Bill Text: CA SB471 | 2021-2022 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: The Racial and Economic Equity Grant Program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2022-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB471 Detail]
Download: California-2021-SB471-Amended.html
MAJORITY2/3
Appropriation:
NO
Fiscal Committee:
NOYES
Local Program:
NO
SECTION 1.
Bill Title: The Racial and Economic Equity Grant Program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2022-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB471 Detail]
Download: California-2021-SB471-Amended.html
|
Amended
IN
Senate
March 11, 2021 |
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Senate Bill
No. 471
| Introduced by Senator Hueso |
February 17, 2021 |
An act to add Division 10 (commencing with Section 7920) to Title 1 of the Government Code, relating to state government. economic development, by providing the funds necessary therefor through an election for the issuance and sale of bonds of the State of California and for the handling and disposition of those funds.
LEGISLATIVE COUNSEL'S DIGEST
SB 471, as amended, Hueso.
The Racial and Economic Equity Bond Act of 2021.
Existing law, the Economic Revitalization Act, establishes the Governor’s Office of Business and Economic Development, also known as “GO-Biz,” within the Governor’s office to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth, as provided. Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, establishes the California Infrastructure and Economic Development Bank and authorizes the bank to, among other things, make loans, issue bonds, and provide financial assistance to economic development or public development facilities. Existing law, the State General Obligation Bond Law, generally sets forth the procedures for the
issuance and sale of bonds governed by its provisions and for the disbursal of the proceeds of the sale of those bonds.
This bill would state the intent of the Legislature to enact future legislation entitled the “Racial and Economic Equity Bond Act of 2021.”
This bill would enact the Racial and Economic Equity Bond Act of 2021, which, if approved by the voters, would authorize the issuance of an unspecified amount of bonds, pursuant to the State General Obligation Bond Law. The bill would require that the proceeds of bonds issued and sold under these provisions be allocated for specified purposes, including, among others, comprehensive workforce development opportunities to participants in underresourced communities,
including education, training, certifications, or placement services for jobs and careers and improving public health outcomes for historically underresourced communities. The bill would authorize the use of up to 5% of the funds allocated to an eligible applicant under the bill’s provisions to pay administrative costs.
The bill would provide for the submission of the bond act to the voters at the next statewide general election.
Digest Key
Vote:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Division 10 (commencing with Section 7920) is added to Title 1 of the Government Code, to read:DIVISION 10. Racial and Economic Equity Bond Act of 2021
CHAPTER 1. General Provisions
7920.
This division shall be known, and may be cited, as the Racial and Economic Equity Bond Act of 2021.7921.
The Legislature finds and declares all of the following:(a) Building a 21st-century economy will be key to California’s economic recovery.
(b) The state’s economic recovery should focus on supporting projects focused on promoting fairness, expanding access and opportunity, improving outcomes, and reducing disparities experienced by historically underserved communities.
(c) Building a more equitable economy requires targeted interventions that advance economic opportunity for all.
(d) The impacts of underinvestment vary by communities and addressing these inequities
overwhelms the available resources of local and state government. The investment of public funds will address critical needs and build a more resilient economy.
7922.
As used in this division:(a) “Committee” means the Racial and Economic Equity Finance Committee created pursuant to Section 7952.
(b) “Fund” means the Racial and Economic Equity Trust Fund of 2021 created pursuant to Section 7923.
(c) “State General Obligation Bond Law” means the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2), as it may be amended from time to time.
7923.
The proceeds of bonds, excluding those issued in accordance with Section 7959, issued and sold pursuant to this division shall be deposited in the Racial and Economic Equity Trust Fund of 2021, which is hereby created in the State Treasury. All moneys in the fund, notwithstanding Section 13340, are hereby continuously appropriated without respect to fiscal years for the purposes of this division. Bonds shall be issued and delivered in the amount determined by the committee to be necessary or desirable pursuant to Section 7953.7924.
An eligible applicant that is allocated funds for a grant program pursuant to this division shall not use more than 5 percent of the funds allocated for the program to pay the administrative costs of that program.CHAPTER 2. Racial and Economic Equity Program
7925.
The proceeds of bonds issued and sold pursuant to this division, exclusive of refunding bonds issued to Section 7959 and any amount expended for administrative costs pursuant to Section 7924, shall be allocated in the following manner:(a) ____ dollars ($____) for increased comprehensive workforce development opportunities to participants in underresourced communities, including education, training, certifications, or placement services for jobs and careers.
(b) ____ dollars ($____) for the improvement of infrastructure and trade corridors that reduce environmental externalities.
(c) ____ dollars ($____) for increasing educational
outcomes and opportunities for historically underresourced communities, including, but not limited to, increasing educational attainment and success in the workforce for binational youth who are well-placed to participate in the binational economy.
(d) ____ dollars ($____) for improving public health outcomes for historically underresourced communities.
7926.
(a) The Legislature may, from time to time, amend any law related to programs to which funds are, or have been, allocated pursuant to this chapter for the purposes of improving the efficiency and effectiveness of those programs or to further the goals of those programs.(b) The Legislature may amend this chapter to reallocate the proceeds of bonds issued and sold pursuant to this division among the programs to which funds are to be allocated pursuant to this chapter as necessary to effectively promote the purposes of this division.
CHAPTER 3. Fiscal Provisions
7950.
