HomeMy WebLinkAboutSB 1206 Kehoe - RedevelopmentF
CITY OF PALM DESERT
Community Services Division
Staff Report
REQUEST: CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE ACTION
ON SB 1206 (KEHOE) AT ITS MEETING OF FEBRUARY 28, 2006
SUBMITTED BY: Patricia Scully, CFEE, Senior Management Analyst
DATE: March 23, 2006
CONTENTS: SB 1206 Language
RECOMMENDATION:
By Minute Motion, concur with the action taken by the Legislative Review Committee at its
Meeting of February 28, 2006, and direct staff to prepare a letter of opposition for the Mayor's
signature with regard to SB 1206 (Morrow) relative to redevelopment.
EXECUTIVE SUMMARY:
Passage of SB 1206 would revise the definition of "predominantly urbanized" and revise the
conditions that characterize a blighted area.
BACKGROUND:
Community Redevelopment Law authorizes the establishment of redevelopment agencies in
communities in order to address the effects of blight in those communities and defines a
blighted area as one that is predominantly urbanized and characterized by specified conditions.
Passage of SB 1206 would revise the definition of °predominantly urbanized" and revise the
conditions that characterize a blighted area. This bill would prohibit the inclusion of non -
blighted parcels in a redevelopment project area for the purpose of obtaining property tax
revenue from the area without substantial justification for their inclusion. This bill would also
limit the power of a redevelopment agency to incur tax increment debt after ten years of
receiving tax increment revenue.
CITY COUNCIL STAFF REPORT
RE: SB 1206 (KEHOE) MARCH 23, 2006
As an example: The Agency's Project Area I's ability to incur debt originally expired in 2004.
In 2004, the Legislature revised this limit to allow agencies the ability to incur debt to the life of
the plan. This bill would eliminate the Agency's ability to incur debt. It would require the
Agency to make a finding of blight to issue bonds. The blight test would be based on the new
blight findings, which are not the blight findings which established the Project Area. The new
blight findings require an element of economic blight, which the Agency could not meet.
Passage of this bill would severely limit the ability of Palm Deserts Redevelopment Agency to
obtain further bonding due to the time restriction contained in this bill. Therefore, the
Legislative Review Committee recommends that the City Council oppose SB 1206 and direct
staff to prepare a letter stating that position to appropriate legislators for the Mayor's signature.
PATRICIA S, CEE {>
SENIOR MANAGEMENT ANALYST
SHEILA R. GTLLTGAN ' _ CARL
ACM/COMMUNITY SERVICES CITY MANA
PS:mpg
2
SB 1206 Senate Bill - AMENDED
Page 1 of 9
BILL NUMBER: SB 1206 A14ENDED
BILL TEXT
AMENDED IN SENATE FEBRUARY 27, 2006
INTRODUCED BY Senator 3ehoe
( Coauthors: SenaEors Dunn.
and Machado
JANUARY 26, 2006
An act to amend Sections 33030, 33031, 33320.1, 33378, 33445,
33485, 33486, and 33501 of, and to add Sec -ions 33501.2, 33501.2,
33501.3, 33501.7, and 33601.5 to, the Health and Safety Code,
relating -o redevelopment.
LEGISLATIVE CO-I.;NSEL'S DIGEST
SB 1206, as amended, Kehoe Redevelopment.
(1) ^i:e Community Redevelcpment Law authorizes the establishment
of redevelopment agencies in communities in order to address the
effects of blight in those communities and defines a blighted area as
one that is predominantly urbanized and c-aracterized by specified
conditions.
This b_1_ would revise the definition of "predominantly urbanized"
and revise the conditions that characterize a blighted area. The
bill would prohibit the inclusion of nonblighted parcels in a
redevelopment project area for the purpose of obtaining property tax
revenue from the area without substantial justification =or their
inclusion.
(2) Existing law makes an ordinance that adopts, modifies, or
amends a redevelopment plan subject to referendum and requires t-e
referendum petitions circulated in cites and counties over 500,000
popuiaticn be sub_nitted to the clerk of the legislative body within
90 days cf the adoption of the ordinance subject to referendum.
