AB 894

Bill Subjects

Abstract

The California Industrial Development Financing Act authorizes cities, counties, cities and counties, and redevelopment agencies to establish industrial development authorities that are authorized to issue industrial development bonds, the proceeds of which may be used to fund capital projects of private enterprise under terms and conditions specified in the act. That act establishes the California Industrial Development Financing Advisory Commission and grants it various powers relating to industrial development bonds. This bill, the California Manufacturing Competitiveness Act of 2011, would authorize the commission to establish the California Manufacturing Competitiveness Loan and Loan Guarantee Program for the purpose of attracting, retaining, and expanding manufacturing facilities, and would require the commission to establish guidelines for the implementation and oversight of the program. The bill would prohibit the commission from commencing the program until the commission adopts a resolution finding that there is sufficient expertise, either directly employed by the commission or employed under a contract with the commission, to assess the credit risk of applicants for assistance under the program and the aggregate credit risk retained by the commission for the loans, loan guarantees, and lines of credit in the commission's program. The bill would require the commission to provide for the development and administration of the program application and evaluation process, and would require that applicants to the program demonstrate that they meet specified requirements. The bill would also require each applicant to pay a nonrefundable application fee. The bill would also create the Manufacturing Program Account within the Industrial Development Fund. The bill would prohibit General Fund moneys from being deposited in the account. The bill would authorize a state agency to contract with the commission, as specified, to contribute prescribed funds for deposit into the account. The bill would prohibit the commission from commencing the program until the commission adopts a resolution finding that there is sufficient money in the account to cover the costs of implementing the program. The bill would allow moneys in the account to be allocated to a lending institution or financial company that will act as trustee of the funds, with the approval of the Department of Finance. The bill would further require the above-described application fees to be deposited in the account to ensure that funds are available to the state for the sole purpose of administration of the program. The bill would require the commission, beginning October 1, 2013, and annually thereafter, to post on its Internet Web site or provide to the Legislature, as specified, a report on the program's activities and impact on the manufacturing industry, and on the state's economy generally. The bill would provide that the above-described provisions shall be implemented only to the extent that sufficient moneys are available to the commission to implement the California Manufacturing Competitiveness Loan and Loan Guarantee Program. The bill would provide that its provisions only remain in effect until January 1, 2017, and as of that date are repealed.