Amended in Assembly August 5, 2013

Amended in Senate May 8, 2013

Amended in Senate April 9, 2013

Amended in Senate April 1, 2013

Senate BillNo. 470


Introduced by Senator Wright

February 21, 2013


An act to add Part 4 (commencing with Section 52200) to Division 1 of Title 5 of the Government Code, and to amend Sections 33459, 33459.1, 33459.3, and 33459.8 of the Health and Safety Code, relating to community development.

LEGISLATIVE COUNSEL’S DIGEST

SB 470, as amended, Wright. Community development: economic opportunity.

Existing law generally regulates the power of cities, counties, and cities and counties.

This bill would state the intent of the Legislature to promote economic development on a local level so that communities can enact local strategies to increase jobs, create economic opportunity, and generate tax revenue for all levels of government. The bill would define economic opportunity to include certain types of agreements, purposes, and projects, and declare that it is the policy of the state to protect and promote the sound development of economic opportunity in cities and counties, and the general welfare of the inhabitants of those communities through the employment of all appropriate means.

The bill would state that the creation of economic opportunity and the provisions for appropriate continuing land use and construction policies with respect to property acquired, in whole or in part, for economic opportunity constitute public uses and purposes for which public money may be advanced or expended and private property acquired. The bill would provide that before certain returned city, county, or city and county property is sold or leased for development, the sale or lease shall first be approved by the legislative body, as specified. The bill would authorize a city, county, or city and county to establish a program under which it loans funds to owners or tenants for the purpose of rehabilitating commercial buildings or structures and to assist with the financing of facilities or capital equipment as part of an agreement that provides for the development or rehabilitation of property that will be used for industrial or manufacturing purposes, as specified.

Existing law, the Polanco Redevelopment Act, authorizes a former redevelopment agency to take any action that the agency determines is necessary, consistent with other state and federal laws, to remedy or remove a release of hazardous substances on, under, or from a project area, subject to specified conditions. Existing law requires agencies to request cleanup guidelines from the department or the California regional water quality control board before taking action to remedy or remove a release, immunizes an agency that remedies or removes a hazardous substance release from liability under specified state laws, and authorizes the recovery of cleanup and remedial costs from the liable party.

This bill would revise the definition of agency as used in the Polanco Redevelopment Act to include a city, county, or city and county, and authorize a city, county, or city and county to exercise authority under these provisions to remedy or remove the release of hazardous substances from property within its jurisdiction that previously was within the jurisdiction of a former redevelopment agency, consistent with state and federal laws, as specified. The bill would also make other conforming changes.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Part 4 (commencing with Section 52200) is added
2to Division 1 of Title 5 of the Government Code, to read:

 

P3    1PART 4.  Economic Opportunity

2

2 

3Chapter  1. General Provisions
4

 

5

52200.  

It is the intent of the Legislature to do all of the
6following:

7(a) Promote economic development on a local level so that
8communities can enact local strategies to increase jobs, create
9economic opportunity, and generate tax revenue for all levels of
10government.

11(b) Give local governments tools, at no cost to the state, that
12allow local governments to use their funds in a manner that
13promotes economic opportunity.

14(c) With the loss of redevelopment funds, cities, counties, and
15cities and counties need to continue certain powers afforded to
16redevelopment agencies that were critical to economic
17development, yet do not have an impact on schools and the state
18budget.

19

52200.2.  

As used in this part “economic opportunity” means
20any of the following:

21(a) Development agreements or other agreements that create,
22retain, or expand new jobs, in which the legislative body finds that
23the agreement will create or retain at least one full-time equivalent,
24permanent job for every thirty-five thousand dollars ($35,000) of
25city, county, or city and county investment in the project after full
26capacity and implementation.

27(b) Development agreements that increase property tax revenues
28to all property tax collecting entities, in which the legislative body
29finds that the agreement will result in an increase of at least 15
30percent of total property tax resulting from the project at full
31implementation when compared to the year prior to the property
32being acquired by the government entity.

33(c) Creation of affordable housing, if a demonstrated affordable
34housing need exists in the community, as defined in the approved
35housing element or regional housing needs assessment.

