Bill Text: CA AB2819 | 2021-2022 | Regular Session | Amended

California Assembly Bill 2819 (Prior Session Legislation)

Bill Title: The Rural California Infrastructure Act.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Introduced - Dead) 2022-05-19 - In committee: Held under submission. [AB2819 Detail]

Download: California-2021-AB2819-Amended.html

Amended IN Assembly April 19, 2022

Amended IN Assembly March 17, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 2819

Introduced by Assembly Member Cooley
(Coauthor: Assembly Member Seyarto)
(Coauthor: Senator Nielsen)

February 18, 2022

An act to add Article 11 (commencing with Section 63049.73) to Chapter 2 of Division 1 of Title 6.7 of the Government Code, relating to infrastructure development, and making an appropriation therefor.

LEGISLATIVE COUNSEL'S DIGEST

AB 2819, as amended, Cooley. The Rural California Infrastructure Act.

Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, establishes the Infrastructure and Economic Development Bank (I-Bank) and authorizes it to, among other things, issue bonds, make loans, and provide other financial assistance to various types of projects that constitute economic development facilities or public development facilities. The act establishes in the State Treasury the California Infrastructure and Economic Development Bank Fund (I-Bank Fund) for the purpose of implementing the objectives and provisions of the act and continuously appropriates moneys in the fund, except as prescribed.

This bill, the Rural California Infrastructure Act, would authorize the I-Bank to establish the Rural California Infrastructure Program for the purpose of making competitive grant awards to eligible local agencies for rural infrastructure projects, as prescribed. The act would require the Controller to transfer a sum of $1,000,000,000 to the Rural California Infrastructure Account in the I-Bank Fund, which the bill would create and continuously appropriate for purposes of the act. By requiring the Controller to transfer moneys from the General Fund to the Rural California Infrastructure Account for purposes of the program, the bill would make an appropriation. The act would require the I-Bank to submit a specified report to the Governor and the Legislature regarding program activity in any fiscal year that the account receives funding or in which the I-Bank administers the program.

Vote: 2/3 Appropriation: YES Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Article 11 (commencing with Section 63049.73) is added to Chapter 2 of Division 1 of Title 6.7 of the Government Code, to read:

Article 11. Rural California Infrastructure Act

63049.73.

This article shall be known as the Rural California Infrastructure Act.

63049.74.

As used in this article:

(a) “Account” means the Rural California Infrastructure Account established pursuant to Section 63049.77.

(b) “Fund” means the California Infrastructure and Economic Development Bank Fund established pursuant to Section 63050.

(c) “Local agency” means a special district, independent fire district, or county, with a population of less than 300,000 individuals according to the 2020 census data.

(d) “Rural infrastructure project” means a project in a local agency’s jurisdiction that is either an economic development facility or a public development facility and meets any of the following criteria:

(1) The project is a disaster preparedness and mitigation project, including, but not limited to, all of the following:

(A) Creating, upgrading, or rehabilitating evacuation or shelter areas.

(B) Maintaining fairgrounds.

(C) Upgrading or rehabilitating highways, streets, and roads used for emergency evacuations or identified in the local, regional, or state disaster response plan as priority ingress and egress routes for first responders.

(D) A project identified as a disaster preparedness and mitigation project in the directives and requirements adopted to implement this article.

(2) The project is a disaster recovery project, including, but not limited to, drainage, water supply, and flood control.

(3) The project is a historic or cultural preservation, rehabilitation, or reconstruction project.

63049.75.

Article 3 (commencing with Section 63040), Article 4 (commencing with Section 63042), and Article 5 (commencing with Section 63043) shall not apply to grants provided by the bank pursuant to this article.

63049.76.

(a) (1) The bank may establish the Rural California Infrastructure Program for the purpose of making competitive grant awards to eligible local agencies for rural infrastructure projects pursuant to this article.

(2) The bank shall not implement the program before adopting a resolution finding that there is sufficient money in the account to cover the costs of implementing the Rural California Infrastructure Program, including, but not limited to, appropriate oversight costs.

