BILL ANALYSIS
AB 1380
Page 1
ASSEMBLY THIRD READING
AB 1380 (Bass)
As Introduced February 27, 2009
Majority vote
ECONOMIC DEVELOPMENT 5-2 APPROPRIATIONS 11-4
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|Ayes:|V. Manuel Perez, Beall, |Ayes:|De Leon, Ammiano, Charles |
| |Block, Huber, Salas | |Calderon, Davis, Fuentes, |
| | | |Hall, John A. Perez, Price, |
| | | |Skinner, Solorio, Torlakson |
| | | | |
|-----+--------------------------+-----+------------------------------|
|Nays:|Logue, Bill Berryhill |Nays:|Nielsen, Duvall, Harkey, |
| | | |Audra Strickland |
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SUMMARY : Expands the membership of the board of directors of the
California Infrastructure and Economic Development Bank (I-Bank)
from five to seven members. Of the two additional members, one
each is appointed by the Speaker of the Assembly and the Senate
Committee on Rules. The two new members serve as nonvoting
members.
EXISTING LAW establishes the I-Bank, within the Business,
Transportation and Housing (BT&H) Agency to promote economic
revitalization, enable future development, and encourage a
healthy climate for jobs in California. The I-Bank is governed
by a five member board of directors comprised of:
1)The Director of Finance or designee;
2)The Treasurer or designee;
3)Secretary of Business, Transportation and Housing or designee;
4)Governor's appointee; and,
5)Secretary of State Consumer Services Agency or designee.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, there are no significant costs associated with this
legislation.
AB 1380
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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 on how those decisions are made.
2)Structure and operation of the I-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 BT&H and is managed by a five-member board of directors
comprised of the BT&H Secretary (chair), State Treasurer,
Director Department of Finance, Secretary, State and Consumer
Services Agency, and a Governor's appointee, who represents
the public-at-large. The executive director, one of 25
staff, serves at the will of the I-Bank Board and is
responsible for the day-to-day operation of the organization.
The I-Bank has several programs that it uses to carry out its
mission. These programs include: the Infrastructure State
Revolving Fund Program; the Industrial Development Revenue
Bond Program; the Infrastructure & Community 501(c)(3) Revenue
Bond Program; and, the Exempt Facility Revenue Bond Program.
Activities of the I-Bank are financed through the California
Infrastructure and Economic Development Bank Fund, which
receives fees, interest income and other revenues. The cost
of administering the I-Bank program is off-set by these
moneys. 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.
AB 1380
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3)The federal stimulus package: In February, the President
signed the American Recovery and Reinvestment Act (ARRA),
which provides $787 billion in assistance to state, local
governments, workers, families, and businesses. The ARRA
includes $288 billion in tax relief and $499 billion in
spending including:
a) $144 billion in state and local fiscal relief;
b) $111 billion for infrastructure and science related
investments;
c) $81 billion for protecting the vulnerable including
extending unemployment benefits;
d) $59 billion for health care;
e) $53 billion for education and training; and,
f) $43 billion for energy related investments.
Overall, the programs and funding included within the ARRA are
designed to serve many purposes, including preserving and
creating jobs, assisting those impacted by the recession, and
providing investments to spur technological advances in
science, health, and environmental protection.
According to the Governor's Office, California is expected to
receive $80 billion of the $787 billion; with $11 billion of
that available to go toward programs and services impacted by
the state's current budget year. New infrastructure
development is expected to play an important role in the
creation and retention of the nearly 400,000 California jobs.
Key infrastructure expenditures include over $3 billion for
transportation and water projects. California has a unique
resource in the I-Bank and one that could help the state
leverage these federal stimulus moneys.
Analysis Prepared by : Toni Symonds / J., E.D. & E. / (916)
319-2090 FN:
0000918