BILL NUMBER: SB 310 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 25, 2011
AMENDED IN SENATE MARCH 24, 2011
INTRODUCED BY Senator Hancock
FEBRUARY 14, 2011
An act to amend Sections 53395.3, 53395.6, 53395.7, 53395.14,
53395.19, 53395.20, 53396, 53397.1, and 53397.2 of, to add Article 9
(commencing with Section 65470) to Chapter 3 of Division 1 of Title 7
to of , and to repeal Sections
53395.21, 53395.22, 53395.23, 53395.24, 53395.25, 53397.4, 53397.5,
53397.6, and 53397.7 of, the Government Code, relating to local
development.
LEGISLATIVE COUNSEL'S DIGEST
SB 310, as amended, Hancock. Local development.
(1) Existing law authorizes the legislative body of a city or
county to adopt an infrastructure financing plan, which is required
to contain specified information, for the purpose of financing
certain infrastructure facilities, if specified procedural
requirements are met, and requires the legislative body, if it adopts
the plan, to submit the proposal to the voters. Existing law
authorizes the legislative body to create an infrastructure financing
district, by ordinance, if 2/3 of the qualified electors of the
proposed district vote in favor of adoption of the plan, and also
authorizes the legislative body to initiate proceedings to issue
bonds to finance the infrastructure facilities if 2/3 of those
electors vote in favor of the issuance. Existing law authorizes
infrastructure finance districts to finance specified projects,
including financing certain infrastructure facilities.
This bill would eliminate the requirement of voter approval and
authorize the legislative body to create the district, adopt the
plan, and issue the bonds by resolutions.
This bill would, in addition, authorize a district to reimburse a
developer that meets specified requirements for permit expenses or
expenses related to the construction of affordable housing units.
This bill would also require that an infrastructure finance
financing plan also include a plan to finance
any potential costs for reimbursing a developer that meets specified
requirements for permit expenses.
(2) The Transit Village Development Planning Act of 1994
authorizes a city or county to create a transit village plan for a
transit village development district that addresses specified
characteristics. In order to increase transit ridership and to reduce
vehicle traffic on the highways, the act encourages local, regional,
and state plans to direct new development close to transit stations
and provide financial incentives to implement these plans.
This bill would establish the Transit Priority Project Program,
and authorize a city or county to participate in the program by
adopting an ordinance indicating its intent to participate in the
program. The bill would require a city or county that elects to
participate in the program to adopt streamlined permitting
procedures for development projects that meet specified requirements
and provide specified zoning variances. The bill would provide that a
development project that takes advantage of the streamlined
permitting procedures developed pursuant to the program is exempt
from specified requirements amend its general plan,
and community plan, if the city or county has one, to authorize
participating developers to build at an increased height of a minimum
of 3 stories . This bill would also provide that if a
development project takes advantage of the streamlined
permitting procedures and is located entirely within
a an Infrastructure Finance District,
then the district may reimburse the developer of a project
for any permit expenses incurred or to offset additional expenses
incurred by the developer in constructing affordable housing units
pay for specified fees relating to the development,
and may reimburse a developer for the cost of constructing housing
units affordable to low- or moderate-income persons and families
.
This bill would also make various conforming changes.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 53395.3 of the Government Code is amended to
read:
53395.3. (a) A district may finance (1) the purchase,
construction, expansion, improvement, seismic retrofit, or
rehabilitation of any real or other tangible property with an
estimated useful life of 15 years or longer that satisfies the
requirements of subdivision (b), (2) may finance planning and design
work that is directly related to the purchase, construction,
expansion, or rehabilitation of that property , and (3)
the costs described in Sections 53395.5 , and
53396.5. A district may only finance the purchase of facilities for
which construction has been completed, as determined by the
legislative body. The facilities need not be physically located
within the boundaries of the district. A district may not finance
routine maintenance, repair work, or the costs of ongoing operation
or providing services of any kind.
(b) The district shall finance only public capital facilities of
communitywide significance, which provide significant benefits to an
area larger than the area of the district, including, but not limited
to, all of the following:
(1) Highways, interchanges, ramps and bridges, arterial streets,
parking facilities, and transit facilities.
(2) Sewage treatment and water reclamation plants and interceptor
pipes.
(3) Facilities for the collection and treatment of water for urban
uses.
(4) Flood control levees and dams, retention basins, and drainage
channels.
(5) Child care facilities.
(6) Libraries.
(7) Parks, recreational facilities, and open space.
(8) Facilities for the transfer and disposal of solid waste,
including transfer stations and vehicles.
