BILL NUMBER: SB 907AMENDED BILL TEXT AMENDED IN SENATE APRIL 25, 2011 AMENDED IN SENATE APRIL 11, 2011 AMENDED IN SENATE MARCH 30, 2011 INTRODUCED BY Senator Evans (Principal coauthor: Assembly Member V. Manuel Prez) FEBRUARY 18, 2011 An act to add and repeal Title 18.2 (commencing with Section 99090) of the Government Code, relating to infrastructure financing and development. LEGISLATIVE COUNSEL'S DIGEST F SB 907, as amended, Evans. Master Plan for Infrastructure Financing and Development Commission. The California Constitution regulates the issuance of debt by the state and requires that debt in excess of $300,000 for which the state will be generally obligated be submitted to, and approved by, the voters. This bill would create the Master Plan for Infrastructure Financing and Development Commission, consisting of specified members, and would require the commission to prepare and submit a strategy and plan for infrastructure development in California that meets certain criteria to the Legislature and the Governor by December 1, 2013. This bill would provide that the commission would dissolve 30 days after submission of its final report. This bill would repeal these provisions upon the dissolution of the commission. The bill would provide that these provisions become operative only if the funds required to support the commission are appropriated and made available in the annual Budget Act. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: F SECTION 1. Title 18.2 (commencing with Section 99090) is added to the Government Code, to read: TITLE 18.2. Master Plan for Infrastructure Financing and Development Commission F CHAPTER 1. GENERAL PROVISIONS F 99090. The Legislature finds and declares all of the following: (a) By 2050, an estimated 60 million people will call California home, twice as many people who lived here in 2003, while our current infrastructure of schools, universities, roads, housing, and water delivery was built to serve 25 million residents. (b) The Governor's Strategic Growth Plan estimates that the state has approximately five hundred billion dollars ($500,000,000,000) in infrastructure needs over the next 20 years. While the state needs five hundred billion dollars ($500,000,000,000) of infrastructure investment, experts conclude that public funds, including state and local dollars, can only finance up to three hundred billion dollars ($300,000,000,000) in projects, leaving approximately two hundred billion dollars ($200,000,000,000) in unfunded infrastructure needs. (c) California must examine ways to close the infrastructure financing gap through all types of innovative financing available. (d) Our state lacks information that is both independent and comprehensive to assist policymakers to analyze and prioritize the myriad of California's infrastructure needs. For this reason, it is necessary to create a strategy and plan for infrastructure development that enables California to address social, economic, and resource needs through 2050. This strategy must be founded on the principle that infrastructure provides a means to achieve public, economic, and policy objectives. As such, the strategy will assess infrastructure needs, establish priorities to guide future decisions that relate to infrastructure projects, and assess the viability of various financing mechanisms to meet the state's infrastructure development needs. (e) It is the mission of the Master Plan for Infrastructure Financing and Development to develop and recommend a plan and process to identify, finance, build, and maintain infrastructure necessary to meet the needs of Californians from the present year to the year 2050. The plan shall be submitted to the Governor and the Legislature, and shall include, at a minimum, the type, distribution, and priority for developing infrastructure projects, and a measurable process to implement the plan. The plan shall also include a process to periodically adjust the type, distribution, and priority of infrastructure projects in coming years to meet changing circumstances. 99091. It is the intent of the Legislature that the Master Plan for Infrastructure Financing and Development Commission provide a long-term plan and strategy to meet our state's infrastructure needs and a prioritized plan that meets those needs by doing all of the following: (a) Project population, social, and economic trends through 2050. (b) Utilizing the projections established pursuant to subdivision (a), identify the type and distribution of infrastructure needed to meet California's social, economic, and resource needs through 2050. (c) Incorporate the findings of ongoing state infrastructure planning and reporting requirements. (d) Using the assessment of type, distribution, and priority of infrastructure needed pursuant to subdivision (b), assess the state's capital needs for infrastructure projects through 2050, including opportunities to access private capital to augment or complement public financing. (e) Assess the availability of private and public funds, including the status and fiscal value of dedicating future revenues to specific construction and maintenance, to support jointly sponsored projects throughout the period from the present year to 2050. (f) Recommend a financing plan for the capital needs through the year 2050, with a priority plan for each five-year interval, including evaluation and recommendations of various financing methods that are feasible and may be of benefit to state and local government as well as private entities partnering with the state to implement the strategy. 99092. The Master Plan for Infrastructure Financing and Development Commission is hereby created in state government. For purposes of this title, "commission" means the Master Plan for Infrastructure Financing and Development Commission. CHAPTER 2. COMMISSION STRUCTURE AND STAFF F Article 1. Commission Structure F 99095. The commission shall consist of 11 members, to be selected Fas follows: (a) The Treasurer or his or her designee who has a public finance background. (b) Six members appointed by the Governor who have the following qualifications: (1) One private sector representative from organized labor. (2) One private sector representative from a statewide organization representing California businesses. (3) One member representing the public. (4) One member of the administration who is a director of a state agency or department. (5) One member with expertise and experience in the financing of large public works projects. (6) One member who is an economist with demonstrated accomplishment in understanding and interpreting the California economy. (c) Two members appointed by the Speaker of the Assembly who have the following qualifications: (1) One member with expertise in transportation. (2) One member with expertise in natural resources and conservation. (d) Two members appointed by the Senate Committee on Rules who have the following qualifications: (1) One member with expertise in education infrastructure planning. (2) One member with experience in housing, urban planning, or financing. 99096. (a) The Governor shall appoint the chair of the commission among those members appointed pursuant to Section 99095. The chair of the commission shall devote his or her full-time attention to the responsibilities of the position during the term of the commission's existence. Salary for the chair shall be ____. (b) The Treasurer or his or her designee shall be the vice chair of the commission. (c) Appointed commission members shall serve at the pleasure of their appointing powers. 