36(d) Projects that meet the goals set forth in Chapter 728 of the
37Statutes of 2008 and have been included in an adopted sustainable
38communities strategy or alternative planning strategy or a project
39that specifically implements the goals of those adopted plans.

P4    1(e) Transit priority projects, as defined in Section 21155 of the
2Public Resources Code.

3

52200.4.  

It is declared to be the policy of the state:

4(a) To protect and promote the sound development of economic
5opportunity in cities and counties and the general welfare of the
6inhabitants of those communities through the employment of all
7appropriate means.

8(b) That whenever the creation of economic opportunity in cities
9and counties cannot be accomplished by private enterprise alone,
10without public participation and assistance in the acquisition of
11land, in planning and in the financing of land assembly, in the
12work of clearance, and in the making of improvements necessary
13therefor, it is in the public interest to advance or expend public
14funds for these purposes, and to provide a means by which
15 economic opportunity can be created.

16(c) That the creation of economic opportunity and the provisions
17for appropriate continuing land use and construction policies with
18respect to property acquired, in whole or in part, for economic
19opportunity constitute public uses and purposes for which public
20money may be advanced or expended and private property
21acquired, and are governmental functions of state concern in the
22interest of health, safety, and welfare of the people of the state and
23cities and counties.

24(d) That the necessity in the public interest for the provisions
25of this part is declared to be a matter of legislative determination.

26

52200.6.  

This chapter shall not be interpreted to authorize the
27use of eminent domain for economic development purposes.

28 

29Chapter  2. Sales and Leases
30

 

31

52201.  

(a) (1) Before any city, county, or city and county
32property that is returned to the city, county, or city and county per
33the long-range property management plan, pursuant to Section
3434191.5 of the Health and Safety Code, is sold or leased for
35economic development purposes, the sale or lease shall first be
36approved by the legislative body by resolution after public hearing.
37Notice of the time and place of the hearing shall be published in
38a newspaper of general circulation in the community at least once
39per week for at least two successive weeks, as specified in Section
406066, prior to the hearing.

P5    1(2) The city, county, or city and county shall make available,
2for public inspection and copying at a cost not to exceed the cost
3of duplication, a report no later than the time of publication of the
4first notice of the hearing mandated by this section. This report
5shall contain both of the following:

6(A) A copy of the proposed sale or lease.

7(B) A summary that describes and specifies all of the following:

8(i) The cost of the agreement to the city, county, or city and
9county, including land acquisition costs, clearance costs, relocation
10costs, the costs of any improvements to be provided by the city,
11county, or city and county, plus the expected interest on any loans
12or bonds to finance the agreements.

13(ii) The estimated value of the interest to be conveyed or leased,
14determined at the highest and best uses permitted under the general
15plan or zoning.

16(iii) The estimated value of the interest to be conveyed or leased,
17determined at the use and with the conditions, covenants, and
18development costs required by the sale or lease. The purchase price
19or present value of the lease payments which the lessor will be
20required to make during the term of the lease. If the sale price or
21total rental amount is less than the fair market value of the interest
22to be conveyed or leased, determined at the highest and best use,
23then the city, county, or city and county shall provide as part of
24the summary an explanation of the reasons for the difference.

25(iv) An explanation of why the sale or lease of the property will
26assist in the creation of economic opportunity, with reference to
27all supporting facts and materials relied upon in making this
28explanation.

begin delete

29(v) The report shall be made available to the public no later than
30the time of publication of the first notice of the hearing mandated
31by this section.

end delete

32(b) The resolution approving the lease or sale shall be adopted
33by a majority vote unless the legislative body has provided by
34ordinance for a two-thirds vote for that purpose and shall contain
35a finding that the sale or lease of the property will assist in the
36creation of economic opportunity. The resolution shall also contain
37one of the following findings:

38(1) The consideration is not less than the fair market value at
39its highest and best use.

P6    1(2) The consideration is not less than the fair reuse value at the
2use and with the covenants and conditions and development costs
3authorized by the sale or lease.

4(c) The provisions of this section are an alternative to any other
5authority granted by law to cities to dispose of city-owned property.

6

52202.  

A city, county, or city and county may establish a
7program under which it loans funds to owners or tenants for the
8purpose of rehabilitating commercial buildings or structures.

