BILL NUMBER: ABX1 27	CHAPTERED
	BILL TEXT

	CHAPTER  6
	FILED WITH SECRETARY OF STATE  JUNE 29, 2011
	APPROVED BY GOVERNOR  JUNE 28, 2011
	PASSED THE SENATE  JUNE 15, 2011
	PASSED THE ASSEMBLY  JUNE 15, 2011
	AMENDED IN SENATE  JUNE 15, 2011
	AMENDED IN SENATE  JUNE 14, 2011

INTRODUCED BY   Assembly Member Blumenfield

                        MAY 19, 2011

   An act to add Part 1.9 (commencing with Section 34192) to Division
24 of the Health and Safety Code, relating to redevelopment, and
making an appropriation therefor, to take effect immediately, bill
related to the budget.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 27, Blumenfield. Voluntary Alternative Redevelopment Program.
   The Community Redevelopment Law authorizes the establishment of
redevelopment agencies in communities to address the effects of
blight, as defined, in those communities and requires agencies to
prepare, or cause to be prepared, and to approve a redevelopment plan
for each project area.
   This bill would, notwithstanding specified law, upon the enactment
of specified legislation concerning redevelopment, establish a
voluntary alternative redevelopment program whereby a redevelopment
agency would be authorized to continue to exist upon the enactment of
an ordinance by the community to comply with the bill's provisions.
The bill would require the city or county that created a
redevelopment agency to notify the county auditor-controller, the
Controller, and the Department of Finance on or before November 1,
2011, that the community will comply with the bill's provisions. The
bill would require a participating city or county to make specified
remittances to the county auditor-controller, who shall allocate the
remittances for deposit into a Special District Allocation Fund, for
specified allocation to certain special districts, and into the
county Educational Revenue Augmentation Fund, as prescribed. The bill
would authorize the city or county to enter into an agreement with
the redevelopment agency in that jurisdiction, whereby the
redevelopment agency would transfer a portion of its tax increment to
the city or county for the purpose of financing certain activities
within the redevelopment area, as specified. The bill would impose
specified sanctions on a city or county that fails to make the
required remittances, as determined by the Director of Finance. This
bill would authorize the county auditor-controller to charge a fee
that does not exceed the reasonable costs to the county
auditor-controller to implement the provisions of this bill.
   This bill would authorize a community to establish a new
redevelopment agency only after the debt obligations of the former
redevelopment agency have been retired and the community satisfies
the provisions of this bill, as specified.
   The bill would appropriate $500,000 from the General Fund to the
Department of Finance for the costs to comply with the bill.
   The California Constitution authorizes the Governor to declare a
fiscal emergency and to call the Legislature into special session for
that purpose. Governor Schwarzenegger issued a proclamation
declaring a fiscal emergency, and calling a special session for this
purpose, on December 6, 2010. Governor Brown issued a proclamation on
January 20, 2011, declaring and reaffirming that a fiscal emergency
exists and stating that his proclamation supersedes the earlier
proclamation for purposes of that constitutional provision.
   This bill would state that it addresses the fiscal emergency
declared and reaffirmed by the Governor by proclamation issued on
January 20, 2011, pursuant to the California Constitution.
   This bill would declare that it is to take effect immediately as a
bill providing for appropriations related to the Budget Bill.
   Appropriation: yes.


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

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Section 16 of Article XVI of the California Constitution
delegates authority to the Legislature to establish redevelopment
agencies by statute. The Legislature retains the authority to
dissolve redevelopment agencies by statute or to establish conditions
for the continued operation of redevelopment agencies that apply to
communities on a voluntary basis.
   (b) The diversion of over five billion dollars ($5,000,000,000) in
property tax revenue to redevelopment agencies each year has made it
increasingly difficult for the state to meet its funding obligations
to the schools.
   (c) The establishment of voluntary conditions on communities to
allow for the continuation of redevelopment agencies provides a way
to stabilize school funding in communities and allow redevelopment
agencies to continue to make investments to remediate blight and
create jobs in their communities.
  SEC. 2.  Part 1.9 (commencing with Section 34192) is added to
Division 24 of the Health and Safety Code, to read:

