BILL NUMBER: AB 2492 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Alejo
FEBRUARY 19, 2016
An act to amend Sections 62001, 62002, and 62004 of the Government
Code, relating to economic development.
LEGISLATIVE COUNSEL'S DIGEST
AB 2492, as introduced, Alejo. Community revitalization.
The Community Redevelopment Law authorizes the establishment of
redevelopment agencies in communities to address the effects of
blight, as defined, by means of redevelopment projects financed by
the issuance of bonds serviced by tax increment revenues derived from
the project area. Existing law dissolved redevelopment agencies and
community development agencies, as of February 1, 2012, and provides
for the designation of successor agencies to wind down the affairs of
the dissolved agencies and to fulfill the enforceable obligations of
those agencies. Existing law also provides for various economic
development programs that foster community sustainability and
community and economic development initiatives throughout the state.
Existing law authorizes certain local agencies to form a community
revitalization and investment authority (authority) within a
community revitalization and investment area, as defined, to carry
out provisions of the Community Redevelopment Law in that area for
purposes related to, among other things, infrastructure, affordable
housing, and economic revitalization. Existing law requires not less
than 80% of the land calculated by census tracts or census block
groups, as defined by the United States Census Bureau, within the
area to be characterized by several conditions, including a condition
that the land has an annual median household income of less than 80%
of the statewide annual median income.
This bill would authorize the calculation to be made with a
combination of census tracts and census block groups. The bill would
also revise the conditions to require, among other things, an annual
median household income that is less than 80% of the statewide,
countywide, or citywide annual median household income.
Existing law authorizes certain entities that receive ad valorem
property taxes to adopt a resolution in a specified manner to
allocate their share of tax increment funds within the area covered
by a community revitalization plan to the authority.
Existing law authorizes an authority to borrow money, receive
grants, or accept financial or other assistance or investment from
the state or any other public agency for any project within its area
of operation.
This bill would authorize an authority to also receive funds
allocated to it pursuant to a resolution adopted by a city, county,
or special district to transfer these funds from certain tax and
assessment revenues, subject to specified requirements as to the use
of those funds.
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 62001 of the Government Code is amended to
read:
62001. (a) A community revitalization and investment authority is
a public body, corporate and politic, with jurisdiction to carry out
a community revitalization plan within a community revitalization
and investment area. The authority shall be deemed to be the "agency"
described in subdivision (b) of Section 16 of Article XVI of the
California Constitution for purposes of receiving tax increment
revenues. The authority shall have only those powers and duties
specifically set forth in Section 62002.
(b) (1) An authority may be created in any one of the following
ways:
(A) A city, county, or city and county may adopt a resolution
creating an authority. The composition of the governing board shall
be comprised as set forth in subdivision (c).
(B) A city, county, city and county, and special district, as
special district is defined in subdivision (m) of Section 95 of the
Revenue and Taxation Code, or any combination thereof, may create an
authority by entering into a joint powers agreement pursuant to
Chapter 5 (commencing with Section 6500) of Division 7 of Title 1.
(2) (A) A school entity, as defined in subdivision (f) of Section
95 of the Revenue and Taxation Code, may not participate in an
authority created pursuant to this part.
(B) A successor agency, as defined in subdivision (j) of Section
34171 of the Health and Safety Code, may not participate in an
authority created pursuant to this part, and an entity created
pursuant to this part shall not receive any portion of the property
tax revenues or other moneys distributed pursuant to Section 34188 of
the Health and Safety Code.
(3) An authority formed by a city or county that created a
redevelopment agency that was dissolved pursuant to Part 1.85
(commencing with Section 34170) of Division 24 of the Health and
Safety Code shall not become effective until the successor agency or
designated local authority for the former redevelopment agency has
adopted findings of fact stating all of the following:
(A) The agency has received a finding of completion from the
Department of Finance pursuant to Section 34179.7 of the Health and
Safety Code.
(B) No former redevelopment agency assets which are the subject of
litigation against the state, where the city or county or its
successor agency or designated local authority are a named plaintiff,
have been or will be used to benefit any efforts of an authority
formed under this part unless the litigation, has been resolved by
entry of a final judgment by any court of competent jurisdiction and
any appeals have been exhausted.
(C) The agency has complied with all orders of the Controller
pursuant to Section 34167.5 of the Health and Safety Code.
(c) (1) The governing board of an authority created pursuant to
subparagraph (A) of paragraph (1) of subdivision (b) shall be
appointed by the legislative body of the city, county, or city and
county that created the authority and shall include three members of
the legislative body of the city, county, or city and county that
created the authority and two public members. The appointment of the
two public members shall be subject to the provisions of
Section 54974. The two public members shall live or work
within the community revitalization and investment area.
