Bill Text: CA SB1156 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Sustainable Communities Investment Authority.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2012-09-29 - In Senate. Consideration of Governor's veto pending. [SB1156 Detail]

Download: California-2011-SB1156-Amended.html

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BILL NUMBER: SB 1156	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 13, 2012
	AMENDED IN ASSEMBLY  JUNE 27, 2012
	AMENDED IN ASSEMBLY  JUNE 20, 2012
	AMENDED IN SENATE  MAY 29, 2012
	AMENDED IN SENATE  MAY 25, 2012
	AMENDED IN SENATE  APRIL 30, 2012
	AMENDED IN SENATE  MARCH 29, 2012

INTRODUCED BY   Senator Steinberg

                        FEBRUARY 22, 2012

   An act to add Part 1.86 (commencing with Section  34191.1)
  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 1156, 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
requires that the successor agency, among other things, wind down the
affairs of the former redevelopment agency and dispose of assets and
properties of the former redevelopment agency, as directed by an
oversight board. 
   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  the legislative bodies of the
city and county   certain public entities  of a
 sustainable communities investment area  
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  plan  
Sustainable Communities Investment Plan  for a 
sustainable communities investment area  Sustainable
Communities Investment Area  and authorize the authority to
include in that plan a provision for the receipt of tax increment
funds provided that  specified   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
 construction contracts   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  34191.1)
  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


    34191.1.   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  , permanent
 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. 
    34191.2.   34191.15.   For purposes of
this part, "authority" or "Sustainable Communities Investment
Authority" means the entity formed under Chapter 2 (commencing with
Section  34191.10)   34191.20)  .
      CHAPTER 2.  SUSTAINABLE COMMUNITIES INVESTMENT AUTHORITY


    34191.10.   34191.20.   (a) A
Sustainable Communities Investment Authority  is a public body,
corporate and politic, that  may be  formed and
  created by the appointment of a governing board as
provided in subdivision (d). The authority  shall comply with
the provisions of  this part,  the Community Redevelopment
Law (Part  1.8   1  (commencing with
Section 33000))  and   , Part 1.5 (commencing
with Section 34000), Part 1.6 (commencing with Section 34050, and
Part 1.7 (commencing with Section 34100), to the extent not
inconsistent with  this part.  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  , except that a determination shall
not be required to be made regarding blight within the sustainable
communities investment area, and an action shall not be required to
be taken for the elimination of blight in connection with the
creation of a plan for a sustainable communities investment area
 .    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 formed pursuant to this part shall adopt a plan
for a sustainable communities investment area pursuant to this
section.  
   (d) A sustainable communities investment plan shall terminate on a
specified date not to exceed 30 years from the date of the first
issuance of bond indebtedness by the authority.  
   (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.  
   (e) 
    (d) An authority may be  formed  
created  as follows: 
   (1) A sustainable communities investment area within an
incorporated area may be formed in any of the following ways:
 
   (A) The legislative bodies of the city and county representing the
geographic territory of a sustainable communities investment area
may form a Sustainable Communities Investment Authority pursuant to
this part by entering into a joint powers authority under Chapter 5
(commencing with Section 6500) of Title 1 of the Government Code to
establish the parameters of the proposed economic development within
a proposed sustainable communities investment area. 

   (B) A legislative body of a city may form the governing board and
establish the parameters of the proposed economic development within
a proposed sustainable communities investment area provided the
economic development parameters are approved by the county. 

   (C) A city and county may appoint a governing board for a
sustainable communities investment area comprised of three members
appointed by the city with geographic jurisdiction and two appointed
by the county with geographic jurisdiction.  
   (D) If a sustainable communities investment area consists of a
single project and 100 percent of tax increment revenue is invested
in the project, then a legislative body of a city may appoint a
governing board, subject to county approval of the designation of the
sustainable communities investment area.  
   (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.  
   (2) 
    (4)  If the  sustainable communities investment
area   Sustainable Communities Investment Area  is
within an unincorporated area, the  Sustainable Communities
Investment Authority may be formed by the  board of
supervisors of a county  or city and 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.
 