This bill would extend these provisions to all cities and
ccunties.
(3) Existing law prohibits a redevelopment agency from using tax
_ncrement funds for the construction or rehabilitation of a
city hall or county administration building.
This bill would +_=' 4-'14-b-4-4,
include land acquisition. :.^,
--
tc related site clearance,
and design costs in the prohibition against using cax ir.cremenc
funds for cre construction of a city hall or county administration,
building
(4) Existing law authorizes a redevelopment agency to merge
protect areas under its jurisdiction without regard to contiguity of
the areas.
This bill would require the legislative body of the redevelopment
agency that intends such a merger to find, based on substantial
evidence, that significant blight remains within one of the project
areas and that the blight cannot be eliminated without the merger.
(5) Existing law authorizes the bringing of a civil action to
determine the validity of proceedings taken by a legislative body
related to the establishment of a redevelopment agency and specified
http://info.sen.ca.gov/pub/bill/sen/sb_ 1201-1250/sb_ 1206_bill_20060227_amended_sen.html 3/2/2006
SB 1206 Senate Bill - AMENDED
Page 2 of 9
actions taken by a redevelopment agency and makes the Department of
Finance an interested person in action brought with regard to the
validity of an ordinance adopting a redevelopment plan.
This bill would require the civil action to be commenced within. 90
days from the date of the decision of the legislative body or
redevelopment agency and would also make the Attorney General an
interested person in a civil action brought to determine the validity
of these matters. The bill would authorize the Attornev General, the
Department of Conservation, and the Department of Finance to
intervene as of right in these civil actions.
The bill would prohibit an action from being brought against a
redevelopment agency or legislative body unless the grounds for
noncompliance with the Community Redevelopment Law are presented to
the agency or legislative body orally or in writing before the close
of the required public hearing.
The bill would require the party bringing an action to furnish a
copy of the complaint, the answer, and any amended or supplemental
pleading to the Attorney General and would prohibit a court from
granting relief until proof of service of this notice is filed with
the court.
The bill would prohibit a redevelopment agency or legislative body
from permitting or requiring a property owner or real party in
interest to indemnify the agency of legislative body against these
civil actions as a condition of adopting, amending, or implementing a
redevelopment plan.
(6) Existing law requires redevelopment plan containing provisions
for the receipt and use of property tax increment revenues by the
redevelopment agency to contain a time limit not exceeding 20 years
from the adoption of the redevelopment plan on the establishing of
loans, advances, and indebtedness to be paid with the proceeds of
those revenues to finance the redevelopment project, except by
amendment of the redevelopment plan.
This bill would prohibit a redevelopment agency from establishing
any loans, advances, or indebtedness to be paid with tax increment
revenues commencing with the llth fiscal year in which the agency
receives property tax increment revenues from a project area unless
the legislative body finds, based on substantial evidence, that
significant bight remains within the project area and this blight
cannot be eliminated without the establishment of the loan., advance,
or indebtedness.
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. Section 33030 of the health and Safety Code is amended
to read:
33030. (a) It is found and declared that there exist in many
communities blighted areas that constitute physical and economic
liabilities, requiring redevelopment in the interest of the health,
safety, and general welfare of the people of these communities and of
the state.
(b) A blighted area is one that contains both of the following:
(1) An area that is predominantly urbanized, as that term is
defined in Section 33320.1, and is an area in which the combination
of conditions set forth in Section 33031 is so prevalent and so
substantial that it causes a reduction of, or lack of, proper
utilization of the area to an extent that it constitutes a serious
http://info.sen.ca.gov/pub/billlsen/sb_1201-1250/sb_1206 bill_20060227_amended_sen.htrnl 3/2/2006
SB 1206 Senate Bill - AMENDED
Page 3 of 9
physica. and economic burden on the community that cannot reasonably
be expected to be reversed or alleviated by private enterprise or
governmental action, or both, without redevelopment.
