BILL NUMBER: SBX1 8 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 8, 2011
PASSED THE ASSEMBLY SEPTEMBER 8, 2011
AMENDED IN ASSEMBLY SEPTEMBER 2, 2011
INTRODUCED BY Committee on Budget and Fiscal Review
MAY 18, 2011
An act to amend Sections 33334.2, 33690, 33690.5, 34162, 34163,
34165, 34167, 34171, 34176, 34177, 34179, 34181, 34182, 34183, 34185,
34187, 34194, 34194.4, and 34195 of, and to add Section 34194.25 to,
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
SB 8, Committee on Budget and Fiscal Review. Redevelopment.
Existing law requires a redevelopment agency, for the 2009-10 and
2010-11 fiscal years, to deposit revenue payments in its county's
Supplemental Educational Revenue Augmentation Fund for allocation to
school entities. Existing law authorizes an agency, in order to make
these payments, to borrow the amount required to be allocated to that
agency's Low and Moderate Income Housing Fund and requires the
agency to repay the borrowed funds by a specified date.
This bill would authorize an agency to extend the date of
repayment for the borrowed funds by 5 years.
Existing law suspends various activities of redevelopment agencies
and prohibits the agencies from incurring indebtedness for a
specified period. Existing law also dissolves redevelopment agencies
and community development agencies, as of October 1, 2011, and
designates successor agencies, as defined. Existing law exempts from
dissolution a redevelopment agency of a community where the city or
county that created the agency participates in a voluntary
alternative redevelopment program, as prescribed. Existing law
requires a participating city or county to make specified remittances
for deposit in the Special District Allocation Fund and authorizes
that city or county to enter into an agreement with an agency whereby
the agency would transfer a portion of its tax increment to the city
or county for the purpose of financing specified activities.
This bill would make technical, clarifying, and conforming changes
to these provisions. The bill would modify provisions relating to
agency indebtedness and the transfer of housing funds and
responsibilities associated with dissolved redevelopment agencies.
The bill would also provide, for the 2012-13 and 2013-14 fiscal years
only, that an agreement to transfer tax increment between a city or
county and an agency may include an additional amount to reimburse
the city for a specified shortfall. The bill would make certain
provisions operative only if a specified provision of law is
operative.
The bill would appropriate $1,000 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. Section 33334.2 of the Health and Safety Code is
amended to read:
33334.2. (a) Except as provided in subdivision (k), not less than
20 percent of all taxes that are allocated to the agency pursuant to
Section 33670 shall be used by the agency for the purposes of
increasing, improving, and preserving the community's supply of low-
and moderate-income housing available at affordable housing cost, as
defined by Section 50052.5, to persons and families of low or
moderate income, as defined in Section 50093, lower income
households, as defined by Section 50079.5, very low income
households, as defined in Section 50105, and extremely low income
households, as defined by Section 50106, that is occupied by these
persons and families, unless one of the following findings is made
annually by resolution:
(1) (A) That no need exists in the community to improve, increase,
or preserve the supply of low- and moderate-income housing,
including housing for very low income households in a manner that
would benefit the project area and that this finding is consistent
with the housing element of the community's general plan required by
Article 10.6 (commencing with Section 65580) of Chapter 3 of Division
1 of Title 7 of the Government Code, including its share of the
regional housing needs of very low income households and persons and
families of low or moderate income.
(B) This finding shall only be made if the housing element of the
community's general plan demonstrates that the community does not
have a need to improve, increase, or preserve the supply of low- and
moderate-income housing available at affordable housing cost to
persons and families of low or moderate income and to very low income
households. This finding shall only be made if it is consistent with
the planning agency's annual report to the legislative body on
implementation of the housing element required by subdivision (b) of
Section 65400 of the Government Code. No agency of a charter city
shall make this finding unless the planning agency submits the report
pursuant to subdivision (b) of Section 65400 of the Government Code.
This finding shall not take effect until the agency has complied
with subdivision (b) of this section.
(2) (A) That some stated percentage less than 20 percent of the
taxes that are allocated to the agency pursuant to Section 33670 is
sufficient to meet the housing needs of the community, including its
share of the regional housing needs of persons and families of low-
or moderate-income and very low income households, and that this
finding is consistent with the housing element of the community's
general plan required by Article 10.6 (commencing with Section 65580)
of Chapter 3 of Division 1 of Title 7 of the Government Code.
(B) This finding shall only be made if the housing element of the
community's general plan demonstrates that a percentage of less than
20 percent will be sufficient to meet the community's need to
improve, increase, or preserve the supply of low- and moderate-income
housing available at affordable housing cost to persons and families
of low or moderate income and to very low income households. This
finding shall only be made if it is consistent with the planning
agency's annual report to the legislative body on implementation of
the housing element required by subdivision (b) of Section 65400 of
the Government Code. No agency of a charter city shall make this
finding unless the planning agency submits the report pursuant to
subdivision (b) of Section 65400 of the Government Code. This finding
shall not take effect until the agency has complied with subdivision
(b) of this section.
(C) For purposes of making the findings specified in this
paragraph and paragraph (1), the housing element of the general plan
of a city, county, or city and county shall be current, and shall
have been determined by the department pursuant to Section 65585 to
be in substantial compliance with Article 10.6 (commencing with
Section 65580) of Chapter 3 of Division 1 of Title 7 of the
Government Code.
