BILL NUMBER: AB 147 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 7, 2014
AMENDED IN SENATE APRIL 30, 2014
AMENDED IN ASSEMBLY MAY 24, 2013
AMENDED IN ASSEMBLY APRIL 22, 2013
AMENDED IN ASSEMBLY APRIL 9, 2013
INTRODUCED BY Assembly Member V. Manuel Pérez
JANUARY 18, 2013
An act to amend Sections 3000.08 and 3451 of the Penal
Code, relating to punishment. 63000, 63010, 63025.1,
63045, and 63084 of, and to add Article 5.5 (commencing with Section
63047.1) to Chapter 2 of Division 1 of Title 6.7 of, the Government
Code, relating to economic development, making an appropriation
therefor, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 147, as amended, V. Manuel Pérez. Realignment Omnibus
Act of 2014. Economic development projects.
The Bergeson-Peace Infrastructure and Economic Development Bank
Act authorizes the California Infrastructure and Economic Development
Bank, governed by a board of directors, to make loans and provide
other assistance to public and private entities for various types of
economic development projects, among other things. The activities of
the bank under these provisions are funded from the California
Infrastructure and Economic Development Bank Fund, which is
continuously appropriated for these purposes.
This bill would authorize the board of directors to enter into
development and financing agreements for projects within the
California-Mexico border region, as defined. The bill would authorize
the bank to establish and participate in a binational financing
authority to facilitate and support the economic development of
communities within the border region. The bill would require the bank
to develop guidelines for the selection, review, and approval of
border region projects and authorize the bank to issue bonds, the
proceeds of which would be deposited in the Binational Development
Account, which the bill would create within the fund. By expanding
the purposes for which a continuously appropriated fund may be used,
the bill would make an appropriation. The bill would state that
certain provisions of this bill shall become operative only if the
Executive Director of the California Infrastructure and Economic
Development Bank determines that there are sufficient funds available
to implement those provisions and submits a letter to the
Legislature to that effect.
This bill would declare that it is to take effect immediately as
an urgency statute.
Existing law requires that all persons released from prison after
serving a prison term for a felony, be subject to postrelease
community supervision provided by a county agency for a period of 3
years immediately following release, except for persons released
after serving a term for a serious felony, a violent felony, an
offense for which the person was sentenced pursuant to the 3 strikes
law, a crime where the person is classified as a high-risk sex
offender, or a crime where the person is required to undergo
treatment by the State Department of State Hospitals because the
person has a severe mental disorder. Existing law requires that these
persons be subject to parole supervision by the Department of
Corrections and Rehabilitation following release from state prison
and the jurisdiction of the court in the county in which the parolee
is released, resides, or in which an alleged violation of supervision
has occurred.
This bill would also require that any person who is released from
prison who has a prior conviction for any of the above crimes be
subject to parole supervision by the department and the jurisdiction
of the court in the county in which the parolee is released, resides,
or in which an alleged violation of supervision has occurred.
Vote: majority 2/3 . Appropriation:
no yes . Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) Mexico is California's largest trading partner in the world.
The two economies are highly integrated with a substantial dependence
on cross-border trade, especially in southern California. A modern
border that provides for safe and efficient movement of people and
goods is therefore critical to both entities to maintain continued
growth in the economy and trade.
(b) The increased security demands since September 11, 2001, have
resulted in the need to have an even greater focus on the operations
of border crossings and approaches so that efficiency improvements
are made in concert with the implementation of enhanced safety and
security measures.
(c) One barrier to the expansion of trade and binational commerce
is the deficit in border infrastructure, which has not kept pace with
increases in trade and transit since ratification of the North
American Free Trade Agreement. Increased federal spending on ports of
entry is essential, as well as encouraging recapitalization of
binational border financing entities that include the North American
Development Bank. Even with increased federal funding, however, the
long-term success of the binational region is attracting more private
sector investment. Attracting new private capital will require new
ways of financing infrastructure and other economic
development-related projects and streamlining local and environmental
approvals.
(d) A binational approach to economic development also serves to
provide a vital, yet often overlooked, component to comprehensive
immigration reform. Workers from Mexico have historically served a
valuable role within many California industry sectors, including the
agriculture and tourism sectors. In some instances, however,
immigration creates economic and social challenges for the sending
and receiving countries, as well as for workers and businesses. It is
therefore in the interest of the state to find appropriate,
cost-effective ways to limit immigration by supporting economic
development and job creation.
