Bill Text: CA SB1 | 2013-2014 | Regular Session | Amended
Bill Title: Sustainable Communities Investment Authority.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2013-09-12 - Ordered to inactive file on request of Senator Steinberg. [SB1 Detail]
Download: California-2013-SB1-Amended.html
BILL NUMBER: SB 1 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY SEPTEMBER 3, 2013
AMENDED IN ASSEMBLY AUGUST 5, 2013
AMENDED IN SENATE MAY 2, 2013
AMENDED IN SENATE APRIL 15, 2013
INTRODUCED BY Senator Steinberg
(Coauthor: Senator DeSaulnier)
DECEMBER 3, 2012
An act to add Part 1.86 (commencing with Section 34191.10) to
Division 24 of the Health and Safety Code, and to amend Section
21094.5 of the Public Resources Code, relating to economic
development, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 1, as amended, Steinberg. Sustainable Communities Investment
Authority.
The Community Redevelopment Law authorizes the establishment of
redevelopment agencies in communities to address the effects of
blight, as defined. Existing law dissolved redevelopment agencies and
community development agencies, as of February 1, 2012, and provides
for the designation of successor agencies.
Existing law provides for various economic development programs
that foster community sustainability and community and economic
development initiatives throughout the state.
This bill would authorize certain public entities of a Sustainable
Communities Investment Area, as described, to form a Sustainable
Communities Investment Authority (authority) to carry out the
Community Redevelopment Law in a specified manner. The bill would
require the authority to adopt a Sustainable Communities Investment
Plan for a Sustainable Communities Investment Area and authorize the
authority to include in that plan a provision for the receipt of tax
increment funds provided that certain economic development and
planning requirements are met. The bill would authorize the
legislative body of a city or county forming an authority to dedicate
any portion of its net available revenue, as defined, to the
authority through its Sustainable Communities Investment Plan. The
bill would require the authority to contract for an independent
financial and performance audit every 5 years.
The bill would establish prequalification requirements for
entities that will receive more than $1,000,000 from the Sustainable
Communities Investment Authority and would require the Department of
Industrial Relations to monitor and enforce compliance with
prevailing wage requirements for specified projects within a
Sustainable Communities Investment Area. The bill would deposit
moneys received by the department from developer charges related to
the costs of monitoring and enforcement in the State Public Works
Enforcement Fund. By depositing a new source of revenue in the State
Public Works Enforcement Fund, a continuously appropriated special
fund, the bill would make an appropriation.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Part 1.86 (commencing with Section 34191.10) is added
to Division 24 of the Health and Safety Code, to read:
PART 1.86. Sustainable Communities Investment PROGRAM
CHAPTER 1. GENERAL PROVISIONS
34191.10. (a) The Legislature finds and declares that better
economic development patterns in California can contribute to greater
economic growth by creating good jobs, reducing commuter times for
employees, reducing the costs of public infrastructure, and reducing
energy consumption. Better development patterns may also result in
increased options in the type of housing available, more affordable
housing, and a reduction in a household's combined housing and
transportation costs.
(b) The construction industry has been one of the sectors hardest
hit by the economic downturn of recent years. Creating incentives for
construction can help restore construction and permanent jobs, which
are essential for a restoration of prosperity.
(c) Economic development patterns can also help California attain
some of its long-term strategic environmental objectives including
reduced air pollution, greater water conservation, reduced energy
consumption, and increased farmland and habitat preservation.
(d) Implementation of the growth plans identified by the
metropolitan planning organizations in their sustainable communities
strategies, and in particular the development of areas identified for
transit priority projects, is essential if California is to achieve
the multiple benefits that would result from economic development.
Implementation of growth plans in transit priority project areas
requires redevelopment of existing developed areas.
(e) In addition to economic pressures from the current recession,
development of transit priority projects remains challenging.
Infrastructure is often old and inadequate. Sites may suffer from
contamination that is expensive to remediate. The high construction
costs in urban areas, particularly for multifamily dwellings, create
an additional challenge. For these reasons, it is critical to
restructure and refocus redevelopment in California to assist in
achievement of these multiple benefits.
