California SB 769

Existing law, 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, issue bonds, and provide other financial assistance for various types of infrastructure and economic development projects. Existing law establishes the California Infrastructure and Economic Development Bank Fund, a continuously appropriated fund, to support the bank. This bill would enact the Golden State Infrastructure Corporation Act and would establish the Golden State Infrastructure Corporation, within the State Treasurer's Office, as a not-for-profit corporation for the purpose of administering the act and financing infrastructure projects. The bill would require the corporation to be governed by a board of directors, with a prescribed membership, and would require the business and affairs of the corporation to be managed by an executive director appointed by the Treasurer. This bill would prescribe the powers and duties of the corporation, including entering into financing transactions, borrowing money or issuing bonds, and setting and charging fees for obtaining financing from the corporation. Under the bill, the state would not in any way be liable for any obligation of the corporation, and the corporation would not be required to pay any taxes, except as provided. The bill would require the corporation, not later than January 1 of each year, to submit to the Governor, the Legislature, and the Legislative Analyst's Office a report for the preceding fiscal year containing information on the Golden State Infrastructure Corporation Fund, which the bill would create, and the corporation's activities, including specified information. This bill would authorize the corporation to extend financing to either an infrastructure company, a governmental entity, or a combination of those entities, as provided, if the board determines that the financing meets specified criteria. The bill would authorize the corporation, upon board approval, to issue revenue bonds, in a principal amount that the board determines to be necessary, convenient, or desirable to provide moneys for the corporation's purposes, which may include, among others, to provide financing to one or more governmental entities or infrastructure companies for infrastructure projects, as provided. The bill would prescribe requirements for issuing the bonds. The bill would require the board to approve operational policies prior to providing financing for any infrastructure project. The bill would, for purposes of the California Public Records Act, treat the corporation as a state agency, as defined. The bill would, however, exempt from disclosure under that act specified corporate financial records or critical infrastructure information, as defined, furnished to the corporation that have not previously been made public, and would authorize the board, notwithstanding the provisions of the Bagley-Keene Open Meeting Act, to meet in closed session to review or discuss corporate financial records or critical infrastructure information necessary for the board to consider whether to approve or modify a financing, or to discuss the performance of any financing, provided to an infrastructure company for an infrastructure project. This bill would provide that all moneys in the Golden State Infrastructure Corporation Fund are continuously appropriated for the support of the corporation, to be available for expenditure for the purposes stated in the bill. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect.