Bill Text: CA SB470 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Community development: economic opportunity.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2013-10-08 - Chaptered by Secretary of State. Chapter 659, Statutes of 2013. [SB470 Detail]

Download: California-2013-SB470-Amended.html
BILL NUMBER: SB 470	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 5, 2013
	AMENDED IN SENATE  MAY 8, 2013
	AMENDED IN SENATE  APRIL 9, 2013
	AMENDED IN SENATE  APRIL 1, 2013

INTRODUCED BY   Senator Wright

                        FEBRUARY 21, 2013

   An act to add Part 4 (commencing with Section 52200) to Division 1
of Title 5 of the Government Code, and to amend Sections 33459,
33459.1, 33459.3, and 33459.8 of the Health and Safety Code, relating
to community development.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 470, as amended, Wright. Community development: economic
opportunity.
   Existing law generally regulates the power of cities, counties,
and cities and counties.
   This bill would state the intent of the Legislature to promote
economic development on a local level so that communities can enact
local strategies to increase jobs, create economic opportunity, and
generate tax revenue for all levels of government. The bill would
define economic opportunity to include certain types of agreements,
purposes, and projects, and declare that it is the policy of the
state to protect and promote the sound development of economic
opportunity in cities and counties, and the general welfare of the
inhabitants of those communities through the employment of all
appropriate means.
   The bill would state that the creation of economic opportunity and
the provisions for appropriate continuing land use and construction
policies with respect to property acquired, in whole or in part, for
economic opportunity constitute public uses and purposes for which
public money may be advanced or expended and private property
acquired. The bill would provide that before certain returned city,
county, or city and county property is sold or leased for
development, the sale or lease shall first be approved by the
legislative body, as specified. The bill would authorize a city,
county, or city and county to establish a program under which it
loans funds to owners or tenants for the purpose of rehabilitating
commercial buildings or structures and to assist with the financing
of facilities or capital equipment as part of an agreement that
provides for the development or rehabilitation of property that will
be used for industrial or manufacturing purposes, as specified.
   Existing law, the Polanco Redevelopment Act, authorizes a former
redevelopment agency to take any action that the agency determines is
necessary, consistent with other state and federal laws, to remedy
or remove a release of hazardous substances on, under, or from a
project area, subject to specified conditions. Existing law requires
agencies to request cleanup guidelines from the department or the
California regional water quality control board before taking action
to remedy or remove a release, immunizes an agency that remedies or
removes a hazardous substance release from liability under specified
state laws, and authorizes the recovery of cleanup and remedial costs
from the liable party.
   This bill would revise the definition of agency as used in the
Polanco Redevelopment Act to include a city, county, or city and
county, and authorize a city, county, or city and county to exercise
authority under these provisions to remedy or remove the release of
hazardous substances from property within its jurisdiction that
previously was within the jurisdiction of a former redevelopment
agency, consistent with state and federal laws, as specified. The
bill would also make other conforming changes.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Part 4 (commencing with Section 52200) is added to
Division 1 of Title 5 of the Government Code, to read:

