Bill Text: CA AB930 | 2023-2024 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Local government: infrastructure financing districts: Reinvestment in Infrastructure for a Sustainable and Equitable California (RISE) districts: housing development: restrictive covenants.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-06-05 - From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L. GOV. [AB930 Detail]
Download: California-2023-AB930-Introduced.html
and 62005, and 62420, no revenues derived from the imposition of a property tax rate approved by the voters pursuant to subdivision (b) of Section 1 of Article XIII A of the California Constitution and levied in addition to the property tax rate limited by subdivision (a) of Section 1 of Article XIII A of the California Constitution shall be divided.
Bill Title: Local government: infrastructure financing districts: Reinvestment in Infrastructure for a Sustainable and Equitable California (RISE) districts: housing development: restrictive covenants.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-06-05 - From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L. GOV. [AB930 Detail]
Download: California-2023-AB930-Introduced.html
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 930
| Introduced by Assembly Member Friedman |
February 14, 2023 |
An act to amend Section 53993 of, and to add Article 16 (commencing with Section 12100.170) and Article 16.1 (commencing with Section 12100.175) to Chapter 1.6 of Part 2 of Division 3 of Title 2 of, and to add Division 7 (commencing with Section 62400) to Title 6 of, the Government Code, relating to local government.
LEGISLATIVE COUNSEL'S DIGEST
AB 930, as introduced, Friedman.
Local government: Reinvestment in Infrastructure for a Sustainable and Equitable California (RISE) districts.
Existing law authorizes certain local agencies to form a community revitalization authority within a community revitalization and investment area, as defined, and authorizes an authority to, among other things, provide for low- and moderate-income housing and issue bonds, as provided. Existing law authorizes a community revitalization and investment plan to provide for the division of taxes within the plan area.
This bill would authorize the legislative bodies of 2 or more local governments, defined to include a city, county, special district, or transit agency, to jointly form a Reinvestment in Infrastructure for a Sustainable and Equitable California district (RISE district) in accordance with specified procedures. The bill would require the Office of Planning and Research (OPR) to develop standards for the formation of RISE districts no later
than November 30, 2025. The bill would provide for the establishment of a governing board of a RISE district with representatives of each participating local government.
After the formation of a RISE district, the bill would require that district’s governing board to prepare, or cause to be prepared, and adopt a RISE development plan that includes an identification of any intended source of revenue for financing a project or projects within the boundaries of the district and an identification of any tools or authority needed to implement the RISE development plan, as provided. The bill would require the standards developed by OPR to require a RISE development plan to provide that at least 50 percent of the total funding received by the district be spent on infill supportive infrastructure, as specified, and to provide that at least 20 percent of the total number of residential units created within the district be restricted to persons and families of low or moderate
income, as specified. The bill would require the governing board to then submit the RISE development plan to OPR for review. The bill would require OPR to review the plan within 90 days and make a determination as to whether the plan complies with all applicable planning standards and other requirements under state law. The bill would deem the plan to be in effect as of the date that OPR approves the plan.
This bill would authorize a RISE district to utilize various sources of revenue for district purposes including the division of property tax revenues, local sales and use taxes, the portion of the state sales and tax revenues that flow into the General Fund that is attributable to new development within the RISE district, and transient occupancy taxes.
This bill, in order to allocate state sales tax increment funding to RISE districts, would require the Department of Tax and Fee Administration, by June 1 of each year, to
estimate the amount of additional state sales and tax revenue that flowed into the General Fund that is attributable to new development within each RISE district and notify the Controller of that amount. The bill would then require the Controller to transfer an amount, equal to the total amount estimated by the Department of Tax and Fee Administration, from the General Fund to the RISE District Sales Tax Increment Fund. The bill, upon appropriation by the Legislature, would require the Governor’s Office of Business and Economic Development to establish the RISE District Sales Tax Increment Fund and provide that all moneys in the fund be made available to the office for purposes of awarding funding to RISE districts in the amount equal to the amount estimated by the Department of Tax and Fee Administration that is attributable to new development within the RISE district.
This bill would also, upon appropriation by the Legislature, require the Governor’s Office of
Business and Economic Development to establish the RISE Revolving Loan Fund. The bill would provide that the purpose of the fund is to provide RISE districts with initial startup funding for projects contained within the RISE district’s certified RISE development plan. The bill would require the office to establish the RISE District Revolving Loan Program and would require the office to award loans to RISE districts in an amount deemed necessary to fund the initial projects of the RISE district, as provided in the district’s RISE development plan, as specified.
This bill would require a RISE district project, other than a project that receives RISE funding solely for the infrastructure that supports the project, to comply with specified wage and labor standards. The bill would require a development proponent to certify to the RISE district that certain wage and labor standards will be met, including a requirement that all construction workers be paid at least the
general prevailing rate of wages, as specified. The bill would require the Labor Commissioner to enforce the obligation to pay prevailing wages. By expanding the crime of perjury, the bill would impose a state-mandated local program.
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.
This bill would provide that no reimbursement is required by this act for a specified reason.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Article 16 (commencing with Section 12100.170) is added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, to read:Article 16. RISE Revolving Loan Fund
12100.170.
(a) “Fund” means the RISE Revolving Loan Fund.(b) “Go-Biz” means the Governor’s Office of Business and Economic Development.
(c) “Program” means the RISE District Revolving Loan Program established pursuant to Section 12100.172.
(d) “RISE District” means a RISE district established pursuant to Division 7 (commencing with Section 62400) of Title 6 that has adopted a RISE development plan certified pursuant to Section 62412.
12100.171.
(a) Upon appropriation by the Legislature, Go-Biz shall establish the RISE Revolving Loan Fund.(b) The purpose of the fund is to provide RISE districts with initial startup funding for projects contained within the RISE district’s certified RISE development plan.
