Bill Text: CA AB930 | 2023-2024 | Regular Session | Amended

Bill Title: Local government: infrastructure financing districts: Reinvestment in Infrastructure for a Sustainable and Equitable California (RISE) districts: housing development: restrictive covenants.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2024-08-15 - In committee: Held under submission. [AB930 Detail]

Download: California-2023-AB930-Amended.html

Amended  IN  Senate  June 13, 2024
Amended  IN  Senate  June 05, 2024
Amended  IN  Assembly  January 22, 2024
Amended  IN  Assembly  April 26, 2023
Amended  IN  Assembly  April 11, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 930

Introduced by Assembly Member Friedman

February 14, 2023

An act to amend Section 53993 of, to add Division 7 (commencing with Section 62400) to Title 6 of, and to add Division 2 (commencing with Section 64000) to Title 6.7 of, the Government Code, relating to local government.


LEGISLATIVE COUNSEL'S DIGEST


AB 930, as amended, Friedman. Local government: infrastructure financing districts: Reinvestment in Infrastructure for a Sustainable and Equitable California (RISE) districts: housing development: restrictive covenants.
Existing law authorizes certain local agencies to form a community revitalization authority within a community revitalization and investment area, as described, and authorizes an authority to, among other things, provide for low- and moderate-income housing and issue bonds, as provided. Existing law authorizes a community revitalization and investment plan to provide for the division of taxes within the plan area.
This bill would authorize the legislative bodies of 2 or more specified local governments to jointly form a Reinvestment in Infrastructure for a Sustainable and Equitable California district (RISE district) in accordance with specified procedures. The bill would require at least one of the local governments to be a city or county within the proposed RISE district boundaries. The bill would authorize a local government that lacks the authority to levy a property tax to join a RISE district, by resolution, as specified. The bill would prohibit a RISE district from including territory within the jurisdiction of a participating local government unless the city or county where the territory is located is also a participating local government. The bill would require the Office of Planning and Research (OPR) to develop guidelines for the formation of RISE districts no later than November 30, 2026. The bill would provide for the establishment of a governing board of a RISE district with representatives of each participating local government.
After the formation of a RISE district, the bill would require that district’s governing board to prepare, or cause to be prepared, and adopt a RISE development plan that includes a date on which the RISE district will cease to exist, not to be more than 45 years from the date on which the issuance of bonds is approved, as specified. The bill would also require that the RISE development plan include an identification of any intended source of revenue for financing a project or projects within the boundaries of the district and an identification of any tools or authority needed to implement the RISE development plan, as provided. The bill would require the guidelines developed by OPR to require a RISE development plan to provide that at least 50% of the total funding received by the district be spent on infill supportive infrastructure, as specified, and to provide that at least 30% of the total funds received by the district be spent on residential units created within the district that are restricted to persons and families of low or moderate income, as specified. The bill would require all projects that receive funding from a RISE district to be located within 1/2 mile of an existing or planned major transit stop, have at least 75% of the site of the development to adjoin parcels that are developed with urban uses, or qualify as a transit project. The bill would require the RISE district to consider adoption of the RISE development plan at 3 public hearings that take place at least 30 days apart and to provide specified notice to land owners within the RISE district, as specified. The bill would require a RISE district to review the RISE development plan at least annually and make any amendments that are necessary and appropriate and would require the preparation of an annual independent financial audit. The bill would require a RISE district, every 15 years, at the public hearing held for adopting the annual report, to consider whether the requirements of these provisions continue to be met and whether the property owners and residents within the plan area wish to propose amendments to the RISE development plan, as specified.
This bill would authorize a RISE district to utilize various sources of revenue for district purposes, including the division of property tax revenues, local sales and use taxes, and transient occupancy taxes.
This bill would also, upon appropriation by the Legislature, require the Infrastructure and Economic Development Bank (IBank) to establish the RISE Revolving Loan Fund. The bill would provide that the purpose of the fund is to provide RISE districts with initial startup funding for projects contained within the RISE district’s adopted RISE development plan. The bill would require IBank to establish the RISE District Revolving Loan Program and would require IBank to award loans to RISE districts in an amount deemed necessary to fund the initial projects of the RISE district, as provided in the district’s RISE development plan, as specified.
This bill would require a RISE district funded project to comply with specified wage and labor standards. The bill would require a development proponent to certify to the RISE district that certain wage and labor standards will be met, including a requirement that all construction workers be paid at least the general prevailing rate of wages, as specified. The bill would require the Labor Commissioner to enforce the obligation to pay prevailing wages. The bill would specify that these labor standards do not apply to a project that is privately financed in its entirety. By expanding the crime of perjury, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 53993 of the Government Code is amended to read:

53993.
 (a) Notwithstanding any other law, except as provided in subdivision (b), for the purpose of any law authorizing the division of taxes levied upon taxable property, including, but not limited to, Sections 53369.30, 53396, 53398.30, 53398.75, 62005, and 62420, no revenues derived from the imposition of a property tax rate approved by the voters pursuant to subdivision (b) of Section 1 of Article XIII A of the California Constitution and levied in addition to the property tax rate limited by subdivision (a) of Section 1 of Article XIII A of the California Constitution shall be divided.
(b) Subdivision (a) shall not apply to the allocation of property taxes pursuant to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code.

SEC. 2.

 Division 7 (commencing with Section 62400) is added to Title 6 of the Government Code, to read:

DIVISION 7. Reinvestment in Infrastructure for a Sustainable and Equitable California Districts

CHAPTER  1. General Provisions

62400.
 For purposes of this division:
(a) “Affected taxing entity” means any governmental taxing agency which levied or had levied on its behalf a property tax on all or a portion of the property located in the proposed RISE district in the fiscal year prior to the designation of the RISE district, but not including any county office of education, school district, or community college district. An “affected taxing entity” may include a special district if the special district is providing any portion of the funding included in the RISE development plan adopted pursuant to Section 62410. For the purposes of this section, “special district” means an agency of the state formed for the performance of governmental or proprietary functions within limited geographic boundaries, and shall not include a school district or community college district.
(b) “Governing board” means the governing board of an agency established pursuant to Section 62407.
(c) “Legislative body” means the legislative body of a participating local government.
(d) “Local government” includes, but is not limited to, a city, county, special district, affordable housing finance agency, or transit agency.
(e) “Location-efficient area” means an area that has access to transit and uses compact design to facilitate pedestrian access to transit, thereby linking people to a range of services, amenities, and employment centers. Location-efficient areas include a mix of uses, offer comfortable and convenient transit service to increase the number of viable transportation options available to residents to commute to work, school, or other destinations, and are consistent with sustainable communities strategies to reduce vehicle miles traveled.
(f) “Office” means the Office of Planning and Research.
(g) “Participating local government” means a local government that proposes or agrees to jointly form a RISE district in accordance with this chapter or that is added as a participating local government pursuant to subdivision (d) of Section 62406.
(h) “Persons and families of low or moderate income” means the same as defined in Section 50093 of the Health and Safety Code.
(i) “Reinvestment in Infrastructure for a Sustainable and Equitable California district” or “RISE district” means a regional, joint governance district formed pursuant to this chapter by two or more local governments.
(j) “Sustainable and equitable development” means a development project that reduces disparities in urban, suburban, and rural communities and reduces vehicle miles traveled by supporting residents, specifically those that have been historically underserved and neglected, by providing for a range of affordable housing and transportation options, efficient access to a variety of jobs and services, and clean air quality. Sustainable and equitable developments are diverse and incorporate community input, values of inclusion, equal access to housing, opportunity, and diversity in our communities ensuring that all people, regardless of race, ethnicity, family status, or disability, have a range of choices for where to live now and in the future.
(k) “Sustainable communities strategy” means a sustainable communities strategy adopted pursuant to Section 65080.