(e) Funding business development and job creation activities along
the California-Mexico border region is a practical strategy for
minimizing and discouraging the undocumented flow of immigration from
Mexico. Economic development projects along the border and within
the north-south economic corridors benefit communities on both sides
of the border. Projects that stimulate job creation and strengthen
the local and regional economies can serve as a cost-effective
immigration control method, while strengthening the manufacturing,
trade, and goods movement capacity of California communities.
(f) A coherent economic strategy for the border region, based on
expediting legitimate commerce, relaxing federally imposed
restrictions on what border communities can do to build new
infrastructure, and endowing existing development institutions with
greater authority will result in immediate and long-term benefits to
the people of California.
(g) Supporting economic development activities within the border
region is not in conflict with clause 3 of Section 8 of Article I of
the U.S. Constitution because facilitating economic development
activities does not rise to the level of regulating commerce with
foreign nations and is consistent with the prior actions of the
United States Congress that have sanctioned and defined the trade and
commerce relationship between the United States and Mexico through a
range of legislative actions, including, but not limited to, the
approval of the North American Free Trade Agreement.
SEC. 2. Section 63000 of the Government
Code is amended to read:
63000. The Legislature finds and declares the following:
(a) Economic revitalization, future development, and a healthy
climate for jobs in California will depend upon a well-conceived
system of public improvements that are essential to the economic
well-being of the citizens of the state and are necessary to
maintain, as well as create, employment within the state for
business.
(b) It is necessary for public policy to support the efforts of
businesses attempting to expand, businesses seeking to locate in
California, and local economic development organizations, public
agencies, and new entrepreneurs by dedicating public fiscal resources
to confront obstacles and barriers that impede economic growth.
(c) Existing mechanisms that coordinate federal, state, local, and
private financial resources are inadequate to attract and sustain
that the level of private investment
that is essential to a growth economy.
(d) In order to secure and enhance the economic well-being of
Californians, promote economic development in the state, and provide
a healthy climate for the creation of jobs, it is necessary for
public policy to support the efforts of expanding businesses,
businesses seeking to locate in California, local development
organizations, public bodies, and new entrepreneurs to gain access to
capital through current and potential operations of financial
markets.
(e) The high cost and the lack of availability of industrial loans
for small- and medium-size businesses is making it difficult for
thousands of these enterprises to get established, to maintain their
present employment levels, or to expand employment.
(f) The problem of access to capital is acute in the high
technology industry clusters because companies must often finance
large capital expenditures early in their development cycle, and
cannot obtain financing sufficient to cover the cost of those
expenditures. Consideration should be given to industry clusters that
may include the following:
(1) Health care technology.
(2) Multimedia.
(3) Environmental technology.
(4) Information technology.
(g) The high cost and limited availability of loans and capital
has led a number of states to take action to remedy these conditions
through concerted public and private investment programs that include
efforts to do the following:
(1) Use the state's access to capital markets more effectively for
economic development.
(2) Create financing pools to access national and
international capital markets or help government sponsors and
public-private economic development organizations obtain credit
enhancement on their own.
(3) Facilitate credit enhancement for selected specific projects.
(4) Provide or arrange for loan insurance.
(5) Create and support secondary markets for loan portfolios of
urban and rural economic development corporations and others.
(6) Improve access to international capital markets.
(7) Provide opportunities for public pension funds and other
institutional investors to play a larger role in state economic
development.
(8) Arrange for or provide subordinated debt for selected
projects.
(9) Increase support for local local,
regional, and state infrastructure development.
(10) Improve access to global markets by supporting
manufacturing-linked goods and movement-related infrastructure within
state, national, and international transportation corridors.
(h) Local governments in California bear a primary responsibility
for the business of promoting job creation and economic development
efforts. California's continued reliance on autonomous local entities
often fails to adequately consider regional impacts of business
expansion. Projects of a regional nature need the benefit of a state
coordinating function to augment and enhance local economic
development and environmental efforts.
(i) The State of California has not embarked on a major
infrastructure financing effort since the decade of the 1960'
s, 1960s, despite persistent unemployment and
soaring population growth.
(j) California's ability to compete in a global economy depends
upon its capacity to implement policies that take maximum advantage
of public and private resources at the local, regional, state, and
national levels. These policies should be coordinated with any future
legislative plan involving growth management strategies designed to
make economic growth compatible with environmental protections. It is
the intent of the Legislature in enacting this act to create a
mechanism to finance projects needed to implement economic
development and job creation and growth management strategies, and to
provide a secure and stable funding source for implementation of
this act in order to meet critical economic, social, and
environmental concerns.
