BILL NUMBER: AB 1768 CHAPTERED 09/30/02 CHAPTER 1127 FILED WITH SECRETARY OF STATE SEPTEMBER 30,2002 PASSED THE SENATE SEPTEMBER 1, 2002 PASSED THE ASSEMBLY SEPTEMBER 1, 2002 AMENDED IN SENATE AUGUST 31, 2002 INTRODUCED BY Assembly Member Oropeza JANUARY 8, 2002 An act to amend Sections 12152, 13400, 13401, 13402, 13403, 13405, 13406, 63048.5, and 63052 of, and to add Article 6.3 (commencing with Section 8592.9) to Chapter 7 of Division 1 of Title 2 of, and to add Article 5.5 (commencing with Section 63047.5) to Chapter 2 of Division 1 of Title 6.7 of, the Government Code, to amend Sections 33020, 33681, and 33681.5 of, and to add Sections 33681.7 and 33681.8 to, the Health and Safety Code, to add Chapter 2.7 (commencing with Section 22047) to Part 3 of Division 2 of the Public Contract Code, to amend Section 19521 of the Revenue and Taxation Code, to amend Section 143 of the Streets and Highways Code, and to amend and supplement the Budget Act of 2002, relating to state and local government, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. (Approved by Governor September 30, 2002. Filed with Secretary of State September 30, 2002.) I have signed Assembly Bill 1768, but I am deleting the provision for funding up to $15,000,000 for the Governor's Security Advisor upon receipt of funding from federal allocations for Homeland Security. Given the uncertainty of the availability of federal funds, it is premature to require that the expenditure be limited to equipment standards placed in statute given that the existing Public Safety Radio Strategic Planning Committee is developing a statewide solution for radio interoperability systems for all first responders. Their standards will assure that California's emergency first responders will have equipment that complies with the statewide interoperability radio standards and that this equipment, subject to federal funding, will provide badly needed equipment for all of the State's emergency personnel in the improvement of public safety. Use of these funds should be consistent with established communication plans and systems authorized under the California Emergency Services Act including the California Emergency Plan, the California State Mutual Aid Radio System Plan, and other state and local plans providing for multi-discipline radio interoperability. This bill would unnecessarily specify a technology standard that could be overly restrictive. It is my preference that instead of being restrictive, the State in its procurements should maximize the use of business competition, thereby ensuring reasonable cost to the State and acquisition of proven, established, stable technology and equipment. GRAY DAVIS, Governor LEGISLATIVE COUNSEL'S DIGEST AB 1768, Oropeza. State and local government. (1) Existing law provides for the coordination of state and local public safety agencies and emergency response teams to respond to emergencies. Existing law administered by the Federal Communications Commission authorizes public safety agencies or entities to operate radio communication systems on specified frequencies of the radio spectrum and directs states to oversee interoperability of public safety spectrum. This bill would provide that, of the amounts received from the federal government for homeland security and appropriated in the Budget Act of 2002, not more than $15,000,000 may be allocated to the security adviser to the Governor for disbursement to state and local government public safety agencies to procure and operate specified radio equipment. It would require each state and local government public safety agency that receives these funds to provide an annual report to the Legislature, as specified. (2) Existing law authorizes the Secretary of State to appoint one Assistant Secretary of State, and deputies and other assistants necessary for the proper conduct of his or her office. The Assistant Secretary of State and all deputies are civil executive officers. The California Constitution specifies that state officers directly appointed by the Governor are exempt from state civil service. This bill would require, notwithstanding any other provision of law, that 2 employees of the Secretary of State's office be appointed by the Governor and be exempt from civil service. (3) Existing law requires a redevelopment agency, during the 1993-94 and 1994-95 fiscal years, to allocate to the county auditor an amount of revenue, determined in accordance with specified calculations made by the Director of Finance and based on a specified report of the Controller, for deposit the Educational Revenue Augmentation Fund in each county for allocation to school entities. This bill would require a redevelopment agency to make a similar allocation in the 2002-03 fiscal year, as provided, and would make conforming changes to related provisions. This bill would authorize a redevelopment agency to defer the payment of a portion of this allocation if that agency finds that it is unable, for either of certain reasons, to pay the full allocation, and if the agency adopts a specified resolution. By