BILL ANALYSIS Ó
SENATE COMMITTEE ON EDUCATION
Senator Carol Liu, Chair
2015 - 2016 Regular
Bill No: AB 1260
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|Author: |Thurmond |
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|Version: |July 1, 2015 Hearing |
| |Date: July 8, 2015 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Kathleen Chavira |
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Subject: Joint Exercise of Powers Act
NOTE: This bill has been referred to the Committee on
Education and the Committee on Governance and Finance. A "do
pass" motion should include referral to the Committee on
Governance and Finance.
SUMMARY
This bill authorizes the University of California (UC) to enter
into a joint powers agreement with the City of Richmond, or an
enhanced infrastructure financing a district created by the City
of Richmond, for financing infrastructure and other improvements
within the area of the South Shoreline Specific Plan and the
Berkeley Global Campus at Richmond Bay, if the agreement
includes specified provisions benefitting the local community.
BACKGROUND
Existing law:
1)Establishes UC as a public trust and confers the full powers
of the UC upon the UC Regents. The Constitution establishes
that the UC is subject to legislative control only to the
degree necessary to ensure the security of its funds and
compliance with the terms of its endowments. Judicial
decisions have held that there are three additional areas in
which there may be limited legislative intrusion into
university operations: 1) authority over the appropriation of
state moneys; 2) exercise of the general police power to
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provide for the public health, safety and welfare; and, 3)
legislation on matters of general statewide concern not
involving internal university affairs. (Constitution of
California, Article IX, Section 9)
2)Authorizes, under the Joint Exercise of Powers Act, two or
more public agencies (i.e. federal government, any state, any
state department or agency, county, county board of education,
county superintendent of schools, city, public corporation,
public district, and regional transportation commission in any
state) to enter into a Joint Powers Authority (JPA) to jointly
exercise any power common to the contracting parties, as
specified, if authorized by their legislative or other
governing bodies. (Government Code § 6502)
3)Establishes the California Infrastructure and Economic
Development Bank (IBank) to finance public infrastructure and
private development that promote a healthy climate for jobs,
contribute to a strong economy and improve the quality of life
in California communities. IBank has broad authority to issue
tax-exempt and taxable revenue bonds, provide financing to
public agencies, provide credit enhancements, acquire or lease
facilities, and leverage State and Federal funds.
(Government Code § 63000, et seq.)
4)Defines an "enhanced infrastructure financing district" as a
legally constituted governmental entity separate and distinct
from the city or county that established it for the sole
purpose of financing public facilities or other projects,
(Government Code § 53398.50) and, upon its creation, requires
preparation and adoption of an infrastructure financing plan
consistent with the general plan of the city or county within
which the district is located. The plan is required to
include, among other things, the date on which the district
will cease to exist, by which time all tax allocation to the
district will end, and provides that the date be no more than
45 years from the date on which bond or loan issuances for
project financing are approved by a 55 percent of the voters
that reside within the district or approved by the governing
board of a local agency pursuant to specified provisions of
the Government Code. (Government Code § 53398.63)
ANALYSIS
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This bill:
1)Authorizes the University of California (UC) to enter into a
joint powers agreement with the City of Richmond, or an
enhanced infrastructure financing district created by the City
of Richmond, for financing infrastructure and other
improvements within the area of the South Shoreline Specific
Plan and the Berkeley Global Campus at Richmond Bay if the
agreement includes all the following provisions:
a) Creation of an Anti-Displacement Fund allocated
for construction of affordable housing.
b) Vocational training programs for residents of the
City of Richmond.
c) A policy that wages paid on the Richmond Global
Campus be at least 30 percent above the minimum wage.
d) An agreement with the Contra Costa Building and
Construction Trades Council to provide for compensation and
working conditions of employees engaged in construction of
the Richmond Global Campus.
e) An agreement that all Richmond Global Campus jobs
comparable to jobs performed at the UC Berkeley campus will
be employed under the same terms and conditions as UC
Berkeley employment.
f) Creation of a Youth Opportunity and Education
fund.
g) A policy providing preferential procurement
opportunities for small businesses located in the City of
Richmond.
h) Provisions for local hire requirements.
2)Requires, if such a Joint Powers Authority (JPA) is formed, that:
a) The area of the South Shoreline Specific Plan and
the Berkeley Global Campus be deemed a disadvantaged
community for purposes of the Greenhouse Gas Reduction Fund
Investment Plan and Communities Revitalization Act.
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b) The date on which the financing district created
by the JPA ceases to exist, and all tax allocations end, be
no more than 55 years, (rather than 45 years as required
under current law) from the date that bond or loan
issuances for project financing are approved by the local
agency governing board.
3)Requires that a loan issued to the City of Richmond or the
enhanced financing district by the California Infrastructure
and Economic Development Bank (IBank) be interest free.
STAFF COMMENTS
1)Need for the bill. This bill is focused on two development
projects under consideration, the South Shoreline Specific
Area and the Berkeley Global Campus at Richmond Bay.
According to the author, the goal of the bill is to ensure
that the City of Richmond and UC Berkeley work together on the
two projects keeping the Richmond community's best interest as
a center point for collaboration.
2)Is this bill necessary? This bill authorizes the City of
Richmond and the University of California (UC) to enter into a
JPA, as specified. Current law already authorizes two or more
public agencies to enter into a JPA. According to the UC, UC
Berkeley is already working with the City of Richmond and the
local community through the Richmond Community Partnership
Working Group to ensure the project meets the needs of the
campus and the local community. The committee may wish to
clarify what this bill accomplishes that is not already being
negotiated at the local level.
3)Unintended consequences? This bill, among other things, would
statutorily establish the elements of a JPA between a city and
the UC. The UC reports that the proposed campus is many years
from potential groundbreaking. According to the UC the
Working Group is jointly developing actionable recommendations
for this project relative to education, employment,
procurement and workforce training in Richmond. It is unclear
whether the provisions of this bill are consistent with the
recommendations expected to emerge from the yearlong efforts
of the Working Group. Would these provisions undermine the
willingness of the UC to enter into a JPA with the City of
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Richmond and the ultimate success of this project?
4)Double-referral. This bill authorizes an enhanced infrastructure
financing district to be created by the City of Richmond and
deems it to be a "disadvantaged community" for the purposes of
accessing specified funds. It also requires that any loans
made to the district by the IBank carry a zero percent
interest rate. This bill has been double-referred to the
Senate Committee on Governance and Finance which has
jurisdiction over state and local government revenue
mechanisms, and can more appropriately consider these
provisions.
SUPPORT
None received.
OPPOSITION
Air Conditioning Trade Association
Associated Builders and Contractors of California
Associated Builders and Contractors of California - San Diego
Chapter
Plumbing-Hearing-Cooling Contractors Association of California
University of California
Western Electrical Contractors Association
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