BILL NUMBER: AB 562 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 26, 2013
PASSED THE ASSEMBLY AUGUST 30, 2013
AMENDED IN SENATE AUGUST 15, 2013
AMENDED IN SENATE JULY 2, 2013
AMENDED IN ASSEMBLY MAY 20, 2013
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, 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.
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 all corporations or any other business
entities, except for sole proprietorships, that are 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) The local agency, within the term of the economic development
subsidy but not later than five years after the action granting an
economic development subsidy, as defined in paragraph (1) of
subdivision (g), shall issue a report for each economic development
subsidy. 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 all corporations or any other business
entities, except for sole proprietorships, that are the beneficiary
of the economic development subsidy, if applicable.
(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) (1) The local agency, within the term of the economic
development subsidy but no later than five years after the action
granting an economic development subsidy, as defined in paragraph (1)
of subdivision (g), shall hold a public hearing to consider any
written or oral comments on the information contained in the report
prepared pursuant to subdivision (d).
(2) For an economic development subsidy, as defined in paragraph
(1) of subdivision (g), with a term of 10 years or more, the local
agency shall hold a public hearing 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.
(f) Each public hearing required by this section shall be
consolidated with a local agency's regularly scheduled hearing.
(g) 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, 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,
or city and county.
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.