BILL NUMBER: SB 49	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Migden

                        JANUARY 3, 2007

   An act to add Section 53084.5 to the Government Code, and to add
Section 33426.8 to the Health and Safety Code, relating to local
government.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 49, as introduced, Migden. Local government: financial
assistance: sports franchises.
   Existing law prohibits a local agency or redevelopment agency from
providing any form of financial assistance to specified business
entities when a business entity is relocating from the territorial
jurisdiction of one local agency to another within the same market
area, as specified.
   This bill would prohibit a local agency or redevelopment agency
from providing financial assistance to a sports stadium project that
involves the relocation of a professional sports franchise from the
territorial jurisdiction of one local agency to another within the
same market area, as specified. The bill would provide that this
prohibition does not apply to local agency assistance in the
construction of public improvements that serve all or a portion of
the jurisdiction of the local agency, as specified, and would provide
the home local agency, as defined, the right to assert a violation
of these provisions as a claim or defense in judicial proceedings.
   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 53084.5 is added to the Government Code, to
read:
   53084.5.  (a) Notwithstanding any other provision of law, except
as provided in subdivision (b), a local agency shall not provide any
form of financial assistance to a sports stadium project that
involves a professional sports franchise relocating from the
territorial jurisdiction of a home local agency to the territorial
jurisdiction of another local agency but within the same market area.

   (b) This section shall not apply to local agency assistance in the
construction of public improvements that serve all or a portion of
the jurisdiction of the local agency, that provide significant
community benefits to an area larger than the site of the sports
stadium project, and that are not required to be constructed as a
condition of developing the sports stadium project. This section
shall not prohibit assistance in the construction of public
improvements that are being constructed for a development other than
the sports stadium project.
   (c) The home local agency shall have the right to assert a
violation of this section as a claim or defense in a judicial
proceeding and obtain injunctive, declaratory, or other appropriate
relief to enforce this section.
   (d) As used in this section:
   (1) "Financial assistance" includes, but is not limited to, any of
the following:
   (A) Any bonds or other forms of indebtedness, including, but not
limited to, any tax allocation bonds or any other provision of tax
increment, whether on a pay-as-you-go basis or otherwise.
   (B) Any loans, grants, subsidies, guaranties, or payments for any
costs of the sports stadium project or the use of the sports stadium.

   (C) Any lease or license of real property, or an interest in real
property, at less than its fair market value, including, but not
limited to, any rent credits or free rent period.
   (D) Any sale or other conveyance of real property, or an interest
in real property, at less than the fair market value.
   (E) Any tax incentive, including, but not limited to, tax
exemptions, credits, rebates, reductions, or moratoria, including any
payment based on the amount of taxes generated by the sports stadium
project.
   (F) Any acquisition of real property or any interest in real
property to facilitate the assembly of the site for the sports
stadium project, including any acquisition, by voluntary sale or
otherwise, with public funds or with funds provided by the
professional sports franchise or any of its development partners.
   (G) Any payment for, or forgiveness of, or reduction in fees.
   (H) Any approval to provide for tax-exempt financing of any part
of the sports stadium project, including, but not limited to, any
bonds created by or recognized under any provision of the Internal
Revenue Code that allow private entities to use the proceeds of
tax-exempt bonds, such as industrial development bonds or any other
economic development conduit revenue bonds.
   (I) Any other form of direct or indirect financial assistance to
the professional sports franchise, any of its developer partners, or
any of their affiliates, contractors, or agents in connection with
the sports stadium project.
   (2) "Home local agency" means the local agency that has
jurisdiction over territory in which there is a sports stadium that
the professional sports franchise has played its home games in for
more than 30 years and where the professional sports franchise has
incorporated the name of the home local agency in the name by which
the franchise is commonly known.
   (3) "Local agency" means a chartered or general law city, a
chartered or general law county, or a city and county. "Local agency"
does not include a redevelopment agency that is subject to Section
33426.8 of the Health and Safety Code.
   (4) "Market area" means either (i) a geographic area that is
recognized by the National Football League as the territory for a
professional sports franchise or (ii) any other larger geographic
area that is described in publications of bond rating agencies or
independent and reputable sports market research organizations as the
relevant market for the professional sports franchise. A "market
area" shall not extend further than 100 miles, as measured by the
most reasonable route on roads between two points, starting from the
sports stadium from which the professional sports franchise is
relocating and ending at the facility outside the home local agency
to which the professional sports franchise is relocating.
   (5) "Professional sports franchise" means a franchise or other
entity operated for the exhibition of National Football League games,
and any affiliate organized to develop or operate a sports stadium.
   (6) "Relocating" means the termination of exhibitions of home
games by a professional sports franchise in a sports stadium in the
territory of the home local agency and the commencement of
performances of home games by a professional sports franchise in
another sports stadium located outside the territory of the home
local agency and developed as part of a sports stadium project.
   (7) "Sports stadium" means a stadium, arena, pavilion, or other
structure or building used for holding professional athletic events.
   (8) "Sports stadium project" means the proposed construction,
improvement, renovation, development, entitlement, site assembly,
operation, maintenance, repair, use, management, or financing of a
sports stadium or any related uses outside of the home local agency,
including, without limitation, any residential, commercial, parking,
open space, and other uses developed in connection with the sports
stadium regardless of whether these uses are located in the vicinity
of the sports stadium, and any infrastructure proposed to be
developed in connection with a sports stadium or other related uses,
including, without limitation, highways, interchanges, ramps,
streets, and other transportation and transit improvements,
utilities, parks, recreational facilities, and open space.
  SEC. 2.  Section 33426.8 is added to the Health and Safety Code, to
read:
   33426.8.  (a) Notwithstanding any other provision of law, except
as provided in subdivision (b), a redevelopment agency shall not
provide any form of financial assistance to a sports stadium project
that involves a professional sports franchise relocating from the
territorial jurisdiction of one local agency to the territorial
jurisdiction of another local agency but within the same market area.

