Amended  IN  Senate  March 26, 2025

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Senate Bill
No. 828

Introduced by Senator Cabaldon

February 21, 2025

An act to amend Section 65302 Sections 52200.6, 52201, and 54226 of the Government Code, relating to land use.


LEGISLATIVE COUNSEL'S DIGEST


SB 828, as amended, Cabaldon. Planning and Zoning Law: general plan: land use element. Land use: economic development: surplus land.
Existing law authorizes a city, county, or city and county, with the approval of its legislative body by resolution after a public hearing, to acquire, sell, or lease property in furtherance of the creation of an economic opportunity, as defined. Existing law provides that this authorization is an alternative to any other authority granted by law to cities to dispose of city-owned property.
This bill would revise those provisions to authorize a city, county, or city and county to, in addition to a sale or lease of property, otherwise transfer property under the above-described provisions to create an economic opportunity and would make related, conforming changes to these procedures. The bill would require the city, county, or city and county, to submit a report containing specified information to the Controller within 90 days after adopting the resolution approving the acquisition, sale, lease, or transfer of the property. The bill would also specify that these provisions are an alternative to any other authority or procedures for a city, county, or city and county to acquire, sell, lease, or otherwise transfer real property owned by a city, county, or city and county.
On and after January 1, 2014, existing law generally requires a local agency, before approving an economic development subsidy within its jurisdiction, to provide specified information in written form to the public and through its internet website, and to hold public hearings and report on those subsidies at specified intervals. Existing law requires that the creation of an economic opportunity, as described above, comply with these public notice, hearing, and reporting requirements.
This bill would provide that the creation of an economic opportunity under these provisions is subject only to the above-described requirements regarding approval of an economic development subsidy.
Existing law prescribes requirements for the disposal of surplus land by a local agency, including requiring that the local agency send a written notice of availability of the property to specified entities before disposing of that property or participating in negotiations to dispose of that property with a prospective transferee and, upon receipt of a notice of interest from an entity desiring to purchase or lease the surplus land, enter into good faith negotiations with that entity to determine a mutually satisfactory sales price and terms or lease terms, as provided. Existing law exempts from these procedures various types of surplus land, referred to as exempt surplus land.
This bill would additionally exempt from these requirements the disposal of surplus land by a local agency properties that a local agency proposes to sell, lease, or otherwise transfer under the above-described provisions authorizing the transfer of land in furtherance of the creation of an economic opportunity.

The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for its physical development, and the development of certain lands outside its boundaries, that includes, among other mandatory elements, a land use element that designates the proposed general distribution and general location and extent of the uses of the land for housing, business, industry, and other categories of public and private uses of land, as prescribed.

This bill would make nonsubstantive changes to the provision describing the required land use element.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Section 52200.6 of the Government Code is amended to read:

52200.6.
 (a) (1) This part shall not be interpreted to authorize the use of eminent domain for economic development purposes.
(2) For the purposes of this part, a city, county, or city and county shall not sell, lease, or otherwise transfer, at a price that is less than the fair market value, any real property that was acquired through eminent domain. This prohibition shall not apply to either of the following:
(A) Any real property governed by a long-range property management plan pursuant to Section 34191.5 of the Health and Safety Code.
(B) Any housing asset transferred to a city, county, or city and county pursuant to paragraph (1) of subdivision (a) of Section 34176 of the Health and Safety Code or subdivision (c) of Section 34181 of the Health and Safety Code, provided that the successor agency or the designated local authority in the affected jurisdiction has received a finding of completion from the Department of Finance pursuant to Section 34179.7 of the Health and Safety Code.
(b) The creation of an economic opportunity pursuant to this part shall be subject only to the provisions of Section 53083.
(c) The provisions of this part shall be an alternative to any authority of a city, county, or city and county to create an economic opportunity or to acquire, sell, or lease property for economic development, found in the Constitution, state law, local ordinance, or charter. This part does not limit, or in any way affect, the application of any other such laws.

