BILL NUMBER: AB 1080 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 4, 2013
INTRODUCED BY Assembly Member Alejo
(Principal coauthors: Assembly Members Mullin and V. Manuel Pérez)
(Coauthors: Assembly Members Brown, Ian Calderon, Perea, Stone,
and Williams)
FEBRUARY 22, 2013
An act to add Part 1.87 (commencing with Section 34191.50) to
Division 24 of the Health and Safety Code, relating to economic
development.
LEGISLATIVE COUNSEL'S DIGEST
AB 1080, as amended, Alejo. Community Revitalization and
Investment Authorities.
The Community Redevelopment Law authorizes the establishment of
redevelopment agencies in communities to address the effects of
blight, as defined. Existing law dissolved redevelopment agencies and
community development agencies, as of February 1, 2012, and provides
for the designation of successor agencies.
Existing law provides for various economic development programs
that foster community sustainability and community and economic
development initiatives throughout the state.
This bill would authorize certain public entities of a community
revitalization and investment area, as described, to form a community
revitalization plan within a community revitalization and investment
authority (authority) to carry out the Community Redevelopment Law
in a specified manner. The bill would require the authority to adopt
a community revitalization plan for a community
Revitalization revitalization and investment
area and authorize the authority to include in that plan a provision
for the receipt of tax increment funds.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) Certain areas of the state are generally
characterized by buildings in which it is unsafe or unhealthy for
persons to live or work, conditions that make the viable use of
buildings or lots difficult, high business vacancies and lack of
employment opportunities, and inadequate public improvements, water,
or sewer utilities. It is the intent of the Legislature to create a
planning and financing tool to support the revitalization of these
communities.
(b) It is in the interest of the state to support the economic
revitalization of these communities through tax increment financing.
(c) It is the intent of the Legislature to authorize the creation
of Community Revitalization and Investment Authorities to invest tax
increment revenue to relieve conditions of unemployment, reduce high
crime rates, repair deteriorated or inadequate infrastructure,
promote affordable housing, and improve conditions leading to
increased employment opportunities.
SEC. 2. Part 1.87 (commencing with Section 34191.50) is added to
Division 24 of the Health and Safety Code, to read:
PART 1.87. Community Revitalization and Investment Authorities
34191.50. As used in this part, the following terms have the
following meanings:
(a) "Authority" means the Community Revitalization and Investment
Authority created pursuant to this part.
(b) "Plan" means a community revitalization plan.
34191.51. (a) A community revitalization and investment authority
is a public body, corporate and politic, with jurisdiction to carry
out a community revitalization plan within a community revitalization
and investment area. The authority shall be deemed to be an "agency"
as defined Section 33003 for purposes of receiving tax increment
revenues pursuant to Article XVI of section 16 of the California
Constitution. The authority shall have only those powers and duties
specifically set forth in Section 3 34191.53
.
(b) An authority may be created in one of the following ways:
(1) A city, county, or city and county may adopt a resolution
creating an authority and appointing the governing board
. The composition of the governing board shall be comprised
as set forth in subdivision (c).
(2) A city, county, city and county, and special district ,
as special district is defined in subdivision (m) of
Section 95 of the Revenue and Taxation Code, or any combination
thereof, may create an authority by entering into a joint powers
agreement pursuant to Chapter 5 (commencing with Section 6500) of
Division 7 of Title I of the Government Code. The joint
powers agreement shall establish the composition of the governing
board.
(c) (1) The governing board of an authority
created pursuant to paragraph (1) of subdivision (b) shall be
appointed by the legislative body of the city, county, or city and
county that creat ed the authority and shall include
three members of the governing board
legislative body of the city, county, or city and county that
created the authority and two public members. The appointment of
the two public members shall be subject to the provisions of Section
54974 of the Government Code. The two public members shall
live or work within the community revitalization and investment area.
(2) The governing body of the authority created pursuant to
paragraph (2) of subdivision (b) shall be comprised of a majority of
members from the legislative bodies of the public agencies that
created the authority and a minimum of two public members who live or
work within the community revitalization and investment area. The
majority of the board shall appoint the public members to the
governing body. The appointment of the public members shall be
subject to the provisions of Section 54974 of the Government Code.
(d) An authority may carry out a community revitalization plan
within a community revitalization and investment area. Not less than
80 percent of the land calculated by census tracts within the area
shall be characterized by both of the following
conditions:
(1) An annual median household income that is less than 80 percent
of the statewide annual median income.
