BILL NUMBER: SB 530	CHAPTERED
	BILL TEXT

	CHAPTER  170
	FILED WITH SECRETARY OF STATE  AUGUST 23, 2010
	APPROVED BY GOVERNOR  AUGUST 23, 2010
	PASSED THE SENATE  MAY 14, 2009
	PASSED THE ASSEMBLY  AUGUST 5, 2010
	AMENDED IN SENATE  APRIL 28, 2009

INTRODUCED BY   Senator Dutton

                        FEBRUARY 27, 2009

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


	LEGISLATIVE COUNSEL'S DIGEST


   SB 530, 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 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.



THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  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. 2.  The amendment of Section 33684 of the Health and Safety
Code made by this act does not constitute a change in, but is
declaratory of, existing law.