(3) (A) That the community is making a substantial effort to meet
its existing and projected housing needs, including its share of the
regional housing needs, with respect to persons and families of low
and moderate income, particularly very low income households, as
identified in the housing element of the community's general plan
required by Article 10.6 (commencing with Section 65580) of Chapter 3
of Division 1 of Title 7 of the Government Code, and that this
effort, consisting of direct financial contributions of local funds
used to increase and improve the supply of housing affordable to, and
occupied by, persons and families of low or moderate income and very
low income households is equivalent in impact to the funds otherwise
required to be set aside pursuant to this section. In addition to
any other local funds, these direct financial contributions may
include federal or state grants paid directly to a community and that
the community has the discretion of using for the purposes for which
moneys in the Low and Moderate Income Housing Fund may be used. The
legislative body shall consider the need that can be reasonably
foreseen because of displacement of persons and families of low or
moderate income or very low income households from within, or
adjacent to, the project area, because of increased employment
opportunities, or because of any other direct or indirect result of
implementation of the redevelopment plan. No finding under this
subdivision may be made until the community has provided or ensured
the availability of replacement dwelling units as defined in Section
33411.2 and until it has complied with Article 9 (commencing with
Section 33410).
(B) In making the determination that other financial contributions
are equivalent in impact pursuant to this subdivision, the agency
shall include only those financial contributions that are directly
related to programs or activities authorized under subdivision (e).
(C) The authority for making the finding specified in this
paragraph shall expire on June 30, 1993, except that the expiration
shall not be deemed to impair contractual obligations to bondholders
or private entities incurred prior to May 1, 1991, and made in
reliance on the provisions of this paragraph. Agencies that make this
finding after June 30, 1993, shall show evidence that the agency
entered into the specific contractual obligation with the specific
intention of making a finding under this paragraph in order to
provide sufficient revenues to pay off the indebtedness.
(b) Within 10 days following the making of a finding under either
paragraph (1) or (2) of subdivision (a), the agency shall send the
Department of Housing and Community Development a copy of the
finding, including the factual information supporting the finding and
other factual information in the housing element that demonstrates
that either (1) the community does not need to increase, improve, or
preserve the supply of housing for low- and moderate-income
households, including very low income households, or (2) a percentage
less than 20 percent will be sufficient to meet the community's need
to improve, increase, and preserve the supply of housing for low-
and moderate-income households, including very low income households.
Within 10 days following the making of a finding under paragraph (3)
of subdivision (a), the agency shall send the Department of Housing
and Community Development a copy of the finding, including the
factual information supporting the finding that the community is
making a substantial effort to meet its existing and projected
housing needs. Agencies that make this finding after June 30, 1993,
shall also submit evidence to the department of its contractual
obligations with bondholders or private entities incurred prior to
May 1, 1991, and made in reliance on this finding.
(c) In any litigation to challenge or attack a finding made under
paragraph (1), (2), or (3) of subdivision (a), the burden shall be
upon the agency to establish that the finding is supported by
substantial evidence in light of the entire record before the agency.
If an agency is determined by a court to have knowingly
misrepresented any material facts regarding the community's share of
its regional housing need for low- and moderate-income housing,
including very low income households, or the community's production
record in meeting its share of the regional housing need pursuant to
the report required by subdivision (b) of Section 65400 of the
Government Code, the agency shall be liable for all court costs and
plaintiff's attorney's fees, and shall be required to allocate not
less than 25 percent of the agency's tax increment revenues to its
Low and Moderate Income Housing Fund in each year thereafter.
(d) Nothing in this section shall be construed as relieving any
other public entity or entity with the power of eminent domain of any
legal obligations for replacement or relocation housing arising out
of its activities.
(e) In carrying out the purposes of this section, the agency may
exercise any or all of its powers for the construction,
rehabilitation, or preservation of affordable housing for extremely
low, very low, low- and moderate-income persons or families,
including the following:
(1) Acquire real property or building sites subject to Section
33334.16.
(2) (A) Improve real property or building sites with onsite or
offsite improvements, but only if both (i) the improvements are part
of the new construction or rehabilitation of affordable housing units
for low- or moderate-income persons that are directly benefited by
the improvements, and are a reasonable and fundamental component of
the housing units, and (ii) the agency requires that the units remain
available at affordable housing cost to, and occupied by, persons
and families of extremely low, very low, low, or moderate income for
the same time period and in the same manner as provided in
subdivision (c) and paragraph (2) of subdivision (f) of Section
33334.3.
(B) If the newly constructed or rehabilitated housing units are
part of a larger project and the agency improves or pays for onsite
or offsite improvements pursuant to the authority in this
subdivision, the agency shall pay only a portion of the total cost of
the onsite or offsite improvement. The maximum percentage of the
total cost of the improvement paid for by the agency shall be
determined by dividing the number of housing units that are
affordable to low- or moderate-income persons by the total number of
housing units, if the project is a housing project, or by dividing
the cost of the affordable housing units by the total cost of the
project, if the project is not a housing project.
(3) Donate real property to private or public persons or entities.
(4) Finance insurance premiums pursuant to Section 33136.
(5) Construct buildings or structures.
(6) Acquire buildings or structures.
(7) Rehabilitate buildings or structures.
(8) Provide subsidies to, or for the benefit of, extremely low
income households, as defined by Section 50106, very low income
households, as defined by Section 50105, lower income households, as
defined by Section 50079.5, or persons and families of low or
moderate income, as defined by Section 50093, to the extent those
households cannot obtain housing at affordable costs on the open
market. Housing units available on the open market are those units
developed without direct government subsidies.
(9) Develop plans, pay principal and interest on bonds, loans,
advances, or other indebtedness, or pay financing or carrying
charges.
(10) Maintain the community's supply of mobilehomes.
(11) Preserve the availability to lower income households of
affordable housing units in housing developments that are assisted or
subsidized by public entities and that are threatened with imminent
conversion to market rates.
(f) The agency may use these funds to meet, in whole or in part,
the replacement housing provisions in Section 33413. However, nothing
in this section shall be construed as limiting in any way the
requirements of that section.
(g) (1) The agency may use these funds inside or outside the
project area. The agency may only use these funds outside the project
area upon a resolution of the agency and the legislative body that
the use will be of benefit to the project. The determination by the
agency and the legislative body shall be final and conclusive as to
the issue of benefit to the project area. The Legislature finds and
declares that the provision of replacement housing pursuant to
Section 33413 is always of benefit to a project. Unless the
legislative body finds, before the redevelopment plan is adopted,
that the provision of low- and moderate-income housing outside the
project area will be of benefit to the project, the project area
shall include property suitable for low- and moderate-income housing.
(2) (A) The Contra Costa County Redevelopment Agency may use these
funds anywhere within the unincorporated territory, or within the
incorporated limits of the City of Walnut Creek on sites contiguous
to the Pleasant Hill BART Station Area Redevelopment Project area.
The agency may only use these funds outside the project area upon a
resolution of the agency and board of supervisors determining that
the use will be of benefit to the project area. In addition, the
agency may use these funds within the incorporated limits of the City
of Walnut Creek only if the agency and the board of supervisors find
all of the following:
(i) Both the County of Contra Costa and the City of Walnut Creek
have adopted and are implementing complete and current housing
elements of their general plans that the Department of Housing and
Community Development has determined to be in compliance with the
requirements of Article 10.6 (commencing with Section 65580) of
Chapter 3 of Division 1 of Title 7 of the Government Code.
(ii) The development to be funded shall not result in any
residential displacement from the site where the development is to be
built.
(iii) The development to be funded shall not be constructed in an
area that currently has more than 50 percent of its population
comprised of racial minorities or low-income families.
(iv) The development to be funded shall allow construction of
affordable housing closer to a rapid transit station than could be
constructed in the unincorporated territory outside the Pleasant Hill
BART Station Area Redevelopment Project.
(B) If the agency uses these funds within the incorporated limits
of the City of Walnut Creek, all of the following requirements shall
apply:
(i) The funds shall be used only for the acquisition of land for,
and the design and construction of, the development of housing
containing units affordable to, and occupied by, low- and
moderate-income persons.
(ii) If less than all the units in the development are affordable
to, and occupied by, low- or moderate-income persons, any agency
assistance shall not exceed the amount needed to make the housing
affordable to, and occupied by, low- or moderate-income persons.
(iii) The units in the development that are affordable to, and
occupied by, low- or moderate-income persons shall remain affordable
for a period of at least 55 years.
(iv) The agency and the City of Walnut Creek shall determine, if
applicable, whether Article XXXIV of the California Constitution
permits the development.
(h) The Legislature finds and declares that expenditures or
obligations incurred by the agency pursuant to this section shall
constitute an indebtedness of the project.
(i) This section shall only apply to taxes allocated to a
redevelopment agency for which a final redevelopment plan is adopted
on or after January 1, 1977, or for any area that is added to a
project by an amendment to a redevelopment plan, which amendment is
adopted on or after the effective date of this section. An agency
may, by resolution, elect to make all or part of the requirements of
this section applicable to any redevelopment project for which a
redevelopment plan was adopted prior to January 1, 1977, subject to
any indebtedness incurred prior to the election.
(j) (1) (A) An action to compel compliance with the requirement of
Section 33334.3 to deposit not less than 20 percent of all taxes
that are allocated to the agency pursuant to Section 33670 in the Low
and Moderate Income Housing Fund shall be commenced within 10 years
of the alleged violation. A cause of action for a violation accrues
on the last day of the fiscal year in which the funds were required
to be deposited in the Low and Moderate Income Housing Fund.
(B) An action to compel compliance with the requirement of this
section or Section 33334.6 that money deposited in the Low and
Moderate Income Housing Fund be used by the agency for purposes of
increasing, improving, and preserving the community's supply of low-
and moderate-income housing available at affordable housing cost
shall be commenced within 10 years of the alleged violation. A cause
of action for a violation accrues on the date of the actual
expenditure of the funds.
(C) An agency found to have deposited less into the Low and
Moderate Income Housing Fund than mandated by Section 33334.3 or to
have spent money from the Low and Moderate Income Housing Fund for
purposes other than increasing, improving, and preserving the
community's supply of low- and moderate-income housing, as mandated,
by this section or Section 33334.6 shall repay the funds with
interest in one lump sum pursuant to Section 970.4 or 970.5 of the
Government Code or may do either of the following:
(i) Petition the court under Section 970.6 for repayment in
installments.
(ii) Repay the portion of the judgment due to the Low and Moderate
Income Housing Fund in equal installments over a period of five
years following the judgment.
(2) Repayment shall not be made from the funds required to be set
aside or used for low- and moderate-income housing pursuant to this
section.
