Amended in Assembly June 9, 2016

Amended in Senate April 6, 2015

Senate Bill No. 441

Introduced by Senator begin delete Leno end delete begin insert Wolk end insert

February 25, 2015

An act to add Section begin delete 34177.7 to the Health and Safety Code, relating to redevelopment. end delete begin insert 6254.33 to the Government Code, relating to public records. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 441, as amended, begin delete Leno end delete   begin insert Wolk end insert . begin delete San Francisco redevelopment: housing. end delete begin insert California Public Records Act: end insert begin insert exemptions. end insert

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(1) The California Public Records Act requires that public records be open to inspection at all times during the office hours of a public agency, defined as any state or local agency, and that every person has a right to inspect any public record, except as specifically provided. The act further requires that a reasonably segregable portion of a public record be available for inspection by any person requesting the public record after deletion of the portions that are exempted by law.

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This bill would prohibit disclosure of any identification number, alphanumeric character, or other unique identifying code used by a public agency to identify a vendor or contractor, or an affiliate of a vendor or contractor.

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(2) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

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This bill would make legislative findings to that effect.

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(3) The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

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This bill would make legislative findings to that effect.

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(4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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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 as of February 1, 2012, and provides for the designation of successor agencies that are required to wind down the affairs of the dissolved redevelopment agencies and to, among other things, make payments due for enforceable obligations. Existing law prohibits dissolved redevelopment agencies from issuing bonds or incurring other indebtedness on or after June 29, 2011. Existing law authorizes successor agencies to, among other things, issue bonds or incur indebtedness after that date to refund the bonds or indebtedness of a former redevelopment agency or to finance debt service spikes, as specified. The issuance of bonds or incurrence of other indebtedness by a successor agency is subject to the approval of the oversight board of the successor agency.

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This bill would authorize the successor agency to the Redevelopment Agency of the City and County of San Francisco to issue bonds or incur other indebtedness to finance the construction of affordable housing and infrastructure required by specified enforceable obligations, subject to the approval of the oversight board. The bill would provide that bonds or other indebtedness authorized by its provisions would be considered indebtedness incurred by the dissolved redevelopment agency, would be listed on the Recognized Obligation Payment Schedule, and would be secured by a pledge of moneys deposited into the Redevelopment Property Tax Trust Fund. The bill would authorize the successor agency to require affected taxing entities to make certain determinations as to the related subordination of revenues, and would thereby impose a state-mandated local program. The bill would also require the successor agency to make diligent efforts to obtain the lowest long-term cost financing and to make use of an independent financial advisor in developing financing proposals.

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This bill would make legislative findings and declarations as to the necessity of a special statute for the City and County of San Francisco.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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begin insert Section 6254.33 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

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begin insert 6254.33. end insert   

Any identification number, alphanumeric character,
or other unique identifying code used by a public agency to identify
a vendor or contractor, or an affiliate of a vendor or contractor,
is confidential and shall not be disclosed pursuant to this chapter
or any other state law.

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begin insert SEC. 2. end insert   

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The Legislature finds and declares that Section 1 of
this act, which adds Section 6254.33 to the Government Code,
imposes a limitation on the public’s right of access to the meetings
of public bodies or the writings of public officials and agencies
within the meaning of Section 3 of Article I of the California
Constitution. Pursuant to that constitutional provision, the
Legislature makes the following findings to demonstrate the interest
protected by this limitation and the need for protecting that
interest:

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This act balances the right of the public to access relevant
information about contractors, vendors, and their affiliates hired
by public agencies while preventing the misuse of identification
information employed by those agencies that could be used to
defraud public agencies.

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begin insert SEC. 3. end insert   

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The Legislature finds and declares that Section 1 of
this act, which adds Section 6254.33 to the Government Code,
furthers, within the meaning of paragraph (7) of subdivision (b)
of Section 3 of Article I of the California Constitution, the purposes
of that constitutional section as it relates to the right of public
access to the meetings of local public bodies or the writings of
local public officials and local agencies. Pursuant to paragraph
(7) of subdivision (b) of Section 3 of Article I of the California
Constitution, the Legislature makes the following findings:

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This act balances the right of the public to access relevant
information about contractors, vendors, and their affiliates hired
by local agencies while preventing the misuse of identification
information employed by those local agencies that may be used to
defraud those local agencies.

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begin insert SEC. 4. end insert   

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No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district under this act would result from a legislative mandate that
is within the scope of paragraph (7) of subdivision (b) of Section
3 of Article I of the California Constitution.

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SECTION 1.  

The Legislature hereby finds and declares all of
the following:

(a) The Department of Finance has provided written
confirmation to the successor agency to the Redevelopment Agency
of the City and County of San Francisco (successor agency) that
the following projects are finally and conclusively approved as
enforceable obligations:

(1) The Mission Bay North Owner Participation Agreement.

