BILL NUMBER: SB 93 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 28, 2009
AMENDED IN SENATE MARCH 10, 2009
INTRODUCED BY Senator Kehoe
JANUARY 22, 2009
An act to amend Section 33445 of , and to add Sections
33445.1 and 33505 to, the Health and Safety Code, relating to
redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
SB 93, as amended, Kehoe. Redevelopment: payment for land or
buildings.
The Community Redevelopment Law requires
authorizes a redevelopment agency , with the consent of the
legislative body, to make specified findings if the
agency pays pay all or a part of the value of
the land for, and the cost of the installation and construction of,
any building, facility, structure, or other improvement that is
publicly owned either within or without the project area if the
legislative body makes specified determinations .
These determinations by the agency and the local legislative body are
final and conclusive. An agency is authorized to enter into
a contract with the community or other public corporation when the
value of the land or the cost of the installation and construction of
the building, facility, structure, or other improvement, or both,
has been, or will be, paid or provided for initially by the community
or other public corporation, and the agency agrees to reimburse, the
community or other public corporation. An agency may contract with
the community when the land has been or will be acquired by, or the
cost of the installation and construction of the building, facility,
structure, or other improvement has been paid by, a parking
authority, joint powers entity, or other public corporation to
provide a building, facility, structure, or other improvement that
has been or will be leased to the community. Existing
law requires the agency, with respect to the financing, acquisition,
or construction of a transportation, collection, and distribution
system and related peripheral parking facilities, in a county with a
population of 4 million persons or more, to enter into an agreement
with the rapid transit district that includes the county, or a
portion thereof, under which the rapid transit district is required
to be given specified responsibilities.
This bill would require instead authorize
a redevelopment agency , with the consent of the
legislative body, to make specified findings, based on
substantial evidence in the record, if the agency pays
pay all or a part of the value of the land for, and the
cost of the installation and construction of, any building, facility,
structure, or other improvement that is publicly owned
either within or without and is located inside or
contiguous to, as defined, the project area if the
legislative body makes specified findings based on substantial
evidence in the record . These findings would not be
final and conclusive. An agency would no longer be authorized to
enter into a contract with a public corporation other than the
community for the value of the land or the cost of the installation
and construction of the building, facility, structure, or other
improvement, or both. The bill would provide that an agency may
contract with the community prior to January 1, 2010, when the land
has been or will be acquired by, or the cost of the installation and
construction of the building, facility, structure, or other
improvement has been paid by, a parking authority, joint powers
entity, or other public corporation to provide a building, facility,
structure, or other improvement that has been or will be leased to
the community. The bill would delete the requirement
that the agency, with respect to the financing, acquisition, or
construction of a transportation, collection, and distribution system
and related peripheral parking facilities, in a county with a
population of 4 million persons or more, enter into an agreement with
the rapid transit district that includes the county, or a portion
thereof, under which the rapid transit district is required to be
given specified responsibilities. The bill would authorize an agency
to pay for all or part of the value of the land for, and the cost of
the installation and construction of, any building, facility,
structure, or other improvement that is publicly owned and is
partially located in the project area, but extends beyond the project
area's boundaries, if the legislative body makes specified findings.
The bill would also authorize an agency, with the consent of the
legislative body, to pay all or a part of the value of the land for,
and the cost of the installation and construction of any building,
facility, structure, or other improvement that is publicly owned and
is located outside and not contiguous to the project area, but is
located within the community, if the legislative body makes specified
findings based on substantial evidence in the record. The bill would
prohibit an agency from paying for the normal maintenance or
operations of buildings, facilities, structures, or other
improvements that are publicly owned.
The bill would also prohibit the agency and legislative body from
authorizing or approving the settlement of specified judicial actions
that contest the validity of the adoption or amendment of a
redevelopment plan if the settlement requires the expenditure of
funds outside the project area unless the agency and the legislative
body have first held a public hearing on the proposed settlement, as
specified. The bill would provide specified notice requirements and
procedures for the public hearing, and require that copies of the
proposed settlement be made available for public inspection and
copying not later than the first date of publication of the public
notice.