(f) At the same time, California cannot afford a redevelopment
program that causes schools to lose revenue at a time when investing
in education is also key to the state's economic prosperity. A growth
plan for the state consistent with regional sustainable communities
strategies must also provide that schools are able to play their full
role in achieving the future of California. In this regard, Section
16 of Article XVI of the California Constitution does not require
that all taxing agencies set aside their portion of future property
tax for tax increment. It defines taxing agencies disjunctively as
"any city, county, city and county, district, or other public
corporation."
(g) The elimination of redevelopment agencies has resulted in the
loss of approximately one billion dollars ($1,000,000,000) annually
in low- and moderate-income housing funds for communities throughout
the state. Communities need alternative sources of revenue to support
the continued production of affordable housing units.
(h) The Legislature finds that a comprehensive strategy for the
long-term economic development of the state must encourage the
creation of good jobs and workforce skills needed to attract and
retain a high-wage workforce, in addition to public infrastructure
requirements. Public investments in human capital are as vital to the
long-term growth of the state's economy as investments in physical
capital.
34191.11. The Legislature further finds and declares that
inefficient land use patterns cause an increased economic burden on
taxpayers for the costs of an inefficient transportation
infrastructure, and create a high combined economic cost of housing
and transportation for California residents. These development
patterns have also contributed to declining property values and
foreclosures in many communities. They create further economic risks
for the agricultural industry, the largest industry in California,
through the loss of critical farmland. They also result in increased
air pollution, energy consumption, and greenhouse gas emissions which
impose additional costs on business and damage public health. They
also lead to inefficient consumption of water, a critical resource
for all of California.
34191.12. The Legislature finds and declares that the
interrelated problems identified in this chapter are a form of blight
that can be addressed through a new Sustainable Communities
Investment Program.
34191.13. In order to more effectively address blight, the
program shall be established to support development in transit
priority project areas and small walkable communities and to support
clean energy manufacturing through tax increment revenue. This new
program shall use tax increment revenue to fight blight as it is
understood in the contemporary setting without including those
aspects of the former redevelopment program that created so much
controversy, including the manipulation of the definition of blight
and the use of the school share of tax increment revenue, such that
it became a drain on the General Fund. The new program, focused on
certain geographic areas and sites, shall require greater levels of
intergovernmental collaboration.
34191.14. It is the intent of the Legislature in establishing the
Sustainable Communities Investment Program to create a new,
collaborative structure for the creation of a governing board for a
Sustainable Communities Investment Authority and to allow
governmental entities through a consensual process to invest tax
increment revenue to relieve conditions of blight as prescribed by
the Legislature. The new authority shall have new planning
obligations and, in particular, shall have a new focus on the job
creation associated with new economic development. To the extent not
inconsistent with the new program, the authority shall be able to
exercise the powers of the former redevelopment agencies, but only as
part of this newly created and reformed program.
34191.15. For purposes of this part, "authority" or "Sustainable
Communities Investment Authority" means the entity formed under
Chapter 2 (commencing with Section 34191.20).
CHAPTER 2. SUSTAINABLE COMMUNITIES INVESTMENT AUTHORITY
34191.20. (a) A Sustainable Communities Investment Authority is a
public body, corporate and politic, that may be created by the
appointment of a governing board as provided in subdivision (e).
The
(1) The authority shall comply
with the all of the following:
(A) The provisions of this
part, the part.
(B) The Community Redevelopment
Law (Part 1 (commencing with Section 33000)), excluding Sections
33401, 33492.140, 33607, 33607.5, 33607.7, 33676, and
any other similar payment provision of that part,
Part and Article 6 (commencing with Section 33080) of
Chapter 1 of that part.
(C) Part 1.5 (commencing with
Section 34000), Part to the extent not
inconsistent with this part.
(D) Part 1.6 (commencing with
Section 34050), and Part to the extent not
inconsistent with this part.
(E) Part 1.7 (commencing with
Section 34100), to the extent not inconsistent with this part.
The
(2) The authority shall not be
subject to the provisions of Part 1.8 (commencing with Section 34161)
and Part 1.85 (commencing with Section 34170).
(b) The authority shall be deemed to be an "agency" pursuant to
Section 33003 and shall have all the rights, responsibilities, and
obligations of an agency. For purposes of this part, a project area
shall be referred to as a Sustainable Communities Investment Area and
a redevelopment plan shall be referred to as a Sustainable
Communities Investment Plan.