62401.
 No later than November 30, 2026, the office shall develop guidelines for the formation of RISE districts. The guidelines shall comply with the following requirements:
(a) The guidelines shall be consistent with the requirements of this division.
(b) The guidelines shall prioritize the production of new market rate and affordable housing targeted to a range of income levels and housing types. The guidelines shall encourage sustainable and equitable development in location-efficient areas adjacent to public transit investments, including passenger rail and frequent bus service, in order to refocus growth toward city and community centers while reducing greenhouse gas emissions, per capita vehicle miles traveled, and reinforcing community resilience.
(c) The guidelines shall require a RISE development plan to comply with all of the following:
(1) (A) The RISE development plan shall require that at least 50 percent of the total funds received by the district be spent on infill supportive infrastructure.
(B) For purposes of this paragraph:
(i) “Supportive infrastructure” includes utilities upgrades, environmental cleanup, pedestrian and bicycle improvements, transit facilities and investments, and housing infrastructure that is an integral part of, or necessary to facilitate, new infill housing or mixed-use development within a RISE district.
(ii) “Transit facilities” includes, but is not limited to, bus service, ferries, urban, commuter, and intercity rail, and electric vehicle charging network improvements.
(2) (A) The RISE development plan shall require that at least 30 percent of the total funds received by the district shall be spent on residential units created within the district that are restricted to persons and families of low or moderate income with an affordable sales price or an affordable rent, as defined in Section 50052.5 or 50053 of the Health and Safety Code, for 55 years for units that are rented, or 45 years for owner-occupied units, unless a local ordinance or the terms of a federal, state, or local grant, tax credit, or other project financing requires, as a condition of the development of residential units, that the development include a certain percentage of units that are affordable to, and occupied by, low-income, lower income, very low income, or extremely low income households for a term that exceeds 55 years for rental housing units and 45 years for owner-occupied units.
(B) RISE districts shall provide financing for affordable housing and provide annual reporting to the office to demonstrate progress to meet the affordable housing requirements in subparagraph (A).
(C) A RISE district may finance mixed-income housing developments, but may finance only those units that constitute affordable housing.
(3) The RISE development plan shall require that any remaining percentage of funding not otherwise allocated pursuant to the guidelines established in the section be used for any lawful purpose that supports sustainable and equitable development.
(4) The RISE development plan shall give first priority for occupancy of housing funded through the RISE development plan pursuant to the following:
(A) First, to households residing or located within two miles of the district. housing development project funded through the RISE development plan.
(B) Second, to households displaced from the district through no fault of their own.
(C) Third, to households with a member or members employed within two miles of the district. housing development project funded through the RISE development plan.
(D) Fourth, to households with an extended family member living within two miles of the district. housing development project funded through the RISE development plan.
(5) The RISE development plan shall require all projects receiving funds from the district comply with at least one of the following:
(A) The development is located within one-half mile of an existing or planned major transit stop, as defined in Section 21155 of the Public Resources Code.
(B) At least 75 percent of the perimeter of the site of the development adjoins parcels that are developed with urban uses. For the purposes of this section, parcels that are only separated by a street or highway shall be considered to be adjoined.
(C) The development is a transit project. For purposes of this subparagraph, “transit project” includes, but is not limited to, bus service, ferries, or urban, commuter, or intercity rail.

62402.
 (a) In addition to the powers granted to an enhanced infrastructure financing district pursuant to Chapter 2.99 (commencing with Section 53398.50) of Part 1 of Division 2 of Title 5, a RISE district has the power to do all of the following within the territorial jurisdiction of the district:

(a)

(1) Fund the acquisition and construction of housing, infill supportive infrastructure, and any other project otherwise permitted under a RISE development plan with an estimated useful life of 15 years or longer.

(b)

(2) The planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of the property described in subdivision (a).

(c)

(3) Establish and impose any of the revenue generating activities eligible to be included in a RISE development plan pursuant to Section 62410.

(d)

(4) Apply for and receive grants from federal and state agencies.

(e)

(5) Solicit and accept gifts, fees, grants, and allocations from public and private entities.

(f)

(6) Incur general obligation bonded indebtedness for the acquisition or improvement of real property or for funding or refunding of any outstanding indebtedness, subject to any applicable constitutional requirements.

(g)

(7) Receive and manage a dedicated revenue source.

(h)

(8) Deposit or invest moneys of the district in banks or financial institutions in the state in accordance with state law.

(i)

(9) Sue and be sued, except as otherwise provided by law, in all actions and proceedings, in all courts and tribunals of competent jurisdiction.

(j)

(10) Engage counsel and other professional services.

(k)

(11) Enter into and perform all necessary contracts.

(l)

(12) Enter into joint powers agreements pursuant to the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1).

(m)

(13) Hire staff, define their qualifications and duties, and provide a schedule of compensation for the performance of their duties.

(n)

(14) Use interim or temporary staff provided by local agencies that are members of the district. A person who performs duties as interim or temporary staff shall not be considered an employee of the district.
(b) The district shall require, by recorded covenants or restrictions, that housing units built pursuant to this division shall remain available at affordable housing costs to, and occupied by, persons and families of very low, low, or moderate income for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units.

62402.1.
 Notwithstanding any other provision of this title, a district shall not do any of the following:
(a) Finance services of any kind.
(b) Use the proceeds of bonds issued to finance the costs of maintenance or ongoing operations of any kind, except for capitalized reserves for ongoing rent subsidies.
(c) Acquire property by eminent domain.

62402.2.
 A RISE district shall, when complying with the requirements of subparagraph (A) of paragraph (3) of subdivision (g) of Section 714.6 of the Civil Code, include in the notice prescribed therein the housing purposes that are in the RISE development plan adopted pursuant to Section 62410 for the intended structures to be built on the property.

62403.
 (a) It is the intent of the Legislature that the creation of RISE districts should not ordinarily lead to the removal of existing dwelling units. If, however, any dwelling units are proposed to be removed or destroyed in the course of public works construction within the area of the district or private development within the area of the district that is subject to a written agreement with the district, or that is financed in whole or in part by the district, then the RISE development plan adopted pursuant to Section 62410 shall contain provisions to do all of the following:
(1) If the dwelling units to be removed or destroyed are or were inhabited by persons or families of very low, low, or moderate income at any time within the five years prior to establishment of the RISE district, the district shall cause or require the construction or rehabilitation of an equal number of replacement dwelling units, within one-half mile of the location of the units to be removed or destroyed, that have an equal or greater number of bedrooms as those removed or destroyed units within two years of the removal or destruction of the dwelling units. The replacement dwelling units shall be available for rent or sale to persons or families of very low, low, or moderate income at affordable rent or at affordable housing cost to persons in the same or a lower income category as the persons displaced from, or who last occupied, the removed or destroyed dwelling units.
(2) If the dwelling units to be removed or destroyed were not inhabited by persons or families of very low, low, or moderate income within the period of time specified in paragraph (1), the district shall cause or require the construction or rehabilitation, within one-half mile of the location of the units to be removed or destroyed, of at least one unit, but not less than 25 percent of the total dwelling units removed or destroyed, within two years of the removal or destruction of the dwelling units. The units constructed or rehabilitated pursuant to this paragraph shall be of equivalent size and type to the units to be removed or destroyed. An equal percentage of the replacement dwelling units constructed or rehabilitated pursuant to this paragraph shall be available for rent or sale at affordable rent or affordable housing cost to extremely low income households and very low income households.
(3) Comply with all relocation assistance requirements of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 for persons displaced from dwelling units by any public works construction within the area of the district or private development within the area of the district that is subject to a written agreement with the district or that is financed in whole or in part by the district as a result of the RISE development plan adopted pursuant to Chapter 3 (commencing with Section 62410). The displacement of any persons from a dwelling unit as a result of the plan shall be deemed to be the result of public action.
(4) Ensure that the removal or destruction of any dwelling units occupied by persons or families of very low, low, or moderate income does not occur unless and until there has been full compliance with the relocation assistance requirements of this section and Chapter 16 (commencing with Section 7260) of Division 7 of Title 1.
(5) (A) The district shall require, by recorded covenants or restrictions, that all dwelling units constructed or rehabilitated pursuant to this section remain available at affordable rent or housing cost to, and occupied by, persons and families of the same income categories as required by paragraph (1) or (2), as applicable, for 55 years for units that are rented, unless a local ordinance or the terms of a federal, state, or local grant, tax credit, or other project financing requires, as a condition of the development of residential units, that the development include a certain percentage of units that are affordable to, and occupied by, low-income, lower income, very low income, or extremely low income households for a term that exceeds 55 years for rental housing units, and 45 years for owner-occupied units.
(B) The district may permit sales of owner-occupied units prior to the expiration of the 45-year period for a price in excess of that otherwise permitted under this paragraph pursuant to an adopted program that protects the district’s investment of moneys in the unit or units, including, but not limited to, an equity sharing program, not in conflict with another public funding source or law, which establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds based on the length of occupancy. For purposes of this subparagraph, the terms of the equity sharing program shall be consistent with the provisions of paragraph (2) of subdivision (c) of Section 65915, provided, however, that the program shall require any amounts recaptured by the district to be used within five years for any of the affordable housing purposes described in Section 34176.1 of the Health and Safety Code.
(b) For purposes of this section:
(1) “Affordable housing cost” means the same as defined in Section 50052.5 of the Health and Safety Code.
(2) “Affordable rent” means the same as defined in Section 50053 of the Health and Safety Code
(3) “Extremely low income household” means the same as defined in Section 50106 of the Health and Safety Code.
(4) “Persons or families of very low, low, or moderate income” means the same as defined in Section 50093 of the Health and Safety Code.
(5) “Very low income household” means the same as defined in Section 50105 of the Health and Safety Code.

62404.
 A city or county that created a redevelopment agency, as defined in Section 33003 of the Health and Safety Code, shall neither initiate the creation of a RISE district, nor participate in the governance or financing of a RISE district, until all of the following has occurred:
(a) The successor agency for the former redevelopment agency created by the city or county has received a finding of completion, as specified in Section 34179.7 of the Health and Safety Code.
(b) The city or county certifies to the Department of Finance and to the RISE district that no former redevelopment agency assets that are the subject of litigation involving the state, if the city or county, the successor agency, or the designated local authority are a named plaintiff, have been or will be used to benefit any efforts of a RISE district formed under this title, unless the litigation and all possible appeals have been resolved in a court of law. The city or county shall provide this certification to the Department of Finance within 10 days of its legislative body’s action to participate in a RISE district pursuant to Section 62406, or of its legislative body’s action to form a RISE district pursuant to Section 62405.
(c) The office of the Controller has completed its review as specified in Section 34167.5 of the Health and Safety Code.
(d) The successor agency and the entity that created the former redevelopment agency have complied with all of the office of the Controller’s findings and orders stemming from the reviews as specified in subdivision (c).