(c) Any district that constructs dwelling units shall set aside
not less than 20 percent of those units to increase and improve the
community's supply of low- and moderate-income housing available at
an affordable housing cost, as defined by Section 50052.5 of the
Health and Safety Code, to persons and families of low- and
moderate-income, as defined in Section 50093 of the Health and Safety
Code.
(d) Notwithstanding subdivision (b), a district may reimburse a
developer of a project that is both located entirely within the
boundaries of that district and qualifies for the streamlined permit
procedures established pursuant to Article 9 (commencing with Section
65470) of Chapter 3 of Division 1 of Title 7, for any permit
expenses incurred pursuant to that program or to offset additional
expenses incurred by the developer in constructing affordable housing
units.
SEC. 2. Section 53395.6 of the Government Code is amended to read:
53395.6. Any action or proceeding to attack, review, set aside,
void, or annul the creation of a district, adoption of an
infrastructure financing plan, including a division of taxes
thereunder, shall be commenced within 30 days after the date the
legislative body adopted the resolution adopting the infrastructure
finance financing plan pursuant to
Section 53395.20. Consistent with the time limitations of this
section, an action or proceeding with respect to a division of taxes
under this chapter may be brought pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure, except that Section 869 of the Code of Civil Procedure
shall not apply.
SEC. 3. Section 53395.7 of the Government Code is amended to read:
53395.7. An action to determine the validity of the issuance of
bonds pursuant to this chapter may be brought pursuant to Chapter 9
(commencing with Section 860) of Title 10 of Part 2 of the Code of
Civil Procedure. However, notwithstanding the time limits specified
in Section 860 of the Code of Civil Procedure, the action shall be
commenced within 30 days after the date the legislative body adopted
the resolution authorizing the issuance of the bonds pursuant to
Section 53397.1, if the action is brought by an interested person
pursuant to Section 863 of the Code of Civil Procedure. Any appeal
from a judgment in that action or proceeding shall be commenced
within 30 days after entry of judgment.
SEC. 4. Section 53395.14 of the Government Code is amended to
read:
53395.14. After receipt of a copy of the resolution of intention
to establish a district, the official designated pursuant to Section
53395.13 shall prepare a proposed infrastructure financing plan. The
infrastructure financing plan shall be consistent with the general
plan of the city that the district is located in and shall include
all of the following:
(a) A map and legal description of the proposed district, which
may include all or a portion of the district designated by the
legislative body in its resolution of intention.
(b) A description of the public facilities required to serve the
development proposed in the area of the district including those to
be provided by the private sector, those to be provided by
governmental entities without assistance under this chapter, those
public improvements and facilities to be financed with assistance
from the proposed district, and those to be provided jointly. The
description shall include the proposed location, timing, and costs of
the public improvements and facilities.
(c) A finding that the public facilities are of communitywide
significance and provide significant benefits to an area larger than
the area of the district.
(d) A financing section, that shall contain all of the following
information:
(1) A specification of the maximum portion of the incremental tax
revenue of the city and of each affected taxing entity proposed to be
committed to the district for each year that the district will
receive incremental tax revenue. The portion need not be the same for
all affected taxing entities. The portion may change over time.
(2) A projection of the amount of tax revenues expected to be
received by the district in each year that the district will receive
tax revenues, including an estimate of the amount of tax revenues
attributable to each affected taxing entity for each year.
(3) A plan for financing the public facilities to be assisted by
the district, including a detailed description of any intention to
incur debt.
(4) A limit on the total number of dollars of taxes that may be
allocated to the district pursuant to the plan.
(5) A date that the district will cease to exist, by that time all
tax allocation to the district will end. The date shall not be more
than 30 40 years from the date the
legislative body adopted the resolution adopting the infrastructure
finance financing plan pursuant to
Section 53395.20.
(6) An analysis of the costs to the city of providing facilities
and services to the area of the 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 city as a result of expected
development in the area of the district.
(7) An analysis of the projected fiscal impact of the district and
the associated development upon each affected taxing entity.
(8) A plan for financing any potential costs that may be incurred
by reimbursing a developer of a project that is both located entirely
within the boundaries of that district and qualifies for the
streamlined permit procedures established pursuant to Article 9
(commencing with Section 65470) of Chapter 3 of Division 1 of Title
7, for any permit expenses incurred pursuant to that program.
(e) If any dwelling units occupied by persons or families of low
or moderate income are proposed to be removed or destroyed in the
course of private development or public works construction within the
area of the district, a plan providing for replacement of those
units and relocation of those persons or families consistent with the
requirements of Section 53395.5.