(c) Moneys in the fund shall be made available to Go-Biz for purposes of awarding loans pursuant to Section 12100.172.
(d) All interest, dividends, and pecuniary gains from investments or deposits of moneys in the fund shall accrue to the fund, notwithstanding Section 16305.7 of the Government Code. There shall be paid into the fund all of the
following:
(1) Any moneys appropriated and made available by the Legislature for the purposes of the fund.
(2) Any moneys that Go-Biz receives in repayment of loans made from the fund, including any interest on loans made from the fund.
(3) Any other moneys that may be made available to the department for the purposes of this chapter from any other source.
12100.172.
(a) Upon appropriation by the Legislature, Go-Biz shall establish the RISE District Revolving Loan Program pursuant to this article.(b) Go-Biz shall award startup loans to RISE districts based on the following criteria:
(1) Go-Biz shall award loans to a RISE district in an amount deemed necessary to fund the initial projects of the RISE district, as provided in the district’s RISE development plan.
(2) Go-Biz shall review applications on a noncompetitive basis.
12100.173.
(a) Go-Biz shall establish standard terms that apply uniformly to all loans awarded pursuant to Section 12100.172, including interest rates and repayment terms.(b) Loan terms shall ensure the continued existence of RISE districts and facilitate RISE districts to establish long terms funding sources otherwise authorized by Division 7 (commencing with Section 62400) of Title 6.
(c) (1) Go-Biz shall adopt regulations as necessary or appropriate to carry out the purposes of this article.
(2) Chapter 3.5 (commencing with Section 11340) of Part 1 does not apply to any standard, criterion,
procedure, determination, rule, notice, or guideline established or issued by Go-Biz.
SEC. 2.
Article 16.1 (commencing with Section 12100.175) is added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, to read:Article 16.1. RISE District Sales Tax Increment Fund
12100.175.
(a) “Fund” means the RISE District Sales Tax Increment Fund.(b) “Go-Biz” means the Governor’s Office of Business and Economic Development.
(c) “RISE District” means a RISE district established pursuant to Division 7 (commencing with Section 62400) of Title 6 that has adopted a RISE development plan certified pursuant to Section 62412.
12100.176.
(a) Upon appropriation by the Legislature for purposes of the RISE District Revolving Loan Program established pursuant to Section 12100.172, the Go-Biz shall establish the RISE District Sale Tax Increment Fund.(b) All moneys in the fund shall be made available to Go-Biz for purposes of awarding funding to RISE districts in the amount equal to the amount estimated by the Department of Tax and Fee Administration pursuant to Section 62422 that is attributable to new development within the RISE district.
(c) (1) Go-Biz shall adopt regulations as necessary or appropriate to carry out the purposes of this article.
(2) Chapter 3.5 (commencing with Section 11340) of Part 1 does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by Go-Biz.
SEC. 3.
Section 53993 of the Government Code is amended to read:53993.
(a) Notwithstanding any other law, except as provided in subdivision (b), for the purpose of any law authorizing the division of taxes levied upon taxable property, including, but not limited to, Sections 53369.30, 53396, 53398.30, 53398.75,(b) Subdivision (a) shall not apply to the allocation of property taxes pursuant to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code.
SEC. 4.
Division 7 (commencing with Section 62400) is added to Title 6 of the Government Code, to read:DIVISION 7. Reinvestment in Infrastructure for a Sustainable and Equitable California Districts
CHAPTER 1. General Provisions
62400.
For purposes of this division:(a) “Affected taxing entity” means any governmental taxing agency which levied or had levied on its behalf a property tax on all or a portion of the property located in the proposed RISE district in the fiscal year prior to the designation of the RISE district, but not including any county office of education, school district, or community college district. An “affected taxing entity” may include a special district if the special district is providing any portion of the funding included in the RISE development plan adopted pursuant to Section 62410. For the purposes of this section, “special district” means an agency of the state formed for the performance of governmental or proprietary functions within limited geographic boundaries,
and shall not include a school district or community college district.
(b) “Governing board” means the governing board of an agency established pursuant to Section 62407.
(c) “Legislative body” means the legislative body of a participating local government.
(d) “Local government” includes, but is not limited to, a city, county, special district, or transit agency.
(e) “Office” means the Office of Planning and Research.
(f) “Participating local government” means a local government that proposes or agrees to jointly form a RISE district in accordance with this chapter or that is added as a participating local government pursuant to subdivision (d) of Section 62406.
(g) “Persons and families of low or moderate income” means the same as defined in Section 50093 of the Health and Safety Code.
(h) “Reinvestment in Infrastructure for a Sustainable and Equitable California district” or “RISE district” means a regional, joint governance district formed pursuant to this chapter by two or more local governments.
62401.
No later than November 30, 2025, the office shall develop standards for the formation of RISE districts. The standards shall comply with the following requirements:(a) The standards shall be consistent with the requirements of this division.
(b) The standards shall encourage equitable development in location-efficient areas adjacent to public transit investments, including passenger rail and frequent bus service, in order to refocus growth toward city and community centers while reducing greenhouse gas emissions, per capita vehicle miles traveled, and reinforcing community resilience.
(c) The standards shall require a RISE development
plan to comply with all of the following:
(1) The RISE development plan shall require that at least 50 percent of the total funds received by the district be spent on infill supportive infrastructure, which shall include water, sewer, energy, environmental cleanup, sidewalk, park, transit facilities, and economic development.
(2) The RISE development plan shall require that at least 20 percent of the total number of residential units created within the district be restricted to persons and families of low or moderate income with an affordable sales price or an affordable rent, as defined in Sections 50052.5 or 50053 of the Health and Safety Code, for a minimum of 55 years for rental housing and 45 years for ownership housing.