(3) Notwithstanding clauses (i) and (ii) of subparagraph (C) of
paragraph (1), all costs, including reasonable attorney's fees if
included in the judgment, are due and shall be paid upon entry of
judgment or order.
(4) Except as otherwise provided in this subdivision, Chapter 2
(commencing with Section 970) of Part 5 of Division 3.6 of Title 1 of
the Government Code for the enforcement of a judgment against a
local public entity applies to a judgment against a local public
entity that violates this section.
(5) This subdivision applies to actions filed on and after January
1, 2006.
(6) The limitations period specified in subparagraphs (A) and (B)
of paragraph (1) does not apply to a cause of action brought pursuant
to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of
the Code of Civil Procedure.
(k) (1) From July 1, 2009, to June 30, 2010, inclusive, an agency
may suspend all or part of its required allocation to the Low and
Moderate Income Housing Fund from taxes that are allocated to that
agency pursuant to Section 33670.
(2) An agency that suspends revenue pursuant to paragraph (1)
shall pay back to its low- and moderate-income housing fund the
amount of revenue that was suspended in the 2009-10 fiscal year
pursuant to this subdivision from July 1, 2010, to June 30, 2015,
inclusive except that the agency may pay back this revenue from July
1, 2010, to June 30, 2020, inclusive, providing the agency complies
with the requirements of paragraph (3) of subdivision (c) of Section
33690.
(3) An agency that suspends revenue pursuant to paragraph (1) and
fails to repay or have repaid on its behalf the amount of revenue
suspended pursuant to paragraph (2) shall, commencing July 1, 2015,
or if the agency complies with the requirements of paragraph (3) of
subdivision (c) of Section 33690, commencing July 1, 2020, be
required to allocate an additional 5 percent of all taxes that are
allocated to that agency pursuant to Section 33670 for low- and
moderate-income housing for the remainder of the time that the agency
receives allocations of tax revenue pursuant to Section 33670.
(4) An agency that fails to pay or have paid on its behalf the
full amount calculated pursuant to subparagraph (J) of paragraph (2)
of subdivision (a) of Section 33690, or subparagraph (J) of paragraph
(2) of subdivision (a) of Section 33690.5, as the case may be,
shall, commencing July 1, 2010, or July 1, 2011, as applicable, be
required to allocate an additional 5 percent of all taxes that are
allocated to that agency pursuant to Section 33670 for low- and
moderate-income housing for the remainder of the time that the agency
receives allocations of tax revenue pursuant to Section 33670.
SEC. 2. Section 33690 of the Health and Safety Code is amended to
read:
33690. (a) (1) (A) For the 2009-10 fiscal year, a redevelopment
agency shall remit, as determined by the Director of Finance, prior
to May 10, 2010, an amount equal to the amount determined for that
agency pursuant to paragraph (2) to the county auditor for deposit in
the county Supplemental Educational Revenue Augmentation Fund that
is established in the county treasury. Notwithstanding any other law,
any funds deposited in the Supplemental Educational Revenue
Augmentation Fund shall not be distributed to a community college
district.
(B) On or before May 25, 2010, the county auditor shall report to
the Department of Finance each amount transferred to the Supplemental
Educational Revenue Augmentation Fund for the 2009-10 fiscal year.
(2) On or before November 15, 2009, the Director of Finance shall
do all of the following:
(A) Determine the net tax increment apportioned to each agency
pursuant to Section 33670, excluding any amounts apportioned to
affected taxing entities pursuant to Section 33401, 33607.5, or
33676.
(B) Determine the net tax increment apportioned to all agencies
pursuant to Section 33670, excluding any amounts allocated to
affected taxing entities pursuant to Section 33401, 33607.5, or
33676.
(C) Determine a percentage factor by dividing one billion seven
hundred million dollars ($1,700,000,000) by two and then by the
amount determined pursuant to subparagraph (B).
(D) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (A) by the percentage factor
determined pursuant to subparagraph (C).
(E) Determine the total amount of property tax revenue apportioned
to each agency pursuant to Section 33670, including any amounts
allocated to affected taxing entities pursuant to Section 33401,
33607.5, or 33676.
(F) Determine the total amount of property tax revenue apportioned
to all agencies pursuant to Section 33670, including any amounts
allocated to affected taxing entities pursuant to Section 33401,
33607.5, or 33676.
(G) Determine a percentage factor by dividing one billion seven
hundred million dollars ($1,700,000,000) by two and then by the
amount determined pursuant to subparagraph (F).
(H) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (E) by the percentage factor
determined pursuant to subparagraph (G).
(I) Add the amount determined pursuant to subparagraph (D) to the
amount determined pursuant to subparagraph (H).
(J) Notify each agency, each legislative body, and each county
auditor of each agency's amount. The county auditor shall deposit
these amounts in the county Supplemental Educational Revenue
Augmentation Fund pursuant to paragraph (1).
(3) The obligation of any agency to make the payments required
pursuant to this subdivision shall be subordinate to the lien of any
pledge of collateral securing, directly or indirectly, the payment of
the principal, or interest on any bonds of the agency including,
without limitation, bonds secured by a pledge of taxes allocated to
the agency pursuant to Section 33670. Agencies shall factor in the
fiscal obligations created by this subdivision when issuing bonded
indebtedness.
