BILL NUMBER: AB 1081AMENDED BILL TEXT AMENDED IN SENATE JULY 9, 2013 AMENDED IN ASSEMBLY MAY 24, 2013 AMENDED IN ASSEMBLY APRIL 3, 2013 INTRODUCED BY Assembly Member Medina (Coauthors: Assembly Members Ian Calderon, Garcia,and V. Manuel Perezand V. Manuel Prez ) FEBRUARY 22, 2013 An act to amend Sections 13101andand 13102 of the Government Code, relating to economic development. LEGISLATIVE COUNSEL'S DIGEST AB 1081, as amended, Medina. Economic development: goods-movement-related infrastructure. Existing law requires the Governor, in conjunction with the Governor's Budget, to submit annually to the Legislature a proposed 5-year infrastructure plan containing specified information concerning infrastructure needed by state agencies, public schools, and public postsecondary educational institutions, and a proposal for funding the needed infrastructure. This bill would require the infrastructure plan to include additional information , including, but not limited to, information related to infrastructure identified by state and federal transportationauthorities andauthorities, recommendations for private sector financing, and strategies to address state goods movement needs, as specified. Vote: majority. Appropriation: no. 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) California is the ninth largest economy in the world with a state gross product of over $1.9 trillion in 2011. As a global economy, international trade-related commerce represents approximately one-quarter of California's economy. If California were a country, it would be the 11th largest exporter in the world. In 2011, California exported $159 billion in products through California ports to 220 foreign destinations, which accounted for over 11 percent of total United States exports in goods. (b) California's significance in the global marketplace results from a variety of factors, including its strategic west coast location, providing direct access to the growing markets in Asia; its diverse regional economies; its large, ethnically diverse population, representing both a ready workforce and significant consumer base; its access to a wide variety of venture and other private capital; its broad base of small- and medium-sized businesses; and its culture of innovation and entrepreneurship, particularly in the area of high technology. (c) California's largest industry sector is trade, transportation, and utilities, which encompasses everything from major retail outlets, to import-export businesses, to transportation and warehousing. Manufacturing, of course, is the cornerstone to the industry sector. California leads the nation in export-related jobs. The United States Department of Commerce estimates that for every one million dollars of increased trade activity, 11 new jobs are supported. Workers in trade-related jobs earn on average 13 percent to 28 percent higher wages than the national average. One-fifth of all manufacturing workers in California depend on exports for their jobs. (d) It is the state's goods-movement-related infrastructure network that allows raw materials and semimanufactured products to reach other manufacturers and assemblers and then move on to California ports for export to other nations or across the United States. California's competitiveness is dependent upon the efficient connectivity between differing modes of transportation, including highways, waterways, rail, and air. (e) Much of this infrastructure is, however, over 30 years old and requires maintenance as well as improvements and expansion to accommodate the state's population growth and evolving policy priorities. Inclusion of goods-movement-related infrastructure within the state's five-year plan would enhance the state's ability to develop a more efficient goods movement and logistical network, attract private capital, and support the retention and expansion of jobs. SEC. 2. Section 13101 of the Government Code is amended to read: 13101. As used in this article: (a) "Goods-movement-related infrastructure" means air, water, land, and sea port of entry facilities, roads, rail, and other facilities and infrastructure projects that move goods, energy, and information. (b) "Infrastructure" means real property, including land and improvements to the land, structures, and equipment integral to the operation of structures, easements, rights-of-way, and other forms of interest in property, roadways, and water conveyances. SEC. 3. Section 13102 of the Government Code is amended to read: 13102. In conjunction with the Governor's Budget submitted pursuant to Section 13337, the Governor shall submit annually a proposed five-year infrastructure plan to the Legislature. This plan shall cover a five-fiscal-year period beginning with the fiscal year that is the same as that covered by the Governor's Budget with which it is being submitted. The infrastructure plan shall contain the following information for the five years that it covers: (a) (1) Identification of new, rehabilitated, modernized, improved, or renovated infrastructure requested by state agencies. (2) Aggregate funding for transportation as identified in the five-year State Transportation Improvement Program Fund Estimate prepared pursuant to Sections 14524 and 14525. (3) Infrastructure needs for kindergarten and grades 1 to 12, inclusive, public schools necessary to accommodate increased enrollment, class size reduction, and school modernization. (4) The instructional and instructional support facilities needs for the University of California, the California State University, and the California Community Colleges. (5) Identification of new, rehabilitated, modernized, improved, or renovated infrastructure identified by state or federal agencies or regional transportation agencies, not otherwise identified in paragraph (2), that directly relates to enhancing the movement of goods. (6) Identification of state goods movement needs and strategies to address them, as outlined in the state freight plan. (7) Identification of goals, objectives, and recommendations, as outlined in the California International trade and investment strategy pursuant to Section 13996.55. (b) The estimated cost of providing the infrastructure identified in subdivision (a). (c) A proposal for funding the infrastructure identified in subdivision (a), that includes all of the following: (1) Criteria and priorities used to identify and select the infrastructure it does propose to fund, including criteria used to identify and select infrastructure that by January 1, 2005, shall be consistent with the state planning priorities specified pursuant to Section 65041.1 for infrastructure requested by state agencies pursuant to paragraph (1) of subdivision (a). (2) Sources of funding, including, but not limited to, General Fund, state special funds, federal funds, general obligation bonds, lease-revenue bonds, and installment purchases. (3) An evaluation of the impact of the new state debt on the state' s existing overall debt position if the plan proposes the issuance of new state debt. (4) (A) Recommended specific projects for funding or the recommended type and amount of infrastructure to be funded in order to meet programmatic objectives that shall be identified in the proposal.(5) For goods-movement-related infrastructure, the plan shall also include recommendations for private sector financing including, but not limited to, public pension fund investors, private sector investors, and commercial and industrial users that would benefit from the enhanced logistical network.(B) Any capital outlay or local assistance appropriations intended to fund infrastructure included in the Governor's Budget shall derive from, and be encompassed by, the funding proposal contained in the plan. (5) For goods-movement-related infrastructure, the plan shall also include recommendations for private sector financing, including, but not limited to, public pension fund investors, private sector investors, and commercial and industrial users that would benefit from the enhanced logistical network.(d) Eligible goods-movement-related infrastructure shall also be submitted to infrastructure financing exchanges, including, but not limited to, the West Coast Infrastructure Exchange.(d) For goods-movement-related infrastructure, the plan shall also include any projects that the Department of Transportation identifies, within the parameters of existing law, as eligible to submit to infrastructure financing exchanges, including, but not limited to, the West Coast Infrastructure Exchange.