(k) The State of California needs a financing entity structured
with broad authority to issue bonds, provide guarantees, and leverage
state and federal funds using techniques that will target public
investment to facilitate private sector economic
development. growth. The goal is to expand
private sector investment within the state and produce more
private sector jobs with less public sector investment.
( l ) The mechanisms for financing public improvements
and private job creation strategies provided for in this act are in
the public interest, serve a public purpose, and will promote the
health, welfare, and safety of the citizens of the state.
(m) The lack of economic development along the border region with
Mexico has caused economic challenges to the state. The existence of
an economic development authority that addresses economic development
needs in these areas serves a public purpose and promotes the
health, welfare, and safety of the citizens of the state.
(m)
(n) The public policies and responsibilities of the
state, including all of the above purposes and functions, cannot be
fully obtained without the use of financing assistance and can be
most effectively furthered by the creation of the California
Infrastructure and Economic Development Bank.
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) (1) "Bonds" means bonds, including
structured, senior, and subordinated bonds or other securities;
loans; notes, including bond, revenue, tax
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.
(2) "Border region" means the area within 125 miles on each side
of the California-Mexico border, including areas along the
north-south and east-west transportation networks on both sides of
the border.
(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; 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.
facility located within the state or the border region, or both.
Financial assistance within areas outside of California shall meet
the requirements under Article 5.5 (commencing with Section 63047.1)
of Chapter 2.
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 state, international,
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 or
border region 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 border region 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. Projects within areas outside of California
shall meet the requirements under Article 5.5 (commencing with
Section 63047.1) of Chapter 2.
(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, 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
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.
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 of
goods, transport, airports, guideways, vehicles,
rights-of-way, passenger stations, maintenance and storage yards,
and related structures, including public parking facilities,
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,
"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.
(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
sponsor, or a participating party, including, but not limited
to, all receipts from a bond purchase agreement,
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.
SEC. 4. Section 63025.1 of the
Government Code is amended to read:
63025.1. The bank board may do or delegate the following to the
executive director:
(a) Sue and be sued in its own name.
(b) As provided in Chapter 5 (commencing with Section 63070),
issue bonds and authorize special purpose trusts to issue bonds,
including, at the option of the board, bonds bearing interest that is
taxable for the purpose of federal income taxation, or borrow money
to pay all or any part of the cost of any project, or to otherwise
carry out the purposes of this division.
(c) Engage the services of private consultants to render
professional and technical assistance and advice in carrying out the
purposes of this division.
(d) Employ attorneys, financial consultants, and other advisers as
may, in the bank's judgment, be necessary in connection with the
issuance and sale, or authorization of special purpose trusts for the
issuance and sale, of any bonds, notwithstanding Sections 11042 and
11043.
(e) Contract for engineering, architectural, accounting, or other
services of appropriate state agencies as may, in its judgment, be
necessary for the successful development of a project.
(f) Pay the reasonable costs of consulting engineers, architects,
accountants, and construction, land use, recreation, and
environmental experts employed by any sponsor or participating party
if, in the bank's judgment, those services are necessary for the
successful development of a project.
(g) Acquire, take title to, and sell by installment sale or
otherwise, lands, structures, real or personal property, rights,
rights-of-way, franchises, easements, and other interests in lands
that are located within the state, or transition property as the bank
may deem necessary or convenient for the financing of the project,
upon terms and conditions that it considers to be reasonable.
(h) Receive and accept from any source
source, including, but not limited to, the federal government,
the state, or any agency thereof, loans, contributions, or grants, in
money, property, labor, or other things of value, for, or in aid of,
a project, or any portion thereof.
(i) Make loans to any sponsor or participating party, either
directly or by making a loan to a lending institution, in connection
with the financing of a project in accordance with an agreement
between the bank and the sponsor or a participating party, either as
a sole lender or in participation with other lenders. However, no
loan shall exceed the total cost of the project as determined by the
sponsor or the participating party and approved by the bank.
(j) Make loans to any sponsor or participating party, either
directly or by making a loan to a lending institution, in accordance
with an agreement between the bank and the sponsor or participating
party to refinance indebtedness incurred by the sponsor or
participating party in connection with projects undertaken and
completed prior to any agreement with the bank or expectation that
the bank would provide financing, either as a sole lender or in
participation with other lenders.
(k) Mortgage all or any portion of the bank's interest in a
project and the property on which any project is located, whether
owned or thereafter acquired, including the granting of a security
interest in any property, tangible or intangible.