(c) An authority created pursuant to this part may rely on the
legislative determination of blight and shall not be required to make
a separate finding of blight or conduct a survey of blight within
the project area.
(d) Notwithstanding any other provision of law, a Sustainable
Communities Investment Authority shall not be formed under this
section by either of the following:
(1) A city or county that created a redevelopment agency that was
dissolved pursuant to Part 1.85 (commencing with Section 34170) of
Division 24, unless the successor agency or designated local
authority for the former redevelopment agency has received a finding
of completion from the Department of Finance pursuant to Section
34179.7.
(2) A city, county, city and county, or special district that has
declared a fiscal emergency, unless the city, county, city and
county, or special district subsequently declares that the fiscal
emergency has been resolved.
(e) An authority may be created as follows:
(1) A city, county, city and county, or a special district may
create an authority pursuant to this part by entering into a joint
powers agreement under Chapter 5 (commencing with Section 6500) of
Division 7 of Title 1 of the Government Code. The joint powers
agreement shall establish a governing board and designate the
Sustainable Communities Investment Area.
(2) A city may create an authority, appoint the authority
governing board, designate a Sustainable Communities Investment Area
within the city's incorporated area, and establish the parameters of
the proposed economic development within a proposed Sustainable
Communities Investment Area with county approval of the economic
development parameters and the Sustainable Communities Investment
Plan, including any amendments to the plan.
(3) A city and a county may create an authority and appoint the
authority governing board, which shall be comprised of two members
appointed by the city and two members appointed by the county. A
fifth member shall be appointed by the two city and the two county
members. The governing board shall designate the Sustainable
Communities Investment Area. A Sustainable Communities Investment
Plan, including any amendments to it, shall be approved by both the
city and the county. The Sustainable Communities Investment Area may
include an incorporated area or both an incorporated area and an
unincorporated area.
(4) If the Sustainable Communities Investment Area is within an
unincorporated area, the board of supervisors of a county may create
an authority and appoint the authority governing board.
(5) A city may create an authority, which shall constitute a
legally distinct entity from that city, and appoint the authority
governing board, which may designate a Sustainable Communities
Investment Area only within the incorporated limits of that city.
(f) If an authority is created pursuant to this section by an
entity that is a city and county the governing body shall be composed
of five members appointed by the mayor of the city, if that
appointment is subject to confirmation by the county board of
supervisors.
(g) Any city or county approval under this section shall be by
resolution of the legislative body.
(h) A taxing agency participating in or approving the formation of
a Sustainable Communities Investment Authority or appointing
governing board members may authorize an allocation to the authority
of all or part of the tax increment revenue that otherwise would be
paid to that taxing agency.
(i) A governing board appointed pursuant to this section shall
consist of five members. The members of any governing board formed
pursuant to this part shall be appointed for four-year terms and
shall be removed by the appointing authority only for cause. The
initial appointees to the governing board shall serve either two-year
or four-year terms and shall draw their terms by lot. An authority
created pursuant to this section shall be deemed to 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 of the Government
Code), the California Public Records Act (Chapter 3.5 (commencing
with Section 6250) of Division 7 of Title 1 of the Government Code),
the Meyers-Milias-Brown Act (Chapter 10 (commencing with Section
3500) of Division 4 of Title 1 of the Government Code), and the
Political Reform Act of 1974 (Title 9 (commencing with Section 81000)
of the Government Code). The governing board shall adopt policies
regarding the use of personal service contracts to
that apply the standards set forth in Section 19130 of
the Government Code that apply to the authority
and its employees.
(j) A school district shall be excluded from participating in a
Sustainable Communities Investment Authority.
CHAPTER 3. SUSTAINABLE COMMUNITIES INVESTMENT AREAS
34191.25. (a) A Sustainable Communities
Investment Area shall include only the following:
(a)
(1) Transit priority project areas, which are areas
where a transit priority project, as defined in Section 21155 of the
Public Resources Code, may be constructed, provided that if the
Sustainable Communities Investment Area is based on proximity to a
planned major transit stop or a high-quality transit corridor, the
stop or the corridor must be scheduled to be completed within the
planning horizon established by Section 450.322 of Title 23 of the
Code of Federal Regulations. For purposes of this paragraph, a
transit priority project area may include a military base reuse plan
that meets the definition of a transit priority project area and it
may include a contaminated site within a transit priority project
area.