imposing additional duties on local tax officials in connection with the allocation of property tax revenues, this bill would impose a state-mandated local program. (4) Existing law provides for the payment of interest at specified rates on the amount of unclaimed property claims, overpayments of estate taxes, and overpayments of corporation taxes. This bill would provide, in the case of corporations, that the interest rate shall be the lesser of 5% or the bond equivalent rate of 13-week United States Treasury bills, as specified. (5) This bill would authorize the Secretary of the Technology, Trade, and Commerce Agency, with the approval of the Director of Finance, to direct the Controller to transfer specified funds of the agency to the General Fund to be credited toward an unallocated reduction in the agency budget. (6) This bill would also amend and supplement the Budget Act of 2002. (7) Proposition 40 approved by the voters provides for bond funds to be deposited in the California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Fund. Assembly Bill 716 of the 2001-02 Regular Session appropriates $219,765,000 from the fund and allocates $128,415,000 to the California State Library for purposes of the California Cultural and Historical Endowment, $91,350,000 to the Department of Parks and Recreation for opportunity grants, as provided, and appropriates $74,680,000 from that fund to the Department of Parks and Recreation for recreational grants, as provided. This bill would require the $91,350,000 that would be appropriated to the Department of Parks and Recreation for allocation as opportunity grants from the fund to be available to the Department of Parks and Recreation for those opportunity grants, and for state capital outlay projects. The bill would require the department, on or before December 15, 2002, and on or before December 15 annually thereafter, to report to the Joint Legislative Budget Committee on all state capital outlay projects funded from that appropriation and would require that to the extent the funds are used for a state capital outlay project, the project be subject to specified provisions regarding the State Public Works Board review and approval. This provision would take effect only if AB 716 is enacted and becomes effective on or before January 1, 2003. (8) This bill would appropriate $5,000,000 from the Public Transportation Account in the State Transportation Fund to the Department of Transportation, for local assistance to the City of Schafter for the Southern San Joaquin Valley Intermodal Facility. (9) This bill would make specified funds appropriated by the Budget Act of 1998 and the Budget Act of 1999 to the Western Center for Archaeology and Paleontology and by the Budget Act of 1999 the Regional Aquatic Center swimming pool in the City of San Jacinto available for liquidation until June 30, 2005. (10) Item 1760-001-0666 of the Budget Act of 2002 appropriates funds for the support of the Department of General Services, payable from the Service Revolving Fund, pursuant to a specified schedule. Provision 3 of Item 1760-001-0666, among other things, provides that departments shall not develop or implement e-government systems to the extent such systems already exist within the state's centralized e-government systems. This bill would delete that provision. (11) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. (12) The bill would declare that it is to take effect immediately as an urgency statute. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Article 6.3 (commencing with Section 8592.9) is added to Chapter 7 of Division 1 of Title 2 of the Government Code, to read: Article 6.3. Public Safety Communications Equipment 8592.9. (a) Of the funds received from the federal government for homeland security and appropriated in the Budget Act of 2002, not more than fifteen million dollars ($15,000,000) may be allocated to the security adviser to the Governor for disbursement to state and local government public safety agencies to procure and operate radio equipment that will provide interoperability among state, local, and federal public radio systems. This interoperable radio equipment shall meet the public safety digital communications standards in Suite 102 of the American National Standards Institute and the Telecommunications Information Association. (b) Each state and local government public safety agency that receives funds pursuant to this section shall report to the Legislature on its progress in implementing this section by January 1 of each year, beginning in 2004, and until all of the funds disbursed pursuant to this section have been expended. (c) This section shall not be construed to preempt or supercede the development and implementation of public radio communications systems by local governments. SEC. 2. Section 12152 of the Government Code is amended to read: 12152. (a) To assist him or her in the discharge of the duties of his or her office, the Secretary of State may appoint one Assistant Secretary of State, whose powers, duties and liabilities shall be