Bill Text: CA AB2531 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Redevelopment: economic development.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Vetoed) 2010-09-30 - Vetoed by Governor. [AB2531 Detail]

Download: California-2009-AB2531-Amended.html

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BILL NUMBER: AB 2531	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 2, 2010
	AMENDED IN SENATE  JUNE 23, 2010
	AMENDED IN ASSEMBLY  APRIL 29, 2010
	AMENDED IN ASSEMBLY  APRIL 20, 2010

INTRODUCED BY   Assembly Member Fuentes
   (Principal coauthor: Assembly Member Bradford)

                        FEBRUARY 19, 2010

    An act to amend, repeal, and add Sections 33020, 33021,
33071, 33440, 33444.5, and 33444.6 of, to add and repeal Sections
33131.5 and 33333.9   An act to add and repeal Section
33131.5  of, and to add and repeal Article 10.5 (commencing with
Section 33427) of Chapter 4 of Part 1 of Division 24 of, the Health
and Safety Code, relating to redevelopment.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2531, as amended, Fuentes. Redevelopment: economic development.

   (1) The Community Redevelopment Law authorizes the establishment
of redevelopment agencies in communities in order to address the
effects of blight, as defined, in those communities and requires
those agencies to prepare, or cause to be prepared, and approve a
redevelopment plan for each project area. Existing law defines the
term "redevelopment" for these purposes and specifies the scope of
activities that the term includes. Existing law also makes specified
legislative findings and declarations regarding the fundamental
purposes of redevelopment.
   This bill would  include in the definition of the term
"redevelopment" those activities that result in the provision of
employment opportunities and expand the scope of activities included
in that term. This bill would also make additional legislative
findings and declarations regarding the fundamental purposes of
redevelopment. The bill would additionally authorize the
Community Redevelopment Agency of the City of Los Angeles, at the
request of its legislative body, to prepare applications for, and
execute, economic development programs, to accept public or private
assistance, and to expend those funds for any economic development
activities inside or outside a project area within the territorial
jurisdiction of the agency.  The bill would also authorize a
redevelopment agency to provide assistance for establishment and
maintenance of a small business incubator. This bill would also
prohibit an agency from amending a redevelopment plan to increase or
extend certain required limitations for the purpose of implementing
these provisions. 
   (2) Existing law authorizes an agency to construct foundations,
platforms, and other 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 redevelopment plan. An agency is also authorized to establish a
program under which it loans funds to owners or tenants for the
purpose of rehabilitating commercial buildings or structures within
the project area.
   This bill would expand the agency's programmatic authority by
authorizing it to provide  direct assistance, including, but not
limited to,  loans, financial guarantees, or other financial
assistance to  owners or tenants in a redevelopment project
area   businesses within project areas in connection
with new or existing facilities  for retaining or expanding
employment in the project area, increasing energy efficiency of
buildings in the project area, or for  any  other
 specified  redevelopment  purpose, as specified
  purposes  .
   (3) This bill would repeal its provisions to the extent it
modifies existing law on January 1, 2018, as specified.
   This bill would make legislative findings and declarations as to
the necessity of a special statute for the Community Redevelopment
Agency of the City of Los Angeles.
   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 33020 of the Health and
Safety Code is amended to read:
   33020.  (a) "Redevelopment" means the planning, development,
replanning, redesign, clearance, reconstruction, or rehabilitation,
or any combination of these, of all or part of a survey area, and the
provision of those residential, commercial, industrial, public, or
other structures or spaces as may be appropriate or necessary in the
interest of the general welfare, including recreational and other
facilities incidental or appurtenant to them, activities that result
in the provision of employment opportunities, and payments to school
and community college districts in the fiscal years specified in
Sections 33681, 33681.5, 33681.7, 33681.9, and 33681.12.
   (b) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.  
  SEC. 1.5.   Section 33020 is added to the Health
and Safety Code, to read:
   33020.  (a) "Redevelopment" means the planning, development,
replanning, redesign, clearance, reconstruction, or rehabilitation,
or any combination of these, of all or part of a survey area, and the
provision of those residential, commercial, industrial, public, or
other structures or spaces as may be appropriate or necessary in the
interest of the general welfare, including recreational and other
facilities incidental or appurtenant to them and payments to school
and community college districts in the fiscal years specified in
Sections 33681, 33681.5, 33681.7, 33681.9, and 33681.12.
   (b) This section shall become operative on January 1, 2018.
 