9

52203.  

(a) As part of an agreement that provides for the
10development or rehabilitation of property that will be used for
11industrial or manufacturing purposes, a city, county, or city and
12county may assist with the financing of facilities or capital
13equipment, including, but not necessarily limited to, pollution
14control devices.

15(b) Prior to entering into an agreement for a development that
16will be assisted pursuant to this section, a city, county, or city and
17county shall find, after a public hearing, that the assistance is
18necessary for the economic feasibility of the development and that
19the assistance cannot be obtained on economically feasible terms
20in the private market.

21

SEC. 2.  

Section 33459 of the Health and Safety Code is
22amended to read:

23

33459.  

For purposes of this article, the following terms shall
24have the following meanings:

25(a) “Agency” includes a former redevelopment agency as
26defined in Section 33003 and a city, county, or city and county.

27(b) “Department” means the Department of Toxic Substances
28Control.

29(c) “Director” means the Director of Toxic Substances Control.

30(d) “Hazardous substance” means any hazardous substance as
31defined in subdivision (h) of Section 25281, and any reference to
32hazardous substance in the definitions referenced in this section
33shall be deemed to refer to hazardous substance, as defined in this
34subdivision.

35(e) “Local agency” means a single local agency that is one of
36the following:

37(1) A local agency authorized pursuant to Section 25283 to
38implement Chapter 6.7 (commencing with Section 25280) of, and
39Chapter 6.75 (commencing with Section 25299.10) of, Division
4020.

P7    1(2) A local officer who is authorized pursuant to Section 101087
2to supervise a remedial action.

3(f) “Qualified independent contractor” means an independent
4contractor who is any of the following:

5(1) An engineering geologist who is certified pursuant to Section
67842 of the Business and Professions Code.

7(2) A geologist who is registered pursuant to Section 7850 of
8the Business and Professions Code.

9(3) A civil engineer who is registered pursuant to Section 6762
10of the Business and Professions Code.

11(g) “Release” means any release, as defined in Section 25320.

12(h) “Remedy” or “remove” means any action to assess, evaluate,
13investigate, monitor, remove, correct, clean up, or abate a release
14of a hazardous substance or to develop plans for those actions.
15“Remedy” includes any action set forth in Section 25322 and
16“remove” includes any action set forth in Section 25323.

17(i) “Responsible party” means any person described in
18subdivision (a) of Section 25323.5 of this code or subdivision (a)
19of Section 13304 of the Water Code.

20

SEC. 3.  

Section 33459.1 of the Health and Safety Code is
21amended to read:

22

33459.1.  

(a) (1) An agency may take any actions that the
23agency determines are necessary and that are consistent with other
24state and federal laws to remedy or remove a release of hazardous
25substances on, under, or from property within a project area or
26property within its jurisdiction that previously was within the
27jurisdiction of a former redevelopment agency, whether the agency
28owns that property or not, subject to the conditions specified in
29subdivision (b). Unless an administering agency has been
30designated under Section 25262, the agency shall request cleanup
31guidelines from the department or the California regional water
32quality control board before taking action to remedy or remove a
33release. The department or the California regional water quality
34control board shall respond to the agency’s request to provide
35cleanup guidelines within a reasonable period of time. The agency
36shall thereafter submit for approval a cleanup or remedial action
37plan to the department or the California regional water quality
38control board before taking action to remedy or remove a release.
39The department or the California regional water quality control
P8    1board shall respond to the agency’s request for approval of a
2cleanup or remedial action plan within a reasonable period of time.

3(2) The agency shall provide the department and local health
4and building departments, the California regional water quality
5control board, with notification of any cleanup activity pursuant
6to this section at least 30 days before the commencement of the
7activity. If an action taken by an agency or a responsible party to
8remedy or remove a release of a hazardous substance does not
9meet, or is not consistent with, a remedial action plan or cleanup
10plan approved by the department or the California regional water
11quality control board, the department or the California regional
12water quality control board that approved the cleanup or remedial
13action plan may require the agency to take, or cause the taking of,
14additional action to remedy or remove the release, as provided by
15applicable law. If an administering agency for the site has been
16designated under Section 25262, any requirement for additional
17action may be imposed only as provided in Sections 25263 and
1825265. If methane or landfill gas is present, the agency shall obtain
19written approval from the California Integrated Waste Management
20Board prior to taking that action.