CHAPTER  2. RISE District Formation and Governing Board

62405.
 (a) After the office develops guidelines pursuant to Section 62401, the legislative bodies of two or more local governments that levy, or have authority to levy, a property tax may jointly form a RISE district pursuant to this division for the purpose of planning, financing, and facilitating supportive infrastructure to spur equitable development comprised of affordable housing and economic development in location-efficient areas that meet goals set out in an adopted sustainable communities strategy for sustainable, walkable development that reduces carbon emissions and vehicle miles traveled.
(b) At least one of the two or more local governments shall be a city or county within the proposed RISE district boundaries.

(b)

(c) A local government that lacks the authority to levy a property tax may join a RISE district after its formation is initiated pursuant to subdivision (a).

62406.
 (a) The formation of a RISE district shall be by enactment of an ordinance or resolution of each participating local government that shall each be substantially similar.
(b) The ordinance or resolution of a participating local government shall include, at minimum, all of the following provisions:
(1) A statement of the purpose for which the RISE district is proposed, including any specific project that the participating local governments propose to plan, finance, or facilitate.
(2) Provision for the method by which the purpose of the RISE district will be accomplished.
(3) A description of the boundaries of the RISE district. This may be accomplished by reference to a map on file in the office of the clerk of the city or in the office of the recorder of the county, as applicable.
(4) Establishment of a governing board in accordance with Section 62407.
(c) (1) The boundaries of a RISE district may include all or any portion of the territory within the jurisdiction of a participating local government.
(2) A RISE district may include areas which are not contiguous.
(3) Notwithstanding paragraph (1), a RISE district shall not include territory within the jurisdiction of a participating local government unless the city or county in which the territory is located is also a participating local government.
(d) After the formation of a RISE district, a local government may be added as a participating local government by enactment of an ordinance or resolution by a majority of the current participating local governments and subsequent enactment of an ordinance or resolution by the new participating local government that complies with the requirements of this section.

62407.
 (a) A RISE district shall have a membership consisting of one of the following, as appropriate:
(1) If a district has two or more participating local governments, the district’s governing board membership shall consist of a majority of members from the legislative bodies of the participating local governments, and a minimum of two members of the public chosen by the legislative bodies of the participating local governments. public. A legislative body of a participating local government may appoint one of its members to be an alternate member of the legislative body who may serve and vote in place of a member who is absent or disqualifies themselves from participating in a meeting of the district. The appointment of the public members shall be subject to the provisions of Sections 54970 and 54972.
(2) If a district has more than three participating affected taxing entities, local governments, the legislative bodies of the taxing entities local governments may, upon agreement by all participating affected taxing entities, local governments, appoint only one member and one alternate member of their respective legislative bodies to the RISE district, and a minimum of two members of the public chosen by the legislative bodies of the participating entities. The appointment of the public members shall be subject to the provisions of Sections 54970 and 54972. public.
(3) For purposes of this subdivision, “legislative body” may include a directly elected mayor of a charter city who is not a member of the city’s legislative body under the city’s adopted charter.
(4) The public members shall be selected by a majority vote of the other members of the district’s governing board. The appointment of the public members shall be subject to the provisions of Sections 54970 and 54972.
(b) The legislative body shall ensure the RISE district is established at the same time that it adopts an ordinance or resolution pursuant to Section 62406.
(c) Members of the district established pursuant to this division shall not receive compensation, but may receive reimbursement for actual and necessary expenses incurred in the performance of official duties pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5.
(d) Members of the district are subject to Article 2.4 (commencing with Section 53234) of Chapter 2 of Part 1 of Division 2 of Title 5.
(e) The RISE district created pursuant to this division shall be a local public agency subject to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1), and the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)).
(f) Notwithstanding any other law, any member of the legislative body of a participating local government who serves as a member of the district pursuant to this section may also serve as a member of the governing body of an agency or entity formed pursuant to an agreement for the joint exercise of power that the participating local government has entered into in accordance with the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1).

62408.
 An existing or proposed enhanced infrastructure financing district, community revitalization investment area, infrastructure financing district, climate resilience district, or other tax increment district that otherwise meets the criteria of this division may form or combine incentives and expand into a RISE district. district if each participating local government or affected taxing entity of that district adopts a resolution or enacts an ordinance to establish their intent to expand into a RISE district.

62409.
 The act of creating or joining a RISE district pursuant to this division shall be exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).

CHAPTER  3. RISE Development Plan

62410.
 (a) After the RISE district is formed, the governing board shall prepare, or cause to be prepared, and adopt a RISE development plan, in accordance with this article, division, in order to meet both of the following objectives:
(1) Ensure that the RISE district is consistent with priority development areas in an adopted sustainable communities strategy, any applicable planning guidelines, and other requirements under state law, including those guidelines developed by the office pursuant to Section 62401. The applicable metropolitan planning organization shall make a finding that the RISE district complies with this paragraph. If the RISE district boundaries include more than one metropolitan planning organization, each metropolitan planning organization shall make that finding.
(2) Planning for and financing supportive infrastructure, affordable housing, and equitable development near existing or planned transit in location-efficient areas in order to refocus growth toward infill areas while reducing greenhouse gas emissions and reinforcing community resilience.
(b) The RISE development plan shall include all of the following:
(1) Identification of any intended source of revenue for financing a project or projects within the boundaries of the RISE district. Permissible sources of revenue may include, but are not limited to, the following:
(A) Investments of state resources, as requested by the district.
(B) The division of property tax revenues, excluding revenues dedicated to paying off the obligations of former redevelopment agencies or other obligations, and revenues dedicated to school districts, in accordance with Section 62420.
(C) Local sales and use taxes in accordance with Section 62421.
(D) Transient occupancy taxes imposed by a city or county in accordance with Chapter 1 (commencing with Section 7280) of Part 1.7 of Division 2 of the Revenue and Taxation Code.
(E) Tax increment bonds described in Article 5 (commencing with Section 62425).
(F) Any other revenues that may be lawfully used.
(2) Identification of any tools or authority needed to implement the RISE development plan, including, but not limited to, the authority to purchase, bank, and assemble parcels of real property.
(3) A financing section that contains all of the following information:
(A) A projection of the amount of tax revenues expected to be received by the RISE district in each year during which the RISE district will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year.
(B) A plan for financing the housing or infill supportive infrastructure projects to be assisted by the RISE district, including a detailed description of any intention to incur debt.
(C) A statement of the total number of dollars of taxes that may be allocated to the RISE district pursuant to the plan.
(D) An analysis of the costs to the local government of providing facilities and services to the area of the RISE district while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the local government as a result of expected development in the area of the RISE district.
(E) An analysis of the projected fiscal impact of the RISE district and the associated development upon each affected taxing entity.
(4) A date on which the RISE district will cease to exist, by which time all tax allocation to the district will end. The date shall not be more than 45 years from the date on which the issuance of bonds is approved pursuant to Section 62425, or the issuance of a loan is approved by the governing board of a local agency pursuant to Section 62430.

62410.1.
 (a) (1) The RISE development plan shall be sent to each owner of land within the RISE district and to each affected taxing entity together with any report required by the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that pertains to the proposed RISE district projects, and shall be made available for public inspection. The report shall also be sent to each participating local government.
(2) As an alternative to mailing documents pursuant to paragraph (1), and providing the additional 10-day mailed notices, pursuant to subdivision (i) of Section 62410.2, for both the initial meeting required by subdivision (b) of Section 62410.2, and for the first scheduled public hearing on the plan, the RISE district may mail a notice to each landowner, resident, and affected taxing entity at least 40 days prior to the first scheduled public hearing on the RISE development plan, held pursuant to paragraph (2) of subdivision (a) of Section 62410.2. This notice shall include all of the following:
(A) A summary of the RISE development plan including all required information listed in paragraph (1) of subdivision (c) of Section 62410.2.
(B) The internet website where the applicable documents, including those described in paragraph (1), will be made available for public viewing or inspection.
(C) A designated contact person to receive and process any requests for a mailed packet of all materials.
(D) The location, date, and time of both the meeting to be held in accordance with subdivision (b) of Section 62410.2 and the first scheduled public hearing in accordance with paragraph (2) of subdivision (a) of Section 62410.2.
(3) In addition to a notice provided by paragraph (2), the RISE district shall provide notices for the second and third public hearings on the plan, as described in paragraph (3) of subdivision (a) of Section 62410.2, in accordance with subdivision (i) of Section 62410.2.
(b) The RISE district shall consult with each affected taxing entity, and, at the request of any affected taxing entity, shall meet with representatives of an affected taxing entity. Any affected taxing entity may suggest revisions to the plan.