(2) An area that is characterized by one or more conditions set
forth in any paragraph of subdivision (a) of Section 33031 and one or
more conditions set forth in any paragraph of subdivision (b) of
Section 33031.
(c) A blighted area that contains the conditions described in
subdivision (b) may also be characterized by the existence or
inadequate public improvements.
SEC. 2. Section 33031 of the Health and Safety Code is amended to
read:
33031. (a) This subdivision describes physical conditions that
cause blight:
(1) Buildings in which it is unsafe or unhealthy for persons to
live or work. These conditions can be caused by serious building code
violations,
serious dilapidation, seriously defective design,
construction that is vulnerable to serious damage from seismic
or geologic hazards, and faulty or inadequate utilities.
(2) Factors that prevent or substantially hinder the economically
viable use or capacity of buildings or lots. This condition can be
caused by buildings of substandard design, lots of inadequate size
given present general plan and zoning standards, and market
conditions.
(3) Adjacent or nearby incompatible land uses that prevent the
economic development of those parcels or other portions of the
project area.
(4) The existence of subdivided lots of irregular shape and
inadequate size given present general plan -ap
zoning standards, and market conditions that
prevent the economic development of those parcels and that are in
multiple ownership.
(b) This subdivision describes economic conditions that cause
bight:
(1) Depreciated or stagnant property values. As used in this
paragraph, "depreciated or stagnant property values" means that the
annual rate of increase in the assessed valuation of real property
within the project area is less than 50 percent of the annual rate of
increase in the assessed valuation of real property in the community
in seven out of the 1C previous fiscal years.
(2) Properties containing hazardous wastes that require the use of
agency authority as specified in Article 12.5 (commencing with
Section 33459)•
(3) Abnormally high business vacancies or abnormally low lease
rates. As used in this paragraph, "abnormally high business vacancies"
means that the vacancy rate for commercial and industrial uses in
the project area is greater than 200 percent of the vacancy rate for
similar uses in the community. As used in this paragraph, "abnormally
low lease rates" means that the average value of the monthly leases
for commercial and industrial uses in the project area are less than
50 percent of the average value of the monthly leases for similar
uses in the community.
(4) An inadequate number of necessary commercial facilities that
are normally found in neighborhoods, including grocery stores, drug
stores, and parks and other lending institutions. As used in this
paragraph, an "inadequate number of necessary commercial facilities"
means that the number of neighborhood commercial facilities per 1,000
residents of the project area is less than 50 percent of the number
of similar facilities per 1,000 residents in the community.
http://info.sen.ca.gov/publbilllsenlsb_1201-1250/sb_1206 bill_20060227_amended_sen.html 3/2/2006
SB 1206 Senate Bill - AMENDED
Page 4 of 9
(5) Residential overcrowding. As used in this paragraph,
"residential overcrowding" means that the percentage of dwelling
units that have twice tc:e number of occupants per bedroom in the
project area is greater that: 200 percent of the percentage of
dwelling units that have twice the number of occupants per bedroom in
the community.
(6) An excess of bars and liquor stores. As used in this
paragraph, an "excess of bars and liquor stores" means that the
number of onsite and offsite liquor licenses per 1,000 residents in
the project area is greater than 200 percent of the number of onsite
and offsite liquor -Licenses in the community.
(7) An excess of adult -oriented business.
(8) A high crime rate that constitutes a serious threat to the
public safety and welfare. As used in this paragraph, "high crime
rate" means that the crime rate in to project area is greater than
200 percent of the crime rate in the community, as measured by the
California Crime Index prepared by the Department of Justice.
SAC. 3. Section 33320.1 of the Health and Safety Code is amended
to read:
33320.1. (a) "Project area" means, except as provided in Section
33320.2, 33320.3, 33320.4, or 33492.3, a predominantly urbanized area
of a community that is a blighted area, the redevelopment of which
is necessary to effectuate the public purposes declared in th-s part,
and that is selected by the planning commission pursuant to Section
33322.
(b) As used in this section, "predominantly urbanized" :Weans that
not less than 80 percent of the land in the project area is either of
the following:
(1) Developed for urban uses.
