SECTIONS 7105-7118 - California Statutes

GOVERNMENT CODE

SECTION 7105-7118

7105. This chapter shall be known and may be cited as the Local
Agency Military Base Recovery Area Act.

7106. The Legislature finds and declares that the health, safety,
and welfare of the people of California depend upon the development,
stability, and expansion of private business, industry, and commerce,
and that there are certain areas within the state that have been and
will be severely economically impacted because of the closure of
military bases by the Department of Defense.
The Legislature further finds and declares that while it is
necessary for the Department of Defense to close military bases in
California because of the cuts in Department of Defense funding,
military bases have historically been crucial to the State of
California and its local economies and that their closure creates an
economic emergency for many communities.
The Legislature further finds and declares that more than 147,700
California military and civilian personnel have lost their jobs as a
result of the military base closures and another 180,000 are at stake
in the next round of base closures, and that because of military
base closures statewide more than thirteen billion dollars
($13,000,000,000) of revenues have been lost by the state and
localities since 1988.
The Legislature further finds and declares that many communities
want and need to attract new business and private investment to
compensate for the loss of revenue that occurs when a military base
closes or downsizes, but that many communities have insufficient
means to do so.
The Legislature further finds and declares that many military
bases have significant soil contamination and hazardous waste cleanup
problems that must be addressed in any reuse plan. In order to
encourage the safe and beneficial use of this land, it is important
that these problems be addressed in a safe and cost-effective manner.
Therefore, it is intended that this law shall encourage the
development of adequate treatment capacity for hazardous waste
generated at military bases. In addition, special consideration shall
be given to reuse plans incorporating the development of commercial
offsite facilities, as part of the reuse plan to address California's
treatment capacity shortfall.
Therefore, it is the purpose of this act to stimulate business and
industrial growth in those areas that are experiencing military base
closures by relaxing regulatory controls and thereby encouraging
private investment, cooperation, and innovation between local
government and private business and industry.
The Legislature further finds and declares that nothing in this
chapter shall be construed to infringe upon regulations relating to
civil rights, equal employment rights, equal opportunity rights, or
fair housing rights of any person.
The Legislature further finds and declares that no local agency
military base recovery area shall be designated in which any boundary
thereof is drawn in a manner as to include any area outside former
base property or outside base property of a base that is scheduled to
be closed.

7107. For purposes of this chapter:
(a) "Department" means the Department of Housing and Community
Development.
(b) "Base" means a federal military installation or
subinstallation as defined by regulations of the Departments of the
Army, Navy, and Air Force, and other defense activities.
(c) "Critically needed hazardous waste facilities" means a
facility that will provide necessary offsite treatment capacity for
which there is a substantial shortfall or lack of capacity. This
shortfall shall be as identified in any of the following documents:
(1) The State Hazardous Waste Management Plan.
(2) The State's Capacity Assurance Plan required by federal law.
(3) Other reports of the Department of Toxic Substances Control.
(d) "Downsizing" means a significant reduction in federal funding,
personnel, and equipment on a base.
(e) "Economic development plan" includes, but is not limited to, a
marketing plan, a job development plan, and an analysis of
infrastructure.
(f) "Eligible area" means a geographic area meeting the criteria
described in Section 7111.
(g) "Governing body" means a city, county, city and county, joint
powers agency, council, or board, as appropriate.
(h) "Local agency military base recovery area" (LAMBRA) means any
military base or former military base or portion thereof which is
designated in accordance with the provisions of Section 7114.
(i) "Region One" includes the following counties: Del Norte,
Siskiyou, Modoc, Humboldt, Trinity, Shasta, Lassen, Mendocino,
Tehama, Glenn, Butte, Plumas, Marin, Napa, Sonoma, Lake, Colusa,
Sutter, Yuba, Nevada, Sierra, Placer, Yolo, Solano, Sacramento, El
Dorado, and Amador.
(j) "Region Two" includes the following counties: Contra Costa,
San Francisco, Santa Cruz, Santa Clara, Alameda, and San Mateo.
(k) "Region Three" includes the following counties: Monterey, San
Benito, San Joaquin, Merced, Fresno, Stanislaus, Kings, Madera,
Mariposa, Tuolumne, Calaveras, Alpine, Mono, Inyo, and Tulare.
(l) "Region Four" includes the following counties: San Diego, San
Bernardino, Riverside, and Imperial.
(m) "Region Five" includes the following counties: Los Angeles,
Orange, Ventura, Santa Barbara, San Luis Obispo, and Kern.
(n) "Reuse plan" includes, but is not limited to, an evaluation of
community goals for the future as they relate to potential use of
the former military facilities and land areas, market studies or
surveys to evaluate the regional economic setting, trends, and
pressures affecting base reuse, surveys or inventories of on-base
facilities to determine their condition, quality and reuse potential
and liability, development of reuse alternatives responding to market
conditions, community goals, and reuse of potential of existing
assets, review of alternative strategies with the community at large
and consensus building of a preferred development strategy.

