BILL ANALYSIS                                                                                                                                                                                                    Ó







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        |Hearing Date:July 2, 2012          |Bill No:AB                         |
        |                                   |1545                               |
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                      SENATE COMMITTEE ON BUSINESS, PROFESSIONS 
                               AND ECONOMIC DEVELOPMENT
                          Senator Curren D. Price, Jr., Chair
                                           

                     Bill No:        AB 1545Author:V. Manuel Pérez
                          As Amended:May 25, 2012  Fiscal:Yes

        
        SUBJECT:  Economic development projects.
        
        SUMMARY:  Expands the role of the California Infrastructure and 
        Economic Development Bank to include facilitating infrastructure and 
        economic development financing activities within the California and 
        Mexico border region.  

        Existing law:
        
        1)Authorizes under the Bergeson-Peace Infrastructure and Economic 
          Development Bank Act (Act) the creation of the Infrastructure and 
          Economic Development Bank (I-Bank) within Business, Transportation 
          and Housing Agency (BTH), to promote economic revitalization, enable 
          future development, and encourage a healthy climate for jobs in 
          California.  (Government Code (GC) §§ 63000 - 63087)  

        2)Makes several findings and declarations of the Legislature regarding 
          the Act including the following:  (GC § 63000) 

           a)   Create financing pools to access national capital markets or 
             help government sponsors and public-private economic development 
             organizations obtain credit enhancement on their own.  

           b)   Increase support for local infrastructure development.

           c)   The State of California needs a financing entity structured 
             with broad authority to issue bonds, provide guarantees, and 
             leverage state and federal funds using techniques that will 
             target public investment to facilitate economic development.  The 
             goal is to produce more private sector jobs with less public 





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             sector investment. 

        3)Defines "economic development facilities" to mean real and personal 
          property, structures, buildings, equipment, and supporting 
          components that are used to provide industrial, recreational, 
          research, commercial, utility, or service enterprise facilities, 
          community, educational, cultural, or social welfare facilities and 
          all facilities or infrastructure necessary or desirable, but shall 
          not include any housing.  (GC § 63010 (g))

        4)Defines "financial assistance" in connection with a project to mean, 
          but not be limited to, any combination of grants, loans, the 
          proceeds of bonds or special purpose trust, insurance, 

        guarantees, or other credit enhancements and contributions of money, 
          property, labor or other things of value, as specified.  (GC § 63010 
          (j)) 

        5)Defines "participating party" to mean any person, company, 
          corporation, association, or municipal governmental entity, 
          partnership, firm or other entity or group of entities, engaging in 
          business or operations with the state and that applies for financing 
          from the I-Bank in conjunction with a sponsor for the purpose of 
          implementing a project, as specified.
        (GC § 63010 (o))

        6)Defines "project" to mean the designing, acquiring, planning, 
          permitting, entitling, constructing, improving, extending, 
          restoring, financing, and generally developing public development 
          facilities or economic development facilities within the state.  (GC 
          § 63010 (p))

        7)Defines "port facilities" to mean docks, harbors, ports of entry, 
          piers, ships, small boat harbors and marinas, and any other 
          facilities, additions, or improvements in connection therewith.
        (GC § 63010 (7))

        8)Authorizes the I-Bank board to delegate to its executive director, 
          among other things,  the following:

           a)   Acquire, take title to, and sell lands, structures, real or 
             personal property rights, rights-of-way, franchises, easements, 
             and other interests in lands that are located within the state as 
             the bank may deem necessary or convenient for the financing of 
             the project.  
           (GC § 63025.1 (g))





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           b)   Receive and accept from any source, including, but not limited 
             to, the federal government, the state, or any agency thereof, 
             loans, contributions, or grants, in money, property, labor, or 
             other things of value, for, or in aid of, a project, or any 
             portion thereof.  
           (GC § 63025.1 (h))

           c)   Make loans to any sponsor or participating party, either 
             directly or by making a loan to a lending institution, in 
             connection with the financing of a project, as specified.  (GC § 
             63025.1 (i) and (j))

           d)   Make, receive, or serve as a conduit for the making of, or 
             otherwise provide for, grants, contributions, guarantees, 
             insurance, credit enhancements or liquidity facilities or other 
             financial enhancements to a sponsor or a participating party as 
             financial assistance for a project.  (GC § 63025.1 (m))

           e)   Enter into any agreement to contract, execute any instrument, 
             and perform any act or thing necessary or convenient to, directly 
             or indirectly, secure the bank's bonds, or the bonds issued by 
             others.  (GC § 63025.1 (r)).