(1)
(A) If the Sustainable Communities Investment Area
includes a high-speed rail station, the radius of the area may be up
to one mile from a high-speed rail station. If the project area
consists of a radius greater than one-half of one mile, at least 50
percent of tax increment revenue derived from the area shall be used
to support construction of the high-speed rail station and related
infrastructure.
(2)
(B) All or part of a transit priority project area may
be included in the Sustainable Communities Investment Area or an area
may include one or more contiguous transit priority project areas.
One or more Sustainable Communities Investment Areas may be created
pursuant to subdivision (e) of Section 34191.20.
(3)
(C) Transit priority project areas shall be within the
geographic boundaries of a metropolitan planning organization in
which a sustainable communities strategy has been adopted by the
metropolitan planning organization, and the State Air Resources
Board, pursuant to subparagraph (H) of paragraph (2) of subdivision
(b) of Section 65080 of the Government Code, has accepted the
metropolitan planning organization's determination that the
sustainable communities strategy would, if implemented, achieve the
region's greenhouse gas emission reduction targets.
(b)
(2) Areas that are small walkable communities, as
defined in paragraph (4) of subdivision (e) of Section 21094.5 of the
Public Resources Code, except that small walkable communities may
also be designated in a city that is within the area of a
metropolitan planning organization. No more than one small walkable
community project area shall be designated within a city. All or part
of a small walkable community may be included in the Sustainable
Communities Investment Area.
(c)
(3) Sites that have land use approvals, covenants,
conditions and restrictions, or other effective controls restricting
the sites to clean energy manufacturing, and that are consistent with
the use, designation, density, building intensity, and applicable
policies specified for the Sustainable Communities Investment Area in
the applicable sustainable communities strategy, if those sites are
within the geographic boundaries of a metropolitan planning
organization. Clean energy manufacturing shall consist of the
manufacturing of any of the following:
(1)
(A) Components, parts, or materials for the generation
of renewable energy resources.
(2)
(B) Equipment designed to make buildings more energy
efficient or the component parts thereof.
(3)
(C) Public transit vehicles or the component parts
thereof.
(4)
(D) Alternative fuel vehicles or the component parts
thereof.
(b) Notwithstanding subdivision (a), a Sustainable Communities
Investment Authority shall not include land subject to a contract
pursuant to the Williamson Act or more than two acres of prime
farmland, farmland of statewide importance, unique farmland, or
farmland of local importance, as defined pursuant to United States
Department of Agriculture land inventory and monitoring criteria, as
modified for California.
CHAPTER 4. SUSTAINABLE COMMUNITIES INVESTMENT PLAN
34191.26. A Sustainable Communities Investment Plan may include a
provision for the receipt of tax increment funds according to
Section 33670, provided that the local government with land use
jurisdiction has adopted all of the following:
(a) A sustainable parking standards ordinance that restricts
parking in transit priority project areas to encourage transit use to
the greatest extent feasible.
(b) An ordinance creating a jobs plan that requires all entities
receiving financial support from the authority to enter into an
agreement with the authority describing how the project will do both
of the following:
(1) Further construction careers that pay prevailing wages and
create living wage permanent jobs.
(2) Implement a program for community outreach, local hire, and
job training that includes disadvantaged California residents,
including veterans of the Iraq and Afghanistan wars, people with a
history in the criminal justice system, and single-parent families.
(c) For transit priority project areas and small walkable
communities within a metropolitan planning organization, a plan
consistent with the use designation, density, building intensity, and
applicable policies specified for the Sustainable Communities
Investment Area in the sustainable communities strategy.
(d) Within small walkable communities outside a metropolitan
planning organization, a plan for new residential construction that
provides a density of at least 20 dwelling units per net acre and,
for nonresidential uses, provides a minimum floor area ratio of 0.75.
(e) An ordinance that does both of the following:
(1) Prohibits the number of housing units occupied by extremely
low, very low, and low-income households, including the number of
bedrooms in those units, in the Sustainable Communities Investment
Area at the time the Sustainable Communities Investment Authority is
established from being reduced during the effective period of the
Sustainable Communities Investment Plan.
