BILL NUMBER: SB 1156 AMENDED
BILL TEXT
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) 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. Community Development and
Housing Joint Powers Authority. 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 of a sustainable communities investment area, as described, to
form after July 1, 2012, a Sustainable Communities Investment
Authority (authority) to carry out the Community Redevelopment Law,
as amended, to increase, improve, and preserve the community's supply
of low- and -moderate-income housing available at affordable housing
cost. The bill would specify the process by which the governing body
of an authority may be formed. The bill would authorize the
authority to adopt a plan for a sustainable communities investment
area and to include in that plan a provision for the receipt of tax
increment funds provided that specified requirements are met.
The bill would establish prequalification requirements for
construction contracts 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.
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.
This bill would authorize the legislative body of the city and
county representing the geographic territory covering the area served
by a former redevelopment agency to elect to form a Community
Development and Housing Joint Powers Authority (authority) after July
1, 2012, and to carry out the provisions of the Community
Redevelopment Law. The bill would authorize the authority to adopt a
redevelopment plan for a project area covering specified areas and
sites and to include a provision in the plan to provide for tax
increment financing, provided that certain mitigation and land use
plans have been adopted. The bill would retain the Low and Moderate
Income Housing Fund of a former redevelopment agency in another fund
and authorize the authority to enter into agreements to facilitate
articulated career technical education pathways.
Vote: majority. Appropriation: no 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) is added to
Division 24 of the Health and Safety Code, to read:
PART 1.86. ECONOMIC DEVELOPMENT and HOUSING PROGRAM
CHAPTER 1. GENERAL PROVISIONS
34191.1. (a) The Legislature finds and declares that better
economic development patterns in California can contribute to greater
economic growth by 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 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 areas
requires redevelopment of existing developed areas.
(e) In addition to the economic
problems of 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.
(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.
To this end, it is the intent of the Legislature to preserve the
provisions of the Community Redevelopment Law, as it was proposed to
have been amended by Senate Bill 450 of the 2011- 12
Regular Session, to increase, improve, and preserve affordable
housing through a new economic development strategy for the state.
(h) The Legislature finds that a comprehensive strategy for the
long-term economic development of the state must encourage the
creation of 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.
34191.2. For purposes of this part, "authority" or
"Community Development and Housing Joint Powers Authority"
"Sustainable Communities Investment Authority "
means the joint exercise of powers agency formed under
Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of
the Government Code entity formed under Chapter 2
(commencing with Section 34191.10). That entity shall be
regarded as an "agency" pursuant to Section 33003 .
CHAPTER 2. COMMUNITY DEVELOPMENT AND HOUSING JOINT
POWERS SUSTAINABLE COMMUNITIES INVESTMENT AUTHORITY
34191.10. (a) The legislative bodies of the city and county
representing the geographic territory covering the area served by a
former redevelopment agency may elect to form a Community Development
and Housing Joint Powers Authority pursuant to this part after July
1, 2012, to carry out the Community Redevelopment Law (Part 1.8
(commencing with Section 33000)). If the former redevelopment agency
was formed solely by a county, the county may exercise the powers
authorized by this part.
34191.10. (a) A Sustainable Communities
Investment Authority may be formed after July 1, 2012, to carry out
the provisions of the Community Redevelopment Law (Part 1.8
(commencing with Section 33000)), as it is amended by Senate Bill ___
of the 2011-12 Regular Session, to increase, improve, and preserve
the community's supply of low- and -moderate-income housing available
at an affordable housing cost. An authority may be formed as
follows:
(1) If the sustainable communities investment area is within an
incorporated area, 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 after July 1, 2012, by entering into
a joint powers authority under Chapter 5 (commencing with Section
6500) of Title 1 of the Government Code. The governing board of the
authority may be formed by any of the following proceedings:
(A) The legislative body of the city forms the governing board and
establishes the parameters of the proposed economic development
within a proposed sustainable communities investment area provided
the economic development parameters are approved by the county.
(B) A governing board is appointed for a sustainable communities
investment area consisting of five appointees: two appointed by the
city with geographic jurisdiction, two by the county with geographic
jurisdiction, and one appointed by the affected special districts
with each district having one vote to select an appointee.
(C) The legislative body of the city appoints the governing board
and designates a sustainable communities investment area but
restricts the authority so that it may receive only the city share of
tax increment revenue.