21(b) Except as provided in subdivision (c), an agency may take
22the actions specified in subdivision (a) only under one of the
23following conditions:

24(1) There is no responsible party for the release identified by
25the agency.

26(2) A party determined by the agency to be a responsible party
27for the release has been notified by the agency or has received
28adequate notice from the department, a California regional water
29quality control board, the Environmental Protection Agency, or
30other governmental agency with relevant authority and has been
31given 60 days to respond and to propose a remedial action plan
32and schedule, and the responsible party has not agreed within an
33additional 60 days to implement a plan and schedule to remedy or
34remove the release that is acceptable to the agency and that has
35been found by the agency to be consistent, to the maximum extent
36possible, with the priorities, guidelines, criteria, and regulations
37contained in the National Contingency Plan and published pursuant
38to Section 9605 of Title 42 of the United States Code for similar
39releases, situations, or events.

P9    1(3) The party determined by the agency to be the responsible
2party for the hazardous substance release entered into an agreement
3with the agency to prepare a remedial action plan for approval by
4the department, the California regional water quality control board,
5or the appropriate local agency and to implement the remedial
6action plan in accordance with an agreed schedule, but failed to
7prepare the remedial action plan, failed to implement the remedial
8action plan in accordance with the agreed schedule, or otherwise
9failed to carry out the remedial action in an appropriate and timely
10manner. Any action taken by the agency pursuant to this paragraph
11shall be consistent with any agreement between the agency and
12the responsible party and with the requirements of the state or local
13agency that approved or will approve the remedial action plan and
14is overseeing or will oversee the preparation and implementation
15of the remedial action plan.

16(c) Subdivision (b) does not apply to either of the following
17agencies:

18(1) An agency taking actions to investigate or conduct feasibility
19studies concerning a release.

20(2) An agency taking the actions specified in subdivision (a) if
21the agency determines that conditions require immediate action.

22(d) An agency may designate a local agency in lieu of the
23department or the California regional water quality control board
24to review and approve a cleanup or remedial action plan and to
25oversee the remediation or removal of hazardous substances from
26a specific hazardous substance release site in accordance with the
27following conditions:

28(1) The local agency may be so designated if it is designated as
29the administering agency under Section 25262. In that event, the
30local agency, as the administering agency, shall conduct the
31oversight of the remedial action in accordance with Chapter 6.65
32(commencing with Section 25260) and all provisions of that chapter
33shall apply to the remedial action.

34(2) The local agency may be so designated if cleanup guidelines
35were requested from a California regional water quality control
36board, and the site is an underground storage tank site subject to
37Chapter 6.7 (commencing with Section 25280) of Division 20, the
38local agency has been certified as a certified unified program
39agency pursuant to Section 25404.1, the State Water Resources
40Control Board has entered into an agreement with the local agency
P10   1for oversight of those sites pursuant to Section 25297.1, the local
2agency determines that the site is within the guidelines and
3protocols established in, and pursuant to, that agreement, and the
4local agency consents to the designation.

5(3) A local agency may not consent to the designation by an
6agency unless the local agency determines that it has adequate
7staff resources and the requisite technical expertise and capabilities
8available to adequately supervise the remedial action.

9(4) (A) Where a local agency has been designated pursuant to
10paragraph (2), the department or a California regional water quality
11control board may require that a local agency withdraw from the
12designation, after providing the agency with adequate notice, if
13both of the following conditions are met:

14(i) The department or a California regional water quality control
15board determines that an agency’s designation of a local agency
16was not consistent with paragraph (2), or makes one of the findings
17specified in subdivision (d) of Section 101480.

18(ii) The department or a California regional water quality control
19board determines that it has adequate staff resources and
20capabilities available to adequately supervise the remedial action,
21and assumes that responsibility.

22(B) Nothing in this paragraph prevents a California regional
23water quality control board from taking any action pursuant to
24Division 7 (commencing with Section 13000) of the Water Code.

