BILL NUMBER: SB 530	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 28, 2009

INTRODUCED BY   Senator Dutton

                        FEBRUARY 27, 2009

   An act to amend  Sections 33607.5, 33607.7, and 
 Section  33684 of the Health and Safety Code, relating to
redevelopment.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 530, as amended, Dutton. Redevelopment: payments to taxing
entities.
   Existing law requires a redevelopment agency to make specified
payments of property tax increment funds in specified fiscal years to
taxing entities, and requires that these payments be allocated among
these entities in proportion to the percentage share of property tax
revenues received by these entities in these fiscal years. 
Existing law requires, on or before October 1, 2009, each
redevelopment agency to submit a report to the county auditor and to
each affected taxing entity that describes each project area,
including its location, purpose, date established, date or dates
amended, and statutory and contractual passthrough requirements.
Existing law requires the report to include specified information in
a specified manner for each project area. Existing law requires the
county auditor to review each redevelopment agency's report and any
other relevant information to determine   whether the county
auditor concurs with the information included in the reports.
Existing law requires the redevelopment agency to make outstanding
payments to a local educational agency, as specified, if the agency's
report indicates outstanding payment obligations to a local
educational agency. 
   This  bill would revise the calculation, as specified, by
which specified payments of property tax increment funds in specified
fiscal years to taxing entities are allocated among those entities.
The  bill would include under these provisions a
redevelopment plan that was adopted prior to January 1, 1994, but
amended after January 1, 1994, to increase the limitation on the
number of dollars to be allocated to the redevelopment agency or that
increased, or eliminated, the time limit on the establishing of
loans, advances, and indebtedness, or that lengthened the period
during which the redevelopment plan is effective, as specified. The
bill also would declare that the changes to these provisions do not
constitute a change in, but are declaratory of, existing law.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   
  SECTION 1.    Section 33607.5 of the Health and
Safety Code is amended to read:
   33607.5.  (a) (1) This section shall apply to each redevelopment
project area that, pursuant to a redevelopment plan that contains the
provisions required by Section 33670, is either: (A) adopted on or
after January 1, 1994, including later amendments to these
redevelopment plans; or (B) adopted prior to January 1, 1994, but
amended, after January 1, 1994, to include new territory. For plans
amended after January 1, 1994, only the tax increments from territory
added by the amendment shall be subject to this section. All the
amounts calculated pursuant to this section shall be calculated after
the amount required to be deposited in the Low and Moderate Income
Housing Fund pursuant to Sections 33334.2, 33334.3, and 33334.6 has
been deducted from the total amount of tax increment funds received
by the agency in the applicable fiscal year.
   (2) The payments made pursuant to this section shall be in
addition to any amounts the affected taxing entities receive pursuant
to subdivision (a) of Section 33670. The payments made pursuant to
this section to the affected taxing entities, including the
community, shall be allocated among the affected taxing entities,
including the community if the community elects to receive payments,
in proportion to the percentage share of property taxes each affected
taxing entity, including the community, receives during the fiscal
year the funds are allocated, which percentage share shall be
determined without regard to any amounts allocated to a city, a city
and county, or a county pursuant to Sections 97.68 and 97.70 of the
Revenue and Taxation Code, and without regard to any allocation
reductions to a city, a city and county, a county, a special
district, or a redevelopment agency pursuant to Sections 97.71,
97.72, and 97.73 of the Revenue and Taxation Code and Section
33681.12 and without regard to any revenues that would have been
allocated to the county 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. If a
community elects not to receive payments or is not entitled to
receive payments pursuant to this section, the portion that would
otherwise have been calculated for and paid to the community based on
the community's proportionate share of property tax revenues shall
remain with the agency. The agency shall reduce its payments pursuant
to this section to an affected taxing entity by any amount the
agency has paid, directly or indirectly, pursuant to Section 33445,
33445.5, 33445.6, 33446, or any other provision of law other than
this section for, or in connection with, a public facility owned or
leased by that affected taxing agency, except: (A) any amounts the
agency has paid directly or indirectly pursuant to an agreement with
a taxing entity adopted prior to January 1, 1994; or (B) any amounts
that are unrelated to the specific project area or amendment governed
by this section. The reduction in a payment by an agency to a school
district, community college district, or county office of education,
or for special education, shall be subtracted only from the amount
that otherwise would be available for use by those entities for
educational facilities pursuant to paragraph (4). If the amount of
the reduction exceeds the amount that otherwise would have been
available for use for educational facilities in any one year, the
agency shall reduce its payment in more than one year. For purposes
of calculating the allocation of payments made to affected taxing
entities pursuant to this section, any county 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 or otherwise established is not an affected taxing
entity, and revenues received by local educational agencies from the
county Educational Revenue Augmentation Fund shall not be considered
property taxes received by the local educational agencies.
   (3) If an agency reduces its payment to a school district,
community college district, or county office of education, or for
special education, the agency shall do all of the following:
   (A) Determine the amount of the total payment that would have been
made without the reduction.
   (B) Determine the amount of the total payment without the
reduction that: (i) would have been considered property taxes; and
(ii) would have been available to be used for educational facilities
pursuant to paragraph (4).
