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SB-619 Armories: sale.(2019-2020)

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Date Published: 06/30/2020 11:40 AM
SB619:v96#DOCUMENT

Corrected  July 09, 2020
Amended  IN  Assembly  July 27, 2020
Amended  IN  Senate  April 30, 2019
Amended  IN  Senate  March 27, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 619


Introduced by Senator Hueso
(Coauthors: Senators Allen, Caballero, and Chang)(Coauthor: Assembly Member McCarty)

February 22, 2019


An act to add and repeal Article 7 (commencing with Section 425) of Chapter 3 of Division 1 of the Financial Code, and to amend Section 12097.5 of the Government Code, relating to promise zones. An act to amend Section 435 of the Military and Veterans Code, relating to armories.


LEGISLATIVE COUNSEL'S DIGEST


SB 619, as amended, Hueso. Promise Zones: credit reporting pilot program: educational services. Armories: sale.
Existing law authorizes the Director of General Services, with the approval of the Adjutant General, to lease and sell real property held for armory purposes, subject to legislative approval. Under existing law, an armory shall be offered for sale to a local agency, as defined, before being offered for sale to private entities or individuals. Existing law requires the Department of General Services to maintain a list of armories authorized for sale on its internet website. Existing law establishes the Armory Fund and requires that the new proceeds from the sale or lease of armories be deposited into the fund, for use, upon appropriation by the Legislature, for specified purposes related to armories.
This bill would direct the director, when an armory has not sold after being listed as available on the department’s internet website for 2 years, and when requested and approved by the Adjutant General, to make an armory available for sale or transfer to a local agency for an amount determined by the Adjutant General to be in the best interests of the state.

The Consumer Credit Reporting Agencies Act and the federal Fair Credit Reporting Act provide for the regulation of consumer credit reporting agencies that collect credit-related information on consumers and report this information to subscribers and of persons who furnish that information to consumer credit reporting agencies, as provided.

Existing law requires, among other things, that the Governor’s Office of Business and Economic Development (GO-Biz) convene, at least annually, representatives from various programs and agencies across the state and from various federal programs and agencies for the purpose of discussing how California can leverage Promise Zones and Opportunity Zones to meet state and local community and economic development needs, as provided.

This bill would require, as part of this annual convention, that the office assist with educational partnerships. The bill would make other nonsubstantive changes.

This bill, on and after January 1, 2021, would require the operator of an eligible rental housing development located within a Promise Zone, as defined, that either consists of 50 or more units or receives financial assistance from the state, to on a monthly basis furnish to a consumer credit reporting agency, as defined, information regarding the rental payment made by each tenant within the rental housing development who authorizes the submission of that information, as provided. The bill would require the Department of Business Oversight to notify the director of each Promise Zone that a tenant living in a Promise Zone may opt to have their rental payments reported to a consumer credit reporting agency and to encourage the director to offer those tenants credit education and financial coaching free of charge. The bill would require the department to contract with an independent third party to analyze data submitted to credit reporting agencies pursuant to these provisions and submit a report to the department providing specified information. The bill would require the department to post that report on its internet website and submit the report to the Legislature by January 1, 2024. The bill would repeal these provisions as of January 1, 2025.

This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Los Angeles, the City of Sacramento, and the City of San Diego.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 435 of the Military and Veterans Code is amended to read:

435.
 (a) The Director of General Services, with the approval of the Adjutant General, may lease for not more than 99 years or sell for fair market value, upon terms and conditions and subject to any reservations and exceptions as may be determined to be in the best interests of the State, any real property held for armory purposes. Real property shall not be sold or leased pursuant to this subdivision unless the Legislature, by statute, approves the sale or lease of the property.
(b) (1) An armory shall be offered for sale to any local agency, as defined in subdivision (a) of Section 54221 of the Government Code, before being offered for sale to private entities or individuals.
(2) For purposes of paragraph (1), fair market value shall be determined by an appraisal undertaken and approved by the Director of General Services.
(3) The Department of General Services, subject to this subdivision, shall maintain a list of armories authorized for sale in a conspicuous place on its Internet Web site. internet website. The Department of General Services shall provide local agencies and, upon request, members of the public, with electronic notification of updates to the list of properties.
(4) To be considered as a potential priority buyer of the armory, a local agency shall notify the Department of General Services of its interest in the armory within 90 days of the Department of General Services posting on its Internet Web site internet website the notice of the availability of the armory property. When more than one local agency expresses an interest in the armory, the Department of General Services shall transfer the armory to the local agency offering the highest amount of money above fair market value.
(5) If no local agency is interested, or an agreement, as provided above, is not reached, then the disposal of the armory to private entities or individuals shall be pursuant to a public bidding process designed to obtain the highest most certain return for the state from a responsible bidder, and any transaction based on that bidding process shall be deemed to be the fair market value.
(6) If an armory has not sold after being listed as available on the Department of General Services internet website for two years, the Director of General Services shall, when requested by and with the approval of the Adjutant General, make the armory available for sale or transfer to a local agency for an amount determined by the Adjutant General to be in the best interests of the state.
(c) As to an armory sold pursuant to this section, the Director of General Services shall except and reserve to the state all mineral deposits, as described in Section 6407 of the Public Resources Code, together with the right to prospect for, mine, and remove the deposits. If, however, the Director of General Services determines that there is little or no potential for mineral deposits, the reservation may be without surface right of entry above a depth of 500 feet, or the rights to prospect for, mine, and remove the deposits shall be limited to those areas of the armory conveyed that the director determines to be reasonably necessary for the removal of the deposits.
(d) There is in the State Treasury the Armory Fund. All net proceeds from the sale or lease of an armory shall be deposited in the fund. The money in the fund is available, upon appropriation by the Legislature, for the maintenance of existing armories, and for the acquisition or construction of new or replacement armories, including, but not limited to, the cost of design. The disposition of armory properties is not subject to subdivision (g) of Section 11011 of the Government Code.
(e) For the purposes of this section, “net proceeds” are the gross proceeds less:
(1) Outstanding reimbursements due to the Property Acquisition Law Money Account for costs incurred by the Department of General Services in selling an armory property.
(2) All costs directly related to the disposition of an armory, including, but not limited to, all costs and expenses incurred by the Department of General Services, as specified in subdivision (f).
(f) Notwithstanding subdivision (d), the Department of General Services shall, upon appropriation by the Legislature, use funds from the Property Acquisition Law Money Account for the purposes of selling armory properties. The Director of Finance may approve loans from the General Fund to the Property Acquisition Law Money Account.
(g) The sale of an armory shall be made on an “as is” basis and is exempt from Chapter 3 (commencing with Section 21100) of Division 13 of the Public Resources Code. Upon vesting title of the armory to the purchaser or transferee of the armory, the purchaser or transferee is subject to any local governmental land use entitlement requirements and to Chapter 3 (commencing with Section 21100) of Division 13 of the Public Resources Code.

SECTION 1.Article 7 (commencing with Section 425) is added to Chapter 3 of Division 1 of the Financial Code, to read:
7.Promise Zone Rent Payment Reporting
425.

For purposes of this article:

(a)“Consumer credit reporting agency” means one that compiles and maintains files on consumers on a nationwide basis and meets the definition in Section 603(p) of the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681a(p)).

(b)“Eligible rental housing development” means a rental housing development that is located within a Promise Zone and for which either of the following apply:

(1)The development consists of 50 or more units.

(2)The development receives financial assistance from the state.

(c)“Furnish” or “furnishing” means that the eligible rental housing development acts as a furnisher, within the meaning of Section 660.2(c) of Title 16 of the Code of Federal Regulations.

(d)“Operator” means the person or entity that manages the eligible rental housing development. An operator may, but is not required to, be the owner of the development.

(e)“Promise Zone” means the four areas in this state, located within the City of Los Angeles, the City of Sacramento, and the City of San Diego, that were designated as Promise Zones by the United States Department of Housing and Urban Development as of January 1, 2019.

(f)“Rental payment” means a regular payment made in exchange for the right to occupy a unit in an eligible rental housing development.

(g)“Tenant” means a person residing in an eligible rental housing development who is responsible for making rental payments.

426.

(a)(1)On and after January 1, 2021, and subject to paragraph (2), the operator of each eligible rental housing development shall, on a monthly basis, furnish to at least one consumer credit reporting agency information regarding the rental payment made by each tenant within the eligible rental housing development who authorizes the submission of that information or may authorize a third party to report the information on its behalf.

(2)An operator of an eligible rental housing development, or an authorized third party, as applicable, shall obtain written consent from a tenant before reporting data to a consumer credit reporting agency.

(3)A tenant that provides consent pursuant to paragraph (2) may, at any time, file a subsequent written request with the operator or authorized third party requesting that the operator or third party cease reporting their rental payment information to a consumer credit reporting agency.

(4)Participating tenants who opt out of reporting pursuant to paragraph (3) may provide new consent pursuant to paragraph (2) six months from the date the written opt out is filed, or whatever period is required by the consumer credit reporting agencies, whichever is sooner.