7110. (a) The governing body may, either by ordinance or
resolution, propose an eligible area within its respective
jurisdiction as the geographic area for a local agency military base
recovery area. A county may propose an area within the unincorporated
area as the geographic area for a local agency military base
recovery area, but shall not propose an area within an incorporated
area. A city may propose an area within the incorporated area as the
geographic area for a local agency military base recovery area, but
may not propose an area within an unincorporated area. A city and
county may propose an area within the city and county for designation
as a local agency military base recovery area. This proposed
geographic area shall be based upon findings by the governing body
that the area meets the criteria in Section 7111 and that the
designation as a local agency military base recovery area is
necessary in order to assist in attracting private sector investment
in the area. The governing body shall establish definitive
boundaries, not to exceed former base property, for the area to be
included in the application for designation and, if designated by the
department, the designation shall be binding for the period
described in Section 7110.5.
(b) Following the application for designation of a local agency
military base recovery area, the governing body shall apply to the
department for designation. The department shall adopt regulations
and guidelines concerning the necessary contents of each application
for designation.
(c) Any governing body with an eligible area within its
jurisdiction may complete a preliminary application.
(d) In designating a local agency military base recovery area, the
department shall select from the applications submitted those
proposed local agency military base recovery areas which, based on a
comparison of those applications, propose the most effective,
innovative, and comprehensive regulatory, tax, program, and other
incentives to attract private sector investment in the proposed local
agency military base recovery area. For purposes of this
subdivision, the following terms have the following meanings:
(1) "Regulatory incentives" includes, but is not limited to, the
elimination or reduction of fees for applications, permits, and local
government facilities and services; and the establishment of a
streamlined permit process.
(2) "Tax incentives" includes, but is not limited to, the
elimination or reduction of business license taxes and utility user
taxes.
(3) "Program" and "other incentives" may include, but are not
limited to, the provision or expansion of infrastructure; the
targeting of federal block grant moneys, including small cities,
education, and health and welfare block grants; the targeting of
economic development grants and loan moneys, including grant and loan
moneys provided by the federal Urban Development Action Grant
program and the federal Economic Development Administration; the
targeting of state and federal job disadvantaged and vocational
education grant moneys, including moneys provided by the federal Job
Partnership Training Act of 1982; the targeting of federal or state
transportation grant moneys; and the targeting of federal or state
low-income housing and rental assistance moneys.
(e) The department shall also consider the following:
(1) The unemployment rate for the area under the jurisdiction of
the local governing body.
(2) The number of civilian and military jobs lost as a result of
the base closure when compared to the number of jobs available in the
area.
(3) Whether the local agency has a comprehensive economic
development plan that is consistent with the reuse plan.
(4) Whether the local agency has a prepared plan for appropriate
hazardous waste management facilities as an integral part of the base
and shall give extra consideration for any plan that includes
provisions for critically needed hazardous waste facilities.
(5) Whether the governing body has resolved, as part of the reuse
plan approval, to prepare a program environmental impact report that
is in compliance with the California Environmental Quality Control
Act and associated guidelines.
(f) In evaluating applications for designation, the department
shall ensure that applications are not disqualified solely because of
technical deficiencies and shall provide applicants with an
opportunity to correct the deficiencies. Applications shall be
disqualified if the deficiencies are not corrected within two weeks.
The department shall provide technical assistance to applicants that
request it.