( l ) Assign or pledge all or any portion of the bank's
interests in transition property and the revenues therefrom, or
assets, things of value, mortgages, deeds of trust, bonds, bond
purchase agreements, loan agreements, indentures of mortgage or
trust, or similar instruments, notes, and security interests in
property, tangible or intangible and the revenues therefrom, of a
sponsor or a participating party to which the bank has made loans,
and the revenues therefrom, including payment or income from any
interest owned or held by the bank, for the benefit of the holders of
bonds.
(m) Make, receive, or serve as a conduit for the making of, or
otherwise provide for, grants, contributions, guarantees, insurance,
credit enhancements or liquidity facilities, or other financial
enhancements to a sponsor or a participating party as financial
assistance for a project.
(n) Lease the project being financed to a sponsor or a
participating party, upon terms and conditions that the bank deems
proper but shall not be leased at a loss; charge and collect rents
therefor; terminate any lease upon the failure of the lessee to
comply with any of the obligations thereof; include in any lease, if
desired, provisions that the lessee shall have options to renew the
lease for a period or periods, and at rents determined by the bank;
purchase any or all of the project; or, upon payment of all the
indebtedness incurred by the bank for the financing of the project,
the bank may convey any or all of the project to the lessee or
lessees.
(o) Charge and equitably apportion among sponsors and
participating parties the bank's administrative costs and expenses
incurred in the exercise of the powers and duties conferred by this
division.
(p) Issue, obtain, or aid in obtaining, from any department or
agency of the United States, from other agencies of the state, or
from any private company, any insurance or guarantee to, or for, the
payment or repayment of interest or principal, or both, or any part
thereof, on any loan, lease, or obligation or any instrument
evidencing or securing the same, made or entered into pursuant to
this division.
(q) Notwithstanding any other provision of this division, enter
into any agreement, contract, or any other instrument with respect to
any insurance or guarantee; accept payment in the manner and form as
provided therein in the event of default by a sponsor or a
participating party; and issue or assign any insurance or guarantee
as security for the bank's bonds.
(r) Enter into any agreement or contract, execute any instrument,
and perform any act or thing necessary or convenient to, directly or
indirectly, secure the bank's bonds, the bonds issued by a special
purpose trust, or a sponsor's obligations to the bank or to a special
purpose trust, including, but not limited to, bonds of a sponsor
purchased by the bank or a special purpose trust for retention or
sale, with funds or moneys that are legally available and that are
due or payable to the sponsor by reason of any grant, allocation,
apportionment or appropriation of the state or agencies thereof, to
the extent that the Controller shall be the custodian at any time of
these funds or moneys, or with funds or moneys that are or will be
legally available to the sponsor, the bank, or the state or any
agencies thereof by reason of any grant, allocation, apportionment,
or appropriation of the federal government or agencies thereof; and
in the event of written notice that the sponsor has not paid or is in
default on its obligations to the bank or a special purpose trust,
direct the Controller to withhold payment of those funds or moneys
from the sponsor over which it is or will be custodian and to pay the
same to the bank or special purpose trust or their assignee, or
direct the state or any agencies thereof to which any grant,
allocation, apportionment or appropriation of the federal government
or agencies thereof is or will be legally available to pay the same
upon receipt by the bank or special purpose trust or their assignee,
until the default has been cured and the amounts then due and unpaid
have been paid to the bank or special purpose trust or their
assignee, or until arrangements satisfactory to the bank or special
purpose trust have been made to cure the default.
(s) Enter into any agreement or contract, execute any instrument,
and perform any act or thing necessary, convenient, or appropriate to
carry out any power expressly given to the bank by this division,
including, but not limited to, agreements for the sale of all or any
part, including principal, interest, redemption rights or any other
rights or obligations, of bonds of the bank or of a special purpose
trust, liquidity agreements, contracts commonly known as interest
rate swap agreements, forward payment conversion agreements, futures
or contracts providing for payments based on levels of, or changes
in, interest rates or currency exchange rates, or contracts to
exchange cash-flows cashflows or a
series of payments, or contracts, including options, puts or calls to
hedge payments, rate, spread, currency exchange, or similar
exposure, or any other financial instrument commonly known as a
structured financial product.