      PART 4.  Economic Opportunity


      CHAPTER 1.  GENERAL PROVISIONS


   52200.  It is the intent of the Legislature to do all of the
following:
   (a) Promote economic development on a local level so that
communities can enact local strategies to increase jobs, create
economic opportunity, and generate tax revenue for all levels of
government.
   (b) Give local governments tools, at no cost to the state, that
allow local governments to use their funds in a manner that promotes
economic opportunity.
   (c) With the loss of redevelopment funds, cities, counties, and
cities and counties need to continue certain powers afforded to
redevelopment agencies that were critical to economic development,
yet do not have an impact on schools and the state budget.
   52200.2.  As used in this part "economic opportunity" means any of
the following:
   (a) Development agreements or other agreements that create,
retain, or expand new jobs, in which the legislative body finds that
the agreement will create or retain at least one full-time
equivalent, permanent job for every thirty-five thousand dollars
($35,000) of city, county, or city and county investment in the
project after full capacity and implementation.
   (b) Development agreements that increase property tax revenues to
all property tax collecting entities, in which the legislative body
finds that the agreement will result in an increase of at least 15
percent of total property tax resulting from the project at full
implementation when compared to the year prior to the property being
acquired by the government entity.
   (c) Creation of affordable housing, if a demonstrated affordable
housing need exists in the community, as defined in the approved
housing element or regional housing needs assessment.
   (d) Projects that meet the goals set forth in Chapter 728 of the
Statutes of 2008 and have been included in an adopted sustainable
communities strategy or alternative planning strategy or a project
that specifically implements the goals of those adopted plans.
   (e) Transit priority projects, as defined in Section 21155 of the
Public Resources Code.
   52200.4.  It is declared to be the policy of the state:
   (a) To protect and promote the sound development of economic
opportunity in cities and counties and the general welfare of the
inhabitants of those communities through the employment of all
appropriate means.
   (b) That whenever the creation of economic opportunity in cities
and counties cannot be accomplished by private enterprise alone,
without public participation and assistance in the acquisition of
land, in planning and in the financing of land assembly, in the work
of clearance, and in the making of improvements necessary therefor,
it is in the public interest to advance or expend public funds for
these purposes, and to provide a means by which economic opportunity
can be created.
   (c) That the creation of economic opportunity and the provisions
for appropriate continuing land use and construction policies with
respect to property acquired, in whole or in part, for economic
opportunity constitute public uses and purposes for which public
money may be advanced or expended and private property acquired, and
are governmental functions of state concern in the interest of
health, safety, and welfare of the people of the state and cities and
counties.
   (d) That the necessity in the public interest for the provisions
of this part is declared to be a matter of legislative determination.

   52200.6.  This chapter shall not be interpreted to authorize the
use of eminent domain for economic development purposes.
      CHAPTER 2.  SALES AND LEASES


   52201.  (a) (1) Before any city, county, or city and county
property that is returned to the city, county, or city and county per
the long-range property management plan, pursuant to Section 34191.5
of the Health and Safety Code, is sold or leased for economic
development purposes, the sale or lease shall first be approved by
the legislative body by resolution after public hearing. Notice of
the time and place of the hearing shall be published in a newspaper
of general circulation in the community at least once per week for at
least two successive weeks, as specified in Section 6066, prior to
the hearing.
   (2) The city, county, or city and county shall make available, for
public inspection and copying at a cost not to exceed the cost of
duplication, a report no later than the time of publication of the
first notice of the hearing mandated by this section. This report
shall contain both of the following:
   (A) A copy of the proposed sale or lease.
   (B) A summary that describes and specifies all of the following:
   (i) The cost of the agreement to the city, county, or city and
county, including land acquisition costs, clearance costs, relocation
costs, the costs of any improvements to be provided by the city,
county, or city and county, plus the expected interest on any loans
or bonds to finance the agreements.
   (ii) The estimated value of the interest to be conveyed or leased,
determined at the highest and best uses permitted under the general
plan or zoning.
   (iii) The estimated value of the interest to be conveyed or
leased, determined at the use and with the conditions, covenants, and
development costs required by the sale or lease. The purchase price
or present value of the lease payments which the lessor will be
required to make during the term of the lease. If the sale price or
total rental amount is less than the fair market value of the
interest to be conveyed or leased, determined at the highest and best
use, then the city, county, or city and county shall provide as part
of the summary an explanation of the reasons for the difference.
   (iv) An explanation of why the sale or lease of the property will
assist in the creation of economic opportunity, with reference to all
supporting facts and materials relied upon in making this
explanation. 
   (v) The report shall be made available to the public no later than
the time of publication of the first notice of the hearing mandated
by this section. 
   (b) The resolution approving the lease or sale shall be adopted by
a majority vote unless the legislative body has provided by
ordinance for a two-thirds vote for that purpose and shall contain a
finding that the sale or lease of the property will assist in the
creation of economic opportunity. The resolution shall also contain
one of the following findings:
   (1) The consideration is not less than the fair market value at
its highest and best use.
   (2) The consideration is not less than the fair reuse value at the
use and with the covenants and conditions and development costs
authorized by the sale or lease.
   (c) The provisions of this section are an alternative to any other
authority granted by law to cities to dispose of city-owned
property.
   52202.  A city, county, or city and county may establish a program
under which it loans funds to owners or tenants for the purpose of
rehabilitating commercial buildings or structures.
   52203.  (a) As part of an agreement that provides for the
development or rehabilitation of property that will be used for
industrial or manufacturing purposes, a city, county, or city and
county may assist with the financing of facilities or capital
equipment, including, but not necessarily limited to, pollution
control devices.
   (b) Prior to entering into an agreement for a development that
will be assisted pursuant to this section, a city, county, or city
and county 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. 2.  Section 33459 of the Health and Safety Code is amended to
read:
   33459.  For purposes of this article, the following terms shall
have the following meanings:
   (a) "Agency" includes a former redevelopment agency as defined in
Section 33003 and a city, county, or city and county.
   (b) "Department" means the Department of Toxic Substances Control.