(3) The RISE development plan shall require that any remaining percentage of funding not
otherwise allocated pursuant to the standards established in the section be used for any lawful purpose that prioritizes climate infrastructure, housing, and economic development.
(4) The RISE development plan shall give first priority for occupancy of housing funded through the RISE development plan pursuant to the following:
(A) First, to income-qualified households displaced from the district through no fault of their own.
(B) Second, to households with a member or members employed within two miles of the district.
(C) Third, to households with an extended family member living within two miles of the district.
62402.
In addition to the powers granted to an enhanced infrastructure financing district pursuant to Chapter 2.99 (commencing with Section 53398.50) of Part 1 of Division 2 of Title 5, a RISE district has the power to do all of the following within the territorial jurisdiction of the district:(a) Fund the planning, acquisition, and construction of housing, infill supportive infrastructure, and any other project otherwise permitted under a RISE development plan that is certified pursuant to Section 62412.
(b) Establish and impose any of the revenue generating activities eligible to be included in a RISE development plan pursuant to Section 62410.
(c) Apply for and receive grants from federal and state agencies.
(d) Solicit and accept gifts, fees, grants, and allocations from public and private entities.
(e) Incur general obligation bonded indebtedness for the acquisition or improvement of real property or for funding or refunding of any outstanding indebtedness, subject to any applicable constitutional requirements.
(f) Receive and manage a dedicated revenue source.
(g) Deposit or invest moneys of the district in banks or financial institutions in the state in accordance with state law.
(h) Sue and be sued, except as otherwise provided by law, in all actions and proceedings, in all courts and tribunals of competent
jurisdiction.
(i) Engage counsel and other professional services.
(j) Enter into and perform all necessary contracts.
(k) Enter into joint powers agreements pursuant to the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1).
(l) Hire staff, define their qualifications and duties, and provide a schedule of compensation for the performance of their duties.
(m) Use interim or temporary staff provided by local agencies that are members of the district. A person who performs duties as interim or temporary staff shall not be considered an employee of the district.
62403.
All of the following actions shall be exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code):(1) The creation of a RISE district pursuant to this division.
(2) The acquisition or disposal of any real property by a RISE district.
CHAPTER 2. RISE District Formation and Governing Board
62405.
The legislative bodies of two or more local governments may jointly form a RISE district pursuant to this division for the purpose of planning, financing, and facilitating development around passenger rail stations and other adjacent location-efficient areas that meet state planning and performance guidelines and land use criteria.62406.
(a) The formation of a RISE district shall be by enactment of an ordinance or resolution of each participating local government, which shall each be substantially similar.(b) The ordinance or resolution of a participating local government shall include, at minimum, all of the following provisions:
(1) A statement of the purpose for which the RISE district is proposed, including any specific project that the participating local governments propose to plan, finance, or facilitate.
(2) Provision for the method by which the purpose of the RISE district will be accomplished.
(3) A description of the boundaries of the RISE district. This may be accomplished by reference to a map on file in the office of the clerk of the city or in the office of the recorder of the county, as applicable.
(4) Establishment of a governing board in accordance with Section 62407.
(c) (1) The boundaries of a RISE district may include all or any portion of the territory within the jurisdiction of the participating local governments.
(2) A RISE district may include areas which are not contiguous.
(d) After the formation of a RISE district, a local government may be added as a participating local government by enactment of an ordinance or
resolution by a majority of the current participating local governments and subsequent enactment of an ordinance or resolution by the new participating local government that complies with the requirements of this section.
62407.
(a) The governing board of a RISE district shall consist of representatives of the participating local governments, who shall serve at the pleasure of the appointing authority or authorities. The exact number of members of the governing board shall be as established in the ordinance or resolution of each participating local government adopted pursuant to Section 62406, but shall consist of at least one representative of each participating local government.(b) (1) A majority of the members of the governing board shall constitute a quorum for the purpose of transacting any business of the governing board. A recorded majority vote of the total voting membership of the governing board is required on each action.
(2) The governing board shall select from its members a chair to preside over meetings of the board and a vice chair to preside in the absence of the chair.
(c) (1) Members of the board are subject to Article 2.4 (commencing with Section 53234) of Chapter 2 of Part 1 of Division 2 of Title 5.
(2) A RISE district shall be a local public agency subject to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5) and the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1).
CHAPTER 3. RISE Development Plan
62410.
(a) After the RISE district is formed, the governing board shall prepare, or cause to be prepared, and adopt a RISE development plan, in accordance with this article, in order to meet both of the following objectives:(1) Comply with any applicable planning standards and other requirements under state law, including those standards developed by the office pursuant to Section 62401.
(2) Encourage equitable development in location-efficient areas in order to refocus growth toward infill areas while reducing greenhouse gas emissions and reinforcing community resilience.
(b) The RISE development plan shall include all
of the following:
(1) Identification of any intended source of revenue for financing a project or projects within the boundaries of the RISE district. Permissible sources of revenue may include, but are not limited to, the following:
(A) Investments of state resources, as requested by the district.
(B) The division of property tax revenues, excluding revenues dedicated to paying off the obligations of former redevelopment agencies or other obligations, and revenues dedicated to school districts, in accordance with Section 62420.
(C) Local sales and use taxes in accordance with Section 62421.
(D) The portion of the state sales and tax revenues
under the Sales and Use Tax Law (Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code) that flows into the General Fund due to RISE districts activities, as provided in Section 62422.
(E) Transient occupancy taxes imposed by a city or county in accordance with Chapter 1 (commencing with Section 7280) of Part 1.7 of Division 2 of the Revenue and Taxation Code.
