BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 470
                                                                  Page  1

          Date of Hearing:   August 30, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   SB 470 (Wright) - As Amended:  August 21, 2013 

          Policy Committee:                             Housing and  
          Community Development                         Vote: 5-2       
                       Local Government                       7-2     
                                                        
          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          As proposed to be amended, this bill reestablishes the powers  
          and protections of the Polanco Act for cities and counties to  
          clean up and use contaminated land, and grants flexibility for  
          cities and counties to sell, at fair reuse value, lands formally  
          within the jurisdiction of a redevelopment agency.  

           FISCAL EFFECT  

          Negligible fiscal impact.  

          The State Departments of Toxic Substances Control and regional  
          water quality control boards review plans under the Polanco Act  
          and are reimbursed for their efforts.  

          COMMENTS  

           1)Purpose  .  The author contends SB 470 gives cities and counties  
            economic opportunity powers not currently available: 
             a)   Allowing local governments to sell the property at fair  
               reuse value.
             b)   Allowing local agencies to use the Polanco Act.  

            The author states the Health and Safety Code previously  
            authorized local governments to sell land at fair reuse value,  
            rather than at fair market value and the Polanco Act provided  
            incentives for brownfield site abatement.  Though useful to  
            local governments in pursuit of developing economic  
            opportunity, and despite the fact there is no monetary impact  
            to the state, these provisions were removed as part of  








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            sweeping changes to state redevelopment law in 2011.

           2)Support  .  According to the sponsor, the City of Long Beach,  
            this bill provides local governments with a transparent  
            process to engage in facilitating economic opportunity at no  
            cost to the state.  Supporters, including many local  
            governments, argue that a fair reuse value evaluation, rather  
            than a purely financial fair market value evaluation, enables  
            local governments to determine the land use plan that best  
            fits the community after engaging in a process to identify the  
            most appropriate community need.  

           3)Opposition.   The Department of Finance opposes extending the  
            Polanco Act to former redevelopment agencies, contending it is  
            inappropriate and unnecessary since the agencies no longer  
            exist.  

           4)Background  .  Redevelopment agencies and community development  
            agencies were officially dissolved in February 2012 with  
            successor agencies designated to resolve final matters and to  
            dispose of assets and properties.  The Polanco Redevelopment  
            Act provided RDAs with the ability to address brownfield  
            properties by prescribing processes for remediating hazardous  
            substance release and providing specified immunity from  
            liability for site cleanup.

           5)Proposed author's amendments  .  The amendments proposed by the  
            author eliminate the bill's proposed changes to the Polanco  
            Act and instead  authorize local governments to use the  
            Polanco Act with the following:

            Government Code Section 52205.  A city, county, or city and  
            county has the same authority as granted to redevelopment  
            agencies to use the "Polanco Redevelopment Act" as defined in  
            Article 12.5 (commencing with Section 33459) of Part 1 of  
            Division 24 of the Health and Safety Code only with regard to  
            property that is within its jurisdiction that previously was  
            within the jurisdiction of a redevelopment agency.

            Section 1 which contains findings and declaration and the  
            authorization for local governments to sell land at fair reuse  
            value is maintained in the bill.

           6)Relevant legislation  .  AB 440 (Gatto) authorizes local  
            government agencies to remedy or remove a release of hazardous  








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            substances within the boundaries of a local agency.  This bill  
            is on the Senate Appropriations Committee Suspense File.  
                


           Analysis Prepared by  :    Roger Dunstan and Kevin Liao / APPR. /  
          (916) 319-2081