BILL NUMBER: AB 893	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 31, 2011
	AMENDED IN ASSEMBLY  MAY 10, 2011
	AMENDED IN ASSEMBLY  APRIL 25, 2011

INTRODUCED BY   Assembly Member V. Manuel Pérez

                        FEBRUARY 17, 2011

    An act to amend Sections 16724, 63010, 63021.5, 63022,
63024, 63035, 63040, and 63050 of, and to add Sections 63027.3 and
63037 to, the Government Code, relating to state government, and
making an appropriation therefor.   An act to amend
Section 63035 of, and to add Section 63037 to, the Government Code,
relating to state government. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 893, as amended, V. Manuel Pérez. State government: California
infrastructure and economic development bank. 
   (1) Existing law, the State General Obligation Bond Law, contains
procedures for use in authorizing the issuance and sale and providing
for the repayment of state general obligation bonds. The State
General Obligation Bond Law requires that a bond act include various
provisions.  
   This bill would incorporate a requirement into the State General
Obligation Bond Law that a bond act include a provision that includes
a plan on how the bond will be administered, including outreach and
oversight, to ensure that the objectives of the bond act will be
adhered to.  
   (2) Existing law establishes the California Infrastructure and
Economic Development Bank in the Business, Transportation and Housing
Agency. Existing law authorizes the bank to carry out certain
projects, as defined. Existing law authorizes a sponsor, defined to
include specified state or local government entities, to make an
application to the bank for financial assistance in connection with a
project in a manner prescribed by the bank, and authorizes the bank
to take specified actions to support the sponsor's project. 

   This bill would revise the definition of projects. This bill would
expand the definition of sponsor to also include a federally
recognized Indian tribe.  
   (3) Existing law requires that the board of directors of the bank
consists of certain members, and is subject to certain voting and
quorum requirements.  
   This bill would alter the membership of the board of directors of
the bank by adding certain members. This bill would also require 4
members of the board to constitute a quorum and to take action.
 
   (4) Existing law sets forth the duties of the California
Infrastructure and Economic Development Bank. Existing law imposes
certain duties and grants certain powers to the executive director of
the bank.  
   This bill would impose additional duties and grant additional
powers to the executive director of the bank, as specified. This bill
would also require the bank to participate and help facilitate the
California Finance Coordinating Committee.  
   (5) 
    (1)  Existing law establishes the California
Infrastructure and Economic Development Bank Fund in the State
Treasury, and requires that moneys in that fund are only used for
specified purposes.
   This bill would require the bank to provide technical support to
small and rural communities in the state in obtaining financing for
local infrastructure projects.  This bill would establish the
Technical Assistance Account in the California Infrastructure and
Development Bank Fund, and would continuously appropriate the moneys
in the account to the bank to be used to provide technical support to
small and rural communities. This bill would authorize the bank to
use moneys in the California Infrastructure and Economic Development
Bank Fund to support the Technical Assistance Account. 

   (6) 
    (2)  Existing law requires the California Infrastructure
and Economic Development Bank to submit an annual report to the
Governor, and the Joint Legislative Budget Committee, that contains
specified requirements.
   This bill would require the bank to also submit the report to 
the appropriate fiscal and  policy committees of the
Legislature that oversee the bank, and would alter the requirements
of the report. 
   (7) Existing law requires the bank to notify the Governor, the
fiscal and policy committees of the Legislature that exercise
legislative oversight of the bank, and appropriate state and local
agencies, when the bank establishes or makes changes to the criteria,
priorities, and guidelines for project selection.  

   This bill would require the bank to notify the Governor, the
fiscal and policy committees of the Legislature that exercise
legislative oversight of the bank, and appropriate state and local
agencies, 60 days prior to the adoption or modification of criteria,
priorities, and guidelines for project selection.  
   (8) Existing law authorizes the California Infrastructure and
Economic Development Bank to issue revenue bonds, or authorize a
special purpose trust to issue bonds, for specified purposes and
subject to specified requirements.  
   This bill would also authorize the bank to issue letters of
credit, or guarantees of letters of credit subject to specified
requirements. 
   Vote: majority. Appropriation:  yes   no
 . Fiscal committee: yes. State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   
  SECTION 1.    Section 16724 of the Government Code
is amended to read:
   16724.  The bond act shall contain all of the following
provisions:
   (a) A statement of the total amount of bonds authorized to be
issued and the purpose for which the proceeds from the sale of the
bonds may be used.
   (b) The creation of a committee and fund, and the naming of the
board as these items are defined in Section 16722.
   (c) A statement that the bonds are valid obligations of the state
and a pledge of the full faith and credit of the state for the
punctual payment of both principal and interest thereof.
   (d) An appropriation from the General Fund in the State Treasury
of the sum annually as shall be necessary to pay the principal and
interest on the bonds as they become due and payable.
   (e) A requirement that there be collected annually in the same
manner and at the same time as other state revenue is collected the
sum, in addition to the ordinary revenues of the state, as is
required to pay the principal and interest on the bonds; and a
provision making it the duty of all officers charged by law with any
duty in regard to the collections of the revenue to do and perform
each and every act which is necessary to collect that additional sum.