(2) Three of the following four conditions:
(A) Unemployment that is at least 3 percent higher than statewide
median unemployment.
(B) Crime rates that are 5 percent higher than the statewide
median crime rate.
(C) Deteriorated or inadequate infrastructure such as streets,
sidewalks, water supply, sewer treatment or processing, and parks.
(D) Deteriorated commercial or residential structures.
(e) An authority may also carry out a community revitalization
plan within a community revitalization and investment area
established within a former military base that is principally
characterized by deteriorated or inadequate infrastructure and
structures. Notwithstanding the provisions of
subdivision (c), the governing board of an authority established
within a former military base shall include a member of the military
base closure commission as a public member.
(f) The conditions described in subdivisions (d) and (e) shall
constitute blight within the meaning of the Community Redevelopment
Law. The authority shall not be required to make a finding of blight
or conduct a survey of blight within the area.
(g) An authority created pursuant to this part shall be a local
public agency subject to the Ralph M. Brown Act (Chapter 9
(commencing with Section 54950) of Part 1 of Division 2 of Title 5 of
the Government Code), the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code), and the Political Reform Act of 1974 (Title 9
(commencing with Section 81000) of the Government Code).
34191.53. An authority may do all of the following:
(a) Provide funding to rehabilitate, repair, upgrade, or construct
infrastructure.
(b) Provide funding for low-and moderate-income housing.
(c) Remedy or remove a release of hazardous substances pursuant to
the Polanco Redevelopment Act (Sections 33459 to 33459.8,
inclusive).
(d) Provide for seismic retrofits of existing buildings pursuant
to Section 33420.1.
(e) Acquire and transfer real property in accordance with
paragraph (4) of subdivision (a) of Section 33333.2, Article 7
(commencing with Section 33390) of Part 1 of Division 24, and
Sections 33340, 33349, 33350, 33435, 33436, 33437, 33437.5, 33438,
33439, 33440, 33442, 33443, 33444, 33444.5, 33444.6, and 33445.
The authority shall retain controls and establish restrictions or
covenants running with the land sold or leased for private use for
such periods of time and under such conditions as are provided in the
plan. The establishment of such controls is a public purpose under
the provisions of this part.
(f) Issue bonds pursuant to Article 5 (commencing with Section
33640) of Chapter 6 of Part 1 of Division 24.
(n)
(g) An authority may borrow money, receive grants, or
accept financial or other assistance or investment from the state or
the federal government or any other public agency or private lending
institution for any project or within its area of operation, and may
comply with any conditions of the loan or grant. An authority may
qualify for funding as a disadvantaged community as determined by the
California Environmental Protection Agency pursuant to Section
79505.5 of the Water Code or as defined by Section 56033.5 of the
Government Code. An authority may also coordinate
enter into an agreement with a qualified community
development entity that has entered into an allocation
agreement with the Community Development Financial Institutions Fund
of the United States Department of the Treasury with respect to
credits authorized by , as defined by Section
45D 45D(c) of the Internal Revenue Code
of 1986 , to maximize the benefits
associated with coordinate investments of funds
derived from the New Markets Tax Credit with those of the
authority in instances where coordination offers opportunities for
greater efficiency of investments to improve conditions described in
subdivisions (d) and (e) within the territorial jurisdiction of the
authority .
(o)
(h) At any time after the authority is authorized to
transact business and exercise its powers, the legislative body or
bodies of the local government that created the authority may
appropriate the amounts the legislative body or bodies deem necessary
for the administrative expenses and overhead of the authority.
The money appropriated may be paid to the authority as a grant to
defray the expenses and overhead, or as a loan to be repaid upon such
terms and conditions as the legislative body may provide. If
appropriated as a loan, the property owners within the plan area
shall be made third party beneficiaries of the repayment of the loan.
In addition to the common understanding and usual interpretation of
the term, "administrative expense" includes, but is not limited to,
expenses of planning and dissemination of information.
(p)
(i) Adopt a community revitalization and investment
plan pursuant to Section 34191.55.
(q)
(j) Make loans or grants for owners or tenants to
improve, rehabilitate, or retrofit buildings or structures within the
plan area.
(r) Provide
(k) Except as specified in Section
33426.5, provide direct assistance to businesses within the
plan area in connection with new or existing facilities for
industrial or manufacturing uses.
