BILL NUMBER: AB 178	CHAPTERED
	BILL TEXT

	CHAPTER   462
	FILED WITH SECRETARY OF STATE   SEPTEMBER 22, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 22, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 2, 1999
	PASSED THE SENATE   AUGUST 26, 1999
	AMENDED IN SENATE   AUGUST 23, 1999
	AMENDED IN SENATE   AUGUST 17, 1999
	AMENDED IN SENATE   JULY 12, 1999
	AMENDED IN SENATE   JULY 7, 1999
	AMENDED IN ASSEMBLY   MAY 20, 1999
	AMENDED IN ASSEMBLY   MAY 3, 1999
	AMENDED IN ASSEMBLY   APRIL 12, 1999

INTRODUCED BY   Assembly Members Torlakson and Runner

                        JANUARY 19, 1999

   An act to add and repeal Section 53084 of the Government Code, and
to add and repeal Section 33426.7 of the Health and Safety Code,
relating to local government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 178, Torlakson.  Development:  financial assistance:
relocation.
   Existing law permits a redevelopment agency, under specified
circumstances, to pay all or part of the costs of land, or the
installation and construction of any structure or other improvement
that is publicly owned within or without a project area.  Existing
law prohibits a redevelopment agency from providing any form of
direct assistance to an automobile dealership on a parcel not
previously developed for urban use, or a development on a parcel of 5
acres or more not previously developed for urban use that would
generate sales and use taxes, except as specified.
   This bill, until January 1, 2005, would further prohibit a
redevelopment agency, and would prohibit a city or county, from
providing any form of financial assistance to an automobile
dealership or big box retailer, or a business entity that sells or
leases land to an automobile dealership or big box retailer, that is
relocating from the territorial jurisdiction of one community, or
city or county, to the territorial jurisdiction of another community,
or city or county, but within the same market area, unless the
receiving community, or city or county, offers the other community,
or city or county, a contract that apportions sales tax generated by
the dealership or retailer between the 2 communities, or cities or
counties, as specified, and the agency, or city or county, holds a
public hearing and adopts a resolution making specified findings
relating to whether or not a contract has been approved.
   This bill would require the California Research Bureau to report
to the Governor and the Legislature on or before January 1, 2004,
regarding the implementation of its provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  (a) The Legislature finds and declares that the
provision of financial assistance by local agencies to automobile
dealerships and big box retailers that seek to obtain public funds
from local agencies as subsidies for their relocation, results in the
loss of public funds available for public purposes, impedes the
implementation of good planning, encourages unfair competition
between local agencies, and does not result in a public benefit to
the people of the state.
   (b) The Legislature further finds and declares that limiting this
competition for sales tax revenues is an issue of statewide concern
and therefore it is necessary to apply the provisions of this act to
all cities and counties in the state.
  SEC. 2.  Section 53084 is added to the Government Code, to read:
   53084.  (a) Notwithstanding any other provision of this part, a
local agency shall not provide any form of financial assistance to an
automobile dealership or big box retailer, or a business entity that
sells or leases land to an automobile dealership or big box
retailer, that is relocating from the territorial jurisdiction of one
local agency to the territorial jurisdiction of another local agency
but within the same market area, unless the legislative body of the
local agency to which the relocation will occur offers the contract
to the local agency from which the relocation is occurring pursuant
to this section.
   (b) If the automobile dealership or big box retailer is relocating
within the same county, including both incorporated and
unincorporated territory, or to an adjacent county or a city within
an adjacent county, the local agency proposing to offer financial
assistance shall prepare a report that describes the market area for
the automobile dealership or big box retailer that is relocating.
The report shall include the information required to be contained in
the resolution pursuant to subdivision (e).  The report shall refer
to and cite the independent literature, trade publications, and
recognized and established business policies and practices describing
the market area for the automobile dealership or big box retailer
that is relocating.  The report shall conclude that the relocation is
occurring either within the same market area or outside the same
market area.  The report shall be available to the public not later
than 45 days prior to the date of the public hearing required by
subdivision (d).  In addition, the notice of the public hearing and
the report shall be mailed to the local agency from which the
relocation is occurring.