SEC. 2.

 Section 52201 of the Government Code is amended to read:

52201.
 (a) (1) A city, county, or city and county may acquire property in furtherance of the creation of an economic opportunity. A city, county, or city and county may sell or lease sell, lease, or otherwise transfer property to create an economic opportunity. The acquisition, sale, or lease lease, or transfer shall first be approved by the legislative body by resolution after a public hearing. Notice of the time and place of the hearing shall be published in a newspaper of general circulation in the community at least once per week for at least two successive weeks, as specified in Section 6066, prior to the hearing.
(2) The city, county, or city and county shall make available, for public inspection and copying at a cost not to exceed the cost of duplication, a report no later than the time of publication of the first notice of the hearing mandated by this section. This report shall contain both of the following:
(A) A copy of the proposed acquisition, sale, or lease. lease, or transfer.
(B) A summary that describes and specifies all of the following:
(i) The cost of the agreement to the city, county, or city and county, including land acquisition costs, clearance costs, relocation costs, the costs of any improvements to be provided by the city, county, or city and county, plus the expected interest on any loans or bonds to finance the agreements.
(ii) For the sale or lease sale, lease, or transfer of property, the estimated value of the interest to be conveyed or leased, determined at the highest and best uses permitted under the general plan or zoning.
(iii) For the sale or lease sale, lease, or transfer of property, the estimated value of the interest to be conveyed or leased, determined at the use and with the conditions, covenants, and development costs required by the sale or lease. sale, lease, or transfer. The purchase price or present value of the lease payments which the lessor will be required to make during the term of the lease. If the sale price or total rental amount is less than the fair market value of the interest to be conveyed or leased, determined at the highest and best use, then the city, county, or city and county shall provide as part of the summary an explanation of the reasons for the difference.
(iv) An explanation of why the acquisition, sale, or lease lease, or transfer of the property will assist in the creation of economic opportunity, with reference to all supporting facts and materials relied upon in making this explanation.
(b) The resolution approving the acquisition, sale, or lease lease, or transfer shall be adopted by a majority vote unless the legislative body has provided by ordinance for a two-thirds vote for that purpose and shall contain a finding that the acquisition, sale, or lease lease, or transfer of the property will assist in the creation of economic opportunity. For the sale or lease sale, lease, or transfer of property, the resolution shall also contain one of the following findings:
(1) The consideration is not less than the fair market value at its highest and best use.
(2) The consideration is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized by the sale or lease. sale, lease, or transfer.
(c) Within 90 days after adopting the resolution approving the acquisition, sale, lease, or transfer of the property, the city, county, or city and county shall submit a report to the Controller. This report shall contain the property’s address, assessor’s parcel number, and a description of the transaction and the planned future use of the property, including the developments that will assist in the creation of economic opportunity, housing, or affordable housing.

(c)

(d) The provisions of this section are an alternative to any other procedures required by law or authority granted by law to cities to dispose of city-owned property. a city, county, or city and county, to sell, lease, or otherwise transfer property owned by a city, county, or city and county.

SEC. 3.

 Section 54226 of the Government Code is amended to read:

54226.
 (a) This article shall not be interpreted to limit the power of any local agency to sell or lease surplus land at fair market value or at less than fair market value, and any sale or lease at or less than fair market value consistent with this article shall not be construed as inconsistent with an agency’s purpose.
(b) This article shall not prevent a local agency from obtaining fair market value for the disposition of surplus land consistent with this section.
(c) This article shall not be interpreted to limit a local agency’s authority or discretion to approve land use, zoning, or entitlement decisions in connection with the surplus land.
(d) This article shall not be interpreted to require a local agency to dispose of land that is determined to be surplus.
(e) This article shall not apply to properties that a local agency proposes to sell, lease, or otherwise transfer pursuant to Part 4 (commencing with Section 52200) of Division 1.

(e)No provision of this

(f) This article shall be applied not apply when it conflicts with any other provision of statutory law.