(2) An integral part of one or more areas developed for urban uses
tat are surrounded or substantially surrounded by parcels that have
been or are developed for urban uses. Parcels separated by only an
improved right-of-way shall be deemed adjacent for the purpose of
this subdivision. Parcels that are not blighted shall not be in.cl-ded
in the project area for the purpose of obtaining the allocation of
taxes from the area pursuant to Section 33670 without other
substantial justification for their inclusion.
(c) For the purposes of this section, a parcel of property as
shown on the official maps of the county assessor is developed for
urban uses if that parce'_ is developed for urban uses consistent with
present general plan and zoning standards.
(d) The requirement that a project be predominantly urbanized
shall apply only to a project area for which a final redevelopment
plan is adopted on or after January 1, 1984, or to an area that is
added to a project area by an amendment to a redevelopment plan.,
which amendment is adopted on or after January 1, 1984.
SEC. 4. Section 33378 of the Health and Safety Code is amended to
read:
33378. (a) With respect to any ordinance that is subject to
referendum pursuant to Sections 33365 and 33450, the language of the
statement of the ballot measure shall set forth with clarity and in
language understandable to the average person that a "Yes" vote is a
vote in: favor of adoption or amendment of the redevelopment plan and
a "No" vote is a vote against the adoption or amendment of the
redevelopment plan.
(b) Notwithstanding any other provision of law, including the
charter of any city or city and county, referendum petitions
circulated in all cities or counties shall bear valid signatures
numbering not less than 10 percent of the total votes cast within the
city or county for Governor at the last gubernatorial election and
http://info.sen.ca.gov/publbilllsenlsb_1201-1250/sb_1206 bill_20060227_amended sen.html 3/2/2006
SB 1206 Senate Bill - AMENDED
Page 5 of 9
shall be submitted to the clerk of the legislative body within 90
days of the adoption of an ordinance subject to referendum under this
article.
(c) With respect to any ordinance that is subject to referendum
pursuant to Sections 33365 and 33450 and either provides for
tax -increment financing pursuant to Section 33670 or expands a
project area that is subject to tax -increment financing, the
referendum measure shall include, in the ballot pamphlet, an analysis
by the county auditor -controller and, at the option of the
legislative body, a separate analysis by the agency, of the
redevelopment plan or amendment that will include both of the
following:
(1) An estimate of the potential impact on property taxes per each
ten thousand dollars ($10,000) of assessed valuation for taxpayers
located in the city or county, as the case may be, outside the
redevelopment project area during the life of the redevelopment
project.
(2) An estimate of what would happen to the project area in the
absence of the redevelopment project or in the absence of the
proposed amendment to the plan.
SEC. 5. Section 33445 of the Health and Safety Code is amended to
read:
33445. (a) Notwithstanding Section 33440, an agency may, with the
consent of the legislative body, pay all or a part of the value of
the land for and the cost of the installation and construction of any
building, facility, structure, or other improvement that is publicly
owned either within or without the project area, if the legislative
body determines all of the following:
(1) That the buildings, facilities, structures, or other
improvements are of benefit to the project area or the immediate
neighborhood in which the project is located, regardless of whether
the improvement is within another project area, or in the case of a
project area in which substantially all of the '_and is publicly owned
that the improvement is of benefit to an adjacent project area of
the agency.
(2) That no other reasonable means of financing the buildings,
facilities, structures, or other improvements, are available to the
conLnun.ity.
(3) That the payment of funds for the acquisition of lard or the
cost of buildings, facilities, structures, or other improvements will
assist in the elimination of one or more blighting conditions inside
t::e project area or provide housing for low- or moderate -income
persons, and is consistent with the implementation plan adopted
pursuant to Section 33490.