   (C) Reduce the amount available to be used for educational
facilities.
   (D) Send the payment to the school district, community college
district, or county office of education, or for special education,
with a statement that the payment is being reduced and including the
calculation required by this subdivision showing the amount to be
considered property taxes and the amount, if any, available for
educational facilities.
   (4) (A) Except as specified in subparagraph (E), of the total
amount paid each year pursuant to this section to school districts,
43.3 percent shall be considered to be property taxes for the
purposes of paragraph (1) of subdivision (h) of Section 42238 of the
Education Code, and 56.7 percent shall not be considered to be
property taxes for the purposes of that section and shall be
available to be used for educational facilities.
   (B) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section to community college
districts, 47.5 percent shall be considered to be property taxes for
the purposes of Section 84751 of the Education Code, and 52.5 percent
shall not be considered to be property taxes for the purposes of
that section and shall be available to be used for educational
facilities.
   (C) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section to county offices of
education, 19 percent shall be considered to be property taxes for
the purposes of Section 2558 of the Education Code, and 81 percent
shall not be considered to be property taxes for the purposes of that
section and shall be available to be used for educational
facilities.
   (D) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section for special education, 19
percent shall be considered to be property taxes for the purposes of
Section 56712 of the Education Code, and 81 percent shall not be
considered to be property taxes for the purposes of that section and
shall be available to be used for education facilities.
   (E) If, pursuant to paragraphs (2) and (3), an agency reduces its
payments to an educational entity, the calculation made by the agency
pursuant to paragraph (3) shall determine the amount considered to
be property taxes and the amount available to be used for educational
facilities in the year the reduction was made.
   (5) Local education agencies that use funds received pursuant to
this section for school facilities shall spend these funds at schools
that are: (A) within the project area, (B) attended by students from
the project area, (C) attended by students generated by projects
that are assisted directly by the redevelopment agency, or (D)
determined by the governing board of a local education agency to be
of benefit to the project area.
   (b) Commencing with the first fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, including the community if
the community elects to receive a payment, an amount equal to 25
percent of the tax increments received by the agency after the amount
required to be deposited in the Low and Moderate Income Housing Fund
has been deducted. In any fiscal year in which the agency receives
tax increments, the community that has adopted the redevelopment
project area may elect to receive the amount authorized by this
subdivision. If the community elects not to receive the amount
authorized by this subdivision, the portion of the payment made
pursuant to this subdivision that would have otherwise been
calculated for and paid to the community based on the community's
proportionate share of property tax revenues shall remain with the
agency.
   (c) Commencing with the 11th fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, other than the community
that has adopted the project, in addition to the amounts paid
pursuant to subdivision (b) and after deducting the amount allocated
to the Low and Moderate Income Housing Fund, an amount equal to 21
percent of an amount, which shall be calculated by applying the tax
rate against the amount by which the assessed value of taxable
property in the redevelopment project, as shown upon the local
assessment roll for the current year, as prepared by the county
assessor and delivered to the auditor pursuant to Section 617 of the
Revenue and Taxation Code, exceeds the first adjusted base year
assessed value of taxable property in the redevelopment project as
established pursuant to this subdivision. The first adjusted base
year assessed value is the assessed value of taxable property in the
project area in the 10th fiscal year in which the agency receives tax
increment revenues as shown on the local assessment roll as prepared
by the county assessor and delivered to the county auditor pursuant
to Section 617 of the Revenue and Taxation Code. For purposes of
calculating the payments made pursuant to this subdivision, the
assessed value of taxable property for the current year and the first
adjusted base year shall not include the value of property included
on the roll of state-assessed property prepared by the State Board of
Equalization pursuant to Chapter 4 (commencing with Section 721) of
Part 2 of Division 1 of the Revenue and Taxation Code, and shall not
include the value of property included on the supplemental roll
prepared pursuant to Chapter 3.5 (commencing with Section 75) of Part
0.5 of Division 1 of the Revenue and Taxation Code. The portion of
the payment made pursuant to this subdivision that would have
otherwise been calculated for and paid to the community based on the
community's proportionate share of property tax revenues shall be
allocated among the other affected taxing entities in accordance with
paragraph (2) of subdivision (a).
   (d) Commencing with the 31st fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, other than the community
that has adopted the project, in addition to the amounts paid
pursuant to subdivisions (b) and (c) and after deducting the amount
allocated to the Low and Moderate Income Housing Fund, an amount
equal to 14 percent of an amount that shall be calculated by applying
the tax rate against the amount by which the assessed value of
taxable property in the redevelopment project, as shown on the local
assessment roll for the current year, as prepared by the county
assessor and delivered to the county auditor pursuant to Section 617
of the Revenue and Taxation Code, exceeds the second adjusted base
year assessed value of taxable property in the redevelopment project
as established pursuant to this subdivision. The second adjusted base
year assessed value is the assessed value of taxable property in the
project area in the 30th fiscal year in which the agency receives
tax increments as shown on the local assessment roll as prepared by
the county assessor and delivered to the county auditor pursuant to
Section 617 of the Revenue and Taxation Code. For purposes of
calculating the payments made pursuant to this subdivision, the
assessed value of taxable property for the current year and the first
adjusted base year shall not include the value of property included
on the roll of state-assessed property prepared by the State Board of
Equalization pursuant to Chapter 4 (commencing with Section 721) of
Part 2 of Division 1 of the Revenue and Taxation Code, and shall not
include the value of property included on the supplemental roll
prepared pursuant to Chapter 3.5 (commencing with Section 75) of Part
0.5 of Division 1 of the Revenue and Taxation Code. The portion of
the payment made pursuant to this subdivision that would have
otherwise been calculated for and paid to the community based on the
community's proportionate share of property tax revenues shall be
allocated among the other affected taxing entities in accordance with
paragraph (2) of subdivision (a).