(2) The Mission Bay South Owner Participation Agreement.

(3) The Disposition and Development Agreement for Hunters
Point Shipyard Phase 1.

(4) The Candlestick Point-Hunters Point Shipyard Phase 2
Disposition and Development Agreement.

(5) The Transbay Implementation Agreement.

(b) The enforceable obligations described in subdivision (a)
require the successor agency to fund and develop affordable
housing, including 1,200 units in Transbay, 1,445 units in Mission
Bay North and Mission Bay South, and 1,358 units in Candlestick
Point-Hunters Point Shipyard Phases 1 and 2. In addition, the
successor agency is required to fund and develop public
infrastructure in the Transbay Redevelopment Project Area
pursuant to the Transbay Implementation Agreement, which is
necessary to improve the area surrounding the Transbay Transit
Center.

(c) Due to insufficient property tax revenues in the
Redevelopment Property Tax Trust Fund, of the total number of
affordable housing units that the successor agency is obligated to
fund and develop under the enforceable obligations described in
subdivision (a), the successor agency has been able to finance the
construction of only 642 units. Additionally, the successor agency
has not been able to fulfill its public infrastructure obligation under
the Transbay Implementation Agreement.

(d) The successor agency can more expeditiously construct the
3,361 additional units of required affordable housing and the
necessary infrastructure improvements if it is able to issue bonds
or incur other indebtedness secured by property tax revenues
available in the Redevelopment Property Tax Trust Fund to finance
these obligations.

(e) It is the intent of the Legislature to authorize the successor
agency to issue bonds or incur other indebtedness for the purpose
of financing the construction of affordable housing and
infrastructure required under the enforceable obligations described
in subdivision (a). These bonds or other indebtedness may be
secured by property tax revenues available in the successor
agency’s Redevelopment Property Tax Trust Fund from those
project areas that generated tax increment for the Redevelopment
Agency of the City and County of San Francisco upon its
dissolution, if the revenues are not otherwise obligated.

(f) Authorizing the successor agency to issue bonds or incur
other indebtedness to finance the enforceable obligations described
in subdivision (a) will financially benefit the affected taxing
entities, insofar as it will ensure that funds which would otherwise
flow to those entities as “residual” payments pursuant to paragraph
(4) of subdivision (a) of Section 34183 of the Health and Safety
Code will not be redirected to fund these enforceable obligations.
Instead, the enforceable obligations will be funded with the
proceeds of the bonds or debt issuances.

(g) The housing situation in the City and County of San
Francisco is unique, in that median rents and sales prices are among
the highest in the state. Because of this, the City and County of
San Francisco is currently facing an affordable housing crisis.

SEC. 2.  

Section 34177.7 is added to the Health and Safety
Code, to read:

34177.7.  

(a) (1) In addition to the powers granted to each
successor agency, and notwithstanding any other provision of this
division, including, but not limited to, Sections 34162 and 34189,
the successor agency to the Redevelopment Agency of the City
and County of San Francisco may issue bonds or incur other
indebtedness to finance all of the following:

(A) The affordable housing requirements of the following
enforceable obligations:

(i) The Mission Bay North Owner Participation Agreement.

(ii) The Mission Bay South Owner Participation Agreement.

(iii) The Disposition and Development Agreement for Hunters
Point Shipyard Phase 1.

(iv) The Candlestick Point-Hunters Point Shipyard Phase 2
Disposition and Development Agreement.

(v) The Transbay Implementation Agreement.

(B) The infrastructure requirements of the Transbay
Implementation Agreement.

(2) The successor agency to the Redevelopment Agency of the
City and County of San Francisco may pledge to the bonds or other
indebtedness incurred pursuant to this section any property tax
revenues available in the Redevelopment Property Tax Trust Fund
that are not otherwise obligated.

(b) Bonds issued pursuant to this section may be sold at either
a negotiated or a competitive sale. The bonds issued or other
indebtedness incurred pursuant to this section may be issued or
incurred on a parity basis with outstanding bonds or other
indebtedness obligations of the successor agency to the
Redevelopment Agency of the City and County of San Francisco,
and the successor agency may pledge the revenues pledged to those
outstanding bonds or other indebtedness obligations to the issuance
of bonds or other indebtedness incurred pursuant to this section.
The pledge, when made in connection with the issuance of bonds
or other indebtedness obligations under this section, shall have the
same lien priority as the pledge of outstanding bonds or other
indebtedness, and shall be valid, binding, and enforceable in
accordance with its terms.

(c) (1) Prior to incurring any bonds or other indebtedness
pursuant to this section, the successor agency to the Redevelopment
Agency of the City and County of San Francisco may subordinate
to the bonds or other indebtedness the amount required to be paid
to an affected taxing entity pursuant to paragraph (1) of subdivision
(a) of Section 34183, provided that the affected taxing entity has
approved the subordinations pursuant to this subdivision.

