AB 667 moves to committee on local government
Assemblymember Roger Hernandez (D â€“ West Covina) recently introduced AB 667, which would require an economic impact report outlining the potential economic impacts caused to the local communities by large developments commonly known as â€˜big boxâ€™ or â€˜superstores.â€™
â€œI am a strong advocate for the business community and as such, I want our growing economy to continue on a path of creating good quality paying jobs for the hard working families of this state. We want California to continue this positive trend in adding new jobs to our economy, but we need to make sure that we are not hurting smaller businesses along the way. This bill will ensure the small business community is protected especially in regions deemed as economic assistance areas,â€ stated HernÃ¡ndez.
Economic assistance areas include, but are not limited to enterprise zones, local agency military base recovery areas (LAMBRA), manufacturing incentive areas, or recipients who receive over $100,000 in financial assistance from local governments. Millions of state and local subsidies, in the form of local tax credits or other incentives, are often offered to bring large developments to local communities in California.
â€œAB 667 provides transparency and creates accountability to local concerned taxpayers with the ability to inquire about tax incentives provided to businesses and how taxpayerâ€™s monies are being spent. If we are providing public subsidies that are designed to create good jobs and economic opportunities for our communities, the least we can do is require that a report be prepared to demonstrate the project will actually deliver on these results,â€ said HernÃ¡ndez.
The applicant of a proposed large development or superstore will also be required to pay for the costs associated in preparing the economic impact report; this provision in the bill will ensure that additional financial burden is not at the expense of taxpayers and the local government agency. Requiring an economic impact report will also provide additional opportunities for community residents to have a voice in these developments. Further, the economic impact report will provide useful planning information for responsible development in economic assistance areas.