BILL NUMBER: AB 2531 AMENDED
BILL TEXT
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 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 loans, financial guarantees, or other
financial assistance to owners or tenants in a redevelopment project
area for retaining or expanding employment in the project area,
increasing energy efficiency of buildings in the project area, or for
any other redevelopment purpose, as specified.
(3) This bill would repeal its provisions to the extent it
modifies existing law on January 1, 2016
2018 , as specified.
(4) This bill would make legislative findings and declarations as
to the necessity for 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,
2016 2018 , and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2016 2018 , deletes or
extends that date.
SEC. 1.5. Section 33020 is added to the Government
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,
2016 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,
including 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, provided 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 and
, 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 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 , and services relating
to construction or to operations of businesses in project areas.
(b) This section shall remain in effect only until January 1,
2016 2018 , and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2016 2018 , deletes or
extends that date.
SEC. 2.5. Section 33021 is added to the Government
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,
2016 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,
2016 2018 , and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2016 2018 , deletes or
extends that date.
SEC. 3.5. Section 33071 is added to the Government
Health 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,
2016 2018 .
SEC. 4. 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,
2016 2018 , and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2016 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,
2016 2018 , and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2016 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,
2016 2018 , and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2016 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,
2016 2018 , and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2016 2018 , deletes or
extends that date.
SEC. 7.5. Section 33440 is added to the Government
Health 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,
2016 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,
2016 2018 , and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2016 2018 , deletes or
extends that date.
SEC. 8.5. Section 33444.5 is added to the Government
Health 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,
2016 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 subdivision (e) of Section 33021.
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,
2016 2018 , and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2016 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,
2016 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. 11. The Legislature finds and declares, with respect to
Section 4 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.