(F) Tax increment bonds described in Article 5 (commencing with Section 62425).
(G) Any other revenues that may be lawfully used.
(2) Identification of any tools or authority needed to implement the RISE development plan, including, but not limited to, the following:
(A) The authority to purchase, bank, and assemble parcels of real property.
(B) A right of first refusal for real property sold within the jurisdictional boundaries of the district.
(3) A financing section that contains all of the following information:
(A) A projection of the amount of tax revenues expected to be received by the RISE district in each year during which the RISE district will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year.
(B) A plan for financing the housing or infill supportive infrastructure projects to be assisted by the RISE district, including a detailed
description of any intention to incur debt.
(C) A statement of the total number of dollars of taxes that may be allocated to the RISE district pursuant to the plan.
(D) An analysis of the costs to the city or county of providing facilities and services to the area of the RISE district while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the city or county as a result of expected development in the area of the RISE district.
(E) An analysis of the projected fiscal impact of the RISE district and the associated development upon each affected taxing entity.
(F) A passthrough provision that provides that the RISE district will, except as otherwise provided in this subparagraph, pay to each affected taxing entity an amount equivalent to the affected taxing entity equity amount. A passthrough provision shall not provide payment to the city or county that proposes to form the agency, or to any school entity, as defined pursuant to subdivision (f) of Section 95 of the Revenue and Taxation Code.
62411.
(a) The RISE district shall not enact a resolution proposing formation of the district and providing for the division of taxes of any affected taxing entity pursuant to Chapter 4 (commencing with Section 62420) unless a resolution approving the plan has been adopted by the governing body of each affected taxing entity that is proposed to be subject to division of taxes pursuant to Chapter 4 (commencing with Section 62420) and has been filed with the legislative body at or prior to the time of the hearing.(b) Nothing in this section shall be construed to prevent a RISE district from amending its RISE development plan and adopting a resolution proposing formation of the RISE district without allocation of the tax revenues of any affected
taxing entity that has not approved the RISE development plan by resolution of the governing body of the affected taxing entity.
(c) If after the date of district formation, an affected taxing entity adopts a resolution approving the RISE district plan and to participate in the division of taxes used to finance a RISE district, the division of taxes shall be based upon the last equalized assessment roll that is used for the district pursuant to paragraph (2) of subdivision (a) of Section 62420.
62412.
(a) After adopting a RISE development plan pursuant to Section 62410, the governing board shall submit that plan, along with all supporting documents, to the office for review.(b) (1) The office shall review any RISE development plan received pursuant to this section and, within 90 days of that receipt, determine, and certify in writing to the governing board, either of the following, as applicable:
(A) The RISE development plan complies with all applicable planning standards and other requirements under state law, including those standards developed by the office pursuant to Section 62401.
(B) The RISE development plan does not comply with the planning standards and requirements described in subparagraph (A). If the office finds that the RISE development plan does not comply with those standards and requirements, the office shall provide the governing board with a written identification of which portions of the plan are not in compliance.
(2) A RISE development plan shall be deemed to be in effect as of the date of the office’s approval pursuant to subparagraph (A) of paragraph (1).
CHAPTER 4. Division of Taxes
62420.
(a) Any RISE development plan may contain a provision that taxes, if any, levied upon taxable property in the area included within the RISE district each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the ordinance or resolution adopted pursuant to Section 62406 to create the district, shall be divided, subject to the provisions of Section 53993, as follows:(1) That portion of the taxes that would be produced by the rate upon which the tax is levied each year by or for each of the affected taxing entities upon the total sum of the assessed value of the taxable property in the district as shown upon the assessment roll used in connection with the taxation of the property by the affected taxing
entity, last equalized prior to the effective date of the resolution adopted pursuant to Section 62406 to create the RISE district, shall be allocated to, and when collected shall be paid to, the respective affected taxing entities as taxes by or for the affected taxing entities on all other property are paid.
(2) That portion of the levied taxes each year specified in the adopted RISE development plan for the city or county and each affected taxing entity that has agreed to participate pursuant to Section 62411 in excess of the amount specified in paragraph (1) shall be allocated to, and when collected shall be paid into a special fund of the RISE district for all lawful purposes of the RISE district. Unless and until the total assessed valuation of the taxable property in a district exceeds the total assessed value of the taxable property in the district as shown by the last equalized assessment roll referred to in paragraph (1), all of the
taxes levied and collected upon the taxable property in the RISE district shall be paid to the respective affected taxing entities. When the RISE district ceases to exist pursuant to the adopted RISE development plan, all moneys thereafter received from taxes upon the taxable property in the RISE district shall be paid to the respective affected taxing entities as taxes on all other property are paid.
(b) Notwithstanding subdivision (a), where any RISE district boundaries overlap with the boundaries of any former redevelopment project area, any debt or obligation of a district shall be subordinate to any and all enforceable obligations of the former redevelopment agency, as approved by the Oversight Board and the Department of Finance. For the purposes of this chapter, the division of taxes allocated to the RISE district pursuant to subdivision (a) shall not include any taxes required to be deposited by the county auditor-controller into the
Redevelopment Property Tax Trust Fund created pursuant to subdivision (b) of Section 34170.5 of the Health and Safety Code.
(c) (1) The legislative body of the city or county forming the RISE district may choose to dedicate any portion of its net available revenue to the RISE district through the RISE development plan described in Section 62410.
(2) For the purposes of this subdivision, “net available revenue” means periodic distributions to the city or county from the Redevelopment Property Tax Trust Fund, created pursuant to Section 34170.5 of the Health and Safety Code, that are available to the city or county after all preexisting legal commitments and statutory obligations funded from that revenue are made pursuant to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code. “Net available revenue” shall not include any
funds deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund or funds remaining in the Redevelopment Property Tax Trust Fund prior to distribution. Net available revenues shall not include any moneys payable to a school district that maintains kindergarten and grades 1 to 12, inclusive, community college districts, county office of education, or to the Educational Revenue Augmentation Fund, pursuant to paragraph (4) of subdivision (a) of Section 34183 of the Health and Safety Code.