           f)   Receive subventions, grants, loans, advances, and 
             contributions from any source of money, property, labor, or other 
             things of value.  The sources may include bond proceeds, 
             dedicated taxes, federal appropriations, federal grant and loan 
             funds and public and private sector retirement system funds.  (GC 
             § 63025.1 (z)) 

           g)   Do all things necessary and convenient to carry out its 
             purposes and exercise its powers, provided, however, that nothing 
             shall be construed to authorize the bank to engage directly in 
             the business of a manufacturing, industrial, real estate 
             development, or nongovernmental service enterprise.  (GC § 
             63025.1 (aa))

        9)Additionally authorizes the I-Bank in order to provide or arrange 
          for the financing of economic development facilities to issue 
          taxable revenue bonds and tax-exempt revenue bonds, as specified.  
          (GC § 63045)

        10)Provides that the I-Bank may issue revenue bonds and may be secured 
          and made more attractive to capital markets through financial 
          instruments, as specified, and that the bank may make loans to help 





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          establish and support the revolving loan funds of small business 
          development corporations, economic development corporations, 
          community development corporations, and nonprofits.  (GC § 63045)
         
        This bill:

        1)Makes findings and declarations of the Legislature in regards to 
          this measure, and expresses, among other things: 

           a)   Mexico is California's largest trading partner in the world.  
             The two economies are highly integrated with a substantial 
             dependence on cross-border trade, especially in southern 
             California.  A modern border that provides for safe and efficient 
             movement of people and goods is therefore critical to both 
             entities to maintain continued growth in the economy and trade.

           b)   One barrier to the expansion of trade and bi-national commerce 
             is the deficit in border infrastructure, which has not kept pace 
             with increases in trade and transit since ratification of the 
             North American Free Trade Agreement.  Increased federal spending 
             on ports of entry is essential, as well as encouraging 
             recapitalization of bi-national border financing entities that 
             include the North American Development Bank.

           c)   Even with increased federal funding, however, the long-term 
             success of the bi-national region is attracting more private 
             sector investment.  Attracting new private capital will require 
             new ways of financing infrastructure and other economic 
             development-related projects and streamlining local and 
             environmental approvals.

           d)   A bi-national approach to economic development also serves to 
             provide a vital, yet often overlooked, component to comprehensive 
             immigration reform.  It is therefore in the interest of the state 
             to find appropriate, cost-effective actions to limit immigration 
             by supporting economic development and job creation.

           e)   Funding business development and job creation activities along 
             the California-Mexico border region is a practical strategy for 
             minimizing and discouraging undocumented flows of immigration 
             from Mexico.  Projects that stimulate job creation and strengthen 
             the local and regional economies can serve as a cost-effective 
             immigration control method, while strengthening the 
             manufacturing, trade, and goods movement capacity of California 
             communities. 






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        2)Makes certain changes to the findings and declarations of the 
          Legislature pertaining to the Act:

           a)   To create financing pools to access national  and international  
             capital markets or help government sponsors and public-private 
             economic development organizations obtain credit enhancement on 
             their own.

           b)   Increase support for  local, regional, and state  infrastructure 
             development.

           c)   The State of California needs a financing entity structured 
             with broad authority to issue bonds, provide guarantees, and 
             leverage state and federal funds using techniques that will 
             target public investment to facilitate  private sector  economic 
              growth  .  The goal is to  expand private sector investment within 
             the state and  produce more private sector jobs with less public 
             sector investment. 

        3)Provides for additional findings and declarations of the Legislature 
          regarding the Act:

           a)   Improve access to global markets by supporting 
             manufacturing-linked goods and movement-related infrastructure 
             within state, national, and international transportation 
             corridors.

           b)   The lack of economic development along the border region with 
             Mexico has caused economic challenges to the state.  The 
             existence of an economic development authority that addresses 
             economic development needs in these areas serves a public purpose 
             and promotes the health, welfare, and safety of the citizens of 
             the state.

