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AB-1234 Redevelopment agencies: financing.(2011-2012)

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Amended  IN  Assembly  March 31, 2011

CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 1234


Introduced  by  Assembly Member Norby

February 18, 2011


An act to amend Section 33671 of, and to add Section 33609 to, the Health and Safety Code, relating to redevelopment.


LEGISLATIVE COUNSEL'S DIGEST


AB 1234, as amended, Norby. Redevelopment: tax increment funds: payment of indebtedness. agencies: financing.
(1) The Community Redevelopment Law authorizes the establishment of redevelopment agencies in communities to address the effects of blight, as defined, and to utilize various types of financing for that purpose.
This bill would prohibit redevelopment agencies from using specified revenue for the promotion, recruitment, or retention of any professional sports team, or any related activity, as defined or for the development, planning, design, site acquisition, subdivision, financing, leasing, construction, operation, or maintenance of infrastructure, as defined, related to the occupancy, recruitment, or retention of any professional sports team.

Existing

(2) The 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 establishment thereof. 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

The law also authorizes a redevelopment agency, in any redevelopment plan or in the proceedings for the advance of moneys or the making of loans or the incurring of any indebtedness, to finance or refinance, in whole or in part, a redevelopment project to irrevocably pledge its tax increment revenues for the payment of the principal of, and interest on, these loans, advances, or other indebtedness.
This bill would make technical, nonsubstantive changes in those provisions that authorize a redevelopment agency to pledge its tax increment revenues for the payment on loans, advances, or other indebtedness.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 33609 is added to the Health and Safety Code, to read:

33609.
 (a) Notwithstanding any other law, a redevelopment agency shall not use any tax increment revenue, revenue derived from bond proceeds, or revenue derived from any other financing authorized pursuant to this part for either of the following:
(1) The promotion, recruitment, or retention of any professional sports team, or any related activity.
(2) The development, planning, design, site acquisition, subdivision, financing, leasing, construction, operation, or maintenance of infrastructure related to the occupancy, recruitment, or retention of any professional sports team.
(b) For purposes of this section:
(1) “Related activity” includes, but is not limited to, legal counsel, lobbying, and any other public relations or promotional activity.
(2) “Infrastructure” includes, but is not limited to, a sports facility and related development, and infrastructure improvements associated with a sports facility and related development.

SECTION 1.SEC. 2.

 Section 33671 of the Health and Safety Code is amended to read:

33671.
 A redevelopment agency may, in a redevelopment plan or in the proceedings for the advance of moneys, the making of loans, or the incurring of any indebtedness, whether funded, refunded, assumed, or otherwise, to finance or refinance, in whole or in part, the redevelopment project, irrevocably pledge the portion of taxes specified in subdivision (b) of Section 33670 for the payment of the principal of and interest on these loans, advances, or other indebtedness.