(a) Bonds in the total amount of ____ dollars ($____), not including the amount of any refunding bonds issued in accordance with Section 7959, may be issued and sold for the purposes expressed in this division and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5. The bonds, when sold, issued, and delivered, shall be and constitute a valid and binding obligation of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both principal of, and interest on, the bonds as the principal and interest become due and payable.(b) The Treasurer shall issue and sell the bonds authorized in subdivision (a) in the amount
determined by the committee to be necessary or desirable pursuant to Section 7953. The bonds shall be issued and sold upon the terms and conditions specified in a resolution to be adopted by the committee pursuant to Section 16731.
7951.
(a) The bonds authorized by this division shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2), as amended from time to time, and all of the provisions of that law apply to the bonds and to this division and are hereby incorporated in this division as though set forth in full in this division, except that subdivisions (a) and (b) of Section 16727 shall not apply.(b) For purposes of this division, the references to “committee” in the State General Obligation Bond Law shall mean the Racial and Economic Equity Finance Committee created in Section 7952, and the references to
“board” in the State General Obligation Bond Law shall mean the appropriate state agency required to administer funds in accordance with Chapter 2 (commencing with Section 7925).
7952.
(a) Solely for the purpose of authorizing the issuance and sale pursuant to the State General Obligation Bond Law of the bonds authorized by this division, the Racial and Economic Equity Finance Committee is hereby created.(b) The committee consists of the Controller, the Treasurer, the Director of Finance, the Superintendent of Public Instruction, the Secretary of Labor and Workforce Development, and the Secretary of California Health and Human Services. Notwithstanding any other law, any member may designate a representative to act as that member in the member’s place for all purposes, as though the member were personally present.
(c) The Treasurer shall serve as
chairperson of the committee. A majority of the committee may act for the committee.
7953.
The committee shall determine by resolution whether or not it is necessary or desirable to issue and sell bonds authorized pursuant to this division in order to carry out the actions specified in this division and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds authorized to be issued be sold at any one time.7954.
There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds becoming due each year. It is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and perform each and every act that is necessary to collect that additional sum.7955.
Notwithstanding Section 13340, there is hereby continuously appropriated from the General Fund in the State Treasury, for the purposes of this division and without regard to fiscal years, an amount that equals the total of the following:(a) The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this division, as the principal and interest become due and payable.
(b) The sum necessary to carry out Section 7957.
7956.
The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, in accordance with Section 16312, for the purpose of carrying out this division less any amount withdrawn pursuant to Section 7957 and not yet returned to the General Fund. The amount of the request shall not exceed the amount of the unsold bonds that the committee has, by resolution, authorized to be sold for the purpose of carrying out this division, excluding any refunding bonds authorized pursuant to Section 7959, less any amount loaned pursuant to this section and not yet repaid and any amount withdrawn from the General Fund pursuant to Section 7957 and not yet returned to the General Fund. The board shall execute any documents required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated by the board in accordance with this division.7957.
For the purposes of carrying out this division, the Director of Finance may authorize the withdrawal from the General Fund of an amount not to exceed the amount of the unsold bonds that have been authorized by the committee to be sold for the purpose of carrying out this division, excluding any refunding bonds authorized pursuant to Section 7959, less any amount loaned pursuant to Section 7956 and not yet repaid, and any amount withdrawn from the General Fund pursuant to this section and not yet returned to the General Fund. Any amounts withdrawn shall be deposited in the fund. Any moneys made available under this section shall be returned to the General Fund from proceeds received from the sale of bonds for the purpose of carrying out this division.7958.
All moneys deposited in the fund that are derived from premium and accrued interest on bonds sold pursuant to this division shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest, except those amounts derived from premium may be reserved and used to pay the cost of bond issuance before any transfer to the General Fund.7959.
The bonds issued and sold pursuant to this division may be refunded in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2, which is a part of the State General Obligation Bond Law. Approval by the voters of the state for the issuance of the bonds described in this division includes the approval of the issuance of any bonds issued to refund any bonds originally issued under this division or any previously issued refunding bonds. Any bond refunded with the proceeds of refunding bonds as authorized by this section may be legally defeased to the extent permitted by law in the manner and to the extent set forth in the resolution, as amended from time to time, authorizing that refunded bond.7960.
Notwithstanding any other provision of this division, or of the State General Obligation Bond Law, if the Treasurer sells bonds pursuant to this division that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes under designated conditions or is otherwise entitled to any federal tax advantage, the Treasurer may maintain separate accounts for the investment of bond proceeds and for the investment of earnings on those proceeds. The Treasurer may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law or take any other action with respect to the investment and use of those bond proceeds or earnings required or desirable under federal law to maintain the tax exempt status of those bonds and to obtain any other advantage under federal law on behalf of the funds of this state.7961.
The proceeds from the sale of bonds authorized by this division are not “proceeds of taxes” as that term is used in Article XIII B of the California Constitution, and the disbursement of these proceeds is not subject to the limitations imposed by that article.SEC. 2.
Section 1 of this act shall take effect upon the approval by the voters of the Racial and Economic Equity Bond Act of 2021, as set forth in Section 1 of this act.SEC. 3.
Section 1 of this act shall be submitted to the voters at the next statewide election in accordance with provisions of the Government Code and the Elections Code governing the submission of a statewide measure to the voters.It is the intent of the Legislature to enact future legislation entitled the “Racial and Economic Equity Bond Act of 2021.”
