BILL ANALYSIS
SENATE LOCAL GOVERNMENT COMMITTEE
Senator Dave Cox, Chair
BILL NO: SB 1374 HEARING: 5/5/10
AUTHOR: Kehoe FISCAL: No
VERSION: 2/19/10 CONSULTANT: Detwiler
REDEVELOPMENT PLANS
Background and Existing Law
The "effectiveness" of an older redevelopment project (one
with a plan adopted before January 1, 1994) must terminate
either 40 years after the plan's original adoption or
January 1, 2009, whichever is later. These older projects
continue to receive property tax increment revenues for
another 10 years from the end of the plan's effectiveness
(AB 1290, Isenberg, 1993). Because blight remained in some
older project areas, redevelopment officials convinced
legislators to let them extend these statutory time limits
by 10 more years (SB 211, Torlakson, 2001).
Before a redevelopment agency can amend an older
redevelopment plan to extend the time limits, it must
consult with all affected taxing agencies and the project
area committee. Redevelopment officials must send a
detailed preliminary report to the affected taxing
agencies, the planning commission, and state officials.
Redevelopment officials must send hearing notices to the
affected taxing agencies, state officials, and anyone who
commented on the preliminary plan.
Redevelopment officials must send the agency's legislative
body (the city council or county board of supervisors) a
report which contains:
The information from the preliminary report.
The planning commission's report and
recommendation.
The environmental review document.
A summary of the consultations with the affected
taxing agencies.
A summary of the consultations with the residents,
community organizations, and the project area
committee.
If the affected taxing agencies, project area committee,
residents, or community organizations have expressed
SB 1374 -- 2/19/10 -- Page 2
written objections or concerns about the proposed time
extension, redevelopment officials must respond to those
concerns in the report to the legislative body.
Proposed Law
In the report to the legislative body regarding a proposed
time extension for an older redevelopment project area,
Senate Bill 1374 requires redevelopment officials to
include detailed responses to the concerns expressed by the
affected taxing agencies, project area committee,
residents, or community organizations. SB 1374 requires
the agency and the legislative body to consider these
objections or concerns at their public hearing.
Comment
Closing the loop . Extending the life of older
redevelopment project areas can be controversial,
triggering reactions from residents, property owners, and
other local governments whose property tax increment
revenues are at risk. Current law requires redevelopment
officials to consult with these potential critics and
summarize the results. SB 1374 closes that feedback loop
by requiring detailed responses to any concerns and by
requiring redevelopment officials and local elected
officials to consider those concerns before voting on the
time extension.
Support and Opposition (4/29/10)
Support : California Association of Recreation and Park
Districts, California Rural Legal Assistance Foundation,
California Special Districts Association, California State
Association of Counties, Western Center on Law & Poverty.
Opposition : Unknown.