   (c) "Director" means the Director of Toxic Substances Control.
   (d) "Hazardous substance" means any hazardous substance as defined
in subdivision (h) of Section 25281, and any reference to hazardous
substance in the definitions referenced in this section shall be
deemed to refer to hazardous substance, as defined in this
subdivision.
   (e) "Local agency" means a single local agency that is one of the
following:
   (1) A local agency authorized pursuant to Section 25283 to
implement Chapter 6.7 (commencing with Section 25280) of, and Chapter
6.75 (commencing with Section 25299.10) of, Division 20.
   (2) A local officer who is authorized pursuant to Section 101087
to supervise a remedial action.
   (f) "Qualified independent contractor" means an independent
contractor who is any of the following:
   (1) An engineering geologist who is certified pursuant to Section
7842 of the Business and Professions Code.
   (2) A geologist who is registered pursuant to Section 7850 of the
Business and Professions Code.
   (3) A civil engineer who is registered pursuant to Section 6762 of
the Business and Professions Code.
   (g) "Release" means any release, as defined in Section 25320.
   (h) "Remedy" or "remove" means any action to assess, evaluate,
investigate, monitor, remove, correct, clean up, or abate a release
of a hazardous substance or to develop plans for those actions.
"Remedy" includes any action set forth in Section 25322 and "remove"
includes any action set forth in Section 25323.
   (i) "Responsible party" means any person described in subdivision
(a) of Section 25323.5 of this code or subdivision (a) of Section
13304 of the Water Code.
  SEC. 3.  Section 33459.1 of the Health and Safety Code is amended
to read:
   33459.1.  (a) (1) An agency may take any actions that the agency
determines are necessary and that are consistent with other state and
federal laws to remedy or remove a release of hazardous substances
on, under, or from property within a project area or property within
its jurisdiction that previously was within the jurisdiction of a
former redevelopment agency, whether the agency owns that property or
not, subject to the conditions specified in subdivision (b). Unless
an administering agency has been designated under Section 25262, the
agency shall request cleanup guidelines from the department or the
California regional water quality control board before taking action
to remedy or remove a release. The department or the California
regional water quality control board shall respond to the agency's
request to provide cleanup guidelines within a reasonable period of
time. The agency shall thereafter submit for approval a cleanup or
remedial action plan to the department or the California regional
water quality control board before taking action to remedy or remove
a release. The department or the California regional water quality
control board shall respond to the agency's request for approval of a
cleanup or remedial action plan within a reasonable period of time.
   (2) The agency shall provide the department and local health and
building departments, the California regional water quality control
board, with notification of any cleanup activity pursuant to this
section at least 30 days before the commencement of the activity. If
an action taken by an agency or a responsible party to remedy or
remove a release of a hazardous substance does not meet, or is not
consistent with, a remedial action plan or cleanup plan approved by
the department or the California regional water quality control
board, the department or the California regional water quality
control board that approved the cleanup or remedial action plan may
require the agency to take, or cause the taking of, additional action
to remedy or remove the release, as provided by applicable law. If
an administering agency for the site has been designated under
Section 25262, any requirement for additional action may be imposed
only as provided in Sections 25263 and 25265. If methane or landfill
gas is present, the agency shall obtain written approval from the
California Integrated Waste Management Board prior to taking that
action.
   (b) Except as provided in subdivision (c), an agency may take the
actions specified in subdivision (a) only under one of the following
conditions:
   (1) There is no responsible party for the release identified by
the agency.
   (2) A party determined by the agency to be a responsible party for
the release has been notified by the agency or has received adequate
notice from the department, a California regional water quality
control board, the Environmental Protection Agency, or other
governmental agency with relevant authority and has been given 60
days to respond and to propose a remedial action plan and schedule,
and the responsible party has not agreed within an additional 60 days
