BILL NUMBER: AB 750	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Garcia

                        FEBRUARY 21, 2013

   An act to add Article 3.75 (commencing with Section 37450) to
Chapter 5 of Part 2 of Division 3 of Title 4 of the Government Code,
relating to local government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 750, as introduced, Garcia. Economic development: cities.
    The California Constitution generally prohibits the making of a
gift of any public money, or thing of value.
   Existing law authorizes a city to purchase, lease, receive, hold,
and enjoy real and personal property, and control and dispose of it
for the common benefit, and to lease property owned or held or
controlled by it, or any of its departments, as prescribed.
   This bill would authorize a city to dispose of real property, as
provided, or provide compensation to a private entity, if the
legislative body of the city is presented with, or presents,
substantial evidence that the disposition of the property or
provision of compensation would stimulate job creation and economic
development within the boundaries of the city, and that the amount of
private benefit provided would not outweigh the amount of public
benefit received through the disposition of the property or the
provision of compensation. The bill would provide that the
disposition of real property or provision of compensation under these
circumstances would not constitute a gift of public funds under the
California Constitution.
   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.  Article 3.75 (commencing with Section 37450) is added
to Chapter 5 of Part 2 of Division 3 of Title 4 of the Government
Code, to read:

      Article 3.75.  Economic Development


   37450.  (a) Notwithstanding any other law, the disposition of real
property by a city shall not constitute a gift of public funds under
Section 6 of Article XVI of the California Constitution, and shall
constitute an action taken for a public purpose, provided that the
legislative body of the city disposing of the real property is
presented with, or presents, substantial evidence of both of the
following:
   (1) (A) That the disposition of the property will stimulate job
creation and economic development within the boundaries of the city.
   (B) For purposes of this section, "disposition" means the sale,
lease, transfer, or exchange of real property, or any combination
thereof.
   (2) That the amount of private benefit provided will not outweigh
the amount of public benefit received through the sale, lease, or
disposition.
   (b) The disposition of real property pursuant to this section
shall be in compliance with the California Constitution and other
applicable law relating to the sale, lease, or disposition of real
property.
   37452.  (a) Notwithstanding any other law, a city may provide
compensation to a private party, that is less than or equal to the
share of sales taxes received by the city as a result of the sales
tax-generating activities of the private party within the municipal
boundaries of the city, less the city's costs of administration with
respect to those sales tax receipts.
   (b) The provision of compensation to a private party pursuant to
this section shall not constitute a gift of public funds under
Section 6 of Article XVI of the California Constitution, and shall
constitute an action taken for a public purpose, provided that the
legislative body of the city is presented with, or presents,
substantial evidence of both of the following:
   (1) The compensation provided to a private party under this
section will stimulate economic development within the municipal
boundaries of the city.
   (2) The private benefit provided will not outweigh the amount of
public benefit received through the provision of compensation to a
private party pursuant to this section.
  SEC. 2.  If any provision of this act or the application thereof to
any person or circumstance is held invalid, the invalidity shall not
affect other provisions or applications of this act which can be
given effect without the invalid provision or application and to this
end, the provisions of this act are severable.
  SEC. 3.  The Legislature finds and declares that responsible use of
public funds and encouragement of economic growth are issues of
statewide concern and do not constitute a municipal affair as that
term is used in Section 5 of Article XI of the California
Constitution. Accordingly, it is the intent of the Legislature that
Section 1 applies to every city in this state, including charter
cities.