   (f) If the bond act provides that the fund shall have any receipts
other than the proceeds of the sale of bonds, the proceeds of
interim financing, or the investment earnings on the proceeds of bond
sales or interim financing, then the bond act shall also specify
whether those receipts shall be transferred to the General Fund as a
reimbursement for debt service payments or be used for the same
purpose for which the proceeds of the sale of the bonds may be used.
   (g) A provision incorporating the provisions of this chapter, and
a declaration that the provisions hereof are included in the act as
though set out in full therein.
   (h) A statement that the bonds may be refunded in accordance with
Article 6 (commencing with Section 16780), and that approval of the
authorization of the bonds by the electors includes approval of any
bonds issued to refund the bonds originally issued.
   (i) A statement that notwithstanding any other provision of the
bond act, or of the State General Obligation Bond Law (Chapter 4
(commencing with Section 16720) of Part 3 of Division 4 of Title 2 of
the Government Code), if the Treasurer sells bonds pursuant to this
bond act 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, the Treasurer may maintain
separate accounts for the bond proceeds invested and the investment
earnings on those proceeds, and 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, as may be required or
desirable under federal law in order 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.
   (j) A statement that 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 purposes of
carrying out the bond act. 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 the bond act.
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 the bond act.
   (k) A provision that includes a plan on how the bond act will be
administered, including, but not limited to, outreach and oversight,
to ensure that the objectives of the bond act will be adhered to.
 
  SEC. 2.    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, 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; 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 a
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. "Project" also includes any
predevelopment or redevelopment costs associated with any project
described in the preceding sentence.
   (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 flood plain 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 docks, harbors, ports of entry,
piers, ships, small boat harbors and marinas, and any other
facilities, additions, or improvements in connection therewith.
   (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 of goods,
airports, guideways, vehicles, rights-of-way, passenger stations,
maintenance and storage yards, and related structures, including
public parking facilities, 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 Military and Aerospace Support established
pursuant to Section 13998.2.
   (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.
   (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. A sponsor also
means a federally recognized Indian tribe with lands that are
surrounded by the state and 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.
   (y) "California Finance Coordinating Committee" means a group of
state and federal agencies which administer one or more
infrastructure financing or grant programs. The members of the
committee work collaboratively to facilitate and expedite the
development of infrastructure projects by helping interested parties
identify and combine the resources of various state and federal
financing sources with other financing options. 
  SEC. 3.    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.
   (2) The Treasurer or his or her designee.
   (3) The Secretary of Business, Transportation and Housing or his
or her designee, who shall serve as chair of the board.
   (4) Four appointees of the Governor, one representing construction
trades, one being a business professional, one being a certified
economic development practitioner, and one general member of the
public.
   (6) The chairpersons of the Senate and Assembly policy committees
that oversee infrastructure and economic development issues, as
determined by the Speaker of the Assembly and the Senate Committee on
Rules, shall serve as ex officio nonvoting members of the board.
   (b) Any designated director shall serve at the pleasure of the
designating power.
   (c) Four of the members shall constitute a quorum and the
affirmative vote of four 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 authority.  
  SEC. 4.    Section 63022 of the Government Code is
amended to read:
   63022.  The executive director shall manage and conduct the
business and affairs of the bank, the infrastructure bank fund, and
guarantee trust fund, subject to the direction of the board. The
executive director shall oversee the annual outreach schedule of the
bank to ensure that outreach is coordinated with other similar
federal and state infrastructure development resources. Except as
otherwise provided in this section, the board may assign to the
executive director, by resolution, those duties generally necessary
or convenient to carry out its powers and purposes under this
chapter. Any action involving final approval of any bonds, notes, or
loans shall require the approval of a majority of the members of the
board. Subject to any conditions that the board may from time to time
prescribe, the executive director may exercise any power, function,
or duty conferred by law on the bank in connection with the
administration, management, and conduct of the business and affairs
of the bank, the infrastructure bank fund, and the guarantee trust
fund.  
  SEC. 5.    Section 63024 of the Government Code is
amended to read:
   63024.  (a) The executive director may contract with the
Department of Finance, the State Department of Health Services, the
Department of Transportation, the Department of Water Resources, the
California Integrated Waste Management Board, the State Water
Resources Control Board, the Governor's Office of Planning and
Research, and any other necessary agencies, persons, or firms to
enable the agency to properly perform the duties imposed by this
division.
   (b) The executive director may contract with any state or local
agency to underwrite, or otherwise assist, that entity to implement
an economic, community, or infrastructure development program or
project to the extent that these activities are consistent with this
division.
   (c) The executive director shall, in a timely and cost-effective
manner, enter into memorandums of understanding with related
financing programs for the purpose of expediting the approval and
packaging of infrastructure financing.
   (d) The bank shall participate and help facilitate, to the extent
that funding is available, the California Finance Coordinating
Committee, or similar or successor committee that has the same
functions, the members of which work collaboratively to facilitate
and expedite the development of infrastructure projects by helping
interested parties identify and combine the resources of various
state and federal financing sources with other financing options.
 
