BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2292
                                                                  Page  1

          Date of Hearing:   May 21, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     AB 2292 (Bonta) - As Amended:  May 13, 2014 

          Policy Committee:                              Local  
          GovernmentVote:8 - 1 

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          As proposed to be amended, this bill allows an infrastructure  
          financing district (IFD) within the Oakland Army Base, the  
          Howard Terminal, or the Coliseum City in the City of Oakland to  
          finance public capital facilities or projects that include  
          freight rail, and further requires the City of Oakland to  
          establish a commission to advise the city on the safety concerns  
          regarding any development authorized by this bill. 

           FISCAL EFFECT  

          Unknown costs, likely in the range of $100,000 for the City of  
          Oakland to establish and carry out the duties of the required  
          commission. Because the bill contains a local request  
          disclaimer, any costs incurred by the City of Oakland, the  
          sponsor of the bill, will not be reimbursable by the state.

           COMMENTS  

           1)Purpose  . According to the author, IFDs have become more  
            attractive to help finance public capital facilities such as  
            highways, ramps and bridges, arterial streets and transit  
            facilities. In Oakland, the economic development agency is  
            working toward creating IFDs to support long term, sustainable  
            growth at three major economic hubs, the Oakland Army Base,  
            the Howard Terminal site, and the area known as Coliseum City.  
             However, to achieve their economic goals, the author contends  
            they need to include freight rail as an eligible expense for  
            IFDs.

            This bill allows an IFD within the Oakland Army Base, the  








                                                                  AB 2292
                                                                  Page  2

            Howard Terminal, or the Coliseum City in the City of Oakland  
            to finance capital facilities or projects that include freight  
            rail, in addition to projects already authorized under  
            existing IFD law.  The bill does not create an IFD within the  
            City. The IFD would need to be created at the local level  
            following existing IFD law.

           2)Background  . Cities and counties can create IFDs and issue  
            bonds to pay for community scale public works, including  
            highways, transit, water systems, sewer projects, flood  
            control, child care facilities, libraries, parks and solid  
            waste facilities.  To repay the bonds, IFDs divert property  
            tax increment revenues from other local governments for a  
            period of 30 years.  IFDs, however, are prohibited from  
            diverting property tax increment revenues from schools.


           Analysis Prepared by  :    Jennifer Swenson / APPR. / (916)  
          319-2081