   (e) 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.  
   (f) Any city or county approval under this section shall be by
resolution of the legislative body.  
   (g) A taxing agency participating in or approving the formation of
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.  
   (b) 
    (h)  A governing board  formed  
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  only
 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), and the Political Reform Act of 1974 (Title
9 (commencing with Section 81000) of the Government Code). 
      CHAPTER 3.  SUSTAINABLE COMMUNITIES INVESTMENT AREAS


    34191.15.   34191.25.    A
sustainable communities investment area shall   (a)
    A Sustainable Communities Investment Area shall
 include only the following: 
   (a) For areas within the geographic boundaries of a metropolitan
planning organization where 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 greenhouse gas emission reduction targets: 
   (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 
 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. 
   (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.  
   (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 (d) of Section 34191.20.  
   (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. 
   (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. 
   (b) 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
  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) Components, parts, or materials for the generation of
renewable energy resources.
   (2) Equipment designed to make buildings more energy efficient or
the component parts thereof.
   (3) Public transit vehicles or the component parts thereof.
   (4) Alternative fuel vehicles or the component parts thereof.
      CHAPTER  4.    SUSTAINABLE COMMUNITIES INVESTMENT
PLAN 


    34191.16.   34191.26.   (a) A 
plan for a sustainable communities investment area adopted pursuant
to Section 34191.15   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:
   (1) A sustainable parking standards ordinance that restricts
parking in transit priority project areas to encourage transit use to
the greatest extent feasible. 
   (2) An ordinance creating a jobs plan. All entities receiving
financial support from the authority shall, at a minimum, require
that any and all agreements approved by the authority include a jobs
plan, which shall describe how the project will further create
construction careers that pay prevailing wages, living wage permanent
jobs, and a create program for community outreach, local hire, and
job training. This plan shall also describe the project developer's
commitment to offer jobs to disadvantaged California residents,
including veterans of the Iraq and Afghanistan wars, people with a
history in the criminal justice system, and single-parent families.
 
   (2) 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:  
   (A) Further construction careers that pay prevailing wages and
create living wage permanent jobs.  
   (B) 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.

   (3) 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   Sustainable
Communities Investment Area  in the sustainable communities
strategy  and that, for new residential construction,
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
 .
   (4) 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.

   (b) For areas referred to in paragraph (4) of subdivision (a), the
authority shall  obtain   consult with 
the metropolitan planning  organization's concurrence that
  organization to obtain its opinion whether  the
plan is consistent with the use designation, density, building
intensity, and applicable policies for the project area in the
sustainable communities strategy. 
   (c) For purposes of Section 16 of Article XVI of the California
Constitution and in the event a tax increment financing provision is
included pursuant to subdivision (a), the terms "district" and
"affected taxing entity" shall exclude a school district and special
districts.  
   34191.27.  (a) Upon adoption of a Sustainable Communities
Investment Plan that includes the tax increment financing provision
authorized by subdivision (a) of Section 34191.26, the assessor shall
allocate tax increment revenue to the authority as follows:
   (1) If the authority was formed pursuant to paragraph (1) of
subdivision (d) 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 (d) 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 (d) 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 (d) 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 assessor 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 (g) of Section 34191.20.
   (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, which shall be no later than
the date specified pursuant to subdivision (d) of Section 34191.10.
   (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.  
   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 a more efficient transportation
infrastructure.
   (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 reducting vehicle miles traveled.
   (d) A statement of how the plan will implement the sustainable
parking standards adopted pursuant to paragraph (1) of subdivision
(a) of Section 34191.26.
   (e) A statement of how the plan will implement the jobs plan
adopted pursuant to paragraph (2) of subdivision (a) of Section
34191.26.
   (f) A Sustainable Communities Investment Plan may include, to the
extent applicable to the area, any of the following:
   (1) Affordable and 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. 
    34191.18.   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.
    34191.19.   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. 
   34191.31.  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. 
      CHAPTER  4.   5.   PREQUALIFICATION
REQUIREMENTS


    34191.20.   34191.35.   All 
construction contracts   entities that will receive
 in excess of one million dollars ($1,000,000)  on
projects that will receive more than 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  authority   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 
public works   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  authority  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.
    34191.21.   34191.36.   (a) (1)
 The   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 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.