(b) To make the allocation required by this section, an agency may
use any funds that are legally available and not legally obligated
for other uses, including, but not limited to, reserve funds,
proceeds of land sales, proceeds of bonds or other indebtedness,
lease revenues, interest, and other earned income.
(c) (1) Notwithstanding any other law, to make the full allocation
required by this section, an agency may borrow from either the
amount required to be allocated to the Low and Moderate Income
Housing Fund, pursuant to Sections 33334.2, 33334.3, and 33334.6, or
any moneys in that fund, or both, unless executed contracts exist
that would be impaired if the agency reduced the amount allocated to
the Low and Moderate Income Housing Fund or the amount of moneys in
the fund, or both, pursuant to the authority of this subdivision.
(2) As a condition of borrowing pursuant to this subdivision, an
agency shall make a finding that there are insufficient other moneys
to meet the requirements of subdivision (a). Funds borrowed pursuant
to this subdivision shall be repaid in full on or before June 30,
2015, except as set forth in paragraph (3). An agency that fails to
repay funds borrowed pursuant to this subdivision shall be required
to allocate an additional 5 percent of all taxes that are allocated
to that agency pursuant to Section 33670 for low- and moderate-income
housing for the remainder of the time the agency receives tax
revenue pursuant to Section 33670.
(3) Notwithstanding paragraph (2), funds borrowed pursuant to this
subdivision may be repaid in full on or before June 30, 2020,
providing that the agency, prior to June 30, 2012, makes a finding
that there are insufficient other moneys to accomplish currently
planned activities and investments. The finding shall specifically
address how the extended repayment would affect low- and
moderate-income housing. The agency shall, after a noticed public
hearing, adopt a resolution that lists all of the following:
(A) Each existing indebtedness incurred prior to the effective
date of this section.
(B) Each indebtedness on which a payment is required to be made
during the applicable fiscal year.
(C) The amount of each payment, the time when it is required to be
paid, and the total of the payments required to be made during the
applicable fiscal year. For indebtedness that bears interest at a
variable rate, or for short-term indebtedness that is maturing during
the fiscal year and that is expected to be refinanced, the amount of
payments during the fiscal year shall be estimated by the agency.
(D) A
repayment schedule for the funds borrowed pursuant to this
subdivision, with such repayment structured that any unpaid balance,
as of July 1, 2015, is repaid in annual amounts of not less than 20
percent of the outstanding balance as of that date.
(E) The information contained in the resolution required by this
subdivision shall be reviewed for accuracy by the chief fiscal
officer of the agency and the legislative body shall additionally
adopt the resolution required by this section.
(d) The legislative body shall by March 1, 2010, report to the
county auditor as to how the agency intends to fund the allocation
required by this section, or that the legislative body intends to
remit the amount in lieu of the agency pursuant to Section 33692.
(e) The allocation obligations imposed by this section, including
amounts owed, if any, created under this section, are hereby declared
to be an indebtedness of the redevelopment project to which they
relate, payable from taxes allocated to the agency pursuant to
Section 33670, and shall constitute an indebtedness of the agency
with respect to the redevelopment project until paid in full.
(f) It is the intent of the Legislature, in enacting this section,
that these allocations directly or indirectly assist in the
financing or refinancing, in whole or in part, of the community's
redevelopment project pursuant to Section 16 of Article XVI of the
California Constitution.
(g) In making the determination required by subdivision (a), the
Director of Finance shall use those amounts reported in "Table 7,
Assessed Valuation, Tax Increment Distribution and Statement of
Indebtedness" for all agencies and for each agency in the 2006-07
edition of the Controller's Community Redevelopment Agencies Annual
Report made pursuant to Section 12463.3 of the Government Code,
subject to any adjustments required by subdivision (h).
(h) With respect to the use of amounts reported in the 2006-07
edition of the Controller's Community Redevelopment Agencies Annual
Report for purposes of subdivision (a), both of the following shall
apply:
(1) If revised reports were accepted by the Controller on or
before September 1, 2008, the Director of Finance shall use
appropriate data that has been certified by the Controller for the
purpose of making the determinations required by subdivision (a).
(2) The director shall adjust the reported amounts of net and
total tax increment revenue to exclude amounts apportioned to any
redevelopment agency from any territory that has been deleted from
any project area, as reported to the State Board of Equalization in
accordance with Section 33375 prior to August 1, 2009, and that
deletion is not reflected in the Controller's 2006-07 published
report or in the revised reports described in paragraph (1).
(i) Except as provided in Section 33331.5, nothing in this section
shall be construed as extending the time limits on the ability of
agencies to do both of the following:
(1) Establish loans, advances, or indebtedness.
(2) Exercise eminent domain powers.
(j) (1) Notwithstanding Sections 97.2 and 97.3 of Revenue and
Taxation Code, the county auditor-controller shall distribute the
funds that are remitted to the county Supplemental Educational
Revenue Augmentation Fund by a redevelopment agency 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 that
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
Supplemental Educational Revenue Augmentation Fund moneys a district
receives pursuant to this section from each redevelopment agency. The
county auditor-controller shall also notify each K-12 school
district receiving funds pursuant to paragraph (1) of the project
area boundaries of each redevelopment agency from which the K-12
school district received funds.
(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 2009-10 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 county.
(4) The county auditor-controller shall notify, on or before May
25, 2010, the Department of Finance of the amount of funding
apportioned to each district or county office of education pursuant
to this subdivision.