(2) Requires the replacement of dwelling units that house
extremely low, very low, or low-income households, upon their removal
from the Sustainable Communities Investment Area, pursuant to
subdivision (a) of Section 33413 within two years of their
displacement.
34191.27. (a) Upon adoption of a Sustainable Communities
Investment Plan that includes the tax increment financing provision
authorized by Section 34191.26, the county auditor-controller shall
allocate tax increment revenue to the authority as follows:
(1) If the authority was formed pursuant to paragraph (1) of
subdivision (e) of Section 34191.20, the authority shall be allocated
each year specified in the plan that portion of the levied taxes for
each city, county, city and county, and special district that is a
party to the joint powers authority in excess of the amount specified
in subdivision (a) of Section 33670.
(2) If the authority was formed pursuant to paragraph (2) or (3)
of subdivision (e) of Section 34191.20, the authority shall be
allocated each year specified in the plan that portion of the levied
taxes for the city and the county in excess of the amount specified
in subdivision (a) of Section 33670.
(3) If the authority was formed pursuant to paragraph (4) of
subdivision (e) of Section 34191.20, the authority shall be allocated
each year specified in the plan that portion of the levied taxes for
the county in excess of the amount specified in subdivision (a) of
Section 33670.
(4) If the authority was formed pursuant to paragraph (5) of
subdivision (e) of Section 34191.20, the authority shall be allocated
each year specified in the plan that portion of the levied taxes for
the city in excess of the amount specified in subdivision (a) of
Section 33670.
(5) Any city, county, city and county, or special district may, by
resolution of its board, authorize the county auditor-controller to
allocate that portion of the levied taxes for that entity in excess
of the amount specified in subdivision (a) of Section 33670.
(6) Any allocation of revenues to the authority made pursuant to
this subdivision shall be adjusted to comply with the
provisions of subdivision (h) of Section 34191.20.
(7) Proceeds of taxes levied for a school district that are in
excess of the amount specified in subdivision (a) of Section 33670
shall not be pledged or allocated to an authority created by any of
the governance structures specified in subdivision (e) of Section
34191.20.
(8) Notwithstanding any other law, the county auditor-controller
shall allocate to the authority a taxing agency's portion of tax
increment revenues only if the governing body of the taxing agency
adopts a resolution authorizing the allocation. A taxing agency that
adopts a resolution shall not revoke the county auditor-controller's
authority pursuant to this section if revocation would impair the
authority's ability to honor existing obligations secured by tax
increment revenues.
(b) If a Sustainable Communities Investment Area includes, in
whole or in part, land formerly or currently designated as a part of
a redevelopment project area, as defined in Section 33320.1, any
Sustainable Communities Investment Plan adopted pursuant to this part
that includes a provision for the receipt of tax increment revenues
according to Section 33670 shall include a provision that tax
increment amounts collected and received by an authority are subject
and subordinate to any preexisting enforceable obligation, as that
term is defined in Section 34171.
(c) The legislative body of the city or county forming an
authority may choose to dedicate any portion of its net available
revenue to the authority through the Sustainable Communities
Investment Plan. The plan shall state that net available revenue from
the city or county may be used by the authority in accordance with
this part, and state the maximum portion of the net available revenue
to be committed to the authority for each year during which the
authority will receive these revenues. The portion may vary over
time. The plan shall state the date upon which the authority will
cease to receive net available revenue. The city or county may direct
the county auditor-controller to transfer any portion of the net
available revenue to the authority and the county auditor-controller
may collect administrative costs from the authority.
(d) For purposes of this section, "net available revenue" means
periodic distributions to the city or county from the Redevelopment
Property Tax Trust Fund, created pursuant to Section 34170.5, 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). Net
available revenue shall include only revenue remaining after all
current distributions, including, but not limited to, payment of
enforceable obligations, all distributions to other taxing entities,
and applicable administrative fees, have been made.
(e) In accordance with Section 33334.2 and all other applicable
affordable housing provisions of the Community Redevelopment Law
(Part 1 (commencing with Section 33000)) that are not expressly
excluded pursuant to Section 34191.20 , an authority that
includes in its Sustainable Communities Investment Plan a provision
for the receipt of tax increment revenues according to Section 33670
shall dedicate no less than 25 percent of allocated tax increment
revenues for affordable housing purposes.