those of a deputy, and any deputies and clerical, expert, technical and other assistants necessary for the proper conduct of his or her office. The Assistant Secretary of State and all deputies are civil executive officers. (b) Notwithstanding any other provision of law, but consistent with Section 4 of Article VII of the California Constitution and with subdivision (a) of this section, two employees of the Secretary of State's office shall be appointed by the Governor and are exempt from state civil service. SEC. 12. Section 33020 of the Health and Safety Code is amended to read: 33020. "Redevelopment" means the planning, development, replanning, redesign, clearance, reconstruction, or rehabilitation, or any combination of these, of all or part of a survey area, and the provision of those residential, commercial, industrial, public, or other structures or spaces as may be appropriate or necessary in the interest of the general welfare, including recreational and other facilities incidental or appurtenant to them and payments to school and community college districts in the fiscal years specified in Sections 33681, 33681.5, and 33681.7. SEC. 13. Section 33681 of the Health and Safety Code is amended to read: 33681. (a) (1) During the 1992-93 fiscal year, a redevelopment agency shall remit, prior to May 10, 1993, an amount equal to the amount determined for that agency pursuant to subparagraph (D) of paragraph (2) to the county auditor for deposit in the Educational Revenue Augmentation Fund created pursuant to Section 97.03 of the Revenue and Taxation Code. (2) For the 1992-93 fiscal year, on or before October 1, 1992, the Director of Finance shall do each of the following: (A) Determine the total amount of property taxes apportioned to each agency pursuant to Section 33670, including any amounts apportioned to affected taxing agencies pursuant to Section 33401 or 33676, in the 1990-91 fiscal year. (B) Determine the total amount of property taxes apportioned to all agencies pursuant to Section 33670, including any amounts apportioned to affected taxing agencies pursuant to Section 33401 or 33676, in the 1990-91 fiscal year. (C) Determine a percentage factor by dividing two hundred five million dollars ($205,000,000) by the amount determined pursuant to subparagraph (B). (D) Determine an amount for each agency by multiplying the amount determined pursuant to subparagraph (A) by the percentage factor determined pursuant to subparagraph (C). (E) Notify each agency and each legislative body of the amount determined pursuant to subparagraph (D). (F) Notify each county auditor of the amounts determined pursuant to subparagraph (D) for each agency in his or her county. (b) (1) Notwithstanding Sections 33334.2, 33334.3, and 33334.6, and any other provision of law, in order to make the full allocation required by this section, an agency may borrow up to 50 percent of the amount required to be allocated to the Low- and Moderate-Income Housing Fund pursuant to Sections 33334.2, 33334.3, and 33334.6 during the 1992-93 fiscal year, unless executed contracts exist that would be impaired if the agency reduced the amount allocated to the Low- and Moderate-Income Housing Fund pursuant to the authority of this section. (2) As a condition for borrowing pursuant to this subdivision, an agency shall make a finding that there are insufficient other moneys to meet the requirements of subdivision (a). Funds borrowed pursuant to this subdivision shall be repaid in full on or before June 30, 2003, unless the agency is, on or before June 30, 2003, required by law to make a further payment to an Educational Revenue Augmentation Fund in the 2002-03 fiscal year, in which case the date for repayment of the loan borrowed pursuant to this subdivision shall be delayed by one year for each fiscal year, commencing with the 2002-03 fiscal year, that the agency is required to make this further payment. (c) In order to make the allocation required by this section, an agency may use any funds that are legally available and not legally obligated for other uses, including, but not limited to, reserve funds, proceeds of land sales, proceeds of bonds or other indebtedness, lease revenues, interest, and other earned income. No moneys held in a low- and moderate-income fund as of July 1, 1992, may be used for this purpose. (d) The legislative body shall, by March 1, 1993, report to the county auditor as to how the agency intends to fund the allocation required by this section. (e) The allocation obligations imposed by this section, including amounts owed, if any, created under this section, are hereby declared to be an indebtedness of the redevelopment project to which they relate, payable from taxes allocated to the agency pursuant to Section 33670, and shall constitute an indebtedness of the agency with respect to the redevelopment project until paid in full. (f) It is the intent of the Legislature, in enacting this section, that these allocations directly or indirectly assist in the financing or refinancing, in whole or in part, of the community's