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:
Part 4 (commencing with Section 52200) is added
2to Division 1 of Title 5 of the Government Code, to read:
It is the intent of the Legislature to do all of the
10(a) Promote economic development on a local level so that
11communities can enact local strategies to increase jobs, create
12economic opportunity, and generate tax revenue for all levels of
14(b) Give local governments tools, at no cost to the state, that
15allow local governments to use their funds in a manner that
16promotes economic opportunity.
17(c) With the loss of redevelopment funds, cities, counties, and
18cities and counties need to continue certain powers afforded to
19redevelopment agencies that were critical to economic
20development, yet do not have an impact on schools and the state
As used in this part “economic opportunity” means
23any of the following:
24(a) Development agreements or other agreements that create,
25retain, or expand new jobs, in which the legislative body finds that
26the agreement will create or retain at least one full-time equivalent,
27permanent job for every thirty-five thousand dollars ($35,000) of
28city, county, or city and county investment in the project after full
29capacity and implementation.
30(b) Development agreements that increase property tax revenues
31to all property tax collecting entities, in which the legislative body
32finds that the agreement will result in an increase of at least 15
33percent of total property tax resulting from the project at full
34implementation when compared to the year prior to the property
35being acquired by the government entity.
36(c) Creation of affordable housing, if a demonstrated affordable
37housing need exists in the community, as defined in the approved
38housing element or regional housing needs assessment.
P4 1(d) Projects that meet the goals set forth in Chapter 728 of the
2Statutes of 2008 and have been included in an adopted sustainable
3communities strategy or alternative planning strategy or a project
4that specifically implements the goals of those adopted plans.
5(e) Transit priority projects, as defined in Section 21155 of the
6Public Resources Code.
It is declared to be the policy of the state:
8(a) To protect and promote the sound development of economic
9opportunity in cities and counties and the general welfare of the
10inhabitants of those communities through the employment of all
12(b) That whenever the creation of economic opportunity in cities
13and counties cannot be accomplished by private enterprise alone,
14without public participation and assistance in the acquisition of
15land, in planning and in the financing of land assembly, in the
16work of clearance, and in the making of improvements necessary
17therefor, it is in the public interest to advance or expend public
18funds for these purposes, and to provide a means by which
19 economic opportunity can be created.
20(c) That the creation of economic opportunity and the provisions
21for appropriate continuing land use and construction policies with
22respect to property acquired, in whole or in part, for economic
23opportunity constitute public uses and purposes for which public
24money may be advanced or expended and private property
25acquired, and are governmental functions of state concern in the
26interest of health, safety, and welfare of the people of the state and
27cities and counties.
28(d) That the necessity in the public interest for the provisions
29of this part is declared to be a matter of legislative determination.
This chapter shall not be interpreted to authorize the
31use of eminent domain for economic development purposes.
(a) (1) Before any city, county, or city and county
36property that is returned to the city, county, or city and county per
37the long-range property management plan, pursuant to Section
3834191.5 of the Health and Safety Code, is sold or leased for
39economic development purposes, the sale or lease shall first be
40approved by the legislative body by resolution after public hearing.
P5 1Notice of the time and place of the hearing shall be published in
2a newspaper of general circulation in the community at least once
3per week for at least two successive weeks, as specified in Section
46066, prior to the hearing.
5(2) The city, county, or city and county
shall make available,
6for public inspection and copying at a cost not to exceed the cost
7of duplication, a report no later than the time of publication of the
8first notice of the hearing mandated by this section. This report
9shall contain both of the following:
10(A) A copy of the proposed sale or lease.
11(B) A summary that describes and specifies all of the following:
12(i) The cost of the agreement to the city, county, or city and
13county, including land acquisition costs, clearance costs, relocation
14costs, the costs of any improvements to be provided by the city,
15county, or city and county, plus the expected interest on any loans
16or bonds to finance the agreements.
17(ii) The estimated value of the interest to be conveyed or leased,
18determined at the highest and best uses permitted under the general
19plan or zoning.
