Bill Text: CA AB750 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Finance: investment trust blue ribbon task force.

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Vetoed) 2011-09-26 - Vetoed by Governor. [AB750 Detail]

Download: California-2011-AB750-Amended.html
BILL NUMBER: AB 750	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 31, 2011

INTRODUCED BY   Assembly Member Hueso

                        FEBRUARY 17, 2011

    An act to amend Section 42872 of the Public Resources
Code, relating to solid waste.   An act to add and
repeal Division 5 (commencing with Section 64160) of Title 6.7 of the
Government Code, relating to finance. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 750, as amended, Hueso.  Solid waste: waste tires.
  Finance: investment trust blue ribbon task force.
 
   The California Constitution provides for the election by the
people of the Treasurer and the Controller. Existing law requires the
Treasurer to receive and keep in the vaults of the treasury or to
deposit in banks or credit unions all moneys belonging to the state,
as specified. Existing law requires the Controller to superintend the
fiscal concerns of the state. Existing law requires the Controller
to audit all claims against the state, and authorizes the Controller
to audit the disbursement of any state money, for correctness,
legality, and for sufficient provisions of law for payment. 

   This bill would establish the investment trust blue ribbon task
force to consider the viability of establishing the California
Investment Trust, which would be a state bank receiving deposits of
all state funds. The trust would support economic development,
provide financing for housing development, public works and
educational infrastructure, provide stability to the financial
sector, provide state government banking services, lend capital to
specified financial institutions, and provide for excess earnings of
the trust to be used for state General Fund purposes. The bill would
establish the membership of the task force, which would include
designated Members of the Legislature and designees of the Governor,
Controller, and Treasurer, and would require the expenses of the task
force to be paid by the Senate and Assembly. The bill would require
the task force to report to the Legislature by December 1, 2012, on
its finding and recommendations relating to the viability of
establishing the California Investment Trust, as specified. 

   The California Tire Recycling Act imposes a California tire fee on
a new tire purchased in the state. The revenue generated from the
fee is used, upon appropriation by the Legislature, for the purposes
of programs related to waste tires. The act requires the Department
of Resources Recycling and Recovery to administer a tire recycling
program that promotes and develops alternatives to the landfill
disposal of used whole tires. A tire recycling program may include,
among other things, the awarding of grants or loans to businesses
that shred used tires for recycling, and the development of
information and education programs aimed at promoting alternatives to
the landfill disposal of used whole tires.  
   This bill would make technical, nonsubstantive changes in that
provision relating to a tire recycling program. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Division 5 (commencing with Section
64160) is added to Title 6.7 of the   Government Code 
 , to read:  

      DIVISION 5.  Investment Trust Blue Ribbon Task Force


   64160.  (a) There is hereby established the investment trust blue
ribbon task force.
   (b) The task force shall be composed of the following members:
   (1) The Senate Committee on Rules shall appoint one member from
each of the two largest caucuses of the Senate.
   (2) The Speaker of the Assembly shall appoint one member from each
of the two largest caucuses of the Assembly.
   (3) The Senate Committee on Rules and the Speaker of the Assembly,
jointly, shall appoint members representing a small sized
state-chartered bank, a medium sized state-chartered bank, a
federally chartered bank, local governments, and four citizens with a
background in financial issues.
   (4) The Controller, Treasurer, and Governor shall each appoint
designees who shall be members of the task force.
   (c) The task force shall choose its chair from among its
membership. The legislative members of the task force shall convene
the initial meeting of the task force on or before February 1, 2012.
   (d) The purpose of the task force shall be to consider the
viability of establishing the California Investment Trust, which
would be a state bank receiving deposits of all state funds, and to
report to the Legislature pursuant to Section 64161. The California
Investment Trust would do all of the following:
   (1) Support the economic development of California by increasing
access to capital for businesses and farms in the state.
   (2) Provide financing for housing development, public works
infrastructure, educational infrastructure, student loans, and
community quality of life projects.
   (3) Provide stability to the local financial sector.
   (4) Reduce the cost paid by state government for banking services.

   (5) Lend capital to banks, credit unions, and nonprofit community
development financial institutions to assist in meeting their goals
of increasing access to capital and providing banking services.
   (6) Provide for any earnings of the trust, beyond those necessary
for continued operation of the trust, to be used for General Fund
purposes.
   (e) The task force may employ staff support. All expenses of the
task force shall be paid by the Senate and Assembly, jointly, and
expenditures of the task force shall be subject to approval of the
Senate Committee on Rules and the Assembly Committee on Rules.
   (f) The task force may consult with individuals from the public
and private sector and establish an advisory committee to assist the
task force in creating the report required under Section 64161. If
the task force establishes an advisory committee, the members of the
committee shall not be entitled to any expense reimbursement.
   64161.  The task force shall, pursuant to Section 9795, report to
the Legislature on its findings and recommendations relating to the
viability of establishing the California Investment Trust. The report
shall be submitted by December 1, 2012, and shall review and make
recommendations on all of the following:
   (a) A strategic plan that would implement the purposes of the
trust, as set forth in subdivision (c) of Section 64160.
   (b) Capital requirements of the trust.
   (c) Sound underwriting practices for the trust.
   (d) Standards to ensure that loans from the trust result in the
outcomes described in the approved loan applications.
   (e) Recommended quarterly reports by the trust.
   (f) Transition of state financing functions to the trust.
   (g) A timeline for depositing state moneys into the trust.
   (h) Cash management and banking needs of the state.
   (i) Transparency requirements for trust operations.
   (j) Ethics and conflict-of-interest requirements for management of
the trust.
   (k) Any additional legislation that is recommended or necessary.
   (l) Initial capitalization options for the trust.
   64162.  This division shall become inoperative and is repealed on
January 1, 2017, pursuant to Section 10231.5.  
  SECTION 1.    Section 42872 of the Public
Resources Code is amended to read:
   42872.  The tire recycling program may include, but is not limited
to, the following:
   (a) The awarding of grants, subsidies, and loans to businesses or
other enterprises, and public entities, involved in activities and
applications that result in reduced landfill disposal of used whole
tires and reduced illegal disposal or stockpiling of used whole
tires.
   (b) The awarding of grants for research aimed at developing
technologies or improving current activities and applications that
result in reduced landfill disposal of used whole tires.
   (c) The awarding of grants or loans for the evaluation, planning,
design, improvement, and implementation of alternative used tire
recycling programs in the state.
   (d) The awarding of grants or loans to businesses that shred used
tires for purposes of recycling.
   (e) Development and implementation of an information and education
program, including seminars and conferences, aimed at promoting
alternatives to the landfill disposal of used whole tires.
   (f) The awarding of grants or loans to tire shredding programs at
authorized landfills, solid waste transfer stations, or dedicated
tire shredding facilities, including the direct purchase of shredders
or financing of shredder contracts. 
        
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