62410.2.
 (a) (1) The RISE district shall consider adoption of the RISE development plan at three public hearings that shall take place at least 30 days apart. In addition to the notice given pursuant to Section 62410.1, the RISE district shall give notice of each public hearing in accordance with subdivision (i).
(2) At the first public hearing, the RISE district shall hear all written and oral comments, but take no action.
(3) At the second public hearing, the RISE district shall consider any additional written and oral comments and take action to modify or reject the RISE development plan. If the RISE development plan is not rejected at the second public hearing, then the RISE district shall conduct a protest proceeding at the third public hearing to consider whether the landowners and residents within the RISE development plan area wish to present oral or written protests against the adoption of the RISE development plan.
(b) The draft RISE development plan shall be made available to the public and to each landowner within the area on a designated internet website and at a meeting held at least 30 days before the first public hearing. The purposes of the meeting shall be to allow the staff of the RISE district to present the draft RISE development plan, answer questions about the plan, and consider comments about the plan.
(c) (1) The RISE district shall give notice of the meeting required by subdivision (b) and the public hearings required by subdivision (a) in accordance with subdivision (i). The notice shall do all of the following, as applicable:
(A) Describe specifically the boundaries of the proposed area.
(B) Describe the purpose of the RISE development plan.
(C) State the day, hour, and place when and where any and all persons having any comments on the proposed RISE development plan may appear to provide written or oral comments to the RISE district.
(D) Notice of the second public hearing shall include a summary of the changes made to the RISE development plan as a result of the oral and written testimony received at or before the public hearing and shall identify a location accessible to the public where the RISE development plan proposed to be presented at the second public hearing can be reviewed.
(E) Notice of the third public hearing to consider any written or oral protests shall contain a copy of the RISE development plan, and shall inform the landowner and resident of their right to submit an oral or written protest before the close of the public hearing. The protest may state that the landowner or resident objects to the RISE district taking action to implement the RISE development plan.
(2) At the third public hearing, the RISE district shall consider all written and oral protests received before the close of the public hearing along with the recommendations, if any, of affected taxing entities, participating local governments, and shall terminate the proceedings or adopt the RISE development plan subject to confirmation by the voters at an election called for that purpose. The RISE district shall terminate the proceedings if there is a majority protest. A majority protest exists if protests have been filed representing over 50 percent of the combined number of landowners and residents in the area who are at least 18 years of age. An election shall be called if between 25 percent and 50 percent of the combined number of landowners and residents in the area who are at least 18 years of age file a protest.
(d) An election required pursuant to paragraph (2) of subdivision (c) shall be held within 90 days of the public hearing and may be held by mail-in ballot. The RISE district shall adopt, at a duly noticed public hearing, procedures for this election.
(e) If a majority of the landowners and residents vote against the RISE development plan, then the RISE district shall not take any further action to implement the proposed RISE development plan. The RISE district shall not propose a new or revised RISE development plan to the affected landowners and residents for at least one year following the date of an election in which the RISE development plan was rejected.
(f) At the hour set in the notices required by subdivision (a), the RISE district shall consider all written and oral comments.
(g) If less than 25 percent of the combined number of landowners and residents in the area who are at least 18 years of age file a protest, the RISE district may adopt the RISE development plan at the conclusion of the third public hearing by resolution. The resolution adopting the RISE development plan shall be subject to referendum as prescribed by law.
(h) The RISE district shall consider and adopt an amendment or amendments to a RISE development plan in accordance with the provisions of this section.
(i) The RISE district shall post notice of each meeting or public hearing required by this section in an easily identifiable and accessible location on the RISE district’s internet website and shall mail a written notice of the meeting or public hearing to each landowner, each resident, and each taxing entity at least 10 days before the meeting or public hearing. A public finance authority may meet the mailed notice requirements of this subdivision for the meeting held pursuant to subdivision (b) and the first public hearing on the proposed RISE development plan if it has mailed a notice in compliance with paragraph (2) of subdivision (a) of Section 62410.1.
(1) Notice of the first public hearing shall also be published not less than once a week for four successive weeks before the first public hearing in a newspaper of general circulation published in the county in which the area lies. The notice shall state that the RISE district will be used to plan, finance, and facilitate supportive infrastructure, briefly describe any proposed projects or development, briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue, describe the boundaries of the RISE district, and state the day, hour, and place when and where any persons having any objections to the proposed RISE development plan, or the regularity of any of the prior proceedings, may appear before the RISE district and object to the adoption of the proposed plan by the RISE district.
(2) Notice of the second public hearing shall also be published not less than 10 days before the second public hearing in a newspaper of general circulation in the county in which the area lies. The notice shall state that the district will be used to plan, finance, and facilitate supportive infrastructure, briefly describe any proposed projects or development, briefly describe the proposed financial arrangements, describe the boundaries of the proposed RISE district, and state the day, hour, and place when and where any persons having any objections to the proposed RISE development plan, or the regularity of any of the prior proceedings, may appear before the RISE district and object to the adoption of the proposed plan by the RISE district.
(3) Notice of the third public hearing shall also be published not less than 10 days prior to the third public hearing in a newspaper of general circulation in the county in which the area lies. The notice shall state that the RISE district will be used to plan, finance, and facilitate supportive infrastructure, briefly describe any proposed projects or development, briefly describe the proposed financial arrangements, describe the boundaries of the proposed RISE district, and state the day, hour, and place when and where any persons having any objections to the proposed RISE development plan, or the regularity of any of the prior proceedings, may appear before the RISE district and object to the adoption of the proposed plan by the RISE district.

62410.3.
 (a) At the conclusion of the hearings pursuant to Section 62410.2, the RISE district may adopt a resolution proposing adoption of the RISE development plan, as modified, or it may adopt a resolution abandoning the proceedings. If the proceedings are abandoned, then the RISE district shall cease to exist by operation of this section with no further action required of the RISE district or the participating local governments and the participating local governments may not enact a resolution of intention to establish a RISE district that includes the same geographic area within one year of the date of the resolution abandoning the proceedings.
(b) The RISE development plan shall specify if the RISE district will be funded solely through the district’s share of tax increment, governmental or private loans, grants, bonds, assessments, fees, or some combination thereof. However, the RISE district shall not issue bonds or levy assessments or fees that may be included in the RISE development plan before one or more of the following occurs:
(1) The adoption of a resolution meeting the requirements of Section 62425 to issue bonds to finance the RISE development plan.
(2) Compliance with the procedures required in subdivision (e) of Section 62420, to levy assessments or fees to finance the RISE development plan.
(c) In addition, a RISE district may expend up to 10 percent of any accrued tax increment on planning and dissemination of information to the residents within the district’s boundaries about the RISE development plan and planned activities to be funded by the district.

62410.4.
 (a) (1)   The RISE district shall review the RISE development plan at least annually and make any amendments that are necessary and appropriate and shall require the preparation of an annual independent financial audit paid for from revenues of the RISE district.
(A) Amendments to an approved RISE development plan, including proposals to plan, finance, and facilitate supportive infrastructure and additional eligible projects, as specified in this division, may be approved by a majority vote of the governing board at a public hearing held following the provision of a 30-day mailed notice describing the proposed changes to all property owners, residents, and affected taxing entities. participating local governments.
(B) Amendments that propose any of the following shall be adopted in accordance with all notices and hearing requirements for the affected landowners and residents within the proposed additional territory applicable to an initial proposed RISE development plan:
(i) Addition of new territory or project areas to a plan.
(ii) Increase of the limit of the total number of dollars in local taxes allocated to the plan.
(iii) Approval of a project or development that was not proposed to be financed or assisted by the district in the approved plan.
(2) A RISE district shall adopt an annual report on or before June 30 of each year after holding a public hearing. Written copies of the draft report shall be made available to the public 30 days before the public hearing. The RISE district shall cause the draft report to be posted in an easily identifiable and accessible location on the RISE district’s internet website and shall mail a written notice of the availability of the draft report on the internet website to each owner of land and each resident within the area covered by the RISE development plan and to each participating local government. The notice shall be mailed by first-class mail, but may be addressed to “occupant.”
(3) The annual report shall contain all of the following:
(A) A description of the projects undertaken in the fiscal year, including any rehabilitation of structures, and a comparison of the progress expected to be made on those projects compared to the actual progress.
(B) A chart comparing the actual revenues and expenses, including administrative costs, of the RISE district to the budgeted revenues and expenses.
(C) The amount of tax increment revenues received.
(D) An assessment of the status regarding completion of the RISE district’s projects.
(E) The amount of revenues expended to assist private businesses.
(4) If the RISE district fails to provide the annual report required by paragraph (3), the RISE district shall not spend any funds received pursuant to a resolution adopted pursuant to this chapter until the RISE district has provided the report.
(b) (1) Every 15 years, at the public hearing held pursuant to paragraph (2) of subdivision (a) and after adopting the annual report, the RISE district shall consider whether the following:
(A) Whether the requirements of this division continue to be met.
(B) Whether the property owners and residents within the plan area wish to propose amendments to the RISE development plan. The RISE district may consider and adopt amendments to the plan at the conclusion of the public hearing. After
(2) After considering any amendments to the plan, the RISE district shall conduct a protest proceeding to consider whether the property owners or residents within the plan area wish to present oral or written protests against the RISE district undertaking new projects. Notice of this proceeding shall be included in the written notice of the hearing on the annual report and shall inform the property owner and resident of their right to submit proposed amendments to the plan, or an oral or written protest to prohibit new projects under the plan, before the close of the public hearing. The protest may state that the property owner or resident objects to the RISE district taking action to implement new projects under the plan on and after the date of the election described in subdivision (c). The RISE district shall consider all written and oral protests received prior to the close of the public hearing.
(c) Except as provided in subdivision (e), if there is a majority protest, the RISE district shall not take any further action to implement new projects under the RISE development plan on and after the date the existence of a majority protest is determined. If between 25 percent and 50 percent of the property owners and residents file protests, then the RISE district shall call an election of the property owners and residents in the area covered by the plan, and shall not initiate or authorize any new projects until the election is held. A majority protest exists if protests have been filed representing over 50 percent of the combined number of property owners and residents, at least 18 years of age or older, in the area.
(d) An election required pursuant to subdivision (c) shall be held within 90 days of the public hearing and may be held by mail-in ballot. The RISE district shall adopt, at a duly noticed public hearing, procedures for holding this election.
(e) If a majority of the property owners and residents vote against the plan, then the RISE district shall not take any further action to implement new projects under the plan on and after the date of the election held pursuant to subdivision (b). This section shall not be interpreted to prohibit a RISE district from doing either of the following:
(1) In fulfilling its obligations to repay all outstanding bonded indebtedness, fulfill all contractual obligations to third parties, or take all actions necessary so that the interest on any outstanding bonded indebtedness is excluded from gross income for federal income tax purposes.
(2) Expending bond proceeds and other revenues to complete any previously approved project or contractual obligation.

