AB 3307

Bill Subjects

Abstract

The Bergeson-Peace Infrastructure and Economic Development Bank Act establishes the California Infrastructure and Economic Development Bank (I-Bank) . Among other things, the act authorizes I-Bank to make loans, issue bonds, and provide financial assistance to economic development or public development facilities. Under existing law, the Disaster Assistance Fund is continuously appropriated, without regard to fiscal year, for purposes of the California Disaster Assistance Act. That act provides that when funds are available for purposes of the act, the Governor may allocate the funds, in connection with relief provided, in affected areas during the period of federal disaster relief, to the Small Business Expansion Fund for use by the California Infrastructure and Economic Development Bank (I-Bank) , to provide guarantees for low-interest interim loans to be made by lending institutions for the purpose of providing interim financing to enable small businesses that have suffered actual physical damage or significant economic losses, as a result of the disaster or state of emergency for which funding is made available. This bill would enact the California Manufacturing Emergency Preparedness Act of 2020, which would authorize I-Bank to establish the California Manufacturing Disaster Loan and Loan Guarantee Program for the purpose of attracting, retaining, retooling, establishing, and expanding manufacturing and logistics capacity in the state, and would require I-Bank to establish guidelines for the implementation and oversight of the program. The bill would prohibit I-Bank from commencing the program until it adopts a resolution finding that there is sufficient funding in the account to cover the costs of implementing the program and that the I-Bank has sufficient direction from the Director of the Office of Emergency Services, as provided. The bill would require I-Bank to provide for the development and administration of the program, as specified, and would require program applicants to demonstrate satisfaction of specified requirements. The bill would also require each applicant to pay a nonrefundable application fee, as provided. The bill would create the Manufacturing Program Account within the California Infrastructure and Economic Development Bank Fund. The bill would authorize the Governor to allocate disaster relief funds, including funds in the Disaster Assistance Fund, to the Manufacturing Program Account for use by I-Bank, to cover the costs of administering the program and to provide direct loans or guarantees, or both, made by lending institutions, and to forgive those loans in appropriate circumstances, for the purpose of providing financing to enable the manufacturing and logistics sectors to support the emergency needs of Californians. The bill would provide that the moneys in the account be made available to I-Bank, upon a transfer of funds by the Director of Finance pursuant to an allocation by the Governor under the California Disaster Assistance Act, for specified purposes. The bill would authorize 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 authorize I-Bank to create subaccounts in the account for specified purposes. Because this bill would expand the purposes for which a continuously appropriated fund is expended and would deposit moneys and fees into a new, continuously appropriated account, the bill would make an appropriation. The bill would require I-Bank to annually report, commencing with January 1, 2022, to the Governor and the Legislature on program activity, as specified, in any fiscal year that the program receives funding or has active loans. The bill would further provide that the above described provisions will be implemented only to the extent that sufficient moneys are available to I-Bank to implement the California Manufacturing Disaster Loan and Loan Guarantee Program. The bill would permit these provisions to be used to respond to, and recover from, the conditions arising from the state of emergency declared by the Governor on March 4, 2020, related to the COVID-19 virus. The bill would prohibit I-Bank from entering into loans or loan guarantees pursuant to the bill's provisions on or after January 1, 2026. This bill would declare that it is to take effect immediately as an urgency statute.