25(5) Where a local agency has been designated pursuant to
26paragraph (2), the local agency may, after providing the agency
27with adequate notice, withdraw from its designation after making
28one of the findings specified in subdivision (d) of Section 101480.

29(e) To facilitate redevelopment planning, the agency may require
30the owner or operator of any site within a project area or its
31jurisdiction to provide the agency with all existing environmental
32information pertaining to the site, including the results of any Phase
33I or subsequent environmental assessment, as defined in Section
3425200.14, any assessment conducted pursuant to an order from,
35or agreement with, any federal, state or local agency, and any other
36environmental assessment information, except that which is
37determined to be privileged. The person requested to furnish the
38information shall be required only to furnish that information as
39may be within their possession or control, including actual
40knowledge of information within the possession or control of any
P11   1other party. If environmental assessment information is not
2available, the agency may require the owner of the property to
3conduct an assessment in accordance with standard real estate
4practices for conducting phase I or phase II environmental
5assessments.

6

SEC. 4.  

Section 33459.3 of the Health and Safety Code is
7amended to read:

8

33459.3.  

(a) Notwithstanding any other provision of law,
9except as provided in Section 33459.7, an agency that undertakes
10and completes an action, or causes another person to undertake
11and complete an action pursuant to Section 33459.1, as specified
12in subdivision (c), to remedy or remove a hazardous substance
13release on, under, or from property within a redevelopment project,
14in accordance with a cleanup or remedial action plan prepared by
15a qualified independent contractor and approved by the department
16or a California regional water quality control board or the local
17agency, as appropriate, pursuant to subdivision (b), is not liable,
18with respect to that release only, under Division 7 (commencing
19with Section 13000) of the Water Code or Chapter 6.5
20(commencing with Section 25100), Chapter 6.7 (commencing with
21Section 25280), Chapter 6.75 (commencing with Section
2225299.10), or Chapter 6.8 (commencing with Section 25300), of
23Division 20 of this code, or any other state or local law providing
24liability for remedial or removal actions for releases of hazardous
25substances. If the remedial action was also performed pursuant to
26Chapter 6.65 (commencing with Section 25260) of Division 20,
27and a certificate of completion is issued pursuant to subdivision
28(b) of Section 25264, the immunity from agency action provided
29by the certificate of completion, as specified in subdivision (c) of
30Section 25264, shall apply to the agency, in addition to the
31immunity conferred by this section. In the case of a remedial action
32performed pursuant to Chapter 6.65 (commencing with Section
3325260) of Division 20, and for which the administering agency is
34a local agency, the limitations on the certificate of completion set
35forth in paragraphs (1) to (6), inclusive, of subdivision (c) of
36Section 25264 are limits on any immunity provided for by this
37section and subdivision (c) of Section 25264.

38(b) Upon approval of any cleanup or remedial action plan,
39pursuant to applicable statutes and regulations, the director or the
40California regional water quality control board or the local agency,
P12   1as appropriate, shall acknowledge, in writing, within 60 days of
2the date of approval, that upon proper completion of the remedial
3or removal action in accordance with the plan, the immunity
4provided by this section shall apply to the agency.

5(c) Notwithstanding any provision of law or policy providing
6for certification by a person conducting a remedial or removal
7action that the action has been properly completed, a determination
8that a remedial or removal action has been properly completed
9pursuant to this section shall be made only upon the affirmative
10approval of the director or the California regional water quality
11 control board or the local agency, as appropriate. The department,
12California regional water quality control board, or local agency,
13as appropriate, shall, within 60 days of the date it finds that a
14remedial action has been completed, notify the agency in writing
15that the immunity provided by this section is in effect.

16(d) The approval of a cleanup or remedial action plan under this
17section by a local agency shall also be subject to the concurrent
18approval of the department or a California regional water quality
19control board when the agency receiving the approval was formed
20by the same entity of which the local agency is a part.

21(e) Upon proper completion of a remedial or removal action,
22as specified in subdivision (c), the immunity from agency action
23provided by the certificate of completion provided pursuant to
24subdivision (c) of Section 25264 and the immunity provided by
25this section extends to all of the following, but only for the release
26or releases specifically identified in the approved cleanup or
27remedial action plan and not for any subsequent release or any
28release not specifically identified in the approved cleanup or
29remedial action plan:

30(1) Any employee or agent of the agency, including an
31instrumentality of the agency authorized to exercise some, or all,
32of the powers of an agency within, or for the benefit of, a
33redevelopment project or its jurisdiction and any employee or agent
34of the instrumentality.