62410.5.
 (a) Except as otherwise provided in this chapter, the provisions of law regulating elections of the local agency that calls an election pursuant to this chapter, insofar as they may be applicable, shall govern all elections conducted pursuant to this chapter. Except as provided in subdivision (b), there shall be prepared and included in the ballot material provided to each voter, an impartial analysis pursuant to Section 9160 or 9280 of the Elections Code, arguments and rebuttals, if any, pursuant to Sections 9162 to 9167, inclusive, and Section 9190 of the Elections Code or pursuant to Sections 9281 to 9287, inclusive, and Section 9295 of the Elections Code.
(b) If the vote is to be by the landowners of the RISE district, analysis and arguments may be waived with the unanimous consent of all the landowners and shall be so stated in the order for the election.
(c) (1) If the election is to be conducted by mail ballot, the election official conducting the election shall provide ballots and election materials pursuant to subdivision (d) of Section 53326 and Section 53327, together with all supplies and instructions necessary for the use and return of the ballot.
(2) The identification envelope for return of mail ballots used in landowner elections shall contain the following:
(A) The name of the landowner.
(B) The address of the landowner.
(C) A declaration, under penalty of perjury, stating that the voter is the owner of record or the authorized representative of the landowner entitled to vote and is the person whose name appears on the identification envelope.
(D) The printed name and signature of the voter.
(E) The address of the voter.
(F) The date of signing and place of execution of the declaration pursuant to paragraph (3).
(G) A notice that the envelope contains an official ballot and is to be opened only by the canvassing board.

62411.
 (a) The RISE district shall not enact a resolution proposing formation of the district and providing for the division of taxes of any affected taxing entity pursuant to Chapter 4 (commencing with Section 62420) unless a resolution approving the plan has been adopted by the governing body of each affected taxing entity that is proposed to be subject to division of taxes pursuant to Chapter 4 (commencing with Section 62420) and has been filed with the legislative body at or prior to the time of the hearing.
(b) Nothing in this section shall be construed to prevent a RISE district from amending its RISE development plan and adopting a resolution proposing formation of the RISE district without allocation of the tax revenues of any affected taxing entity that has not approved the RISE development plan by resolution of the governing body of the affected taxing entity.
(c) If after the date of district formation, an affected taxing entity adopts a resolution approving the RISE district plan and to participate in the division of taxes used to finance a RISE district, the division of taxes shall be based upon the last equalized assessment roll that is used for the district pursuant to paragraph (2) of subdivision (a) of Section 62420.

62412.
 (a) A RISE district shall prepare an annual expenditure plan that identifies and describes the operations and eligible projects undertaken by the district. The expenditure plan shall be, after public review and hearing, adopted by the governing body of the district and subject to review and revision at least annually.
(b) A RISE district shall also prepare and adopt an annual operating budget and capital improvement budget. The annual operating budget and capital improvement budget shall be, after public review and hearing, adopted by the governing body of the district and subject to review and revision at least annually.
(c) A RISE district shall provide for regular audits of its accounts and records, as specified in Section 62410.4, maintain accounting records, and report accounting transactions in accordance with generally accepted accounting principles adopted by the Governmental Accounting Standards Board of the Financial Accounting Foundation for both public reporting purposes and for reporting of activities to the Controller.
(d) A RISE district shall provide for annual financial reports and make copies of the annual financial reports available to the public.

CHAPTER  4. Division of Taxes

62420.
 (a) Any RISE development plan may contain a provision that taxes, if any, levied upon taxable property in the area included within the RISE district each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the ordinance or resolution adopted pursuant to Section 62406 to create the district, shall be divided, subject to the provisions of Section 53993, as follows:
(1) That portion of the taxes that would be produced by the rate upon which the tax is levied each year by or for each of the affected taxing entities upon the total sum of the assessed value of the taxable property in the district as shown upon the assessment roll used in connection with the taxation of the property by the affected taxing entity, last equalized prior to the effective date of the resolution adopted pursuant to Section 62406 to create the RISE district, shall be allocated to, and when collected shall be paid to, the respective affected taxing entities as taxes by or for the affected taxing entities on all other property are paid.
(2) That portion of the levied taxes each year specified in the adopted RISE development plan for the city or county and each affected taxing entity that has agreed to participate pursuant to Section 62411 in excess of the amount specified in paragraph (1) shall be allocated to, and when collected shall be paid into a special fund of the RISE district for all lawful purposes of the RISE district. Unless and until the total assessed valuation of the taxable property in a district exceeds the total assessed value of the taxable property in the district as shown by the last equalized assessment roll referred to in paragraph (1), all of the taxes levied and collected upon the taxable property in the RISE district shall be paid to the respective affected taxing entities. When the RISE district ceases to exist pursuant to the adopted RISE development plan, all moneys thereafter received from taxes upon the taxable property in the RISE district shall be paid to the respective affected taxing entities as taxes on all other property are paid.
(b) Notwithstanding subdivision (a), where any RISE district boundaries overlap with the boundaries of any former redevelopment project area, any debt or obligation of a district shall be subordinate to any and all enforceable obligations of the former redevelopment agency, as approved by the Oversight Board and the Department of Finance. For the purposes of this chapter, the division of taxes allocated to the RISE district pursuant to subdivision (a) shall not include any taxes required to be deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund created pursuant to subdivision (b) of Section 34170.5 of the Health and Safety Code.
(c) (1) The legislative body of the city or county forming the RISE district may choose to dedicate any portion of its net available revenue to the RISE district through the RISE development plan described in Section 62410.
(2) For the purposes of this subdivision, “net available revenue” means periodic distributions to the city or county from the Redevelopment Property Tax Trust Fund, created pursuant to Section 34170.5 of the Health and Safety Code, that are available to the city or county after all preexisting legal commitments and statutory obligations funded from that revenue are made pursuant to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code. “Net available revenue” shall not include any funds deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund or funds remaining in the Redevelopment Property Tax Trust Fund prior to distribution. Net available revenues shall not include any moneys payable to a school district that maintains kindergarten and grades 1 to 12, inclusive, community college districts, county office of education, or to the Educational Revenue Augmentation Fund, pursuant to paragraph (4) of subdivision (a) of Section 34183 of the Health and Safety Code.
(d) (1) That portion of any ad valorem property tax revenue annually allocated to a city or county pursuant to Section 97.70 of the Revenue and Taxation Code that is specified in the adopted RISE development plan for the city or county that has agreed to participate pursuant to Section 64211, and that corresponds to the increase in the assessed valuation of taxable property shall be allocated to, and, when collected, shall be apportioned to, a special fund of the RISE district for all lawful purposes of the district.
(2) When the RISE district ceases to exist, the revenues described in this subdivision shall be allocated to, and, when collected, shall be apportioned to, the respective city or county.
(e) This section shall not be construed to prevent a RISE district from utilizing revenues from any of the following sources to support its activities provided that the applicable voter approval has been obtained, and the RISE development plan has been approved pursuant to Section 62410:
(1) The Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code).
(2) The Municipal Improvement Act of 1913 (Division 12 (commencing with Section 10000) of the Streets and Highways Code).
(3) The Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code).
(4) The Landscaping and Lighting Act of 1972 (Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code).
(5) The Vehicle Parking District Law of 1943 (Part 1 (commencing with Section 31500) of Division 18 of the Streets and Highways Code).
(6) The Parking District Law of 1951 (Part 4 (commencing with Section 35100) of Division 18 of the Streets and Highways Code).
(7) The Park and Playground Act of 1909 (Chapter 7 (commencing with Section 38000) of Part 2 of Division 3 of Title 4 of this code).
(8) The Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of this title).
(9) The Benefit Assessment Act of 1982 (Chapter 6.4 (commencing with Section 54703) of Part 1 of Division 2 of this title).
(10) The so-called facilities benefit assessment levied by the charter city of San Diego or any substantially similar assessment levied for the same purpose by any other charter city pursuant to any ordinance or charter provision.