   (c) (1) If the report prepared pursuant to subdivision (b)
concludes that the automobile dealership or big box retailer is
relocating within the same market area, at least 45 days prior to the
public hearing required pursuant to subdivision (d), the agency
shall notify the local agency from which the relocation is occurring
of its intent to give financial assistance and shall send to that
local agency a contract that has been approved by a two-thirds vote
of the legislative body of the local agency and that apportions the
sales tax generated from the automobile dealership or big box
retailer after the relocation between the two local agencies in the
following manner:
   (A) The annual amount of assistance shall be subtracted from the
annual sales tax.
   (B) The difference shall be divided equally between the two local
agencies for the first 10 fiscal years following the relocation.
However, in no event shall the local agency from which the relocation
is occurring receive more sales tax than it received from the
automobile dealership or big box retailer in the fiscal year prior to
the relocation.
   (C) After the first 10 fiscal years following the relocation, the
contract shall terminate and the apportionment shall end unless the
contract is extended by both local agencies.
   (2) The local agency from which the relocation is occurring shall
have 30 days after receipt of the contract to approve the contract by
enacting a resolution or ordinance approved by a two-thirds vote of
its legislative body.
   (d) Prior to a local agency giving any financial assistance to an
automobile dealership or big box retailer that is relocating, the
agency shall hold a public hearing.  Notice of the time and place of
the public hearing shall be published in a newspaper of general
circulation in the local agency at least once per week for at least
three successive weeks, as specified in Section 6063 of the
Government Code, prior to the hearing.
   (e) The resolution approving financial assistance shall do all of
the following:
   (1) Identify the present name and, if different, the former name
of the relocating automobile dealership or big box retailer.
   (2) Identify the address, including the local agency, from which
the automobile dealership or big box retailer has moved or will move.

   (3) Identify the address, including the local agency, to which the
automobile dealership or big box retailer will move.
   (4) Contain one of the following findings:
   (A) That the automobile dealership or big box retailer is not
relocating within the same market area.
   (B) That the automobile dealership or big box retailer is
relocating within the same market area but that a contract containing
the terms specified in subdivision (c) has been approved by the
local agency's legislative body, and offered to the local agency from
which the relocation has occurred, which has approved the agreement,
entered into another agreement acceptable to both local agencies, or
has not accepted the proposed contract within the 30-day period.
   These findings shall be final and conclusive as to all persons
except for the automobile dealership or big box retailer that is the
subject of the findings and the community from which the relocation
has occurred, all of which may bring an action to challenge these
findings.
   (f) As used in this section, the following terms have the
following meaning:
   (1) "Big box retailer" means a store of greater than 75,000 square
feet of gross buildable area that will generate sales or use tax
pursuant to Part 1.5 (commencing with Section 7200) of Division 2 of
the Revenue and Taxation Code.
   (2) "Local agency" means a chartered or general law city, a
chartered or general law county, or a city and county.  "Local agency"
does not include a redevelopment agency that is subject to Section
33426.7 of the Health and Safety Code.
   (3) "Financial assistance" includes, but is not limited to, any of
the following:
   (A) Any appropriation of public funds, including loans, grants, or
subsidies or the payment for or construction of parking
improvements.
   (B) Any tax incentive, including tax exemptions, rebates,
reductions, or moratoria of a tax, including any rebate or payment
based upon the amount of sales tax generated from the automobile
dealership or big box retailer.
   (C) The sale or lease of real property at a cost that is less than
fair market value.
   (D) Payment for, forgiveness of, or reduction of fees.
   (4) (A)"Market area" means a geographical area that is described
in independent and recognized commercial trade literature, recognized
and established business or manufacturing policies or practices, or
publications of recognized independent research organizations as
being an area that is large enough to support the location of the
specific automobile dealership or the specific big box retailer that
is relocating.
   (B) With respect to an automobile dealership, a "market area"
shall not extend further than 40 miles, as measured by the most
reasonable route on roads between two points, starting from the
location from which the automobile dealership is relocating and
ending at the location to which the automobile dealership is
relocating.
   (C) With respect to a big box retailer, a "market area" shall not
extend further than 25 miles, as measured by the most reasonable
route on roads between two points, starting from the location from
which the big box retailer is relocating and ending at the location
to which the big box retailer is relocating.
