BILL NUMBER: SB 1156	AMENDED
	BILL TEXT

	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) 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 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.
   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) 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 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.
   (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 "Sustainable
Communities Investment Authority" means the entity formed under
Chapter 2 (commencing with Section 34191.10). That entity shall be
regarded as an "agency" pursuant to Section 33003.
      CHAPTER 2.  SUSTAINABLE COMMUNITIES INVESTMENT AUTHORITY


   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   area: 
    (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  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) 
    (B)  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) 
    (C)  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
plan for a 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 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. The 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 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 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 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 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:
   (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.
   (2) A sustainable parking standards ordinance that restricts
parking in transit priority project areas.
   (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.
   (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 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.
   (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.

   (b) For areas referred to in paragraph (4) of subdivision (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.  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.  (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.