redevelopment projects pursuant to Section 16 of Article XVI of the California Constitution. (g) It is the intent of the Legislature in enacting this section that this section supersede and be operative in place of Section 33681 of the Health and Safety Code as added by Senate Bill 617 of the 1991-92 Regular Session. (h) This section shall be operative only until July 1, 2003. This section shall remain in effect only until January 1, 2004, and as of that date is repealed. SEC. 14. Section 33681.5 of the Health and Safety Code is amended to read: 33681.5. (a) (1) During each of the 1993-94 and 1994-95 fiscal years, a redevelopment agency shall remit prior to May 10 an amount equal to the amount determined for that agency pursuant to subparagraph (D) of paragraph (2) to the county auditor for deposit in the Educational Revenue Augmentation Fund created pursuant to Section 97.03 of the Revenue and Taxation Code. (2) For each of the 1993-94 and 1994-95 fiscal years, on or before October 1, the Director of Finance shall do each of the following: (A) Determine the net tax increment apportioned to each agency pursuant to Section 33670, excluding any amounts apportioned to affected taxing agencies pursuant to Section 33401 or 33676, in the 1990-91 fiscal year. (B) Determine the net tax increment apportioned to all agencies pursuant to Section 33670, excluding any amounts apportioned to affected taxing agencies pursuant to Section 33401 or 33676, in the 1990-91 fiscal year. (C) Determine a percentage factor by dividing sixty-five million dollars ($65,000,000) by the amount determined pursuant to subparagraph (B). (D) Determine an amount for each agency by multiplying the amount determined pursuant to subparagraph (A) by the percentage factor determined pursuant to subparagraph (C). (E) Notify each agency and each legislative body of the amount determined pursuant to subparagraph (D). (F) Notify each county auditor of the amounts determined pursuant to subparagraph (D) for each agency in his or her county. (b) (1) Notwithstanding Sections 33334.2, 33334.3, and 33334.6, and any other provision of law, in order to make the full allocation required by this section, an agency may borrow up to 50 percent of the amount required to be allocated to the Low- and Moderate-Income Housing Fund pursuant to Sections 33334.2, 33334.3, and 33334.6 during the 1993-94 and 1994-95 fiscal years, unless executed contracts exist that would be impaired if the agency reduced the amount allocated to the Low- and Moderate-Income Housing Fund pursuant to the authority of this section. (2) As a condition of borrowing pursuant to this subdivision, an agency shall make a finding that there are insufficient other moneys to meet the requirements of subdivision (a). Funds borrowed pursuant to this subdivision shall be repaid in full on or before June 30, 2004, unless the agency is, on or before June 30, 2003, required by law to make a further payment to an Educational Revenue Augmentation Fund in the 2002-03 fiscal year, in which case the date for repayment of the loan borrowed pursuant to this subdivision shall be delayed by one year for each fiscal year, commencing with the 2002-03 fiscal year, that the agency is required to make this further payment. (c) In order to make the allocation required by this section, an agency may use any funds that are legally available and not legally obligated for other uses, including, but not limited to, reserve funds, proceeds of land sales, proceeds of bonds or other indebtedness, lease revenues, interest, and other earned income. No moneys held in a low- and moderate-income fund as of July 1 of that fiscal year may be used for this purpose. (d) The legislative body shall by March 1 report to the county auditor as to how the agency intends to fund the allocation required by this section. (e) The allocation obligations imposed by this section, including amounts owed, if any, created under this section, are hereby declared to be an indebtedness of the redevelopment project to which they relate, payable from taxes allocated to the agency pursuant to Section 33670, and shall constitute an indebtedness of the agency with respect to the redevelopment project until paid in full. (f) It is the intent of the Legislature, in enacting this section, that these allocations directly or indirectly assist in the financing or refinancing, in whole or in part, of the community's redevelopment projects pursuant to Section 16 of Article XVI of the California Constitution. (g) For the purpose of making the determinations required by subdivision (a), the Director of Finance shall use those amounts reported as the "net tax increment to agency" for all agencies and for each agency in Table 6 of the 1990-91 fiscal year Controller's Annual Report on Financial Transactions Concerning Community Redevelopment Agencies of California. (h) In the event that revised reports have been accepted by the Controller on or before January 1, 1994, the Director of Finance shall use appropriate data that has been certified by the Controller for the purpose