BILL ANALYSIS Ó SB 684 Page 1 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 ----------------------------------------------------------------- |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 | | | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Gatto, Harkey, Bigelow, | | | | |Bocanegra, Bradford, Ian | | | | |Calderon, Campos, | | | | |Donnelly, Eggman, Gomez, | | | | |Hall, Holden, Linder, | | | | |Pan, Quirk, Wagner, Weber | | | | | | | | ----------------------------------------------------------------- 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 SB 684 Page 2 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 SB 684 Page 3 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 SB 684 Page 4