   (5) "Relocating" means the closing of an automobile dealership or
big box retailer in one location and the opening of an automobile
dealership or big box retailer in another location within a 365-day
period when a person or business entity has an ownership interest in
both the automobile dealership or big box retailer that has closed or
will close and the one that is opening.  "Relocating" does not mean
and shall not include the closing of an automobile dealership or big
box retailer because the automobile dealership or big box retailer
has been or will be acquired or has been or will be closed as a
result of the use of eminent domain.
   (g) This section does not apply to local agency assistance in the
construction of public improvements that serve all or a portion of
the jurisdiction of the local agency and that are not required to be
constructed as a condition of approval of the automobile dealership
or big box retailer.  This section also does not prohibit assistance
in the construction of public improvements that are being constructed
for a development other than the automobile dealership or big box
retailer.
   (h) Notwithstanding Section 7550.5, on or before January 1, 2004,
the California Research Bureau shall report to the Legislature and
the Governor regarding the implementation of this section.  The
report shall identify the reports prepared pursuant to subdivision
(b), the contracts offered pursuant to subdivision (c), and the
resolutions approved pursuant to subdivision (e). The report may
include any additional information that the bureau finds relevant.
The report may also include recommendations for legislative action,
including, but not limited to, amending, or extending the repeal date
of, this section.
   (i) This section shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2005, deletes or extends
that date.
  SEC. 3.  Section 33426.7 is added to the Health and Safety Code, to
read:
   33426.7.  (a) Notwithstanding any other provision of this part, a
redevelopment agency shall not provide any form of financial
assistance to an automobile dealership or big box retailer, or a
business entity that sells or leases land to an automobile dealership
or big box retailer, that is relocating from the territorial
jurisdiction of the community to the territorial jurisdiction of
another community but within the same market area, unless the
legislative body of the community to which the relocation will occur
offers the contract to the community from which the relocation is
occurring pursuant to this section.
   (b) If the automobile dealership or big box retailer is relocating
within the same county, including both incorporated and
unincorporated territory, or to an adjacent county or a city within
an adjacent county, the redevelopment agency proposing to offer
financial assistance shall prepare a report that describes the market
area for the automobile dealership or big box retailer that is
relocating.  The report shall include the information required to be
contained in the resolution pursuant to subdivision (e).  The report
shall refer to and cite the independent literature, trade
publications, and recognized and established business policies and
practices describing the market area for the automobile dealership or
big box retailer that is relocating.  The report shall conclude that
the relocation is occurring either within the same market area or
outside the same market area.  The report shall be available to the
public not later than 45 days prior to the date of the public hearing
required by subdivision (d).  In addition, the notice of the public
hearing and the report shall be mailed to the community from which
the relocation is occurring.
   (c) (1) If the report prepared pursuant to subdivision (b)
concludes that the automobile dealership or big box retailer is
relocating within the same market area, at least 45 days prior to the
public hearing required pursuant to subdivision (d), the agency
shall notify the community from which the relocation is occurring of
its intent to give financial assistance and shall send to that
community a contract that has been approved by a two-thirds vote of
the legislative body of the agency and that apportions the sales tax
generated from the automobile dealership or big box retailer after
the relocation between the two communities in the following manner:
   (A) The annual amount of assistance shall be subtracted from the
annual sales tax.
   (B) The difference shall be divided equally between the two
communities for the first 10 fiscal years following the relocation.
However, in no event shall the community from which the relocation is
occurring receive more sales tax than it received from the
automobile dealership or big box retailer in the fiscal year prior to
the relocation.
   (C) After the first 10 fiscal years following the relocation, the
contract shall terminate and the apportionment shall end unless the
contract is extended by both communities.
   (2) The community from which the relocation is occurring shall
have 30 days after receipt of the contract to approve the contract by
enacting a resolution or ordinance approved by a two-thirds vote of
its legislative body.
   (d) Prior to a redevelopment agency giving any financial
assistance to an automobile dealership or big box retailer that is
relocating, the agency shall hold a public hearing.  Notice of the
time and place of the public hearing shall be published in a
newspaper of general circulation in the community at least once per
week for at least three successive weeks, as specified in Section
6063 of the Government Code, prior to the hearing.