(b) The determinations by the agency and the local legislative
body pursuant to subdivision (a) shall be final and conclusive. For
redevelopment plans, and amendments to those plans which add
territory to a project, adopted after October 1, 1976, acquisition or
property and installation or construction of each facility shall be
provided for in the redevelopment plan. A redevelopment agency shall
not pay for the normal maintenance or operations of buildings,
facilities, structures, or other improvements that are publicly
owned. Normal maintenance or operations do not include the
construction, expansion, addition to, or reconstruction of,
buildings, facilities, structures, or other improvements that are
publicly owned otherwise undertaken pursuant to this section.
(c) When the value of the land or the cost of the installation and
construction of the building, facility, structure, or other
improvement, or both, has been, or will be, paid or provided for
initially by the connunity or other public corporation, the agency
http://info.sen.ca.gov/pub/bill/sen/sb_1201-1250/sb_1206 bill_20060227_amended sen.html 3/2/2006
SB 1206 Senate Bill - AMENDED
Page 6 of 9
may enter into a contract with the community or other public
corporation under which it agrees to reimburse the community or other
public corporation for all or part of the value of the land or all
or part of the cost of the building, facility, structure, or other
improvement, or both, by periodic payments over a period of years.
(d) The obligation of the agency under the contract shall
constitute an indebtedness of the agency for the purpose of carrying
out the redevelopment project for the project area, which
indebtedness may be made payable out of taxes levied in the project
area and allocated to the agency under subdivision (b) of Section
33670 or out of any other available funds.
(e) In a case where the land has been or will be acquired by, or
the cost of the installation and construction of the building,
facility, structure or other improvement has been paid by, a parking
authority, joint powers entity, or other public corporation to
provide a building, facility, structure, or other improvement that
has been or will be leased to the community, the contract may be made
with, and the reimbursement may be made payable to, the community.
(f) With respect to the financing, acquisition, or construction of
a transportation, collection, and distribution system and related
peripheral parking facilities, in a county wit^ a population of
4,000,000 persons or more, the agency shall, in order to exercise the
powers granted by this section, enter into an agreement with the
rapid transit district that includes the county, or a portion
thereof, in which agreement the rapid transit district shall be given
all of the following responsibilities:
(1) To participate with the other parties to the agreement to
design, determine the location and extent of the necessary
rights -of -way for, and construct, the transportation, collection, and
distribution systems and related peripheral parking structures and
facilities.
;2) To operate and maintain the transportation, collection, and
distribution systems and related peripheral parking structures and
facilities in accordance with the rapid transit district's
outstanding agreements and the agreement required by this paragraph.
(g) (1) Notwithstanding any other authority granted in this
section, an agency shall not pay for, either directly or indirectly,
with tax increment funds the construction , including land
acquisition, related site clearance, and design costs, or
rehabilitation of a building that is, or that will be used as, a city
hall or county
i.li
administration building.
(2) This subdivision shall not preclude an agency from making
payments to construct, rehabilitate, or replace a city hall if an
agency does any of the following:
(A) Allocates tax increment funds for this purpose during the
1988-89 fiscal year and each fiscal year thereafter in order to
comply with federal and state seismic safety and accessibility
standards.
(B) Uses tax increment funds for the purpose of rehabilitating or
replacing a city hall that was seriously damaged during an earthquake
that was declared by the President of the United States to be a
natural disaster.
(C) Uses the proceeds of bonds, notes, certificates of
participation, or other indebtedness that was issued prior to January
1, 1994, for the purpose of constructing or rehabilitating a city
hall, as evidenced by documents approved at the time of the issuance
of the indebtedness.
http://info.sen.ca.gov/publbilllsenlsb_1201-1250/sb_1206 bill_20060227_amended sen.html 3/2/2006
SB 1206 Senate Bill - AMENDED
Page 7 of 9
SEC. 6. Section 33485 of the Health and Safety Code is amended to
read:
33485. The Legislature finds and declares that the provisions of
this part, which require that taxes allocated pursuant to Section
33670 be applied to the project area in which those taxes are
generated, are designed to assure (1) that project areas are
terminated when the redevelopment of those areas has been completed
and (2) that the increased revenues that result from redevelop_ent
accrue to the benefit of affected taxing jurisdictions at the
completion of redevelopment activities in a project area. Those
mergers are desirable as a matter of public policy if they result in
substantial benefit to the public and if they contribute to the
revitalization of biighted.areas through the increased economic
vitality of those areas and through increased and improved housing
opportunities in or near such areas. The Legislature further finds
and declares that it is necessary to enact a statute that sets out
uniform statewide standards for merger of project areas to assure
that those mergers serve a vital public purpose.
