AB 562, as introduced, Williams. Economic development subsidies: review by local agencies.
Existing law provides for various programs for economic development activities by state and local agencies.
This bill would, beginning January 1, 2014, require each local agency to provide specified information to the public before approving an economic development subsidy, as defined, within its jurisdiction, and to review, hold hearings, and report on those subsidies at specified intervals.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 53083 is added to the Government Code,
2to read:
(a) On and after January 1, 2014, each local agency
4shall, before approving any economic development subsidy within
5its jurisdiction, provide all of the following information in written
6form available to the public, and through its Internet Web site, if
7applicable:
P2 1(1) The name and address of the entity or individual that is the
2beneficiary of the economic development subsidy, if applicable.
3(2) The start and end dates and schedule, if applicable, for the
4economic development subsidy.
5(3) A description of the economic development subsidy,
6including the estimated total amount of the expenditure of public
7funds by, or of
revenue lost to, the local agency as a result of the
8economic development subsidy.
9(4) A statement of the public purposes for the economic
10development subsidy.
11(5) Projected tax revenue to the local agency as a result of the
12economic development subsidy.
13(6) Estimated number of jobs created by the economic
14development subsidy, broken down by full-time, part-time, and
15temporary positions.
16(b) Before granting an economic development subsidy, each
17local agency shall provide public notice and a hearing regarding
18the economic development subsidy. A public hearing and notice
19under this subdivision is not required if a hearing and notice
20regarding the economic development subsidy is otherwise required
21by law.
22(c) The information required to be provided in subdivision (a)
23shall remain available to the public under existing state and federal
24law and be posted on the local agency’s Internet Web site, if
25applicable, for the entire term of the economic development
26subsidy.
27(d) On or before October 1, 2015, and on or before October 1
28in each odd-numbered year thereafter, the local agency shall
29prepare a report for each economic development subsidy approved
30after January 1, 2014. Notwithstanding the requirement to prepare
31a report every two years, for an economic development subsidy
32that will exist for 40 years or more, the report shall be prepared
33only once every six years after the initial report. The report shall
34contain the information described in subdivision (a). The local
35agency shall make the report available to the public and through
36its Internet Web site, if applicable. The report shall also contain
37the following information, if
applicable:
38(1) The name and address of each entity or individual that is
39the beneficiary of the economic development subsidy.
P3 1(2) The start and end dates and schedule for the economic
2development subsidy.
3(3) A description of the economic development subsidy,
4including the estimated total amount of the expenditure of public
5funds by, or of revenue lost to, the local agency as a result of the
6economic development subsidy.
7(4) The net tax revenue accruing to the local agency as a result
8of the economic development subsidy.
9(5) The net number of jobs created by the economic development
10subsidy, broken down by full-time, part-time, and temporary
11positions.
12(e) On or before November 1, 2015, and on or before November
131 in each odd-numbered year thereafter, the local agency shall
14hold a public hearing to consider any written or oral comments on
15the information contained in the report prepared pursuant to
16subdivision (d).
17(f) The local agency shall provide a final report at the conclusion
18of each economic development subsidy that shall contain the
19information described in subdivision (d), in written form available
20to the public, and through its Internet Web site, if applicable.
21(g) Subsidies with a term of less than two years shall not be
22subject to subdivision (d). However, the local agency shall
23implement subdivision (f) within two years of the date the subsidy
24is granted and hold a public hearing to consider any written or oral
25comments on the information contained in the
report prepared
26pursuant to those provisions.
27(h) As used in this section, the following terms have the
28following meanings:
29(1) “Economic development subsidy” means any expenditure
30of public funds or loss of revenue to a local agency in the amount
31of one hundred thousand dollars ($100,000) or more, for the
32purpose of stimulating economic development within the
33jurisdiction of a local agency, including, but not limited to, bonds,
34grants, loans, loan guarantees, enterprise zone or empowerment
35zone incentives, tax-increment financing, fee waivers, land price
36subsidies, matching funds, tax abatements, tax exemptions, and
37tax credits. “Economic development subsidy” shall not include
38expenditures of public funds by, or loss of revenue to, the local
39agency for the purpose of providing housing affordable to persons
P4 1and families of low or moderate income, as defined in Section
250093 of the
Health and Safety Code.
3(2) “Local agency” means a city, including a charter city, county,
4city and county, and community redevelopment agency.
The Legislature finds and declares that the right of the
6public to be informed of economic development subsidies approved
7by their local agencies, as described in Section 53083 of the
8Government Code, as added by Section 1 of this act, is a matter
9of statewide concern, and not a municipal affair, as that term is
10used in Section 5 of Article XI of the California Constitution.
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