(D) The legislative body of the city appoints the governing board
and designates a sustainable communities investment area consisting
of a single project and restricts the authority so that 100 percent
of tax increment revenue is invested in the project. Designation of
the sustainable communities investment area shall be subject to
county approval.
(2) If the sustainable communities investment area is within an
unincorporated area, the authority may be formed by the county board
of supervisors or by the board of supervisors of a city and county.
(b) The authority may enter into financial and other agreements
with community colleges, K-12 school districts, and private
businesses to facilitate the development and operation of articulated
career technical education pathways, as specified in Section 88532
of the Education Code.
CHAPTER 3. FINANCING
34191.15. An authority formed pursuant to this part may adopt a
redevelopment plan for a project
sustainable communities investment area pursuant
to this section. Notwithstanding any other provision of this
division, a determination shall not be required to be made regarding
blight within the project 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 redevelopment plan for a
project sustainable communities investment
area. The redevelopment 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. A
project sustainable communities investment area
shall include only the following areas:
(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 areas where a transit priority project, as
defined in Section 21155 of the Public Resources Code, may be
constructed, provided that if the project
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 area may include a military base reuse plan that
meets the definition of a transit priority area and it may
include a contaminated site within a transit priority area.
(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.
(b) Sites that have land use approvals, covenants, conditions and
restrictions, or other effective controls restricting the sites to
clean energy manufacturing, and sites that are
consistent with the sustainable communities strategy, if those sites
are within the geographic boundaries of a metropolitan planning
organization. Clean energy manufacturing consists of the manufacture
of components, parts, or materials for the generation of renewable
energy resources or for alternative fuel vehicles.
34191.16. (a) Solely for purposes of
Section 16 of Article XVI of the California Constitution, a
redevelopment plan for a sustainable communities
investment area adopted pursuant to Section 34191.15 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 school mitigation plan to offset losses of property tax
revenue to schools serving the project area as a result of the
imposition of a provision for the receipt of tax increment funds. The
plan may include assessment districts, provisions of covenants,
conditions and restrictions, or other mechanisms. Except as otherwise
specified, the plan shall be approved by the fiscally affected
school districts. If the plan is not approved by the school
districts, it may be submitted by the authority established under
this part to the Department of Finance for approval. The department
shall approve the plan if there is no impact on the state budget
because of the provisions of subdivision (b) of Section 8 of Article
XVI of the California Constitution or if the impacts on the state
budget are not unacceptable.
(b)
(1) An analysis of the public service costs and
revenue-generating impact of new development with respect to the
provision of basic public services, including police, fire, and
rescue services. The plan shall include a strategy for mitigating
unfunded service impacts.
(c)
(2) A sustainable parking standards ordinance that
restricts parking in transit priority project areas.
(d)
A provision requiring that 20 percent of the housing in the
project area be affordable to persons of low and moderate income.
(3) A jobs plan. All entities receiving financial support from the
authority shall incorporate into any and all agreements a jobs plan,
which shall describe how the project will create construction
careers that pay prevailing wages, living wage permanent jobs, and a
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.
(e)
(4) For transit priority 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 project
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.
(f)
(5) 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.
(g)
(b) For areas referred to in paragraph (4) of
subdivision (e) (a) , the
authority shall obtain the metropolitan planning organization's
concurrence that 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.
34191.17. The authority shall approve any bond financing under
this division.
34191.18. The Low and Moderate Income Fund shall be retained in
the Sustainable Economic Development and Housing Trust Fund for uses
authorized under Section 33334.2. If the funds are not contracted for
use within 60 months from the effective date of this section, the
balance shall be transferred to an agency designated by the Governor
for use as grants to the authority for the provision of affordable
housing to low- and moderate-income households. Any funds expended by
the authority for affordable housing from any of the granted funds
shall be credited against the 20-percent set-aside requirement under
Section 33334.2.
34191.19. 34191.18. 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.
34191.20. 34191.19. (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.
CHAPTER 4. PREQUALIFICATION
REQUIREMENTS
34191.20. All construction contracts 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:
(a) The authority shall require that each prospective bidder
complete and submit to the authority a standardized questionnaire and
financial statement in a form specified by the authority, including
a complete statement of the prospective bidder's financial ability
and experience in performing public works. 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 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 or who has not been prequalified
by the authority prior to the deadline for submission of bids.
(f) This section shall not prevent an authority from establishing
additional prequalification requirements.
34191.21. (a) (1) 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,
including 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.