(d) (1) That portion of any ad valorem property tax revenue annually allocated to a city or county pursuant to Section 97.70 of the Revenue and Taxation Code that is specified in the adopted RISE development plan for the city or county that has agreed to participate pursuant to Section 64211, and that corresponds to the increase in the assessed valuation of taxable property shall be allocated to, and, when
collected, shall be apportioned to, a special fund of the RISE district for all lawful purposes of the district.
(2) When the RISE district ceases to exist, the revenues described in this subdivision shall be allocated to, and, when collected, shall be apportioned to, the respective city or county.
(e) This section shall not be construed to prevent a RISE district from utilizing revenues from any of the following sources to support its activities provided that the applicable voter approval has been obtained, and the RISE development plan has been approved pursuant to Section 62410:
(1) The Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code).
(2) The Municipal Improvement Act of 1913 (Division 12
(commencing with Section 10000) of the Streets and Highways Code).
(3) The Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code).
(4) The Landscaping and Lighting Act of 1972 (Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code).
(5) The Vehicle Parking District Law of 1943 (Part 1 (commencing with Section 31500) of Division 18 of the Streets and Highways Code).
(6) The Parking District Law of 1951 (Part 4 (commencing with Section 35100) of Division 18 of the Streets and Highways Code).
(7) The Park and Playground Act of 1909 (Chapter 7 (commencing with Section 38000) of Part 2 of Division 3 of Title 4
of this code).
(8) The Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of this title).
(9) The Benefit Assessment Act of 1982 (Chapter 6.4 (commencing with Section 54703) of Part 1 of Division 2 of this title).
(10) The so-called facilities benefit assessment levied by the charter city of San Diego or any substantially similar assessment levied for the same purpose by any other charter city pursuant to any ordinance or charter provision.
62420.1.
(a) The portion of taxes required to be allocated pursuant to paragraph (2) of subdivision (a) of Section 62420 shall be allocated and paid into a special fund held in trust for the agency by the county auditor or officer responsible for the payment of taxes into the funds of the affected taxing entities pursuant to the procedure contained in this section.(b) Not later than October 1 of each year, for each RISE development project for which the RISE development plan provides for the division of taxes pursuant to Section 62420, the RISE district shall file, with the county auditor or officer described in subdivision (a), a statement of indebtedness consistent with subdivision (c), a reconciliation statement consistent with subdivision (d),
and a passthrough statement consistent with subdivision (e). All statements required to be filed by this subdivision shall be certified by the chief financial officer of the RISE district.
(c) (1) For each RISE development project for which a statement of indebtedness is required to be filed, the statement of indebtedness shall contain all of the following:
(A) For each loan, advance, or indebtedness incurred or entered into, all of the following information:
(i) The date the loan, advance, or indebtedness was incurred or entered into.
(ii) The principal amount, term, purpose, interest rate, and total interest of each loan, advance, or indebtedness.
(iii) The principal amount and interest due in the fiscal year in which the statement of indebtedness is filed for each loan, advance, or indebtedness.
(iv) The total amount of principal and interest remaining to be paid for each loan, advance, or indebtedness.
(B) The sum of the amounts determined under clause (iii) of subparagraph (A).
(C) The sum of the amounts
determined under clause (iv) of subparagraph (A).
(D) The available revenues as of the end of the previous year, as determined pursuant to paragraph (10) of subdivision (d).
(2) The RISE district may estimate the amount of principal or interest, the interest rate, or term of any loan, advance, or indebtedness if the nature of the loan, advance, or indebtedness is such that the amount of principal or interest, the interest rate or term cannot be precisely determined. The RISE district may list on a statement of indebtedness any loan, advance, or indebtedness incurred or entered into on or before the date the statement is filed.
(d) For each RISE district project for which a reconciliation statement is required to be filed, the reconciliation statement shall contain all of the following:
(1) A list of all loans, advances, and indebtedness listed on the previous year’s statement of indebtedness.
(2) A list of all loans, advances, and indebtedness, not listed on the previous year’s statement of indebtedness, but incurred or entered into in the previous year and paid in whole or in part from revenue received by the RISE district pursuant to Section 62420. This listing may aggregate loans, advances, and indebtedness incurred or entered into in the previous year for a particular purpose, including relocation expenses, administrative expenses, consultant expenses, or
property management expenses, into a single item in the listing.
(3) For each loan, advance, or indebtedness described in paragraph (1) or (2), all of the following information:
(A) The total amount of principal and interest remaining to be paid as of the later of the beginning of the previous year or the date the loan, advance, or indebtedness was incurred or entered into.
(B) Any increases or additions to the loan, advance, or indebtedness occurring during the previous year.
(C) The amount paid
on the loan, advance, or indebtedness in the previous year from revenue received by the RISE district pursuant to Section 62420.
(D) The amount paid on the loan, advance, or indebtedness in the previous year from revenue other than revenue received by the RISE district pursuant to Section 62420.
(E) The total amount of principal and interest remaining to be paid as of the end of the previous fiscal year.
(4) The available revenues of the RISE district as of the beginning of the previous fiscal year.
(5) The amount of revenue received by the RISE district in the previous fiscal year pursuant to Section 62420.
(6) The amount of available revenue received by the RISE district in the previous fiscal year from any source other than pursuant to Section 62420.
(7) The sum of the amounts specified in subparagraph (D) of paragraph (3), to the extent that the amounts are not included as available revenues pursuant to paragraph (6).