      PART 1.9.  Alternative Voluntary Redevelopment Program


      CHAPTER 1.  APPLICATION OF THIS PART


   34192.  Notwithstanding any provision of law, if a city or county
that includes a redevelopment agency participates in the program
established pursuant to this part and complies with all requirements
and obligations contained in this part, a redevelopment agency
included in that city or county shall be exempt from Part 1.8
(commencing with Section 34161), Part 1.85 (commencing with Section
34170), and any other conflicting provision of law.
   34192.5.  (a) This part shall be operative only if Part 1.8
(commencing with Section 34161) and Part 1.85 (commencing with
Section 34170) are enacted and operative at the time the act adding
this part takes effect.
   (b) To the extent that Part 1.8 (commencing with Section 34161) or
Part 1.85 (commencing with Section 34170) conflict with this part,
the provisions of this part shall control.
      CHAPTER 2.  CONTINUED AGENCY EXISTENCE


   34193.  (a) Notwithstanding Part 1.8 (commencing with Section
34161), Part 1.85 (commencing with Section 34170), or any other law,
a redevelopment agency may continue to exist and carry out the
provisions of the Community Redevelopment Law (Part 1 (commencing
with Section 33000)) only upon the enactment of an ordinance enacted
by the community to comply with this part on or before November 1,
2011, except as provided in clause (ii) of subparagraph (L) of
paragraph (2) of subdivision (b) of Section 34194.
   (b) If a city or county intends to enact the ordinance provided
for in this section after October 1, 2011, it shall indicate that
intention by adopting a nonbinding resolution of intent to that
effect prior to October 1, 2011, and notify the Department of
Finance, the Controller, and the county auditor before October 1,
2011, concerning the resolution. This action shall delay the
dissolution of a redevelopment agency until November 1, 2011. If a
city or county does not enact an ordinance pursuant to this part,
Part 1.8 (commencing with Section 34161) and Part 1.85 (commencing
with Section 34170) shall apply, as applicable, to a redevelopment
agency.
   34193.1.  On or before November 1, 2011, a city or county that has
created a redevelopment agency and enacted an ordinance pursuant to
Section 34193 shall notify the county auditor-controller, the
Controller, and the Department of Finance that the city or county
agree to comply with the provisions of this part.
   34193.2.  The community remittances that are made under this part
are intended to benefit the community by ensuring improved
educational and other community services in the areas served by the
redevelopment agency.
   (a) A city or county's agreement to remit revenues to school
entities and special districts under this part is a precondition to
continue redevelopment pursuant to this part.
   (b) Participation in the alternative voluntary redevelopment
program shall also constitute an agreement, on the part of a city or
county, that it assigns its rights to any payments owed from a
redevelopment agency, including, but not limited to, payments from
loan agreements, to the state, in the event that the city or county
fails to make a remittance required pursuant to this part.
   34193.3.  The actions of any redevelopment agency of a
participating city or county that has enacted an ordinance pursuant
to Section 34193, taken after the date of the adoption of that
ordinance, and which are subject to the provisions of Sections 33500
or 33501, shall not be subject to subdivision (c) or (d) of Section
33500 or of subdivision (c) of Section 33501. Instead, these actions
shall be subject to the other provisions of those sections
notwithstanding that the actions occurred after January 1, 2011.
      CHAPTER 3.  COMMUNITY REMITTANCES