(2) The governing body of the authority created pursuant to
subparagraph (B) of paragraph (1) of subdivision (b) shall be
comprised of a majority of members from the legislative bodies of the
public agencies that created the authority and a minimum of two
public members who live or work within the community revitalization
and investment area. The majority of the board shall appoint the
public members to the governing body. The appointment of the public
members shall be subject to the provisions of
Section 54974.
(d) An authority may carry out a community revitalization plan
within a community revitalization and investment area. Not less than
80 percent of the land calculated by census tracts, or
census block groups, as defined by the United States Census
Bureau, or any combination of both within the area shall
be characterized by both of the following conditions:
(1) An annual median household income that is less than
than, at the option of the authority, 80 percent
of the statewide statewide, countywide, or
citywide annual median income.
(2) Three of the following four conditions:
(A) Nonseasonal unemployment An
unemployment rate that is at least 3 percent
percentage points higher than the statewide
median unemployment, average annual
unemployment rate, as defined by the report on labor market
information published by the Employment Development Department in
January March of the year in which the
community revitalization plan is prepared.
(B) Crime rates rates, as documented by
records maintained by the law enforcement agency that has
jurisdiction in the proposed plan area for violent or property crime
offenses, that are at least 5 percent higher than
the statewide median average crime
rate, rate for violent or property crime
offenses, as defined by the most recent annual report of the
Criminal Justice Statistics Center within the Department of Justice,
when data is available on the California Attorney General's Internet
Web site. The crime rate shall be calculated by taking the local
crime incidents for violent or property crimes, or any offense
within those categories, for the most recent calendar year for which
the Department of Justice maintains data, divided by the
total population of the proposed plan area, multiplied by 100,000. If
the local crime rate for the proposed plan area exceeds the
statewide average rate for either violent or property crime, or any
offense within these categories, by more than 5 percent, then the
condition described in this subparagraph shall be met.
(C) Deteriorated or inadequate infrastructure such as
infrastructure, including streets, sidewalks,
water supply, sewer treatment or processing, and parks.
(D) Deteriorated commercial or residential structures.
(e) As an alternative to subdivision (d), an authority may also
carry out a community revitalization plan within a community
revitalization and investment area established within a former
military base that is principally characterized by deteriorated or
inadequate infrastructure and structures. Notwithstanding subdivision
(c), the governing board of an authority established within a former
military base shall include a member of the military base closure
commission as a public member.
(f) An authority created pursuant to this part 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),
the California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1), and the Political Reform Act
of 1974 (Title 9 (commencing with Section 81000)).
(g) (1) At any time after the authority is authorized to transact
business and exercise its powers, the legislative body or bodies of
the local government or governments that created the authority may
appropriate the amounts the legislative body or bodies deem necessary
for the administrative expenses and overhead of the authority.
(2) The money appropriated may be paid to the authority as a grant
to defray the expenses and overhead, or as a loan to be repaid upon
the terms and conditions as the legislative body may provide. If
appropriated as a loan, the property owners and residents within the
plan area shall be made third-party beneficiaries of the repayment of
the loan. In addition to the common understanding and usual
interpretation of the term, "administrative expense" includes, but is
not limited to, expenses of planning and dissemination of
information.
SEC. 2. Section 62002 of the Government Code is amended to read:
62002. An authority may do all of the following:
(a) Provide funding to rehabilitate, repair, upgrade, or construct
infrastructure.
(b) Provide for low- and moderate-income housing in accordance
with Part 2 (commencing with Section 62100).
(c) Remedy or remove a release of hazardous substances pursuant to
the Polanco Redevelopment Act (Article 12.5 (commencing with Section
33459) of Part 1 of Chapter 4 of Division 24) or Chapter 6.10
(commencing with Section 25403) of Division 20 of the Health and
Safety Code.
(d) Provide for seismic retrofits of existing buildings in
accordance with all applicable laws and regulations.
(e) Acquire and transfer real property in accordance with Part 3
(commencing with Section 62200). The authority shall retain controls
and establish restrictions or covenants running with the land sold or
leased for private use for such the
periods of time and under such the
conditions as are provided in the plan. The establishment of
such these controls is a public purpose under
the provisions of this part.
(f) Issue bonds in conformity with Article 4.5 (commencing with
Section 53506) and Article 5 (commencing with Section 53510) of
Chapter 3 of Part 1 of Division 2 of Title 5.
(g) (1) Borrow money, receive grants, or
accept financial or other assistance or investment from the state or
the federal government or any other public agency or private lending
institution for any project or within its area of
operation, and may comply with any conditions of the loan or grant.
An authority may qualify for funding as a disadvantaged community
pursuant to Section 79505.5 of the Water Code or as defined by
Section 56033.5. An authority may also enter into an agreement with a
qualified community development entity, as defined by Section 45D(c)
of the Internal Revenue Code, to coordinate investments of funds
derived from the New Markets Tax Credit with those of the authority
in instances where coordination offers opportunities for greater
efficiency of investments to improve conditions described in
subdivisions (d) and (e) within the territorial jurisdiction of the
authority.
