Bill Text: CA AB1234 | 2011-2012 | Regular Session | Amended

California Assembly Bill 1234 (Prior Session Legislation)

Bill Title: Redevelopment agencies: financing.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-02-01 - Died pursuant to Art. IV, Sec. 10(c) of the Constitution. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1234 Detail]

Download: California-2011-AB1234-Amended.html

BILL NUMBER: AB 1234	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 31, 2011

INTRODUCED BY   Assembly Member Norby

                        FEBRUARY 18, 2011

   An act to amend Section 33671 of  , and to add Section 33609
to,  the Health and Safety Code, relating to redevelopment.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1234, as amended, Norby. Redevelopment  : tax increment
funds: payment of indebtedness.   agencies: financing.
 
   (1) The Community Redevelopment Law authorizes the establishment
of redevelopment agencies in communities to address the effects of
blight, as defined, and to utilize various types of financing for
that purpose.  
   This bill would prohibit redevelopment agencies from using
specified revenue for the promotion, recruitment, or retention of any
professional sports team, or any related activity, as defined or for
the development, planning, design, site acquisition, subdivision,
financing, leasing, construction, operation, or maintenance of
infrastructure, as defined, related to the occupancy, recruitment, or
retention of any professional sports team.  
   Existing 
    (2)     The  law authorizes
redevelopment agencies to pay the principal of, and interest on,
indebtedness incurred to finance or refinance redevelopment, from a
portion of property tax revenues diverted from other taxing agencies.
The portion of taxes diverted is the amount attributable to
increases in assessed valuation of property in the redevelopment
project area subsequent to establishment thereof. This method of
financing is commonly known as "tax increment" financing and is
specifically authorized by Section 16 of Article XVI of the
California Constitution. 
   Existing 
    The  law also authorizes a redevelopment agency, in any
redevelopment plan or in the proceedings for the advance of moneys or
the making of loans or the incurring of any indebtedness, to finance
or refinance, in whole or in part, a redevelopment project to
irrevocably pledge its tax increment revenues for the payment of the
principal of, and interest on, these loans, advances, or other
indebtedness.
   This bill would make technical, nonsubstantive changes in those
provisions that authorize a redevelopment agency to pledge its tax
increment revenues for the payment on loans, advances, or other
indebtedness.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 33609 is added to the 
 Health and Safety Code   , to read:  
   33609.  (a) Notwithstanding any other law, a redevelopment agency
shall not use any tax increment revenue, revenue derived from bond
proceeds, or revenue derived from any other financing authorized
pursuant to this part for either of the following:
   (1) The promotion, recruitment, or retention of any professional
sports team, or any related activity.
   (2) The development, planning, design, site acquisition,
subdivision, financing, leasing, construction, operation, or
maintenance of infrastructure related to the occupancy, recruitment,
or retention of any professional sports team.
   (b) For purposes of this section:
   (1) "Related activity" includes, but is not limited to, legal
counsel, lobbying, and any other public relations or promotional
activity.
   (2) "Infrastructure" includes, but is not limited to, a sports
facility and related development, and infrastructure improvements
associated with a sports facility and related development.
   SECTION 1.   SEC. 2.   Section 33671 of
the Health and Safety Code is amended to read:
   33671.  A redevelopment agency may, in a redevelopment plan or in
the proceedings for the advance of moneys, the making of loans, or
the incurring of any indebtedness, whether funded, refunded, assumed,
or otherwise, to finance or refinance, in whole or in part, the
redevelopment project, irrevocably pledge the portion of taxes
specified in subdivision (b) of Section 33670 for the payment of the
principal of and interest on these loans, advances, or other
indebtedness.