Bill Text: CA AB2319 | 2015-2016 | Regular Session | Introduced
Bill Title: California Infrastructure and Economic Development Bank.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-11-30 - From committee without further action. [AB2319 Detail]
Download: California-2015-AB2319-Introduced.html
BILL NUMBER: AB 2319 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Gordon
FEBRUARY 18, 2016
An act to amend Sections 63010, 63041.5, and 63049.64 of the
Government Code, and to amend Section 31070.5 of the Streets and
Highways Code, relating to state government.
LEGISLATIVE COUNSEL'S DIGEST
AB 2319, as introduced, Gordon. California Infrastructure and
Economic Development Bank.
The Bergeson-Peace Infrastructure and Economic Development Bank
Act authorizes the California Infrastructure and Economic Development
Bank, governed by a board of directors, to, among other things, make
loans, issue bonds, and provide other financial assistance for
various types of infrastructure and economic development projects.
The act defines terms for its purposes and establishes the California
Infrastructure and Economic Development Bank Fund, a continuously
appropriated fund, for support of the bank.
This bill would expand the authority of the bank by adding
affordable housing, as defined, to the types of projects to which the
bank is authorized to provide financial assistance. By expanding the
banks's authority to expend funds in a continuously appropriated
fund, the bill would make an appropriation. This bill would also make
conforming, nonsubstantive changes to cross-references to this
provision.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 63010 of the Government Code is amended to
read:
63010. For purposes of this division, the following words and
terms shall have the following meanings unless the context clearly
indicates or requires another or different meaning or intent:
(a) "Act" means the Bergeson-Peace Infrastructure and Economic
Development Bank Act.
(b) "Affordable housing" means a dwelling available for purchase
or lease by persons and families who qualify as low- or
moderate-income, as defined in Section 50093 of the Health and Safety
Code, very low income households, as defined in Section 50105 of the
Health and Safety Code, or extremely low income households, as
defined in Section 50106 of the Health and Safety Code.
(b)
(c) "Bank" means the California Infrastructure and
Economic Development Bank.
(c)
(d) "Board" or "bank board" means the Board of
Directors of the California Infrastructure and Economic Development
Bank.
(d)
(e) "Bond purchase agreement" means a contractual
agreement executed between the bank and a sponsor, or a special
purpose trust authorized by the bank or a sponsor, or both, whereby
the bank or special purpose trust authorized by the bank agrees to
purchase bonds of the sponsor for retention or sale.
(e)
(f) "Bonds" means bonds, including structured, senior,
and subordinated bonds or other securities; loans; notes, including
bond, revenue, tax, or grant anticipation notes; commercial paper;
floating rate and variable maturity securities; and any other
evidences of indebtedness or ownership, including certificates of
participation or beneficial interest, asset backed certificates, or
lease-purchase or installment purchase agreements, whether taxable or
excludable from gross income for federal income taxation purposes.
(f)
(g) "Cost," as applied to a project or portion thereof
financed under this division, means all or any part of the cost of
construction, renovation, and acquisition of all lands, structures,
real or personal property, rights, rights-of-way, franchises,
licenses, easements, and interests acquired or used for a project;
the cost of demolishing or removing any buildings or structures on
land so acquired, including the cost of acquiring any lands to which
the buildings or structures may be moved; the cost of all machinery,
equipment, and financing charges; interest prior to, during, and for
a period after completion of construction, renovation, or
acquisition, as determined by the bank; provisions for working
capital; reserves for principal and interest and for extensions,
enlargements, additions, replacements, renovations, and improvements;
and the cost of architectural, engineering, financial and legal
services, plans, specifications, estimates, administrative expenses,
and other expenses necessary or incidental to determining the
feasibility of any project or incidental to the construction,
acquisition, or financing of any project, and transition costs in the
case of an electrical corporation.
(g)
(h) "Economic development facilities" means real and
personal property, structures, buildings, equipment, and supporting
components thereof that are used to provide industrial, recreational,
research, commercial, utility, goods movement, or service enterprise
facilities, community, educational, cultural, or social welfare
facilities and any parts or combinations thereof, and all facilities
or infrastructure necessary or desirable in connection therewith,
including provision for working capital, but shall not
include any housing. capital.
(h)
(i) "Electrical corporation" has the meaning set forth
in Section 218 of the Public Utilities Code.
