Bill Text: CA AB700 | 2011-2012 | Regular Session | Enrolled
Bill Title: Infrastructure and Economic Development Bank.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Vetoed) 2011-10-05 - Vetoed by Governor. [AB700 Detail]
Download: California-2011-AB700-Enrolled.html
BILL NUMBER: AB 700 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 30, 2011
PASSED THE ASSEMBLY SEPTEMBER 6, 2011
AMENDED IN SENATE JUNE 28, 2011
AMENDED IN SENATE JUNE 16, 2011
AMENDED IN ASSEMBLY MAY 10, 2011
INTRODUCED BY Assembly Member Blumenfield
FEBRUARY 17, 2011
An act to amend Sections 63021, 63021.5, and 63023 of, and to add
Sections 63034.5 and 63040.7 to, the Government Code, relating to
economic development.
LEGISLATIVE COUNSEL'S DIGEST
AB 700, Blumenfield. Infrastructure and Economic Development Bank.
(1) The Bergeson-Peace Infrastructure and Economic Development
Bank Act establishes the Infrastructure and Economic Development Bank
within the Business, Transportation and Housing Agency. The act
provides that bank is governed and its corporate powers are exercised
by a board of directors of which the Secretary of Business,
Transportation and Housing or his or her designee shall serve as
chair.
This bill would delete the provisions establishing the bank within
the Business, Transportation and Housing Agency and providing that
the Secretary of Business, Transportation and Housing or his or her
designee shall serve as chair of the board of directors. It instead
would provide that the bank is within state government and that the
Director of Finance or his or her designee shall serve as chair of
the board of directors.
(2) The act sets forth the duties and authority of the bank and
the board generally, including the financing of infrastructure and
economic development projects in the state.
This bill would authorize the bank to serve as a facilitator for
the development of infrastructure projects that serve regional
economic and community development activities. It would require the
bank to maintain an Internet Web site that includes information about
its programs.
This bill would require the board to adopt a set of 2-year goals
and measurable objectives, subject to specified criteria, and to
annually adopt a work plan to support the bank in meeting those goals
and measurable objectives.
(3) The act provides that the bank is under the direction of an
executive director appointed by the Governor, and sets forth the
duties and authority of the executive director to perform certain
acts in administering and directing the day-to-day operations of the
bank, if authorized by the board.
This bill would instead provide that the bank is under the
direction of a chief executive officer appointed by the Governor,
with these same duties and authority, and additionally provide that
the chief executive officer may enter into any interagency agreement
with another state agency for the performance of certain
administrative functions, if authorized by the board.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 63021 of the Government Code is amended to
read:
63021. (a) There is in state government the Infrastructure and
Economic Development Bank, which shall be responsible for
administering this division.
(b) The bank shall be under the direction of a chief executive
officer appointed by the Governor, and who shall serve at the
pleasure of the Governor. The appointment shall be subject to
confirmation by the Senate.
SEC. 2. Section 63021.5 of the Government Code is amended to read:
63021.5. (a) The bank shall be governed and its corporate power
exercised by a board of directors that shall consist of the following
persons:
(1) The Director of Finance or his or her designee, who shall
serve as chair of the board.
(2) The Treasurer or his or her designee.
(3) The Secretary of Business, Transportation and Housing or his
or her designee.
(4) An appointee of the Governor.
(5) The Secretary of State and Consumer Services Agency or his or
her designee.
(b) Any designated member of the board shall serve at the pleasure
of the designating power.
(c) Three of the members shall constitute a quorum and the
affirmative vote of three board members shall be necessary for any
action to be taken by the board.
(d) A member of the board shall not participate in any bank action
or attempt to influence any decision or recommendation by any
employee of, or consultant to, the bank that involves a sponsor of
which he or she is a representative or in which the member or a
member of his or her immediate family has a personal financial
interest within the meaning of Section 87100. For purposes of this
section, "immediate family" means the spouse, children, and parents
of the member.
(e) Except as provided in this subdivision, the members of the
board shall serve without compensation, but shall be reimbursed for
actual and necessary expenses incurred in the performance of their
duties to the extent that reimbursement for these expenses is not
otherwise provided or payable by another public agency, and shall
receive one hundred dollars ($100) for each full day of attending
meetings of the bank.
SEC. 3. Section 63023 of the Government Code is amended to read:
63023. In administering and directing the day-to-day operations
of the bank in regard to this division, the chief executive officer,
or whoever he or she shall assign, may do any of the following if
authorized by resolution of the board:
(a) Enter into contracts for investment, guarantee, or
enhancement.
(b) Establish procedures, guidelines, criteria, terms, conditions,
or other requirements of any contract, bond, grant, or program, as
the case may be, in order to carry out the intents and purposes of
the board in authorizing any bond, loan, or grant program pursuant to
this division.
(c) Decline to guarantee any risk, or to enter into any contract,
in which the minimum requirements of the guarantee trust fund or the
infrastructure bank fund are not complied with.
(d) Reinsure any risk or any part of any risk.
(e) Make rules for payments through the infrastructure bank fund
and the settlement of claims against the guarantee trust fund and
determine to whom and through whom the payments are to be made.
(f) Enter into any contracts or obligations relating to the
infrastructure bank fund and the guarantee trust fund.
(g) Invest and reinvest the moneys belonging to the infrastructure
bank fund and the guarantee trust fund as provided by this division.
(h) Enter into any contract or agreement, execute any instrument,
conduct all business and affairs, and perform all acts relating to
the infrastructure bank fund and the guarantee trust fund whether or
not specifically designated in this division.
(i) Enter into any interagency agreement with another state agency
for the performance of administrative functions necessary for
prudent and sound operation and management of the bank, including,
but not limited to, accounting, purchasing, human resources, property
management, information security, and cash management.
SEC. 4. Section 63034.5 is added to the Government Code, to read:
63034.5. (a) (1) The board shall adopt a set of two-year goals
and measurable objectives, consistent with the mission of the bank,
and applicable provisions of the State Environmental Goals and Policy
Report prepared pursuant to Section 65041, the California Economic
Development Strategic Plan prepared pursuant to Section 15570, the
Capital and Infrastructure Project Planning Report prepared by the
Director of Finance pursuant to Article 2 (commencing with Section
13100) of Chapter 2 of Part 3 of Division 3 of Title 2, or other
relevant reports as determined by the board. This requirement shall
not apply to reports or plans that are more than two years overdue or
that have not been adopted or approved, as determined by the board.
(2) (A) The board shall annually adopt a work plan to support the
bank in meeting the goals and measurable objectives adopted pursuant
to paragraph (1).
(B) The work plan shall include information on the bank's progress
in meeting its goals and measurable objectives adopted pursuant to
paragraph (1).
(b) The bank shall maintain an Internet Web site that includes
information about its programs, including, but not limited to,
technical assistance opportunities available to communities. The site
shall also have at least one link to the Internet Web site for the
Governor's Office of Economic Development, or other site serving as
the state's primary Internet Web site for dissemination of
information about economic development and business attraction,
retention, and expansion resources.
SEC. 5. Section 63040.7 is added to the Government Code, to read:
63040.7. The bank may serve as a facilitator for the development
of infrastructure projects that serve regional economic and community
development activities. In doing so, the bank may coordinate with
state infrastructure financing entities to assist local and regional
governments in developing and executing finance packages and related
development projects, and may also serve as an underwriter of all or
any portion of a project finance package.
