BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 310|
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                              UNFINISHED BUSINESS


          Bill No:  SB 310
          Author:   Hancock (D)
          Amended:  8/29/11
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  6-3, 4/27/11
          AYES:  Wolk, DeSaulnier, Hancock, Hernandez, Kehoe, Liu
          NOES:  Huff, Fuller, La Malfa

           SENATE FLOOR  :  22-17, 5/19/11
          AYES:  Alquist, Calderon, Corbett, De León, DeSaulnier, 
            Evans, Hancock, Kehoe, Leno, Lieu, Liu, Lowenthal, 
            Padilla, Pavley, Price, Rubio, Simitian, Steinberg, 
            Vargas, Wolk, Wright, Yee
          NOES:  Anderson, Berryhill, Blakeslee, Cannella, Correa, 
            Dutton, Emmerson, Fuller, Gaines, Harman, Huff, La Malfa, 
            Negrete McLeod, Runner, Strickland, Walters, Wyland
          NO VOTE RECORDED:  Hernandez

           ASSEMBLY FLOOR  :  49-27, 09/08/11 - See last page for vote


           SUBJECT  :    Local development

           SOURCE  :     Author


           DIGEST  :    This bill allows cities and counties to create 
          incentives for transit priority projects.

           Assembly Amendments  (1) delete all provisions related to 
          the formation of an infrastructure financing district 
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          (IFD), how an IFD issues bonds and how an IFD functions, 
          (2) clarify that a city may only participate in Transit 
          Priority Project Program (TPPP) if it forms an IFD, and (3) 
          remove the requirement standards for expedited review to be 
          eligible for TPPP funding.

           ANALYSIS  :    Existing law: 

          1. Requires the regional transportation plan for specified 
             regions to include a sustainable communities strategy 
             (SCS), as specified, designed to achieve certain goals 
             for the reduction of greenhouse gas (GHG) emissions from 
             automobiles and light trucks in a region. 

          2. Provides that an SCS must: 

             A.    Identify the general location of uses, residential 
                densities, and building intensities within the 
                region; 

             B.    Identify areas within the region sufficient to 
                house all the population of the region, including all 
                economic segments of the population, over the course 
                of the planning period of the regional transportation 
                plan; 

             C.    Identify areas within the region sufficient to 
                house an eight-year projection of the regional 
                housing need for the region; 

             D.    Identify a transportation network to service the 
                transportation needs of the region; 

             E.    Gather and consider the best available scientific 
                information regarding resource areas and farmland in 
                the region; 

             F.    Set forth a forecasted development pattern for the 
                region, which, when integrated with the 
                transportation network, and other transportation 
                measures and policies, will reduce GHG emissions from 
                automobiles and light trucks to achieve, if there is 
                a feasible way to do so; and, 


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             G.    Quantify the reduction in GHG emissions projected 
                to be achieved by the SCS and, if the SCS does not 
                achieve the targeted reductions in GHG emissions, set 
                forth the difference between the amount that the SCS 
                would reduce GHG emissions and the target for the 
                region. 

          3. Requires a transit priority project to:  (A) contain at 
             least 50 percent residential use, based on total 
             building square footage and, if the project contains 
             between 26 percent and 50 percent nonresidential uses, a 
             floor area ratio of not less than 0.75; (B) provide a 
             minimum net density of at least 20 dwelling units per 
             acre; and, (C) be within one-half mile of a major 
             transit stop or high-quality transit corridor included 
             in a regional transportation plan. 

          4. Defines "major transit stop" as a site containing an 
             existing rail transit station, a ferry terminal served 
             by either a bus or rail transit service, or the 
             intersection of two or more major bus routes with a 
             frequency of service interval of 15 minutes or less 
             during the morning and afternoon peak commute periods. 

          5. Authorizes cities and counties to create IFDs and issue 
             bonds to pay for community scale public works:  
             highways, transit, water systems, sewer projects, flood 
             control, child care facilities, libraries, parks, and 
             solid waste facilities. 

