.
   Existing law requires the Director of Finance to prepare annually
a report projecting the state's potential need for the financing of
major capital outlay projects over a 10-year period.  Existing law
generally prohibits funds appropriated for capital outlay from being
expended by a state agency until the Department of Finance and the
State Public Works Board have approved preliminary plans for the
project to be financed from the appropriation for capital outlay.
Existing law also requires the Governor's Budget to contain a
complete plan and itemized statement of all proposed expenditures of
the state and all estimated revenues.
   This bill would repeal the provisions that require the Director of
Finance to prepare a report on major capital outlay and instead
would require the Governor, beginning on or after January 1, 2001, to
submit annually a 3-year capital expenditure plan to the Legislature
that includes proposed capital improvement projects and their
proposed funding sources.
  The bill would declare that it is to take effect immediately as an
urgency statute.
   Vote:  2/3.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Article 2 (commencing with Section 13100) of Chapter 2
of Part 3 of Division 3 of Title 2 of the Government Code is
repealed.
  SEC. 2.  Article 2 (commencing with Section 13100) is added to
Chapter 2 of Part 3 of Division 3 of Title 2 of the Government Code,
to read:

      Article 2.  Capital Facilities Funding

   13100.  As used in this article, "capital improvement projects"
mean public projects funded wholly or in part by the state, including
projects approved for financing in accordance with the
Bergeson-Peace Economic Development and Infrastructure Bank Act
(Division 1 (commencing with Section 63000) of Title 6.7), to
acquire, construct, renovate, improve, modernize, expand, or replace
real or personal property, structures, conveyances, equipment,
thoroughfares, buildings, and supporting components thereof.
   13101.  On and after January 1, 2001, in conjunction with the
budget submitted pursuant to Section 13337, the Governor shall submit
annually a capital expenditure plan to the Legislature that includes
proposed capital improvement projects.  In addition to the
Department of Finance, the Governor may order any agency or
department of state government, including the California State
University, to assist in preparation of the plan.
   13102.  The capital expenditure plan shall cover a period of three
years, beginning January 1, 2001.
   13103.  The plan shall identify the proposed funding sources for
all projects  financed  by general obligation bonds, revenue
bonds, lease purchase, installment purchase, or other means.
   13104.  The Legislature shall review, modify, and approve the
report and annual updates for purposes of determining capital outlay
policies for the state.
  SEC. 3.  This act is an  emergency   urgency
 statute necessary for the immediate preservation of the public
peace, health, or safety within the meaning of Article IV of the
Constitution and shall go into immediate effect. The facts
constituting the necessity are:
   The state faces a significant challenge over the next decade and
beyond to address both the deficiencies of an aging public
infrastructure and the need for new infrastructure to sustain a
growing economy and population.  To effectively meet this challenge,
the state needs to implement immediately a well-defined process for
planning, budgeting, and financing necessary infrastructure
improvements.  Thus, it is necessary for this act to take effect
immediately.