AB 562, as amended, 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
P2 1form available to the public, and through its Internet Web site, if
2applicable:
3(1) The name and address of the entity or individual that is the
4beneficiary of the economic development subsidy, if applicablebegin insert,
5except that the address of the beneficiary does not need to be posted
6on the local agency’s Internet Web site if the beneficiary is a sole
7proprietorend insert.
8(2) The start and end dates and schedule, if applicable, for the
9economic development subsidy.
10(3) A description of the economic development subsidy,
11including the estimated total amount of the expenditure of public
12funds by, or of revenue lost to, the local agency as a result of the
13economic development subsidy.
14(4) A statement of the public purposes for the economic
15development subsidy.
16(5) Projected tax revenue to the local agency as a result of the
17economic development subsidy.
18(6) Estimated number of jobs created by the economic
19development subsidy, broken down by full-time, part-time, and
20temporary positions.
21(b) Before granting an economic development subsidy, each
22local agency shall provide public notice and a hearing regarding
23the economic development subsidy. A public hearing and notice
24under this subdivision is not required if a hearing and notice
25regarding the economic development subsidy is otherwise required
26by law.
27(c) The information required to be provided in subdivision (a)
28shall remain available to the public under existing state and federal
29law and be posted on the local agency’s Internet Web site, if
30applicable, for the entire term of the economic development
31subsidy.
32(d) On or before October 1, 2015, and on or before October 1
33in each odd-numbered year thereafter, the local agency shall
34prepare a
report for each economic development subsidy approved
35after January 1, 2014. Notwithstanding the requirement to prepare
36a report every two years, for an economic development subsidy
37that will exist for 40 years or more, the report shall be prepared
38only once every six years after the initial report. The report shall
39contain the information described in subdivision (a). The local
40agency shall make the report available to the public and through
P3 1its Internet Web site, if applicable. The report shall also contain
2the following information, if applicable:
3(1) The name and address of each entity or individual that is
4the beneficiary of the economic development subsidybegin insert, except that
5the address of the beneficiary does not need to be posted on the
6local agency’s Internet Web site if the
beneficiary is a sole
7proprietorend insert.
8(2) The start and end dates and schedule for the economic
9development subsidy.
10(3) A description of the economic development subsidy,
11including the estimated total amount of the expenditure of public
12funds by, or of revenue lost to, the local agency as a result of the
13economic development subsidy.
14(4) The net tax revenue accruing to the local agency as a result
15of the economic development subsidy.
16(5) The net number of jobs created by the economic development
17subsidy, broken down by full-time, part-time, and temporary
18positions.
19(e) On or
before November 1, 2015, and on or before November
201 in each odd-numbered year thereafter, the local agency shall
21hold a public hearing to consider any written or oral comments on
22the information contained in the report prepared pursuant to
23subdivision (d).
24(f) The local agency shall provide a final report at the conclusion
25of each economic development subsidy that shall contain the
26information described in subdivision (d), in written form available
27to the public, and through its Internet Web site, if applicable.
28(g) Subsidies with a term of less than two years shall not be
29subject to subdivision (d). However, the local agency shall
30implement subdivision (f) within two years of the date the subsidy
31is granted and hold a public hearing to consider any written or oral
32comments on
the information contained in the report prepared
33pursuant to those provisions.
34(h) As used in this section, the following terms have the
35following meanings:
36(1) “Economic development subsidy” means any expenditure
37of public funds or loss of revenue to a local agency in the amount
38of one hundred thousand dollars ($100,000) or more, for the
39purpose of stimulating economic development within the
40jurisdiction of a local agency, including, but not limited to, bonds,
P4 1grants, loans, loan guarantees, enterprise zone or empowerment
2zone incentives, tax-increment financing, fee waivers, land price
3subsidies, matching funds, tax abatements, tax exemptions, and
4tax credits. “Economic development subsidy” shall not include
5expenditures of public funds by, or loss of revenue to, the local
6agency
for the purpose of providing housing affordable to persons
7and families of low or moderate income, as defined in Section
850093 of the Health and Safety Code.
9(2) “Local agency” means a city, including a charter city, county,
10city and county, and community redevelopment agency.
The Legislature finds and declares that the right of the
12public to be informed of economic development subsidies approved
13by their local agencies, as described in Section 53083 of the
14Government Code, as added by Section 1 of this act, is a matter
15of statewide concern, and not a municipal affair, as that term is
16used in Section 5 of Article XI of the California Constitution.
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