(5) 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.
(k) (1) For the 2009-10 fiscal year, the amount of property tax
revenues apportioned to each school district, pursuant to Article 2
(commencing with Section 96.1) of Chapter 6 of Part 0.5 of Division 1
of the Revenue and Taxation Code, shall be reduced by the total
amount of Supplemental Educational Revenue Augmentation Fund moneys
the district receives. The amount of property tax revenues that is
the product of this reduction shall be deposited in the county
Supplemental Revenue Augmentation Fund established pursuant to
Section 100.06 of the Revenue and Taxation Code.
(2) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the total
amount of Supplemental Educational Revenue Augmentation Fund moneys a
district receives, regardless of the actual date the funds are
received, pursuant to this section from each redevelopment agency
shall be deemed to be "allocated local proceeds of taxes," as defined
in subdivisions (g) and (h) of Section 41202, and for purposes of
Section 42238 of the Education Code, for the 2009-10 fiscal year.
(l) For purposes of this section, "K-12 school district" has the
same meaning as a school district, as defined in Section 80 of the
Education Code.
(m) 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.
SEC. 3. Section 33690.5 of the Health and Safety Code is amended
to read:
33690.5. (a) (1) (A) For the 2010-11 fiscal year a redevelopment
agency shall remit, as determined by the Director of Finance, prior
to May 10, 2011, an amount equal to the amount determined for that
agency pursuant to paragraph (2) to the county auditor for deposit in
the county Supplemental Educational Revenue Augmentation Fund.
(B) On or before May 25, 2011, the county auditor shall report to
the Department of Finance each amount transferred to the Supplemental
Educational Revenue Augmentation Fund for the 2010-11 fiscal year.
(2) On or before November 15, 2010, the Director of Finance shall
do all of the following:
(A) Determine the net tax increment apportioned to each agency
pursuant to Section 33670, excluding any amounts apportioned to
affected taxing entities pursuant to Section 33401, 33607.5, or
33676.
(B) Determine the net tax increment apportioned to all agencies
pursuant to Section 33670, excluding any amounts allocated to
affected taxing entities pursuant to Section 33401, 33607.5, or
33676.
(C) Determine a percentage factor by dividing three hundred fifty
million dollars ($350,000,000) by two and then by the amount
determined pursuant to subparagraph (B).
(D) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (A) by the percentage factor
determined pursuant to subparagraph (C).
(E) Determine the total amount of property tax revenue apportioned
to each agency pursuant to Section 33670, including any amounts
allocated to affected taxing entities pursuant to Section 33401,
33607.5, or 33676.
(F) Determine the total amount of property tax revenue apportioned
to all agencies pursuant to Section 33670, including any amounts
allocated to affected taxing entities pursuant to Section 33401,
33607.5, or 33676.
(G) Determine a percentage factor by dividing three hundred fifty
million dollars ($350,000,000) by two and then by the amount
determined pursuant to subparagraph (F).
(H) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (E) by the percentage factor
determined pursuant to subparagraph (G).
(I) Add the amount determined pursuant to subparagraph (D) to the
amount determined pursuant to subparagraph (H).
(J) Notify each agency, each legislative body, and each county
auditor of each agency's amount. The county auditor shall deposit
these amounts in the county Supplemental Educational Revenue
Augmentation Fund pursuant to paragraph (1).
(3) The obligation of any agency to make the payments required
pursuant to this subdivision shall be subordinate to the lien of any
pledge of collateral securing, directly or indirectly, the payment of
the principal, or interest on any bonds of the agency including,
without limitation, bonds secured by a pledge of taxes allocated to
the agency pursuant to Section 33670. Agencies shall factor in the
fiscal obligations created by this subdivision when issuing bonded
indebtedness.
(b) To make the allocation required by this section, an agency may
use any funds that are legally available and not legally obligated
for other uses, including, but not limited to, reserve funds,
proceeds of land sales, proceeds of bonds or other indebtedness,
lease revenues, interest, and other earned income.
(c) (1) Notwithstanding any other law, to make the full allocation
required by this section, an agency may borrow the amount required
to be allocated to the Low and Moderate Income Housing Fund, pursuant
to Sections 33334.2, 33334.3, and 33334.6, unless, in a given fiscal
year, executed contracts exist that would be impaired if the agency
reduced the amount allocated to the Low and Moderate Income Housing
Fund pursuant to the authority of this subdivision.
(2) As a condition of borrowing pursuant to this subdivision, an
agency shall make a finding that there are insufficient other moneys
to meet the requirements of subdivision (a). Funds borrowed pursuant
to this subdivision shall be repaid in full on or before June 30,
2016, except as set forth in paragraph (3). An agency that fails to
repay funds borrowed pursuant to this subdivision shall be required
to allocate an additional 5 percent of all taxes that are allocated
to that agency pursuant to Section 33670 for low- and moderate-income
housing for the remainder of the time the agency receives tax
revenue pursuant to Section 33670.
(3) Notwithstanding paragraph (2), funds borrowed pursuant to this
subdivision may be repaid in full on or before June 30, 2021,
providing that the agency, prior to June 30, 2013, makes a finding
that there are insufficient other moneys to accomplish currently
planned activities and investments. The finding shall specifically
address how the extended repayment would affect low- and
moderate-income housing. The agency shall, after a noticed public
hearing, adopt a resolution that lists all of the following:
(A) Each existing indebtedness incurred prior to the effective
date of this section.