   34194.  (a) A city or county that includes a redevelopment agency
that has complied with this part shall make the remittances required
by this section to the county auditor-controller. The county
auditor-controller shall deposit an amount as determined by Section
34194.4 into the Special District Allocation Fund, and remaining
funds shall be remitted 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.
   (b) (1) For the 2011-12 fiscal year, a city or county shall remit
an amount equal to the amount determined for the redevelopment
agencies in that city or county pursuant to subparagraph (I) of
paragraph (2).
   (2) Utilizing the Controller's redevelopment agency 2008-09 annual
report, the Director of Finance shall do all of the following for
the 2011-12 fiscal year:
   (A) Determine the net tax increment apportioned to each
redevelopment agency pursuant to Section 33670, calculated as a
redevelopment agency's tax increment revenue, excluding any amounts
apportioned to affected taxing agencies pursuant to Section 33401,
33492.140, 33607, 33607.5, 33607.7, or 33676, and excluding all
amounts used to pay for tax allocation bonds and interest payments
specified in the Controller's report, in the 2008-09 fiscal year.
   (B) Determine the net tax increment apportioned to all
redevelopment agencies pursuant to Section 33670, calculated as all
redevelopment agencies' tax increment revenue, excluding any amounts
apportioned to affected taxing agencies pursuant to Section 33401,
33492.140, 33607, 33607.5, 33607.7, or 33676, and excluding all
amounts used to pay for tax allocation bonds and interest payments
specified in the Controller's report, in the 2008-09 fiscal year.
   (C) Determine each redevelopment agency's proportionate share of
statewide net tax increment by dividing the amount determined
pursuant to subparagraph (A) by the amount determined pursuant to
subparagraph (B).
   (D) Determine a proportionate amount of net tax increment for each
redevelopment agency by multiplying one billion seven hundred
million dollars ($1,700,000,000) by the proportionate share
determined pursuant to subparagraph (C).
   (E) Determine the total amount of property tax revenue apportioned
to each redevelopment agency pursuant to Section 33670, calculated
as a redevelopment agency's tax increment revenue, including any
amounts apportioned to affected taxing agencies pursuant to Section
33401, 33492.140, 33607, 33607.5, 33607.7, or 33676, and including
all amounts used for payments of tax allocation bonds and interest
payments specified in the Controller's report, in the 2008-09 fiscal
year.
   (F) Determine the total amount of property tax revenue apportioned
to all redevelopment agencies pursuant to Section 33670, calculated
as all redevelopment agencies' tax increment revenue, including any
amounts apportioned to affected taxing agencies pursuant to Section
33401, 33492.140, 33607, 33607.5, 33607.7, or 33676, and including
all amounts used for payments of tax allocation bonds and interest
payments specified in the Controller's report, in the 2008-09 fiscal
year.
   (G) Determine each redevelopment agency's proportionate share of
property tax revenue by dividing the amount determined pursuant to
subparagraph (E) by the amount determined pursuant to subparagraph
(F).
   (H) Determine a proportionate amount of property tax revenue for
each redevelopment agency by multiplying one billion seven hundred
million dollars ($1,700,000,000) by the proportionate share
determined pursuant to subparagraph (G).
   (I) Average the amounts determined pursuant to subparagraphs (D)
and (H).
   (J) On or before August 1, 2011, notify each city or county of the
amount determined pursuant to subparagraph (I) for a redevelopment
agency of that city or county.
   (K) Notify each county auditor-controller of the amounts
determined pursuant to subparagraph (I) for each agency in his or her
county.
   (L) (i) After receiving the notification from the Director of
Finance pursuant to subparagraph (J), a city or county may appeal the
amount of remittance to the director on or before August 15, 2011,
on the basis that the information in the Controller's report was in
error or that the percentage of tax increment necessary to pay for
tax allocation bonds and interest payments has increased by 10
percent or more over the percentage calculated pursuant to the
Controller's redevelopment agency 2008-09 annual report. Any appeal
shall include documentation that clearly and convincingly establishes
the basis of the appeal and the amount of the claimed discrepancy.
   (ii) The director may reject the appeal or approve it, in whole or
in part, at the director's sole discretion. The director shall
notify the city or county and the county auditor-controller of the
decision on the appeal by September 15, 2011. However, the director
may extend the decision deadline, at the director's discretion and
upon notification of the city or county and the county
auditor-controller, until October 15, 2011, in which case the date by
which the city or county must enact the ordinance required by this
part shall be extended until December 1, 2011. If the director
determines that the percentage of tax increment necessary to pay for
tax allocation bonds or interest payments has increased by 10 percent
or more, as described by this subparagraph, then the director shall
recalculate the remittance amount for the city or county identified
in subparagraph (I) by reducing the amount in subparagraph (D) to
reflect any percentage increase that is in excess of 10 percent.
   (c) For the 2012-13 fiscal year and each fiscal year thereafter a
participating community shall remit an amount equal to the sum of the
amounts specified in paragraphs (1) and (2):
   (1) For a community subject to a remittance amount determined for
the 2011-12 fiscal year pursuant to subdivision (b), a base payment
equal to the base payment in the prior fiscal year, increased by the
percentage growth or decreased by the percentage reduction, as
appropriate, from the prior fiscal year in the total adjusted amount
of property tax increment revenue allocated to the redevelopment
agency of the community pursuant to Section 33670 with respect to
project areas that were in existence, and for which the agency
received allocations of tax increment revenue, during the 2011-12
fiscal year.
   (A) For the 2012-13 fiscal year, the base payment in the prior
fiscal year shall be the remittance amount determined pursuant to
subdivision (b) for the 2011-12 fiscal year multiplied by the ratio
of four hundred million dollars ($400,000,000) to one billion seven
hundred million dollars ($1,700,000,000).
   (B) The "adjusted amount of property tax increment revenue"
described in this paragraph means an amount of property tax increment
in any fiscal year for a project area that is calculated by
subtracting the amount of any debt service or other payments for new
debt issuances or obligations, as provided in paragraph (2), from the
total amount of property tax increment revenue allocated in that
year to the agency with respect to that project area.
   (2) (A) An amount equivalent to 80 percent, or any lesser amount
as may be authorized by law for qualifying projects, of the total net
school share, as described in subparagraph (B), of debt service or
other payments made in that fiscal year for new debt or obligations
issued or incurred on or after November 1, 2011, as shown on the
agency's statement of indebtedness, excluding any debts issued or
incurred on behalf of the agency's Low and Moderate Income Housing
Fund, established pursuant to Section 33334.3. "New debt" means debt
that is displayed on a statement of indebtedness filed after a
statement of indebtedness filed on October 1, 2011, that was not
displayed on the statement of indebtedness filed on October 1, 2011.
   (B) For the purpose of subparagraph (A), the net school share
shall be the school share of the property tax increment revenues,
less any passthrough payments to school entities, that would have
been received in the absence of redevelopment by school entities, as
defined in subdivision (f) of Section 95 of the Revenue and Taxation
Code, in the jurisdictional territory of the redevelopment agency,
including, but not limited to, the amounts specified in Section 97.68
and 97.70 of the Revenue and Taxation Code.
   (C) It is the intent of the Legislature to enact legislation in
the 2011-12 session to prescribe a schedule of reductions in the
community remittance, described in subparagraph (A), that will
authorize payments of less than 80 percent of the school share of
property taxes to the Educational Revenue Augmentation Fund. The
reductions shall apply for bonds issued for the purpose of funding
projects that advance the achievement of statewide goals with respect
to transportation, housing, economic development and job creation,
environmental protection and remediation, and climate change,