   (b) This section shall not apply if the governing legislative body
of the community from which the professional sports franchise is
relocating adopts a resolution declaring that the community does not
object to the relocation.
   (c) The home local agency shall have the right to assert a
violation of this section as a claim or defense in a judicial
proceeding and obtain injunctive, declaratory, or other appropriate
relief to enforce this section.
   (d) As used in this section:
   (1) "Community" has the same meaning as specified in Section
33002.
   (2) "Territorial jurisdiction" has the meaning as specified in
Section 33120.
   (3) "Financial assistance" includes, but is not limited to, any of
the following:
   (A) Any bonds or other forms of indebtedness, including, but not
limited to, any tax allocation bonds or any other provision of tax
increment, whether on a pay-as-you-go basis or otherwise.
   (B) Any loans, grants, subsidies, guaranties, or payments for any
costs of the sports stadium project or the use of the sports stadium.

   (C) Any lease or license of real property, or an interest in real
property, at less than its fair market value, including, but not
limited to, any rent credits or free rent period.
   (D) Any sale or other conveyance of real property, or an interest
in real property, at less than the fair market value.
   (E) Any tax incentive, including, but not limited to, tax
exemptions, credits, rebates, reductions, or moratoria, including any
payment based on the amount of taxes generated by the sports stadium
project.
   (F) Any acquisition of real property or any interest in real
property to facilitate the assembly of the site for the sports
stadium project, including any acquisition, by voluntary sale or
otherwise, with public funds or with funds provided by the
professional sports franchise or any of its development partners.
   (G) Any payment for, or forgiveness of, or reduction in fees.
   (H) Any approval to provide for tax-exempt financing of any part
of the sports stadium project, including, but not limited to, any
bonds created by or recognized under any provision of the Internal
Revenue Code that allow private entities to use the proceeds of
tax-exempt bonds, such as industrial development bonds or any other
economic development conduit revenue bonds.
   (I) Any other form of direct or indirect financial assistance to
the professional sports franchise, any of its developer partners, or
any of their affiliates, contractors, or agents in connection with
the sports stadium project.
   (4) "Home local agency" means the local agency that has
jurisdiction over territory in which there is a sports stadium that
the professional sports franchise has played its home games in for
more than 30 years and where the professional sports franchise has
incorporated the name of the home local agency in the name by which
the franchise is commonly known.
   (5) "Local agency" means a chartered or general law city, a
chartered or general law county, or a city and county.
   (6) "Market area" means either (i) a geographic area that is
recognized by the National Football League as the territory for a
professional sports franchise or (ii) any other larger geographic
area that is described in publications of bond rating agencies or
independent and reputable sports market research organizations as the
relevant market for the professional sports franchise. A "market
area" shall not extend further than 100 miles, as measured by the
most reasonable route on roads between two points, starting from the
sports stadium from which the professional sports franchise is
relocating and ending at the facility outside the home local agency
to which the professional sports franchise is relocating.
   (7) "Professional sports franchise" means a franchise or other
entity operated for the exhibition of National Football League games,
and any affiliate organized to develop or operate a sports stadium.
   (8) "Relocating" means the termination of exhibitions of home
games by a professional sports franchise in a sports stadium in the
territory of the home local agency and the commencement of
performances of home games by a professional sports franchise in
another sports stadium located outside the territory of the home
local agency and developed as part of a sports stadium project.
   (9) "Sports stadium" means a stadium, arena, pavilion, or other
structures or buildings used for holding professional athletic
events.
   (10) "Sports stadium project" means the proposed construction,
improvement, renovation, development, entitlement, site assembly,
operation, maintenance, repair, use, management, or financing of a
sports stadium or any related uses outside of the home local agency,
including, without limitation, any residential, commercial, parking,
open space, and other uses developed in connection with the sports
stadium regardless of whether these uses are located in the vicinity
of the sports stadium, and any infrastructure proposed to be
developed in connection with a sports stadium or other related uses,
including, without limitation, highways, interchanges, ramps,
streets, and other transportation and transit improvements,
utilities, parks, recreational facilities, and open space.
  SEC. 3.  (a) The Legislature finds and declares that the provision
of financial assistance by local agencies and community redevelopment
agencies to relocate professional sports franchises from one
community to another community results in the loss of public funds
available for public purposes, impedes the implementation of sound
land use and economic development planning, encourages unfair
economic competition among communities, and does not result in public
benefits to the people of the state.
   (b) The Legislature further finds and declares that promoting
regional economic stability by limiting financial assistance to
facilitate the relocation of professional sports franchises is an
issue of statewide concern and not a municipal affair. The
Legislature further finds that competition among public agencies to
locate a professional sports franchise distorts rational
decisionmaking about how to allocate scarce public resources in the
best interests of the various regions of the state. Therefore, it is
necessary that the provisions of this act apply to all cities,
counties, and cities and counties.