(B) Each indebtedness on which a payment is required to be made
during the applicable fiscal year.
(C) The amount of each payment, the time when it is required to be
paid, and the total of the payments required to be made during the
applicable fiscal year. For indebtedness that bears interest at a
variable rate, or for short-term indebtedness that is maturing during
the fiscal year and that is expected to be refinanced, the amount of
payments during the fiscal year shall be estimated by the agency.
(D) A repayment schedule for the funds borrowed pursuant to this
subdivision, with such repayment structured that any unpaid balance,
as of July 1, 2016, is repaid in annual amounts of not less than 20
percent of the outstanding balance as of that date.
(E) The information contained in the resolution required by this
subdivision shall be reviewed for accuracy by the chief fiscal
officer of the agency and the legislative body shall additionally
adopt the resolution required by this section.
(d) The legislative body shall by March 1, 2011, report to the
county auditor as to how the agency intends to fund the allocation
required by this section, or that the legislative body intends to
remit the amount in lieu of the agency pursuant to Section 33692.
(e) The allocation obligations imposed by this section, including
amounts owed, if any, created under this section, are hereby declared
to be an indebtedness of the redevelopment project to which they
relate, payable from taxes allocated to the agency pursuant to
Section 33670, and shall constitute an indebtedness of the agency
with respect to the redevelopment project until paid in full.
(f) It is the intent of the Legislature, in enacting this section,
that these allocations directly or indirectly assist in the
financing or refinancing, in whole or in part, of the community's
redevelopment project pursuant to Section 16 of Article XVI of the
California Constitution.
(g) In making the determination required by subdivision (a), the
Director of Finance shall use those amounts reported in "Table 7,
Assessed Valuation, Tax Increment Distribution and Statement of
Indebtedness" for all agencies and for each agency in the 2006-07
edition of the Controller's Community Redevelopment Agencies Annual
Report made pursuant to Section 12463.3 of the Government Code,
subject to any adjustments required by subdivision (h).
(h) With respect to the use of amounts reported in the 2006-07
edition of the Controller's Community Redevelopment Agencies Annual
Report for purposes of subdivision (a), both of the following shall
apply:
(1) If revised reports were accepted by the Controller on or
before September 1, 2008, the Director of Finance shall use
appropriate data that has been certified by the Controller for the
purpose of making the determinations required by subdivision (a).
(2) The director shall adjust the reported amounts of net and
total tax increment revenue to exclude amounts apportioned to any
redevelopment agency from any territory that has been deleted from
any project area, as reported to the State Board of Equalization in
accordance with Section 33375 prior to August 1, 2009, and that
deletion is not reflected in the Controller's 2006-07 published
report or in the revised reports described in paragraph (1).
(i) Except as provided in Section 33331.5, nothing in this section
shall be construed as extending the time limits on the ability of
agencies to do both of the following:
(1) Establish loans, advances, or indebtedness.
(2) Exercise eminent domain powers.
(j) (1) Notwithstanding Sections 97.2 and 97.3 of Revenue and
Taxation Code, the county auditor-controller shall distribute the
funds that are remitted to the county Supplemental Educational
Revenue Augmentation Fund by a redevelopment agency 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 that
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
Supplemental Educational Revenue Augmentation Fund moneys a district
receives pursuant to this section from each redevelopment agency. The
county auditor-controller shall also notify each K-12 school
district receiving funds pursuant to paragraph (1) of the project
area boundaries of each redevelopment agency from which the K-12
school district received funds.
(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 2009-10 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 county.
(4) The county auditor-controller shall notify, on or before May
25, 2011, the Department of Finance of the amount of funding
apportioned to each district or county office of education pursuant
to this subdivision.
(5) 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 need to accomplish this purpose.
(k) (1) For the 2010-11 fiscal year, the amount of property tax
revenues apportioned to each school district, pursuant to Article 2
(commencing with Section 96.1) of Chapter 6 of Part 0.5 of Division 1
of the Revenue and Taxation Code, shall be reduced by the total
amount of Supplemental Educational Revenue Augmentation Fund moneys
the district receives. The amount of property tax revenues that is
the product of this reduction shall be deposited in the county
Supplemental Revenue Augmentation Fund established pursuant to
Section 100.06 of the Revenue and Taxation Code.
(2) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the total
amount of Supplemental Educational Revenue Augmentation Fund moneys a
district receives, regardless of the actual date the funds are
received, pursuant to this section from each redevelopment agency
shall be deemed to be "allocated local proceeds of taxes," as defined
in subdivisions (g) and (h) of Section 41202 and for purposes of
Section 42238 of the Education Code, for the 2010-11 fiscal year.
(l) For purposes of this section, "K-12 school district" has the
same meaning as a school district, as defined in Section 80 of the
Education Code.
(m) 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.
SEC. 4. Section 34162 of the Health and Safety Code is amended to
read:
34162. (a) Notwithstanding Part 1 (commencing with Section
33000), Part 1.5 (commencing with Section 34000), Part 1.6
(commencing with Section 34050), and Part 1.7 (commencing with
Section 34100), or any other law, commencing on the effective date of
this act, an agency shall be unauthorized and shall not take any
action to incur indebtedness, including, but not limited to, any of
the following:
(1) Issue or sell bonds, for any purpose, regardless of the source
of repayment of the bonds. As used in this section, the term "bonds,"
includes, but is not limited to, any bonds, notes, bond anticipation
notes, interim certificates, debentures, certificates of
participation, refunding bonds, or other obligations issued by an
agency pursuant to Part 1 (commencing with Section 33000), and
Section 53583 of the Government Code, pursuant to any charter city
authority or any revenue bond law.