34191.55. An authority shall adopt a community revitalization and
investment plan that may include a provision for the receipt of tax
increment funds generated within the area according to Section 33670
provided the plan includes each of the following elements:
(a) A statement of the principal goals and objectives of the plan.
(b) A description of the deteriorated or inadequate infrastructure
within the area and a program for construction of adequate
infrastructure or repair or upgrading of existing infrastructure.
(c) A program that complies with Sections 33334.2 and 33334.12. If
the authority makes a finding that combining funding received under
this program with other funding for the same purpose shall reduce
administrative costs or expedite the construction of affordable
housing, then an authority may transfer funding from the program to a
private nonprofit corporation, to the housing authority within the
territorial jurisdiction of the local jurisdiction that created the
authority, or to the entity that received the housing assets of the
former redevelopment agency pursuant to Section 34176. Any recipient
of funds transferred pursuant to this subdivision shall comply with
each of the requirements of Sections 33334.2 and 33334.12. The
program adopted pursuant to this subdivision shall comply with the
provisions of Section 33413.
(d) A program to remedy or remove a release of hazardous
substances, if applicable.
(e) A program to provide funding for or otherwise facilitate the
economic revitalization of the area.
(f) A fiscal analysis setting forth the projected receipt of
revenue and projected expenses over a five-year planning horizon.
(g) The time limits imposed by Section 33333.2.
34191.57. (a) The authority shall consider adoption of the plan
at two public hearings which that shall
take place at least thirty days' 30 days
apart. At the first public hearing, the authority shall hear
all written and oral comments but take no action. At the second
public hearing, the authority shall consider all written and oral
comments and take action to modify, adopt, or reject the plan.
(b) The draft plan shall be made available to the public and to
each property owner within the area at a meeting held at least
thirty 30 days prior to the notice
given for the first public hearing. The purposes of the meeting shall
be to allow the staff of the authority to present the draft plan,
answer questions about the plan, and consider comments about the
plan.
(c) (1) Notice of the first public hearing shall be given by
publication not less than once a week for four successive weeks in a
newspaper of general circulation published in the county in which the
area lies and shall be mailed to each property owner within the
proposed area of the plan. Notice of the second public hearing shall
be given by publication not less than ten 10
days prior to the date of the second public hearing in a
newspaper of general circulation published in the county in which the
area lies and shall be mailed to each property owner within the
proposed area of the plan. The notice shall do all of the following:
(A) Describe specifically the boundaries of the proposed area.
(B) Describe the purpose of the plan.
(C) State the day, hour, and place when and where any and all
persons having any comments on the proposed plan may appear to
provide written or oral comments to the authority.
(D) Notice of second public hearing shall include a summary of the
changes made to the plan as a result of the oral and written
testimony received at or before the public hearing and shall identify
a location accessible to the public where the plan to be presented
at the second public hearing can be reviewed.
(2) The authority may provide notice of the public hearings to
tenants of properties within the proposed area of the plan in a
manner of its choosing.
(d) At the hour set in the notice required by subdivision (a), the
authority shall consider all written and oral comments.
(e) The authority may adopt the plan at the conclusion of the
second public hearing by ordinance. The ordinance adopting the plan
shall be subject to referendum as prescribed by law for the
ordinances of the local jurisdiction that created the authority.
(f) The redevelopment plan referred to in Section 33670 shall be
the plan adopted pursuant to this section.
34191.59. (a) The plan adopted pursuant to Section
34191.57 may include a provision for the receipt of tax increment
funds according to Section 33670 in accordance with this section.
(b) The plan shall limit the taxes that are allocated to the
authority to those defined in Section 33670 collected for the benefit
of the taxing agencies that have adopted a resolution pursuant to
subdivision (d).
(c) The provision for the receipt of tax increment funds shall
become effective in the tax year that begins after the December 1
first following the adoption of the plan.
(d) At any time prior to or after adoption of the plan, any city,
county, or special district , other than a school entity
as defined in subdivision (m) (n) of
Section 95 of the Revenue and Taxation Code , that
receives ad valorem property taxes from property located within an
area may adopt a resolution directing the county auditor-controller
to allocate its share of tax increment funds within the area covered
by the plan according to Section 33670 to the authority. The
resolution adopted pursuant to this subdivision may direct the county
auditor-controller to allocate less than the full amount of the tax
increment, establish a maximum amount of time in years that the
allocation takes place, or limit the use of the funds by the
authority for specific purposes or programs. A resolution adopted
pursuant to this subdivision may be repealed and be of no further
effect by giving the county auditor-controller sixty
60 days' notice ; provided, however,
that the county auditor-controller shall continue to allocate to the
authority the taxing entity's share of ad valorem property taxes that
have been pledged to the repayment of debt issued by the authority
until the debt has been fully repaid.
