BILL ANALYSIS Ó
AB 2290
Page 1
Date of Hearing: May 7, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2290 (John A. Perez) - As Introduced: February 21, 2014
Policy Committee: JEDE Vote:6-1
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
Authorizes the California Infrastructure and Economic
Development Bank (I-Bank) to serve as the primary state agency
for applying to any federal infrastructure bank or financing
authority. Further, the bill expands the membership of the
board of directors from five to seven members and specifies that
legislative members will be nonvoting members and may appoint a
designee to serve in his or her place.
FISCAL EFFECT
Minor and absorbable costs to the I-Bank.
COMMENTS
1)Purpose . According to the author, this bill is intended to
allow the Legislature 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)Background . The I-Bank was established in 1994 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 comprised of the
Director of GO-Biz (chair), State Treasurer, Director
Department of Finance, Secretary of Transportation, and a
Governor's appointee.
In 2013, the Governor initiated a reorganization to dismantle
AB 2290
Page 2
the Business, Transportation and Housing Agency (BTH) and
shift a number of key programs and services to the Governor's
Office of Business and Economic Development (GO-Biz),
including the I-Bank. The transfer of the programs increased
GO-Biz by 40 positions without any administrative support.
Under BTH, all administrative functions were carried out
through interagency agreements with the California Highway
Patrol; those agreements did not transfer with the
reorganization.
The Governor's 2014-15 budget proposes $251,000 (GF) onetime
and $227,000 ongoing for four new positions to provide support
for administrative functions to Go-Biz, including the
California Competes Program and the Made in California Program
3)Prior legislation .
a) AB 701 (John A. Pérez), as passed by the JEDE committee,
authorized the I-Bank to serve as the primary state agency
for applying to any federal infrastructure bank or
financing authority. The bill also expanded the membership
of the board of directors from five to seven members and
specified legislative members will be nonvoting members.
Amendments taken in the Senate deleted the content of the
bill and added language relating to property tax allocation
in Orange County with Assemblymember Quirk-Silva as the
author. Chapter 393, Statutes of 2013.
b) AB 1094 (John A. Pérez) of 2012, as passed by the JEDE
committee, added a member of the Assembly and a member of
the Senate as advisory members to the board of
administration of the California Infrastructure and
Economic Development Bank. Amendments were taken to remove
the Bank provisions. The bill was held in the Senate
Committee on Rules.
Analysis Prepared by : Misty Feusahrens / APPR. / (916)
319-2081