7110.5. A designation of a local agency military base recovery area
pursuant to Section 7110 shall be for an eight-year period, that
shall expire eight years after the department has determined that the
later of the following conditions has been met:
(a) The governing body has notified the department that legal
title to the economic development parcels at the former base has been
transferred to the governing body and, in cases in which early
transfer authority has been exercised, the terms and conditions
necessary for satisfying the requirements of Section 9601 and
following of Title 42 of the United States Code are met and
regulatory closure has occurred.
(b) The governing body has notified the department that vouchers
have been issued to an employer that has entered into a lease or
received title to property located within the local agency military
base recovery area.

7111. (a) An eligible area is a military base or former military
base which, based upon the determination of the department, fulfills
the following:
(1) The base is scheduled for closure or downsizing by a base
closure act.
(2) The governing body has approved a reuse plan for the base.
(b) A base is ineligible if any portion of the base is included in
an enterprise zone established pursuant to Chapter 12.8 (commencing
with Section 7070) or an area established pursuant to Chapter 12.9
(commencing with Section 7080).

7112. All property which is owned by or leased to the state or
governing body within the boundaries of the closed military base or
the military base that is proposed to be closed which is not in
current use by that government and which is not necessary for a
public purpose of the state or governing body owning the property may
be leased or subleased to a qualified business at a price below fair
market value, provided that it serves a public purpose to lease at
below fair market value. The lease may be renewed upon expiration if
the governing body has continuously complied with these requirements.

7113. (a) Upon filing a preliminary application, the applicant, as
lead agency, shall submit an initial study and a notice of
preparation to the department, the state clearinghouse, all
responsible agencies, and any public agency that has jurisdiction by
law with respect to the project.
(b) A governing body selected by the department as a final
applicant shall prepare, or cause to be prepared, an environmental
impact report pursuant to Division 13 (commencing with Section 21000)
of the Public Resources Code for any and all projects planned within
the local agency military base recovery area. Whenever a project
requires compliance with both the California Environmental Quality
Act and the National Environmental Policy Act, the lead agency shall,
to the greatest extent feasible, prepare a joint environmental
impact report and environmental impact statement. The draft
environmental impact report shall be submitted to the department with
the final application.
(c) Prior to final designation by the department, the applicant
shall complete and certify the final environmental impact report and
act on the project.

7113.5. When selecting successful applicants for a local agency
military base recovery area, the department shall limit the number of
local agency military base recovery areas to eight, which shall be
awarded by the following criteria, in addition to the criteria set
forth in Section 7111:
(a) The department shall designate at least one local agency
military base recovery area in each region.
(b) If the department finds that none of the applications in a
competition is satisfactory in meeting the selection criteria, the
department shall inform all applicants on the deficiencies in their
application and shall reopen competition for a period not to exceed
six months. Local governing bodies who originally applied may reapply
in the new competition.
(c) If, after following the procedures specified in subdivision
(b), the department determines that no applications are satisfactory,
the department may not designate a local agency military base
recovery area.
(d) Eligible bases shall compete for approval of a local agency
military base recovery area against other eligible bases. In any
event, not less than one area shall be designated from each region.

7114. (a) The department shall design, develop, and make available
the applications and the criteria for selection of a local agency
military base recovery area, and shall adopt all regulations
necessary to carry out this chapter.
(b) The applications, selection criteria, and all necessary
regulations for designation shall be adopted by the department and
made available not later than 120 days following the effective date
of this chapter.
(c) The department shall adopt regulations concerning the
designation procedures and application process as emergency
regulations in accordance with Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2. For the purpose of that
chapter, the adoption of the regulations shall be deemed to be an
emergency and necessary for the immediate preservation of the public
peace, health, and safety, or general welfare, notwithstanding
subdivision (f) of Section 11346.1. Notwithstanding subdivision (e)
of Section 11346.1, the regulations shall not remain in effect more
than 180 days unless the department complies with all provisions of
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 as required by subdivision (e) of Section 11346.1.