   (e) The resolution approving financial assistance shall do all of
the following:
   (1) Identify the present name and, if different, the former name
of the relocating automobile dealership or big box retailer.
   (2) Identify the address, including the city or county, from which
the automobile dealership or big box retailer has moved or will
move.
   (3) Identify the address, including the city or county, to which
the automobile dealership or big box retailer will move.
   (4) Contain one of the following findings:
   (A) That the automobile dealership or big box retailer is not
relocating within the same market area.
   (B) That the automobile dealership or big box retailer is
relocating within the same market area but that a contract containing
the terms specified in subdivision (c) has been approved by the
agency's legislative body, and offered to the community from which
the relocation has occurred, which has approved the agreement,
entered into another agreement acceptable to both communities, or has
not accepted the proposed contract within the 30-day period.
   These findings shall be final and conclusive as to all persons
except for the automobile dealership or big box retailer that is the
subject of the findings and the community from which the relocation
has occurred, all of which may bring an action to challenge these
findings.
   (f) As used in this section, the following terms have the
following meaning:
   (1) "Big box retailer" means a store of greater than 75,000 square
feet of gross buildable area that will generate sales or use tax
pursuant to Part 1.5 (commencing with Section 7200) of Division 2 of
the Revenue and Taxation Code.
   (2) "Community" and "territorial jurisdiction" have the meanings
specified in Sections 33002 and 33120, respectively.
   (3) "Financial assistance" includes, but is not limited to, any of
the following:
   (A) Any appropriation of public funds, including loans, grants, or
subsidies or the payment for or construction of parking
improvements.
   (B) Any tax incentive, including tax exemptions, rebates,
reductions, or moratoria of a tax, including any rebate or payment
based upon the amount of sales tax generated from the automobile
dealership or big box retailer.
   (C) The sale or lease of real property at a cost that is less than
fair market value.
   (D) Payment for, forgiveness of, or reduction of fees.
   (4) (A) "Market area" means a geographical area that is described
in independent and recognized commercial trade literature, recognized
and established business or manufacturing policies or practices, or
publications of recognized independent research organizations as
being an area that is large enough to support the location of the
specific automobile dealership or the specific big box retailer that
is relocating.
   (B) With respect to an automobile dealership, a "market area"
shall  not extend further than 40 miles, as measured by the most
reasonable route on roads between two points, starting from the
location from which the automobile dealership is relocating and
ending at the location to which the automobile dealership is
relocating.
   (C) With respect to a big box retailer, a "market area" shall not
extend further than 25 miles, as measured by the most reasonable
route on roads between two points, starting from the location from
which the big box retailer is relocating and ending at the location
to which the big box retailer is relocating.
   (5) "Relocating" means the closing of an automobile dealership or
big box retailer in one location and the opening of an automobile
dealership or big box retailer in another location within a 365-day
period when a person or business entity has an ownership interest in
both the automobile dealership or big box retailer that has closed or
will close and the one that is opening.  "Relocating" does not mean
and shall not include the closing of an automobile dealership or big
box retailer because the automobile dealership or big box retailer
has been or will be acquired or has been or will be closed as a
result of the use of eminent domain.
   (g) This section does not apply to agency assistance in the
construction of public improvements that serve all or a portion of a
project area and that are not required to be constructed as a
condition of approval of the automobile dealership or big box
retailer.  This section also does not prohibit assistance in the
construction of public improvements that are being constructed for a
development other than the automobile dealership or big box retailer.

   (h) Notwithstanding Section 7550.5 of the Government Code, on or
before January 1, 2004, the California Research Bureau shall report
to the Legislature and the Governor regarding the implementation of
this section. The report shall identify the reports prepared pursuant
to subdivision (b), the contracts offered pursuant to subdivision
(c), and the resolutions approved pursuant to subdivision (e).  The
report may include any additional information that the bureau finds
relevant.  The report may also include recommendations for
legislative action, including, but not limited to, amending, or
extending the repeal date of, this section.
   (i) This section shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2005, deletes or extends
that date.