to implement a plan and schedule to remedy or remove the release
that is acceptable to the agency and that has been found by the
agency to be consistent, to the maximum extent possible, with the
priorities, guidelines, criteria, and regulations contained in the
National Contingency Plan and published pursuant to Section 9605 of
Title 42 of the United States Code for similar releases, situations,
or events.
   (3) The party determined by the agency to be the responsible party
for the hazardous substance release entered into an agreement with
the agency to prepare a remedial action plan for approval by the
department, the California regional water quality control board, or
the appropriate local agency and to implement the remedial action
plan in accordance with an agreed schedule, but failed to prepare the
remedial action plan, failed to implement the remedial action plan
in accordance with the agreed schedule, or otherwise failed to carry
out the remedial action in an appropriate and timely manner. Any
action taken by the agency pursuant to this paragraph shall be
consistent with any agreement between the agency and the responsible
party and with the requirements of the state or local agency that
approved or will approve the remedial action plan and is overseeing
or will oversee the preparation and implementation of the remedial
action plan.
   (c) Subdivision (b) does not apply to either of the following
agencies:
   (1) An agency taking actions to investigate or conduct feasibility
studies concerning a release.
   (2) An agency taking the actions specified in subdivision (a) if
the agency determines that conditions require immediate action.
   (d) An agency may designate a local agency in lieu of the
department or the California regional water quality control board to
review and approve a cleanup or remedial action plan and to oversee
the remediation or removal of hazardous substances from a specific
hazardous substance release site in accordance with the following
conditions:
   (1) The local agency may be so designated if it is designated as
the administering agency under Section 25262. In that event, the
local agency, as the administering agency, shall conduct the
oversight of the remedial action in accordance with Chapter 6.65
(commencing with Section 25260) and all provisions of that chapter
shall apply to the remedial action.
   (2) The local agency may be so designated if cleanup guidelines
were requested from a California regional water quality control
board, and the site is an underground storage tank site subject to
Chapter 6.7 (commencing with Section 25280) of Division 20, the local
agency has been certified as a certified unified program agency
pursuant to Section 25404.1, the State Water Resources Control Board
has entered into an agreement with the local agency for oversight of
those sites pursuant to Section 25297.1, the local agency determines
that the site is within the guidelines and protocols established in,
and pursuant to, that agreement, and the local agency consents to the
designation.
   (3) A local agency may not consent to the designation by an agency
unless the local agency determines that it has adequate staff
resources and the requisite technical expertise and capabilities
available to adequately supervise the remedial action.
   (4) (A) Where a local agency has been designated pursuant to
paragraph (2), the department or a California regional water quality
control board may require that a local agency withdraw from the
designation, after providing the agency with adequate notice, if both
of the following conditions are met:
   (i) The department or a California regional water quality control
board determines that an agency's designation of a local agency was
not consistent with paragraph (2), or makes one of the findings
specified in subdivision (d) of Section 101480.
   (ii) The department or a California regional water quality control
board determines that it has adequate staff resources and
capabilities available to adequately supervise the remedial action,
and assumes that responsibility.
   (B) Nothing in this paragraph prevents a California regional water
quality control board from taking any action pursuant to Division 7
(commencing with Section 13000) of the Water Code.
   (5) Where a local agency has been designated pursuant to paragraph
(2), the local agency may, after providing the agency with adequate
notice, withdraw from its designation after making one of the
findings specified in subdivision (d) of Section 101480.
   (e) To facilitate redevelopment planning, the agency may require
the owner or operator of any site within a project area or its
jurisdiction to provide the agency with all existing environmental
information pertaining to the site, including the results of any
Phase I or subsequent environmental assessment, as defined in Section
