Senate Bill 769, authored by Senator Anna Caballero (D-Merced), seeks to establish the Golden State Infrastructure Corporation within the State Treasurer’s Office to offer flexible financing solutions for infrastructure projects throughout California.
Specifically, SB 769 would establish a not-for-profit corporation for the purpose of financing infrastructure projects. The bill would require the corporation to be (1) governed by a board of directors and (2) require the business and affairs of the corporation to be managed by an executive director appointed by the State Treasurer. The corporation would have the authority to borrow money and issue bonds. It would be able to use those funds to extend financing to an infrastructure company, a governmental entity, or a combination of those entities to complete infrastructure projects.
Large infrastructure projects are a challenge throughout California, and the list of barriers to construction continues to grow. Complex permitting schemes and limited financing tools oftentimes force governments and businesses to push through suboptimal projects or delay projects. For government entities, there are options in Tax Increment Financing (TIF) such as Enhanced Infrastructure Financing Districts, Community Revitalization and Investment Authorities, and Infrastructure and Revitalization Financing Districts; however, these are few and far between in the state and cannot facilitate large projects without complex capital stacking. Many of the smallest jurisdictions in the state have not formed these districts, due to small population density and the complexity of the process.
RCRC supports SB 769 and believes that this bill will give Rural California an important new tool that is needed now more than ever, as our communities struggle to fight increased natural disasters, stay competitive as key recreation areas, and provide critical commodities to the nation. While TIF and state and federal grants are important tools, our limited fiscal resources require a better way to acquire financing that allows us a seat at the table.
SB 769 passed the Senate and is set to be heard by the Assembly Economic Development, Growth, and Household Impact Committee. RCRC’s most recent letter can be found here.
For additional information, contact RCRC Policy Advocate Eric Will or RCRC Senior Policy Advocate Tracy Rhine.