BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 774
                                                                Page  1

        CONCURRENCE IN SENATE AMENDMENTS
        AB 774 (Cardoza)
        As Amended June 14, 2000
        Majority vote
         
         ---------------------------------------------------------------------- 
        |ASSEMBLY: |     |(June 4, 1999)  |SENATE: |37-0 |(June 29, 2000)      |
         ---------------------------------------------------------------------- 
                  (vote not relevant)

         ------------------------------------------------------------------------ 
        |COMMITTEE VOTE:  |9-0  |(August 9, 2000)  |RECOMMENDATION:   |concur    |
        |                 |     |                  |                  |          |
         ------------------------------------------------------------------------ 

        Original Committee Reference:   H. & C.D.  

        SUMMARY  :  Establishes the County of Merced as the local base reuse  
        authority for Castle Air Force Base (AFB).

         The Senate amendments  delete the Assembly version of this bill, and  
        instead:

        1)Repeal the special statute that created the Castle Joint Powers  
          Redevelopment Agency (CJPRA).

        2)Designate the County of Merced as the single local reuse  
          authority for the former Castle AFB.

         AS PASSED BY THE ASSEMBLY  , this bill:

        1)Authorized the Pico Rivera Redevelopment Agency (PRRA) to reduce  
          its project base-year valuation by 50% for the purpose of  
          calculating tax increment for three years.

        2)Required PRRA to repay the state over 10 years, beginning  
          September 1, 2003, the total amount of increased aid to schools  
          received from the state and resulting from the reduction in base  
          year value.  The amount to be repaid is to be determined by the  
          Department of Finance in consultation with the governing board.

         FISCAL EFFECT  :  None

         COMMENTS  :  When America won the Cold War, Merced County lost Castle  
        AFB.  To help local officials convert the former bomber base into  








                                                                AB 774
                                                                Page  2

        productive civilian uses, the Legislature created CJPRA with  
        special powers [AB 69 (Cannella), Chapter 943, Statutes of 1993].   
        In 1994, the Legislature named CJPRA as the official "single local  
        reuse entity" to cooperate with state and federal officials.  In  
        1996, the Legislature set up a generic statute to expedite the  
        redevelopment of military bases [AB 2736 (Weggeland), Chapter 221,  
        Statutes of 1996].

        The County of Merced and the Cities of Atwater and Merced began to  
        plan the redevelopment of Castle AFB.  Many of the assumptions  
        underlying the 1993 special statute did not materialize.  Merced  
        City officials withdrew from CJPRA about two years ago and Atwater  
        recently signaled that it too would drop out.  Merced County will  
        probably form its own redevelopment project area either under the  
        standard redevelopment law or the generic statute for military base  
        redevelopment.  Local officials want the Legislature to repeal the  
        1993 special law that did not work.

        CJPRA was an experiment in cooperation that was unsuccessful.   
        Local officials agree that it is 
        time to eliminate CJPRA and try another approach.
         

        Analysis Prepared by  :  Frances Chacon / L. GOV. / (916) 319-3958 




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