BILL NUMBER: AB 2531 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 20, 2010
INTRODUCED BY Assembly Member Fuentes
FEBRUARY 19, 2010
An act to amend Sections 33020, 33021, 33071, 33440,
33444.5, and 33444.6 of, to add Section 33131.5
Secti ons 33131.5 and 33333.9 to, and to add
Article 10.5 (commencing with Section 33427) to Chapter 4 of Part 1
of Division 24 of, the Health and Safety Code, relating to
redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
AB 2531, as amended, Fuentes. Redevelopment: economic development.
(1) The Community Redevelopment Law authorizes the establishment
of redevelopment agencies in communities in order to address the
effects of blight, as defined, in those communities and requires
those agencies to prepare, or cause to be prepared, and approve a
redevelopment plan for each project area. Existing law defines the
term "redevelopment" for these purposes and specifies the scope of
activities that the term includes. Existing law also makes
specified legislative findings and declarations regarding the
fundamental purposes of redevelopment.
This bill would include in the definition of the term
"redevelopment" those activities that support the provision of
employment opportunities and expand the scope of activities included
in that term . This bill would also make additional
legislative findings and declarations regarding the fundamental
purposes of redevelopment . The bill would additionally
authorize the Redevelopment Agency of the City of Los Angeles, at the
request of its legislative body, to prepare applications for, and
execute, economic development programs, to accept public or private
assistance, and to expend those funds for any economic development
activities inside or outside a project area within the territorial
jurisdiction of the agency. The bill would also authorize a
redevelopment agency with a project area located within the
Cities of Healdsburg, Long Beach, Los Angeles, Oakland, or Signal
Hill to provide assistance for establishment and
maintenance of a small business incubator. This bill would also
prohibit an agency from amending a redevelopment plan to
increase or extend certain required limitations for the purpose of
implementing these provisions.
(2) Existing law authorizes an agency to construct foundations,
platforms, and other structural forms necessary for the provision or
utilization of air rights sites for buildings to be used for
residential, commercial, industrial, or other uses contemplated by
the redevelopment plan. An agency is also authorized to establish a
program under which it loans funds to owners or tenants for the
purpose of rehabilitating commercial buildings or structures within
the project area.
This bill would additionally authorize an agency to
construct buildings for industrial or manufacturing purposes and
small business incubators. The This
bill would expand the agency's programmatic authority by authorizing
it to provide loans, financial guarantees, or other financial
assistance to owners or tenants in a redevelopment project area for
retaining or expanding employment in the project area, increasing
energy efficiency of buildings in the project area, or for any other
redevelopment purpose, as specified.
This bill would make legislative findings and declarations as to
the necessity for a special statute.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 33020 of the Health and Safety Code is amended
to read:
33020. "Redevelopment" means the planning, development,
replanning, redesign, clearance, reconstruction, or rehabilitation,
or any combination of these, of all or part of a survey area, and the
provision of those residential, commercial, industrial, public, or
other structures or spaces as may be appropriate or necessary in the
interest of the general welfare, including recreational and other
facilities incidental or appurtenant to them, activities that support
the provision of employment opportunities, and payments to school
and community college districts in the fiscal years specified in
Sections 33681, 33681.5, 33681.7, 33681.9, and 33681.12.
SEC. 2. Section 33021 of the Health and Safety Code is amended to
read:
33021. Redevelopment includes:
(a) The alteration, improvement, modernization, reconstruction,
or rehabilitation, or any combination of these, of existing
structures in a project area.
(b) Provision for open-space types of use, such as streets and
other public grounds and space around buildings, and public or
private buildings, structures and improvements, and improvements of
public or private recreation areas and other public grounds.
(c) The replanning or redesign or original development of
undeveloped areas as to which either of the following conditions
exist.
(1) The areas are stagnant or improperly utilized because of
defective or inadequate street layout, faulty lot layout in relation
to size, shape, accessibility, or usefulness, or for other causes.
(2) The areas require replanning and land assembly for
reclamation or development in the interest of the general welfare
because of widely scattered ownership, tax delinquency, or other
reasons.
(d) The construction, retrofit, lease, or use of
facilities within
(d) The provision of direct assistance
to businesses in connection with new or existing facilities within
redevelopment project areas for industrial or manufacturing
uses , including loans, loan guarantees, and other financial
assistance, and the provision or replacement of machinery and
equipment in those facilities, provided the construction,
retrofit, lease or use, or the products manufactured are
assistance is intended to retain or expand the number of
persons employed in industrial or manufacturing jobs and achieve any
of the following:
(1) Reduce emissions of greenhouse gases.
(2) Increase the use of clean, renewable, or alternative energy.
(3) Increase energy efficiency.
(4) Increase the use of recycled and locally sourced materials.
(5) Increase efficiency in water, wastewater and stormwater
systems.
(6) Increase the efficiency of construction methods.
(7) Reduce demolition and construction-induced pollution and waste
material generation.
(8) Improve indoor air quality.
(9) Reduce building operation costs through increased operation
and maintenance efficiency.
(10) Reduce public infrastructure costs related to development.
(e) Job training, job placement, apprenticeship and
preapprenticeship programs, and services relating to construction or
to operations of businesses in project areas.
(f) Providing loans, loan guarantees, and other financial
assistance to property owners and businesses in a project area for
the construction, retrofit, lease or use of a facility described in
subdivision (d).
(g) Paying the cost of any of the services described in
subdivision (e).
(h) Providing loans, loan guarantees, and other financial
assistance to property owners and businesses in or relocating to a
project area to retain or expand employment in the project area.