62420.1.
 (a) The portion of taxes required to be allocated pursuant to paragraph (2) of subdivision (a) of Section 62420 shall be allocated and paid into a special fund held in trust for the RISE district by the county auditor or officer responsible for the payment of taxes into the funds of the affected taxing entities pursuant to the procedure contained in this section.
(b) Not later than October 1 of each year, for each RISE development project for which the RISE development plan provides for the division of taxes pursuant to Section 62420, the RISE district shall file, with the county auditor or officer described in subdivision (a), a statement of indebtedness consistent with subdivision (c), and a reconciliation statement consistent with subdivision (d). All statements required to be filed by this subdivision shall be certified by the chief financial officer of the RISE district.
(c) (1) For each RISE development project for which a statement of indebtedness is required to be filed, the statement of indebtedness shall contain all of the following:
(A) For each loan, advance, or indebtedness incurred or entered into, all of the following information:
(i) The date the loan, advance, or indebtedness was incurred or entered into.
(ii) The principal amount, term, purpose, interest rate, and total interest of each loan, advance, or indebtedness.
(iii) The principal amount and interest due in the fiscal year in which the statement of indebtedness is filed for each loan, advance, or indebtedness.
(iv) The total amount of principal and interest remaining to be paid for each loan, advance, or indebtedness.
(B) The sum of the amounts determined under clause (iii) of subparagraph (A).
(C) The sum of the amounts determined under clause (iv) of subparagraph (A).
(D) The available revenues as of the end of the previous year, as determined pursuant to paragraph (10) of subdivision (d).
(2) The RISE district may estimate the amount of principal or interest, the interest rate, or term of any loan, advance, or indebtedness if the nature of the loan, advance, or indebtedness is such that the amount of principal or interest, the interest rate or term cannot be precisely determined. The RISE district may list on a statement of indebtedness any loan, advance, or indebtedness incurred or entered into on or before the date the statement is filed.
(d) For each RISE district project for which a reconciliation statement is required to be filed, the reconciliation statement shall contain all of the following:
(1) A list of all loans, advances, and indebtedness listed on the previous year’s statement of indebtedness.
(2) A list of all loans, advances, and indebtedness, not listed on the previous year’s statement of indebtedness, but incurred or entered into in the previous year and paid in whole or in part from revenue received by the RISE district pursuant to Section 62420. This listing may aggregate loans, advances, and indebtedness incurred or entered into in the previous year for a particular purpose, including relocation expenses, administrative expenses, consultant expenses, or property management expenses, into a single item in the listing.
(3) For each loan, advance, or indebtedness described in paragraph (1) or (2), all of the following information:
(A) The total amount of principal and interest remaining to be paid as of the later of the beginning of the previous year or the date the loan, advance, or indebtedness was incurred or entered into.
(B) Any increases or additions to the loan, advance, or indebtedness occurring during the previous year.
(C) The amount paid on the loan, advance, or indebtedness in the previous year from revenue received by the RISE district pursuant to Section 62420.
(D) The amount paid on the loan, advance, or indebtedness in the previous year from revenue other than revenue received by the RISE district pursuant to Section 62420.
(E) The total amount of principal and interest remaining to be paid as of the end of the previous fiscal year.
(4) The available revenues of the RISE district as of the beginning of the previous fiscal year.
(5) The amount of revenue received by the RISE district in the previous fiscal year pursuant to Section 62420.
(6) The amount of available revenue received by the RISE district in the previous fiscal year from any source other than pursuant to Section 62420.
(7) The sum of the amounts specified in subparagraph (D) of paragraph (3), to the extent that the amounts are not included as available revenues pursuant to paragraph (6).
(8) The sum of the amounts specified in paragraphs (4), (5), (6), and (7).
(9) The sum of the amounts specified in subparagraphs (C) and (D) of paragraph (3).
(10) The amount determined by subtracting the amount determined under paragraph (9) from the amount determined under paragraph (8). The amount determined pursuant to this paragraph shall be the available revenues as of the end of the previous fiscal year.
(e) For the purposes of this section, available revenues shall include all cash or cash equivalents held by the RISE district that were received by the RISE district pursuant to Section 62420 and all cash or cash equivalents held by the RISE district that are irrevocably pledged or restricted to payment of a loan, advance, or indebtedness that the RISE district has listed on a statement of indebtedness.
(f) The county auditor or officer shall, at the same time or times as the payment of taxes into the funds of the affected taxing entities of the county, allocate and pay the portion of taxes provided by paragraph (2) of subdivision (a) of Section 62420 to a special trust fund established for each RISE district. The amount allocated and paid shall not exceed the amount determined pursuant to subparagraph (C) of paragraph (1) of subdivision (c), minus the amount determined pursuant to subparagraph (D) of paragraph (1) of subdivision (c).
(g) (1) The statement of indebtedness constitutes prima facie evidence of the loans, advances, or indebtedness of the RISE district.
(2) (A) If the county auditor or other officer disputes the amount of loans, advances, or indebtedness as shown on the statement of indebtedness, the county auditor or other officer shall, within 30 days after receipt of the statement, give written notice to the RISE district thereof.
(B) The RISE district shall, within 30 days after receipt of notice pursuant to subparagraph (A), submit any further information it deems appropriate to substantiate the amount of any loans, advances, or indebtedness which has been disputed. If the county auditor or other officer still disputes the amount of loans, advances, or indebtedness, final written notice of that dispute shall be given to the RISE district, and the amount disputed may be withheld from allocation and payment to the RISE district as otherwise required by subdivision (h). In that event, the auditor or other officer shall bring an action in the superior court in declaratory relief to determine the matter not later than 90 days after the date of the final notice.
(3) In any court action brought pursuant to this section, the issue shall involve only the amount of loans, advances, or indebtedness, and not the validity of any contract or debt instrument or any expenditures pursuant thereto. Payments to a trustee under a bond resolution or indenture of any kind or payments to a public agency in connection with payments by that public agency pursuant to a lease or bond issue shall not be disputed in any action under this section. The matter shall be set for trial at the earliest possible date and shall take precedence over all other cases except older matters of the same character. Unless an action is brought within the time provided for herein, the auditor or other officer shall allocate and pay the amount shown on the statement of indebtedness as provided in subdivision (h).
(h) This section does not deny a remedy against the RISE district otherwise provided by law.
(i) The Controller shall prescribe a uniform form for a statement of indebtedness and reconciliation. These forms shall be consistent with this section. In preparing these forms, the Controller shall obtain the input of county auditors, agencies, and organizations of county auditors and agencies.
(j) For the purposes of this section, a fiscal year shall be a year that begins on July 1 and ends the following June 30.

62420.2.
 The county auditor shall, after deducting its administrative costs for activities performed pursuant to this chapter and Section 95.3 of the Revenue and Taxation Code, allocate the funds deposited in a special trust fund established for a RISE district pursuant to subdivision (f) of Section 62420.1 and shall distribute those taxes in the same manner and at the same time or times as the payment of taxes into the funds of the affected taxing entities of the county. The amounts in the fund shall be transferred to the RISE district and available to the RISE district for any purpose authorized in the RISE development plan.

62421.
 (a) (1) At any time before or after the adoption of the RISE development plan, a city, county, or city and county may adopt a resolution to allocate tax revenues of that entity to the district, including revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code).
(2) If the RISE development plan proposes to allocate tax revenues of that entity to the district that are derived from the local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code), the city, county, or city and county has received the consent of any impacted transportation agency that receives tax revenues derived from that any tax adopted pursuant to that law, and has ensured that existing or planned transportation operations and capital projects will not be negatively impacted.
(b) The RISE district shall ensure that the requirements of this article division are met every 15 years. years, as described in subdivision (b) of Section 62410.4.
(c) The use of the revenues derived from the local sales and use taxes imposed under the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code) pursuant to the RISE development plan is consistent with the purposes for which that tax is imposed.
(d) The RISE district shall require, by recorded covenants or restrictions, that affordable housing units financed pursuant to this section remain available at affordable housing costs to, and occupied by, very low income households, persons and families of low income, or persons and families of low or moderate income for the following, as applicable:
(1) Fifty-five years for units that are rented, unless a local ordinance or the terms of a federal, state, or local grant, tax credit, or other project financing requires, as a condition of the development of residential units, that the development include a certain percentage of units that are affordable to, and occupied by, low-income, lower income, very low income, or extremely low income households for a term that exceeds 55 years for rental housing units.
(2) Forty-five years for owner-occupied units.
(e) A RISE district shall not adopt an ordinance terminating a RISE district created pursuant to this section if the district has not complied with its affordable housing obligations.

CHAPTER  5. Tax Increment Bonds

62425.
 A RISE district may, by majority vote, issue bonds pursuant to this chapter by adopting a resolution that includes all of the following:
(a) A description of the facilities or developments to be financed with the proceeds of the proposed bond issue.
(b) The estimated cost of the facilities or developments, the estimated cost of preparing and issuing the bonds, and the principal amount of the bond issuance.
(c) The maximum interest rate and discount on the bond issuance.
(d) A determination of the amount of tax revenue available or estimated to be available, for the payment of the principal of, and interest on, the bonds.
(e) A finding that the amount necessary to pay the principal of, and interest on, the bond issuance will be less than, or equal to, the amount determined pursuant to subdivision (d).
(f) The issuance of the bonds in one or more series.
(g) The principal amount of the bonds that shall be consistent with the amount specified in subdivision (b).
(h) The date the bonds will bear.
(i) The date of maturity of the bonds.
(j) The denomination of the bonds.
(k) The form of the bonds.
(l) The manner of execution of the bonds.
(m) The medium of payment in which the bonds are payable.
(n) The place or manner of payment and any requirements for registration of the bonds.
(o) The terms of call or redemption, with or without premium.