of making the determinations required by subdivision (a). If this subdivision requires the Director of Finance to revise the determinations for the 1993-94 and 1994-95 fiscal years, the director shall not make those changes for the 1993-94 fiscal year, but instead shall apply the revised determinations for both fiscal years to the 1994-95 fiscal year. (i) This section shall be operative only until July 1, 2004. This section shall remain in effect only until January 1, 2005, and as of that date is repealed. SEC. 15. Section 33681.7 is added to the Health and Safety Code, to read: 33681.7. (a) (1) During the 2002-03 fiscal year, a redevelopment agency shall, prior to May 10, remit an amount equal to the amount determined for that agency pursuant to subparagraph (I) of paragraph (2) to the county auditor for deposit in the county's Educational Revenue Augmentation Fund created pursuant to Article 3 (commencing with Section 97) of Chapter 6 of Part 0.5 of Division 1 of the Revenue and Taxation Code. (2) For the 2002-03 fiscal year, on or before October 1, the Director of Finance shall do all of the following: (A) Determine the net tax increment apportioned to each agency pursuant to Section 33670, excluding any amounts apportioned to affected taxing agencies pursuant to Section 33401 or 33676, in the 2000-01 fiscal year. (B) Determine the net tax increment apportioned to all agencies pursuant to Section 33670, excluding any amounts apportioned to affected taxing agencies pursuant to Section 33401 or 33676, in the 2000-01 fiscal year. (C) Determine a percentage factor by dividing thirty-seven million five hundred thousand dollars ($37,500,000) by the amount determined pursuant to subparagraph (B). (D) Determine an amount for each agency by multiplying the amount determined pursuant to subparagraph (A) by the percentage factor determined pursuant to subparagraph (C). (E) Determine the total amount of property tax revenue apportioned to each agency pursuant to Section 33670, including any amounts apportioned to affected taxing agencies pursuant to Section 33401 or 33676, in the 2000-01 fiscal year. (F) Determine the total amount of property tax revenue apportioned to all agencies pursuant to Section 33670, including any amounts apportioned to affected taxing agencies pursuant to Section 33401 or 33676, in the 2000-01 fiscal year. (G) Determine a percentage factor by dividing thirty-seven million five hundred thousand dollars ($37,500,000) by the amount determined pursuant to subparagraph (F). (H) Determine an amount for each agency by multiplying the amount determined pursuant to subparagraph (E) by the percentage factor determined pursuant to subparagraph (G). (I) Add the amount determined pursuant to subparagraph (D) to the amount determined pursuant to subparagraph (H). (J) Notify each agency and each legislative body of the amount determined pursuant to subparagraph (I). (K) Notify each county auditor of the amounts determined pursuant to subparagraph (I) for each agency in his or her county. (b) (1) Notwithstanding Sections 33334.2, 33334.3, and 33334.6, and any other provision of law, in order to make the full allocation required by this section, an agency may borrow up to 50 percent of the amount required to be allocated to the Low and Moderate Income Housing Fund pursuant to Sections 33334.2, 33334.3, and 33334.6 during the 2002-03 fiscal year, unless executed contracts exist that would be impaired if the agency reduced the amount allocated to the Low and Moderate Income Housing Fund pursuant to the authority of this subdivision. (2) As a condition of borrowing pursuant to this subdivision, an agency shall make a finding that there are insufficient other moneys to meet the requirements of subdivision (a). Funds borrowed pursuant to this subdivision shall be repaid in full within 10 years following the date on which moneys were borrowed. (c) In order to make the allocation required by this section, an agency may use any funds that are legally available and not legally obligated for other uses, including, but not limited to, reserve funds, proceeds of land sales, proceeds of bonds or other indebtedness, lease revenues, interest, and other earned income. No moneys held in a low- and moderate-income fund as of July 1 of that fiscal year may be used for this purpose. (d) The legislative body shall by March 1 report to the county auditor as to how the agency intends to fund the allocation required by this section. (e) The allocation obligations imposed by this section, including amounts owed, if any, created under this section, are hereby declared to be an indebtedness of the redevelopment project to which they relate, payable from taxes allocated to the agency pursuant to Section 33670, and shall constitute an indebtedness of the agency with respect to the redevelopment project until paid in full. (f) It is the intent of the Legislature, in enacting this section, that these allocations directly or indirectly assist in the financing or refinancing, in whole or in part, of the community's redevelopment projects