Section 5370 - Evaluation Criteria(a) Community Economic Need (20 points maximum). Applications will be awarded points for Projects that are located in communities according to the following: (1) Unemployment Rate (10 points maximum). Based on data from the California Employment Development Department, the average unemployment rate for the preceding calendar year of the county sub-area in which the Small-Issue Industrial Development Bond Project is located will be divided by the statewide unemployment rate for the preceding calendar year and multiplied by one-hundred (100). The following points will be awarded accordingly: (A) Ten (10) points to a Project located in an area with an unemployment rate that is one hundred seventy-five percent (175%) or more of the statewide average.(B) Five (5) points to a Project located in an area with an unemployment rate that is one hundred twenty-five percent (125%) or more, but less than one hundred seventy-five percent (175%), of the statewide average.(2) Project Area Poverty Rate (5 points maximum). Based on the most recent data from the United States Bureau of the Census, the estimated poverty rate of each federal census tract within a 1-mile radius area of the Project site, including the tract in which the Project is located will be averaged, divided by the statewide poverty rate and multiplied by one-hundred (100). The following points will be awarded accordingly: (A) Five (5) points to a Project located in an area in which the poverty rate is over one hundred twenty-five percent (125%) of the statewide poverty rate.(B) Three (3) points to a Project located in an area in which the poverty rate is over one-hundred ten percent (110%) but not more than one-hundred twenty-five percent (125%) of the statewide poverty rate.(3) Median Family Income (5 points maximum). Points will be awarded for a Project located in an area with a median family income of less than eighty percent (80%) of the statewide average based on the most recent census data available for cities or Census Designated Places. If no city or Census Designated Place level data is available, or if the Applicant chooses to identify a Project benefit area that is smaller than a city or Census Designated Place, such as census tract or tracts, smaller areas may be used.(4) If a Project is located in an area for which there is no available economic data, the Small Issue Industrial Development Bond Issuer may submit alternate information to establish the Project's consistency with the intent of the aforementioned point categories pursuant to subdivision (a) of this section. For example, a Small Issue Industrial Development Bond Issuer may submit unemployment and/or median family income data for a neighboring area that is a sub-area, a city, or a Census Designated Place that is in close proximity to the proposed Project. The Executive Director shall have the authority to determine whether the alternate information meets the intent of the point category for which such information has been submitted.(b) Jobs Creation and Retention (45 points maximum). Applications will be awarded points for Projects that create and/or retain jobs according to the following: (1) Job Creation (35 points maximum). Applications will be eligible for Job Creation points when full-time new jobs have been created pursuant to the Job Retention definition provided in section 5350. Based on the Project Sponsor's representation that they will make their best efforts to increase the number of direct, full-time employees at the Project site within two (2) years of Project completion, points will be awarded as follows: (A) Thirty-five (35) points to Projects creating a 31% or more increase in the manufacturer's workforce.(B) Twenty (20) points to Projects creating a 21% to 30% increase in the manufacturer's workforce.(C) Ten (10) points to Projects creating a 10% to 20% increase in the manufacturer's workforce.(2) Job Retention (10 points maximum). Applications will be eligible for Job Retention points when jobs have been retained pursuant to the Job Creation definition as provided in section 5000. To qualify for Job Retention points, the jobs retained must be those that would be lost in the absence of the requested Allocation. Points will be awarded provided the following: (A) A certification that the Project Sponsor will retain the specified jobs for a two (2) year period after the issuance of Bonds. The Committee may verify jobs retained at any time during the two (2) year period, or(B) A verification letter from the appropriate local governmental entity stating that the Project Sponsor's business is at risk of closing local operations, and that the requested Allocation and retention of the Project Sponsor's business is an integral part of its plan to maintain the health of the local economy and retain employment, or(C) Written evidence from the Project Sponsor that the company within two (2) years prior to the submission of an Application for tax-exempt IDB financing, engaged a site selector to find possible relocation sites.(c) Workforce and Economic Development (15 points maximum)(1) Welfare-to-Work (5 points maximum). Points will be awarded where the Project Sponsor proposes or is participating in a Welfare-to-Work Plan in conjunction with a local governmental agency, educational agency, or non-profit organization. Evidence may include a signed letter or documentation demonstrating a proposed plan has been acknowledged or that participation is occurring that includes, at minimum, the manner and extent of the participation.