(i)
(j) "Executive director" means the Executive Director
of the California Infrastructure and Economic Development Bank
appointed pursuant to Section 63021.
(j)
(k) "Financial assistance" in connection with a
project, includes, but is not limited to, any combination of grants,
loans, the proceeds of bonds issued by the bank or special purpose
trust, insurance, guarantees or other credit enhancements or
liquidity facilities, and contributions of money, property, labor, or
other things of value, as may be approved by resolution of the board
or the sponsor, or both; the purchase or retention of bank bonds,
the bonds of a sponsor for their retention or for sale by the bank,
or the issuance of bank bonds or the bonds of a special purpose trust
used to fund the cost of a project for which a sponsor is directly
or indirectly liable, including, but not limited to, bonds, the
security for which is provided in whole or in part pursuant to the
powers granted by Section 63025.1; bonds for which the bank has
provided a guarantee or enhancement, including, but not limited to,
the purchase of the subordinated bonds of the sponsor, the
subordinated bonds of a special purpose trust, or the retention of
the subordinated bonds of the bank pursuant to Chapter 4 (commencing
with Section 63060); or any other type of assistance deemed
appropriate by the bank or the sponsor, except that no direct loans
shall be made to nonpublic entities other than in connection with the
issuance of rate reduction bonds pursuant to a financing order or in
connection with a financing for an economic development facility.
For purposes of this subdivision, "grant" does not include grants
made by the bank except when acting as an agent or intermediary for
the distribution or packaging of financing available from federal,
private, or other public sources.
(k)
( l ) "Financing order" has the
meaning set forth in Section 840 of the Public Utilities Code.
( l )
(m) "Guarantee trust fund" means the
California Infrastructure Guarantee Trust Fund.
(m)
(n) "Infrastructure bank fund" means the California
Infrastructure and Economic Development Bank Fund.
(n)
(o) "Loan agreement" means a contractual agreement
executed between the bank or a special purpose trust and a sponsor
that provides that the bank or special purpose trust will loan funds
to the sponsor and that the sponsor will repay the principal and pay
the interest and redemption premium, if any, on the loan.
(o)
(p) "Participating party" means any person, company,
corporation, association, state, or municipal governmental entity,
partnership, firm, or other entity or group of entities, whether
organized for profit or not for profit, engaged in business or
operations within the state and that applies for financing from the
bank in conjunction with a sponsor for the purpose of implementing a
project. However, in the case of a project relating to the financing
of transition costs or the acquisition of transition property, or
both, on the request of an electrical corporation, or in connection
with financing for an economic development facility, or for the
financing of insurance claims, the participating party shall be
deemed to be the same entity as the sponsor for the financing.
(p)
(q) "Project" means designing, acquiring, planning,
permitting, entitling, constructing, improving, extending, restoring,
financing, and generally developing public development facilities
or facilities, affordable housing, or
economic development facilities within the state or financing
transition costs or the acquisition of transition property, or both,
upon approval of a financing order by the Public Utilities
Commission, as provided in Article 5.5 (commencing with Section 840)
of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code.
(q)
(r) "Public development facilities" means real and
personal property, structures, conveyances, equipment, thoroughfares,
buildings, and supporting components thereof, excluding any
housing, thereof that are directly related to
providing the following:
(1) "City streets" including any street, avenue, boulevard, road,
parkway, drive, or other way that is any of the following:
(A) An existing municipal roadway.
(B) Is shown upon a plat approved pursuant to law and includes the
land between the street lines, whether improved or unimproved, and
may comprise pavement, bridges, shoulders, gutters, curbs,
guardrails, sidewalks, parking areas, benches, fountains, plantings,
lighting systems, and other areas within the street lines, as well as
equipment and facilities used in the cleaning, grading, clearance,
maintenance, and upkeep thereof.
(2) "County highways" including any county highway as defined in
Section 25 of the Streets and Highways Code, that includes the land
between the highway lines, whether improved or unimproved, and may
comprise pavement, bridges, shoulders, gutters, curbs, guardrails,
sidewalks, parking areas, benches, fountains, plantings, lighting
systems, and other areas within the street lines, as well as
equipment and facilities used in the cleaning, grading, clearance,
maintenance, and upkeep thereof.