(i) Assisting public agencies or private nonprofit
corporations to establish and maintain a small business incubator in
a project area. For purposes of this subdivision, "small business"
shall have the same meaning as defined in Section 11342.610 of the
Government Code.
(j) Marketing and promoting business and redevelopment
opportunities and cultural activities in project areas.
SEC. 3. Section 33071 of the Health and
Safety Code is amended to read:
33071. The Legislature further finds and declares that a
fundamental purpose of redevelopment is to expand the supply of low-
and moderate-income housing, to expand employment opportunities for
jobless, underemployed, and low-income persons, to attract and
retain businesses in order to enhance employment opportunities,
and to provide an environment for the social, economic, and
psychological growth and well-being of all citizens.
SEC. 3. SEC. 4. Section 33131.5 is
added to the Health and Safety Code, to read:
33131.5. In addition to authority otherwise provided in this
part, the Redevelopment Agency of the City of Los Angeles, at the
request of its legislative body, may do both of the following:
(a) Prepare applications for various state and federal grant
programs relating to economic development, plan and carry out those
programs and expend grant funds inside or outside any redevelopment
project area within the territorial jurisdiction of the agency, and
comply with any conditions of the program.
(b) Accept any other assistance from the state or federal
government or any public or private source, spend those funds for any
economic development activities inside or outside any redevelopment
project area within the territorial jurisdiction of the agency, and
comply with any conditions of that assistance.
SEC. 5. Section 33333.9 is added to the
Health and Safety Code , to read:
33333.9. An agency shall not amend a redevelopment plan to
increase or extend the limits imposed pursuant to Section 33333.2,
33333.4, or 33333.6 for the purpose of implementing the authority
granted by the act adding this section.
SEC. 4. SEC. 6. Article 10.5
(commencing with Section 33427) is added to Chapter 4 of Part 1 of
Division 24 of the Health and Safety Code, to read:
Article 10.5. Small Business Development
33427. (a) In addition to any other authority granted under this
part, an agency may, within a project area, for the purposes of
redevelopment, assist public agencies or private nonprofit
corporations to establish, construct, and maintain a small business
incubator.
(b) In addition to any other authority granted under this part, an
agency may, for the purposes of redevelopment, provide loan
guarantees for small businesses located within a project area.
(c) For the purposes of this section, "small business" shall have
the same meaning as defined in Section 11342.610 of the Government
Code.
(d) This section shall apply only to a project area that is
located within the City of Healdsburg, the City of Long Beach, the
City of Los Angeles, the City of Oakland, or the City of Signal Hill.
Any agency operating within one of those cities which uses the
authority granted by this section shall separately identify those
actions in the annual report to its legislative body prepared
pursuant to Section 33080.1.
(e) No agency may amend a redevelopment plan to increase the tax
increment revenue limit pursuant to Section 33333.2 or 33333.4 for
the purpose of implementing this section.
SEC. 5. SEC. 7. Section 33440 of the
Health and Safety Code is amended to read:
33440. Except as provided in Article 9 (commencing with Section
33410), Article 10.5 (commencing with Section 33427), or Section
33444.6, this part does not authorize an agency to construct
any of the buildings for residential, commercial, industrial, or
other use contemplated by the redevelopment plan, except that, in
addition to its powers under Section 33445, an agency may construct
foundations, platforms, and other like structural forms necessary for
the provision or utilization of air rights sites for buildings to be
used for residential, commercial industrial, or other uses
contemplated by the redevelopment plan, and may construct
buildings for industrial or manufacturing purposes meeting the
criteria set forth in subdivision (d) of Section 33021 and small
business incubators. plan.
SEC. 6. SEC. 8. Section 33444.5 of
the Health and Safety Code is amended to read:
33444.5. An agency may establish a program under which it
provides loans, financial guarantees, or other financial assistance
to owners or tenants in a redevelopment project area, for any of the
following purposes:
(a) Rehabilitating commercial buildings or structures within the
project area.
(b) Retaining or expanding employment in the project area.
(c) Increasing energy efficiency of buildings in the project area.
(d) Any other redevelopment purpose specified in Section 33021.
SEC. 7. SEC. 9. Section 33444.6 of
the Health and Safety Code is amended to read:
33444.6. (a) Within a project area and as part of an agreement
that provides for the development, rehabilitation, or use of property
that will be used for industrial or manufacturing purposes, an
agency may assist with the financing of facilities or capital
equipment, including, but not necessarily limited to, pollution
control devices.
(b) In addition to any other authority granted pursuant to this
part, an agency may, for the purposes of redevelopment, construct
buildings for industrial or manufacturing purposes that meet the
criteria in subdivision (e) of Section 33021.
(b)
(c) Prior to entering into an agreement for a
development that will be assisted pursuant to this section, the
agency shall find, after a public hearing, that the assistance is
necessary for the economic feasibility of the development and that
the assistance cannot be obtained on economically feasible terms in
the private market.
SEC. 10. The Legislature finds and declares that
the purpose of this act is to clarify existing law and to provide
agencies with additional authority to assist businesses in order to
encourage the retention of existing employment opportunities and the
attraction of new employment opportunities. Nothing in this act shall
be construed as limiting or restricting the authority that an agency
possessed prior to the effective date of this act.
SEC. 8. SEC. 11. The Legislature
finds and declares , with respect to Section 4 of this act,
that a special law is necessary and that a general law cannot
be made applicable within the meaning of Section 16 of Article IV of
the California Constitution because of the unique circumstances,
needs, and challenges of the City of Healdsburg, the City of
Long Beach, the City of Los Angeles, the City of Oakland, and the
City of Signal Hill. Los Angeles.