62426.
 The RISE district may, by majority vote, provide for refunding of bonds issued pursuant to this chapter. However, refunding bonds shall not be issued if the total net interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds exceeds the total net interest cost to maturity on the bonds to be refunded. The RISE district may not extend the time to maturity of the bonds.

62427.
 The RISE district or any person executing the bonds shall not be personally liable on the bonds by reason of their issuance. The bonds and other obligations of a district issued pursuant to this chapter are not a debt of the city, county, or state or of any of its political subdivisions, other than the district, and none of those entities, other than the district, shall be liable on the bonds and the bonds or obligations shall be payable exclusively from funds or properties of the district. The bonds shall contain a statement to this effect on their face. The bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation.

62428.
 The bonds may be sold at discount not to exceed 5 percent of par at public sale. At least five days prior to the sale, notice shall be published, pursuant to Section 6061, in a newspaper of general circulation and in a financial newspaper published in the City and County of San Francisco and in the City of Los Angeles. The bonds may be sold at not less than par to the federal government at private sale without any public advertisement.

62429.
 If any member of the RISE district whose signature appears on bonds ceases to be a member of the RISE district before delivery of the bonds, their signature is as effective as if they had remained in office. Bonds issued pursuant to this chapter are fully negotiable.

62430.
 Upon the approval of its governing board, a city, county, or special district that contains territory within the boundaries of a district, may loan moneys to the district to fund those activities described in the RISE development plan approved and adopted pursuant to Section 62410. Moneys loaned pursuant to this provision may be repaid at an interest rate that does not exceed the Local Agency Investment Fund rate that is in effect on the date that the loan is approved by the governing board. Notwithstanding any other provision of law it is the intent of the Legislature that any loan issued to a RISE district by a governmental entity shall be repaid fully unless agreed to otherwise between the district and the governmental entity.

62431.
 (a) Commencing in the calendar year in which a district has allocated a cumulative total of more than one million dollars ($1,000,000) in property tax increment revenues under this division, including any proceeds of a debt issuance, and each year thereafter, the district shall contract for an independent audit conducted in accordance with generally accepted governmental auditing standards.
(b) Upon the request of the Governor or the Legislature, the Bureau of State Audits shall be authorized to conduct financial and performance audits of RISE districts. The results of the audits shall be provided to the district, the Controller, the Director of Finance, and the Joint Legislative Budget Committee.

CHAPTER  6. Labor Standards

62435.
 Except as provided in Sections 62437 and 62438, a project financed with RISE district funds shall meet all of the following labor standards:
(a) The development proponent shall require in contracts with construction contractors, and shall certify to the RISE district, that the standards specified in this section will be met in project construction.
(b) A development that is not in its entirety a public work for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code and receives financing from a RISE district shall be subject to all of the following:
(1) All construction workers employed in the execution of the development shall be paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773.9 of the Labor Code, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.
(2) The development proponent shall ensure that the prevailing wage requirement is included in all contracts for the performance of the work for those portions of the development that are not a public work.
(3) All contractors and subcontractors for those portions of the development that are not a public work shall comply with both of the following:
(A) Pay to all construction workers employed in the execution of the work at least the general prevailing rate of per diem wages, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.
(B) Maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided in that section. This subparagraph does not apply if all contractors and subcontractors performing work on the development are subject to a project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the development and provides for enforcement of that obligation through an arbitration procedure. For purposes of this subparagraph, “project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
(c) (1) The obligation of the contractors and subcontractors to pay prevailing wages pursuant to this section may be enforced by any of the following:
(A) The Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code, within 18 months after the completion of the development.
(B) An underpaid worker through an administrative complaint or civil action.
(C) A joint labor-management committee through a civil action under Section 1771.2 of the Labor Code.
(2) If a civil wage and penalty assessment is issued pursuant to this section, the contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the assessment shall be liable for liquidated damages pursuant to Section 1742.1 of the Labor Code.
(3) This subdivision does not apply if all contractors and subcontractors performing work on the development are subject to a project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the development and provides for enforcement of that obligation through an arbitration procedure. For purposes of this subdivision, “project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
(d) Notwithstanding subdivision (c) of Section 1773.1 of the Labor Code, the requirement that employer payments not reduce the obligation to pay the hourly straight time or overtime wages found to be prevailing does not apply to those portions of development that are not a public work if otherwise provided in a bona fide collective bargaining agreement covering the worker.
(e) The requirement of this section to pay at least the general prevailing rate of per diem wages does not preclude use of an alternative workweek schedule adopted pursuant to Section 511 or 514 of the Labor Code.

62436.
 Except as provided in Sections 62437 and 62438, a development of 50 or more housing units financed by a RISE district shall, in addition to the requirements of Section 62435, meet all of the following labor standards:
(a) The development proponent shall require in contracts with construction contractors and shall certify to the RISE district that each contractor of any tier who will employ construction craft employees or will let subcontracts for at least 1,000 hours shall satisfy the requirements in subdivisions (b) and (c). A construction contractor is deemed in compliance with subdivisions (b) and (c) if it is signatory to a valid collective bargaining agreement that requires utilization of registered apprentices and expenditures on health care for employees and dependents.
(b) A contractor with construction craft employees shall either participate in an apprenticeship program approved by the State of California Division of Apprenticeship Standards pursuant to Section 3075 of the Labor Code, or request the dispatch of apprentices from a state-approved apprenticeship program under the terms and conditions set forth in Section 1777.5 of the Labor Code. A contractor without construction craft employees shall show a contractual obligation that its subcontractors comply with this subdivision.
(c) Each contractor with construction craft employees shall make health care expenditures for each employee in an amount per hour worked on the development equivalent to at least the hourly pro rata cost of a Covered California Platinum level plan for two 40-year-old adults and two dependents 0 to 14 years of age for the Covered California rating area in which the development is located. A contractor without construction craft employees shall show a contractual obligation that its subcontractors comply with this subdivision. Qualifying expenditures shall be credited toward compliance with prevailing wage payment requirements set forth in Section 62435.
(d) (1) The development proponent shall provide to the RISE district, on a monthly basis while its construction contracts on the development are being performed, a report demonstrating compliance with subdivisions (b) and (c). The reports shall be considered public records under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1), and shall be open to public inspection.
(2) A development proponent that fails to provide the monthly report shall be subject to a civil penalty for each month for which the report has not been provided, in the amount of 10 percent of the dollar value of construction work performed by that contractor on the development in the month in question, up to a maximum of ten thousand dollars ($10,000). Any contractor or subcontractor that fails to comply with subdivision (b) or (c) shall be subject to a civil penalty of two hundred dollars ($200) per day for each worker employed in contravention of subdivision (b) or (c).
(3) Penalties may be assessed by the Labor Commissioner within 18 months of completion of the development using the procedures for issuance of civil wage and penalty assessments specified in Section 1741 of the Labor Code, and may be reviewed pursuant to Section 1742 of the Labor Code. Penalties shall be deposited in the State Public Works Enforcement Fund established pursuant to Section 1771.3 of the Labor Code.
(e) Each construction contractor shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code. Each construction contractor shall submit payroll records directly to the Labor Commissioner at least monthly in a format prescribed by the Labor Commissioner in accordance with subparagraph (A) of paragraph (3) of subdivision (a) of Section 1771.4 of the Labor Code. The records shall include a statement of fringe benefits. Upon request by a joint labor-management cooperation committee established pursuant to the Federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a), the records shall be provided pursuant to subdivision (e) of Section 1776 of the Labor Code.
(f) All construction contractors shall report any change in apprenticeship program participation or health care expenditures to the RISE district within 10 business days, and shall reflect those changes on the monthly report. The reports shall be considered public records pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1) and shall be open to public inspection.
(g) A joint labor-management cooperation committee established pursuant to the Federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a) shall have standing to sue a construction contractor for failure to make health care expenditures pursuant to subdivision (c) in accordance with Section 218.7 or 218.8 of the Labor Code.

62437.
 Notwithstanding Sections 62435 and 62436, a proponent of an infrastructure project financed with RISE district funds shall certify to the RISE district that either of the following is true:
(a) The entirety of the infrastructure project is a public work for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(b) The infrastructure project is not in its entirety a public work for which prevailing wages must be paid under Article 1 (commencing with Section 1720) of Chapter 1 of Part 7 of Division 2 of the Labor Code, but all construction workers employed on construction of the development will be paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773.9 of the Labor Code, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate. If the infrastructure project is subject to this paragraph, then for those portions of the project that are not a public work all of the following shall apply:
(1) The prevailing wage requirement is included in all contracts for the performance of all construction work.
(2) All contractors and subcontractors shall pay to all construction workers employed in the execution of the work at least the general prevailing rate of per diem wages, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.
(3) Except as provided in paragraph (5), all contractors and subcontractors shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided therein.
(4) Except as provided in paragraph (5), the obligation of the contractors and subcontractors to pay prevailing wages may be enforced by the Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code, within 18 months after the completion of the development, or by an underpaid worker through an administrative complaint or civil action, or by a joint labor-management committee though a civil action under Section 1771.2 of the Labor Code. If a civil wage and penalty assessment is issued, the contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the assessment shall be liable for liquidated damages pursuant to Section 1742.1 of the Labor Code.
(5) Paragraphs (3) and (4) shall not apply if all contractors and subcontractors performing work on the infrastructure are subject to a project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the development and provides for enforcement of that obligation through an arbitration procedure. For purposes of this clause, “project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
(6) Notwithstanding subdivision (c) of Section 1773.1 of the Labor Code, the requirement that employer payments not reduce the obligation to pay the hourly straight time or overtime wages found to be prevailing shall not apply if otherwise provided in a bona fide collective bargaining agreement covering the worker. The requirement to pay at least the general prevailing rate of per diem wages does not preclude use of an alternative workweek schedule adopted pursuant to Section 511 or 514 of the Labor Code.