(t) Purchase, with the proceeds of the bank's bonds, transition
property or bonds issued by, or for the benefit of, any sponsor in
connection with a project, pursuant to a bond purchase agreement or
otherwise. Bonds or transition property purchased pursuant to this
division may be held by the bank, pledged or assigned by the bank, or
sold to public or private purchasers at public or negotiated sale,
in whole or in part, separately or together with other bonds issued
by the bank, and notwithstanding any other provision of law, may be
bought by the bank at private sale.
(u) (1) Enter into purchase and sale
agreements with all entities, public and private, including state and
local government pension funds, with respect to the sale or purchase
of bonds or transition property.
(2) Enter into development and financing agreements for projects
within the border region, as prescribed in Article 5.5 (commencing
with Section 63047.1) of Chapter 2.
(v) Invest any moneys held in reserve or sinking funds, or any
moneys not required for immediate use or disbursement, in obligations
that are authorized by law for the investment of trust funds in the
custody of the Treasurer.
(w) Authorize a special purpose trust or trusts to purchase or
retain, with the proceeds of the bonds of a special purpose trust,
transition property or bonds issued by, or for the benefit of, any
sponsor in connection with a project or issued by the bank or a
special purpose trust, pursuant to a bond purchase agreement or
otherwise. Bonds or transition property purchased pursuant to this
title may be held by a special purpose entity, pledged or assigned by
a special purpose entity, or sold to public or private purchasers at
public or negotiated sale, in whole or in part, with or without
structuring, subordination or credit enhancement, separately or
together with other bonds issued by a special purpose trust, and
notwithstanding any other provision of law, may be bought by the bank
or by a special purpose trust at private sale.
(x) Approve the issuance of any bonds, notes, or other evidences
of indebtedness by the Rural Economic Development Infrastructure
Panel, established pursuant to Section 15373.7.
(y) Approve the issuance of rate reduction bonds by an entity
other than the bank or a special purpose trust to acquire transition
property upon approval of the transaction in 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.
(z) Apply for and accept subventions, grants, loans, advances, and
contributions from any source of money, property, labor, or other
things of value. The sources may include bond proceeds, dedicated
taxes, state appropriations, federal appropriations, federal grant
and loan funds, public and private sector retirement system funds,
and proceeds of loans from the Pooled Money Investment Account.
(aa) Do all things necessary and convenient to carry out its
purposes and exercise its powers, provided, however, that nothing
herein shall be construed to authorize the bank to engage directly in
the business of a manufacturing, industrial, real estate
development, or nongovernmental service enterprise. Further, the bank
shall not be organized to accept deposits of money for time or
demand deposits or to constitute a bank or trust company.
SEC. 5. Section 63045 of the Government
Code is amended to read:
63045. In order to provide or arrange for the financing of
economic development facilities, the bank may:
(a) Issue taxable revenue bonds pursuant to Chapter 5 (commencing
with Section 63070) to provide financing for economic development
projects compatible with the public interest as specified in Section
63046.
(b) Issue taxable revenue bonds pursuant to Chapter 5 (commencing
with Section 63070) to provide financing for the revolving loan funds
and economic development projects of small business development
corporations, local economic development corporations, community
development corporations, community development financial
institutions, and nonprofit organizations, which revolving loan
funds and economic development projects shall be compatible with the
public interest.
(c) Issue tax-exempt revenue bonds pursuant to Chapter 5
(commencing with Section 63070) to provide financing for economic
development facilities as permitted by federal law and in accordance
with applicable California law relating to the distribution of state
allocations for private activity bonds. Projects so financed shall be
compatible with the public interest as specified in Section 63046.
(d) Issue tax-exempt revenue bonds pursuant to Chapter 5
(commencing with Section 63070) for economic development facilities
of public sector and nonprofit organizations qualifying for exemption
under federal law.
SEC. 6. Article 5.5 (commencing with Section
63047.1) is added to Chapter 2 of Division 1 of Title 6.7 of the
Government Code , to read:
Article 5.5. Binational Financing Authority
63047.1. The bank is hereby authorized to establish and
participate in a binational financing authority for the purpose of
facilitating and supporting the economic development of communities
within both sides of the border region, thereby advancing job
opportunities for the economic well-being of the people of
California. Other participants in the authority may include, but are
not limited to, cities, counties, and other local government entities
within the Imperial Valley, San Diego County, the Coachella Valley,
the North American Development Bank, and governmental entities within
the border region of Mexico.
63047.2. (a) The bank may enter into an agreement with any
federal, state, local, or foreign economic and infrastructure
authority for the purpose of developing projects that include, but
are not limited to, predevelopment, economic development, and goods
movement-related infrastructure that benefit communities within the
border region. The bank's purpose is to serve a role that is similar
to the North American Development Bank.