   (e) (1) Prior to incurring any loans, bonds, or other
indebtedness, except loans or advances from the community, the agency
may subordinate to the loans, bonds or other indebtedness the amount
required to be paid to an affected taxing entity by this section,
provided that the affected taxing entity has approved these
subordinations pursuant to this subdivision.
   (2) At the time the agency requests an affected taxing entity to
subordinate the amount to be paid to it, the agency shall provide the
affected taxing entity with substantial evidence that sufficient
funds will be available to pay both the debt service and the payments
required by this section, when due.
   (3) Within 45 days after receipt of the agency's request, the
affected taxing entity shall approve or disapprove the request for
subordination. An affected taxing entity may disapprove a request for
subordination only if it finds, based upon substantial evidence,
that the agency will not be able to pay the debt payments and the
amount required to be paid to the affected taxing entity. If the
affected taxing entity does not act within 45 days after receipt of
the agency's request, the request to subordinate shall be deemed
approved and shall be final and conclusive.
   (f) (1) The Legislature finds and declares both of the following:
   (A) The payments made pursuant to this section are necessary in
order to alleviate the financial burden and detriment that affected
taxing entities may incur as a result of the adoption of a
redevelopment plan, and payments made pursuant to this section will
benefit redevelopment project areas.
   (B) The payments made pursuant to this section are the exclusive
payments that are required to be made by a redevelopment agency to
affected taxing entities during the term of a redevelopment plan.
   (2) Notwithstanding any other provision of law, a redevelopment
agency shall not be required, either directly or indirectly, as a
measure to mitigate a significant environmental effect or as part of
any settlement agreement or judgment brought in any action to contest
the validity of a redevelopment plan pursuant to Section 33501, to
make any other payments to affected taxing entities, or to pay for
public facilities that will be owned or leased to an affected taxing
entity.
   (g) As used in this section, a "local education agency" is a
school district, a community college district, or a county office of
education.  
  SEC. 2.    Section 33607.7 of the Health and
Safety Code is amended to read:
   33607.7.  (a) This section shall apply to a redevelopment plan
amendment for any redevelopment plans adopted prior to January 1,
1994, that increases the limitation on the number of dollars to be
allocated to the redevelopment agency or that increases, or
eliminates pursuant to paragraph (1) of subdivision (e) of Section
33333.6, the time limit on the establishing of loans, advances, and
indebtedness established pursuant to paragraphs (1) and (2) of
subdivision (a) of Section 33333.6, as those paragraphs read on
December 31, 2001, or that lengthens the period during which the
redevelopment plan is effective if the redevelopment plan being
amended contains the provisions required by subdivision (b) of
Section 33670. However, this section shall not apply to those
redevelopment plans that add new territory.
   (b) If a redevelopment agency adopts an amendment that is governed
by the provisions of this section, it shall pay to each affected
taxing entity either of the following:
   (1) If an agreement exists that requires payments to the taxing
entity, the amount required to be paid by an agreement between the
agency and an affected taxing entity entered into prior to January 1,
1994.
   (2) If an agreement does not exist, the following:
   (A) Commencing with the first fiscal year following the later of
the fiscal year in which the amendment that is governed by the
provisions of this section is adopted or the first adjusted base year
established for purposes of this section and continuing through the
last fiscal year in which the agency receives tax increments, a
redevelopment agency shall pay to the affected taxing entities, other
than the community that has adopted the project, after deducting the
amount allocated to the Low and Moderate Income Housing Fund, an
amount equal to 25 percent of an amount that shall be calculated by
applying the tax rate against the amount by which the assessed value
of taxable property in the redevelopment project, as shown upon the
local assessment roll for the current year, as prepared by the county
assessor and delivered to the county auditor pursuant to Section 617
of the Revenue and Taxation Code, exceeds the first adjusted base
year assessed value of taxable property in the redevelopment project
as established pursuant to this section. The portion of the payment
made pursuant to this subparagraph that would have otherwise been
calculated for and paid to the community based on the community's
proportionate share of property tax revenues shall be paid instead to
the agency.
