BILL ANALYSIS
AB 1380
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Date of Hearing: May 20, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 1380 (Bass) - As Introduced: February 27, 2009
Policy Committee: Jobs Vote:5 - 2
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill authorizes the Speaker of the State Assembly and the
Senate Committee on Rules to each appoint one non-voting member
of the public to serve on the board of directors of the
Infrastructure and Economic Development Bank (I-Bank).
FISCAL EFFECT
There are no significant costs associated with this legislation.
COMMENTS
1)Purpose . According to the author's office, this bill is
intended to allow the legislative branch to participate in
critical decisions affecting the I-Bank. Given the I-Bank's
integral role in issuing tax-exempt and taxable revenue bonds,
providing financing to public agencies, and leveraging state
and federal funds, it is important that the Legislature have
input into how those decisions are made.
2)California Infrastructure and Economic Development Bank . The
I-Bank was established in 1994 to promote economic
revitalization, facilitate future development, and encourage a
healthy climate for job creation and retention. The I-Bank is
organized within BTH and is managed by a five-member board of
directors comprised of the BTH Secretary (chair), State
Treasurer, Director Department of Finance, Secretary, State
and Consumer Services Agency, and a governor's appointee. The
executive director serves at the will of the I-Bank Board and
is responsible for the day-to-day operation of the
organization.
AB 1380
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The I-Bank has several programs that it uses to carry out its
mission. These programs include: the ISRF Program, the
Industrial Development Revenue Bond Program, the
Infrastructure & Community 501(c)(3) Revenue Bond Program, and
the Exempt Facility Revenue Bond Program.
The I-Bank is financed through the California Infrastructure
and Economic Development Bank Fund, which receives fees,
interest income and other revenues. The cost of administering
the programs of the I-Bank is off-set by program income. The
I-Bank is operated on a revolving fund basis and thereby
generates continuous funding for new project investments.
Since its creation approximately a decade ago, the I-Bank has
issued over $300 million to local agencies in infrastructure
related revenue bonds, and has developed a level of expertise
in the implementation of successful local infrastructure
programs.
3)Related Legislation . AB 507 (Arambula) requires projects
selected for funding under the Infrastructure Revolving Loan
program only to be funded if the project meets specified land
use and economic development criteria. That bill is currently
pending before this committee.
AB 1047 (V.M. Perez) establishes a local assistance program,
within the I-Bank, to assist small and rural communities
obtain bond financing for infrastructure projects. That bill
is currently pending before this committee.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081