including, but not limited to, projects that are consistent with the
Sustainable Communities Strategies developed pursuant to Chapter 4.2
(commencing with Section 21155) of Division 13 of the Public
Resources Code.
   (3) On or before November 1 of each year, the city or county shall
notify the Department of Finance, the Controller, and the county
auditor-controller of the remittance amount required by the
calculations described in this subdivision. The Director of Finance,
the Controller, and the county auditor-controller shall each be
authorized to audit and verify the remittance amount that is
determined by the city or county. The county auditor-controller,
based upon an audit conducted by that office, or upon notification by
the Director of Finance or the Controller based on an audit
conducted by those offices, that determines that the city or county
has miscalculated its remittance payment amount, shall adjust the
amount of the next remittance payment that shall be paid by the city
or county to reflect the correct amount of payment previously owed by
the city or county as identified in that audit, as required by this
subdivision.
   (d) (1) A city or county shall pay one-half of the total
remittance amount, as calculated pursuant to subdivision (b) or (c),
on or before January 15 of each year and shall pay the remaining
one-half of the remittance amount on or before May 15 of each year.
   (2) If a city or county fails to make its remittance payment as
required by paragraph (1), the county auditor-controller shall notify
the Director of Finance of the failure to make the payment within 30
days. Upon receipt of the notification, the Director of Finance may
determine that the redevelopment agency in the city or county shall
be subject to the requirements of Part 1.8 (commencing with Section
34161) and Part 1.85 (commencing with Section 34170) as described in
Section 34195.
   34194.1.  (a) A city or county making remittances to the county
auditor-controller pursuant to Section 34194 or 34194.5 may use any
available funds not otherwise obligated for other uses.
   (b) In the 2011-12 fiscal year, the total amount paid pursuant to
this chapter to school districts, county offices of education,
charter schools, and community college districts shall be considered
to be property taxes for the purposes of Section 2558, paragraph (1)
of subdivision (h) of Section 42238, and Section 84751 of the
Education Code. In the 2011-12 fiscal year, notwithstanding any other
law, funding provided to local education agencies pursuant to this
chapter shall be considered allocated local proceeds of taxes for
purposes of Section 8 of Article XVI of the California Constitution.
   (c) In fiscal years on and after the 2012-13 fiscal year, the
total amount paid each year pursuant to this chapter to school
districts, county offices of education, charter schools, and
community college districts shall not be considered to be property
taxes for the purposes of Section 2558, paragraph (1) of subdivision
(h) of Section 42238, and Section 84751 of the Education Code. In
fiscal years on and after the 2012-13 fiscal year, notwithstanding
any other law, funding provided to local education agencies pursuant
to this chapter shall not be considered allocated local proceeds of
taxes for purposes of Section 8 of Article XVI of the California
Constitution.
   (d) For purposes of computing a school district's property tax
revenue, remittances made pursuant to this chapter shall be treated
as property tax revenues transferred to school districts, county
offices of education, and community college districts pursuant to
subdivision (a) of Section 34183 for purposes of Section 41204.3 of
the Education Code.
   (e) (1) Notwithstanding Sections 97.2 and 97.3 of the Revenue and
Taxation Code, the county auditor-controller shall distribute the
funds that are remitted to the county Educational Revenue
Augmentation Fund by a city or county pursuant to this section only
to a K-12 school district or county office of education that is
located partially or entirely within any project area of the
redevelopment agency in an amount proportional to the average daily
attendance of each school district.
   (2) The county auditor-controller shall notify each K-12 school
district, and the State Department of Education, of the amount of
Educational Revenue Augmentation Fund moneys a district receives
pursuant to this section. The county auditor-controller shall also
notify each K-12 school district receiving funds pursuant to
paragraph (1) of the project area boundaries of the redevelopment
agency.
   (3) (A) The county superintendent of schools shall provide the
average daily attendance reported for each school district as of the
second principal apportionment for the preceding fiscal year to the
county auditor-controller.
   (B) The county auditor-controller shall, based on information
provided by the county superintendent of schools pursuant to
subparagraph (A), allocate the funding pursuant to this subdivision
to those districts within the city or county.
   (4) School districts and county offices of education shall use the
funds received under this section to serve pupils living in the
redevelopment areas or in housing supported by redevelopment agency
funds. Redevelopment agencies shall provide whatever information
school districts and county offices of education need to accomplish
this purpose.
   34194.2.  In choosing to continue redevelopment pursuant to this
part, a city or county may enter into an agreement with the
redevelopment agency in that jurisdiction, whereby the redevelopment
agency will transfer a portion of its tax increment to the city or
county, in an amount not to exceed the annual remittance required
that year pursuant to this chapter, for the purpose of financing
activities within the redevelopment area that are related to
accomplishing the redevelopment agency project goals.
   34194.3.  For the 2011-12 fiscal year only, a redevelopment agency
included in a city or county that complies with the provisions of
this part shall be exempt from making the full allocation required to
be made to the Low and Moderate Income Housing Fund, pursuant to
Sections 33334.2, 33334.4, and 33334.6. It is the intent of the
Legislature that Low and Moderate Income Housing Fund allocations be
maintained to the extent feasible. As a condition of reducing its
allocation pursuant to this section, the agency shall make a finding
that there are insufficient other moneys to meet its debt and other
obligations, current priority program needs, or its obligations under
Section 34194.2.
   34194.4.  (a) The county auditor-controller in each county in
which a redevelopment agency exists shall establish in the county
treasury a Special District Allocation Fund. The county
auditor-controller shall deposit the following amounts into the fund
out of each annual remittance by a city or county that includes a
special district under this section paid pursuant Section 34194 as
follows:
   (1) For the 2011-12 fiscal year, the amount shall be the city's or
county's remittance amount multiplied by the ratio of four million
three hundred thousand dollars ($4,300,000) to one billion seven
hundred million dollars ($1,700,000,000).
   (2) For the 2012-13 fiscal year and each fiscal year thereafter,
the amount shall be the city's or county's remittance amount
multiplied by the ratio of sixty million dollars ($60,000,000) to
four hundred million dollars ($400,000,000).
   (3) Amounts derived from the remittance payments of each city or
county shall be maintained in separate accounts in the fund.
   (b) On or before May 15 each year, the county auditor-controller
shall make payments out of each account in the Special District
Allocation Fund to each special district whose boundaries include all
or any portion of a redevelopment project area of the city's or
county's redevelopment agency for special district services that the
district determines further redevelopment purposes. Each special
district shall receive a proportionate share of the total annual
deposit in the account, determined as follows:
   (1) For each special district, the auditor-controller shall
determine the annual amount of tax increment revenue of the city's or
county's redevelopment agency that is attributable to the special
district. This amount shall be the amount of additional property tax
revenue that the special district would have received in that year
had property tax collected on incremental assessed value within the
redevelopment project areas been allocated to the district under the
property tax allocation laws then in effect. From this amount, the
auditor-controller shall subtract any passthrough payments received
in that year by the special district from the redevelopment agency.
   (2) The county auditor-controller shall sum all of the annual
amounts for individual special districts determined in paragraph (1).