pursuant to Section 16 of Article XVI of the California Constitution. (g) In making the determinations required by subdivision (a), the Director of Finance shall use those amounts reported as the "Tax Increment Retained by Agency" for all agencies and for each agency in Table 7 of the 2000-01 fiscal year Controller's State of California Community Redevelopment Agencies Annual Report. (h) If revised reports have been accepted by the Controller on or before January 1, 2003, the Director of Finance shall use appropriate data that has been certified by the Controller for the purpose of making the determinations required by subdivision (a). SEC. 16. Section 33681.8 is added to the Health and Safety Code, to read: 33681.8. (a) (1) For the purposes of this section, "existing indebtedness" means one or more of the following obligations incurred by a redevelopment agency prior to the effective date of this section, the payment of which is to be made in whole or in part, directly or indirectly, out of taxes allocated to the agency pursuant to Section 33670, and that is required by law or provision of the existing indebtedness to be made during the fiscal year of the relevant allocation required by Section 33681.7: (A) Bonds, notes, interim certificates, debentures, or other obligations issued by the agency, whether funded, refunded, assumed, or otherwise, pursuant to Article 5 (commencing with Section 33640). (B) Loans or moneys advanced to the agency, including, but not limited to, loans from federal, state, or local agencies, or a private entity. (C) A contractual obligation that, if breached, could subject the agency to damages or other liabilities or remedies. (D) An obligation incurred pursuant to Section 33445. (E) Indebtedness incurred pursuant to Section 33334.2. (F) An amount, to be expended for the operation and administration of the agency, that may not exceed 90 percent of the amount spent for those purposes in the 2000-01 fiscal year. (G) Obligations imposed by law with respect to activities that occurred prior to the effective date of the act that adds this section. (2) Existing indebtedness incurred prior to the effective date of this section may be refinanced, refunded, or restructured after that date, and shall remain existing indebtedness for the purposes of this section, if the annual debt service during that fiscal year does not increase over the prior fiscal year and the refinancing does not reduce the ability of the agency to make the payment required by subdivision (a) of Section 33681.7. (3) For the purposes of this section, indebtedness shall be deemed to be incurred prior to the effective date of this section if the agency has entered into a binding contract subject to normal marketing conditions, to deliver the indebtedness, or if the redevelopment agency has received bids for the sale of the indebtedness prior to that date and the indebtedness is issued for value and evidence thereof is delivered to the initial purchaser no later than 30 days after the date of the contract or sale. (b) During the 2002-03 fiscal year, an agency that has adopted a resolution pursuant to subdivision (c) may, pursuant to subdivision (a) of Section 33681.7, allocate to the auditor less than the amount required by subdivision (a) of Section 33681.7, if the agency finds that either of the following has occurred: (1) That the difference between the amount allocated to the agency and the amount required by subdivision (a) of Section 33681.7 is necessary to make payments on existing indebtedness that are due or required to be committed, set aside, or reserved by the agency during the applicable fiscal year and that are used by the agency for that purpose, and the agency has no other funds that can be used to pay this existing indebtedness, and no other feasible method to reduce or avoid this indebtedness. (2) The agency has no other funds to make the allocation required by subdivision (a) of Section 33681.7. (c) (1) Any agency that, pursuant to subdivision (b), allocates to the auditor less than the amount required by subdivision (a) of Section 33681.7 shall adopt, prior to December 31, 2002, after a noticed public hearing, a resolution that lists all of the following: (A) Each existing indebtedness incurred prior to the effective date of this section. (B) Each indebtedness on which a payment is required to be made during the 2002-03 fiscal year. (C) The amount of each payment, the time when it is required to be paid, and the total of the payments required to be made during the 2002-03 fiscal year. For indebtedness that bears interest at a variable rate, or for short-term indebtedness that is maturing during the fiscal year and that is expected to be refinanced, the amount of payments during the fiscal year shall be estimated by the agency. (2) The information contained in the resolution required by this subdivision shall be reviewed for accuracy by the chief fiscal officer of the agency. (3) The legislative body shall additionally adopt the resolution required by this section. (d) (1) Any agency that, pursuant to subdivision (b), determines that it will be unable in the 2002-03 fiscal year, to allocate the full amount required by subdivision (a) of Section 33681.7 shall, subject to paragraph (3), enter into an agreement with the legislative body by February 15, 2003, to fund the payment of the difference between the full amount required to be paid pursuant to subdivision (a) of Section 33681.7 and the amount available for allocation by the agency. (2) The obligations imposed by paragraph (1) are hereby declared to be indebtedness incurred by the redevelopment agency to finance a portion of a redevelopment project within the meaning of Section 16 of Article XVI of the California Constitution. This indebtedness shall be payable from tax revenues allocated to the agency pursuant to Section 33670, and any other funds received by the agency. The obligations imposed by paragraph (1) shall remain an indebtedness of the agency to the legislative body until paid in full, or until the agency and the legislative body otherwise agree. (3) The agreement described in paragraph (1) shall be subject to these terms and conditions specified in a written agreement between the legislative body and the agency. (e) If the agency fails, under either Section 33681.7 or subdivision (d), to transmit the full amount of funds required by Section 33681.7, is precluded by court order from transmitting that amount, or is otherwise unable to meet its full obligation pursuant to Section 33681.7, the county auditor, by no later than May 15, 2003, shall transfer any amount necessary to meet the obligation determined for that agency in subparagraph (D) of paragraph (2) of subdivision (a) of Section 33681.7 from the legislative body's property tax allocation pursuant to Chapter 6 (commencing with Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation Code. SEC. 18. Section 19521 of the Revenue and Taxation Code is amended to read: 19521. (a) The rate established under this section (referred to in other code sections as "the adjusted annual rate") shall be determined in accordance with Section 6621 of the Internal Revenue Code, except that: (1) (A) For taxpayers other than corporations, the overpayment rate specified in Section 6621(a)(1) of the Internal Revenue Code shall be modified to be equal to the underpayment rate determined under Section 6621(a)(2) of the Internal Revenue Code. (B) In the case of any corporation, for purposes of determining interest on overpayments for periods beginning before July 1, 2002, the overpayment rate specified in Section 6621(a)(1) of the Internal Revenue Code shall be modified to be equal to the underpayment rate determined under Section 6621(a)(2) of the Internal Revenue Code. (C) In the case of any corporation, for purposes of determining interest on overpayments for periods beginning on or after July 1, 2002, the overpayment rate specified in Section 6621(a)(1) of the Internal Revenue Code shall be modified to be the lesser of 5 percent or the bond equivalent rate of 13-week United States Treasury bills, determined as follows: (i) The bond equivalent rate of 13-week United States Treasury bills established at the first auction held during the month of January shall be utilized in determining the appropriate rate for the following July 1 to December 31, inclusive. Any such rate shall be rounded to the nearest full percent (or, if a multiple of one-half of 1 percent, that rate shall be increased to the next highest full percent). (ii) The bond equivalent rate of 13-week United States Treasury bills established at the first auction held during the month of July shall be utilized in determining the appropriate rate for the following January 1 to June 30, inclusive. Any such rate shall be rounded to the nearest full percent (or, if a multiple of one-half of 1 percent, that rate shall be increased to the next highest full percent). (2) The determination specified in Section 6621(b) of the Internal Revenue Code shall be modified to be determined semiannually as follows: (A) The rate for January shall apply during the following July through December, and (B) The rate for July shall apply during the following January through June. (b) (1) For purposes of this part, Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), and any other provision of law referencing this method of computation, in computing the amount of any interest required to be paid by the state or by the taxpayer, or any other amount determined by reference to that amount of interest, that interest and that amount shall be compounded daily. (2) Paragraph (1) shall not apply for purposes of computing the amount of any addition to tax under Section 19136 or 19142. (c) Section 6621(c) of the Internal Revenue Code, relating to increase in underpayment rate for large corporate underpayments, is modified as follows: (1) The applicable date shall be the 30th day after the earlier of either of the following: (A) The date on which the proposed deficiency assessment is issued. (B) The date on which the notice and demand is sent. (2) This subdivision shall apply for purposes