(b) All projects funded pursuant to this article shall be
consistent with and included within an economic development plan that
has been jointly developed with participation from government,
business, and other stakeholders from the State of California and the
States of Baja and Sonora, Mexico. Participation by federal
representatives is encouraged but not required. The purpose of the
plan shall be to identify synergistic opportunities to address
existing problems and to meet the future needs of border crossings
along the California and Mexico border in order to support trade and
tourism.
(c) The bank shall develop guidelines for the selection, review,
and approval of projects within the border region.
(d) The bank shall report on its activities under this article as
part of its report pursuant to Section 63035.
(e) The bank shall have all of the powers that it has under
Section 63025.1 to implement this article, including, but not limited
to, the authority to receive and accept from any public or private
source, loans, contributions, or grants, in money, property, labor,
or other things of value, for, or in aid of, a project, or any
portion thereof.
(f) Bank funds under this article shall not be used to finance the
construction of a project outside of California unless those moneys
have come from a source other than the bank, including, but not
limited to, the North American Development Bank, the Export-Import
Bank of the United States, or the United States Department of State.
(g) Funds from the state General Fund shall not be used to finance
the activities authorized by this article.
63047.3. (a) The bank may issue taxable or tax-exempt revenue
bonds pursuant to Chapter 5 (commencing with Section 63070) and
deposit the proceeds from the bonds into the Binational Development
Account, which is hereby created, within the California
Infrastructure and Economic Development Bank Fund, established
pursuant to Section 63050. The bank may use the proceeds to refund
bonds previously issued under this article. Bond proceeds may also be
used to fund necessary reserves, capitalized interest, or costs of
issuance.
(b) Except as may be provided in the governing documents with
respect to bond anticipation notes, each of the bonds issued under
this article shall, to the extent provided in the governing
documents, be payable from, and secured by, all or a portion of the
revenues in the account and the assets of the fund, to the extent the
revenues and assets are pledged by the board for those purposes.
(c) Bonds issued under this article shall not be deemed to
constitute a debt or liability of the state or of any political
subdivision thereof, other than the bank, or a pledge of the faith
and credit of the state or of any political subdivision, but shall be
payable solely from the revolving fund and the assets of the
revolving fund, and the security provided by the revolving fund. All
bonds issued under this article shall contain on the face of the
bonds a statement to the same effect.
63047.4. Sections 63047.1, 63047.2, and 63047.3 shall become
operative only if the executive director determines that there are
sufficient funds available to implement this article and submits a
letter to that effect to the Legislature.
SEC. 7. Section 63084 of the Government
Code is amended to read:
63084. (a) Any issue of revenue bonds by the bank may be secured
and made more attractive to capital markets through financial
instruments, including, but not limited to:
(1) Deeds of trust on the resources, facilities, and revenues of
the projects.
(2) Credit enhancements, including, but not limited to, letters of
credit, bond insurance, and surety bonds provided by private
financial institutions.
(3) Insurance and guarantees provided by the bank itself.
(b) The bank may make loans to help establish and support the
revolving loan funds of small business development corporations,
economic development corporations, community development
corporations, and nonprofit corporations. The loans may be made from
any appropriate account or subaccount of the California
Infrastructure and Economic Development Bank Fund and as determined
by the bank. Loans may be made to a joint powers authority and
any binational development authority undertaking economic and
infrastructure development work within the border region to the
extent that at least one of the participants in the authority is a
nonprofit entity in good standing in California.
SEC. 8. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to facilitate and support the economic recovery of the
border region of California, it is necessary that this act take
effect immediately.
SECTION 1. This act shall be known, and may be
cited, as the Realignment Omnibus Act of 2014.
SEC. 2. Section 3000.08 of the Penal Code is
amended to read:
3000.08. (a) A person released from state prison prior to or on
or after July 1, 2013, after serving a prison term, or whose sentence
has been deemed served pursuant to Section 2900.5, for any of the
following crimes is subject to parole supervision by the Department
of Corrections and Rehabilitation and the jurisdiction of the court
in the county in which the parolee is released, resides, or in which
an alleged violation of supervision has occurred, for the purpose of
hearing petitions to revoke parole and impose a term of custody:
(1) A serious felony as described in subdivision (c) of Section
1192.7.
(2) A violent felony as described in subdivision (c) of Section
667.5.
(3) A crime for which the person was sentenced pursuant to
paragraph (2) of subdivision (e) of Section 667 or paragraph (2) of
subdivision (c) of Section 1170.12.