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 33445 of the Health and Safety Code is amended
to read:
33445. (a) Notwithstanding Section 33440, an agency may, with the
consent of the legislative body, pay all or a part of the value of
the land for and the cost of the installation and construction of any
building, facility, structure, or other improvement that is publicly
owned either within or without and is
located inside or contiguous to the project area, if the
legislative body finds, based on substantial evidence in the record,
all of the following:
(1) Significant blight remains within the project area.
(2) The blight cannot be eliminated without the acquisition of the
land or the installation and construction of the building, facility,
structure, or other improvement that is publicly owned.
(1) The acquisition of land or the installation and construction
of the buildings, facilities, structures, or other improvements that
are publicly owned benefits the project area by helping to eliminate
blight within the project area.
(3)
(2) That no other reasonable means of financing the
acquisition of the land or installation or construction of the
buildings, facilities, structures, or other improvements
that are publicly owned , are available to the community,
including, but not limited to, general obligation bonds, revenue
bonds, special assessment bonds, and bonds issued pursuant to the
Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing
with Section 53311) of Part 1 of Division 2 of Title 5 of the
Government Code).
(4)
(3) That the payment of funds for the acquisition of
land or the cost of buildings, facilities, structures, or other
improvements that are publicly owned is consistent with the
implementation plan adopted pursuant to Section 33490.
(b) The acquisition of land and
(4) That the acquisition of land or
the installation or construction of each building, facility,
structure, or improvement that is publicly owned shall be
is provided for in the redevelopment plan.
(c) An agency
(b) A redevelopment agency shall
not pay for the normal maintenance or operations of buildings,
facilities, structures, or other improvements that are publicly
owned. Normal maintenance or operations do not include the
construction, expansion, addition to, or reconstruction of,
buildings, facilities, structures, or other improvements that are
publicly owned otherwise undertaken pursuant to this section.
(d)
(c) (1) When the value of the land or the
cost of the installation and construction of the building, facility,
structure, or other improvement that is publicly owned ,
or both, has been, or will be, paid or provided for initially by the
community or other public corporation , the agency may
enter into a contract with the community to reimburse the
community or other public corporation under which it
agrees to reimburse the community or other public corporation
for all or part of the value of the land or all or part of the cost
of the building, facility, structure, or other improvement that
is publicly owned , or both, by periodic payments over a period
of years.
(2) The obligation of the agency under the contract shall
constitute an indebtedness of the agency for the purpose of carrying
out the redevelopment project for the project area, and the
indebtedness may be made payable out of taxes levied in the project
area and allocated to the agency under subdivision (b) of Section
33670 or out of any other available funds.
(e) Prior to January 1, 2010, in
(d) In a case where the land has
been or will be acquired by, or the cost of the installation and
construction of the building, facility, structure, or other
improvement that is publicly owned has been paid by, a
parking authority, joint powers entity, or other public corporation
to provide a building, facility, structure, or other improvement that
has been or will be leased to the community, the contract may be
made with, and the reimbursement may be made payable to, the
community.
(f) With respect to the financing, acquisition, or construction of
a transportation, collection, and distribution system and related
peripheral parking facilities, in a county with a population of
4,000,000 persons or more, the agency shall, in order to exercise the
powers granted by this section, enter into an agreement with the
rapid transit district that includes the county, or a portion
thereof, in which agreement the rapid transit district shall be given
all of the following responsibilities:
(1) To participate with the other parties to the agreement to
design, determine the location and extent of the necessary
rights-of-way for, and construct, the transportation, collection, and
distribution systems and related peripheral parking structures and
facilities.
(2) To operate and maintain the transportation, collection, and
distribution systems and related peripheral parking structures and
facilities in accordance with the rapid transit district's
outstanding agreements and the agreement required by this paragraph.
