HomeMy WebLinkAboutLegislative Review CMTE AB 2197 (DeVore)REQUEST:
SUBMITTED BY:
DATE:
CONTENTS:
CONSIDERATION
ACTION ON AB
APRIL 5, 2006
CITY OF PALM DESERT
Community Services Division
Staff Report
OF LEGISLATIVE REVIEW COMMITTEE
2197 (DeVORE) AT ITS MEETING OF
Patricia Scully, CFEE, Senior Management Analyst
April 27, 2006
AB 2197 Language
RECOMMENDATION:
By Minute Motion, concur with the action taken by the Legislative Review Committee at its
meeting of April 5, 2006, and direct staff to prepare a letter of opposition for the Mayor's
signature with regard to AB 2197 (DeVore) relative to tax increment financing.
EXECUTIVE SUMMARY:
Passage of AB 2197 would prohibit local agencies from adopting a redevelopment plan
that provides for the use of tax increment financing.
BACKGROUND:
Existing law authorizes redevelopment agencies to pay the principal of, and interest on,
indebtedness incurred to finance or refinance redevelopment from a portion of property tax
revenues diverted from other taxing agencies. Passage of AB 2197 would prohibit
legislative bodies from adopting a redevelopment plan that provides for the use of tax
increment financing, amending a redevelopment plan in a manner that would decrease the
amount of property tax revenues received by a county, or merging redevelopment project
areas unless a county Board of Supervisors reviews and approves of the plan amendment
or merger.
CITY COUNCIL STAFF REPORT
RE: AB 2197 (DeVORE)
APRIL 27, 2006
The City of Palm Desert opposes any legislation which removes local control regarding the
manner in which it conducts its day -today business and turns the authority over to another
goveming body; i.e., the Riverside County Board of Supervisors.
Therefore, the Legislative Review Committee recommends that the City Council oppose
AB 2197 and direct staff to prepare a letter stating that position to appropriate legislators
for the Mayor's signature.
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CARLOS L. ORTE A
CITY MANAGER
CALIFORNIA LEGISLATURE-2005-06 REGULAR SESSION
ASSEMBLY BILL
No. 2197
Introduced by Assembly Member DeVore
(Coauthors: Assembly Members Haynes, Maze, Strickland, and
Wyland)
February 22, 2006
An act to add Sections 33363.6, 33455.5, and 33486.5 to the Health
and Safety Code, relating to redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
AB 2197, as introduced, DeVore. Redevelopment: plans:
tax -increment financing.
(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
requires a redevelopment plan to describe generally the proposed
method of financing the redevelopment of the project area.
Existing law authorizes redevelopment agencies to pay the principal
of, and interest on, indebtedness incurred to finance or refinance
redevelopment, from a portion of property tax revenues diverted from
other taxing agencies. The portion of taxes diverted is the amount
attributable to increases in assessed valuation of property in the
redevelopment project area subsequent to the establishment of the
project area. This method of financing is commonly known as
"tax -increment" financing and is specifically authorized by Section 16
of Article XVI of the California Constitution.
Existing law authorizes the legislative body of a redevelopment
agency by ordinance to amend a redevelopment plan and to merge
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AB 2197
project areas under the jurisdiction of a redevelopment agency without
regard to the contiguity of the areas.
This bill would prohibit a legislative body from adopting a
redevelopment plan that provides for the use of tax -increment
financing, amending a redevelopment plan in a manner that would
decrease the amount of property tax revenues received by a county, or
merging redevelopment project areas unless the county board of
supervisors reviews and approves of the plan, amendment, or merger.
The bill would require the county board of supervisors to hold a public
meeting for the purposes of reviewing and approving the action within
60 days of receiving a request and to deliver its decision regarding
approval within 90 days of receiving that request. The bill would
require all affected school districts, special districts, and the state
Treasurer to be invited to the public meeting and to present written or
verbal testimony. The bill would allow a redevelopment agency to
appeal a negative decision and, if appeal does not result in approval of
the plan, to renew its request for approval after a year has elapsed.
By requiring county boards of supervisors to review and approve
these actions of redevelopment agencies, the bill would impose a
state -mandated local program.
(2) 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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State -mandated local program: yes.
The people of the State of California do enact as follows:
1 SECTION 1. Section 33363.6 is added to the Health and
2 Safety Code, to read:
3 33363.6. (a) A legislative body shall not adopt a
4 redevelopment plan that provides for the division of property tax
5 revenues pursuant to Section 33670 unless the county board of
6 supervisors reviews and approves of the plan.
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— 3 — AB 2197
1 (b) The county board of supervisors shall hold a public
2 meeting for the purposes of reviewing and approving a
3 redevelopment plan pursuant to this section within 60 days of
4 receiving a request for review and approval and shall deliver its
5 decision regarding approval within 90 days of receiving that
6 request. The county board of supervisors shall invite all affected
7 school districts, special districts, and the state Treasurer to attend
8 the public meeting and provide theirs with an opportunity to
9 present written or verbal testimony at the meeting.
10 (c) A redevelopment agency may appeal a negative decision
11 by the county board of supervisors and request a rehearing,
12 which shall be granted. If the appeal and rehearing does not
13 result in approval of the plan, the redevelopment agency may
14 resubmit the plan after a year has elapsed.
15 (d) The county board of supervisors may waive the public
16 meeting required pursuant to this section.
17 SEC. 2. Section 33455.5 is added to the Health and Safety
18 Code, to read:
19 33455.5. (a) A redevelopment plan shall not be amended in a
20 manner that would decrease the amount of property tax revenues
21 received by a county unless the county board of supervisors
22 reviews and approves of the amendment.
23 (b) The county board of supervisors shall hold a public
24 meeting for the purposes of reviewing and approving a
25 redevelopment plan pursuant to this section within 60 days of
26 receiving a request for review and approval and shall deliver its
27 decision regarding approval within 90 days of receiving that
28 request. The county board of supervisors shall invite all affected
29 school districts, special districts, and the state Treasurer to attend
30 the public meeting and provide theirs with an opportunity to
31 present written or verbal testimony at the meeting.
32 (c) A redevelopment agency may appeal a negative decision
33 by the county board of supervisors. If the appeal does not result
34 in approval of the plan, the redevelopment agency may resubmit
35 the plan after a year has elapsed.
36 (d) The county board of supervisors may waive the public
37 meeting required pursuant to this section.
38 SEC. 3. Section 33486.5 is added to the Health and Safety
39 Code, to read:
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AB 2197 —4-
1 33486.5. (a) The, merger of project areas shall not occur
2 unless the county board of supervisors reviews and approves of
3 the merger.
4 (b) The county board of supervisors shall hold a public
5 meeting for the purposes of reviewing and approving a merger
6 pursuant to this section within 60 days of receiving a request for
7 review and approval and shall deliver its decision regarding
8 approval within 90 days of receiving that request. The county
9 board of supervisors shall invite all affected school districts,
10 special districts, and the state Treasurer to attend the public
11 meeting and provide theirs with an opportunity to present written
12 or verbal testimony at the meeting.
13 (c) A redevelopment agency may appeal a negative decision
14 by the county board of supervisors. If the appeal does not result
15 in approval of the merger, the redevelopment agency may
16 resubmit the proposal after a year has elapsed.
17 (d) The county board of supervisors may waive the public
18 meeting required pursuant to this section.
19 SEC. 4. If the Commission on State Mandates determines that
20 this act contains costs mandated by the state, reimbursement to
21 local agencies and school districts for those costs shall be made
22 pursuant to Part 7 (conunencing with Section 17500) of Division
23 4 of Title 2 of the Goveminent Code.
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