(3) "Drainage, water supply, and flood control" including, but not
limited to, ditches, canals, levees, pumps, dams, conduits, pipes,
storm sewers, and dikes necessary to keep or direct water away from
people, equipment, buildings, and other protected areas as may be
established by lawful authority, as well as the acquisition,
improvement, maintenance, and management of floodplain areas and all
equipment used in the maintenance and operation of the foregoing.
(4) "Educational facilities" including libraries, child care
facilities, including, but not limited to, day care facilities, and
employment training facilities.
(5) "Environmental mitigation measures" including required
construction or modification of public infrastructure and purchase
and installation of pollution control and noise abatement equipment.
(6) "Parks and recreational facilities" including local parks,
recreational property and equipment, parkways, and property.
(7) "Port facilities" including airports, landports, waterports,
railports, docks, harbors, ports of entry, piers, ships, small boat
harbors and marinas, and any other facilities, additions, or
improvements in connection therewith, that transport goods or
persons.
(8) "Power and communications" including facilities for the
transmission or distribution of electrical energy, natural gas, and
telephone and telecommunications service.
(9) "Public transit" including air and rail transport, airports,
guideways, vehicles, rights-of-way, passenger stations, maintenance
and storage yards, and related structures, including public parking
facilities, and equipment used to provide or enhance transportation
by bus, rail, ferry, or other conveyance, either publicly or
privately owned, that provides to the public general or special
service on a regular and continuing basis.
(10) "Sewage collection and treatment" including pipes, pumps, and
conduits that collect wastewater from residential, manufacturing,
and commercial establishments, the equipment, structures, and
facilities used in treating wastewater to reduce or eliminate
impurities or contaminants, and the facilities used in disposing of,
or transporting, remaining sludge, as well as all equipment used in
the maintenance and operation of the foregoing.
(11) "Solid waste collection and disposal" including vehicles,
vehicle-compatible waste receptacles, transfer stations, recycling
centers, sanitary landfills, and waste conversion facilities
necessary to remove solid waste, except that which is hazardous as
defined by law, from its point of origin.
(12) "Water treatment and distribution" including facilities in
which water is purified and otherwise treated to meet residential,
manufacturing, or commercial purposes and the conduits, pipes, and
pumps that transport it to places of use.
(13) "Defense conversion" including, but not limited to,
facilities necessary for successfully converting military bases
consistent with an adopted base reuse plan.
(14) "Public safety facilities" including, but not limited to,
police stations, fire stations, court buildings, jails, juvenile
halls, and juvenile detention facilities.
(15) "State highways" including any state highway as described in
Chapter 2 (commencing with Section 230) of Division 1 of the Streets
and Highways Code, and the related components necessary for safe
operation of the highway.
(16) (A) "Military infrastructure," including, but not limited to,
facilities on or near a military installation, that enhance the
military operations and mission of one or more military installations
in this state. To be eligible for funding, the project shall be
endorsed by the Office of Planning and Research.
(B) For purposes of this subdivision, "military installation"
means any facility under the jurisdiction of the Department of
Defense, as defined in paragraph (1) of subsection (e) of Section
2687 of Title 10 of the United States Code.
(17) "Goods movement-related infrastructure" including port
facilities, roads, rail, and other facilities and projects that move
goods, energy, and information.
(r)
(s) "Rate reduction bonds" has the meaning set forth in
Section 840 of the Public Utilities Code.
(s)
(t) "Revenues" means all receipts, purchase payments,
loan repayments, lease payments, and all other income or receipts
derived by the bank or a sponsor from the sale, lease, or other
financing arrangement undertaken by the bank, a sponsor, or a
participating party, including, but not limited to, all receipts from
a bond purchase agreement, and any income or revenue derived from
the investment of any money in any fund or account of the bank or a
sponsor and any receipts derived from transition property. Revenues
shall not include moneys in the General Fund of the state.
(t)
(u) "Special purpose trust" means a trust, partnership,
limited partnership, association, corporation, nonprofit
corporation, or other entity authorized under the laws of the state
to serve as an instrumentality of the state to accomplish public
purposes and authorized by the bank to acquire, by purchase or
otherwise, for retention or sale, the bonds of a sponsor or of the
bank made or entered into pursuant to this division and to issue
special purpose trust bonds or other obligations secured by these
bonds or other sources of public or private revenues. Special purpose
trust also means any entity authorized by the bank to acquire
transition property or to issue rate reduction bonds, or both,
subject to the approvals by the bank and powers of the bank as are
provided by the bank in its resolution authorizing the entity to
issue rate reduction bonds.