  SEC. 2.    Section 33021 of the Health and Safety
Code is amended to read:
   33021.  (a) Redevelopment includes the following:
   (1) The alteration, improvement, modernization, reconstruction, or
rehabilitation, or any combination of these, of existing structures
in a project area.
   (2) Provision for open-space types of use, such as streets and
other public grounds and space around buildings, and public or
private buildings, structures and improvements, and improvements of
public or private recreation areas and other public grounds.
   (3) The replanning or redesign or original development of
undeveloped areas as to which either of the following conditions
exist:
   (A) The areas are stagnant or improperly utilized because of
defective or inadequate street layout, faulty lot layout in relation
to size, shape, accessibility, or usefulness, or for other causes.
   (B) The areas require replanning and land assembly for reclamation
or development in the interest of the general welfare because of
widely scattered ownership, tax delinquency, or other reasons.
    (4) The provision of direct assistance to businesses in
connection with new or existing facilities within redevelopment
project areas for industrial or manufacturing uses. Direct assistance
may include, but is not limited to, loans, loan guarantees, and
other financial assistance, and the provision or replacement of
machinery and equipment in those facilities, where the assistance is
reasonably expected to either result in the retention or expansion of
the number of persons employed in industrial or manufacturing jobs,
or achieve any of the following:
   (A) Reduce emissions of greenhouse gases.
   (B) Increase the use of clean, renewable, or alternative energy.
   (C) Increase energy efficiency.
   (D) Increase the use of recycled and locally sourced materials.
   (E) Increase efficiency in water, wastewater, and stormwater
systems.
   (F) Increase the efficiency of construction methods.
   (G) Reduce demolition- and construction-induced pollution and
waste material generation.
   (H) Improve indoor air quality.
   (I) Reduce building operation costs through increased operation
and maintenance efficiency.
   (J) Reduce public infrastructure costs related to development.
   (5) Job training, job placement, apprenticeship and
preapprenticeship programs relating to construction or to operations
of businesses in project areas.
   (b) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.  
  SEC. 2.5.    Section 33021 is added to the Health
and Safety Code, to read:
   33021.  (a) Redevelopment includes the following:
   (1) The alteration, improvement, modernization, reconstruction, or
rehabilitation, or any combination of these, of existing structures
in a project area.
   (2) Provision for open-space types of use, such as streets and
other public grounds and space around buildings, and public or
private buildings, structures and improvements, and improvements of
public or private recreation areas and other public grounds.
   (3) The replanning or redesign or original development of
undeveloped areas as to which either of the following conditions
exist:
   (A) The areas are stagnant or improperly utilized because of
defective or inadequate street layout, faulty lot layout in relation
to size, shape, accessibility, or usefulness, or for other causes.
   (B) The areas require replanning and land assembly for reclamation
or development in the interest of the general welfare because of
widely scattered ownership, tax delinquency, or other reasons.
   (b) This section shall become operative on January 1, 2018.
 
  SEC. 3.    Section 33071 of the Health and Safety
Code is amended to read:
   33071.  (a) The Legislature further finds and declares that a
fundamental purpose of redevelopment is to expand the supply of low-
and moderate-income housing, to expand employment opportunities for
jobless, underemployed, and low-income persons, to attract and retain
businesses in order to enhance employment opportunities, and to
provide an environment for the social, economic, and psychological
growth and well-being of all citizens.
   (b) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.  
  SEC. 3.5.    Section 33071 is added to theHealth
and Safety Code, to read:
   33071.  (a) The Legislature further finds and declares that a
fundamental purpose of redevelopment is to expand the supply of low-
and moderate-income housing, to expand employment opportunities for
jobless, underemployed, and low-income persons, and to provide an
environment for the social, economic, and psychological growth and
well-being of all citizens.
   (b) This section shall become operative on January 1, 2018.