   (B) Commencing with the 11th fiscal year in which the agency makes
payments to any of the affected taxing entities pursuant to this
paragraph, and continuing through the last fiscal year in which the
agency receives tax increments, a redevelopment agency shall pay to
the affected taxing entities, other than the community that has
adopted the project, in addition to the amounts paid pursuant to
subparagraph (A) and after deducting the amount allocated to the Low
and Moderate Income Housing Fund, an amount equal to 21 percent of an
amount that shall be calculated by applying the tax rate against the
amount by which the assessed value of taxable property in the
redevelopment project, as shown upon the local assessment roll for
the current year, as prepared by the county assessor and delivered to
the county auditor pursuant to Section 617 of the Revenue and
Taxation Code, exceeds the second adjusted base year assessed value
of taxable property in the redevelopment project as established
pursuant to this subparagraph. The portion of the payment made
pursuant to this subparagraph that would have otherwise been
calculated for and paid to the community based on the community's
proportionate share of property tax revenues shall be paid instead to
the agency.
   (C) Commencing with the 31st fiscal year in which the agency makes
payments to any of the affected taxing entities pursuant to this
paragraph, and continuing through the last fiscal year in which the
agency receives tax increments, a redevelopment agency shall pay to
the affected taxing entities, other than the community that has
adopted the project, in addition to the amounts paid pursuant to
subparagraphs (A) and (B) and after deducting the amount allocated to
the Low and Moderate Income Housing Fund, an amount equal to 14
percent of an amount that shall be calculated by applying the tax
rate against the amount by which the assessed value of taxable
property in the redevelopment project, as shown upon the local
assessment roll for the current year, as prepared by the county
assessor and delivered to the county auditor pursuant to Section 617
of the Revenue and Taxation Code, exceeds the third adjusted base
year assessed value of taxable property in the redevelopment project
as established pursuant to this subparagraph. The portion of the
payment made pursuant to this subparagraph that would have otherwise
been calculated for and paid to the community based on the community'
s proportionate share of property tax revenues shall be paid instead
to the agency.
   (D) The amounts shall be allocated between property taxes and
educational facilities according to the appropriate formula in
paragraph (3) of subdivision (a) of Section 33607.5. In determining
the applicable amount under Section 33607.5, the first fiscal year
shall be the first fiscal year following the fiscal year in which the
adjusted base year value is determined.
   (c) (1) The first adjusted base year assessed value shall be the
assessed value of the taxable property in the redevelopment project
in the year in which the limitation being amended would have taken
effect without the amendment or, if more than one limitation is being
amended, the first year in which one or more of the limitations
would have taken effect without the amendment. as shown on the local
assessment roll as prepared by the county assessor and delivered to
the auditor pursuant to Section 617 of the Revenue and Taxation Code.

   (2) The second adjusted base year assessed value shall be the
assessed value of the project area in the 10th fiscal year following
the fiscal year in which the first adjusted base year value is
determined, as shown on the local assessment roll as prepared by the
county assessor and delivered to the county auditor pursuant to
Section 617 of the Revenue and Taxation Code.
   (3) The third adjusted base year assessed value shall be the
assessed value of the project area in the 30th fiscal year following
the fiscal year in which the second adjusted base year value is
determined as shown on the local assessment roll as prepared by the
county assessor and delivered to the county auditor pursuant to
Section 617 of the Revenue and Taxation Code.
   (d) For purposes of calculating the payments made pursuant to this
section, the assessed value of taxable property for the current year
and the first, second, and third adjusted base years shall not
include the value of property included on the roll of state-assessed
property prepared by the State Board of Equalization pursuant to
Chapter 4 (commencing with Section 721) of Part 2 of Division 1 of
the Revenue and Taxation Code, and shall not include the value of
property included on the supplemental roll prepared pursuant to
Chapter 3.5 (commencing with Section 75) of Part 0.5 of Division 1 of
the Revenue and Taxation Code.
   (e)  The agency shall commence making payments pursuant to this
section and pursuant to the terms of the agreement, if applicable,
or, if an agreement does not exist, in the later of the first fiscal
year following the fiscal year in which the first adjusted base year
value is                                            determined or the
first fiscal year following the fiscal year in which the agency
adopts an amendment that is governed by the provisions of this
section. 
   SEC. 3.   SECTION 1.   Section 33684 of
the Health and Safety Code is amended to read:
   33684.  (a) (1) This section shall apply to each redevelopment
project area that, pursuant to a redevelopment plan that contains the
provisions required by Section 33670, meets any of the following:
   (A) Was adopted on or after January 1, 1994, including later
amendments to these redevelopment plans.
   (B) Was adopted prior to January 1, 1994, but amended after
January 1, 1994, to include new territory. For plans amended after
January 1, 1994, only the tax increments from territory added by the
amendment shall be subject to this section.
   (C) Was adopted prior to January 1, 1994, but amended after
January 1, 1994, to increase the limitation on the number of dollars
to be allocated to the agency or that increased, or eliminated,
pursuant to paragraph (1) of subdivision (e) of Section 33333.6, the
time limit on the establishing of loans, advances, and indebtedness
established pursuant to paragraphs (1) and (2) of subdivision (a) of
Section 33333.6, as those paragraphs read on December 31, 2001, or
that lengthened the period during which the redevelopment plan is
effective if the redevelopment plan being amended contains the
provisions required by subdivision (b) of Section 33670.
   (2) This section shall apply to passthrough payments, as required
by Sections 33607.5 and 33607.7, for the 2003-04 to 2008-09,
inclusive, fiscal years. For purposes of this section, a passthrough
payment shall be considered the responsibility of an agency in the
fiscal year the agency receives the tax increment revenue for which
the passthrough payment is required.
