BILL ANALYSIS Ó
SB 684
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SENATE THIRD READING
SB 684 (Hill)
As Amended August 13, 2013
2/3 vote. Urgency
SENATE VOTE :34-0
GOVERNMENTAL ORGANIZATION 15-0 HOUSING 7-0
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|Ayes:|Hall, Nestande, Bigelow, |Ayes:|Chau, Beth Gaines, |
| |Campos, Chesbro, Cooley, | |Atkins, Brown, |
| |Gray, Hagman, Roger | |Maienschein, Quirk-Silva, |
| |Hernández, Jones-Sawyer, | |Mullin |
| |Levine, Medina, V. Manuel | | |
| |Pérez, Salas, Waldron | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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APPROPRIATIONS 17-0
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|Ayes:|Gatto, Harkey, Bigelow, | | |
| |Bocanegra, Bradford, Ian | | |
| |Calderon, Campos, | | |
| |Donnelly, Eggman, Gomez, | | |
| |Hall, Holden, Linder, | | |
| |Pan, Quirk, Wagner, Weber | | |
| | | | |
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SUMMARY : Recasts the redevelopment agency exemption to the Outdoor
Advertising Act (OAA) to reflect the elimination of redevelopment
agencies. Specifically, this bill :
1)Allows an existing advertising display to be considered on-premise
if the display:
a) Advertises those businesses and activities developed within
the former redevelopment agency project area boundaries, as
those boundaries existed on December 29, 2011;
b) Is located within the boundary limits of the project;
c) Was constructed, was under construction, or had been
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approved for construction by the designated agency of the
project on or before January 1, 2012;
d) Does not cause the reduction in federal aid highway funds.
2)Authorizes, on and after January 1, 2022, the designated agency to
request from the California Department of Transportation
(Caltrans) an extension beyond January 1, 2023, not to exceed the
expiration of the redevelopment project area.
3)Specifies that the designated successor agency shall be
responsible for ensuring these advertising displays are
advertising qualifying businesses, are otherwise being operated
lawfully, and remain in the public's best interest, but does
specify that nothing in this provision shall be construed to
preclude any enforcement authority by Caltrans.
FISCAL EFFECT : According to the Assembly Appropriations Committee,
there are no significant costs associated with this legislation.
COMMENTS :
Purpose of the bill : According to the author, this bill would
authorize the extension, preservation and retention of existing
redevelopment signs with approval of the local city or county.
Current law allows special signs identifying businesses and
activities developed within the boundaries of redevelopment agency
projects, for a period up to ten years.
The bill does not authorize any new signage, but instead seeks to
retain the investment-backed expectations of public and private
entities which either own or operate existing signs in former
redevelopment areas.
Due to the elimination of redevelopment agencies, one of the
unintended consequences is that the sign agreements, formerly
authorized by redevelopment agencies, can no longer be extended
because there is no redevelopment agency to authorize the extension.
Currently, there are approximately 95 such signs in California
which have Caltrans permits. Some of these will be expiring in the
near future, including several this year.
History : Historically, the Community Redevelopment Law allowed a
local government to establish a redevelopment area and capture all
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of the increase in property taxes generated within the area over a
period of decades. These tax revenues were intended to address the
blighted nature of a project area, and if used effectively,
therefore, should have eventually ended the blight and become
unnecessary. Because of this, over time these projects areas were
given expiration dates, generally up to 40 years following their
inception, until which they were able to collect tax revenues and
pay off debt.
In 2011, the Legislature enacted AB 26 X1 (Blumenfield), Chapter 5,
Statutes of 2011-12 First Extraordinary Session. AB 26X eliminated
redevelopment agencies and established procedures for winding down
agencies, paying off enforceable obligations, and disposing of
agency assets. In addition, AB 26X established successor agencies,
typically the city that established the agency, to take control of
all redevelopment agency assets, properties, and other items of
value. Successor agencies are to dispose of an agency's assets as
directed by an oversight board, made up of representatives of local
taxing entities, with the proceeds transferred to the country
auditor-controller for distribution to taxing agencies within each
county.
Permits after the Elimination of Redevelopment Agencies : As
mentioned earlier, Caltrans enforces the OAA, which includes
activities such as maintaining a list of landscaped freeways,
issuing permits for signs allowed by statute to exist, and fining
owners of non-compliant signs. Many of these signs are currently or
will soon be in existence longer than 10 years and therefore have
permits which need to be extended.
On April 11, 2013, Caltrans issued a "Notice of Redevelopment
Display Status Change." The notice indicates that successor agency
permission will allow continued operation of the previously approved
display, but that no new exemptions or extensions will be given
absent legislative action.
Analysis Prepared by : Felipe Lopez / G. O. / (916) 319-2531
FN: 0002036
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