SEC. 5. Section 53395.19 of the Government Code is amended to
read:
53395.19. (a) The legislative body shall not enact a resolution
forming a district and providing for the division of taxes of any
affected taxing entity pursuant to Article 3 (commencing with Section
53396) 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 Article 3 (commencing
with Section 53396) 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 the
legislative body from amending its infrastructure financing plan and
adopting a resolution forming the infrastructure financing district
without allocation of the tax revenues of any affected taxing entity
that has not approved the infrastructure financing plan by resolution
of the governing body of the affected taxing entity.
SEC. 6. Section 53395.20 of the Government Code is amended to
read:
53395.20. At the conclusion of the hearing required by Section
53395.17, the legislative body may adopt a resolution adopting the
infrastructure financing plan, as modified, and approving the
formation of the infrastructure financing district in a manner
consistent with Section 53395.19, or it may abandon the proceedings.
SEC. 7. Section 53395.21 of the Government Code is repealed.
SEC. 8. Section 53395.22 of the Government Code is repealed.
SEC. 9. Section 53395.23 of the Government Code is repealed.
SEC. 10. Section 53395.24 of the Government Code is repealed.
SEC. 11. Section 53395.25 of the Government Code is repealed.
SEC. 12. Section 53396 of the Government Code is amended to read:
53396. Any infrastructure financing plan may contain a provision
that taxes, if any, levied upon taxable property in the area included
within the infrastructure financing district each year by or for the
benefit of the State of California, or any affected taxing entity
after the effective date of the resolution adopted pursuant to
Section 53395.20 to create the district, shall be divided as follows:
(a) That portion of the taxes which 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 53395.20 to create the
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.
(b) That portion of the levied taxes each year specified in the
adopted infrastructure financing plan for the city and each affected
taxing entity which has agreed to participate pursuant to Section
53395.19 in excess of the amount specified in subdivision (a) shall
be allocated to, and when collected shall be paid into a special fund
of, the district for all lawful purposes of the 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 subdivision (a), all of the taxes levied and collected upon the
taxable property in the district shall be paid to the respective
affected taxing entities. When the district ceases to exist pursuant
to the adopted infrastructure financing plan, all moneys thereafter
received from taxes upon the taxable property in the district shall
be paid to the respective affected taxing entities as taxes on all
other property are paid.
SEC. 13. Section 53397.1 of the Government Code is amended to
read:
53397.1. The legislative body may, by majority vote, authorize
the issuance of bonds pursuant to this chapter by adopting a
resolution.
SEC. 14. Section 53397.2 of the Government Code is amended to
read:
53397.2. The resolution adopted pursuant to Section 53397.1 shall
contain all of the following information:
(a) A description of the facilities to be financed with the
proceeds of the bond issue.
(b) The estimated cost of the facilities, 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 date the bonds will bear.
(h) The denomination of the bonds.
(i) The form of the bonds.
(j) The manner and execution of the bonds.
(k) The medium of payment in which the bonds are payable.
(l) The place or manner of payment and any requirements for
registration of the bonds.
(m) The terms or call of redemption, with or without premium.
SEC. 15. Section 53397.4 of the Government Code is repealed.
SEC. 16. Section 53397.5 of the Government Code is repealed.
SEC. 17. Section 53397.6 of the Government Code is repealed.
SEC. 18. Section 53397.7 of the Government Code is repealed.
SEC. 19. Article 9 (commencing with Section 65470) is added to
Chapter 3 of Division 1 of Title 7 of the Government Code, to read:
Article 9. Transit Priority Project Program
65470. (a) It is the intent of the Legislature to provide a
process for cities and counties to create development patterns in the
form of transit priority projects that comply with Chapter 4.2
(commencing with Section 21155) of Division 13 of the Public
Resources Code, create good jobs, reduce vehicle miles traveled,
expand the availability of accessibl e open-space,
build the density needed for transit viability, and meet regional
housing targets.
(b) A city or county may participate in the Transit Priority
Project Program by adopting an ordinance indicating its intent to
participate in the program.
(c) If a city or county elects to participate in the program by
adopting the ordinance described in subdivision (b), the city or
county shall do all of the following:
(1) Adopt streamlined permitting procedures for development
projects that meet all of the requirements of subdivision (c).