   SEC. 4.   SECTION 1.   Section 33131.5
is added to the Health and Safety Code, to read:
   33131.5.  (a) In addition to authority otherwise provided in this
part, the Community Redevelopment Agency of the City of Los Angeles,
at the request of its legislative body, may do both of the following:

   (1) Prepare applications for various state and federal grant
programs relating to economic development, plan and carry out those
programs and expend grant funds inside or outside any redevelopment
project area within the territorial jurisdiction of the agency, and
comply with any conditions of the program.
   (2) Accept any other assistance from the state or federal
government or any public or private source, spend those funds for any
economic development activities inside or outside any redevelopment
project area within the territorial jurisdiction of the agency, and
comply with any conditions of that assistance.
   (b) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date. 
  SEC. 5.    Section 33333.9 is added to the Health
and Safety Code, to read:
   33333.9.  (a) An agency shall not amend a redevelopment plan to
increase or extend the limits imposed pursuant to Section 33333.2,
33333.4, or 33333.6 for the purpose of implementing the authority
granted by the act adding this section.
   (b) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.  
  SEC. 6.    Article 10.5 (commencing with Section
33427) is added to Chapter 4 of Part 1 of Division 24 of the Health
and Safety Code, to read:

      Article 10.5.  Small Business Development


   33427.  (a) In addition to any other authority granted under this
part, an agency may, within a project area, for the purposes of
redevelopment, assist public agencies or private nonprofit
corporations to establish, construct, and maintain a small business
incubator.
   (b) In addition to any other authority granted under this part, an
agency may, for the purposes of redevelopment, provide loan
guarantees for small businesses located within a project area.
   (c) For the purposes of this section, "small business" shall have
the same meaning as defined in Section 11342.610 of the Government
Code.
   33428.  This article shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.  
  SEC. 7.    Section 33440 of the Health and Safety
Code is amended to read:
   33440.  (a) Except as provided in Article 9 (commencing with
Section 33410), Article 10.5 (commencing with Section 33427), or
Section 33444.6, this part does not authorize an agency to construct
any of the buildings for residential, commercial, industrial, or
other use contemplated by the redevelopment plan, except that, in
addition to its powers under Section 33445, an agency may 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 redevelopment plan.
   (b) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.  
  SEC. 7.5.    Section 33440 is added to theHealth
and Safety Code, to read:
   33440.  (a) Except as provided in Article 9 (commencing with
Section 33410), this part does not authorize an agency to construct
any of the buildings for residential, commercial, industrial, or
other use contemplated by the redevelopment plan, except that, in
addition to its powers under Section 33445, an agency may 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 redevelopment plan.
   (b) This section shall become operative on January 1, 2018.
 
  SEC. 8.    Section 33444.5 of the Health and
Safety Code is amended to read:
   33444.5.  (a) An agency may establish a program under which it
provides loans, financial guarantees, or other financial assistance
to owners or tenants in a redevelopment project area, for any of the
following purposes:
   (1) Rehabilitating commercial buildings or structures within the
project area.
   (2) Retaining or expanding employment in the project area.
   (3) Increasing energy efficiency of buildings in the project area.

   (4) Any other redevelopment purpose specified in Section 33021.
   (b) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.  
  SEC. 8.5.    Section 33444.5 is added to theHealth
and Safety Code, to read:
   33444.5.  (a) An agency may establish a program under which it
loans funds to owners or tenants for the purpose of rehabilitating
commercial buildings or structures within the project area.
   (b) This section shall become operative on January 1, 2018.
 