SEC. 7. Section 33486 or the Health and Safety Code is amended to
read:
33486. (a) For the purpose of allocating taxes pursuant to
Section 33670 and subject to the provisions of this article,
redevelopment project areas under the jurisdiction of a redevelopment
agency for which redevelopment plans have been adopted pursuant to
Article 5 (ccmmencing with Section 33360), may be merged, without
regard to contiguity of the areas, by the amendment of each affected
redevelopment plan as provided in Article 12 (commencing with Section
33450). Before adopting the ordinance amending each affected
redevelopment plan, the legislative body shall find, based on
substantial evidence, that both of the following conditions exist:
(1) Significant blight remains within one of the project areas.
(2) This blight cannot be eliminated without merging the project
areas and the receipt of property taxes.
(b) (1) Except as provided in paragraph (2), taxes attributable to
each project area :verged pursuant to this section that are allocated
to the redevelopment agency pursuant to Section 33670 may be
allocated; as provided in paragraph (2) to the entire merged project
area for the purpose of paying the principal of, and interest on,
indebtedness incurred by the redevelop -Went agency to finance or
refinance, in whole or in part, the merged redevelopment project.
(2) If the redevelopment agency has, prior to merger of
redevelopment project areas, incurred any indebtedness on account of
a constituent project area so merged, taxes attributable to that area
that are allocated to the agency pursuant to Section 33670 shall be
first used to comply with the terms of any bond resolution or other
agreement pledging the taxes from the constituent project area.
r _ yr t �- _ '�a ._ __ _ _ '_ 3iiaQi�earn+v— _ _ ': a _ _ __ _ .l _ _ _ _ •h :
D
l 4 4 1. l
(c) After the merger of redevelopment projects pursuant to
subdivision (a), the clerk of the legislative body shall transmit a
copy of the ordinance amending the plans for projects to be merged to
the governing body of each of the taxing agencies that receives
property taxes from or levies property taxes upon any property in the
project.
SEC. 8. Section 33501 of the Health and Safety Code is amended to
read:
33501. (a) An action may be brought pursuant to Chapter 9
(commencing with Section 860) of Title 10 of Part 2 of the Code of
http://info.sen.ca.c,ov/pub/bill/sen/sb_1201-1250/sb_1206 bill_20060227_amended_sen.html 3/2/2006
SB 1206 Senate Bill - AMENDED
Page 8 of 9
Civil Procedure to determine the validity of bonds and the
redevelopment plan to be financed or refinanced, in whole or in part,
by the bonds, or to determine the validity of a redevelopment plan
not financed by bonds, including without limiting the generality of
the foregoing, the legality and validity of all proceedings
theretofore taken for or in any way connected with the establishment
of the agency, its authority to transact business and exercise its
powers, the designation of the survey area, the selection of the
project area, the formulation of the preliminary plan, the validity
of the finding and determination that the project area is
predominantly urbanized, and the validity of the adoption of the
redevelopment plan, and also including the legality and validity of
all proceedings theretofore taken and (as provided in the bond
resolution) proposed to be taken for the authorization, issuance,
sale, and delivery of the bonds, and for the payment of the principal
thereof and interest thereon..
(b) Notwithstanding any other provision of law, an action brought
pursuant to this section shall be commenced within 90 days from the
date of the decision of the legislative body or the agency.
(c) For the purposes of protecting the interests of the state, the
Attorney General and the Department of Finance are interested
persons pursuant to Section 863 of the Code of Civil Procedure in any
action brought pursuant to this section.