62438.
 (a) Notwithstanding Sections 62435 and 62436, the proponent of an infrastructure project financed with RISE district funds shall certify to the RISE district that a skilled and trained workforce will be used to perform all construction work on the infrastructure.
(1) For purposes of this subdivision, “skilled and trained workforce” has the same meaning as provided in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.
(2) If the developer has certified that a skilled and trained workforce will be used to construct all work on infrastructure and the application is approved, all of the following shall apply:
(A) The RISE district shall require in all contracts for the performance of work that every contractor and subcontractor at every tier will individually use a skilled and trained workforce to construct the development.
(B) Every contractor and subcontractor shall use a skilled and trained workforce to construct the development.
(C) Except as provided in subparagraph (D), the contractor shall provide to the RISE district, on a monthly basis while the infrastructure is being constructed, a report demonstrating compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code. A monthly report provided to the RISE district pursuant to this subparagraph shall be a public record under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1), and shall be open to public inspection. A developer that fails to provide a monthly report demonstrating compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code shall be subject to a civil penalty of ten thousand dollars ($10,000) per month for each month for which the report has not been provided. Any contractor or subcontractor that fails to use a skilled and trained workforce shall be subject to a civil penalty of two hundred dollars ($200) per day for each worker employed in contravention of the skilled and trained workforce requirement. Penalties may be assessed by the Labor Commissioner within 18 months of completion of the development using the same procedures for issuance of civil wage and penalty assessments pursuant to Section 1741 of the Labor Code, and may be reviewed pursuant to the same procedures in Section 1742 of the Labor Code. Penalties shall be paid to the State Public Works Enforcement Fund.
(D) Subparagraph (C) shall not apply if all contractors and subcontractors performing work on the development are subject to a project labor agreement that requires compliance with the skilled and trained workforce requirement and provides for enforcement of that obligation through an arbitration procedure. For purposes of this subparagraph, “project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
(3) Notwithstanding subparagraph (B) of paragraph (2), a contractor or subcontractor shall not be in violation of the apprenticeship graduation requirements of subdivision (d) of Section 2601 of the Public Contract Code to the extent that all of the following requirements are satisfied:
(A) All contractors and subcontractors performing work on the development are subject to a project labor agreement that includes the local building and construction trades council as a party, that requires compliance with the apprenticeship graduation requirements, and that provides for enforcement of that obligation through an arbitration procedure.
(B) The project labor agreement requires the contractor or subcontractor to request the dispatch of workers for the project through a hiring hall or referral procedure.
(C) The contractor or subcontractor is unable to obtain sufficient workers to meet the apprenticeship graduation percentage requirement within 48 hours of its request, Saturdays, Sundays, and holidays excepted.
(b) Notwithstanding subdivision (a), a contract or subcontract may be awarded without a requirement for the use of a skilled and trained workforce to the extent that all of the following requirements are satisfied:
(1) At least seven days before issuing any invitation to prequalify or bid solicitation for the project, the developer sends a notice of the invitation or solicitation that describes the project to the following entities within the jurisdiction of the proposed project site:
(A) Any bona fide labor organization representing workers in the building and construction trades who may perform work necessary to complete the project.
(B) Any organization representing contractors that may perform work necessary to complete the project.
(2) The RISE district or developer seeks bids containing an enforceable commitment that all contractors and subcontractors at every tier will use a skilled and trained workforce to perform work on the project that falls within an apprenticeable occupation in the building and construction trades.
(3) For the purpose of establishing a bidder pool of eligible contractors and subcontractors, the developer establishes a process to prequalify prime contractors and subcontractors that agree to meet skilled and trained workforce requirements.
(4) The bidding process for the project includes, but is not limited to, all of the following requirements:
(A) The prime contractor shall be required to list all subcontractors that will perform work in an amount in excess of one-half of 1 percent of the prime contractor’s total bid.
(B) The RISE district or developer shall only accept bids from prime contractors that have been prequalified.
(C) If the RISE district or developer receives at least two bids from prequalified prime contractors, a skilled and trained workforce must be used by all contractors and subcontractors, except as provided in subparagraph (D).
(D) If the RISE district or developer receives fewer than two bids from prequalified prime contractors, the contract may be rebid and awarded without the skilled and trained workforce requirement applying to the prime contractor’s scope of work.
(E) Prime contractors shall request bids from subcontractors on the prequalified list and shall only accept bids and list subcontractors from the prequalified list. If the prime contractor receives bids from at least two subcontractors in each tier listed on the prequalified list, the prime contractor shall require that the contract for that tier or scope of work will require a skilled and trained workforce.
(F) If the prime contractor fails to receive at least two bids from subcontractors listed on the prequalified list in any tier, the prime contractor may rebid that scope of work. The prime contractor need not require that a skilled and trained workforce be used for that scope of work and may list subcontractors for that scope of work that do not appear on the prequalified list.
(5) The RISE district shall establish minimum requirements for prequalification of prime contractors and subcontractors that are, to the maximum extent possible, quantifiable and objective. Only criterion, and minimum thresholds for any criterion, that are reasonably necessary to ensure that any bidder awarded a project can successfully complete the proposed scope shall be used by the developer. The developer shall not impose any obstacles to prequalification that go beyond what is commercially reasonable and customary.
(6) The RISE district and or developer shall, within 24 hours of a request by a labor organization that represents workers in the geographic area of the project, provide all of the following information to the labor organization:
(A) The names and Contractors State License Board numbers of the prime contractors and subcontractors that have prequalified.
(B) The names and Contractors State License Board numbers of the prime contractors that have submitted bids and their respective listed subcontractors.
(C) The names and Contractors State License Board numbers of the prime contractor that was awarded the work and its listed subcontractors.
(7) An interested party, including a labor organization that represents workers in the geographic area of the project, may bring an action for injunctive relief against a developer or prime contractor that is proceeding with a project in violation of the bidding requirements of this subdivision applicable to developers and prime contractors. The court in such an action may issue injunctive relief to halt work on the project and to require compliance with the requirements of this section. The prevailing plaintiff in such an action shall be entitled to recover its reasonable attorney’s fees and costs.

62439.
 Notwithstanding any other provision of this chapter, this chapter shall not apply to a project that is privately financed in its entirety.

SEC. 3.

 Division 2 (commencing with Section 64000) is added to Title 6.7 of the Government Code, to read:

DIVISION 2. RISE REVOLVING LOAN FUND

64000.
 For purposes of this division:
(a) “Fund” means the RISE Revolving Loan Fund.
(b) “IBank” means the Infrastructure and Economic Development Bank.
(c) “Program” means the RISE District Revolving Loan Program established pursuant to Section 64002.
(d) “RISE district” means a RISE district established pursuant to Division 7 (commencing with Section 62400) of Title 6 that has adopted a RISE development plan adopted pursuant to Section 62410.

64001.
 (a) Upon appropriation by the Legislature, the IBank shall establish the RISE Revolving Loan Fund.
(b) The purpose of the fund is to provide RISE districts with initial startup funding for projects contained within the RISE district’s adopted RISE development plan.
(c) Moneys in the fund shall be made available to the IBank for purposes of awarding loans pursuant to Section 64002.
(d) All interest, dividends, and pecuniary gains from investments or deposits of moneys in the fund shall accrue to the fund, notwithstanding Section 16305.7. There shall be paid into the fund all of the following:
(1) Any moneys appropriated and made available by the Legislature for the purposes of the fund.
(2) Any moneys that the IBank receives in repayment of loans made from the fund, including any interest on loans made from the fund.
(3) Any other moneys that may be made available to the IBank for the purposes of this division from any other source.

64002.
 (a) Upon appropriation by the Legislature, the IBank shall establish the RISE District Revolving Loan Program pursuant to this division.
(b) The IBank shall award flexible, low-cost credit support startup loans to RISE districts based on the following criteria:
(1) The IBank shall award loans to a RISE district in an amount deemed necessary to fund the initial projects of the RISE district, as provided in the district’s RISE development plan.
(2) The IBank shall review applications on a noncompetitive basis and award loans for projects that have met thresholds until total amount of funds are expended.

64003.
 (a) The IBank shall establish standard terms that apply uniformly to all loans awarded pursuant to Section 64002, including interest rates and repayment terms.
(b) Loan terms shall ensure the continued existence of RISE districts and facilitate RISE districts to establish long-term funding sources otherwise authorized by Division 7 (commencing with Section 62400) of Title 6.
(c) The IBank shall adopt regulations as necessary or appropriate to carry out the purposes of this division.

SEC. 4.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

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