(4) Any crime for which the person is classified as a high-risk
sex offender.
(5) Any crime for which the person is required, as a condition of
parole, to undergo treatment by the State Department of State
Hospitals pursuant to Section 2962.
(b) A person released from state prison on or after January 1,
2015, after serving a prison term, or whose sentence has been deemed
served pursuant to Section 2900.5, to whom any of the following
apply, is subject to the jurisdiction of, and parole supervision by,
the Department of Corrections and Rehabilitation and the jurisdiction
of the court in the county in which the parolee is released,
resides, or in which an alleged violation of supervision has
occurred, for the purpose of hearing petitions to revoke parole and
impose a term of custody:
(1) The person has a prior conviction of a serious felony
described in subdivision (c) of Section 1192.7.
(2) The person has a prior conviction of a violent felony
described in subdivision (c) of Section 667.5.
(3) The person has a prior conviction for which the person was
sentenced pursuant to paragraph (2) of subdivision (e) of Section 667
or paragraph (2) of subdivision (c) of Section 1170.12.
(4) The person has a prior conviction of a crime for which the
person was classified as a high-risk sex offender.
(5) The person has a conviction of a crime for which the person
was required, as a condition of parole, to undergo treatment by the
State Department of State Hospitals pursuant to Section 2962.
(c) Notwithstanding any other law, all other offenders released
from prison shall be placed on postrelease supervision pursuant to
Title 2.05 (commencing with Section 3450).
(d) At any time during the period of parole of a person subject to
this section, if any parole agent or peace officer has probable
cause to believe that the parolee is violating any term or condition
of his or her parole, the agent or officer may, without warrant or
other process and at any time until the final disposition of the
case, arrest the person and bring him or her before the court, or the
court may, in its discretion, issue a warrant for that person's
arrest pursuant to Section 1203.2.
(e) Upon review of the alleged violation and a finding of good
cause that the parolee has committed a violation of law or violated
his or her conditions of parole, the supervising parole agency may
impose additional and appropriate conditions of supervision,
including rehabilitation and treatment services and appropriate
incentives for compliance, and impose immediate, structured, and
intermediate sanctions for parole violations, including flash
incarceration in a city or a county jail. Periods of "flash
incarceration," as defined in subdivision (f) are encouraged as one
method of punishment for violations of a parolee's conditions of
parole. This section does not preclude referrals to a reentry court
pursuant to Section 3015.
(f) "Flash incarceration" is a period of detention in a city or a
county jail due to a violation of a parolee's conditions of parole.
The length of the detention period can range between one and 10
consecutive days. Shorter, but if necessary more frequent, periods of
detention for violations of a parolee's conditions of parole shall
appropriately punish a parolee while preventing the disruption in a
work or home establishment that typically arises from longer periods
of detention.
(g) If the supervising parole agency has determined, following
application of its assessment processes, that intermediate sanctions
up to and including flash incarceration are not appropriate, the
supervising parole agency shall, pursuant to Section 1203.2, petition
either the court in the county in which the parolee is being
supervised or the court in the county in which the alleged violation
of supervision occurred, to revoke parole. At any point during the
process initiated pursuant to this section, a parolee may waive, in
writing, his or her right to counsel, admit the parole violation,
waive a court hearing, and accept the proposed parole modification or
revocation. The petition shall include a written report that
contains additional information regarding the petition, including the
relevant terms and conditions of parole, the
circumstances of the alleged underlying violation,
the history and background of the parolee, and any recommendations.
The Judicial Council shall adopt forms and rules of court to
establish uniform statewide procedures to implement this subdivision,
including the minimum contents of supervision agency reports. Upon a
finding that the person has violated the conditions of parole, the
court shall have authority to do any of the following:
(1) Return the person to parole supervision with modifications of
conditions, if appropriate, including a period of incarceration in
county jail.
(2) Revoke parole and order the person to confinement in the
county jail.
(3) Refer the person to a reentry court pursuant to Section 3015
or other evidence-based program in the court's discretion.
(h) Confinement pursuant to paragraphs (1) and (2) of subdivision
(g) shall not exceed a period of 180 days in the county jail.
(i) Notwithstanding any other law, if Section 3000.1 or paragraph
(4) of subdivision (b) of Section 3000 applies to a person who is on
parole and the court determines that the person has committed a
violation of law or violated his or her conditions of parole, the
person on parole shall be remanded to the custody of the Department
of Corrections and Rehabilitation and the jurisdiction of the Board
of Parole Hearings for the purpose of future parole consideration.
