Bills on Secession Backed by Business

A Valley business advocacy organization endorsed two state bills Thursday that may streamline the planning process for secession here.

The Valley Industry and Commerce Assn., or VICA, hasn’t taken a formal position on the possibility of municipal incorporation of the Valley.

However, the group does support the gathering of information to determine whether separating the Valley from the city of Los Angeles would benefit businesses and residents alike.

“These bills are a way to facilitate the study process to get the most viable, pertinent information about secession,” said Scott Olin Schmidt, VICA’s government liaison director.

One Senate bill calls for the transfer of existing Community Redevelopment Agency projects to a newly created city from an existing city like Los Angeles.

Current law only allows transfer of CRA projects to new cities from a county.

If the bill does not pass but secession efforts are successful, property tax revenue from CRA projects in the new city would return to the old jurisdiction, Schmidt said.

The bill, approved by the Senate, has moved to the Assembly for consideration.

Another bill in the Assembly would lift a requirement that newly created cities conduct environmental impact studies during the state-mandated process, conducted by the Local Agency Formation Commission, to determine the effects of secession.

Schmidt said VICA supports the bill because the studies usually cost thousands of dollars and their approval could take years.

“It typically is a long and arduous process,” he said. “It’s not like Valley secession won’t be studied in detail and opportunity [given] for public input.”

The bill passed the Assembly on Thursday and moves to the Senate.