   (3) For each special district, the county auditor-controller shall
calculate the ratio of the amount determined for that special
district under paragraph (1) to the total amount determined in
paragraph (2). This ratio shall be each special district's proportion
of the total payment from the account.
   (c) For the purposes of this section, "special district" means a
district that provides fire protection services and transit
districts. A special district that has both excluded and nonexcluded
functions and that serves nonexcluded functions within a
redevelopment project area shall receive a prorated share
proportionate to the special district's overall share of countywide
property tax that is received for its nonexcluded functions.
   (d) The auditor-controller shall report the payments made to
special districts pursuant to this section to the Controller by June
30 each year in a form and manner as specified by the Controller.
   (e) The county auditor-controller may require special districts to
provide, as a condition of receiving payments from the Special
District Allocation Fund, any relevant information necessary to the
determination of the payments made pursuant to this section.
      CHAPTER 3.5.  POST DISSOLUTION VOLUNTARY REDEVELOPMENT PROGRAM
PARTICIPATION


   34194.5.  No community may establish a new redevelopment agency if
its former redevelopment agency has been dissolved pursuant to Part
1.85 (commencing with Section 34170) until the successor entity has
retired all existing enforceable obligations and debts of the former
redevelopment agency and then only after the community adopts the
ordinance specified in Section 34193, and the ordinance provides for
payment of the remittances specified in paragraph (2) of subdivision
(c) of Section 34194.
      CHAPTER 4.  ENFORCEMENT AND SANCTIONS


