BILL NUMBER: AB 562 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Williams
FEBRUARY 20, 2013
An act to add Section 53083 to the Government Code, relating to
economic development.
LEGISLATIVE COUNSEL'S DIGEST
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 1. Section 53083 is added to the Government Code, to read:
53083. (a) On and after January 1, 2014, each local agency shall,
before approving any economic development subsidy within its
jurisdiction, provide all of the following information in written
form available to the public, and through its Internet Web site, if
applicable:
(1) The name and address of the entity or individual that is the
beneficiary of the economic development subsidy, if applicable.
(2) The start and end dates and schedule, if applicable, for the
economic development subsidy.
(3) A description of the economic development subsidy, including
the estimated total amount of the expenditure of public funds by, or
of revenue lost to, the local agency as a result of the economic
development subsidy.
(4) A statement of the public purposes for the economic
development subsidy.
(5) Projected tax revenue to the local agency as a result of the
economic development subsidy.
(6) Estimated number of jobs created by the economic development
subsidy, broken down by full-time, part-time, and temporary
positions.
(b) Before granting an economic development subsidy, each local
agency shall provide public notice and a hearing regarding the
economic development subsidy. A public hearing and notice under this
subdivision is not required if a hearing and notice regarding the
economic development subsidy is otherwise required by law.
(c) The information required to be provided in subdivision (a)
shall remain available to the public under existing state and federal
law and be posted on the local agency's Internet Web site, if
applicable, for the entire term of the economic development subsidy.
(d) On or before October 1, 2015, and on or before October 1 in
each odd-numbered year thereafter, the local agency shall prepare a
report for each economic development subsidy approved after January
1, 2014. Notwithstanding the requirement to prepare a report every
two years, for an economic development subsidy that will exist for 40
years or more, the report shall be prepared only once every six
years after the initial report. The report shall contain the
information described in subdivision (a). The local agency shall make
the report available to the public and through its Internet Web
site, if applicable. The report shall also contain the following
information, if applicable:
(1) The name and address of each entity or individual that is the
beneficiary of the economic development subsidy.
(2) The start and end dates and schedule for the economic
development subsidy.
(3) A description of the economic development subsidy, including
the estimated total amount of the expenditure of public funds by, or
of revenue lost to, the local agency as a result of the economic
development subsidy.
(4) The net tax revenue accruing to the local agency as a result
of the economic development subsidy.
(5) The net number of jobs created by the economic development
subsidy, broken down by full-time, part-time, and temporary
positions.
(e) On or before November 1, 2015, and on or before November 1 in
each odd-numbered year thereafter, the local agency shall hold a
public hearing to consider any written or oral comments on the
information contained in the report prepared pursuant to subdivision
(d).
(f) The local agency shall provide a final report at the
conclusion of each economic development subsidy that shall contain
the information described in subdivision (d), in written form
available to the public, and through its Internet Web site, if
applicable.
(g) Subsidies with a term of less than two years shall not be
subject to subdivision (d). However, the local agency shall implement
subdivision (f) within two years of the date the subsidy is granted
and hold a public hearing to consider any written or oral comments on
the information contained in the report prepared pursuant to those
provisions.
(h) As used in this section, the following terms have the
following meanings:
(1) "Economic development subsidy" means any expenditure of public
funds or loss of revenue to a local agency in the amount of one
hundred thousand dollars ($100,000) or more, for the purpose of
stimulating economic development within the jurisdiction of a local
agency, including, but not limited to, bonds, grants, loans, loan
guarantees, enterprise zone or empowerment zone incentives,
tax-increment financing, fee waivers, land price subsidies, matching
funds, tax abatements, tax exemptions, and tax credits. "Economic
development subsidy" shall not include expenditures of public funds
by, or loss of revenue to, the local agency for the purpose of
providing housing affordable to persons and families of low or
moderate income, as defined in Section 50093 of the Health and Safety
Code.
(2) "Local agency" means a city, including a charter city, county,
city and county, and community redevelopment agency.
SEC. 2. The Legislature finds and declares that the right of the
public to be informed of economic development subsidies approved by
their local agencies, as described in Section 53083 of the Government
Code, as added by Section 1 of this act, is a matter of statewide
concern, and not a municipal affair, as that term is used in Section
5 of Article XI of the California Constitution.