BILL ANALYSIS �
AB 2292
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2292 (Bonta)
As Amended June 11, 2014
Majority vote
-----------------------------------------------------------------
|ASSEMBLY: | |(May 27, 2014) |SENATE: |36-0 |(August 4, |
| | | | | |2014) |
-----------------------------------------------------------------
(vote not relevant)
------------------------------------------------------------------------
|COMMITTEE VOTE: |8-0 |(August 13, 2014) |RECOMMENDATION: |concur |
|(L. Gov.) | | | | |
------------------------------------------------------------------------
Original Committee Reference: L. GOV.
SUMMARY : Allows an infrastructure financing district (IFD) to
finance public capital facilities or projects that include
broadband.
The Senate amendments :
1)Delete the provisions that would have authorized an 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 the provisions that would
have required the governing board of the City of Oakland to
establish a commission, as specified, to advise the city on the
safety concerns regarding development on the Howard Terminal.
2)Add new provisions to IFD law to allow any IFD to finance public
capital facilities or projects that include broadband.
3)Define, for purposes of the bill, the term "broadband" to mean a
"communications network facilities that enable high-speed
internet access."
EXISTING LAW :
1)Authorizes cities and counties to create IFDs and issue bonds to
pay for community scale public works: highways, transit, water
systems, sewer projects, flood control, child care facilities,
AB 2292
Page 2
libraries, parks, and solid waste facilities.
2)Allows an IFD to divert property tax increment revenues from
other local governments, excluding school districts, for up to 30
years, in order to pay back bonds issued by the IFD.
3)Requires that in order to form an IFD a city or county must
develop an infrastructure plan, send copies to every landowner,
consult with other local governments, and hold a public hearing.
4)Requires that when forming an IFD, local officials must find that
its public facilities are of communitywide significance and
provide significant benefits to an area larger than the IFD.
5)Requires that every local agency who will contribute its property
tax increment revenue to the IFD to approve the plan.
6)Requires a two-thirds voter approval of the formation of the IFD
and the issuance of bonds.
7)Requires majority voter approval for setting the IFD's
appropriations limits.
8)Specifies that public agencies that own land in a proposed IFD
may not vote on issues regarding the district.
9)Authorizes IFDs to issue a variety of debt instruments, including
bonds, certificates of participation, leases, and loans.
10)Requires any IFD that constructs dwelling units to set aside not
less than 20% of those units to increase and improve the
community's supply of low- and moderate-income housing available
at an affordable housing cost to persons and families of low- and
moderate-income.
AS PASSED BY THE ASSEMBLY , this bill:
1)Allowed any 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,
in addition to the projects authorized in existing IFD law.
2)Required the governing board of the City of Oakland to establish
a commission to advise the city on the safety concerns regarding
any development authorized by 1) above, on the Howard Terminal,
and requires the commission to consist of one member from each of
AB 2292
Page 3
the stakeholders involved in the development of the Howard
Terminal, including, but not limited to, all of the following:
a) A representative for the City of Oakland appointed by the
governing board of the City of Oakland;
b) A representative for the Port of Oakland appointed by the
Board of Port Commissioners; and,
c) Every owner or lessor of property located within the Howard
Terminal or a representative appointed by the owner or lessor.
3)Found and declared that a special law is necessary and that a
general law cannot be made applicable because of the unique
circumstances applicable to the City of Oakland and the need for
revitalization on the Oakland Army Base, the Howard Terminal, and
in the Coliseum City.
4)Provided that no reimbursement is required because the only costs
that may be incurred by a local agency or school district are the
result of a program for which legislative authority was requested
by that local agency or school district, as specified.
COMMENTS :
1)Purpose of this bill. This bill allows any IFD to finance public
capital facilities or projects that include broadband, and
defines "broadband" as communications network facilities that
enable high-speed Internet access.
This bill is sponsored by the City of San Leandro.
2)Author's statement. According to the author, "AB 2292 provides
cities and counties with a tool to expand broadband projects that
would bring high-speed communications, jobs, and new businesses
to local communities. Access to high-speed fiber optic networks,
like the one in San Leandro, provides businesses with a
significant competitive advantage, helping them to grow and
become industry leaders. Businesses connecting to San Leandro's
high-speed fiber loop enjoy Internet speeds of up to 10 gigabytes
per second, which is roughly 2,000 times the average speed of an
Internet connection in the U.S. [United States]. By adding
broadband-related projects to the list of facilities an IFD can
finance, AB 2292 will allow San Leandro and other local
governments to create and expand broadband networks that will
AB 2292
Page 4
help keep California at the forefront of the innovation economy."
3)IFDs. 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.
4)Public facilities of communitywide significance. State law says
that the types of public facilities of communitywide significance
that an IFD may finance are not limited to the types of projects
that are listed in statute. As a result, a city-wide fiber optic
network may already qualify for IFD financing, despite not being
specifically mentioned in the state laws governing IFDs. This
bill may only clarify what is already allowable under current
law.
5)Arguments in support. Supporters argue that changing state law
to add broadband-related projects to the list of approved IFD
uses will allow local governments throughout the state to be able
to create and expand broadband networks enabling California to
remain at the forefront of today's innovation economy.
6)Arguments in opposition. None on file.
Analysis Prepared by : Debbie Michel / L. GOV. / (916) 319-3958
FN: 0004650