(8) The sum of the amounts specified in paragraphs (4), (5), (6), and (7).
(9) The sum of the amounts specified in subparagraphs (C) and (D) of paragraph (3).
(10) The amount determined by subtracting the amount determined under paragraph (9) from the amount determined under paragraph (8). The amount determined pursuant to this paragraph shall be the available revenues as of the end of the previous fiscal year.
(e) A RISE district shall prepare a passthrough statement that includes all of the following information:
(1) The projected amount of revenue that the RISE district expects to be allocated as provided in paragraph (2) of subdivision (a) of Section 62420.
(2) For each affected taxing entity that is entitled to a passthrough, the RISE district shall subtract from the amount described in paragraph (1) the amount calculated by the county auditor
as provided in this paragraph. The county auditor shall calculate the proportional amount that the affected taxing entity would have received from property located in the RISE district project area during the relevant fiscal year, inclusive of amounts the affected taxing entity would receive, if any, pursuant to Section 97.70 of, clause (i) of subparagraph (B) of paragraph (4) of subdivision (d) of Section 97.2 of, clause (i) of subparagraph (B) of paragraph (4) of subdivision (d) of Section 97.3 of, or Article 4 (commencing with Section 98) of Chapter 6 of Part 0.5 of Division 1 of, the Revenue and Taxation Code. However, in no instance shall the amount calculated under this paragraph result in the affected taxing entity receiving an amount of ad valorem property tax revenue that is greater or lesser than the amount of ad valorem tax revenue received by the RISE district that is attributable to that affected taxing entity, inclusive of the amounts the affected taxing entity would receive from any of the
sources described in the preceding sentence.
(3) A statement of the total amount of passthrough payments that the RISE district is required to make as calculated pursuant to paragraph (2).
(f) For the purposes of this section, available revenues shall include all cash or cash equivalents held by the RISE district that were received by the RISE district pursuant to Section 62420 and all cash or cash equivalents held by the RISE district that are irrevocably pledged or restricted to payment of a loan, advance, or indebtedness that the RISE district has listed on a statement of indebtedness. However, available revenue, for purposes of this section, shall not include the amount of any payment that the RISE district is required to make under a passthrough provision as described in the passthrough statement prepared pursuant to subdivision (e).
(g) The county auditor or officer shall, at the same time or times as the payment of taxes into the funds of the affected taxing entities of the county, allocate and pay the portion of taxes provided by paragraph (2) of subdivision (a) of Section 62420 to a special trust fund established for each RISE district. The amount allocated and paid shall not exceed the amount determined pursuant to subparagraph (C) of paragraph (1) of subdivision (c) plus the amount owed under any passthrough provision under subdivision (e), minus the amount determined pursuant to subparagraph (D) of paragraph (1) of subdivision (c).
(h) (1) The statement of indebtedness constitutes prima facie evidence of the loans, advances, or indebtedness of the RISE district.
(2) (A) If the county auditor or other officer disputes the amount of loans, advances, or indebtedness as shown on the statement of indebtedness, the county auditor or other officer shall, within 30 days after receipt of the statement, give written notice to the RISE district thereof.
(B) The RISE district shall, within 30 days after receipt of notice pursuant to subparagraph (A), submit any further information it deems appropriate to substantiate the amount of any loans, advances, or indebtedness which has been disputed. If the county auditor or other officer still disputes the amount of loans, advances, or indebtedness, final written notice of that dispute shall be given to the RISE district, and the amount disputed may be withheld from allocation and payment to the RISE district as otherwise
required by subdivision (h). In that event, the auditor or other officer shall bring an action in the superior court in declaratory relief to determine the matter not later than 90 days after the date of the final notice.
(3) In any court action brought pursuant to this section, the issue shall involve only the amount of loans, advances, or indebtedness, and not the validity of any contract or debt instrument or any expenditures pursuant thereto. Payments to a trustee under a bond resolution or indenture of any kind or payments to a public agency in connection with payments by that public agency pursuant to a lease or bond issue shall not be disputed in any action under this section. The matter shall be set for trial at the earliest possible date and shall take precedence over all other cases except older matters of the same character. Unless an action is brought within the time
provided for herein, the auditor or other officer shall allocate and pay the amount shown on the statement of indebtedness as provided in subdivision (h).
(i) This section does not deny a remedy against the RISE district otherwise provided by law.
(j) The Controller shall prescribe a uniform form for a statement of indebtedness, reconciliation, and passthrough. These forms shall be consistent with this section. In preparing these forms, the Controller shall obtain the input of county auditors, agencies, and organizations of county auditors and agencies.
(k) For the purposes of this section, a fiscal year shall be a year that begins on July 1 and ends the following June 30.
62420.2.
The county auditor shall, after deducting its administrative costs for activities performed pursuant to this chapter and Section 95.3 of the Revenue and Taxation Code, allocate the funds deposited in a special trust fund established for a RISE district pursuant to subdivision (g) of Section 62420.1 and shall distribute those taxes in the same manner and at the same time or times as the payment of taxes into the funds of the affected taxing entities of the county, as follows:(a) First, to satisfy any passthrough provisions described in subparagraph (F) of paragraph (3) of subdivision (b) of Section 62410 included in the RISE development plan, and calculated pursuant to subdivision (e) of Section 62420.1. The amount transferred to each affected taxing agency
pursuant to this subdivision shall be based on the amount calculated pursuant to subdivision (e) of Section 62420.1.
(b) Second, any amount remaining in the special trust fund after making the allocations pursuant to subdivision (a) shall be transferred to the RISE district and available to the RISE district for any purpose authorized in the RISE development plan.
62421.