(2) At the time the successor agency requests an affected taxing
entity to subordinate the amount to be paid to it, the successor
agency shall provide the affected taxing entity with substantial
evidence that sufficient funds will be available to pay both the debt
service on the bonds or other indebtedness and the payments
required by paragraph (1) of subdivision (a) of Section 34183,
when due.

(3) Within 45 days after receipt of the agency’s request, the
affected taxing entity shall approve or disapprove the request for
subordination. An affected taxing entity may disapprove a request
for subordination only if it finds, based upon substantial evidence,
that the successor agency will not be able to pay the debt service
payments and the amount required to be paid to the affected taxing
entity. If the affected taxing entity does not act within 45 days after
receipt of the agency’s request, the request to subordinate shall be
deemed approved and shall be final and conclusive.

(d) An action may be brought pursuant to Chapter 9
(commencing with Section 860) of Title 10 of Part 2 of the Code
of Civil Procedure to determine the validity of bonds or other
obligations authorized by this section, the pledge of revenues to
those bonds or other obligations authorized by this section, the
legality and validity of all proceedings theretofore taken and, as
provided in the resolution of the legislative body of the successor
agency to the Redevelopment Agency of the City and County of
San Francisco authorizing the bonds or other obligations authorized
by this section, proposed to be taken for the authorization,
execution, issuance, sale, and delivery of the bonds or other
obligations authorized by this section, and for the payment of debt
service on the bonds or the payment of amounts under other
obligations authorized by this section. Subdivision (c) of Section
33501 does not apply to any such action. The Department of
Finance shall be notified of the filing of any action as an affected
party.

(e) Notwithstanding any other law, including, but not limited
to, Section 33501, an action to challenge the issuance of bonds or
the incurrence of indebtedness by the successor agency to the
Redevelopment Agency of the City and County of San Francisco
shall be brought within 30 days after the date on which the
oversight board approves the resolution of the successor agency
approving the issuance of bonds or the incurrence of indebtedness
authorized under this section.

(f) The actions authorized in this section shall be subject to the
approval of the oversight board, as provided in Section 34180.
Additionally, an oversight board may direct the successor agency
to the Redevelopment Agency of the City and County of San
Francisco to commence any of the transactions described in
subdivision (a) so long as the successor agency is able to recover
its related costs in connection with the transaction. After a
successor agency, with approval of the oversight board, issues any
bonds, incurs any indebtedness, or executes an amended
enforceable obligation pursuant to subdivision (a), the oversight
board shall not unilaterally approve any amendments to or early
termination of the bonds, indebtedness, or enforceable obligation.
If, under the authority granted to it by subdivision (h) of Section
34179, the Department of Finance either reviews and approves or
fails to request review within five business days of an oversight
board approval of an action authorized by this section, the
scheduled payments on the bonds or other indebtedness shall be
listed in the Recognized Obligation Payment Schedule and shall
not be subject to further review and approval by the department
or the Controller. The department may extend its review time to
60 days for actions authorized in this section and may seek the
assistance of the Treasurer in evaluating proposed actions under
this section.

(g) Any bonds, indebtedness, or amended enforceable obligation
authorized by this section shall be considered indebtedness incurred
by the dissolved redevelopment agency, with the same legal effect
as if the bonds, indebtedness, financing agreement, or amended
enforceable obligation had been issued, incurred, or entered into
prior to June 29, 2011, in full conformity with the applicable
provisions of the Community Redevelopment Law that existed
prior to that date, shall be included in the successor agency to the
Redevelopment Agency of the City and County of San Francisco’s
Recognized Obligation Payment Schedule, and shall be secured
by a pledge of, and lien on, and shall be repaid from moneys
deposited from time to time in the Redevelopment Property Tax
Trust Fund established pursuant to subdivision (c) of Section
34172, as provided in paragraph (2) of subdivision (a) of Section
34183. Property tax revenues pledged to any bonds, indebtedness,
or amended enforceable obligations authorized by this section are
taxes allocated to the successor agency pursuant to subdivision (b)
of Section 33670 and Section 16 of Article XVI of the California
Constitution.

(h) The successor agency to the Redevelopment Agency of the
City and County of San Francisco shall make diligent efforts to
ensure that the lowest long-term cost financing is obtained. The
financing shall not provide for any bullets or spikes and shall not
use variable rates. The successor agency shall make use of an
independent financial advisor in developing financing proposals
and shall make the work products of the financial advisor available
to the Department of Finance at its request.

SEC. 3.  

The Legislature finds and declares that a special law
is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because of the unique circumstances relating to
affordable housing in the City and County of San Francisco in
conjunction with the affordable housing and infrastructure
requirements of the enforceable obligations specified in this act.

SEC. 4.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district are the result of a program for which legislative authority
was requested by that local agency or school district, within the
meaning of Section 17556 of the Government Code and Section
6 of Article XIII B of the California Constitution.

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