BILL NUMBER: AB 2531 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 12, 2010
PASSED THE ASSEMBLY AUGUST 27, 2010
AMENDED IN SENATE AUGUST 3, 2010
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 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, 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, until January 1, 2018, 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.
(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, until January 1, 2018, 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 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 other
specified redevelopment purposes. This bill would specify that these
programs constitute redevelopment, as defined.
(3) 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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
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. 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. Those activities and programs shall constitute redevelopment
as prescribed in Sections 33020 and 33021.
(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. For the 2010-11 fiscal year only, the
legislative body shall adopt the resolution required by this
subdivision on or before February 1, 2011.
(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 for the
acquisition of machinery, equipment, or other personal property
pursuant to this section, an agency shall impose covenants or other
restrictions that require the machinery, equipment, and other
personal property to remain within the project areas for either the
term of the agreement providing the direct assistance or the useful
life of the machinery, equipment, or other personal property, as
determined by the agency.
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, after consultation with interested parties, design a study to
measure and evaluate the effectiveness of this article in retaining
or expanding employment opportunities within project areas and
improving the energy efficiency of buildings and development within
project areas. 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. 3. The Legislature finds and declares, with respect to
Section 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.