of determining interest for periods after December 31, 1991. (3) Section 6621(c)(2)(B)(iii) of the Internal Revenue Code shall apply for purposes of determining interest for periods after December 31, 1998. (d) Section 6621(d) of the Internal Revenue Code, relating to the elimination of interest on overlapping periods of tax overpayments and underpayments, shall not apply. SEC. 20. Notwithstanding any other provision of law, the Secretary of the Technology, Trade, and Commerce Agency, with the approval of the Director of Finance, may direct the Controller to transfer specified funds of the agency identified by the Secretary to the General Fund for the purposes of implementing the unallocated reduction required by Item 2920-401 of Section 2.00 of the Budget Act of 2002. SEC. 21. (a) Notwithstanding any other provision of law, the funds appropriated in Schedule (6) in Item 3790-301-6029 of Section 2.00 of the Budget Act of 2002 shall be available for acquisition, studies, preliminary plans, working drawings, and construction in accordance with Proposition 40. Any project funded from this section shall be subject to the State Public Works Board review and approval, pursuant to Section 13332.11 of the Government Code. (b) Subdivision (a) shall become operative only if Assembly Bill 716 is enacted and becomes effective on or before January 1, 2003. SEC. 22. Notwithstanding any other provision of law, the amount appropriated in Item 8830-001-0001 of Section 2.00 of the Budget Act of 2002 is $630,000, and the amount appropriated in Schedule (1) of that item is $645,000. SEC. 23. (a) The sum of five million dollars ($5,000,000) is hereby appropriated from the Public Transportation Account in the State Transportation Fund to the Department of Transportation, for local assistance to the City of Schafter for the Southern San Joaquin Valley Intermodal Facility. (b) Funds appropriated pursuant to this section shall be available for allocation by the department through June 30, 2005. SEC. 24. (a) Funds that are appropriated in subdivision (b) of Section 2 of Assembly Bill 716 shall be available to the Department of Parks and Recreation for opportunity grants pursuant to that subdivision, and for state capital outlay projects. On or before December 15, 2002, and on or before December 15 annually thereafter, the Department of Parks and Recreation shall report to the Joint Legislative Budget Committee on all state capital outlay projects funded from subdivision (b) of Section 2 of Assembly Bill 716. To the extent the funds are used for a state capital outlay project, the project shall be subject to the State Public Works Board review and approval, pursuant to Section 13332.11 of the Government Code. (b) Subdivision (a) shall become operative only if Assembly Bill 716 is enacted and becomes effective on or before January 1, 2003. SEC. 25. Notwithstanding any other provision of law, funds appropriated by Item 3790-102-0001 (84) of Section 2.00 of the Budget Act of 1998 (Ch. 324, Stats. 1998) and Item 3790-101-0001 (181) of Section 2.00 of the Budget Act of 1999 (Ch. 50, Stats. 1999) to the Western Center Community Foundation: Western Center for Archaeology and Paleontology, and by Item 3790-101-0001 (152) of Section 2.00 of the Budget Act of 1999 (Ch. 50, Stats. 1999) to the City of San Jacinto: Regional Aquatic Center swimming pool shall be available for liquidation until June 30, 2005. SEC. 26. Provision 3 of Item 1760-001-0666 of Section 2.00 of the Budget Act of 2002 is amended to read: 3. It is the intent of the Legislature that the departments that provide e-government services or transactions shall reimburse the Department of General Services (DGS) for the development, implementation, and maintenance of the state's centralized e-government systems. The DGS shall establish rates that departments shall be charged for the ongoing use and maintenance of the systems. Notwithstanding Item 9840-001-0988, Item 9840-001-0494, and Section 27.00 of this act, the Director of General Services may augment this item, by up to an aggregate of one and one-half percent in cases where the Legislature has provided funding in departmental budgets for e-government services. Any augmentation that is deemed to be necessary on a permanent basis shall be submitted for review as part of the normal budget development process. An augmentation shall be approved by the Department of Finance and shall not be made sooner than 30 days after written notification is provided to the Chairperson of the Senate Committee on Budget and Fiscal Review, the Chairperson of the Assembly Budget Committee, and the Chairperson of the Joint Legislative Budget Committee, or not sooner than whatever lesser time the Chairperson of the Joint Legislative Budget Committee may determine. SEC. 27. Notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund. SEC. 28. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to make the necessary statutory changes to implement the Budget Act of 2002 at the earliest possible time, it is necessary that this act take effect immediately.