20(iii) The estimated value of the interest to be conveyed or leased,
21determined at the use and with the conditions, covenants, and
22development costs required by the sale or lease. The purchase price
23or present value of the lease payments which the lessor will be
24required to make during the term of the lease. If the sale price or
25total rental amount is less than the fair market value of the interest
26to be conveyed or leased, determined at the highest and best use,
27then the city, county, or city and county shall provide as part of
28the summary an explanation of the reasons for the difference.
29(iv) An explanation of why the sale or
lease of the property will
30assist in the creation of economic opportunity, with reference to
31all supporting facts and materials relied upon in making this
33(b) The resolution approving the lease or sale shall be adopted
34by a majority vote unless the legislative body has provided by
35ordinance for a two-thirds vote for that purpose and shall contain
36a finding that the sale or lease of the property will assist in the
37creation of economic opportunity. The resolution shall also contain
38one of the following findings:
39(1) The consideration is not less than the fair market value at
40its 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.
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.
(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
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.
Section 33459 of the Health and Safety Code is
22amended to read:
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
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
35(e) “Local agency” means a single local agency that is one of
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
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:
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.
For purposes of this article, the following terms shall
23have the following meanings:
27 “Department” means the Department of Toxic Substances
30 “Director” means the Director of Toxic Substances Control.
32 “Hazardous substance” means any hazardous substance as
33defined in subdivision (h) of Section 25281, and any reference to
34hazardous substance in the definitions referenced in this section
35shall be deemed to refer to hazardous substance, as defined in this
38 “Local agency” means a single local agency that is one of
P8 1(1) A local agency authorized pursuant to Section 25283 to
2implement Chapter 6.7 (commencing with Section 25280) of, and
3Chapter 6.75 (commencing with Section 25299.10) of, Division
5(2) A local officer who is authorized pursuant to Section 101087
6to supervise a remedial action.
12 “Qualified independent contractor” means an independent
13contractor who is any of the following:
14(1) An engineering geologist who is certified pursuant to Section
157842 of the Business and Professions Code.
16(2) A geologist who is registered pursuant to Section 7850 of
17the Business and Professions Code.
18(3) A civil engineer who is registered pursuant to Section 6762
19of the Business and Professions Code.
21 “Release” means any release, as defined in Section 25320.
23 “Remedy” or “remove” means any action to assess, evaluate,
24investigate, monitor, remove, correct, clean up, or abate a release
25of a hazardous substance or to develop plans for those actions.
26“Remedy” includes any action set forth in Section 25322 and
27“remove” includes any action set forth in Section 25323.
29 “Responsible party” means any person described in
30subdivision (a) of Section 25323.5 of this code or subdivision (a)
31of Section 13304 of the Water Code.
Section 33459.1 of the Health and Safety Code is
33amended to read:
(a) (1) An agency may take any actions that the
35agency determines are necessary and that are consistent with other
36state and federal laws to remedy or remove a release of hazardous
37substances on, under, or from property within a project area or
38property within its jurisdiction that previously was within the
39jurisdiction of a former redevelopment agency, whether the agency
40owns that property or not, subject to the conditions specified in
P9 1subdivision (b). Unless an administering agency has been
2designated under Section 25262, the agency shall request cleanup
3guidelines from the department or the California regional water
4quality control board before taking action to remedy or remove a
5release. The department or the California regional water quality
6control board shall respond to the agency’s request to provide
7cleanup guidelines within a reasonable period of time. The agency
8shall thereafter submit for approval a cleanup or remedial action
9plan to the department or the California regional water quality
10control board before taking action to remedy or remove a release.
11The department or the California regional water quality control
12board shall respond to the agency’s request for approval of a
13cleanup or remedial action plan within a reasonable period of time.
14(2) The agency shall provide the
begin delete department andend delete
15 local health and building departments, the California regional
16water quality control board, with notification of any cleanup
17activity pursuant to this section at least 30 days before the
18commencement of the activity. If an action taken by an agency or
19a responsible party to remedy or remove a release of a hazardous
20substance does not meet, or is not consistent with, a remedial action
21plan or cleanup plan approved by the department or the California
22regional water quality control board, the department or the
23California regional water quality control board that approved the
24cleanup or remedial action plan may require the agency to take,
25or cause the taking of, additional action to remedy or remove the
26release, as provided by applicable law. If an administering agency
27for the site has been designated under Section 25262, any
28requirement for additional action may be imposed only as provided
29in Sections 25263 and 25265. If methane or landfill gas is present,
30the agency shall obtain written approval from the California
31Integrated Waste Management Board prior to taking that action.