25200.14, any assessment conducted pursuant to an order from, or
agreement with, any federal, state or local agency, and any other
environmental assessment information, except that which is determined
to be privileged. The person requested to furnish the information
shall be required only to furnish that information as may be within
their possession or control, including actual knowledge of
information within the possession or control of any other party. If
environmental assessment information is not available, the agency may
require the owner of the property to conduct an assessment in
accordance with standard real estate practices for conducting phase I
or phase II environmental assessments.
  SEC. 4.  Section 33459.3 of the Health and Safety Code is amended
to read:
   33459.3.  (a) Notwithstanding any other provision of law, except
as provided in Section 33459.7, an agency that undertakes and
completes an action, or causes another person to undertake and
complete an action pursuant to Section 33459.1, as specified in
subdivision (c), to remedy or remove a hazardous substance release
on, under, or from property within a redevelopment project, in
accordance with a cleanup or remedial action plan prepared by a
qualified independent contractor and approved by the department or a
California regional water quality control board or the local agency,
as appropriate, pursuant to subdivision (b), is not liable, with
respect to that release only, under Division 7 (commencing with
Section 13000) of the Water Code or Chapter 6.5 (commencing with
Section 25100), Chapter 6.7 (commencing with Section 25280), Chapter
6.75 (commencing with Section 25299.10), or Chapter 6.8 (commencing
with Section 25300), of Division 20 of this code, or any other state
or local law providing liability for remedial or removal actions for
releases of hazardous substances. If the remedial action was also
performed pursuant to Chapter 6.65 (commencing with Section 25260) of
Division 20, and a certificate of completion is issued pursuant to
subdivision (b) of Section 25264, the immunity from agency action
provided by the certificate of completion, as specified in
subdivision (c) of Section 25264, shall apply to the agency, in
addition to the immunity conferred by this section. In the case of a
remedial action performed pursuant to Chapter 6.65 (commencing with
Section 25260) of Division 20, and for which the administering agency
is a local agency, the limitations on the certificate of completion
set forth in paragraphs (1) to (6), inclusive, of subdivision (c) of
Section 25264 are limits on any immunity provided for by this section
and subdivision (c) of Section 25264.
   (b) Upon approval of any cleanup or remedial action plan, pursuant
to applicable statutes and regulations, the director or the
California regional water quality control board or the local agency,
as appropriate, shall acknowledge, in writing, within 60 days of the
date of approval, that upon proper completion of the remedial or
removal action in accordance with the plan, the immunity provided by
this section shall apply to the agency.
   (c) Notwithstanding any provision of law or policy providing for
certification by a person conducting a remedial or removal action
that the action has been properly completed, a determination that a
remedial or removal action has been properly completed pursuant to
this section shall be made only upon the affirmative approval of the
director or the California regional water quality control board or
the local agency, as appropriate. The department, California regional
water quality control board, or local agency, as appropriate, shall,
within 60 days of the date it finds that a remedial action has been
completed, notify the agency in writing that the immunity provided by
this section is in effect.
   (d) The approval of a cleanup or remedial action plan under this
section by a local agency shall also be subject to the concurrent
approval of the department or a California regional water quality
control board when the agency receiving the approval was formed by
the same entity of which the local agency is a part.
   (e) Upon proper completion of a remedial or removal action, as
specified in subdivision (c), the immunity from agency action
provided by the certificate of completion provided pursuant to
subdivision (c) of Section 25264 and the immunity provided by this
section extends to all of the following, but only for the release or
releases specifically identified in the approved cleanup or remedial
action plan and not for any subsequent release or any release not
specifically identified in the approved cleanup or remedial action
plan:
   (1) Any employee or agent of the agency, including an
instrumentality of the agency authorized to exercise some, or all, of
the powers of an agency within, or for the benefit of, a
