BILL NUMBER: AB 1473 AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 21, 1999 AMENDED IN ASSEMBLY APRIL 14, 1999 INTRODUCED BY Assembly 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 Article 2 (commencing with Section 13100) of Chapter 2 of Part 3 of Division 3 of Title 2 of the Government Code is repealed.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. 13105. This article is intended to complement the approval of individual capital projects through the existing state budget process. SEC. 3. This act is an 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.