    SEC. 6.    Section 63027.3 is added to the
Government Code, to read:
   63027.3.  (a) The bank may issue letters of credit, or guarantees
for letters of credit, to secure and make more attractive to capital
markets revenue bonds issued pursuant to this chapter.
   (b) The bank may fix the premium of letters of credit, or
guarantees for letters of credit, at any rate or rates that the bank
determines to be reasonable. These rate or rates need not be uniform,
and may reflect any risks and classifications of risk as the bank
determines to be reasonable.
   (c) The bank may exercise those other powers as are necessary or
incidental to letters of credit or guarantees of letters of credit,
and related matters.
   (d) The bank shall make reasonable provision for the security of
letters of credit, or guarantees of letters of credit, or any other
letter of credit financing arrangements negotiated by the bank.
   (e) (1) Letters of credit or guarantees for letters of credit
issued pursuant to this section do not constitute a debt or liability
of the state or of any political subdivision thereof, other than the
bank or a special purpose trust, and do not constitute a pledge of
the full faith and credit of the state or any of its political
subdivisions, other than the bank or special purpose trust, but are
payable solely from the funds provided therefor under this chapter
and shall be consistent with Sections 1 and 18 of Article XVI of the
California Constitution.
   (2) All the letters of credit shall contain on the face thereof a
statement to the following effect:


   "Neither the full faith and credit nor the taxing power of the
State of California is pledged to the payment of the principal of, or
interest on, this letter of credit."


   (3) All the guarantees for letters of credit shall contain on the
face thereof a statement to the following effect:


   "Neither the full faith and credit nor the taxing power of the
State of California is pledged to the payment of the principal of, or
interest on, this guarantee for a letter of credit."


