HomeMy WebLinkAbout10Q SB1641 (Alarcon) - Local Government3- Q
CITY OF PALM DESERT
COMMUNITY SERVICES DEPARTMENT
STAFF REPORT
REQUEST: REQUEST FOR CONSIDERATION OF LEGISLATIVE REVIEW
COMMITTEE ACTION ON SB1641 (ALARCON) AT ITS MEETING
OF MARCH 16, 2004.
DATE: April 8, 2004
CONTENTS: SB1641 LANGUAGE
Recommendation:
By Minute Motion, concur with the action taken by the Legislative Review Committee at its
meeting of March 16, 2004, and direct staff to prepare a letter of opposition for the Mayor's
signature with regard to SB1641 (Alarcon) relative to local government.
Executive Summary:
Passage of SB1641 would state the intent of the Legislator to promote market competition
and economic development to address the concerns of the State's small business with
regard to big box retail stores.
Background:
Current law prohibits a local agency from providing financial assistance to a big box retailer
and other business entities that sells or leases land to a big box retailer relocating from the
territorial jurisdiction of one community or local agency within the same market area.
SB1641 states the intent of the Legislature to promote market competition and economic
development with regard to big box retail stores. SB1641 would prohibit a municipality
from issuing a land use permit or permits to a big box retailer if the governing body of the
municipality determines that the development would have a significantly negative impact on
the local business community. SB1641 would also require a municipality, prior to issuing
land use permits that authorize a big box retailer, to conduct a neutral independent third
party business impact report consisting of specified items concerning the affect of a big box
retailer in that jurisdiction.
Because the City of Palm Desert opposes any legislative activity which impedes its ability
to conduct its day to day business in a manner best suited for our community, the
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In bill text the following has special meaning
underline denotes added text
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2003 CA S 1641
AUTHOR: Alarcon
VERSION: Introduced
VERSION DATE: 02/20/2004
SENATE BILL No. 1641
INTRODUCED BY Senator Alarcon
FEBRUARY 20, 2004
An act to add Sections 53084.5 and 53084.7 to the Government Code, relating to local government.
LEGISLATIVE COUNSEL'S DIGEST
SB 1641, as introduced, Alarcon. Local government.
Existing law prohibits a local agency from providing financial assistance to a big box retailer, as
defined, and other business entity that sells or leases land to a big box retailer that is relocating from the
territorial jurisdiction of one community or local agency, to the territorial jurisdiction of another
community or local agency, but within the same market area unless the receiving community or local
agency offers the other community or local agency a contract apportioning the sales tax generated by the
retailer, as specified.
This bill would state the intent of the Legislature to promote market competition and economic
development and to address the concerns of the state's small businesses as the number of big box retail
stores continues to rise. The bill would also make findings and declarations concerning the
responsibilities of municipalities with respect to big box retailers.
The bill would prohibit a municipality from issuing a land -use permit or permits to a big box retailer
if the governing body of the municipality determines, based on the report specified below, that the
development will have a significantly negative impact on the local business community. The bill would
require a municipality, prior to issuing land -use permits that authorize a big box retailer, to conduct a
neutral independent 3rd-party business impact report consisting of specified items concerning the effect
of a big box retailer in that jurisdiction to be paid for by the permit applicant.
This requirement on a municipality would impose a state -mandated local program.
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The California Constitution requires the state to reimburse local agencies and school districts for
certain costs mandated by the state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes. State -mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 53084.5 is added to the Government Code. to read:
53084.5. (a) It is the intent of the Legislature to promote market competition and economic
development in all communities of the state and to address the concerns of the state's small businesses as
the number of big box retail stores continues to rise. Therefore, the Legislature finds and declares as
follows:
(1) It is the responsibility of municipalities to uphold market principles and promote free and open
competition among local businesses.
(2) Municipalities should not permit big box retailers to operate a business if there will be a negative
effect on the competition and livelihood of local small businesses.
(3) Transformations in the big box retail industry are rapidly altering the grocery business nationwide,
as California may soon learn firsthand. The engine of this change is the retail format known as the
supercenter--a big box retail store that also contains the equivalent of a full-size grocery store, with the
total floor space often three to four times as large as that of a conventional supermarket.
(4) As a result of the possible restructuring of the grocery business in California, the following effects
may be seen: lower prices charged for grocery goods; lower wages and benefits paid to grocery workers;
and a host of complex land use, traffic, and fiscal impacts.
(5) Many decisions about big box retail stores will fall to municipal and county governments, even if
the impacts will be regional as well as local.
(b) "Big box retailer" has the same meaning as the phrase is defined in paragraph (1) of subdivision
(b) of Section 53084.
SEC. 2. Section 53084.7 is added to the Government Code, to read:
53084.7. (a) A municipality may not issue a land -use permit or permits to a big box retailer applicant
if the governing body determines, based on the report required by subdivision (b), that the development
will have a significantly negative impact on the local business community.
(b) Prior to issuing land -use permits that authorize a big box retailer to build and establish a store in a
particular community, a municipality shall conduct a neutral independent third -party business impact
report.
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(1) The business impact report shall be conducted independently from both the municipality and the
retail corporation seeking the necessary land -use permit or permits to operate within a given
municipality's jurisdiction.
(2) The business impact report shall be paid for by the retail corporation seeking the permit or permits
and the findings shall be presented to the elected officials of the municipality issuing the permit or
permits.
(3) The business impact report shall include, but not be limited to, the following:
(A) An assessment of whether the new big box retailer will displace existing local retail market share.
(B) An assessment of whether a new big box retailer will lead to vacancies or changes in local land
use.
(C) Calculated ripple impacts of wages, benefits, and employment changes on local businesses.
(D) An assessment of how much the development will require in public services.
(E) An assessment of the impact on local and regional businesses, that is, local gains at the expense of
other cities.
(F) An assessment of how much the development will affect local tax revenues.
(G) An assessment of the impacts of a big box retailer on an existing local retailer and whether the
introduction of such a store will damage the economy of a locality's downtown core.
(c) Nothing in this section shall preclude a municipality from conducting additional independent
analyses of the business impact report to determine the net effect that a big box retail store will have on
the established local business community.
(d) If a big box retail store obtains the necessary permits to operate, and its store floor space occupies
more than 100,000 square feet, the big box retail store may not devote more than 10,000 square feet of
floor space to groceries.
(e) "Big box retailer" has the same meaning as the phrase is defined in paragraph (1) of subdivision
(b) of Section 53084.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because a local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act,
within the meaning of Section 17556 of the Government Code.
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