35(2) Any person who enters into an agreement with an agency
36for the redevelopment of property, if the agreement requires the
37person to acquire property affected by a hazardous substance
38release or to remove or remedy a hazardous substance release with
39respect to that property.

P13   1(3) Any person who acquires the property after a person has
2entered into an agreement with an agency for redevelopment of
3the property as described in paragraph (2).

4(4) Any person who provided financing to a person specified
5in paragraph (2) or (3).

6(f) Notwithstanding any other provision of law, the immunity
7provided by this section does not extend to any of the following:

8(1) Any person who was a responsible party for the release
9before entering into an agreement, acquiring property, or providing
10financing, as specified in subdivision (e).

11(2) Any person specified in subdivision (a) or (e) for any
12subsequent release of a hazardous substance or any release of a
13hazardous substance not specifically identified in the approved
14cleanup or remedial action plan.

15(3) Any contractor who prepares the cleanup or remedial action
16plan, or conducts the removal or remedial action.

17(4) Any person who obtains an approval, as specified in
18subdivision (b), or a determination, as specified in subdivision (c),
19by fraud, negligent or intentional nondisclosure, or
20misrepresentation, and any person who knows before the approval
21or determination is obtained or before the person enters into an
22agreement, acquires the property or provides financing, as specified
23in subdivision (e), that the approval or determination was obtained
24by these means.

25(g) The immunity provided by this section is in addition to any
26other immunity of an agency provided by law.

27(h) This section does not impair any cause of action by an
28agency or any other party against the person, firm, or entity
29responsible for the hazardous substance release which is the subject
30of the removal or remedial action taken by the agency or other
31person immune from liability pursuant to this section.

32(i) This section does not apply to, or limit, alter, or restrict, any
33action for personal injury, property damage, or wrongful death.

34(j) This section does not limit liability of a person described in
35paragraph (3) or (4) of subdivision (e) for damages under the
36Comprehensive Environmental Response, Compensation, and
37Liability Act of 1980, as amended (42 U.S.C. Sec. 9601 et seq.).

38(k) This section does not establish, limit, or affect the liability
39of an agency for any release of a hazardous substance that is not
P14   1investigated or remediated pursuant to this section or Chapter 6.65
2(commencing with Section 25260) of Division 20.

3(l) The immunity provided for by this section is only conferred
4if both of the following apply:

5(1) The action is in accordance with a cleanup or remedial action
6plan prepared by a qualified independent contractor and approved
7by the department or a California regional water quality control
8board or the local agency, as appropriate, pursuant to subdivision
9(b).

10(2) The remedial or removal action is undertaken and properly
11completed, as specified in subdivision (c).

12(m) The agency shall reimburse the department, the California
13regional water quality control board, and the local agency for costs
14incurred in reviewing or approving cleanup or remedial action
15plans pursuant to this section.

16

SEC. 5.  

Section 33459.8 of the Health and Safety Code is
17amended to read:

18

33459.8.  

If an agency undertakes any action to remedy or
19remove a release of hazardous substances on, under, or from
20property within a project area or property within its jurisdiction
21that previously was within the jurisdiction of a former
22redevelopment agency, the agency shall, if it is required to have
23a redevelopment plan, amend its redevelopment plan and follow
24the same procedure, as specified, and the legislative body is subject
25to the same restrictions as provided for in Article 4 (commencing
26with Section 33330), for the adoption of a redevelopment plan, if
27the agency determines that as a result of the remedial or removal
28action, it will also be taking any of the following actions:

29(a) Proposing to add new territory to a project area.

30(b) Increasing either the limitation on the amount of funds to
31be allocated to the agency or the time limit on the establishing of
32loans, advances, and indebtedness established pursuant to
33subdivisions (1) and (2) of Section 33333.2.

34(c) Lengthening the period during which the redevelopment
35plan is effective.

36(d) Merging project areas.

37(e) Adding significant additional capital improvement projects.



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