34191.28. A Sustainable Communities Investment Plan, in addition
to the applicable requirements of Part 1 (commencing with Section
33000) shall include all of the following:
(a) A fiscal analysis setting forth the projected receipt of tax
increment and other revenue and projected expenses over five-year
planning horizons for the life of the authority.
(b) A statement of the principal goals and objectives of the plan
together with findings of the public purposes and uses that will be
achieved.
(c) A statement of how the plan will relieve blight as follows:
(1) How it will implement the goals of a sustainable communities
strategy, if the Sustainable Communities Investment Area is within a
metropolitan planning organization.
(2) How it will contribute to more efficient transportation.
(3) How it will contribute to a reduced cost for the combined
costs of housing and transportation for California residents.
(4) How it will contribute to improved public health.
(5) How it will promote more efficient water consumption.
(6) How it will avoid loss of prime farmland.
(7) How it will reduce air pollution, energy consumption, and
greenhouse gas emissions by reducing vehicle miles traveled.
(8) How it will reduce energy consumption by facilitating clean
energy manufacturing.
(9) How it will ensure compliance with the affordable housing
maintenance and preservation requirements contained in subdivision
(e) of Section 34191.26.
(d) A statement of how the plan will implement the sustainable
parking standards adopted pursuant to subdivision (a) of Section
34191.26.
(e) A statement of how the plan will implement the jobs plan
adopted pursuant to subdivision (b) of Section 34191.26.
(f) In addition to satisfying the applicable
requirements of Part 1 (commencing with Section 33000), a Sustainable
Communities Investment Plan may include, to the extent applicable to
the area, any of the following:
(1) Farmworker housing.
(2) Transitional and supportive housing including, but not limited
to, former foster youth, persons with mental health treatment needs,
persons with substance use disorder treatment needs, and various
offender populations.
(3) Health and safety related infrastructure investments for
disadvantaged and rural communities.
(4) Infrastructure investments to support
countywide services including, but not limited to, health clinics,
hospitals, medical provider offices, child care facilities, day
reporting centers, and grocery stores in food desert areas.
(g) If a city, county, city and county, or special district that
has entered into an agreement pursuant to this part to allocate a
portion of its tax increment to a Sustainable Communities Investment
Authority subsequently declares a fiscal emergency, that city,
county, or city and county, or special district shall develop a plan
for how the county auditor-controller shall reduce the amount of the
tax increment revenue allocated to the authority during the period of
time of the fiscal emergency.
34191.29. A state or local public pension fund system authorized
by state law or local charter, respectively, including, but not
limited to, the Public Employees' Retirement System, the State
Teachers' Retirement System, a system established under the County
Employees Retirement Law of 1937 (Chapter 3 (commencing with Section
31450) of Part 3 of Division 4 of Title 3 of the Government Code), or
an independent system, may invest capital in the public
infrastructure projects and private commercial and residential
developments undertaken by an authority.
34191.30. (a) An authority may exercise the full powers granted
under Chapter 2.8 (commencing with Section 53395) of Part 1 of
Division 2 of Title 5 of the Government Code and the Marks-Roos Local
Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584)
of Chapter 5 of Division 7 of Title 1 of the Government Code).
(b) An authority may implement a local transactions and use tax
under Part 1.6 (commencing with Section 7251) of Division 2 of the
Revenue and Taxation Code, except that the resolution authorizing the
tax may designate the use of the proceeds of the tax.
(c) An authority may issue bonds paid for with authority proceeds,
which shall be deemed to be special funds to be expended by the
authority for the purposes of carrying out this part.
(d) School district property tax revenues shall not be pledged for
the repayment of bonds issued by the authority.
34191.31. (a) Every five years the authority shall contract for
an independent financial and performance audit. The audit shall be
conducted according to guidelines established by the Controller. A
copy of the completed audit shall be provided to the Controller, the
Director of the Department of Finance, and to the Joint Legislative
Budget Committee. The Controller shall not be required to review and
approve the completed audits.