(2) Workforce Training (5 points maximum). To qualify for points in this category, the Project Sponsor must provide copies of official documentation of its current or pending participation. Such documentation shall include copy of an executed contract between the Project Sponsor and the provider; or a formal letter from the provider addressed to the Project Sponsor acknowledging the Project Sponsor's current or pending participation in the program. Points will be awarded where the Project Sponsor participates in one or more training, retraining or apprenticeship programs offered by any of the following state agencies, certified training facilities or postsecondary institutions: (A) The California Employment Training Panel;(B) The California Department of Industrial Relations;(F) A regional occupational program or private training agency approved by the California Bureau of Private Postsecondary and Vocational Education.(3) Exports Outside of California (5 points maximum). To qualify for points in this category, an officer or owner of the Project Sponsor must certify in writing on Project Sponsor letterhead that it exports, or in the case of the construction of a new manufacturing facility at a new Project site, anticipates that it will export as part of its business plan as follows:(A) In excess of 30% of products manufactured at the Project site (5 points);(B) Over 20% and up to 30% of its products manufactured at the Project site (3 points);(C) Up to 20% of its products manufactured at the Project site (2 points);(d) Payment of Employee and Dependent Medical, Dental, Vision and Retirement Costs (20 points maximum). Applications will be awarded points where the Project Sponsor contributes toward the cost of employee and dependent medical, dental, and vision benefits. Applicants must provide evidence of the amount paid to each medical, dental and vision provider and the amount of employee contribution toward the provision of these benefits. Points will be awarded based on the average dollar amount per participating employee contributed by the Project Sponsor toward the cost of benefits as follows: (1) Health, Dental and Vision (15 points maximum). (A) Fifteen (15) points will be awarded to Applications that demonstrate that the Project Sponsor will contribute an average of $330 or more per month toward the cost of the medical, dental, and vision benefits for each participating employee and dependents of the employee.(B) Ten (10) points will be awarded to Applications that demonstrate that the Project Sponsor will contribute an average of $220 or more, but less than $330, per month toward the cost of the medical, dental, and vision benefits for each participating employee and dependents of the employee.(C) Five (5) points will be awarded to Applications that demonstrate that the Project Sponsor will contribute an average of $110, but less than $220, per month toward the cost of the medical, dental, and vision benefits for each participating employee and dependents of the employee.(2) Retirement Plans (5 points maximum). To qualify for points in this category, the Project Sponsor must provide specific documentation to show it contributes to a Qualified Retirement Plan or other retirement account for each participating employee and must confirm that it will offer such benefits to employees hired in accordance with the representations made pursuant to the Job Creation definition as provided in section 5000.(e) Average Hourly Wage (10 points maximum). Applications will be awarded points based on a comparison of the Project Wage to the most recent Job Wage. The Project Wage will be divided by the Job Wage and multiplied by one-hundred (100). Points will be awarded as: (1) Ten (10) points for a Project Wage that is one hundred twenty-five percent (125%) or more of the Job Wage.(2) Six (6) points for a Project Wage that is one hundred fifteen percent (115%) or more but less than one hundred twenty-five percent (125%) of the Job Wage.(3) Three (3) points for a Project Wage that is one hundred five percent (105%) or more but less than one hundred fifteen percent (115%) of the Job Wage.(f) Environmental Stewardship (27 points maximum). (1) Land Use (3 points maximum). Points will be awarded to Projects that involve the reuse of the following: (A) Vacant or abandoned buildings; or(B) Vacant or abandoned land with developed infrastructure, excluding land where the immediate prior use was agricultural, open space or other similar use.(2) Public Transportation (4 points maximum). (A) In areas where there is no public transportation system, three (3) points will be awarded to Applications where the Project Sponsor has an adopted transportation system management plan, or;(B) Four (4) points will be awarded to Projects that are located within one-quarter ( 1/4) of a mile of a regular route stop within a Public Transit Corridor evidenced by a scaled-for-distance map showing the location of the Project is within a one-quarter ( 1/4) mile radius of a Public Transportation Corridor and where the Project Sponsor provides written evidence of offering public transit subsidies for employees at the Project site.(3) Energy Efficiency/ Renewable Energy (10 points maximum).