(2) Receive funds allocated to it pursuant to a resolution adopted
by a city, county, or special district to transfer these funds from
a source described in subdivision (d), (e), or (f) of Section
53398.75, subject to any requirements upon, or imposed by, the city,
county, or special district as to the use of these funds.
(h) Adopt a community revitalization and investment plan pursuant
to Sections 62003 and 62004.
(i) Make loans or grants for owners or tenants to improve,
rehabilitate, or retrofit buildings or structures within the plan
area.
(j) Construct foundations, platforms, and other like structural
forms necessary for the provision or utilization of air rights sites
for buildings to be used for residential, commercial industrial, or
other uses contemplated by the revitalization plan.
(k) Provide direct assistance to businesses within the plan area
in connection with new or existing facilities for industrial or
manufacturing uses, except as specified in this division.
SEC. 3. Section 62004 of the Government Code is amended to read:
62004. (a) The authority shall consider adoption of the plan at
three public hearings that shall take place at least 30 days apart.
At the first public hearing, the authority shall hear all written and
oral comments but take no action. At the second public hearing, the
authority shall consider any additional written and oral comments and
take action to modify or reject the plan. If the plan is not
rejected at the second public hearing, then the authority shall
conduct a protest proceeding at the third public hearing to consider
whether the property owners and residents within the plan area wish
to present oral or written protests against the adoption of the plan.
(b) The draft plan shall be made available to the public and to
each property owner within the area at a meeting held at least 30
days prior to the notice given for the first public hearing. The
purposes of the meeting shall be to allow the staff of the authority
to present the draft plan, answer questions about the plan, and
consider comments about the plan.
(c) (1) Notice of the meeting required by subdivision (b) and the
public hearings required by this subdivision shall be given in
accordance with subdivision (k). (j).
The notice shall do all of the following, as applicable:
(A) Describe specifically the boundaries of the proposed area.
(B) Describe the purpose of the plan.
(C) State the day, hour, and place when and where any and all
persons having any comments on the proposed plan may appear to
provide written or oral comments to the authority.
(D) Notice of second public hearing shall include a summary of the
changes made to the plan as a result of the oral and written
testimony received at or before the public hearing and shall identify
a location accessible to the public where the plan proposed to be
presented and adopted at the second public hearing can be reviewed.
(E) Notice of the third public hearing to consider any written or
oral protests shall contain a copy of the final plan adopted pursuant
to subdivision (a), and shall inform the property owner and resident
of his or her right to submit an oral or written protest before the
close of the public hearing. The protest may state that the property
owner or resident objects to the authority taking action to implement
the plan.
(2) At the third public hearing, the authority shall consider all
written and oral protests received prior to the close of the public
hearing and shall terminate the proceedings or adopt the plan subject
to confirmation by the voters at an election called for that
purpose. The authority shall terminate the proceedings if there is a
majority protest. A majority protest exists if protests have been
filed representing over 50 percent of the combined number of property
owners and residents in the area who are at least 18 years of age.
An election shall be called if between 25 percent and 50 percent of
the combined number of property owners and residents in the area who
are at least 18 years of age file a protest.
(d) An election required pursuant to paragraph (2) of subdivision
(c) shall be held within 90 days of the public hearing and may be
held by mail-in ballot. The authority shall adopt, at a duly noticed
public hearing, procedures for this election.
(e) If a majority of the property owners and residents vote
against the plan, then the authority shall not take any further
action to implement the proposed plan. The authority shall not
propose a new or revised plan to the affected property owners and
residents for at least one year following the date of an election in
which the plan was rejected.
(f) At the hour set in the notice required by subdivision (a), the
authority shall consider all written and oral comments.
(g) If less than 25 percent of the combined number of property
owners and residents in the area who are at least 18 years of age
file a protest, the authority may adopt the plan at the conclusion of
the third public hearing by ordinance. The ordinance adopting the
plan shall be subject to referendum as prescribed by law.
(h) For the purposes of Section 62005, the plan shall be the plan
adopted pursuant to this section.
(i) The authority shall consider and adopt an amendment or
amendments to a plan in accordance with the provisions of this
section.
(j) The authority shall post notice of each meeting or public
hearing required by this section in an easily identifiable and
accessible location on the authority's Internet Web site and shall
mail a written notice of the meeting or public hearing to each owner
of land and each resident at least 10 days prior to the meeting or
public hearing.
(1) Notice of the first public hearing shall also be published not
less than once a week for four successive weeks prior to the first
public hearing in a newspaper of general circulation published in the
county in which the area lies.
(2) Notice of the second public hearing shall also be published
not less than 10 days prior to the second public hearing in a
newspaper of general circulation in the county in which the area
lies.
(3) Notice of the third public hearing shall also be published not
less than 10 days prior to the third public hearing in a newspaper
of general circulation in the county in which the area lies.