32(b) Except as provided in subdivision (c), an agency may take
33the actions specified in subdivision (a) only under one of the
35(1) There is no responsible party for the release identified by
37(2) A party determined by the agency to be a responsible party
38for the release has been notified by the agency or has received
39adequate notice from the department, a California regional water
40quality control board, the Environmental Protection
P10 1Agency, or other governmental agency with relevant authority and
2has been given 60 days to respond and to propose a remedial action
3plan and schedule, and the responsible party has not agreed within
4an additional 60 days to implement a plan and schedule to remedy
5or remove the release that is acceptable to the agency and that has
6been found by the agency to be consistent, to the maximum extent
7possible, with the priorities, guidelines, criteria, and regulations
8contained in the National Contingency Plan and published pursuant
9to Section 9605 of Title 42 of the United States Code for similar
10releases, situations, or events.
11(3) The party determined by the agency to be the responsible
12party for the hazardous substance release entered into an agreement
13with the agency to prepare a remedial action plan for approval by
14the department, the California regional water quality control board,
15or the appropriate local agency and to implement the remedial
16action plan in accordance with an agreed schedule, but failed to
17prepare the remedial action plan, failed to implement the remedial
18action plan in accordance with the agreed schedule, or otherwise
19failed to carry out the remedial action in an appropriate and timely
20manner. Any action taken by the agency pursuant to this paragraph
21shall be consistent with any agreement between the agency and
22the responsible party and with the requirements of the state or local
23agency that approved or will approve the remedial action plan and
24is overseeing or will oversee the preparation and implementation
25of the remedial action plan.
26(c) Subdivision (b) does not apply to either of the following
28(1) An agency taking actions to investigate or conduct feasibility
29studies concerning a release.
30(2) An agency taking the actions specified in subdivision (a) if
31the agency determines that conditions require immediate action.
32(d) An agency may designate a local agency in lieu of the
33department or the California regional water quality control board
34to review and approve a cleanup or remedial action plan and to
35oversee the remediation or removal of hazardous substances from
36a specific hazardous substance release site in accordance with the
38(1) The local agency may be so designated if it is designated as
39the administering agency under Section 25262. In that event, the
40local agency, as the administering agency, shall conduct the
P11 1oversight of the remedial action in accordance with Chapter 6.65
2(commencing with Section 25260) and all provisions of that chapter
3shall apply to the remedial action.
4(2) The local agency may be so designated if cleanup guidelines
5were requested from a California regional water quality control
6board, and the site is an underground storage tank site subject to
7Chapter 6.7 (commencing with Section 25280) of Division 20, the
8local agency has been certified as a certified unified program
9agency pursuant to Section 25404.1, the State Water Resources
10Control Board has entered into an agreement with the local agency
11for oversight of those sites pursuant to Section 25297.1, the local
12agency determines that the site is within the guidelines and
13protocols established in, and pursuant to, that agreement, and the
14local agency consents to the designation.
15(3) A local agency may not consent to the designation by an
16agency unless the local agency determines that it has adequate
17staff resources and the requisite technical expertise and capabilities
18available to adequately supervise the remedial action.
19(4) (A) Where a local agency has been designated pursuant to
20paragraph (2), the department or a California regional water quality
21control board may require that a local agency withdraw from the
22designation, after providing the agency with adequate notice, if
23both of the following conditions are met:
24(i) The department or a California regional water quality control
25board determines that an agency’s designation of a local agency
26was not consistent with paragraph (2), or makes one of the findings
27specified in subdivision (d) of Section 101480.
28(ii) The department or a California regional water quality control
29board determines that it has adequate staff resources and
30capabilities available to adequately supervise the remedial action,
31and assumes that responsibility.
32(B) Nothing in this paragraph prevents a California regional
33water quality control board from taking any action pursuant to
34Division 7 (commencing with Section 13000) of the Water Code.