99097. (a) The commission may adopt bylaws for the regulation of its affairs and the conduct of its business. (b) The commission shall meet on the call of the chairperson or at the request of a majority of the members. A majority of all members of the commission constitutes a quorum for the transaction of business. All members shall have a vote. (c) The commission is subject to the provisions of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2) and the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)). (d) The commission may delegate to staff the authority to enter into contracts for services on its behalf, including interagency agreements, subject to relevant state law. 99098. Funding for the operating costs of the commission shall be Favailable upon appropriation by the Legislature. 99099. Except as otherwise provided in this title, members of the commission shall not receive a salary, and shall be entitled to a per diem allowance of fifty dollars ($50) for each day's attendance at a meeting of the commission, not to exceed three hundred dollars ($300) in any month, and reimbursement for expenses incurred in the performance of their duties under this chapter, including travel and other necessary expenses. Article 2. Commission Staff F 99100. The chair of the commission, with the concurrence of the commission, shall appoint an executive director, who shall be exempt from civil service. Salary for the executive director shall be ____. 99101. Commission staff may be loaned from relevant agencies, and the executive director shall examine ways to provide for loan of staff from state and local government and private nonprofit organizations who have relevant expertise through partnerships, subject to approval and direction by the commission and the chair. Article 3. Commission Duties F 99110. (a) The chair of the commission shall appoint the members on the task force committees described in Article 4 (commencing with Section 99120), which shall be composed of both members and nonmembers of the commission. Commission members may chair at least one task force committee in which they have expertise. (b) (1) The commission shall submit its final report to the Governor and Legislature no later than December 1, 2013, and shall dissolve 30 days after issuance of the final report. To the extent necessary, the commission shall recommend a method to track the state' s infrastructure progress and to reassess the master plan periodically. (2) A report to be submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795. (c) The final report shall contain a plan identifying the types, distribution, and priority for developing infrastructure projects needed to meet California's social, economic, and resource needs through 2050, and a measurable process to implement the plan. The plan shall also include a process to periodically adjust the type, distribution, and priority of infrastructure projects in coming years Fto meet changing circumstances. (d) When developing its recommendations, the commission shall utilize existing state and local infrastructure reports that reflect current or future infrastructure needs, including, but not limited to Fthe following: (1) The Governor's five-year infrastructure plan, as described in Article 2 (commencing with Section 13100) of Chapter 2 of Part 3 of Division 3 of Title 2. (2) The State Environmental Goals and Policy Report, as described in Article 5 (commencing with Section 65041) of Chapter 1.5 of Division 1 of Title 7. (3) The California Transportation Plan, as described in Chapter 2.3 (commencing with Section 65070) of Division 1 of Title 7. (4) Sustainable communities strategies, as described in Chapter 2.5 (commencing with Section 65080) of Division 1 of Title 7. (5) Greenhouse gas emissions reduction planning, as described in Part 4 (commencing with Section 38560) of Division 25.5 of the Health Fand Safety Code. (6) The California Water Plan, as described in Chapter 1 (commencing with Section 10004) of Part 1.5 of Division 6 of the Water Code. (e) The commission shall have authority to call on experts to assist them or the task force committees in developing the master plan. (f) All commission products shall incorporate opportunity for public comment and participation. (g) The commission shall establish a timeline for submission of periodic reports on their findings to the Governor and Legislature prior to issuance of the final report. Article 4. Commission Task Force Committees F 99120. (a) The commission shall establish working task force committees that will assess, inventory, and report on the state's long-term needs and financing alternatives. The task force committees Fshall include, but not limited to, the following: (1) Planning and financing. (2) Transportation. (3) Housing. (4) Natural resources and conservation. (5) Education. (b) Each committee shall include the following: (1) A chair of the task force committee, who may be a commission member with expertise in the committee's particular study area. (2) Appropriate experts on the committee's particular study area, who also have background experience in the following: (A) Public finance. (B) Working knowledge of local government. (C) Working knowledge of state government. (3) Representatives from the following communities: (A) Labor. (B) Business. (C) Environmental. (D) Building industry. (E) Consumer organization. (F) Taxpayer organization. (4) Additional experts, or experienced people who are knowledgeable about the committee's particular study area, as deemed necessary by the chair, in consultation with the commission. 99121. (a) The chair of each task force committee, with the concurrence of the commission, shall develop a work plan, assign responsibilities and deadlines for performance, and shall convene meetings of the task force committees. Task force committees shall meet as necessary to meet the goals of the work plan. (b) Task force committee members shall establish a method for reaching consensus on their findings and recommendations to the commission. The chair of each task force committee shall be responsible of presenting the committee's final recommendations to the commission. (c) At the direction of the chair of the commission, the task force committees shall provide analyses and commentary to the commission in a timely matter for all commission products. CHAPTER 3. REPEAL F 99122. This title shall remain in effect only until the commission is dissolved pursuant to subdivision (b) of Section 99110, and as of that date is repealed, unless a later enacted statute, that is enacted before the commission is dissolved, deletes or extends that date. 99123. (a) This title shall become operative only if the funds required to support the commission are appropriated, and made available for purposes of this title in the annual Budget Act, in accordance with Section 12 of Article IV of the California Constitution, or ensuing authorizing statutes. (b) The funds shall be appropriated from the California Debt and Investment Advisory Commission fund, established pursuant to Section 8856 of the Government Code. (c) The Legislature declares that the use of the California Debt and Investment Advisory Commission funds for purposes of this title are appropriate and consistent with paragraph (4) of subdivision (h) of Section 8855 of the Government Code.