BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 2290
          Author:   John A. Pérez (D)
          Amended:  8/4/14 in Senate
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  5-2, 6/25/14
          AYES:  Wolk, Beall, DeSaulnier, Hernandez, Liu
          NOES:  Knight, Walters

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  57-20, 5/15/14 - See last page for vote


           SUBJECT  :    California Infrastructure and Economic Development  
          Bank

           SOURCE  :     Author


           DIGEST  :    This bill 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/her place.

           ANALYSIS  :    Existing law:

          Establishes the I-Bank within the Governor's Office of Business  
          and Economic Development (GO-Biz) and authorizes it to undertake  
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          a variety of infrastructure related financial activities  
          including, but not limited to, the administration of a revolving  
          loan fund and the issuance of tax-exempt and taxable revenue  
          bonds. 

          Specifies that the I-Bank board of directors shall consist of  
          the following: 

           The Director of GO-Biz or a designee (chair); 
           The Director of Finance or a designee; 
           The Treasurer or a designee; 
           The Secretary of Transportation or a designee; and 
           A Governor's appointee. 

          This bill allows the Assembly Speaker and the Senate Rules  
          Committee to each appoint a non-voting legislative member to the  
          California Infrastructure and Economic Development Bank's board  
          of directors, expanding the membership from five to seven.  The  
          bill specifies that legislative members can advise the board to  
          the extent that their advisory participation is not incompatible  
          with their duties as members of the Legislature.  

          This bill also designates the I-Bank as the primary state agency  
          for developing an application to any federal infrastructure bank  
          or financing authority, except where inconsistent with an  
          operating agreement between another state agency and a federal  
          agency.

           Comments
           
          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."

           Prior/Related legislation

           AB 311 (V. Manuel Perez, 2013) expands the role of the  
          California Infrastructure and Economic Development Bank (I-Bank)  
          to include facilitating infrastructure and economic development  
          financing activities within the California and Mexico border  

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          region.  AB 311 was held in Assembly Appropriations.
           
           AB 1272 (Medina, 2013) expands the authority of the I-Bank to  
          participate in regional, national and international  
          organizations related to infrastructure financing and support  
          projects involving goods movement.  AB 1272 was held in Assembly  
          Appropriations.
           
           AB 1094 (John A. Pérez, 2011), adds two non-voting legislative  
          members of the Infrastructure Bank's board of directors.  AB  
          1094 was amended to address school recycling.  AB 1094 died in  
          the Senate Rules Committee.

          AB 696 (Hueso, 2011) 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 696 was vetoed by  
          Governor Brown.

          AB 700 (Blumenfield, 2011) requires the I-Bank to adopt two-year  
          goals and measurable objectives, consistent with state  
          infrastructure, economic development and environmental plans and  
          authorizes the I-Bank to pursue streamlined administrative  
          functions.  AB 700 was vetoed by Governor Brown.

          AB 893 (V. Manuel Pérez, 2011) directs the I-Bank to enhance  
          outreach and technical assistance to small and rural communities  
          to obtain financing for infrastructure projects.  AB 893 died in  
          Senate Appropriations. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           ASSEMBLY FLOOR  :  57-20, 5/15/14
          AYES:  Achadjian, Alejo, Ammiano, Bloom, Bocanegra, Bonilla,  
            Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau,  
            Chesbro, Cooley, Dababneh, Daly, Dickinson, Eggman, Fong, Fox,  
            Frazier, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray, Hall,  
            Roger Hernández, Holden, Jones-Sawyer, Levine, Lowenthal,  
            Medina, Mullin, Muratsuchi, Nazarian, Pan, Perea, John A.  
            Pérez, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Weber,  
            Wieckowski, Wilk, Williams, Yamada, Atkins

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          NOES:  Allen, Bigelow, Chávez, Conway, Dahle, Donnelly, Beth  
            Gaines, Gorell, Grove, Hagman, Harkey, Jones, Linder, Logue,  
            Maienschein, Melendez, Nestande, Olsen, Patterson, Wagner
          NO VOTE RECORDED:  Mansoor, Waldron, Vacancy


          AB:nl  8/6/14   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  NONE RECEIVED

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