Bill Text: CA AB1533 | 2015-2016 | Regular Session | Chaptered
Bill Title: Infrastructure financing.
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Passed) 2015-09-30 - Chaptered by Secretary of State - Chapter 383, Statutes of 2015. [AB1533 Detail]
Download: California-2015-AB1533-Chaptered.html
BILL NUMBER: AB 1533 CHAPTERED
BILL TEXT
CHAPTER 383
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2015
APPROVED BY GOVERNOR SEPTEMBER 30, 2015
PASSED THE SENATE SEPTEMBER 2, 2015
PASSED THE ASSEMBLY SEPTEMBER 3, 2015
AMENDED IN SENATE AUGUST 31, 2015
AMENDED IN ASSEMBLY MAY 13, 2015
INTRODUCED BY Committee on Jobs, Economic Development, and the
Economy (Assembly Members Eduardo Garcia (Chair), Kim (Vice Chair),
Chau, Chu, Gipson, and Irwin)
MARCH 24, 2015
An act to repeal and add Section 12098.7 of, and to amend Section
63010 of, the Government Code, relating to state government.
LEGISLATIVE COUNSEL'S DIGEST
AB 1533, Committee on Jobs, Economic Development, and the Economy.
Infrastructure financing.
(1) The Bergeson-Peace Infrastructure and Economic Development
Bank Act establishes the California Infrastructure and Economic
Development Bank, within the Governor's Office of Business and
Economic Development, to be governed by a specified board of
directors. The act makes findings and declarations, provides
definitions, and authorizes the board to take various actions in
connection with the bank, including the issuance of bonds, as
specified.
This bill, among other things, would revise the definition of
economic development facilities to include facilities that are used
to provide goods movement and would define goods movement-related
infrastructure. The bill would revise the definition of port
facilities to specifically reference airports, landports, waterports,
and railports.
(2) Existing law authorizes the Governor's Office of Business and
Economic Development and its director to expend funds relating to the
Economic Adjustment Assistance Grant funded through the United
States Economic Development Administration.
This bill would repeal these provisions, and would specify that,
effective June 30, 2014, those funds are transferred to the Valley
Economic Development Corporation pursuant to the terms and conditions
agreed to by the United States Economic Development Administration,
the Governor's Office of Business and Economic Development, and the
Valley Economic Development Center, Inc., on June 17, 2014.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 12098.7 of the Government Code is repealed.
SEC. 2. Section 12098.7 is added to the Government Code, to read:
12098.7. Notwithstanding any other law, effective June 30, 2014,
the Economic Adjustment Assistance Grant funded through the United
States Economic Development Administration under Title IX of the
Public Works and Economic Development Act of 1965 (Grant No.
07-19-02709 and 07-19-2709.01) shall be transferred to the Valley
Economic Development Center, Inc. The State of California is the
dismissed grantee and the Valley Economic Development Center, Inc.,
shall be the successor grantee. All responsibilities and authorities
associated with these funds shall be transferred from the Governor's
Office of Business and Economic Development to the Valley Economic
Development Center, Inc., pursuant to the terms and conditions agreed
to by all parties, including the United States Economic Development
Administration, the Governor's Office of Business and Economic
Development, and the Valley Economic Development Center, Inc.,
pursuant to the Offer and Acceptance of Award Amendment For Transfer
of Award entered into by the parties on June 17, 2014.
SEC. 3. 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) "Bank" means the California Infrastructure and Economic
Development Bank.
(c) "Board" or "bank board" means the Board of Directors of the
California Infrastructure and Economic Development Bank.
(d) "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) "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) "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) "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.
(h) "Electrical corporation" has the meaning set forth in Section
218 of the Public Utilities Code.
(i) "Executive director" means the Executive Director of the
California Infrastructure and Economic Development Bank appointed
pursuant to Section 63021.
(j) "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) "Financing order" has the meaning set forth in Section 840 of
the Public Utilities Code.
( l ) "Guarantee trust fund" means the California
Infrastructure Guarantee Trust Fund.
(m) "Infrastructure bank fund" means the California Infrastructure
and Economic Development Bank Fund.
(n) "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) "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) "Project" means designing, acquiring, planning, permitting,
entitling, constructing, improving, extending, restoring, financing,
and generally developing public development facilities 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) "Public development facilities" means real and personal
property, structures, conveyances, equipment, thoroughfares,
buildings, and supporting components thereof, excluding any housing,
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) "Rate reduction bonds" has the meaning set forth in Section
840 of the Public Utilities Code.
(s) "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) "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) "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) "State" means the State of California.
(w) "Transition costs" has the meaning set forth in Section 840 of
the Public Utilities Code.
(x) "Transition property" has the meaning set forth in Section 840
of the Public Utilities Code.