(d) For purposes of contesting the inclusion in a project area of
lards that are enforceably restricted, as that term is defined in
Sections 422 and 422.5 of the Revenue and Taxation Code, or lands
that are in agricultural use, as defined in subdivision (b) of
Section 51201 of the Government Code, the Department of Conservation,
the county agricultural commissioner, the county farm bureau, the
California Farm Bureau Federation, and agricultural entities and
general farm organizations that provide a written request for notice,
are interested persons pursuant to Section 863 of the Code of Civil
Procedure, in any action brought with respect to the validity of an
ordinance adopting or amending a redevelopment plan pursuant to this
section.
SEC. 9. Section 335-01.1 is added to the Health and Safety Code, to
read:
33501.1. Notwithstanding Chapter 9 (commencing with Section 860)
of Title 10 of the Code of Civil Procedure, the Attorney General, the
Department of Conservation, and the Department of Finance may,
pursuant to subdivision (b) of Section 387 of the Code of Civil
Procedure, intervene as of right in any action brought pursuant to
Section 33501.
SEC. 10. Section 33501.2 is added to the Health and Safety Code,
to read:
33501.2. (a) An action shall not be brought pursuant to Section
33501 unless the alleged grounds for noncompliance with this division
were presented to the agency or the legislative body orally or in
writing by any person before the close of the public hearing required
by this division.
(b) A person shall not bring an action pursuant to Section 33501
unless that person objected to the decision of the agency or the
legislative body before the close of the public hearing required by
this division.
(c) This section does not preclude any organization formed after
the approval of a project from bringira an action pursuant to Section.
33501 if a member of that organization has complied with subdivision
(b) .
(d) This section does not apply to the Attorney General. ..
(e) This section does not apply to any alleged grounds for
http://info.sen.ca.gov/pub/bill/sen/sb_l201-1250/sb_l206 bill_20060227_amended_sen.html 3/2/2006
SB 1206 Senate Bill - AMENDED
Page 9 of 9
noncompliance with this division for which there was no public
hearing or other opportunity for members of the public to raise those
objections orally or in writing before the decision by the agency or
the legislative body, or if the agency or the legislative body
failed to give the notice required by law.
SEC. 11. Section 33501.3 is added to the Health and Safety Code,
to read:
33501.3. T'r.e party bringing any action specified in Section 33501
shall furnish a copy of the complaint, the answer, and any amended
or supplemental pleading to the Attorney General. Relief, temporary
or permanent, shall not be granted until proof of service of this
notice is filed with the court.
SEC. 12. Section 33501.7 is added to the Health and Safety Code,
to read:
33501.7. Notwithstanding any other provision of law, an agency or
legislative body shall not permit or require a property owner or a
real party in interest to indemnify the agency or the legislative
body against actions brought pursuant to Section 33501 as a condition
of adopting, amending, or implementing a redevelopment plan.
SEC. 13. Section 33601.5 is added to the Health and Safety Code,
to read:
33601.5. (a) Commencing with the llth fiscal year in which an
agency receives tax increments from a project area, the agency sail
not establish any 'loans, advances, or indebtedness to be paid with
the proceeds of property taxes received pursuant to Article 6
(commencing with Section 33670) to finance in whole or in part that
redevelopment project unless the legislative 'body finds, based on
substantial evidence, that both of the following conditions exist:
(1) Significant blight remains within the project area.
(2) This blight cannot be eliminated without the establishment of
the loan, advance, or indebtedness.
(b) This section shall not prevent an agency from refinancing,
refunding, or restructuring an existing indebtedness if that
indebtedness is not increased and the time during which the
indebtedness is to be repaid is not extended beyond the time limit to
repay indebtedness required by Article 4 (commencing with Section
33330) of Chapter 4.
SEC. 14. In enacting Section 9 of this act to add Section 33501.1
to the Health and Safety Code, it is the intent of the Legislature to
create for the Attorney General, the Department of Conservation, and
the Department of Finance an exception to the ruling in Green v.
Community Redevelopment Agency (1979) 96 Cal.App.3d 491.
http://info.seii.ca.gov/pub/bill/sen/sb_1201-1250/sb_1206_bill_20060227_amended sen.html 3/2/2006