  SEC. 9.    Section 33444.6 of the Health and
Safety Code is amended to read:
   33444.6.  (a)  Within a project area and as part of an agreement
that provides for the development, rehabilitation, or use of property
that will be used for industrial or manufacturing purposes, an
agency may assist with the financing of facilities or capital
equipment, including, but not necessarily limited to, pollution
control devices.
   (b) In addition to any other authority granted pursuant to this
part, an agency may, for the purposes of redevelopment, construct
buildings for industrial or manufacturing purposes that meet the
criteria in paragraph (4) of subdivision (a) of Section 33021.
   (c) Prior to entering into an agreement for a development that
will be assisted pursuant to this section, the agency shall find,
after a public hearing, that the assistance is necessary for the
economic feasibility of the development and that the assistance
cannot be obtained on economically feasible terms in the private
market.
   (d) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.  
  SEC. 9.5.    Section 33444.6 is added to the
Health and Safety Code, to read:
   33444.6.  (a)  Within a project area and as part of an agreement
that provides for the development or rehabilitation of property that
will be used for industrial or manufacturing purposes, an agency may
assist with the financing of facilities or capital equipment,
including, but not necessarily limited to, pollution control devices.

   (b)  Prior to entering into an agreement for a development that
will be assisted pursuant to this section, the agency shall find,
after a public hearing, that the assistance is necessary for the
economic feasibility of the development and that the assistance
cannot be obtained on economically feasible terms in the private
market.
   (c) This section shall become operative on January 1, 2018.
 
  SEC. 10.    The Legislature finds and declares
that the purpose of this act is to clarify existing law and to
provide agencies with additional authority to assist businesses in
order to encourage the retention of existing employment opportunities
and the attraction of new employment opportunities. Nothing in this
act shall be construed as limiting or restricting the authority that
an agency possessed prior to the effective date of this act.

   SEC. 2.    Article 10.5 (commencing with Section
33427) is added to Chapter 4 of Part 1 of Division 24 of the 
 Health and Safety Code   , to read:  