        4)Defines "border region" as the area within 125 miles on each side of 
          the California-Mexico border, including areas along the north-south 
          and east-west transportation networks on both sides of the border.

        5)Includes goods movement as part of the activities provided by 
          "economic development facilities." 

        6)Provides that the I-Bank may provide, as part of their "financial 
          assistance," as defined, direct loans in connection with a financing 
          for an economic development facility located within the state or the 
          border region, or both, and may provide financial assistance within 
          areas outside of California, as specified.   





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        7)Includes both state and international entities as a "participating 
          party," as defined, that can apply for financing from the I-Bank in 
          conjunction with a sponsor for the purpose of implementing a 
          project, as specified.

        8)Includes projects within areas outside of California as a "project," 
          as defined, which can qualify for financial assistance with the 
          I-Bank, if specified requirements are met. 

        9)Includes airports, landports, waterports, and railports as "port 
          facilities," as defined, that are involved with the transport of 
          goods or persons.  

        10)Additionally authorizes the I-Bank to facilitate and finance 
          infrastructure and economic development projects within the border 
          region, as specified.

        11)Authorizes the I-Bank to establish and participate in a bi-national 
          financing authority for the purpose of facilitating and supporting 
          the economic development communities within both sides of the border 
          regions, thereby advancing job opportunities for the economic 
          well-being of the people of California, and provides that other 
          participants in the authority may include, but are not limited to, 
          cities, counties, and other local government entities within the 
          Imperial Valley, San Diego County, the Coachella Valley, the North 
          American Development Bank, and governmental entities within the 
          border region of Mexico.  

        12)Specifies the powers and authority granted to the I-Bank in 
          establishing a bi-national financing authority and in approving 
          projects within the border region.

        13)Prohibits the use of General Fund moneys from being used to 
          implement the bi-national financing authority.  

        14)Additionally provides that the I-Bank may make loans to a joint 
          powers authority and any bi-national development authority 
          undertaking economic and infrastructure development work within the 
          border region to the extent that at least one of the participants in 
          the authority is a non-profit entity in good standing in California.


        FISCAL EFFECT:  According to the analysis of the Assembly Committee on 
        Appropriations dated May 2, 2012, the costs to the I-Bank are expected 
        to be $250,000 to set up the program, including developing regulations 





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        and establishing the authority.  As the program is established, costs 
        could diminish, depending on the volume of financing activity.  The 
        I-Bank is financed by fees, interest income and other revenue from its 
        financing activities.


        COMMENTS:
        
        1.Purpose.  The  Author  is the sponsor of this measure.  According to 
          the Author, with Mexico being California's largest trading partner, 
          the two economies are highly integrated with a substantial 
          dependence on cross-border trade.  California and Mexico have highly 
          integrated economies with over $21 billion in goods flowing from the 
          state to markets in Mexico in 2010.  One barrier to the expansion of 
          trade and bi-national commerce is the deficit in border 
          infrastructure, which has not kept pace with increases in trade and 
          transit since ratification of the North American Free Trade 
          Agreement.  The long-term success of the bi-national region is 
          dependent on attracting more private sector investment.  Attracting 
          private capital, however, will require innovative financing 
          structures and a commitment to the border's economic success, which 
          the I-Bank is qualified to undertake.

        The Author indicates that the I-Bank has special expertise in 
          facilitating the financing of infrastructure projects.  This bill 
          proposes to leverage the expertise to help bring projects to the 
          point where public and private investment would finance the project. 
           

        The Author explains that the I-Bank currently participates in federal 
          and state financing consortium, the California Financing 
          Coordinating Committee, which helps to facilitate infrastructure 
          projects that could be funded with moneys from the I-Bank's 
          Infrastructure State Revolving Fund.  This measure would build on 
          these activities by encouraging and removing potential barriers to 
          facilitating public and privately funded infrastructure projects 
          related to trade and economic development.

        2.Background.  
        
           a)   The I-Bank.  The I-Bank was established in 1994 to promote 
             economic revitalization, enable future development, and encourage 
             a healthy climate for jobs in California.  Among other duties, 
             the I-Bank has the authority to issue tax-exempt and taxable 
             revenue bonds.






