CA AB310

Establishes the Infrastructure and Economic Development Bank Commission comprised of the Governor, Treasurer, and Controller (or their designees) to supervise the California Infrastructure and Economic Development Bank (I-Bank), replacing direct gubernatorial oversight.

Authorizes the Department of Business Oversight to charter the I-Bank as a depository institution, allowing it to accept deposits from the State Treasurer, state officers/employees, local agencies, and quasi-public nonprofits, with the Treasurer required to deposit 20% of state deposits within one year and 100% within five years of chartering.

Expands eligible securities for state and local investment to include I-Bank equity, loans, debt securities, and bond anticipation notes, with the Treasurer targeting 10% of average daily Pooled Money Investment Account balance into I-Bank obligations.

Requires the I-Bank to become a Federal Reserve System and Federal Home Loan Bank System member, prohibits high-risk activities, and mandates a proposed 5-year budget by January 1, 2021 detailing transition costs and depository institution operations.

Expands the Small Business Finance Center to provide loan guarantees (with at least 60% to target borrowers), lines of credit, securitization, and subordinated debt, and authorizes the I-Bank to purchase bond anticipation notes and directly lend to local agencies and tribal governments.