      Article 10.5.  Direct Assistance for Business and Job
Development Programs


   33427.  (a) In addition to any other authority granted under this
part, an agency may, within a project area, for the purposes of
redevelopment, carry out activities and programs pursuant to this
article.
   (b) The Legislature finds and declares that the purpose of this
article is to clarify existing law and to provide agencies with
additional temporary authority to assist businesses in order to
encourage the retention of existing employment opportunities and the
attraction of new employment opportunities.
   (c) Nothing in this article shall be construed as limiting or
restricting the authority that an agency possessed prior to January
1, 2011.
   33427.1.  (a) On or before July 1 of each fiscal year during which
an agency proposes to carry out activities and programs pursuant to
this article, the legislative body shall adopt a resolution
authorizing the agency to carry out those activities and programs
during that fiscal year.
   (b) The legislative body's resolution shall find, based on
substantial evidence in the record, all of the following:
   (1) The community has adopted a housing element that the
department has determined pursuant to Section 65585 of the Government
Code to be in substantial compliance with the requirements of
Article 10.6 (commencing with Section 65580) of Chapter 3 of Division
1 of Title 7 of the Government Code.
   (2) During the three fiscal years prior to the year in which the
agency proposes to carry out activities and programs pursuant to this
article, the agency has not been included in the list of agencies
that have not corrected a major audit violation compiled pursuant to
subdivision (b) Section 33080.8.
   (3) The agency has not accumulated an excess surplus in its Low
and Moderate Income Housing Fund. As used in this paragraph, "excess
surplus" has the same meaning as in Section 33334.12.
   33427.2.  (a) An agency may provide direct assistance to
businesses within project areas in connection with new or existing
facilities for industrial or manufacturing uses.
   (b) Direct assistance may include, but is not limited to, loans,
loan guarantees, and other financial assistance.
   (c) Direct assistance may also include the provision or
replacement of machinery and equipment in new or existing facilities
for industrial or manufacturing uses where the assistance is
reasonably expected to result in either of the following:
   (1) The retention or expansion of the number of persons employed
in industrial or manufacturing jobs within that project area.
   (2) Any of the following:
   (A) Reduced emissions of greenhouse gases.
   (B) Increased use of clean, renewable, or alternative energy.
   (C) Increased energy efficiency.
   (D) Increased use of recycled and locally sourced materials.
   (E) Increased efficiency in water, wastewater, and stormwater
systems.
   (F) Increased efficiency of construction methods.
   (G) Reduced demolition- and construction-induced pollution and
waste material generation.
   (H) Improved indoor air quality.
   (I) Reduced building operation costs through increased operation
and maintenance efficiency.
   (J) Reduced public infrastructure costs related to development.
   (d) When providing direct assistance to businesses pursuant to
this section, an agency shall impose covenants and other restrictions
that require the machinery, equipment, and other property to remain
within the project areas for the duration of the direct assistance,
including, but not limited to, the duration of the loans, loan
guarantees, and other financial assistance.
   33427.3.  An agency may provide job training, job placement,
apprenticeship, and preappenticeship programs relating to
construction or to operations of businesses within project areas.
   33427.4.  (a) An agency may assist public agencies or private
nonprofit corporations to establish, construct, and maintain one or
more small business incubators within project areas.
   (b) An agency may provide loan guarantees for small businesses
within project areas.
   (c) As used in this section, "small business" has the same meaning
as defined in Section 11342.610 of the Government Code.
   33427.5.  An agency may establish a program to provide loans,
financial guarantees, or other financial assistance to owners or
tenants within project areas for any of the following:
   (a) Rehabilitating commercial buildings or structures in project
areas.
   (b) Retaining or expanding employment within project areas.
   (c) Increasing the energy efficiency of buildings within project
areas.
   (d) Any of the purposes specified in paragraph (2) of subdivision
(c) of Section 33427.2.
   33427.6.  An agency may construct buildings for industrial or
manufacturing purposes within project areas if the construction meets
any of the purposes specified in paragraph (2) of subdivision (c) of
Section 33427.2.
   33428.  An agency shall not amend a redevelopment plan to increase
or extend the limits imposed pursuant to Section 33333.2, 33333.4,
or 33333.6 for the purpose of implementing this article.
   33428.1.  An agency that carries out activities and programs
pursuant to this article shall report the amount of money, regardless
of source, that it spent in each project area for those activities
and programs. This information shall be contained in the annual
fiscal statement required by Section 33080.5.
   33428.2.  On or before January 1, 2012, the Legislative Analyst
shall design a study to measure and evaluate the effectiveness of
this article. The study date shall do all of the following:
   (a) Describe the specific categories and formats of the
information that the Legislative Analyst needs to measure.
   (b) Evaluate the effectiveness of this article.
   (c) Include a reporting form that agencies shall use to comply
with Section 33428.3.
   33428.3.  On or before December 1, 2016, an agency that carries
out activities and programs pursuant to this article shall submit to
the Legislative Analyst's Office a report that describes those
efforts within each project area for each fiscal year after January
1, 2011 and before July 1, 2016. The report shall include any
information which the Legislative Analyst determines he or she needs
to measure and evaluate the effectiveness of this article. The report
shall be in the form determined by the Legislative Analyst pursuant
to Section 33428.2.
   33428.4.  On or before January 1, 2017, and consistent with
Section 9795 of the Government Code, the Legislative Analyst shall
report to the Legislature on how agencies used the authority provided
by this article. The report shall include recommendations for
modifying or extending this article.
   33428.5.  This article shall remain in effect only until January
1, 2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date. 
   SEC. 11.   SEC. 3.   The Legislature
finds and declares, with respect to Section  4  
1  of this act, that a special law is necessary and that a
general law cannot be made applicable within the meaning of Section
16 of Article IV of the California Constitution because of the unique
circumstances, needs, and challenges of the Community Redevelopment
Agency of the City of Los Angeles.