BILL ANALYSIS �
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THIRD READING
Bill No: AB 700
Author: Blumenfield (D)
Amended: 6/28/11 in Senate
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 8-0, 6/22/11
AYES: Wolk, Huff, DeSaulnier, Fuller, Hernandez, Kehoe, La
Malfa, Liu
NO VOTE RECORDED: Hancock
SENATE APPROPRIATIONS COMMITTEE : 8-0, 8/15/11
AYES: Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley,
Price, Steinberg
NO VOTE RECORDED: Runner
ASSEMBLY FLOOR : 72-3, 6/1/11 - See last page for vote
SUBJECT : Infrastructure and Economic Development Bank
SOURCE : Author
DIGEST : This bill establishes an independently
administered California Infrastructure and Economic
Development Bank and makes related administrative changes
to ensure accountability, transparency, and integration
within the state's infrastructure planning and development
process.
ANALYSIS : The California Infrastructure and Economic
Development Bank (I-Bank) supports infrastructure
CONTINUED
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investments and private development through its authority
to issue bonds, make loans and provide credit enhancements.
The I-Bank generally supports two types of projects,
public development facilities, which are municipal in
nature, such as sewers, roadways and ports, etc., and
economic development facilities, which are not municipal in
nature, such as industrial or commercial facilities. These
two types of projects supported by the I-Bank reflect the
consolidation of the California Economic Development and
Financing Authority into the Infrastructure and Economic
Development Bank under SB 1184 (M. Thompson), Chapter 4,
Statutes of 1998.
Housed within the Business Transportation and Housing
Agency (BTH), the I-Bank has a five-member board of
directors that approves projects. The board includes the
BTH Secretary, who serves as the chair, State Treasurer,
Director of the Department of Finance, Secretary of the
State and Consumer Services Agency and an appointee of the
Governor.
This bill makes the following changes in statute to
establish the independence of the I-Bank:
1. Moves the I-Bank from the jurisdiction of the BTH and
establishes it as a stand-alone entity under the
executive branch,
2. Changes the designation of its lead staff from
"executive director" to "chief executive officer,"
3. Shifts the role of chair from the BTH Secretary to the
Director of the Department of Finance,
4. Authorizes the I-Bank to contract with another state
agency for administrative services, such as personnel
services.
This bill also establishes the following planning and
reporting requirements:
1. Requires the I-Bank to establish a set of two-year goals
and measureable objectives and develop an annual work
plan for its projects.
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2. Requires those goals, objectives and work plans to be
consistent with the mission of the bank Environmental
Goals and Policy Report, state-level infrastructure
plans, the California Economic Development Strategic
Plan, and the Capital and Infrastructure Project
Planning Report, unless those plans are more than two
years overdue, or have not been adopted or approved, as
determined by the board.
Related Legislation
AB 696 (Hueso) directs the I-Bank to establish a
methodology for determining the economic benefits of
projects under consideration and, as of January 1, 2013,
restricts the I-Bank to approve only those projects that
provide economic benefits and meet land use criteria.
AB 893 (V. Manuel P�rez) directs the I-Bank to enhance
outreach and technical assistance to small and rural
communities to obtain financing for infrastructure
projects.
AB 1094 (John A. P�rez) establishes the I-Bank as the
primary state agency to secure funding through any federal
infrastructure financing authority, expands the I-Bank's
board from five members to seven.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13
2013-14 Fund
Transition costs one-time costs in the range
of $100 Special*
Independent Unknown costs or savings,
dependingSpecial* administration upon efficiencies
gained or lost by contracting
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with a different agency for
administrative
functions
Adoption of goals/ up to $50
Special*
objectives
Annual work plan $25-$50
$25-$50Special*
* California Infrastructure and Economic Development Bank
Fund
SUPPORT : (Verified 8/16/11)
Bay Area Council
Biz Fed Los Angeles County Business Federation
Coachella Valley Economic Partnership
Greater Antelope Valley Economic Alliance
Inland Empire Economic Partnership
Los Angeles Area Chamber of Commerce
Los Angeles County Economic Development Corporation
North Bay Leadership Council
Orange County Business Council
San Diego Regional Economic Development Corporation
San Francisco Chamber of Commerce
San Gabriel Valley Economic Partnership
ASSEMBLY FLOOR : 72-3, 6/1/11
AYES: Achadjian, Alejo, Ammiano, Atkins, Beall, Bill
Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Beth
Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, Hagman,
Hall, Harkey, Hayashi, Roger Hern�ndez, Hill, Huber,
Hueso, Huffman, Jeffries, Knight, Lara, Logue, Bonnie
Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
Monning, Morrell, Nestande, Nielsen, Pan, Perea,
Portantino, Silva, Skinner, Smyth, Solorio, Swanson,
Torres, Valadao, Wagner, Wieckowski, Williams, Yamada,
John A. P�rez
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NOES: Donnelly, Norby, Olsen
NO VOTE RECORDED: Allen, Gorell, Halderman, Jones, V.
Manuel P�rez
AGB:kc 8/16/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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