   34195.  In the event that a city or county fails to make the
remittance required pursuant to the agreement specified in Section
34194 or 34194.5 and the Director of Finance makes the determination
described in those sections, the following shall apply:
   (a) The city or county shall no longer be authorized to engage in
voluntary redevelopment pursuant to this part and the redevelopment
agency shall become immediately subject to the provisions of Part 1.8
(commencing with Section 34161) and Part 1.85 (commencing with
34170).
   (b) The state shall be entitled to an assignment of any rights of
a city or county, as applicable, to any payments from the
redevelopment agency to which the city or county is entitled, as
described in subdivision (b) of Section 34193.2, for purposes of
mitigating the fiscal impact to the state related to the failure of
the city or county to make the required remittance payment.
      CHAPTER 5.  AUDITOR-CONTROLLER FEE


   34196.  The auditor-controller may charge a city or county a fee
that does not exceed the reasonable costs of the auditor-controller
to implement the provisions of this part.
  SEC. 3.  If any legal challenge to invalidate a provision of
Section 2 of this act is successful, a redevelopment 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)
of Chapter 6 of Part 1 of Division 24 of the Health and Safety Code.
  SEC. 4.  The provisions of Section 2 of this act are distinct and
severable from the provisions of Part 1.8 (commencing with 34161) and
Part 1.85 (commencing with Section 34170) of Division 24 of the
Health and Safety Code and those provisions shall continue in effect
if any of the provisions of this act are held invalid.
  SEC. 5.  If Section 2 of this act, or the application thereof, is
held invalid in a court of competent jurisdiction, the remaining
provisions of this act are not severable and shall not be
                                 given, or otherwise have, any force
or effect.
  SEC. 6.  The sum of five hundred thousand dollars ($500,000) is
hereby appropriated to the Department of Finance from the General
Fund for costs to comply with this act.
  SEC. 7.  This act addresses the fiscal emergency declared and
reaffirmed by the Governor by proclamation on January 20, 2011,
pursuant to subdivision (f) of Section 10 of Article IV of the
California Constitution.
  SEC. 8.  This act is a bill providing for appropriations related to
the Budget Bill within the meaning of subdivision (e) of Section 12
of Article IV of the California Constitution, has been identified as
related to the budget in the Budget Bill, and shall take effect
immediately.