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           I-Bank activities are governed by a five-member board of directors 
             comprised of the BTH Secretary (chair), State Treasurer, Director 
             Department of Finance, Secretary of the State and Consumer 
             Services Agency, and a Governor's appointee.  The day-to-day 
             operations of the I-Bank are directed by the Executive Director 
             who is an appointee of the Governor and is subject to 
             confirmation by the California State Senate.  Currently, the 
             I-Bank has authority for 24 staff members.

           The I-Bank is financed through the California Infrastructure and 
             Economic Development Bank Fund (CIEDB Fund) and the California 
             Infrastructure Guarantee Trust Fund, into which fees, interest 
             income and other revenues are deposited and from which I-Bank 
             expenses are paid.  The cost of administering the programs of the 
             I-Bank are off-set by these types of program income.  Moneys in 
             these Funds are held within the California State Treasury or by 
             the bond trustee for The Infrastructure State Revolving Fund 
             (ISRF) bonds.

           The I-Bank is operated on a revolving fund basis and thereby 
             generates continuous funding for new project investments.  The 
             I-Bank does not receive any ongoing General Fund support for loan 
             or bond financing, and instead its funding comes from fees, 
             interest income, and revenues tied to financing activities.  
             According to its 2009-10 independent audit, its program continues 
             to provide sufficient revenues to support all operating expenses.

           The I-Bank administers two categories of programs:  (1) The 
             Infrastructure State Revolving Fund Program which provides direct 
             low-cost financing to public agencies for a variety of public 
             infrastructure projects; and (2) Bond Financed Programs which 
             provide financing for manufacturing companies, nonprofit 
             organizations, public agencies and other eligible entities.  
             There is no commitment of I-Bank or state funds for any of the 
             conduit revenue bonds.  Even in the case of default, the state is 
             not liable.

           Since its creation in 1994, the I-Bank has loaned over $400 million 
             to local agencies and has developed a high-level of expertise in 
             the implementation of public infrastructure and financing 
             programs.  In addition, over $30 billion in conduit revenue bonds 
             have been issued by the I-Bank since 2000.

           b)   Reorganization of the I-Bank.  The Governor submitted to the 
             Little Hoover Commission (Commission) on March 30, 2012, 
             Government Reorganization Plan No. 2 (Plan) and presented the 





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             plan to the Legislature on May 3, 2012.  The Plan proposes to 
             dismantle BTH and move programs to other existing and new 
             government entities.  The I-Bank is proposed to be relocated to 
             the Governor's Office of Business and Economic Development 
             (GO-Biz), along with the Small Business Loan Guarantee Program; 
             The California Travel and Tourism Commission; The California Film 
             Commission; and the Film California First Program.  The Secretary 
             of BTH is replaced by the Director of GO-Biz as Chair of I-Bank.  
             The newly established Secretary of Transportation replaces the 
             Secretary of State and Consumer Services on the I-Bank board.

             The Little Hoover Commission had 30 days to analyze the Plan and 
             submit its recommendations to the Governor and Legislature.  The 
             Legislature has until July 3, 2012 (60 days) to consider the 
             Plan.  The Plan will go into effect on July 3rd unless the 
             Legislature takes an action pursuant to a resolution to 
             disapprove the Plan with a majority of the Members in each house 
             voting.

             On April 23 to April 25, 2012, the Commission held a series of 
             public hearings and received written testimony, interviewed 
             experts and reviewed analyses of the departments involved, 
             including its own previous work when relevant.  On April 25, May 
             11 and May 22, 2012, the Commission also held three public 
             hearings to develop and discuss its report and recommendation to 
             the Legislature.  In regards to relocating the I-Bank to GO-Biz, 
             and other changes as mentioned, the Commission stated, "These 
             moves are consistent with the Commission's previous 
             recommendations, and the Commission endorses them as they should 
             bolster the state's economic development efforts."  As further 
             stated by the Commission:

               "The I-Bank issues tax-exempt and taxable revenue bonds, 
               providing low-cost, gap financing for capital costs and 
               equipment.  It has leveraged an initial investment from the 
               General Fund of $180 million into $420 million in loans.  
               I-Bank programs target local government infrastructure project, 
               small manufacturing and processing businesses, and nonprofit 
               corporations such as research institutes and museums.  In 
               testimony to the Commission, the executive director of the 
               I-Bank said that 'the best part of the reorganization from 
               I-Bank's standpoint is the moving it out of an agency and up 
               into the Governor's Office and in a small group that includes 
               all the key economic development entities in the 
               administration.'" 