35(5) Where a local agency has been designated pursuant to
36paragraph (2), the local agency may, after providing the agency
37with adequate notice, withdraw from its designation after making
38one of the findings specified in subdivision (d) of Section 101480.
39(e) To facilitate redevelopment planning, the agency may require
40the owner or operator of any site within a project area or its
P12 1jurisdiction to provide the agency with all existing environmental
2information pertaining to the site, including the results of any Phase
3I or subsequent environmental assessment, as defined in Section
425200.14, any assessment conducted pursuant to an order from,
5or agreement with, any federal, state or local agency, and any
6other environmental assessment information, except that which is
7determined to be privileged. The person requested to furnish the
8information shall be required only to furnish that information as
9 may be within their possession or control, including actual
10knowledge of information within the possession or control of any
11other party. If environmental assessment information is not
12available, the agency may require the owner of the property to
13conduct an assessment in accordance with standard real estate
14practices for conducting phase I or phase II environmental
Section 33459.3 of the Health and Safety Code is
17amended to read:
(a) Notwithstanding any other provision of law,
19except as provided in Section 33459.7, an agency that undertakes
20and completes an action, or causes another person to undertake
21and complete an action pursuant to Section 33459.1, as specified
22in subdivision (c), to remedy or remove a hazardous substance
23release on, under, or from property within a redevelopment project,
24in accordance with a cleanup or remedial action plan prepared by
25a qualified independent contractor and approved by the department
26or a California regional water quality control board or the local
27agency, as appropriate, pursuant to subdivision (b), is not liable,
28with respect to that release only, under Division 7 (commencing
29with Section 13000) of the Water Code or Chapter 6.5
30(commencing with Section 25100), Chapter 6.7 (commencing with
31Section 25280), Chapter 6.75 (commencing with Section
3225299.10), or Chapter 6.8 (commencing with Section 25300), of
33Division 20 of this code, or any other state or local law providing
34liability for remedial or removal actions for releases of hazardous
35substances. If the remedial action was also performed pursuant to
36Chapter 6.65 (commencing with Section 25260) of Division 20,
37and a certificate of completion is issued pursuant to subdivision
38(b) of Section 25264, the immunity from agency action provided
39by the certificate of completion, as specified in subdivision (c) of
40Section 25264, shall apply to the agency, in addition to the
P13 1immunity conferred by this section. In the case of a remedial action
2performed pursuant to Chapter 6.65 (commencing with Section
325260) of Division 20, and for which the administering agency is
4a local agency, the limitations on the certificate of completion set
5forth in paragraphs (1) to (6), inclusive, of subdivision (c) of
6Section 25264 are limits on any immunity provided for by this
7section and subdivision (c) of Section 25264.
8(b) Upon approval of any cleanup or remedial action plan,
9pursuant to applicable statutes and regulations, the director or the
10California regional water quality control board or the local agency,
11as appropriate, shall acknowledge, in writing, within 60 days of
12the date of approval, that upon proper completion of the remedial
13or removal action in accordance with the plan, the immunity
14provided by this section shall apply to the agency.
15(c) Notwithstanding any provision of law or policy providing
16for certification by a person conducting a remedial or removal
17action that the action has been properly completed, a determination
18that a remedial or removal action has been properly completed
19pursuant to this section shall be made only upon the affirmative
20approval of the director or the California regional water quality
21 control board or the local agency, as appropriate. The department,
22California regional water quality control board, or local agency,
23as appropriate, shall, within 60 days of the date it finds that a
24remedial action has been completed, notify the agency in writing
25that the immunity provided by this section is in effect.
26(d) The approval of a cleanup or remedial action plan under this
27section by a local agency shall also be subject to the concurrent
28approval of the department or a California regional water quality
29control board when the agency receiving the approval was formed
30by the same entity of which the local agency is a part.
31(e) Upon proper completion of a remedial or removal action,
32as specified in subdivision (c), the immunity from agency action
33provided by the certificate of completion provided pursuant to
34subdivision (c) of Section 25264 and the immunity provided by
35this section extends to all of the following, but only for the release
36or releases specifically identified in the approved cleanup or
37remedial action plan and not for any subsequent release or any
38release not specifically identified in the approved cleanup or
39remedial action plan:
P14 1(1) Any employee or agent of the agency, including an
2instrumentality of the agency authorized to exercise some, or all,
3of the powers of an agency within, or for the benefit of, a
4redevelopment project or its jurisdiction and any employee or
5agent of the instrumentality.