(b) (1) Within six months of the bank adopting the resolution described in paragraph (2) of subdivision (a), the bank shall begin to accept grant applications from local agencies.

(2) The bank shall administer at least one funding round within both the first and second year of program implementation.

(1) The grant will fund no more than 50 percent of the total project cost.

(2) ~~The project is considered shovel ready.~~ The project addresses imminent threats related to fire or flooding.

(d) Local agencies that are awarded a grant pursuant to this article may additionally leverage ~~federal or private funding or~~ other public or private funding or participate in private-public partnerships to complete the rural infrastructure project for which the grant was awarded.

(e) The bank shall adopt directives and requirements to carry out the purposes of this article.

~~(f) (1)Grants~~
(f) All grants shall comply with the following conditions:

(1) Grants shall be awarded in a manner that ensures geographic equity.

(2) At least 70 50 percent of the grant funds shall be used for rural infrastructure projects that address disaster preparedness, mitigation, and recovery.

(3) Funds shall not be released until the local agency can demonstrate that it has the capacity and the full funding to complete the project.

(4) All public works financed pursuant to this section shall comply with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(5) As a condition of receiving a grant pursuant to this section, a local agency shall commit that none of the proceeds of the grant shall be used to pay an entity on a contract for a public works project, unless either of the following conditions is met:
(A) The entity being awarded the contract for the project by the local agency has provided an enforceable commitment to the local agency that the entity, and its contractors and subcontractors at every tier, will use a skilled and trained workforce to perform all work on the project that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.
(B) The project for which the funding is to be paid is being performed under a project labor agreement that will bind the entity, and all its contractors and subcontractors at every tier, to use a skilled and trained workforce to complete the project.
(6) For purposes of this subdivision, “project labor agreement” has the same meaning as in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.

(g) Notwithstanding any other law, the bank may implement, in whole or in part, the Rural California Infrastructure Program with the administrative support of any bank staff, with the administrative costs of those staff being reimbursed from the ~~account.~~ account established pursuant to Section 63049.77.

(h) The bank may administer the program authorized pursuant to this article through one or more of the bank’s other programs, including, but not limited to, the Infrastructure State Revolving Fund Program of the I-Bank, to the extent the requirements of this article are met.

63049.77.

(a) There is hereby established in the fund the Rural California Infrastructure Account. Notwithstanding Section 13340, moneys in the account are hereby continuously appropriated without regard to fiscal years for purposes of this article.

(b) On January 1, 2023, the Controller shall transfer one billion dollars ($1,000,000,000) to the account.

(d) (1) To cover the costs of administering the program, each applicant shall pay a nonrefundable application fee that includes an amount equal to a proportional share of the costs of developing the ~~program, reviewing applications, and~~ program and reviewing applications. Applicants awarded a grant will pay a nonrefundable fee that includes an amount equal to a proportional share of the costs of monitoring and overseeing the program.

(2) Fees paid pursuant to this subdivision shall be deposited into the account for the purpose of administering the grant program created by this article.

(e) Moneys allocated pursuant to subdivision (b) for purposes of administering this article may also be used to cover the costs of developing the program, reviewing applications, and monitoring and overseeing the program. If those moneys are used to cover these costs, the ~~application fee~~ fees described in subdivision (d) shall be reduced accordingly.

63049.78.

(a) On or before January 1, 2024, and annually thereafter, the bank shall submit a report to the Governor and the Legislature, pursuant to Section 9795, regarding program activity in any fiscal year that the account receives funding or in which the bank administers grants pursuant to this article.

(b) The report submitted pursuant to subdivision (a) shall include, but not be limited to, all of the following items:

(1) The total amount of moneys in the account and its subaccounts at the beginning and end of the most recently completed fiscal year.

(2) The number of projects ~~funded.~~ funded by the category of eligible infrastructure projects identified in subdivision (d) of Section 63049.74.

(3) The number of jobs created and the number of jobs retained through program assistance in each fiscal year.

(4) The amount of other public and private moneys that were contributed to projects that have been funded.

(c) The bank may include the information required by this section in any annual report of the bank to the Governor and the Legislature in lieu of submitting a separate report for purposes of complying with this section.