redevelopment project or its jurisdiction and any employee or agent
of the instrumentality.
   (2) Any person who enters into an agreement with an agency for the
redevelopment of property, if the agreement requires the person to
acquire property affected by a hazardous substance release or to
remove or remedy a hazardous substance release with respect to that
property.
   (3) Any person who acquires the property after a person has
entered into an agreement with an agency for redevelopment of the
property as described in paragraph (2).
   (4) Any person who provided financing to a person specified in
paragraph (2) or (3).
   (f) Notwithstanding any other provision of law, the immunity
provided by this section does not extend to any of the following:
   (1) Any person who was a responsible party for the release before
entering into an agreement, acquiring property, or providing
financing, as specified in subdivision (e).
   (2) Any person specified in subdivision (a) or (e) for any
subsequent release of a hazardous substance or any release of a
hazardous substance not specifically identified in the approved
cleanup or remedial action plan.
   (3) Any contractor who prepares the cleanup or remedial action
plan, or conducts the removal or remedial action.
   (4) Any person who obtains an approval, as specified in
subdivision (b), or a determination, as specified in subdivision (c),
by fraud, negligent or intentional nondisclosure, or
misrepresentation, and any person who knows before the approval or
determination is obtained or before the person enters into an
agreement, acquires the property or provides financing, as specified
in subdivision (e), that the approval or determination was obtained
by these means.
   (g) The immunity provided by this section is in addition to any
other immunity of an agency provided by law.
   (h) This section does not impair any cause of action by an agency
or any other party against the person, firm, or entity responsible
for the hazardous substance release which is the subject of the
removal or remedial action taken by the agency or other person immune
from liability pursuant to this section.
   (i) This section does not apply to, or limit, alter, or restrict,
any action for personal injury, property damage, or wrongful death.
   (j) This section does not limit liability of a person described in
paragraph (3) or (4) of subdivision (e) for damages under the
Comprehensive Environmental Response, Compensation, and Liability Act
of 1980, as amended (42 U.S.C. Sec. 9601 et seq.).
   (k) This section does not establish, limit, or affect the
liability of an agency for any release of a hazardous substance that
is not investigated or remediated pursuant to this section or Chapter
6.65 (commencing with Section 25260) of Division 20.
   (  l  ) The immunity provided for by this section is only
conferred if both of the following apply:
   (1) The action is in accordance with a cleanup or remedial action
plan prepared by a qualified independent contractor and approved by
the department or a California regional water quality control board
or the local agency, as appropriate, pursuant to subdivision (b).
   (2) The remedial or removal action is undertaken and properly
completed, as specified in subdivision (c).
   (m) The agency shall reimburse the department, the California
regional water quality control board, and the local agency for costs
incurred in reviewing or approving cleanup or remedial action plans
pursuant to this section.
  SEC. 5.  Section 33459.8 of the Health and Safety Code is amended
to read:
   33459.8.  If an agency undertakes any action to remedy or remove a
release of hazardous substances on, under, or from property within a
project area or property within its jurisdiction that previously was
within the jurisdiction of a former redevelopment agency, the agency
shall, if it is required to have a redevelopment plan, amend its
redevelopment plan and follow the same procedure,
                        as specified, and the legislative body is
subject to the same restrictions as provided for in Article 4
(commencing with Section 33330), for the adoption of a redevelopment
plan, if the agency determines that as a result of the remedial or
removal action, it will also be taking any of the following actions:
   (a) Proposing to add new territory to a project area.
   (b) Increasing either the limitation on the amount of funds to be
allocated to the agency or the time limit on the establishing of
loans, advances, and indebtedness established pursuant to
subdivisions (1) and (2) of Section 33333.2.
   (c) Lengthening the period during which the redevelopment plan is
effective.
   (d) Merging project areas.
   (e) Adding significant additional capital improvement projects.
            
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