(e) Upon adoption of a plan that includes a provision for the
receipt of tax increment funds according to Section 33670, the county
auditor-controller shall allocate tax increment revenue to the
authority as follows:
(1) If the authority was formed pursuant to paragraph (1) of
subdivision (b) of Section 34191.51, the authority shall be allocated
each year specified in the plan that portion of the taxes levied for
each city, county, city and county, and special district that has
adopted a resolution pursuant to subdivision (d), in excess of the
amount specified in subdivision (a) of Section 33670.
(2) If the authority was formed pursuant to paragraph (2) of
subdivision (b) of Section 34191.51, the authority shall be allocated
each year specified in the plan that portion of the taxes levied for
each jurisdiction as provided in the joint powers agreement in
excess of the amount specified in subdivision (a) of Section 33670.
(f) If an area includes, in whole or in part, land formerly or
currently designated as a part of a redevelopment project area, as
defined in Section 33320.1, any plan adopted pursuant to this part
that includes a provision for the receipt of tax increment revenues
according to Section 33670 shall include a provision that tax
increment amounts collected and received by an authority
shall not be used for the payment of are subject and
subordinate to any preexisting enforceable obligation as that
term is defined by Section 34171.
34191.61. (a) The authority shall review the plan at least
annually and make any modifications that are necessary and
appropriate in accordance with the provisions of this section, and
shall require the preparation of an annual independent financial
audit paid for from revenues of the authority.
(b) After holding a public hearing, an authority shall adopt a
report on or before June 30 of each year. Written copies of the draft
report shall be made available to the public thirty
30 days prior to the public hearing. The clerk
of the legislative body shall post the draft report in an easily
identifiable and accessible location on the authority's Internet Web
Site site and shall mail a written
notice of the availability of the draft report on the Web
Site site to each owner of land within the area
covered by the plan and to each taxing entity that has adopted a
resolution pursuant to subdivision (d) of Section 34191.59.
(c) The annual report shall contain all of the following:
(1) A description of the projects undertaken in the fiscal year
and a comparison of the progress expected to be made on those
projects compared to the actual progress.
(2) A chart comparing the actual revenues and expenses ,
including administrative costs, of the authority to the
budgeted revenues and expenses
(3) The amount of tax increment revenues received.
(4) The amount of revenues received for low-and moderate-income
housing
(5) The amount of revenues expended for low-and moderate-income
housing.
(6) An assessment of the status regarding completion of the
authority's projects.
(7) The amount of revenues expended to assist private businesses.
(c)
(d) If the authority fails to provide the annual report
required by subdivision (a), the authority shall not spend any funds
received pursuant to a resolution adopted pursuant to subdivision
(d) of Section 34191.59.
(d)
(e) Every 10 years, at the public hearing held pursuant
to subdivision (a), the authority shall conduct a protest proceeding
to consider whether the property owners within the plan area wish to
present oral or written protests against the authority. Notice of
his this protest proceeding shall be
included in the written notice of the hearing on the annual report
and shall inform the property owner of his or her right to submit an
oral or written protest before the close of the public hearing. The
protest may state that the property owner objects to the authority
taking action to implement the plan on and after the effective date
of the election described in subdivision (e). The authority shall
consider all written and oral protests received prior to the close of
the public hearing.
(e)
(f) If there is a majority protest, the authority shall
call an election of the property owners in the area covered by the
plan, and shall not initiate or authorize any new projects until the
election is held. A majority protest exists if protests have been
filed representing over 50 percent of the assessed value in the area.
(f)
(g) An election required pursuant to subdivision (e)
shall be held within 90 days of the public hearing and may be held by
mail-in ballot.
(g)
(h) If a majority of the property owners, weighted
proportional to the assessed value of their property, vote against
the authority, then the authority shall not take any further action
to implement the plan on and after the effective date of the election
held pursuant to subdivision (e). This section shall not prevent the
authority from taking any and all actions and appropriating and
expending funds, including but not limited to any and all payments on
bonded or contractual indebtedness, to carry out and complete
projects for which expenditures of any kind had been made prior to
the effective date of the election.