(b)A tenant who opts into rent reporting does not forfeit any rights under Sections 1941 to 1942, inclusive, of the Civil Code. Payments made conforming to those statutes shall not constitute a late rental payment. Tenants invoking their rights under Sections 1941 to 1942, inclusive, of the Civil Code, shall notify the operator of their eligible rental housing prior to the date rent is due.

(c)The Department of Business Oversight shall notify the director of each Promise Zone regarding the ability of tenants living in Promise Zones to opt to have their rent payments reported to a consumer credit reporting agency and shall encourage each director to offer Promise Zone tenants credit education and financial coaching services free of charge to the tenants.

(d)The Department of Business Oversight shall contract with an independent third party to analyze the data furnished to consumer reporting agencies pursuant to subdivision (a). The third party shall submit a report to the department summarizing the analysis by December 1, 2023. The report submitted by the independent third party shall include the following information:

(1)A determination of whether the submission of rental payment data enables an individual who lacks a trade line on file at a consumer credit reporting agency to establish a prime credit score with that agency and, if applicable, the mean credit score established by those individuals.

(2)A determination of whether the submission of rental payment data enables an individual with three or fewer trade lines on file at a consumer credit reporting agency to establish a prime credit score with that agency and, if applicable, the mean credit score established by those individuals.

(3)A determination of whether the submission of rental payment data enables an individual with a nonprime credit score at a consumer credit reporting agency to establish a prime credit score with that agency and, if applicable, the mean credit score established by those individuals.

(4)For renters with a credit score at a consumer credit reporting agency before their rental payment data was first submitted pursuant to this section, the total number and the percentage of those renters that experience a positive score change, a negative score change, and no score change, and the average size of those changes.

(5)The percentage of tenants that move between credit tiers following the submission of rental payment data.

(e)The contract used by the Department of Business Oversight to comply with subdivision (d) shall require the third party to, at a minimum, do all of the following:

(1)Include data for participating tenants, without regard to whether the data is submitted by participating eligible rental housing developments or by authorized third parties.

(2)Analyze the data at least once every six months.

(3)Isolate the impact of the rental income trade line relative to other trade lines.

(4)Anonymize and aggregate all data included in the final report.

(5)Provide the information required by subdivision (d) in relation to individual developing of a VantageScore 3.0, FICO 9, or comparable credit score that accounts for rental payment data.

(f)The Department of Business Oversight shall post the report prepared pursuant to subdivision (d) on its internet website and submit the report to the Legislature in accordance with Section 9795 of the Government Code by January 1, 2024.

427.

This article shall remain in effect until January 1, 2025, and as of that date is repealed.

SEC. 2.Section 12097.5 of the Government Code is amended to read:
12097.5.

(a)(1)The office is hereby authorized to develop content on its internet website or through other mediums to be used for public dissemination, through outreach activities, in order to provide information and resources to inform the general public about place-based and other geographically targeted economic development programs, including, but not limited to, federal Promise Zones within California that are designated by the United States Department of Housing and Urban Development, and Opportunity Zones designated by the United States Treasury, pursuant to Sections 1400Z-1 and 1400Z-2 of the Internal Revenue Code.

(2)The information and resources shall include, but not be limited to, how the local jurisdictions or census tracts were created, where locals and investors may get additional information, and updates regarding federal programs as that information becomes available.

(b)(1)The office shall convene, at least annually, representatives from various programs and agencies across the state and from various federal programs and agencies for the purpose of discussing how California can leverage Promise Zones and Opportunity Zones to meet state and local community and economic development needs. The convention topics shall include, but not be limited to, discussions on enhanced engagement opportunities and targeted outreach to assist designated areas in their efforts to access state resources and services.

(2)As part of the annual convention required by this subdivision, the office shall assist with educational partnerships.

(c)As used in this section:

(1)“California Opportunity Zone” means a census tract in this state that has been designated by the United States Treasury as an Opportunity Zone, pursuant to Sections 1400Z-1 and 1400Z-2 of the Internal Revenue Code.

(2)“California Promise Zone” means a community in this state that has been designated by the United States Department of Housing and Urban Development as a Promise Zone.

SEC. 3.

The Legislature finds and declares that, with respect to Section 2 of this act, a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances in the City of Los Angeles, the City of Sacramento, and the City of San Diego related to the designation of federal Promise Zones within each of these cities by the United States Department of Housing and Urban Development.

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CORRECTIONS:
Heading—Amend Date.
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