(A) Five (5) points will be awarded to Projects that utilize designs, materials or techniques to reduce energy usage by at least fifteen (15%) on the part of the Project Sponsor compared to the following benchmarks:(i) For building construction or rehabilitation, the most recently published California Energy Commission Energy Efficiency Standards for Residential and Non-Residential Buildings; or(ii) For equipment to be purchased and installed, the current per energy unit output of equipment currently in use by the Project Sponsor. Evidence should include a utility company letter indicating that energy savings are Projected or a written certification from an energy efficiency consultant.(B) Five (5) points will be awarded to Projects that involve the installation and use of Renewable Energy equipment to power the production process. The Project Sponsor must provide written documentation from its utility company which specifies the installation or planned installation of Renewable Energy equipment.(4) Manufacturer of Certified Environmentally Preferable Products (5 points maximum). Points will be awarded to Projects which produce or will produce environmentally friendly products certified by an ANSI accredited standards developing organization (e.g., Green Seal, Inc.) or by a widely-recognized and reputable organization accredited as a certifier by an ANSI accredited standards developing organization or by a Forest Stewardship Council (e.g., Scientific Certification Systems, Inc.). The Project Sponsor must provide the current, official documentation of the certification and must provide the percentage of the overall output that is comprised of the certified products.(5) U.S. Green Building Council (USGBC) LEED-Certified Manufacturing Facility (5 points maximum). Points will be awarded to Projects for which Bond proceeds will be used to construct U.S. Green Building Council (USGBC) LEED-certified facilities, or to make improvements to existing facilities that will qualify it for a LEED certificate. The Project Sponsor must provide either: (A) Official documentation of its registration (including evidence of payment of the registration fee) with the USGBC to obtain LEED certification in cases where the Project involves the construction of a new facility and construction has not begun or is not complete at the time of Application; or(B) Official documentation of receipt of a Silver, Gold or Platinum LEED Certification in cases where construction or improvements and the certification process are completed.(g) Leverage (5 points maximum). Points will be awarded to Projects for which Taxable Debt, a taxable loan, and/or private funds or equity will supplement the use of the tax-exempt Bond financing. The Project Sponsor must provide overall Project costs and certify that one or more of these other sources of financing will be used for Projects expenses with points awarded for achieving the following levels: (1) Five (5) points for Projects where greater than twenty percent (20%) of total Project costs will be paid from Taxable Debt, a taxable loan, and/or private funds or equity.(2) Three (3) points for Projects where greater than ten percent (10%) and up to twenty percent (20%) of total Project costs will be paid from Taxable Debt, a taxable loan, and/or private funds or equity.(h) Ranking Applications. Where two or more Applications are awarded the same number of points pursuant to this section, the Executive Director will divide the Allocation amount requested by each such Application by the number of jobs created by the related Project, and will rank the Applications based on the lowest amount of requested Allocation per job(s) created.Cal. Code Regs. Tit. 4, § 5370
1. New article 3 (sections 5370-5372) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.
2. New article 3 (sections 5370-5372) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.
3. New article 3 (sections 5370-5372) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).
5. Amendment subsections (b)-(b)(1)(B), (f)(2)(A) and (f)(4) filed 12-9-2011 as an emergency; operative 12-9-2011 (Register 2011, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-6-2012 or emergency language will be repealed by operation of law on the following day.
6. Amendment of subsection (a)(3)(A) filed 4-4-2012 as an emergency; operative 4-4-2012 (Register 2012, No. 14). A Certificate of Compliance must be transmitted to OAL by 10-1-2012 or emergency language will be repealed by operation of law on the following day.
7. Amendment subsections (b)-(b)(1)(B), (f)(2)(A) and (f)(4) refiled with further amendments to subsections (b)(1)(A)-(B) 6-1-2012 as an emergency; operative 6-1-2012 (Register 2012, No. 22). A Certificate of Compliance must be transmitted to OAL by 8-30-2012 or emergency language will be repealed by operation of law on the following day.
8. Amendment subsections (b)-(b)(1)(B), (f)(2)(A) and (f)(4) refiled 8-29-2012 as an emergency; operative 8-29-2012 (Register 2012, No. 35). A Certificate of Compliance must be transmitted to OAL by 11-27-2012 or emergency language will be repealed by operation of law on the following day.
9. Certificate of Compliance as to 4-4-2012 order transmitted to OAL 9-6-2012 and filed 9-27-2012 (Register 2012, No. 39).
10. Certificate of Compliance as to 8-29-2012 order transmitted to OAL 11-26-2012 and filed 1-8-2013 (Register 2013, No. 2).