(g)
(e) (1) Notwithstanding any other authority granted in
this section, an agency shall not pay for, either directly or
indirectly, with tax increment funds the construction, including land
acquisition, related site clearance, and design costs, or
rehabilitation of a building that is, or that will be used as, a city
hall or county administration building.
(2) This subdivision shall not preclude an agency from making
payments to construct, rehabilitate, or replace a city hall if an
agency does any of the following:
(A) Allocates tax increment funds for this purpose during the
1988-89 fiscal year and each fiscal year thereafter in order to
comply with federal and state seismic safety and accessibility
standards.
(B) Uses tax increment funds for the purpose of rehabilitating or
replacing a city hall that was seriously damaged during an earthquake
that was declared by the President of the United States to be a
natural disaster.
(C) Uses the proceeds of bonds, notes, certificates of
participation, or other indebtedness that was issued prior to January
1, 1994, for the purpose of constructing or rehabilitating a city
hall, as evidenced by documents approved at the time of the issuance
of the indebtedness.
(f) As used in this section, "contiguous" means that the parcel on
which the building, facility, structure, or other improvement that
is publicly owned is located shares a boundary with the project area
or is separated from the project area only by a public street or
highway, flood control channel, waterway, railroad right-of-way, or
similar feature.
(g) Notwithstanding Section 33445.1, an agency may pay for all or
part of the value of the land for and the cost of the installation
and construction of any building, facility, structure, or other
improvement that is publicly owned and is partially located in the
project area, but extends beyond the project area's boundaries, if
the legislative body makes the findings required by subdivision (a).
SEC. 2. Section 33445.1 is added to the
Health and Safety Code , to read:
33445.1. (a) Notwithstanding Section 33440, an agency may, with
the consent of the legislative body, pay all or a part of the value
of the land for and the cost of the installation and construction of
any building, facility, structure, or other improvement that is
publicly owned and is located outside and not contiguous to the
project area, but is located within the community, if the legislative
body finds, based on substantial evidence in the record, all of the
following:
(1) Significant blight remains within the project area.
(2) The acquisition of the land or the installation or
construction of the buildings, facilities, structures, or other
improvements that are publicly owned benefits the project area by
helping to eliminate blight within the project area.
(3) No other reasonable means of financing the acquisition of the
land or the installation or construction of the buildings,
facilities, structures, or other improvements that are publicly
owned, are available to the community, including, but not limited to,
general obligation bonds, revenue bonds, special assessment bonds,
or bonds issued pursuant to the Mello-Roos Community Facilities Act
of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of
Division 2 of Title 5 of the Government Code).
(4) The payment of funds for the acquisition of land or the cost
of buildings, facilities, structures, or other improvements that are
publicly owned is consistent with the implementation plan adopted
pursuant to Section 33490.
(5) The acquisition of land and the installation of each building,
facility, structure, or improvement that is publicly owned is
provided for in the redevelopment plan.
(b) An agency shall not pay for the normal maintenance or
operations of buildings, facilities, structures, or other
improvements that are publicly owned. Normal maintenance or
operations do not include the construction, expansion, addition to,
or reconstruction of, buildings, facilities, structures, or other
improvements that are publicly owned otherwise undertaken pursuant to
this section.
SEC. 3. Section 33505 is added to the
Health and Safety Code , to read:
33505. (a) The agency and legislative body shall not authorize or
approve the settlement of any judicial action specified in Section
33501 that contests the validity of the adoption or amendment of a
redevelopment plan if the settlement requires the expenditure of
funds outside the project area unless the agency and the legislative
body have first held a public hearing on the proposed settlement
pursuant to this section.
(b) Notice of the public hearing shall be published once a week
for two successive weeks in a newspaper of general circulation in the
community. Notice of the public hearing shall be posted in at least
five prominent locations inside the project area for at least two
weeks before the hearing. Notice of the hearing shall be mailed by
first class mail to the project area committee, if any, and to any
other persons or organizations who have filed a written request for
public notice.
(c) Copies of the proposed settlement shall be available for
public inspection and copying not later than the first date of
publication of the public notice.