Bill Text: CA AB2518 | 2009-2010 | Regular Session | Introduced
Bill Title: Economic development: California Infrastructure and
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-05-28 - In committee: Set, second hearing. Held under submission. [AB2518 Detail]
Download: California-2009-AB2518-Introduced.html
BILL NUMBER: AB 2518 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member V. Manuel Perez
FEBRUARY 19, 2010
An act to amend Section 16727 of, and to add Section 63037 to, the
Government Code, relating to economic development, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 2518, as introduced, V. Manuel Perez. Economic development:
California Infrastructure and Economic Development Bank: local
assistance program.
The Bergeson-Peace Infrastructure and Economic Development Bank
Act generally sets forth the duties and authority of the California
Infrastructure and Economic Development Bank in administering various
programs for economic development activities in the state.
This bill would require the bank to establish a local assistance
program to provide technical support to the state's small and rural
communities in obtaining financing for local infrastructure projects,
as defined. The bill would create the Technical Assistance Account
in the California Infrastructure Bank Fund, require funds to support
program activities related to assisting communities in obtaining the
proceeds of specified bonds to be deposited in the account, and
continuously appropriate the moneys in the account to the bank for
purposes of the program, as specified.
The State General Obligation Bond Law generally sets forth the
authorized uses of proceeds of bonds issued under its provisions,
including, among other uses, the costs of construction or acquisition
of capital assets, and the costs of a state agency with
responsibility for administering the bond program.
This bill would include among the costs of a state agency with
responsibility for administering a bond program the cost of outreach
and technical assistance directly related to the construction or
acquisition of capital assets.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 16727 of the Government Code is amended to
read:
16727. Proceeds from the sale of any bonds issued pursuant to
this chapter shall be used only for the following purposes:
(a) The costs of construction or acquisition of capital assets.
"Capital assets" mean tangible physical property with an expected
useful life of 15 years or more. "Capital assets" also means
mean tangible physical property with an expected
useful life of 10 to 15 years, but these costs may
shall not exceed 10 percent of the bond proceeds
net of all issuance costs. "Capital assets" include major
maintenance, reconstruction, demolition for purposes of
reconstruction of facilities, and retrofitting work that is
ordinarily done no more often than once every 5 to 15 years or
expenditures that continue or enhance the useful life of the capital
asset. "Capital assets" also include equipment with an expected
useful life of two years or more. Costs allowable under this section
include costs incidentally but directly related to construction or
acquisition, including, but not limited to, planning, engineering,
construction management, architectural, and other design work,
environmental impact reports and assessments, required mitigation
expenses, appraisals, legal expenses, site acquisitions, and
necessary easements.
(b) To make grants or loans, if the proceeds of the grants or
loans are used for the costs of construction or acquisition of
capital assets. Bond proceeds may also be used to pay the costs of a
state agency for administering the grant or loan program.
(c) To repay funds borrowed in anticipation of the sale of the
bonds, including interest, or to pay interest on the bonds
themselves.
(d) To pay the costs of a state agency with responsibility for
administering the bond program program,
including, but not limited to, the cost of outreach and technical
assistance directly related to the construction or acquisition of
capital assets . These costs include those incurred by the
Treasurer, the Controller, the Department of Finance, and the Public
Works Board for staff, operating expenses and equipment, and
consultants' costs.
(e) The costs of the Treasurer's office directly associated with
the sale and payment of the bonds, including, but not limited to,
underwriting discounts, costs of printing, bond counsel,
registration, and fees of trustees.
Nothing in this section is intended to prohibit the investment of
bond proceeds or the use of proceeds of those investments in any
manner authorized by law.
SEC. 2. Section 63037 is added to the Government Code, to read:
63037. (a) (1) The bank shall establish a local assistance
program to provide technical support to small and rural communities
in the state in obtaining financing for local infrastructure
projects.
(2) For purposes of this section, the term "infrastructure
projects" has the same meaning as that given to the term "public
development facilities" in subdivision (q) of Section 63010.
(b) The program shall assist communities in developing strategic
plans, writing grants, applying for public and private loans and
guarantees, issuing bonds, and other activities directly related to
obtaining funding for infrastructure projects. Technical assistance
in this regard shall include extended interaction with a community
throughout the financing process, and shall be encouraged to maximize
public-private partnerships to the extent possible.
(c) The bank shall develop a competitive process for selecting
communities to be assisted under the program, based on infrastructure
need and community readiness to undertake the infrastructure
project. First priority shall be given to projects that remediate
severe health and safety problems. Second priority shall be given to
projects that promote economic development. Third priority shall be
given to projects that promote general health and safety. The bank
shall make every effort to widely advertise the availability of the
program and encourage applications from historically underserved
communities.
(d) The bank shall provide for no fewer than three professional
positions and one staff position to implement the program.
(e) (1) Funds to support program activities related to assisting
communities in obtaining the proceeds of bonds authorized pursuant to
Section 1 of Article XVI of the California Constitution, and
transferred pursuant to subdivision (d) of Section 16727, shall be
deposited in the Technical Assistance Account, which is hereby
created in the California Infrastructure Bank Fund. Notwithstanding
Section 13340, moneys in the account are continuously appropriated to
the bank in amounts representing the pro rata share of each source
of funds, and moneys transferred pursuant to subdivision (d) of
Section 16727 shall not be used for any other purpose than the
furtherance of the purpose of the respective bond acts by the
program.
(2) Other funds, excluding General Fund revenues, may be deposited
in the Technical Assistance Account and may be used to provide
technical assistance to communities for infrastructure projects
financed with funding sources other than those authorized pursuant to
Section 1 of Article XVI of the California Constitution.
(f) The bank shall individually track each funding source and its
use to ensure that all funding conditions are met and that only
eligible communities and eligible purposes are authorized.