11. Amendment of subsection (a), repealer of subsections (a)(3)-(a)(3)(B), subsection renumbering and amendment of newly designated subsection (a)(4) filed 7-10-2014 as an emergency; operative 7-10-2014 (Register 2014, No. 28). A Certificate of Compliance must be transmitted to OAL by 1-6-2015 or emergency language will be repealed by operation of law on the following day.
12. Certificate of Compliance as to 7-10-2014 order transmitted to OAL 11-26-2014 and filed 1-13-2015 (Register 2015, No. 3).
13. Amendment of subsections (d)(1)(A)-(C) filed 12-15-2016 as an emergency pursuant to Government Code section 8869.94; operative 12-15-2016 (Register 2016, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-13-2017 or emergency language will be repealed by operation of law on the following day.
14. Editorial correction providing correct placement of subsection (d)(1) (Register 2017, No. 22).
15. Amendment of subsections (d)(1)(A)-(C) refiled 5-30-2017 as an emergency pursuant to Government Code section 8869.94; operative 6-14-2017 (Register 2017, No. 22). A Certificate of Compliance must be transmitted to OAL by 9-12-2017 or emergency language will be repealed by operation of law on the following day.
16. Reinstatement of section as it existed prior to 12-15-2016 emergency amendment by operation of Government Code section 11346.1(f) (Register 2017, No. 38).
17. Amendment of subsections (d)(1)(A)-(C) filed 10-13-2017; operative 10-13-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 41). Note: Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.
1. New article 3 (sections 5370-5372) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.
2. New article 3 (sections 5370-5372) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.
3. New article 3 (sections 5370-5372) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).
5. Amendment subsections (b)-(b)(1)(B), (f)(2)(A) and (f)(4) filed 12-9-2011 as an emergency; operative 12-9-2011 (Register 2011, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-6-2012 or emergency language will be repealed by operation of law on the following day.
6. Amendment of subsection (a)(3)(A) filed 4-4-2012 as an emergency; operative 4-4-2012 (Register 2012, No. 14). A Certificate of Compliance must be transmitted to OAL by 10-1-2012 or emergency language will be repealed by operation of law on the following day.
7. Amendment subsections (b)-(b)(1)(B), (f)(2)(A) and (f)(4) refiled with further amendments to subsections (b)(1)(A)-(B) 6-1-2012 as an emergency; operative 6-1-2012 (Register 2012, No. 22). A Certificate of Compliance must be transmitted to OAL by 8-30-2012 or emergency language will be repealed by operation of law on the following day.
8. Amendment subsections (b)-(b)(1)(B), (f)(2)(A) and (f)(4) refiled 8-29-2012 as an emergency; operative 8-29-2012 (Register 2012, No. 35). A Certificate of Compliance must be transmitted to OAL by 11-27-2012 or emergency language will be repealed by operation of law on the following day.
9. Certificate of Compliance as to 4-4-2012 order transmitted to OAL 9-6-2012 and filed 9-27-2012 (Register 2012, No. 39).
10. Certificate of Compliance as to 8-29-2012 order transmitted to OAL 11-26-2012 and filed 1-8-2013 (Register 2013, No. 2).
11. Amendment of subsection (a), repealer of subsections (a)(3)-(a)(3)(B), subsection renumbering and amendment of newly designated subsection (a)(4) filed 7-10-2014 as an emergency; operative 7/10/2014 (Register 2014, No. 28). A Certificate of Compliance must be transmitted to OAL by 1-6-2015 or emergency language will be repealed by operation of law on the following day.
12. Certificate of Compliance as to 7-10-2014 order transmitted to OAL 11-26-2014 and filed 1/13/2015 (Register 2015, No. 3).
13. Amendment of subsections (d)(1)(A)-(C) filed 12-15-2016 as an emergency pursuant to Government Code section 8869.94; operative 12-15-2016 (Register 2016, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-13-2017 or emergency language will be repealed by operation of law on the following day.
14. Editorial correction providing correct placement of subsection (d)(1) (Register 2017, No. 22).
15. Amendment of subsections (d)(1)(A)-(C) refiled 5-30-2017 as an emergency pursuant to Government Code section 8869.94; operative 6-14-2017 (Register 2017, No. 22). A Certificate of Compliance must be transmitted to OAL by 9-12-2017 or emergency language will be repealed by operation of law on the following day.
16. Reinstatement of section as it existed prior to 12-15-2016 emergency amendment by operation of Government Code section 11346.1(f) (Register 2017, No. 38).
17. Amendment of subsections (d)(1)(A)-(C) filed 10-13-2017; operative 10/13/2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 41).