(u)
(v) "Sponsor" means any subdivision of the state or
local government including departments, agencies, commissions,
cities, counties, nonprofit corporations formed on behalf of a
sponsor, special districts, assessment districts, and joint powers
authorities within the state or any combination of these subdivisions
that makes an application to the bank for financial assistance in
connection with a project in a manner prescribed by the bank. This
definition shall not be construed to require that an applicant have
an ownership interest in the project. In addition, an electrical
corporation shall be deemed to be the sponsor as well as the
participating party for any project relating to the financing of
transition costs and the acquisition of transition property on the
request of the electrical corporation and any person, company,
corporation, partnership, firm, or other entity or group engaged in
business or operation within the state that applies for financing of
any economic development facility, shall be deemed to be the sponsor
as well as the participating party for the project relating to the
financing of that economic development facility.
(v)
(w) "State" means the State of California.
(w)
(x) "Transition costs" has the meaning set forth in
Section 840 of the Public Utilities Code.
(x)
(y) "Transition property" has the meaning set forth in
Section 840 of the Public Utilities Code.
SEC. 2. Section 63041.5 of the Government Code is amended to read:
63041.5. (a) It is the intent of the Legislature to provide a
one-time appropriation for financial assistance to local government
to meet capital outlay and infrastructure needs.
(b) From the funds appropriated in Item 2920-111-0001 of the
Budget Act of 1999, the sum of four hundred twenty-five million
dollars ($425,000,000) shall be available for financial assistance,
including, but not limited to, leveraged revolving fund loans, to
local government sponsors for public development facilities, as
specified in subdivision (q) (r) of
Section 63010 of the Government Code.
(c) From the funds appropriated in Item 2920-111-0001 of the
Budget Act of 1999 and in Item 2920-111-0001 of the Budget Act of
1998 (Chapter 324 of the Statutes of 1998), the California
Infrastructure and Economic Development Bank shall make no single
loan in excess of 10 percent of the combined amount of these
appropriations to the bank unless approved by unanimous consent of
the membership of the Board of Directors of the California
Infrastructure and Economic Development Bank and the Director of
Finance provides a 30-day written notice to the Chairperson and
Vice-Chairperson of the Joint Legislative Budget Committee.
SEC. 3. Section 63049.64 of the Government Code is amended to
read:
63049.64. (a) The bank may issue bonds pursuant to Chapter 5
(commencing with Section 63070) and may loan the proceeds thereof to
the association, and deposit the proceeds into a separate account in
the fund, or use the proceeds to refund bonds previously issued under
this article. Bond proceeds may also be used to fund necessary
reserves, capitalized interest, credit enhancement costs, or costs of
issuance.
(b) Bonds issued under this article shall not be deemed to
constitute a debt or liability of the state or of any political
subdivision thereof, other than the bank, or a pledge of the faith
and credit of the state or of any political subdivision, but shall be
payable solely from the fund and other revenues and assets securing
the bonds. All bonds issued under this article shall contain on the
face of the bonds a statement to that effect.
(c) For purposes of this article, the term "project," as defined
in subdivision (p) (q) of Section
63010, shall include financing of the costs of claims of insolvent
workers' compensation insurers, in an amount (together with
associated costs of financing) that may be determined by the
association in making a request for financing to the bank.
SEC. 4. Section 31070.5 of the Streets and Highways Code is
amended to read:
31070.5. For the purposes of this chapter, the following terms
have the following meanings, unless the context requires otherwise:
(a) "Authority" means the Bay Area Toll Authority established
under Section 30950.
(b) "Account" means the Toll Bridge Seismic Retrofit Account
established in the State Transportation Fund under Section 188.12.
(c) "Bank" means the California Infrastructure and Economic
Development Bank established under Section 63021 of the Government
Code.
(d) "Bay area bridges" means the state-owned toll bridges in the
region within the area of the jurisdiction of the Metropolitan
Transportation Commission.
(e) "Bonds" has the meaning defined in subdivision (e)
(f) of Section 63010 of the Government Code.
(f) "Department" means the Department of Transportation.
(g) "TIFIA" means the federal Transportation Infrastructure
Finance and Innovation Act of 1998 (P.L. 105-178).
(h) "Toll surcharge" means the seismic retrofit surcharge imposed
under Section 31010.
