Franchise Fees

AB 185 (Hernández) – Oppose
As Introduced on January 28, 2013

AB 185, by Assembly Member Roger Hernández, would require local agencies to keep any audio and video recordings of their open and public meetings for two years instead of thirty days. It would also require local agencies that collect franchise fees to use all of those funds to broadcast the open and public meets of its legislative body and any of its advisory committees, if financially feasible, and to use any remaining franchise fee revenue to provide live internet streams of those meetings.

Local agencies are still stinging over the state revoking local franchise authority a few years ago. This proposal would require counties and cities to use the general purpose revenue that remains after that revocation for a specific purpose imposed by the state.

Any requirement to use local discretionary funds for an activity mandated by the state constitutes a reimbursable mandate. The bill attempts to claim that its requirement is not reimbursable because local agencies can charge a fee to cover their costs, which fails to consider the fact that the state revoked that authority in 2006.

Local Taxes

AB 561 (Ting) – Request for Comment
As Introduced on February 20, 2013

AB 561, by Assembly Member Phil Ting, would expand the documentary transfer tax to include transactions where the transfer of ownership interests would constitute a change in ownership of property. It would also delete the express exemption for realty held by a partnership.

Counties and cities are authorized under law to impose documentary transfer taxes on documents by which realty is sold, such as deeds. The rate is set at fifty-five cents per five hundred dollars.

Economic Development 

AB 562 (Williams) – Request for Comment
As Introduced on February 20, 2013

AB 562, by Assembly Member Das Williams, would require local agencies to provide information to the public before approving economic development subsidies. The information includes who the primary beneficiary would be, the term of the subsidy, how much it would cost, what the public purpose of the subsidy is, how many jobs will be created as a result of it, and the projected tax revenue as a result of it. The agency would have to continue making the information available online for the duration of the subsidy.

AB 562 would further require local agencies that have grated subsidies to provide periodic reports following up on that same information.

The bill defines an economic development subsidy as an expenditure of public funds or loss of revenue of $100,000 or more for the purpose of stimulating economic development, including such things as bonds, grants, tax-increment financing, tax exemptions, and fee waivers. The bill would apply to counties and cities, including charter cities.

AB 564 (Mullin) – Watch
As Introduced on February 20, 2013 

AB 564, by Assembly Member Kevin Mullin, would prohibit the Department of Finance from acting to modify successor agencies’ enforceable obligations after they are approved after review by an oversight board. It would also prohibit the Department of Finance from modifying any property transfers or liquidations that are consistent with an approved plan of a successor agency.

This bill delves into the contentious issues surrounding the dissolution of redevelopment agencies, which spurred several bills last legislative session and is sure to do so again this year.