   (3) For purposes of this section, "local educational agency" is a
school district, a community college district, or a county office of
education.
   (b) On or before October 1, 2008, each agency shall submit a
report to the county auditor and to each affected taxing entity that
describes each project area, including its location, purpose, date
established, date or dates amended, and statutory and contractual
passthrough requirements. The report shall specify, by year, for each
project area all of the following:
   (1) Gross tax increment received between July 1, 2003, and June
30, 2008, that is subject to a passthrough payment pursuant to
Sections 33607.5 and 33607.7, and accumulated gross tax increments
through June 30, 2003.
   (2) Total passthrough payments to each taxing entity that the
agency deferred pursuant to a subordination agreement approved by the
taxing agency under subdivision (e) of Section 33607.5 and the dates
these deferred payments will be made.
   (3) Total passthrough payments to each taxing entity that the
agency was responsible to make between July 1, 2003, and June 30,
2008, pursuant to Sections 33607.5 and 33607.7, excluding payments
identified in paragraph (2).
   (4) Total passthrough payments that the agency disbursed to each
taxing entity between July 1, 2003, and June 30, 2008, pursuant to
Sections 33607.5 and 33607.7.
   (5) Total sums reported in paragraph (4) for each local
educational agency that are considered to be property taxes under the
provisions of paragraph (4) of subdivision (a) of Sections 33607.5
and 33607.7.
   (6) Total outstanding payment obligations to each taxing entity as
of June 30, 2008. This amount shall be calculated by subtracting the
amounts reported in paragraph (4) from paragraph (3) and reporting
any positive sum.
   (7) Total outstanding overpayments to each taxing entity as of
June 30, 2008. This amount shall be calculated by subtracting the
amounts reported in paragraph (3) from paragraph (4) and reporting
any positive sum.
   (8) The dates on which the agency made payments identified in
paragraph (6) or intends to make the payments identified in paragraph
(6).
   (9) A revised estimate of the agency's total outstanding
passthrough payment obligation to each taxing agency pursuant to
paragraph (6) of subdivision (b) and paragraph (6) of subdivision (c)
and the dates on which the agency intends to make these payments.
   (c) On or before October 1, 2009, each agency shall submit a
report to the county auditor and to each affected taxing entity that
describes each project area, including its location, purpose, date
established, date or dates amended, and statutory and contractual
passthrough requirements. The report shall specify, by year, for each
project area all of the following:
   (1) Gross tax increment received between July 1, 2008, and June
30, 2009, that is subject to a passthrough payment pursuant to
Sections 33607.5 and 33607.7.
   (2) Total passthrough payments to each taxing entity that the
agency deferred pursuant to a subordination agreement approved by the
taxing entity under subdivision (e) of Section 33607.5 and the dates
these deferred payments will be made.
   (3) Total passthrough payments to each taxing entity that the
agency was responsible to make between July 1, 2008, and June 30,
2009, pursuant to Sections 33607.5 and 33607.7, excluding payments
identified in paragraph (2).
   (4) Total passthrough payments that the agency disbursed to each
taxing entity between July 1, 2008, and June 30, 2009, pursuant to
Sections 33607.5 and 33607.7.
   (5) Total sums reported in paragraph (4) for each local
educational agency that are considered to be property taxes under the
provisions of paragraph (4) of subdivision (a) of Sections 33607.5
and 33607.7.
   (6) Total outstanding payment obligations to each taxing entity as
of June 30, 2009. This amount shall be calculated by subtracting the
amounts reported in paragraph (4) from paragraph (3) and reporting
any positive sum.
   (7) Total outstanding overpayments to each taxing entity as of
June 30, 2009. This amount shall be calculated by subtracting the
amounts reported in paragraph (3) from paragraph (4) and reporting
any positive sum.
   (8) The dates on which the agency made payments identified in
paragraph (6) or intends to make the payments identified in paragraph
(6).
   (d) If an agency reports pursuant to paragraph (6) of subdivision
(b) or paragraph (6) of subdivision (c ) that it has an outstanding
passthrough payment obligation to any taxing entity, the agency shall
submit annual updates to the county auditor on October 1 of each
year until such time as the county auditor notifies the agency in
writing that the agency's outstanding payment obligations have been
fully satisfied. The report shall contain both of the following:
   (1) A list of payments to each taxing agency and to the
Educational Revenue Augmentation Fund pursuant to subdivision (j)
that the agency disbursed after the agency's last update filed
pursuant to this subdivision or, if no update has been filed, after
the agency's submission of the reports required pursuant to
subdivisions (b) and (c ). The list of payments shall include only
those payments that address obligations identified pursuant to
paragraph (6) of subdivision (b) and paragraph (6) of subdivision (c
). The update shall specify the date on which each payment was
disbursed.
   (2) A revised estimate of the agency's total outstanding
passthrough payment obligation to each taxing agency pursuant to
paragraph (6) of subdivision (b) and paragraph (6) of subdivision (c
) and the dates on which the agency intends to make these payments.