          6. Allows an IFD to divert property tax increment revenues 
             from other local governments, excluding school 
             districts, for up to 30 years, in order to pay back 
             bonds issued by the IFD. 

          7. Requires any IFD that constructs dwelling units to 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 to persons and families of low- and 
             moderate-income.

          This bill: 


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          1. States that 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 the implementation of a SCS, 
             create jobs, reduce vehicle miles traveled, expand the 
             availability of accessible open-space, build the density 
             needed for transit viability, and meet regional housing 
             targets. 

          2. Establishes the TPPP. 

          3. Authorizes a city or county to participate in TPPP by 
             adopting an ordinance indicating its intent to 
             participate in the program and by forming and IFD. 

          4. Requires a city or county, if it elects to participate 
             in TPPP, to amend, if necessary, the general plan and 
             any related specific plan to allow participating 
             developers to build at an increased height of a minimum 
             of three stories within the boundaries of the IFD. 

          5. Requires a TPPP development project to meet all of the 
             following: 

             A.    Is located in a designated transit priority 
                project and within one-half of one mile of a transit 
                station consistent with the implementation of an SCS; 


             B.    Is located within a zone in which buildings of 
                three stories or more are authorized; 

             C.    Meets State Air Resources Board land use 
                guidelines with respect to distance from major 
                emitters; 

             D.    Provides onsite bicycle parking; 

             E.    Provides for car sharing if a car sharing program 
                is available in the city or county; 

             F.    Provides unbundled parking; 

             G.    Provides to all units transit passes for 10 years 

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                as part of the rent or condo fees if transit passes 
                are available from local providers; 

             H.    Provides to tenants recycling for bottles, cans, 
                paper, and plastic containers; 

             I.    Provides open space onsite, including, but not 
                limited to, accessible roof gardens, or pays a fee 
                into a fund established for local open space; 

             J.    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 affordable units 
                elsewhere within the city's or county's jurisdiction, 
                as determined by the city or county.  Built units 
                require an affordability covenant of 55 years for 
                rental units and 45 years for owner occupied units; 
                and, 

             K.    Pays prevailing wages to construction workers for 
                residential projects over 100 units. 

          6. Requires a development project that meets the criteria 
             for a TPPP to comply with any local design guidelines 
             that were adopted prior to the submission of the project 
             application. 

          7. Provides that an IFD may reimburse a developer for any 
             permit costs or costs associated with the construction 
             of the affordable housing units in a TPPP. 

          8. Specifies for the car sharing program 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 is required to provide one car share for 
             the first 20 units and one car share for every 50 units 
             thereafter. 

          9. Defines "unbundled parking" as renting 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 

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             cost of providing a parking space. 

          10.Prohibits the fee a developer could pay in lieu of 
             providing space from exceeding $0.10 per square foot. 

          11.Authorizes an IFD to reimburse a developer of a project 
             that is both located entirely within the boundaries of 
             that IFD for any permit expenses incurred pursuant to 
             that TPPP or to offset additional expenses incurred by 
             the developer in constructing affordable housing units. 

          12.Prohibits a city or county from participating in a TPPP 
             if it:  (A) prohibits paying prevailing wages for public 
             works; or, (B) prohibits contractors and others from 
             prehire collective bargaining or similar agreements with 
             labor organizations regarding employment terms and 
             conditions on construction projects.

           Comments
           
          California has a goal of reducing GHG emissions (AB 32 
          ÝNuñez and Pavley], Chapter 488, Statutes of 2006).  
          Reducing vehicle emissions involves multiple strategies, 
          including clean technology as well as reducing the amount 
          of vehicle miles traveled.  Among the ways to reduce 
          vehicle miles is better coordination of transportation and 
          land use plans and increasing the density in existing areas 
          and new development projects.  To those ends, the 
          Legislature linked transportation planning and land use 
          planning by state, regional, and local agencies.  
          Metropolitan planning organizations and their constituent 
          counties and cities are preparing sustainable communities 
          strategies.  Among the incentives to implement those 
          policies is the opportunity for developers to gain 
          accelerated approval for projects that promote those goals 
          (SB 375 ÝSteinberg], Chapter 728, Statutes of 2008).

