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, as defined, 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
2shall, before approving any economic development subsidy within
3its jurisdiction, provide all of the following information in written
4form available to the public, and through its Internet Web site, if
5applicable:
6(1) The name and address ofbegin delete the entity or individual that isend deletebegin insert all
7corporations or any other business entities, except for sole
8proprietorships, that areend insert the beneficiary of the economic
9development subsidy, ifbegin delete applicable, except that the address of the begin insert
applicableend insert.
10beneficiary does not need to be posted on the local agency’s
11Internet Web site if the beneficiary is a sole proprietorend delete
12(2) The start and end dates and schedule, if applicable, for the
13economic development subsidy.
14(3) A description of the economic development subsidy,
15including the estimated total amount of the expenditure of public
16funds by, or of revenue lost to, the local agency as a result of the
17economic development subsidy.
18(4) A statement of the public purposes for the economic
19development subsidy.
20(5) Projected tax revenue to the local agency as a result of the
21economic development subsidy.
22(6) Estimated number of jobs created by the economic
23development
subsidy, broken down by full-time, part-time, and
24temporary positions.
25(b) Before granting an economic development subsidy, each
26local agency shall provide public notice and a hearing regarding
27the economic development subsidy. A public hearing and notice
28under this subdivision is not required if a hearing and notice
29regarding the economic development subsidy is otherwise required
30by law.
31(c) The information required to be provided in subdivision (a)
32shall remain available to the public under existing state and federal
33law and be posted on the local agency’s Internet Web site, if
34applicable, for the entire term of the economic development
35subsidy.
36(d) The local agency, within the term of the economic
37development
subsidy but not later than five years after the action
38granting an economic development subsidy, as defined in paragraph
39(1) of subdivision (g), shall issue a report for each economic
40development subsidy. The report shall contain the information
P3 1described in subdivision (a). The local agency shall make the report
2available to the public and through its Internet Web site, if
3applicable. The report shall also contain the following information,
4if applicable:
5(1) The name and address ofbegin delete each entity or individual that isend deletebegin insert all
6corporations or any other business entities, except for sole
7proprietorships, that are end insert the beneficiary of the economic
8developmentbegin delete subsidy, except that the address of the beneficiary begin insert
subsidy, if applicableend insert.
9does not need to be posted on the local agency’s Internet Web site
10if the beneficiary is a sole proprietorend delete
11(2) The start and end dates and schedule for the economic
12development subsidy.
13(3) A description of the economic development subsidy,
14including the estimated total amount of the expenditure of public
15funds by, or of revenue lost to, the local agency as a result of the
16economic development subsidy.
17(4) The net tax revenue accruing to the local agency as a result
18of the economic development subsidy.
19(5) The net number of jobs created by the economic development
20subsidy, broken down by full-time, part-time, and temporary
21positions.
22(e) (1) The local agency, within the term of the economic
23development subsidy but no later than five years after the action
24granting an economic development subsidy, as defined in paragraph
25(1) of subdivision (g), shall hold a public hearing to consider any
26written or oral comments on the information contained in the report
27prepared pursuant to subdivision (d).
28(2) For an economic development subsidy, as defined in
29paragraph (1) of subdivision (g), with a term of 10 years or more,
30the local agency shall hold a public hearing at the conclusion of
31each economic development subsidy that shall contain the
32information described in subdivision (d), in written form available
33to the public, and through its Internet Web site, if applicable.
34(f) Each public hearing
required by this section shall be
35consolidated with a local agency’s regularly scheduled hearing.
36(g) As used in this section, the following terms have the
37following meanings:
38(1) “Economic development subsidy” means any expenditure
39of public funds or loss of revenue to a local agency in the amount
40of one hundred thousand dollars ($100,000) or more, for the
P4 1purpose of stimulating economic development within the
2jurisdiction of a local agency, including, but not limited to, bonds,
3grants, loans, loan guarantees, enterprise zone or empowerment
4zone incentives, fee waivers, land price subsidies, matching funds,
5tax abatements, tax exemptions, and tax credits. “Economic
6development subsidy” shall not include expenditures of public
7funds by, or loss of revenue to, the local agency
for the purpose
8of providing housing affordable to persons and families of low or
9moderate income, as defined in Section 50093 of the Health and
10Safety Code.
11(2) “Local agency” means a city, including a charter city, county,
12or city and county.
The Legislature finds and declares that the right of the
14public to be informed of economic development subsidies approved
15by their local agencies, as described in Section 53083 of the
16Government Code, as added by Section 1 of this act, is a matter
17of statewide concern, and not a municipal affair, as that term is
18used in Section 5 of Article XI of the California Constitution.
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