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        3.Oversight Hearings.  The Assembly Jobs, Economic Development and the 
          Economy (JEDE) Committee held two oversight hearings examining the 
          relationship between infrastructure and the state's economic 
          recovery.  The first hearing, March 2011, examined how the I-Bank 
          could be better utilized as a tool for statewide economic 
          development.  The second hearing, November 2011, took a more focused 
          look at the Imperial and Coachella Valleys and how infrastructure, 
          trade, and business development affected the economic prosperity of 
          the border region. One of the key findings from these hearings 
          related to the importance of modern logistical networks in linking 
          rural border manufacturers and businesses to a global supply chain 
          and consumer base.  Financing these infrastructure linkages was 
          reported to be challenging and that there was need for a quality 
          facilitator to help put infrastructure financing packages together.  
          According to the Author, this measure was developed in response to 
          testimony and research from these hearings.  Two reports were 
          produced by the JEDE Committee pursuant to these hearings, the first 
          titled "California's Economic Recover and the Role of the State 
                                            Infrastructure and Economic Development Bank," and the second was 
          "Economic Recovery in the Border Region:  Leveraging Trade to Chart 
          a New Path Forward."
        The following issues were reviewed and examined by the JEDE Committee 
          and the following information was provided in the reports and by the 
          JEDE Committee:

           a)   Goods movement infrastructure.  Goods movement supports 
             employment, business profit, and state and local tax revenue.  
             California businesses rely heavily on the state's air/sea ports 
             and their related transportation systems to move manufactured 
             goods.  Firms rely on fast, flexible, and reliable shipping to 
             link national and global supply chains and bring products to the 
             retail market.  Transportation breakdowns and congestion can idle 
             entire global production networks.  As a result, the capacity and 
             efficiency of seaports, airports, and multimodal linkages have 
             become critical factors in global trade.

             Changes in U.S. and global trade patterns in the past 20 years 
             have placed increased challenges on California's goods movement 
             system.  Between 1970 and 2002, for example, imports from Asia 
             (as a share of U.S. trade) increased from 8% to 40%, thereby 
             increasing the flow of imports through California's gateways.  
             Over the same period, U.S. trade shifted toward lighter goods, 
             which are more likely to be shipped by air.  While the state may 
             have limited ability to affect these larger patterns, there are 
             actions that the state can take to help California's global 
             gateways keep pace with the growing demand for shipping services. 





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           b)   Coping with congested ports.  For California, expanded supply 
             chains for manufacturing and product distribution have resulted 
             in congested seaports, where cargo ships are often delayed for 
             extended periods of time waiting to unload.  Truck access is 
             often cited for the delays.  At international airports, truck 
             access is also a problem, and expansion of major airports is 
             severely limited by urbanization, ground access, air quality 
             impacts, and local opposition.

             California's land-based border crossing with Mexico is 
             particularly congested and inhibits trade and commerce within the 
             region and its access to global markets.  There are six land 
             crossings referred to as Points of Entry (POEs).  The San Diego 
             County-Tijuana/Tecate region is home to the San Ysidro-Puerta 
             México, the Otay Mesa-Mesa de Otay, and the Tecate-Tecate POEs 
             while the Imperial County-Mexicali region hosts the 
             Calexico-Mexicali, Calexico East-Mexicali II, and Andrade-Los 
             Algodones POEs.