(b) The guidelines established by the Controller shall include
guidelines for determining compliance with the affordable housing
maintenance and replacement requirements of subdivision (e) of
Section 34191.26, including provisions to ensure that the
requirements are met within each five-year period covered by the
audit. A finding of failure to comply with the requirements of
subdivision (e) of Section 34191.26 shall require the authority to
adopt and submit to the Controller, as part of the audit, a plan to
achieve compliance with those provisions as soon as feasible but in
not less than two years following the findings. The Controller shall
review and approve the plan, and require the plan to stay in effect
until compliance is achieved. The Controller shall ensure that the
plan includes one or more of the following means of achieving
compliance:
(1) The expenditure of an additional 10 percent of gross tax
increment revenue on increasing, preserving, and improving the supply
of low-income housing.
(2) An increase in the production, by an additional 10 percent, of
housing for very low income households as required by paragraph (2)
of subdivision (b) of Section 33413.
(3) The targeting of expenditures pursuant to Section 33334.2
exclusively to rental housing affordable to, and occupied by, persons
of very low and extremely low income.
CHAPTER 5. PREQUALIFICATION REQUIREMENTS
34191.35. All entities that will receive in excess of one million
dollars ($1,000,000) from the Sustainable Communities Investment
Authority, including projects undertaken by private developers, shall
comply with the following prequalification process for all
construction contracts or subcontracts:
(a) The entity shall require that each prospective bidder on a
construction contract complete and submit to the authority a
standardized questionnaire and financial statement in a form
specified by the authority that includes a complete statement of the
prospective bidder's financial ability and experience in performing
large construction contracts. The questionnaire and financial
statement shall be verified under oath by the bidder in the manner in
which civil pleadings in civil actions are verified. The
questionnaires and financial statements shall not be public records
and shall not be open to public inspection.
(b) The entity receiving funding from the authority shall adopt
and apply a uniform system of rating bidders on the basis of the
completed questionnaires and financial statements, in order to
determine the size of the contracts, if any, upon which each bidder
shall be deemed qualified to bid.
(c) The questionnaire described in subdivision (a) and the uniform
system of rating bidders described in subdivision (b) shall cover,
at a minimum, the issues covered by the standardized questionnaire
and model guidelines for rating bidders developed by the Department
of Industrial Relations pursuant to subdivision (a) of Section 20101
of the Public Contract Code.
(d) For purposes of this section, bidders shall include all
subcontractors performing work on a contract in excess of 3 percent
of the total cost.
(e) A bid shall not be accepted from any person or entity who is
required to submit a completed questionnaire and financial statement
for prequalification pursuant to subdivision (a) but has not done so
by the deadline set by the entity or who has not been prequalified by
the authority prior to the deadline for submission of bids.
(f) This section shall not prevent an entity or the authority
itself from establishing additional prequalification requirements.
34191.36. (a) (1) Within a Sustainable Communities Investment
Area, the Department of Industrial Relations shall monitor and
enforce compliance with prevailing wage requirements for any project
paid for in whole or part out of public funds, within the meaning of
subdivision (b) of Section 1720 of the Labor Code that include funds
of a Sustainable Communities Investment Authority and shall charge
each awarding body or developer for the reasonable and directly
related costs of monitoring and enforcing compliance with the
prevailing wage requirements on each project.
(2) All moneys received by the department pursuant to this section
shall be deposited in the State Public Works Enforcement Fund
created by Section 1771.3 of the Labor Code.
(b) Paragraph (1) of subdivision (a) shall not apply to any
project paid for in whole or part out of public funds if the awarding
body or developer has entered into a collective bargaining agreement
that binds all of the contractors performing work on the project and
includes a mechanism for resolving disputes about the payment of
wages.
SEC. 2. Section 21094.5 of the Public Resources Code is amended to
read:
21094.5. (a) (1) If an environmental impact report was certified
for a planning level decision of a city or county, the application of
this division to the approval of an infill project shall be limited
to the effects on the environment that (A) are specific to the
project or to the project site and were not addressed as significant
effects in the prior environmental impact report or (B) substantial
new information shows the effects will be more significant than
described in the prior environmental impact report. A lead agency's
determination pursuant to this section shall be supported by
substantial evidence.