   (e) The county auditor shall review each agency's reports
submitted pursuant to subdivisions (b) and (c) and any other relevant
information to determine whether the county auditor concurs with the
information included in the reports.
   (1) If the county auditor concurs with the information included in
a report, the county auditor shall issue a finding of concurrence
within 45 days.
   (2) If the county auditor does not concur with the information
included in a report or considers the report to be incomplete, the
county auditor shall return the report to the agency within 45 days
with information identifying the elements of the report with which
the county auditor does not concur or considers to be incomplete. The
county auditor shall provide the agency at least 15 days to respond
to concerns raised by the county auditor regarding the information
contained in the report. An agency may revise a report that has not
received a finding of concurrence and resubmit it to the county
auditor.
   (3) If an agency and county auditor do not agree regarding the
passthrough requirements of Sections 33607.5 and 33607.7, an agency
may submit a report pursuant to subdivisions (b) and (c) and a
statement of dispute identifying the issue needing resolution.
   (4) An agency may amend a report for which the county auditor has
issued a finding of concurrence and resubmit the report pursuant to
paragraphs (1), (2), and (3) if any of the following apply:
   (A) The county auditor and agency agree that an issue identified
in the agency's statement of dispute has been resolved and the agency
proposes to modify the sections of the report to conform with the
resolution of the statement of dispute.
   (B) The county auditor and agency agree that the amount of gross
tax increment or the amount of a passthrough payment to a taxing
entity included in the report is not accurate.
   (5) The Controller may revoke a finding of concurrence and direct
the agency to resubmit a report to the county auditor pursuant to
paragraphs (1), (2), and (3) if the Controller finds significant
errors in a report.
   (f) On or before December 15, 2008, and annually thereafter
through 2014, the county auditor shall submit a report to the
Controller that includes all of the following:
   (1) The name of each redevelopment project area in the county for
which an agency must submit a report pursuant to subdivision (b) or
(c) and information as to whether the county auditor has issued a
finding of concurrence regarding the report.
   (2) A list of the agencies for which the county auditor has issued
a finding of concurrence for all project areas identified in
paragraph (1).
   (3) A list of agencies for which the county auditor has not issued
a finding of concurrence for all project areas identified in
paragraph (1).
   (4) Using information applicable to agencies listed in paragraph
(2), the county auditor shall report all of the following:
   (A) The total sums reported by each redevelopment agency related
to each taxing entity pursuant to paragraphs (1) to (7), inclusive,
of subdivision (b) and, on or after December 15, 2009, pursuant to
paragraphs (1) to (7), inclusive, of subdivision (c).
   (B) The names of agencies that have outstanding passthrough
payment obligations to a local educational agency that exceed the
amount of outstanding passthrough payments to the local educational
agency.
   (C) Summary information regarding agencies' stated plans to pay
the outstanding amounts identified in paragraph (6) of subdivision
(b) and paragraph (6) of subdivision (c) and the actual amounts that
have been deposited into the county Educational Revenue Augmentation
Fund pursuant to subdivision (j).
   (D) All unresolved statements of dispute filed by agencies
pursuant to paragraph (3) of subdivision (e) and the county auditor's
analyses supporting the county auditor's conclusions regarding the
issues under dispute.
   (g) (1) On or before February 1, 2009, and annually thereafter
through 2015, the Controller shall submit a report to the Legislative
Analyst's Office and the Department of Finance and provide a copy to
the Board of Governors of the California Community Colleges. The
report shall provide information as follows:
   (A) Identify agencies for which the county auditor has issued a
finding of concurrence for all reports required under subdivisions
(b) and (c).
   (B) Identify agencies for which the county auditor has not issued
a finding of concurrence for all reports required pursuant to
subdivision (b) and all reports required pursuant to subdivision (c)
or for which a finding of concurrence has been withdrawn by the
Controller.
   (C) Summarize the information reported in paragraph (4) of
subdivision (f). This summary shall identify, by local educational
agency and by year, the total amount of passthrough payments that
each local educational agency received, was entitled to receive,
subordinated, or that has not yet been paid, and the portion of these
amounts that are considered to be property taxes for purposes of
Sections 2558, 42238, and 84751 of the Education Code. The report
shall identify, by agency, the amounts that have been deposited to
the county Educational Revenue Augmentation Fund pursuant to
subdivision (j).
   (D) Summarize the statements of dispute. The Controller shall
specify the status of these disputes, including whether the
Controller or other state entity has provided instructions as to how
these disputes should be resolved.
   (E) Identify agencies that have outstanding passthrough payment
liabilities to a local educational agency that exceed the amount of
outstanding passthrough overpayments to the local educational agency.

   (2) On or before February 1, 2009, and annually thereafter through
2015, the Controller shall submit a report to the State Department
of Education and the Board of Governors of the California Community
Colleges. The report shall identify, by local educational agency and
by year of receipt, the total amount of passthrough payments that the
local educational agency received from redevelopment agencies listed
in subparagraph (A) of paragraph (1).