             U.S. firms with significant business passing through the three 
             Imperial Valley POEs report that their logistics-supply chain is 
             highly time sensitive.  Long wait times at border crossings 
             result in delays in receiving intermediary goods and ultimately 
             lead to problems in the manufacturing chain.  Long wait times 
             between Mexico and the U.S. along the Imperial County - Baja 
             California border accounted for an estimated output loss of $1.4 
             billion and 11,600 lost jobs nationally in 2007.  In California 
             losses were estimated at $436 million and 5,639 jobs.

           c)   Binational economic development and migration.  Outward 
             migration from Mexico to the U.S. has historically been a complex 
             and controversial issue.  For a select group of workers in 
             Mexico, coming to California appears as a good economic choice 
             for them and their families given the sometimes limited 
             alternatives where they live.  While migration from Mexico has 
             benefitted many economic sectors in California, the issue of 
             immigration has consistently been on the state's public policy 
             agenda.  

             One often overlooked and under-funded element to this discussion 
             is bi-national economic development policies which can help to 
             re-balance the drivers of immigration.  The "maquiladoras," a 
             by-product of NAFTA, are manufacturing and assembly facilities 
             located in Northern Mexico, including Mexicali.  With cross 





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             border supply chains, these facilities have become important 
             players within extended and sometimes global supply chains.  

             The North American Development Bank (NAD Bank), another entity 
             created through the enactment of North American Free Trade 
             Agreement (NAFTA), provides project financing and construction 
             oversight for projects initiated through the U.S. Environmental 
             Protection Agency's U.S.-Mexico Border Water Infrastructure 
             Program.  The program serves communities within 62 miles, north 
             and south, of the border.  By providing cleaner water and 
             improved infrastructure, the quality of life is improved and jobs 
             are created on both sides of the border.  AB 1545 proposes the 
             recapitalization of the NAD Bank and to expand the activities of 
             the I-Bank to serve as a catalyst for improving infrastructure 
             within the border region.

           d)   Infrastructure:  A major challenge to California's 
             competitiveness.  World class infrastructure plays a key role in 
             business attraction, as multinational companies consistently rank 
             the quality of infrastructure among their top four criteria in 
             making investment decisions.  Research shows that as U.S. 
             infrastructure has been in decline, infrastructure in other 
             countries is rapidly increasing.  The 2010-11 Global 
             Competitiveness Report by the World Economic Forum places U.S. 
             infrastructure 23rd in the world, a drop from its rank of 7th in 
             2000.   

             California's infrastructure is in a similar state, according to 
             the American Society of Civil Engineers, California 
             Infrastructure Report Card 2012, with an estimated $65 billion a 
             year investment gap.  The impact of this lack of investment is 
             compounded by the substantial new investments made in other 
             states and nations, including the expansion of the Panama Canal.  
             With the logistics sector alone employing over 73,000 workers, 
             failing to remain competitive will impact California jobs.  
              
             Institutional investors have responded to the U.S.'s 
             infrastructure shortfall and the lack of sufficient public 
             finance opportunities by adopting new investment mandates to 
             privately finance public infrastructure.  As an example, in the 
             fall of 2011, the California Public Employees' Retirement System 
             (CalPERS) Board of Administration approved a motion that would 
             allow up to $800 million to be invested in California 
             infrastructure over the next three years.  Both public and 
             private infrastructure facilities are eligible, including, but 
             not limited to, transportation, energy, natural resources, 





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             utilities, water, communications and other social support 
             services.

             Currently, CalPERS has $203 million invested in a combination of 
             physical infrastructure investments and infrastructure-targeted 
             private equity funds around the state.  CalPERS has also provided 
             credit enhancement to more than $326 million in infrastructure 
             bonds.

             Successfully deploying private capital for public infrastructure 
             can, however, be challenging.  Large investors such as CalPERS 
             can deploy capital anywhere in the world.  AB 1545 proposes to 
             have the I-Bank use its expertise in infrastructure finance to 
             facilitate private sector-ready infrastructure along the border 
             region.

        4.Related Legislation This Session.   AB 2523  (Hueso) authorizes the 
          I-Bank, upon appropriation by the Legislature, to enter into 
          participation loan agreements with financial institutions for the 
          for the I-Bank to purchase interest in loans made or held by banking 
          or savings organizations to small businesses; requires the I-Bank to 
          include in its annual report a summary of the participation loan 
          agreement program; expands the role of the California Infrastructure 
          and Economic Development Bank to include facilitating infrastructure 
          and economic development financing activities within the California 
          and Mexico border region.  This measure is scheduled to be heard in 
          this Committee on July 2, 2012.

