BILL NUMBER: SB 93 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 31, 2009
AMENDED IN ASSEMBLY JULY 14, 2009
AMENDED IN ASSEMBLY JULY 1, 2009
AMENDED IN SENATE MAY 18, 2009
AMENDED IN SENATE APRIL 28, 2009
AMENDED IN SENATE MARCH 10, 2009
INTRODUCED BY Senator Kehoe
( Coauthor: Assembly Member
Block )
JANUARY 22, 2009
An act to amend Sections 33445 and 33679 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.
(1) The Community Redevelopment Law authorizes a redevelopment
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 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. 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 instead authorize a redevelopment 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 inside or contiguous to, as defined,
the project area if the legislative body makes specified
determinations. 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 determinations.
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
require an action to challenge these findings to be filed and served
within 60 days after the date of the resolution containing the
findings. 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. These
provisions would not apply if the financing, construction, or
installation of the land, buildings, facilities, structures, or other
improvements is an obligation of the agency under a contract
existing on December 31, 2009, is specifically described in the
implementation plan prepared by the agency as of July 1, 2009,
pursuant to Section 33490, or is specifically provided for in the
redevelopment plan as of December 31, 2009.
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.
(2) Existing law requires the legislative body to hold a public
hearing before an agency commits to use the portion of taxes
allocated to the agency for the payment of the principal of, and
interest on, loans, moneys advanced to, or indebtedness incurred by
the agency to finance, or refinance, the redevelopment project to
instead pay all or part of the value of the land for, and the cost of
the installation and construction of, any publicly owned building,
other than parking facilities. Existing law also requires a summary
to be available for public inspection and copying, at a cost not to
exceed the cost of duplication, and the summary to include specified
information.
This bill would add to the specified information required to be
included in the summary the facts supporting the findings required to
be made by the legislative body in order for an agency to be
authorized 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.
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 and is located inside or contiguous to the project area, if
the legislative body determines all of the following:
(1) That the acquisition of land or the installation or
construction of the buildings, facilities, structures, or other
improvements that are publicly owned are of benefit to the project
area by helping to eliminate blight within the project area or
providing housing for low- or moderate-income persons.
(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.
(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) (1) The determinations made by the agency and the local
legislative body pursuant to subdivision (a) shall be final and
conclusive.
(2) For redevelopment plans, and amendments to those plans that
add territory to a project, adopted after October 1, 1976,
acquisition of property and installation or construction of each
facility shall be provided for in the redevelopment plan.
(3) 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.
(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 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.
(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.
(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 determinations 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) The acquisition of the land or the installation or
construction of the buildings, facilities, structures, or other
improvements that are publicly owned are of primary benefit to 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, or will directly
assist in the provision of housing for low- or moderate-income
persons.
(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). In determining whether
other means of financing are feasible, the legislative body may take
into account any relevant factors, including, but not limited to:
(A) Legal factors, such as the eligibility of the improvements for
funding under the governing statutes.
(B) Economic factors, such as prevailing interest rates and market
conditions.
(C) Political factors, such as the priority of commitments of
other public funding sources, the ability or willingness of property
owners or taxpayers to bear the cost of any special assessments,
taxes, or other charges, and the likelihood of obtaining voter
approval, if required.
(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.
(c) An action to challenge the findings required by this section
shall be filed and served within 60 days after the date of the
resolution containing the findings.
(d) The provisions of this section shall not apply if the
financing, construction, or installation of the land, buildings,
facilities, structures, or other improvements is an obligation of the
agency under a contract existing on December 31, 2009, is
specifically described in the implementation plan prepared
by the agency as of July 1, 2009, pursuant to Section 33490, or
is specifically provided for in the redevelopment
plan as of December 31, 2009.
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.
SEC. 4. Section 33679 of the Health and Safety Code is amended to
read:
33679. Before an agency commits to use the portion of taxes to be
allocated and paid to an agency pursuant to subdivision (b) of
Section 33670 for the purpose of paying all or part of the value of
the land for, and the cost of the installation and construction of,
any publicly owned building, other than parking facilities, the
legislative body shall hold a public hearing.
Notice of the time and place of the public hearing shall be
published in a newspaper of general circulation in the community for
at least two successive weeks prior to the public hearing. There
shall be available for public inspection and copying, at a cost not
to exceed the cost of duplication, a summary that includes all of the
following:
(a) Estimates of the amount of the taxes proposed to be used to
pay for the land and construction of any publicly owned building,
including interest payments.
(b) Sets forth the facts supporting the determinations required to
be made by the legislative body pursuant to Section 33445 or the
findings required to be made by the legislative body pursuant to
Section 33445.1.
(c) Sets forth the redevelopment purpose for which the taxes are
being used to pay for the land and construction of the publicly owned
building.
The summary shall be made available to the public for inspection
and copying no later than the time of the first publication of the
notice of the public hearing.