(j) Notwithstanding subdivision (a), any of the following persons
released from state prison shall be subject to the jurisdiction of,
and parole supervision by, the Department of Corrections and
Rehabilitation for a period of parole up to three years or the parole
term the person was subject to at the time of the commission of the
offense, whichever is greater:
(1) The person is required to register as a sex offender pursuant
to Chapter 5.5 (commencing with Section 290) of Title 9 of Part 1,
and was subject to a period of parole exceeding three years at the
time he or she committed a felony for which they were convicted and
subsequently sentenced to state prison.
(2) The person was subject to parole for life pursuant to Section
3000.1 at the time of the commission of the offense that resulted in
a conviction and state prison sentence.
(k) Parolees subject to this section who have a pending
adjudication for a parole violation on July 1, 2013, are subject to
the jurisdiction of the Board of Parole Hearings. Parole revocation
proceedings conducted by the Board of Parole Hearings prior to July
1, 2013, if reopened on or after July 1, 2013, are subject to the
jurisdiction of the Board of Parole Hearings.
(l) Except as described in subdivision (d), any person who is
convicted of a felony that requires community supervision and who
still has a period of state parole to serve shall discharge from
state parole at the time of release to community supervision.
(m) Any person released to parole supervision pursuant to
subdivision (a) or (b) shall, regardless of any subsequent
determination that the person should have been released pursuant to
subdivision (c), remain subject to subdivision (a) or (b) after
having served 60 days under supervision pursuant to subdivision (a)
or (b).
SEC. 3. Section 3451 of the Penal Code is
amended to read:
3451. (a) Notwithstanding any other law and except for persons
serving a prison term for any crime described in subdivision (b), all
persons released from prison on and after October 1, 2011, or, whose
sentence has been deemed served pursuant to Section 2900.5 after
serving a prison term for a felony shall, upon release from prison
and for a period not exceeding three years immediately following
release, be subject to community supervision provided by a county
agency designated by each county's board of supervisors which is
consistent with evidence-based practices, including, but not limited
to, supervision policies, procedures, programs, and practices
demonstrated by scientific research to reduce recidivism among
individuals under postrelease supervision.
(b) This section shall not apply to any person released from
prison after having served a prison term for any of the following:
(1) A serious felony described in subdivision (c) of Section
1192.7.
(2) A violent felony described in subdivision (c) of Section
667.5.
(3) A crime for which the person was sentenced pursuant to
paragraph (2) of subdivision (e) of Section 667 or paragraph (2) of
subdivision (c) of Section 1170.12.
(4) Any crime for which the person is classified as a high risk
sex offender.
(5) Any crime for which the person is required, as a condition of
parole, to undergo treatment by the State Department of State
Hospitals pursuant to Section 2962.
(c) This section shall not apply to any person released from
prison to whom any of the following apply:
(1) The person has a prior conviction of a serious felony
described in subdivision (c) of Section 1192.7.
(2) The person has a prior conviction of a violent felony
described in subdivision (c) of Section 667.5.
(3) The person has a prior conviction for which the person was
sentenced pursuant to paragraph (2) of subdivision (e) of Section 667
or paragraph (2) of subdivision (c) of Section 1170.12.
(4) The person has a prior conviction of a crime for which the
person was classified as a high-risk sex offender.
(5) The person has a conviction of a crime for which the person
was required, as a condition of parole, to undergo treatment by the
State Department of State Hospitals pursuant to Section 2962.
(d) (1) Postrelease supervision under this title shall be
implemented by a county agency according to a postrelease strategy
designated by each county's board of supervisors.
(2) The Department of Corrections and Rehabilitation shall inform
every prisoner subject to the provisions of this title, upon release
from state prison, of the requirements of this title and of his or
her responsibility to report to the county agency responsible for
serving that inmate. The department shall also inform persons serving
a term of parole for a felony offense who are subject to this
section of the requirements of this title and of his or her
responsibility to report to the county agency responsible for serving
that parolee. Thirty days prior to the release of any person subject
to postrelease supervision by a county, the department shall notify
the county of all information that would otherwise be required for
parolees under subdivision (e) of Section 3003.
(e) Any person released to postrelease community supervision
pursuant to subdivision (a) shall, regardless of any subsequent
determination that the person should have been released to parole
pursuant to Section 3000.08, remain subject to subdivision (a) after
having served 60 days under supervision pursuant to subdivision (a).