7114.2. (a) The department shall assess each LAMBRA a fee of
fifteen dollars ($15) for each application for issuance of a
certificate pursuant to subdivision (c) of Section 17053.46 of the
Revenue and Taxation Code and subdivision (c) of Section 23646 of the
Revenue and Taxation Code. The department shall collect the fee for
deposit into the Enterprise Zone Fund, pursuant to Section 7072.3,
for the costs of administering this chapter. The LAMBRA administrator
shall collect this fee at the time an application is submitted for
issuance of a certificate.
(b) The department shall adopt regulations governing the
imposition and collection of fees pursuant to this section and the
issuance of certificates pursuant to subdivision (c) of Section
17053.46 of the Revenue and Taxation Code and subdivision (c) of
Section 23646 of the Revenue and Taxation Code. The regulations shall
provide for a notice or invoice to fee payers as to the amount and
purpose of the fee. The adoption of the regulations shall be deemed
to be an emergency and necessary for the immediate preservation of
the public peace, health and safety, or general welfare.
Notwithstanding subdivision (e) of Section 11346.1, the regulations
shall remain in effect for no more than 360 days unless the agency
complies with all the provisions of Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 as required by
subdivision (e) of Section 11346.1.

7114.5. (a) The department shall provide, as a high priority, to a
designated local agency military base recovery area:
(1) Technical assistance for state and federal grant applications
as requested by the governing body.
(2) Technical assistance for small business loans through the
State of California and the federal government as requested by the
governing body.
(b) The California Environmental Protection Agency shall provide,
as a high priority, to a designated local agency military base
recovery area technical permit assistance for those permits that fall
under the jurisdiction of the agency as requested by the governing
body.
(c) The Office of Permit Assistance shall provide, as a high
priority, to a designated local agency military base recovery area
technical assistance on permits as requested by the governing body.

7115. The department shall submit a report to the Legislature on or
before July 1, 1996, and every year thereafter, which:
(a) Evaluates the effect of the program on employment, investment,
and incomes, and on state and local tax revenues in designated local
agency military base recovery areas.
(b) Indicates whether the number of existing local agency military
base recovery areas should be expanded, by how many, and under what
applicable time schedules.
(c) Information from the Franchise Tax Board on the dollar value
of local agency military base recovery area tax credits that are
claimed each year by businesses.

7116. (a) A local agency military base recovery area governing body
shall provide information at the request of the department as
necessary for the department to prepare the report required pursuant
to Section 7115.
(b) A local agency military base recovery area governing body
shall provide information at the request of the department as
necessary for the department to determine whether the governing body
is complying with the terms of the approved application.
(c) If the department determines that a local agency military base
recovery area governing body is not complying with the terms of the
approved application for designation, the department shall provide
written notice of the program deficiencies and the governing body
shall be given six months to correct the deficiencies.
(d) The department shall revoke the designation of a local agency
military base recovery area if the department determines that the
governing body granted the designation has not complied with the
terms of the approved application for designation within six months
after written notice pursuant to subdivision (c), and shall not be
considered a local agency military base recovery area until the
deficiencies are corrected.
(e) Any companies located in the local agency military base
recovery area shall not be penalized during any period of revocation
and may continue to operate with incentives provided pursuant to this
chapter.
(f) An audit of the program shall be made by the department
pursuant to Section 7076.1 with the cooperation of the governing body
to determine the effectiveness of the program under this chapter.

7117. A business located within a local agency military base
recovery area shall be eligible for the tax benefits set forth within
Sections 17053.45, 17053.46, 17268, 17276.2, 23645, 23646, 24356.8,
and 24416.2 of the Revenue and Taxation Code only if it provides a
net increase in jobs in the local agency military base recovery area
within the first two years from the business' initial date of
operation. If the business fails to meet its obligations under the
local agency military base recovery area plan or the requirements of
this act, any tax benefits received under those sections shall be
recaptured, as provided in each of those sections.