(2) Allow developers
to construct one additional story for each story permitted to be
constructed in adherence to the city's zoning laws as a matter of
right for buildings within residential and mixed-use zones within the
portion of a transit priority project in which the program is
applicable. amend the general plan and community plan,
if the city or county has one, to authorize participating developers
to build at an increased height of a minimum of three stories.
(d) A development project shall be eligible for the
streamlined permitting procedures required pursuant to paragraph (1)
of subdivision (b) if the development project meets
meet all of the following requirements:
(1) Is located in a designated transit priority project and within
one-half of one mile of a transit station, pursuant to Section 21155
of the Public Resources Code.
(2) Is located within a zone in which buildings of three stories
or more are authorized.
(3) Meets State Air Resources Board land use guidelines with
respect to distance from major emitters.
(4) Is built in compliance with the requirements for Gold
certification standard under the USGBC LEED
United States Green Building Council Leadership in Energy and
Environmental Design (USGBC LEED) program or the
requirements of Standard 189.1 of the American Society of Heating,
Refrigerating and Air Conditioning Engineers (ASHRAE) .
(5) Provides onsite bicycle parking.
(6) Provides for car sharing if a car sharing program is available
in the city or county. The car sharing area may be onsite, or the
developer may pay a fee to the city or county to cover the cost of
providing for car sharing at an offsite location near the project.
The developer shall provide one car share for the first 20 units and
one car share for every 50 units thereafter.
(7) Rents Provides unbundled parking. For
purposes of this paragraph, "unbundled parking" means ren
ting a parking space for the residential units separately
from the residential units, or pays a fee to the appropriate local
transit management fund to cover one-half of the cost of providing a
parking space.
(8) Provides to all units transit passes for 10 years as part of
the rent or condo fees if transit passes are available from local
providers.
(9) Provides to tenants recycling for bottles, cans, paper, and
plastic containers.
(10) Provides open space onsite, including, but not limited to,
accessible roof gardens, or pays a fee into a fund established for
local open space. The fee shall not exceed 10 cents ($0.10) per
square foot.
(11) Provides 20 percent affordable units in rental or owner
occupied housing for low- or moderate-income persons and
families , or pays a fee in an amount equivalent to the cost to
provide an affordable unit affordable units
elsewhere within the city's or county's jurisdiction, as
determined by the city or county. The developer shall require,
by covenants or restrictions, that the housing units built pursuant
to this paragraph shall remain available at affordable housing cost
to, and occupied by, persons and families of low- or moderate-income
households for the longest feasible time, but for not less than 55
years for rental units and 45 years for owner-occupied units.
(12) Pays prevailing wages to construction workers for residential
projects over 100 units pursuant to Sections 1770, 1773, and
1773.1 of the Labor Code .
(13) Meets the standards for expedited review under paragraph (2)
of subdivision (a) of Section 65950.
(e) The following shall be applicable to a development project
that is eligible for the streamlined permitting procedures required
pursuant to paragraph (1) of subdivision (c):
(1) The project may be eligible for the exemption provided for in
Section 21155.1 of the Public Resources Code.
(2)
(1) The project shall only be subject to local
design review of the building exterior and shall comply
with any local design guidelines that were adopted prior to the
submission of the project application.
(3)
(2) If the project is located entirely within the
boundaries of an Infrastructure Finance District created pursuant to
Chapter 2.8 (commencing with Section 53395) of Part 1 of Division 2
of Title 5, the district may reimburse the developer for any
permit expenses incurred pursuant to this article pay
for any fees charged pursuant to Section 65104 .
(f) Design review for a development project that takes advantage
of the streamlined permitting procedures required pursuant to
paragraph (1) of subdivision (c) shall be completed by a
participating city or county within 90 days of plan submittal. The
design review recommendation shall be forwarded directly to the
governing body of the city or county.
(3) If the project is located entirely within the boundaries of an
infrastructure finance district created pursuant to Chapter 2.8
(commencing with Section 53395) of Part 1 of Division 2 of Title 5,
the district may reimburse developers for the cost of constructing
housing units that are affordable to low- or moderate-income persons
and families of.
(f) This article shall not apply to a city or county that has
adopted language in its charter or by ordinance or resolution that
does either of the following:
(1) Prohibits the payment of prevailing wages for public works.
(2) Prohibits a contractor, subcontractor, material supplier,
carrier, or other person or firm engaged in the construction,
rehabilitation, alteration, conversion, extension, maintenance,
repair, or improvement of public works, from executing or otherwise
becoming a party to any prehire, collective bargaining, or similar
agreement entered into with one or more labor organizations,
employees, or employee representatives that establishes the terms and
conditions of employment on a construction project.