   (h) (1) On or before April 1, 2009, and annually thereafter until
April 1, 2015, the State Department of Education shall do all of the
following:
   (A) Calculate for each school district for the 2003-04 to 2007-08,
inclusive, fiscal years the difference between 43.3 percent of the
amount reported pursuant to paragraph (2) of subdivision (g) and the
amount subtracted from each school district's apportionment pursuant
to paragraph (6) of subdivision (h) of Section 42238 of the Education
Code.
   (B) Calculate for each county superintendent of schools for the
2003-04 to 2007-08, inclusive, fiscal years the difference between 19
percent of the amount reported pursuant to paragraph (2) of
subdivision (g) and the amount received pursuant to Sections 33607.5
and 33607.7 and subtracted from each county superintendent of schools
apportionment pursuant to subdivision (c) of Section 2558 of the
Education Code.
   (C) Notify each school district and county superintendent of
schools for which any amount calculated in subparagraph (A) or (B) is
nonzero as to the reported change and its resulting impact on
apportionments. After April 1, 2009, however, the department shall
not notify a school district or county superintendent of schools if
the amount calculated in subparagraph (A) or (B) is the same amount
as the department calculated in the preceding year.
   (2) On or before April 1, 2010, and annually thereafter until
April 1, 2015, the State Department of Education shall do all of the
following:
   (A) Calculate for each school district for the 2008-09 fiscal year
the difference between 43.3 percent of the amount reported pursuant
to paragraph (2) of subdivision (g) and the amount subtracted from
each school district's apportionment pursuant to paragraph (6) of
subdivision (h) of Section 42238 of the Education Code.
   (B) Calculate for each county superintendent of schools for the
2008-09 fiscal year the difference between 19 percent of the amount
reported pursuant to paragraph (2) of subdivision (g) and the amount
received pursuant to Sections 33607.5 and 33607.7 and subtracted from
each county superintendent of schools apportionment pursuant to
subdivision (c) of Section 2558 of the Education Code.
   (C) Notify each school district and county superintendent of
schools for which any amount calculated in subparagraph (A) or (B) is
nonzero as to the reported change and its resulting impact on
revenue limit apportionments. After April 1, 2010, however, the
department shall not notify a school district or county
superintendent of schools if the amount calculated in subparagraph
(A) or (B) is the same amount as the department calculated in the
preceding year.
   (3) For the purposes of Article 3 (commencing with Section 41330)
of Chapter 3 of Part 24 of Division 3 of the Education Code, the
amounts reported to each school district and county superintendent of
schools in the notification required pursuant to subparagraph (C) of
paragraph (1) and subparagraph (C) of paragraph (2) shall be deemed
to be apportionment significant audit exceptions and the date of
receipt of that notification shall be deemed to be the date of
receipt of the final audit report that includes those audit
exceptions.
   (4) On or before March 1, 2009, and annually thereafter until
March 1, 2015, the Board of Governors of the California Community
Colleges shall do all of the following:
   (A) Calculate for each community college district for the 2003-04
to 2007-08, inclusive, fiscal years the difference between 47.5
percent of the amount reported pursuant to paragraph (2) of
subdivision (g) and the amount subtracted from each district's total
revenue owed pursuant to subdivision (d) of Section 84751 of the
Education Code.
   (B) Notify each community college district for which any amount
calculated in subparagraph (A) is nonzero as to the reported change
and its resulting impact on apportionments. After March 1, 2009,
however, the board shall not notify a school district or county
superintendent of schools if the amount calculated in subparagraph
(A) is the same amount as the board calculated in the preceding year.

   (5) On or before March 1, 2010, and annually thereafter until
March 1, 2015, the Board of Governors of the California Community
Colleges shall do all of the following:
   (A) Calculate for each community college district for the 2003-04
to 2007-08, inclusive, fiscal years the difference between 47.5
percent of the amount reported pursuant to paragraph (2) of
subdivision (g) and the amount subtracted from each district's total
revenue owed pursuant to subdivision (d) of Section 84751 of the
Education Code.
   (B) Notify each community college district for which any amount
calculated in subparagraph (A) is nonzero as to the reported change
and its resulting impact on revenue apportionments. After March 1,
2010, however, the board shall not notify a community college
district if the amount calculated in subparagraph (A) is the same
amount as the board calculated in the preceding year.
   (6) A community college district may submit documentation to the
Board of Governors of the California Community Colleges showing that
all or part of the amount reported to the district pursuant to
subparagraph (B) of paragraph (4) and subparagraph (B) of paragraph
(5) was previously reported to the California Community Colleges for
the purpose of the revenue level calculations made pursuant to
Section 84751 of the Education Code. Upon acceptance of the
documentation, the board of governors shall adjust the amounts
calculated in paragraphs (4) and (5) accordingly.
   (7) The Board of Governors of the California Community Colleges
shall make corrections in any amounts allocated in any fiscal year to
each community college district for which any amount calculated in
paragraphs (4) and (5) is nonzero so as to account for the changes
reported pursuant to paragraph (4) of subdivision (b) and paragraph
(4) of subdivision (c). The board may make the corrections over a
period of time, not to exceed five years.
   (i) (1) After February 1, 2009, for an agency listed on the most
recent Controller's report pursuant to subparagraph (B) or (E) of
paragraph (1) of subdivision (g), all of the following shall apply:
   (A) The agency shall be prohibited from adding new project areas
or expanding existing project areas. For purposes of this paragraph,
"project area" has the same meaning as in Sections 33320.1 to
33320.3, inclusive, and Section 33492.3.