7117. Notwithstanding any other provision of law, the Office of
Small Business shall establish regulations for loans and loan
guarantees administered by the office that give high priority to
businesses in a local agency military base recovery area.

7118. (a) Whenever the state prepares a solicitation for a contract
for goods in excess of one hundred thousand dollars ($100,000),
except a contract in which the worksite is fixed by the provisions of
the contract, the state shall award a 5-percent preference to
California-based companies who demonstrate and certify under penalty
of perjury that of the total labor hours required to manufacture the
goods and perform the contract, at least 50 percent of the hours
shall be accomplished at an identified worksite or worksites located
in a local agency military base recovery area.
(b) In evaluating proposals for contracts for services in excess
of one hundred thousand dollars ($100,000), except a contract in
which the worksite is fixed by the provisions of the contract, the
state shall award a 5-percent preference on the price submitted by
California-based companies who demonstrate and certify under penalty
of perjury that not less than 90 percent of the labor hours required
to perform the contract shall be accomplished at an identified
worksite or worksites located in a local agency military base
recovery area.
(c) Where a bidder complies with subdivision (a) or (b), the state
shall award a 1-percent preference for bidders who certify under
penalty of perjury to hire persons living within a local agency
military base recovery area equal to 5 to 9 percent of its workforce
during the period of contract performance; a 2-percent preference for
bidders who shall agree to hire persons living within a local agency
military base recovery area equal to 10 to 14 percent of its
workforce during the period of contract performance; a 3-percent
preference for bidders who shall agree to hire persons living within
a local agency military base recovery area equal to 15 to 19 percent
of its workforce during the period of contract performance; and a
4-percent preference for bidders who shall agree to hire persons
living within a local agency military base recovery area equal to 20
or more percent of its workforce during the period of contract
performance.
(d) The maximum preference a bidder may be awarded pursuant to
this chapter and any other provision of law shall be 15 percent.
However, in no case shall the maximum preference cost under this
section exceed fifty thousand dollars ($50,000) for any bid, nor
shall the combined cost of preferences granted pursuant to this
section and any other provision of law exceed one hundred thousand
dollars ($100,000). In those cases where the 15-percent cumulated
preference cost would exceed the one hundred thousand dollar
($100,000) maximum preference cost limit, the one hundred thousand
dollar ($100,000) maximum preference cost limit shall apply.
(e) Notwithstanding any other provision of this section, small
business bidders qualified in accordance with Section 14838 shall
have precedence over nonsmall business bidders in that the
application of any bidder preference for which nonsmall business
bidders may be eligible, including the preference contained in this
section, shall not result in the denial of the award to a small
business bidder. This subdivision shall apply to those cases where
the small business bidder is the lowest responsible bidder, as well
as to those cases where the small business bidder is eligible for
award as the result of application of the 5-percent small business
bidder preference.
(f) All state contracts issued to bidders who are awarded
preferences under this section shall contain conditions to ensure
that the contractor performs the contract at the location specified
and meets any commitment to employ persons with high risk of
unemployment.
(g) (1) A business that requests and is given the preference
provided for in subdivision (a) or (b) by reason of having furnished
a false certification, and that by reason of this certification has
been awarded a contract to which it would not otherwise have been
entitled, shall be subject to all of the following:
(A) Pay to the state any difference between the contract amount
and what the state's cost would have been if the contract had been
properly awarded.
(B) In addition to the amount specified in subparagraph (A), be
assessed a penalty in an amount of not more than 10 percent of the
amount of the contract involved.
(C) Be ineligible to directly or indirectly transact any business
with the state for a period of not less than six months and not more
than 36 months.
(2) Prior to the imposition of any sanction under this
subdivision, the business shall be entitled to a public hearing and
to five days' notice of the time and place thereof. The notice shall
state the reasons for the hearing.
(h) In each instance in this section, a local agency military base
recovery area shall also mean any local agency military base
recovery area previously authorized under any other provision of
state law.