          Building better communities in the new century requires 
          intense collaboration among willing developers, local 
          leaders, and supportive neighbors.  The statewide goals 
          launched by AB 32 (Nuñez and Pavley, 2006) need to be 
          translated into well-designed and economically feasible 
          development projects in downtowns, older suburbs, and new 
          development.  SB 375 (Steinberg, 2008) pointed the way to 

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          this future by linking transportation and land use planning 
          programs.  SB 375 contained incentives for developers who 
          want to build projects that fit state, regional, and local 
          growth policies.  This bill encourages builders with 
          projects that meet these goals by allowing local officials 
          to use funds from infrastructure financing districts to pay 
          for the developer's processing fees and the costs of 
          affordable housing.  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT  :   (Verified  9/8/11)

          American Federation of State, County and Municipal 
          Employees, AFL-CIO
          California Infill Builders Association (if amended)
          Metropolitan Transportation Commission
          Natural Resources Defense Council 
          Paratransit, Inc.
          San Francisco Bay Area Rapid Transit District 
          Santa Clara Valley Transportation Authority
          State Building and Construction Trades Council of 
          California
          TransForm

           OPPOSITION  :    (Verified  9/8/11)

          Associated Builders and Contractors of California
          Coalition for San Francisco Neighborhoods

           ARGUMENTS IN SUPPORT  :    Supporters argue that this bill 
          creates a more flexible development tool to finance needed 
          affordable housing and transit-oriented development 
          projects.  Given the "opt-in" nature of IFDs tax increment 
          financing, more local governments will have a voice in if 
          their growth in property tax is allocated, a luxury 
          currently not provided to them under redevelopment law.

          Paratransit, Inc. states "this bill will help California to 
          achieve its land use and air quality goals as part of SB 
          375 and AB 32, will encourage transit ridership, and will 
          enhance cooperation between cities, counties, developers, 
          and transit."

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           ARGUMENTS IN OPPOSITION  :    Associated Builders and 
          Contractors of California (ABC California) states, "SB 310 
          requires that to qualify for the economic subsidies offered 
          by this bill, a builder must propose a project that meets 
          more than a dozen conditions, from car sharing to 
          prevailing wages for transit village residences.  
          Currently, contractors are required to pay state-mandated 
          construction wage rates ('prevailing wages') to workers 
          engaged in various occupations allegedly related to public 
          works construction.  The definition of public works has 
          been expanded in recent years to include numerous kinds of 
          privately built projects that are obviously not government 
          projects for public use.  ABC California also opposes SB 
          310's proposed new Government Code 65470 (d)(11) that 
          mandates all contractors must pay 'prevailing wages to 
          construction workers for residential projects over 100 
          units pursuant to Sections 1770, 1773, and 1773.1 of the 
          Labor Code.'"  
           

           ASSEMBLY FLOOR  :  49-27, 09/08/11
          AYES:  Alejo, Allen, Ammiano, Atkins, Beall, Block, 
            Blumenfield, Bonilla, Bradford, Brownley, Butler, Campos, 
            Cedillo, Chesbro, Davis, Dickinson, Eng, Feuer, Fong, 
            Fuentes, Furutani, Galgiani, Gatto, Gordon, Hall, 
            Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, 
            Lara, Bonnie Lowenthal, Ma, Mendoza, Mitchell, Monning, 
            Pan, Perea, V. Manuel Pérez, Portantino, Skinner, 
            Solorio, Swanson, Torres, Wieckowski, Williams, Yamada, 
            John A. Pérez
          NOES:  Achadjian, Bill Berryhill, Conway, Cook, Donnelly, 
            Fletcher, Beth Gaines, Garrick, Grove, Hagman, Halderman, 
            Harkey, Jeffries, Jones, Knight, Logue, Mansoor, Miller, 
            Morrell, Nestande, Nielsen, Norby, Olsen, Silva, Smyth, 
            Valadao, Wagner
          NO VOTE RECORDED:  Buchanan, Charles Calderon, Carter, 
            Gorell


          AGB:kc  9/9/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE


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