(2) An effect of a project upon the environment shall not be
considered a specific effect of the project or a significant effect
that was not considered significant in a prior environmental impact
report, or an effect that is more significant than was described in
the prior environmental impact report if uniformly applicable
development policies or standards adopted by the city, county, or the
lead agency, would apply to the project and the lead agency makes a
finding, based upon substantial evidence, that the development
policies or standards will substantially mitigate that effect.
(b) If an infill project would result in significant effects that
are specific to the project or the project site, or if the
significant effects of the infill project were not addressed in the
prior environmental impact report, or are more significant than the
effects addressed in the prior environmental impact report, and if a
mitigated negative declaration or a sustainable communities
environmental assessment could not be otherwise adopted, an
environmental impact report prepared for the project analyzing those
effects shall be limited as follows:
(1) Alternative locations, densities, and building intensities to
the project need not be considered.
(2) Growth inducing impacts of the project need not be considered.
(c) This section applies to an infill project that satisfies both
of the following:
(1) The project satisfies any of the following:
(A) Is consistent with the general use designation, density,
building intensity, and applicable policies specified for the project
area in either a sustainable communities strategy or an alternative
planning strategy for which the State Air Resources Board, pursuant
to subparagraph (H) of paragraph (2) of subdivision (b) of Section
65080 of the Government Code, has accepted a metropolitan planning
organization's determination that the sustainable communities
strategy or the alternative planning strategy would, if implemented,
achieve the greenhouse gas emission reduction targets.
(B) Consists of a small walkable community project located in an
area designated by a city for that purpose.
(C) Is located within the boundaries of a metropolitan planning
organization that has not yet adopted a sustainable communities
strategy or alternative planning strategy, and the project has a
residential density of at least 20 units per net acre or a floor area
ratio of at least 0.75.
(2) Satisfies all applicable statewide performance standards
contained in the guidelines adopted pursuant to Section 21094.5.5.
(d) This section applies after the Secretary of the Natural
Resources Agency adopts and certifies the guidelines establishing
statewide standards pursuant to Section 21094.5.5.
(e) For the purposes of this section, the following terms mean the
following:
(1) "Infill project" means a project that meets the following
conditions:
(A) Consists of any one, or combination, of the following uses:
(i) Residential.
(ii) Retail or commercial, where no more than one-half of the
project area is used for parking.
(iii) A transit station.
(iv) A school.
(v) A public office building.
(B) Is located within an urban area on a site that has been
previously developed, or on a vacant site where at least 75 percent
of the perimeter of the site adjoins, or is separated only by an
improved public right-of-way from, parcels that are developed with
qualified urban uses.
(2) "Planning level decision" means the enactment or amendment of
a general plan, community plan, specific plan, or zoning code.
(3) "Prior environmental impact report" means the environmental
impact report certified for a planning level decision, as
supplemented by any subsequent or supplemental environmental impact
reports, negative declarations, or addenda to those documents.
(4) "Small walkable community project" means a project that is
located in a small walkable community project area. A small walkable
community project area means an area within an incorporated city that
is not within the boundary of a metropolitan planning organization
and meets all of the following requirements:
(A) Has a project area of approximately one-quarter mile diameter
of contiguous land completely within the existing incorporated
boundaries of the city.
(B) Has a project area that includes a residential area adjacent
to a retail downtown area.
(C) The project area has an average net density of at least eight
dwelling units per net acre or a floor area ratio for retail or
commercial use of not less than 0.50. For purposes of this
subparagraph: (i) "floor area ratio" means the ratio of gross
building area (GBA) of development, exclusive of structured parking
areas, proposed for the project divided by the total net lot area
(NLA); (ii) "gross building area" means the sum of all finished areas
of all floors of a building included within the outside faces of its
exterior walls; and (iii) "net lot area" means the area of a lot
excluding publicly dedicated land, private streets that meet local
standards, and other public use areas as determined by the local land
use authority.
(5) "Urban area" includes either an incorporated city or an
unincorporated area that is completely surrounded by one or more
incorporated cities that meets both of the following criteria:
(A) The population of the unincorporated area and the population
of the surrounding incorporated cities equal a population of 100,000
or more.
(B) The population density of the unincorporated area is equal to,
or greater than, the population density of the surrounding cities.