6(2) Any person who
enters into an agreement with an agency
7for the redevelopment of property, if the agreement requires the
8person to acquire property affected by a hazardous substance
9release or to remove or remedy a hazardous substance release with
10respect to that property.
11(3) Any person who acquires the property after a person has
12entered into an agreement with an agency for redevelopment of
13the property as described in paragraph (2).
14(4) Any person who provided financing to a person specified
15in paragraph (2) or (3).
16(f) Notwithstanding any other provision of law, the immunity
17provided by this section does not extend to any of the following:
18(1) Any person who was a
responsible party for the release
19before entering into an agreement, acquiring property, or providing
20financing, as specified in subdivision (e).
21(2) Any person specified in subdivision (a) or (e) for any
22subsequent release of a hazardous substance or any release of a
23hazardous substance not specifically identified in the approved
24cleanup or remedial action plan.
25(3) Any contractor who prepares the cleanup or remedial action
26plan, or conducts the removal or remedial action.
27(4) Any person who obtains an approval, as specified in
28subdivision (b), or a determination, as specified in subdivision (c),
29by fraud, negligent or intentional nondisclosure, or
30misrepresentation, and any person who knows before the approval
31or determination is obtained or before the person enters into an
32agreement, acquires the property or provides financing, as specified
33in subdivision (e), that the approval or determination was obtained
34by these means.
35(g) The immunity provided by this section is in addition to any
36other immunity of an agency provided by law.
37(h) This section does not impair any cause of action by an
38agency or any other party against the person, firm, or entity
39responsible for the hazardous substance release which is the subject
P15 1of the removal or remedial action taken by the agency or other
2person immune from liability pursuant to this section.
3(i) This section does not apply to, or limit, alter, or restrict, any
4action for personal injury, property damage, or wrongful death.
5(j) This section does not limit liability of a person described in
6paragraph (3) or (4) of subdivision (e) for damages under the
7 Comprehensive Environmental Response, Compensation,
8and Liability Act of 1980, as amended (42 U.S.C. Sec. 9601 et
10(k) This section does not establish, limit, or affect the liability
11of an agency for any release of a hazardous substance that is not
12investigated or remediated pursuant to this section or Chapter 6.65
13(commencing with Section 25260) of Division 20.
14(l) The immunity provided for by this section is only conferred
15if both of the following apply:
16(1) The action is in accordance with a cleanup or remedial action
17plan prepared by a qualified independent contractor and approved
18by the department or a California regional water quality control
19board or the local agency, as appropriate, pursuant to subdivision
21(2) The remedial or removal action is undertaken and properly
22completed, as specified in subdivision (c).
23(m) The agency shall reimburse the department, the California
24regional water quality control board, and the local agency for costs
25incurred in reviewing or approving cleanup or remedial action
26plans pursuant to this section.
Section 33459.8 of the Health and Safety Code is
28amended to read:
If an agency undertakes any action to remedy or
30remove a release of hazardous substances on, under, or from
31property within a project area or property within its jurisdiction
32that previously was within the jurisdiction of a former
33redevelopment agency, the agency shall, if it is required to have
34a redevelopment plan, amend its redevelopment plan and follow
35the same procedure, as specified, and the legislative body is subject
36to the same restrictions as provided for in Article 4 (commencing
37with Section 33330), for the adoption of a redevelopment plan, if
38the agency determines that as a result of the remedial or removal
39action, it will also be taking any of the following actions:
40(a) Proposing to add new territory to a project area.
P16 1(b) Increasing either the limitation on the amount of funds to
2be allocated to the agency or the time limit on the establishing of
3loans, advances, and indebtedness established pursuant to
begin delete (1)end delete and begin delete (2)end delete of Section 33333.2.
5(c) Lengthening the period during which the redevelopment
6plan is effective.
7(d) Merging project areas.
8(e) Adding significant additional capital improvement projects.