BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 1260


                                                                      Page  1





          ASSEMBLY THIRD READING


          AB  
          1260 (Thurmond)


          As Amended  May 22, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                 |Noes                 |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Local           |6-2   |Gonzalez, Alejo,     |Maienschein, Waldron |
          |Government      |      |Chiu, Cooley,        |                     |
          |                |      |Gordon, Holden       |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Higher          |8-3   |Bloom, Irwin,        |Baker, Chávez,       |
          |Education       |      |Levine, Linder, Low, |Harper               |
          |                |      |Santiago, Weber,     |                     |
          |                |      |Williams             |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Appropriations  |12-5  |Gomez, Bonta,        |Bigelow, Chang,      |
          |                |      |Calderon, Daly,      |Gallagher, Jones,    |
          |                |      |Eggman, Eduardo      |Wagner               |
          |                |      |Garcia, Gordon,      |                     |
          |                |      |Holden, Quirk,       |                     |
          |                |      |Rendon, Weber, Wood  |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
           ------------------------------------------------------------------- 









                                                                      AB 1260


                                                                      Page  2






          SUMMARY:  Authorizes the University of California (UC) to enter  
          into a joint powers agreement (JPA) with the City of Richmond  
          (City), or an enhanced infrastructure financing district (EIFD)  
          created by the City for purposes of financing infrastructure for  
          the Berkeley Global Campus, if certain circumstances are met.   
          Specifically, this bill:  


          1)Allows UC to enter into a JPA with the City or an EIFD created  
            by the City, or both, for the purpose of financing  
            infrastructure and other improvements within the area of the  
            South Shoreline Specific Plan and the Berkeley Global Campus at  
            Richmond Bay if the UC and the City have entered into an  
            agreement that details all commitments made by UC relating to  
            the Berkeley Global Campus at Richmond Bay, and the agreement  
            includes, among any other provisions, the following:
             a)   The creation of an Anti-Displacement Fund allocated to the  
               construction of affordable housing;
             b)   Vocational training programs made available to residents  
               of the City;


             c)   A policy requiring that all wages paid for employment on  
               the Richmond Global Campus be at least 30% above the minimum  
               wage;


             d)   An agreement with the Contra Costa Building and  
               Construction Trades Council to provide for the compensation  
               and working conditions of employees engaged in construction  
               of the Richmond Global Campus;


             e)   An agreement that all Richmond Global Campus jobs that are  
               comparable to jobs performed at the UC Berkeley (UCB) campus  
               will be employed by the UC under the same terms and  
               conditions that govern employment at UCB;









                                                                      AB 1260


                                                                      Page  3






             f)   Creation of a Youth Opportunity and Education Fund;


             g)   A policy providing preferential procurement opportunities  
               for small businesses located in the City; and,


             h)   Provisions for local hire requirements.


          2)Provides, if the City or an EIFD created by the City, or both,  
            enter into a JPA with UC, the date on which an EIFD created by  
            the City and any other consenting taxing agencies shall cease to  
            exist, and at which time all tax allocation to the EIFD will  
            end, shall not be more than 55 years from the date on which the  
            issuance of bonds is approved, as specified, or the issuance of  
            a loan is approved by the governing board of a local agency, as  
            specified.
          3)Provides that the Legislature finds and declares that a special  
            law is necessary and that a general law cannot be made  
            applicable within the meaning of California Constitution Article  
            IV, Section 16 because of the unique circumstances of developing  
            the Berkeley Global Campus at Richmond Bay, located within the  
            City.


          EXISTING LAW allows, pursuant to the Joint Exercise of Powers Act,  
          two or more public agencies by agreement to jointly exercise any  
          power common to the contracting parties, as specified, if  
          authorized by their legislative or other governing bodies.  


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, this bill contains no state costs.  Costs to local  
          agencies to form JPAs or EIFDs are not reimbursable.


          COMMENTS:  








                                                                      AB 1260


                                                                      Page  4







          1)Bill Summary.  This bill authorizes the UC to enter into a JPA  
            with the City, or an EIFD created by the City, or both, for  
            purposes of financing infrastructure for the Berkeley Global  
            Campus, if conditions are met.


            This bill is author-sponsored.


          2)Author's Statement.  According to the author, the intent of this  
            measure is to facilitate a partnership between the City and UCB  
            with regards to the creation of a UCB Global Campus in Richmond  
            Bay.  The author states, "The current version of the bill speaks  
            to the unique situation of the Global Campus in terms of the  
            needs of the City and the ability of the UC to partner with the  
            City on infrastructure and financing.  The bill is working  
            toward providing an efficient public financing mechanism to fund  
            the shared, critical infrastructure required for development of  
            the University of California at Berkeley Global Campus and the  
            complimentary City of Richmond South Shoreline Specific Plan  
            Area."


          3)Joint Exercise of Powers Act.  JPAs have existed in California  
            for nearly 100 years, and were originally created to allow  
            multiple local governments in a region to pool resources to meet  
            common needs.  The Joint Exercise of Powers Act authorizes state  
            and local agencies to create and use a JPA, which is a legal  
            document that allows the contracting parties to exercise powers  
            that are common to all of the contracting parties.  A JPA can be  
            administered by one of the contracting agencies, or it can be  
            carried out by a new, separate public entity.  JPAs are an  
            attractive tool for local governments because they facilitate  
            more efficient service provision through collaboration, and they  
            allow local entities to issue bonds without voter ratification.   
            Current law authorizes JPAs to jointly exercise any power common  
            to the contracting parties, if authorized by their legislative  








                                                                      AB 1260


                                                                      Page  5





            or governing body.


          4)EIFDs.  Existing law authorizes a city or county to establish an  
            EIFD, adopt an infrastructure financing plan, and issue bonds  
            for which only the EIFD is liable, upon approval of 55% of the  
            voters, and to finance public capital facilities.  The EIFD must  
            create an infrastructure financing plan which includes the date  
            the EIFD will end.  


          5)Arguments in Support.  Unknown.


          6)Arguments in Opposition.  Unknown.




          Analysis Prepared by:                                               
                          Debbie Michel / L. GOV. / (916) 319-3958  FN:  
          0000529