         AB 2619  (V. Manuel Perez) created the Start-Up California Impact 
          Investment Fund Program within the I-Bank to provide startup equity 
          funds to startup firms and small businesses.  This measure was held 
          on the Assembly Appropriations suspense file.
        
        5.Related Legislation.   AB 696  (Hueso) of 2011, required projects 
          selected for funding under the Infrastructure State Revolving Fund 
          Program to only be funded, if the project meets
        specified land use and economic development criteria.  This measure 
          was held on the Senate Appropriations Committee suspense file.
         
        AB 700  (Blumenfield) of 2011, would have established an independently 
          administered I-Bank.  This measure was vetoed by the Governor.

         AB 893  (V. Manuel Perez) of 2011, would have required the California 
          Infrastructure and Development Bank (I-Bank) to provide technical 
          support to small and rural communities in obtaining financing for 
          local infrastructure projects, and include information on public 





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          outreach activities in the I-Bank's annual report.  This measure was 
          held on the Senate Appropriations Committee suspense file.
         
        AB 1094  (John A. Pérez) of 2011, would have expanded the membership of 
          the board of directors of the I-Bank from five to seven members.  
          This measure was amended on the Senator Floor to deal with a 
          different subject matter.

         AB 1380  (Bass) of 2010, would have expanded the membership of the 
          board of directors of the I-Bank from five to seven members.  This 
          measure was held in the Senate Rules Committee.

         AB 1410  (Bass) of 2010, would have authorized the I-Bank to use 
          certain federal Community Development Block Grant moneys provided 
          through the federal American Recovery and Reinvestment Act to create 
          credit enhancements, loan guarantees, low-interest loans.  This 
          measure was held in the JEDE Committee.

         AB 1047  (V. Manuel Pérez) of 2009, would have established a local 
          assistance program, within the I-Bank, to assist small and rural 
          communities obtain bond financing for infrastructure projects.  This 
          measure was held in the Assembly Committee on Appropriations.

         AB 1272  (Arambula) of 2008, would have established a local assistance 
          program, within the 
        I-Bank, to assist small and rural communities obtain bond financing 
          for infrastructure projects.  This measure was held in the Assembly 
          Committee on Appropriations.

        1.Arguments in Support.  The  Coachella Valley Economic Partnership  and 
          other Coachella Valley organizations involved with economic 
          development are in support of this measure and indicate that with 
          Mexico serving as California's largest trading partner, it is 
          important that the State and Mexico develop a common approach to 
          growing each other's economy.  Coachella Valley states that the 
          North American Development Band which will facilitate and finance 
          Economic and Infrastructure projects on both sides of the border 
          region is an important step and supports this legislative vehicle to 
          make this important economic development a reality. 

        The  County of Imperial  explains that one of this county's most 
          perplexing problems currently involves finding the funding source to 
          complete the construction of a long-planned modernization of the 
          outmoded port-of-entry (POE) in downtown Calexico.  Despite having 
          spend upwards of $25 million in design work; environmental 
          clearance; and right-of-way acquisition, this shovel-ready project 





                                                                        AB 1545
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          (along with every other POE project) has been shelved indefinitely 
          by Congress due to concerns over the size of the national debt.  
          Imperial County is attempting to engage with the federal government 
          in a public private partnership but believe this measure is a 
          crucial piece to making their project a reality. 

        The  City of El Centro  and other cities along the border believe that 
          with the elimination of redevelopment agencies in California they 
          have lost a valuable resource to promote economic and community 
          development opportunities in their communities and believe that this 
          measure provides an opportunity to provide a financing mechanism for 
          valuable economic development projects. 


        SUPPORT AND OPPOSITION:
        
         Support:  

        Assembly Committee on Jobs, Economic Development and the Economy 
        (Sponsor)
        American Federation of State, County and Municipal Employees
        Calexico County Enterprise Zone
        California Association for Local Economic Development
        California Association for Micro Enterprise Opportunity
        City of Calipatria
        City of El Centro
        City of Imperial
        Coachella Valley Association of Governments
        Coachella Valley Economic Partnership
        Coachella Valley Enterprise Zone
        County of Imperial
        County of Riverside

         Opposition:  

        None of file as of June 27, 2012



        Consultant:Bill Gage