   (4) The issuance of letters of credit or guarantees for letters of
credit pursuant to this section shall not directly or indirectly or
contingently obligate the state or any political subdivision thereof
to levy or to pledge any form of taxation therefor or to make any
appropriation for their payment. This section shall not prevent, or
be construed to prevent, the bank from pledging the full faith and
credit of the infrastructure bank fund to the payment of letters of
credit or guarantees for letters of credit or issuance of letters of
credit or guarantees for letters of credit authorized pursuant to
this section. 
   SEC. 7.   SECTION 1.   Section 63035 of
the Government Code is amended to read:
   63035.  The bank shall, not later than November 1 of each year,
submit to the Governor, the  appropriate fiscal and  policy
committees of the Legislature that exercise legislative oversight of
the bank, and the Joint Legislative Budget Committee a report of its
activities pursuant to this division for the preceding fiscal year.
The report shall include all of the following:
   (a) (1) A listing of applications accepted, including a
description of the expected employment impact of each project.
 The expected employment impact shall detail the amount of
jobs created, retained, and indirectly impacted. 
   (2) A separate summary of applications for the Infrastructure
State Revolving Fund Program, including a summary of the number of
preliminary applications that did not receive funding and the reason
the applicant did not qualify.
   (3) A list of public outreach activities engaged in during the
year  , including outcomes  .
   (b) A specification of bonds sold and interest rates thereon.
   (c) The amount of other public and private funds leveraged by the
assistance provided.
   (d) A report of revenues and expenditures for the preceding fiscal
year, including all of the bank's costs. The information provided
pursuant to this subdivision shall include, but need not be limited
to, both of the following:
   (1) The amount and source of total bank revenues. Revenues shall
be shown by main categories of revenues, including interest earnings,
fees collected, and bond proceeds, for each bank program.
   (2) The amount and type of total bank expenditures. Expenditures
shall be shown by major categories of expenditures, including loans
provided, debt service payments, and program support costs, for each
bank program.
   (e) A projection of the bank's needs and requirements for the
coming year.
   (f) Recommendations for changes in state and federal law necessary
to meet the objectives of this division.
   SEC. 8.   SEC. 2.   Section 63037 is
added to the Government Code, to read:
   63037.  (a) The bank shall provide technical support to small and
rural communities in the state in obtaining financing for local
infrastructure projects.
   (b) For purposes of this section, "technical support" means
assisting 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) (1) Funds to support the services provided by this section
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 (c) of Section
63050, shall be deposited in the Technical Assistance Account, which
is hereby created in the California Infrastructure and Economic
Development 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 (c) of Section 63050 shall not be
used for any other purpose than the furtherance of the purpose of
the respective bond acts by this section.  
   (2) Other funds, including those funds received pursuant to
subdivision (g) or Section 63024, 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.
 
   (d) 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. 

   (e) 
    (c)  The bank may contract with other state agencies,
local agencies, or federal authorities for the purpose of providing
technical support to small and rural communities in the state
pursuant to this section. 
  SEC. 9.    Section 63040 of the Government Code is
amended to read:
   63040.  (a) Following consultation with appropriate state and
local agencies, the bank shall establish criteria, priorities, and
guidelines for the selection of projects to receive assistance from
the bank. Projects shall comply with the criteria, priorities, and
guidelines adopted by the bank.
   (b) The criteria, priorities, and guidelines shall, at a minimum,
be based upon the following:
   (1) The State Environmental Goals and Policy Report, or its
successor, approved pursuant to Article 5 (commencing with Section
65041) of Chapter 1.5 of Division 1 of Title 7. This requirement
shall not apply if the update to the report is more than two years
overdue.
   (2) If the sponsor is a state agency, board, commission, or
department, 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.

   (c) When the bank proposes to establish or modify changes to the
criteria, priorities, and guidelines, the bank shall notify the
Governor, the fiscal and policy committees of the Legislature that
exercise legislative oversight of the bank, and appropriate state and
local agencies 60 days prior to the adoption or modification.
   (d) The resolution required in Section 63041 shall have been
adopted prior to the project's selection by the bank. 

  SEC. 10.    Section 63050 of the Government Code
is amended to read:
   63050.  (a) There is hereby created in the State Treasury the
California Infrastructure and Economic Development Bank Fund for the
purpose of implementing the objectives and provisions of this
division. Within the fund there shall also be established a Sponsor
Revenue Bond Account, a Participating Party Revenue Bond Account, a
State Infrastructure Revolving Account, a Technical Assistance
Account, and additional accounts and subaccounts that the bank may
establish from time to time.
   (b) Notwithstanding Section 13340 and except as provided in
subdivision (c), all moneys in the infrastructure bank fund are
continuously appropriated without regard to fiscal years for the
support of the bank and shall be available for expenditure for the
purposes stated in this division.
   (c) Moneys in the infrastructure bank fund shall be available for
expenditure for general administration only upon appropriation by the
Legislature. This subdivision shall not limit the authority of the
bank to expend funds directly related to the servicing of approved
debt. Moneys in the fund shall be available for the purpose of
general administration of the authority only upon appropriation by
the Legislature, but not more than 5 percent of any bond proceeds
administered by the authority may be expended to cover the costs of
issuance, as that terminology is defined under Section 147 (G) of the
Internal Revenue Code. Moneys in the fund shall be available for the
purpose of providing technical support to small and rural
communities in the state pursuant to Section 63037.
   (d) Notwithstanding any other provision of this division, not more
than 15 percent of the financing annually approved by the executive
director that utilizes state funds from the infrastructure bank fund
may be expended upon educational facilities, environmental mitigation
measures, and parks and recreational facilities.
   (e) The executive director may transfer funds between the
infrastructure bank fund and the guarantee trust fund when
appropriate to accomplish the financing objectives of this division.