(a) (1) At any time before or after the adoption of the RISE development plan, a city, county, or city and county may adopt a resolution to allocate tax revenues of that entity to the district, including revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code).(2) If the RISE development plan proposes to allocate tax revenues of that entity to the district that are derived from the local sales
and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code), the city, county, or city and county has received the consent of any impacted transportation agency that receives tax revenues derived from that any tax adopted pursuant to that law, and has ensured that existing or planned transportation operations and capital projects will not be negatively impacted.
(b) The RISE district shall ensure that the requirements of this article are met every 10 years.
(c) The use of the revenues derived from the local sales and use taxes imposed under the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or transactions and use taxes imposed in accordance with the Transactions and Use Tax
Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code) pursuant to the RISE development plan is consistent with the purposes for which that tax is imposed.
(d) The RISE district shall require, by recorded covenants or restrictions, that affordable housing units financed pursuant to this section remain available at affordable housing costs to, and occupied by, very low income households, persons and families of low income, or persons and families of low or moderate income for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units.
(e) A RISE district shall not adopt an ordinance terminating a RISE district created pursuant to this section if the district has not complied with its affordable housing obligations.
62422.
(a) (1) If a RISE development plan provides for the division of state sales and tax revenues under the Sales and Use Tax Law (Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code) that flows into the General Fund due to RISE district activities, the Department of Tax and Fee Administration shall, by June 1 of each year, estimate the amount of additional state sales and tax revenue that flowed into the General Fund that is attributable to new development within each RISE district and notify the Controller of that amount.(2) The estimate made pursuant to paragraph (1) shall not include any portion of state sales and tax revenues from special taxes that are not deposited into the general
fund, including, but not limited to, revenues collected and deposited pursuant to Section 6051.15, 6051.2, 6051.3, 6201.15, 6201.2, and 6201.3 of the Revenue and Taxation Code and Section 35 of Article XIII of the California Constitution.
(b) Upon receiving the notification from the Department of Tax and Fee Administration pursuant to subdivision (a), the Controller shall transfer an amount, equal to the total amount estimated by the Department of Tax and Fee Administration in the notification, from the General Fund to the RISE District Sales Tax Increment Fund established pursuant to Section 12100.176.
CHAPTER 5. Tax Increment Bonds
62425.
A RISE district may, by majority vote, issue bonds pursuant to this chapter by adopting a resolution that includes all of the following:(a) A description of the facilities or developments to be financed with the proceeds of the proposed bond issue.
(b) The estimated cost of the facilities or developments, the estimated cost of preparing and issuing the bonds, and the principal amount of the bond issuance.
(c) The maximum interest rate and
discount on the bond issuance.
(d) A determination of the amount of tax revenue available or estimated to be available, for the payment of the principal of, and interest on, the bonds.
(e) A finding that the amount necessary to pay the principal of, and interest on, the bond issuance will be less than, or equal to, the amount determined pursuant to subdivision (d).
(f) The issuance of the bonds in one or more series.
(g) The principal amount of the bonds that shall be consistent with the
amount specified in subdivision (b).
(h) The date the bonds will bear.
(i) The date of maturity of the bonds.
(j) The denomination of the bonds.
(k) The form of the bonds.
(l) The manner of execution of the bonds.
(m) The medium of
payment in which the bonds are payable.
(n) The place or manner of payment and any requirements for registration of the bonds.
(o) The terms of call or redemption, with or without premium.
62426.
The RISE district may, by majority vote, provide for refunding of bonds issued pursuant to this chapter. However, refunding bonds shall not be issued if the total net interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds exceeds the total net interest cost to maturity on the bonds to be refunded. The public financing authority may not extend the time to maturity of the bonds.62427.
The RISE district or any person executing the bonds shall not be personally liable on the bonds by reason of their issuance. The bonds and other obligations of a district issued pursuant to this chapter are not a debt of the city, county, or state or of any of its political subdivisions, other than the district, and none of those entities, other than the district, shall be liable on the bonds and the bonds or obligations shall be payable exclusively from funds or properties of the district. The bonds shall contain a statement to this effect on their face. The bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation.62428.
The bonds may be sold at discount not to exceed 5 percent of par at public sale. At least five days prior to the sale, notice shall be published, pursuant to Section 6061, in a newspaper of general circulation and in a financial newspaper published in the City and County of San Francisco and in the City of Los Angeles. The bonds may be sold at not less than par to the federal government at private sale without any public advertisement.62429.
If any member of the RISE district whose signature appears on bonds ceases to be a member of the RISE district before delivery of the bonds, their signature is as effective as if they had remained in office. Bonds issued pursuant to this chapter are fully negotiable.62430.
Upon the approval of its governing board, a city, county, or special district that contains territory within the boundaries of a district, may loan moneys to the district to fund those activities described in the RISE development plan approved and adopted pursuant to Section 62410. Moneys loaned pursuant to this provision may be repaid at an interest rate that does not exceed the Local Agency Investment Fund rate that is in effect on the date that the loan is approved by the governing board. Notwithstanding any other provision of law it is the intent of the Legislature that any loan issued to a RISE district by a governmental entity shall be repaid fully unless agreed to otherwise between the district and the governmental entity.62431.
(a) Every two years after the issuance of debt pursuant to this chapter, the RISE district shall contract for an independent financial and performance audit. The audit shall be conducted according to guidelines established by the Controller. A copy of the completed audit shall be provided to the Controller, the Director of Finance, and to the Joint Legislative Budget Committee.(b) Upon the request of the Governor or the Legislature, the Bureau of State Audits shall be authorized to conduct financial and performance audits of RISE districts. The results of the audits shall be provided to the district, the Controller, the Director of Finance, and the Joint Legislative Budget
Committee.
