AB 894 Summary

• Establishes the California Manufacturing Competitiveness Loan and Loan Guarantee Program administered by the California Industrial Development Financing Advisory Commission to attract, retain, and expand manufacturing facilities in the state.

• Creates the Manufacturing Program Account within the Industrial Development Fund, funded only by federal grants, private sources, loan repayments, and application fees—prohibits General Fund deposits.

• Requires the commission to adopt procedures for evaluating applicants, certifying participating financial institutions, and monitoring loans; applicants must demonstrate job creation or retention, wage compliance, and adherence to prevailing wage requirements.

• Mandates annual reporting beginning October 1, 2013 on program activities, including total funding, number of projects, jobs created and retained, and aggregate tax payments by assisted companies.

• Sunsets December 31, 2016, unless extended by subsequent legislation; program implementation contingent on sufficient account funds and commission expertise in credit risk assessment.