   (B) The agency shall be prohibited from issuing new bonds, notes,
interim certificates, debentures, or other obligations, whether
funded, refunded, assumed, or otherwise, pursuant to Article 5
(commencing with Section 33640).
   (C) The agency shall be prohibited from encumbering any funds or
expending any moneys derived from any source, except that the agency
may encumber funds and expend funds to pay, if any, all of the
following:
   (i) Bonds, notes, interim certificates, debentures, or other
obligations issued by an agency before the imposition of the
prohibition in subparagraph (B) whether funded, refunded, assumed, or
otherwise, pursuant to Article 5 (commencing with Section 33460) of
this chapter.
   (ii) Loans or moneys advanced to the agency, including, but not
limited to, loans from federal, state, local agencies, or a private
entity.
   (iii) Contractual obligations that, if breached, could subject the
agency to damages or other liabilities or remedies.
   (iv) Obligations incurred pursuant to Section 33445.
   (v) Indebtedness incurred pursuant to Section 33334.2 or 33334.6.
   (vi) Obligations incurred pursuant to Section 33401.
   (vii) An amount, to be expended for the monthly operation and
administration of the agency, that may not exceed 75 percent of the
average monthly amount spent for those purposes in the fiscal year
preceding the fiscal year in which the agency was first listed on the
Controller's report pursuant to subparagraph (B) or (E) of paragraph
(1) of subdivision (g).
   (2) After February 1, 2009, an agency identified in subparagraph
(B) or (E) of paragraph (1) of subdivision (g) shall incur interest
charges on any passthrough payment that is made to a local
educational agency more than 60 days after the close of the fiscal
year in which the passthrough payment was required. Interest shall be
charged at a rate equal to 150 percent of the current Pooled Money
Investment Account earnings annual yield rate and shall be charged
for the period beginning 60 days after the close of the fiscal year
in which the passthrough payment was due through the date that the
payment is made.
   (3) The Controller, with the concurrence of the Director of
Finance, may waive the provisions of paragraphs (1) and (2) for a
period of up to 12 months if the Controller determines all of the
following:
   (A) The county auditor has identified the agency in its most
recent report issued pursuant to paragraph (2) of subdivision (f) as
an agency for which the auditor has issued a finding of concurrence
for all reports required pursuant to subdivisions (b) and (c).
   (B) The agency has filed a statement of dispute on an issue or
issues that, in the opinion of the Controller, are likely to be
resolved in a manner consistent with the agency's position.
   (C) The agency has made passthrough payments to local educational
agencies and the county Educational Revenue Augmentation Fund, or has
had funds previously withheld by the auditor, in amounts that would
satisfy the agency's passthrough payment requirements to local
educational agencies if the issue or issues addressed in the
statement of dispute were resolved in a manner consistent with the
agency's position.
   (D) The agency would sustain a fiscal hardship if it made
passthrough payments to local educational agencies and the county
Educational Revenue Augmentation Fund in the amounts estimated by the
county auditor.
   (j) Notwithstanding any other provision of law, if an agency
report submitted pursuant to subdivision (b) or (c) indicates
outstanding payment obligations to a local educational agency, the
agency shall make these outstanding payments as follows:
   (1) Of the outstanding payments owed to school districts,
including any interest payments pursuant to paragraph (2) of
subdivision (i), 43.3 percent shall be deposited in the county
Educational Revenue Augmentation Fund and the remainder shall be
allocated to the school district or districts.
   (2) Of the outstanding payments owed to community college
districts, including any interest payments pursuant to paragraph (2)
of subdivision (i), 47.5 percent shall be deposited in the county
Educational Revenue Augmentation Fund and the remainder shall be
allocated to the community college district or districts.
   (3) Of the outstanding payments owed to county offices of
education, including any interest payments pursuant to paragraph (2)
of subdivision (i), 19 percent shall be deposited in the county
Educational Revenue Augmentation Fund and the remainder shall be
allocated to the county office of education.
   (k) (1) This section shall not be construed to increase any
allocations of excess, additional, or remaining funds that would
otherwise have been allocated to cities, counties, cities and
counties, or special districts pursuant to clause (i) of subparagraph
(B) of paragraph (4) of subdivision (d) of Section 97.2 of, clause
(i) of subparagraph (B) of paragraph (4) of subdivision (d) of
Section 97.3 of, or Article 4 (commencing with Section 98) of Chapter
6 of Part 0.5 of Division 1 of, the Revenue and Taxation Code had
this section not been enacted.
   (2) Notwithstanding any other provision of law, no funds deposited
in the county Educational Revenue Augmentation Fund pursuant to
subdivision (j) shall be distributed to a community college district.

   (l) A county may require an agency to reimburse the county for any
expenses incurred by the county in performing the services required
by this section.
   SEC. 4.   SEC. 2.   The amendment of
 Sections 33607.5, 33607.7, and  Section 
33684 of the Health and Safety Code made by this act does not
constitute a change in, but is declaratory of, existing law.