BILL ANALYSIS                                                                                                                                                                                                    �






                  SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
                                Mark Leno, Chair
                                        
          Bill No:       SB 822
          Author:        Evans
          As Amended:    March 24, 2011
          Consultant:    Brian Annis
          Fiscal:        Yes
          Hearing Date:  May 12, 2011
          
          Subject:  Infrastructure Plan.

          Summary:  This bill requires that the Governor annually 
          submit to the Treasurer a copy of the five-year 
          infrastructure plan.

          Background:  As part of the annual state budget proposal, 
          the Governor must submit a five-year infrastructure plan to 
          the Legislature.  This annual, five-year plan must 
          identify:  

                 Infrastructure projects requested by state 
               agencies.
                 Transportation projects identified in the State 
               Transportation Improvement Program.
                 K-12 school infrastructure needs.
                 Higher education facility needs.  

          The plan must estimate the costs of those infrastructure 
          projects.  The plan must also identify the criteria and 
          priorities for funding infrastructure, funding sources, the 
          effect on the state government's debt position, and 
          recommend specific projects for funding and capital outlay 
          appropriations (AB 1473, Hertzberg, 1999).  The criteria 
          for selecting state agencies' infrastructure projects must 
          be consistent with the state planning priorities adopted in 
          2002.  The State Department of Finance issued the 
          California Five-Year Infrastructure Plan in 2002, 2003, 
          2006, 2007, and 2008.  The Department intends to issue a 
          new five-year plan in January 2012.

          Proposed Law:  This bill requires that the annual five-year 
          infrastructure plan, which statute requires to be submitted 
          to the Legislature, also be submitted to the Treasurer.   
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          The five-year infrastructure report is publicly available 
          and posted on the Department of Finance website at the 
          following link:  
           http://www.dof.ca.gov/capital_outlay/reports/  .  Since the 
          report is already publicly available, this would merely 
          provide a formal delivery to the Treasurer.

          Support:  None on file.

          Opposed:  None on file.

          Comments:  This bill, by itself, does not change any 
          statutory responsibility of the Treasurer related to state 
          infrastructure.  By adding the Treasurer as a report 
          recipient, this bill would imply that both the Legislature 
          and the Treasurer are parties who would review and comment 
          on the Governor's infrastructure plan.  

          According to the author's office, it is appropriate that 
          the infrastructure report also be delivered to the 
          Treasurer since that office manages the sale of 
          voter-approved general obligation (GO) bonds and public 
          lease-revenue bonds to fund a variety of infrastructure 
          projects throughout the state.  The author's office notes 
          that the Treasurer's office is currently sponsoring SB 907 
          (Evans), a companion bill that would create the Master Plan 
          for Infrastructure Financing and Development Commission to 
          provide the state with independent and comprehensive 
          information to assist policymakers in analyzing and 
          prioritizing California's infrastructure needs.  The 
          Commission would include the Treasurer and be charged also 
          with assessing the viability of various financing 
          mechanisms to meet the state's infrastructure development 
          needs into the long-term future. 









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