CHAPTER 6. Labor Standards
62435.
Except as provided in Section 62437, a RISE district development project shall meet all of the following labor standards:(a) The development proponent shall require in contracts with construction contractors, and shall certify to the RISE district, that the standards specified in this section will be met in project construction.
(b) A development that is not in its entirety a public work for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code and receives financing from a RISE district shall be subject to all of the following:
(1) All construction workers employed in the execution of the development shall be paid
at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773.9 of the Labor Code, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.
(2) The development proponent shall ensure that the prevailing wage requirement is included in all contracts for the performance of the work for those portions of the development that are not a public work.
(3) All contractors and subcontractors for those portions of the development that are not a public work shall comply with both of the following:
(A) Pay to all construction workers employed in the execution of the work at least the
general prevailing rate of per diem wages, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.
(B) Maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided in that section. This subparagraph does not apply if all contractors and subcontractors performing work on the development are subject to a project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the development and provides for enforcement of that obligation through an arbitration procedure. For purposes of this subparagraph, “project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
(c) (1) The obligation of the contractors and subcontractors to pay prevailing wages pursuant to this section may be enforced by any of the following:
(A) The Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code, within 18 months after the completion of the development.
(B) An underpaid worker through an administrative complaint or civil action.
(C) A joint labor-management committee through a civil action under Section 1771.2 of the Labor Code.
(2) If a civil wage and penalty assessment is issued pursuant to this section, the contractor,
subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the assessment shall be liable for liquidated damages pursuant to Section 1742.1 of the Labor Code.
(3) This subdivision does not apply if all contractors and subcontractors performing work on the development are subject to a project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the development and provides for enforcement of that obligation through an arbitration procedure. For purposes of this subdivision, “project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
(d) Notwithstanding subdivision (c) of Section 1773.1 of the Labor Code, the requirement that employer payments not reduce the obligation to pay the hourly straight time or
overtime wages found to be prevailing does not apply to those portions of development that are not a public work if otherwise provided in a bona fide collective bargaining agreement covering the worker.
(e) The requirement of this section to pay at least the general prevailing rate of per diem wages does not preclude use of an alternative workweek schedule adopted pursuant to Section 511 or 514 of the Labor Code.
62436.
Except as provided in Section 62437, a development of 50 or more housing units financed by a RISE district shall, in addition to the requirements of Section 62435, meet all of the following labor standards:(a) The development proponent shall require in contracts with construction contractors and shall certify to the RISE district that each contractor of any tier who will employ construction craft employees or will let subcontracts for at least 1,000 hours shall satisfy the requirements in subdivisions (b) and (c). A construction contractor is deemed in compliance with subdivisions (b) and (c) if it is signatory to a valid collective bargaining agreement that requires utilization of registered apprentices and expenditures on health care for employees and dependents.
(b) A contractor with construction craft employees shall either participate in an apprenticeship program approved by the State of California Division of Apprenticeship Standards pursuant to Section 3075 of the Labor Code, or request the dispatch of apprentices from a state-approved apprenticeship program under the terms and conditions set forth in Section 1777.5 of the Labor Code. A contractor without construction craft employees shall show a contractual obligation that its subcontractors comply with this subdivision.
(c) Each contractor with construction craft employees shall make health care expenditures for each employee in an amount per hour worked on the development equivalent to at least the hourly pro rata cost of a Covered California Platinum level plan for two 40-year-old adults and two dependents 0 to 14 years of age for the Covered California rating area in which the
development is located. A contractor without construction craft employees shall show a contractual obligation that its subcontractors comply with this subdivision. Qualifying expenditures shall be credited toward compliance with prevailing wage payment requirements set forth in Section 62435.
(d) (1) The development proponent shall provide to the RISE district, on a monthly basis while its construction contracts on the development are being performed, a report demonstrating compliance with subdivisions (b) and (c). The reports shall be considered public records under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1), and shall be open to public inspection.
(2) A development proponent that fails to provide the monthly report shall be subject to a civil penalty for each month for which the report has not been
provided, in the amount of 10 percent of the dollar value of construction work performed by that contractor on the development in the month in question, up to a maximum of ten thousand dollars ($10,000). Any contractor or subcontractor that fails to comply with subdivision (b) or (c) shall be subject to a civil penalty of two hundred dollars ($200) per day for each worker employed in contravention of subdivision (b) or (c).
(3) Penalties may be assessed by the Labor Commissioner within 18 months of completion of the development using the procedures for issuance of civil wage and penalty assessments specified in Section 1741 of the Labor Code, and may be reviewed pursuant to Section 1742 of the Labor Code. Penalties shall be deposited in the State Public Works Enforcement Fund established pursuant to Section 1771.3 of the Labor Code.
(e) Each construction contractor shall maintain
and verify payroll records pursuant to Section 1776 of the Labor Code. Each construction contractor shall submit payroll records directly to the Labor Commissioner at least monthly in a format prescribed by the Labor Commissioner in accordance with subparagraph (A) of paragraph (3) of subdivision (a) of Section 1771.4 of the Labor Code. The records shall include a statement of fringe benefits. Upon request by a joint labor-management cooperation committee established pursuant to the Federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a), the records shall be provided pursuant to subdivision (e) of Section 1776 of the Labor Code.
(f) All construction contractors shall report any change in apprenticeship program participation or health care expenditures to the RISE district within 10 business days, and shall reflect those changes on the monthly report. The reports shall be considered public records pursuant to the California
Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1) and shall be open to public inspection.
(g) A joint labor-management cooperation committee established pursuant to the Federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a) shall have standing to sue a construction contractor for failure to make health care expenditures pursuant to subdivision (c) in accordance with Section 218.7 or 218.8 of the Labor Code.
