BILL ANALYSIS Ó
AB 1235
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator S. Joseph Simitian, Chairman
2011-2012 Regular Session
BILL NO: AB 1235
AUTHOR: Hernandez
AMENDED: May 5, 2011
FISCAL: No HEARING DATE: July 6, 2011
URGENCY: No CONSULTANT:
Rachel Machi Wagoner
SUBJECT : REDEVELOPMENT PROPERTY: HAZARDOUS SUBSTANCE
RELEASE: IMMUNITIES
SUMMARY :
Existing law , under the Polanco Redevelopment Act:
1) Prescribes processes for redevelopment agencies to follow
when cleaning up a hazardous substance release in a
redevelopment project area.
2) Provides immunity from liability for redevelopment agencies
and subsequent property purchasers for sites cleaned up
under a cleanup plan approved by the Department of Toxic
Substances Control (DTSC) or a Regional Water Quality
Control Board (RWQCB).
This bill :
1) Provides that if a redevelopment agency (RDA) has been
dissolved by an act of the Legislature and its successor
agency, as defined, maintains all the rights, powers, and
duties that were vested in the redevelopment agency prior
to its dissolution, then certain immunities that previously
applied to the redevelopment agency shall apply to the
successor agency for the removal of hazardous substance
releases, as specified, from property that was within a
redevelopment project of the RDA prior to its dissolution.
2) Defines "successor agency" as the county, city, or city and
county that authorized the creation of the RDA.
AB 1235
Page 2
COMMENTS :
1) Purpose of Bill . According to the author, AB 1235 is
needed at this time in order to preserve existing legal
protections to entities wishing to redevelop brownfield
properties without interruption in case RDAs are dissolved.
The author states: "The governor and Democratic Leaders
have indicated that as part of closing the 2011-12 State
Budget they intend to eliminate Redevelopment Areas in
order to achieve a $1.7 billion in savings. The purpose of
the governor's proposal is to gain revenue for the State.
It is not to eliminate the other benefits associated with
Redevelopment Areas. AB 1235 preserves one of those other
benefits. Without this bill, development will be further
hindered in what was once California Redevelopment Areas."
2) Arguments in Support : The Center for Creative Land
Recycling, sponsor of AB 1235, writes in support, "As the
governor and Legislature debate the 2011-12 State Budget
and the future of Redevelopment Areas, it is prudent and
timely for the Legislature to concurrently develop policy
to preserve those benefits of Redevelopment Areas that have
proved successful and that do not have a state budget
consequence. Without this bill, development may be further
hindered if Redevelopment Areas are eliminated."
The California Association of Realtors also supports the
bill, asserting that the immunities afforded to RDAs by the
Polanco Act deserve to be extended to successor interests
because they have successfully "served to promote the
remediation of urban brownfields and have allowed
communities throughout the state to recapture and
rehabilitate blighted properties." The Realtors further
contend that this bill "will help to ensure continued
investment in the remediation and redevelopment of these
vital urban parcels."
3) Related Legislation .
AB 26x eliminates redevelopment agencies and directs the
resolution of their activities.
AB 1235
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AB 27x creates an alternative voluntary redevelopment
program.
4) Amendments Needed .
AB 1235 appears to seek to continue the immunity
protections of the Polanco Act but not to continue the
responsibilities and duties of the Act. An amendment is
needed to clarify the entirety of the Polanco Act and all
of the rights, responsibilities and protections of the act
are deemed to apply to the "successor agency" as defined.
Governor Brown signed AB 26x and AB 27x on June 28, 2011,
eliminating/ reconstituting redevelopment agencies pursuant
to the 2011-12 Budget. This action will take effect on the
date those budget bills are chaptered. Should the Governor
sign AB 1235, it will not be enacted until January 1, 2012,
potentially leaving successor agencies in limbo in regard
to the provisions of the Polanco Act. The bill should be
amended to include an urgency clause to eliminate or
minimize a delay in enactment.
5) Consistent with Legislative Action . The Legislature is
currently working on additional legislation affecting RDAs.
It is important that all legislation on this issue be
consistent in policy and definitions. It may be necessary
for the committee to rehear AB 1235 to ensure that all
legislative changes affecting the outcome of RDAs are
consistent.
SOURCE : Center for Creative Land Recycling
SUPPORT : California Association of Realtors
County of San Diego
OPPOSITION : None on File