BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  AB 1235|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  AB 1235
          Author:   Roger Hernández (D)
          Amended:  9/2/11 in Senate
          Vote:     27 - Urgency

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  7-0, 07/06/11
          AYES:  Simitian, Strickland, Blakeslee, Hancock, Kehoe, 
            Lowenthal, Pavley

           ASSEMBLY FLOOR  :  77-0, 05/19/11 - See last page for vote


           SUBJECT  :    Polanco Redevelopment Act:  revision

           SOURCE  :     Center for Creative Land Recycling


           DIGEST  :    This bill applies all authority, rights, powers, 
          duties, and obligations, afforded to a redevelopment agency 
          under the Polanco Redevelopment Act (Polanco Act), to a 
          successor agency, as defined, for any property that was 
          within a redevelopment project of a redevelopment agency 
          (RDA) that has been dissolved by an act of the Legislature.

           Senate Floor Amendments  of 9/2/11 clarify that the 
          successor agency of an RDA maintains the authority, rights, 
          powers, duties, obligations and protections that previously 
          applied to the RDA under the Polanco Act.

           ANALYSIS  :    Existing law, under the Polanco Redevelopment 
          Act:

                                                           CONTINUED





                                                               AB 1235
                                                                Page 
          2

          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 or a Regional 
            Water Quality Control Board.

          This bill:

          1.Provides that if an RDA has been dissolved by an act of 
            the Legislature and its successor agency, as defined, 
            maintains all the authority, rights, powers, duties, and 
            obligations that were vested in the redevelopment agency 
            prior to its dissolution, all rights, powers, duties, 
            obligations, and protections that previously applied to 
            the RDA shall apply to the successor agency, pursuant to 
            the Polanco Act, 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.

           Comments
           
          According to the author's office, this bill 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." 

          Amendments were taken to clarify the entirety of the 

                                                           CONTINUED





                                                               AB 1235
                                                                Page 
          3

          Polanco Act and all of the rights, responsibilities and 
          protections of the act are deemed to apply to the 
          "successor agency" as defined.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT  :   (Verified  9/2/11)

          Center for Creative Land Recycling (source) 
          California Association of Realtors
          County of San Diego

           ARGUMENTS IN SUPPORT  :    The Center for Creative Land 
          Recycling 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."


           ASSEMBLY FLOOR  : 77-0, 05/19/11
          AYES: Achadjian, Allen, Ammiano, Atkins, Beall, Bill 
            Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, 
            Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, 
            Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, 
            Hagman, Halderman, Hall, Harkey, Hayashi, Roger 
            Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Jones, 

                                                           CONTINUED





                                                               AB 1235
                                                                Page 
          4

            Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, 
            Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, 
            Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez, 
            Portantino, Silva, Skinner, Smyth, Solorio, Swanson, 
            Torres, Valadao, Wagner, Wieckowski, Williams, John A. 
            Pérez
          NO VOTE RECORDED: Alejo, Gorell, Yamada


          DLW:nl  9/6/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****































                                                           CONTINUED