(2) Incur indebtedness payable from prohibited sources of
repayment, which include, but are not limited to, income and revenues
of an agency's redevelopment projects, taxes allocated to the
agency, taxes imposed by the agency pursuant to Section 7280.5 of the
Revenue and Taxation Code, assessments imposed by the agency, loan
repayments made to the agency pursuant to Section 33746, fees or
charges imposed by the agency, other revenues of the agency, and any
contributions or other financial assistance from the state or federal
government.
(3) (A) Refund, restructure, or refinance indebtedness or
obligations that existed as of January 1, 2011, including, but not
limited to, any of the following:
(i) Refund bonds previously issued by the agency or by another
political subdivision of the state, including, but not limited to,
those issued by a city, a housing authority, or a nonprofit
corporation acting on behalf of a city or a housing authority.
(ii) Exercise the right of optional redemption of any of its
outstanding bonds or elect to purchase any of its own outstanding
bonds.
(iii) Modify or amend the terms and conditions, payment schedules,
amortization or maturity dates of any of the agency's bonds or other
obligations that are outstanding or exist as of January 1, 2011.
(B) Notwithstanding the restrictions set forth in this paragraph,
in order to preserve the revenues and assets of an agency with
outstanding bonds that were issued prior to January 1, 2011, that are
secured with credit enhancement issued by a third party credit
provider prior to January 1, 2011, that agency may modify or amend
the terms of existing agreements with that credit provider if the
modification or amendment would avoid or delay the incurrence of a
reimbursement obligation of the agency owing to the credit provider
which is immediately due and payable or which is payable over a
shorter period of time than the scheduled amortization of the bonds.
(4) Take out or accept loans or advances, for any purpose, from
the state or the federal government, any other public agency, or any
private lending institution, or from any other source. For purposes
of this section, the term "loans" include, but are not limited to,
agreements with the community or any other entity for the purpose of
refinancing a redevelopment project and moneys advanced to the agency
by the community or any other entity for the expenses of
redevelopment planning, expenses for dissemination of redevelopment
information, other administrative expenses, and overhead of the
agency.
(5) Execute trust deeds or mortgages on any real or personal
property owned or acquired by it.
(6) Pledge or encumber, for any purpose, any of its revenues or
assets. As used in this part, an agency's "revenues and assets"
include, but are not limited to, agency tax revenues, redevelopment
project revenues, other agency revenues, deeds of trust and mortgages
held by the agency, rents, fees, charges, moneys, accounts
receivable, contracts rights, and other rights to payment of whatever
kind or other real or personal property. As used in this part, to
"pledge or encumber" means to make a commitment of, by the grant of a
lien on and a security interest in, an agency's revenues or assets,
whether by resolution, indenture, trust agreement, loan agreement,
lease, installment sale agreement, reimbursement agreement, mortgage,
deed of trust, pledge agreement, or similar agreement in which the
pledge is provided for or created.
(b) Any actions taken that conflict with this section are void
from the outset and shall have no force or effect.
(c) Notwithstanding subdivision (a), a redevelopment agency may
issue refunding bonds, which are referred to in this part as
Emergency Refunding Bonds, only where all of the following conditions
are met:
(1) The issuance of Emergency Refunding Bonds is the only means
available to the agency to avoid a default on outstanding agency
bonds or lines of credit obtained from a financial institution.
(2) Both the county treasurer and the Treasurer have approved the
issuance of Emergency Refunding Bonds.
(3) Emergency Refunding Bonds are issued only to provide funds for
any single debt service payment that is due prior to October 1,
2011, and that is more than 20 percent larger than a level debt
service payment would be for that bond, or, in the case of a line of
credit obtained from a financial institution, for which the line of
credit expires prior to October 1, 2011, and payment is due.
(4) The principal amount of outstanding agency bonds is not
increased, except if Emergency Refunding Bonds are issued for the
purpose of paying off a line of credit as allowed pursuant to
paragraph (3) and, in that case, only in an amount that corresponds
to the amount of the line of credit payment, as well as the costs of
issuance of the Emergency Refunding Bonds and a reserve fund for the
Emergency Refunding Bonds.
SEC. 5. Section 34163 of the Health and Safety Code is amended to
read:
34163. Notwithstanding Part 1 (commencing with Section 33000),
Part 1.5 (commencing with Section 34000), Part 1.6 (commencing with
Section 34050), and Part 1.7 (commencing with Section 34100), or any
other law, commencing on the effective date of this part, an agency
shall not have the authority to, and shall not, do any of the
following:
(a) Make loans or advances or grant or enter into agreements to
provide funds or provide financial assistance of any sort to any
entity or person for any purpose, including, but not limited to, all
of the following:
(1) Loans of moneys or any other thing of value or commitments to
provide financing to nonprofit organizations to provide those
organizations with financing for the acquisition, construction,
rehabilitation, refinancing, or development of multifamily rental
housing or the acquisition of commercial property for lease, each
pursuant to Chapter 7.5 (commencing with Section 33741) of Part 1.
(2) Loans of moneys or any other thing of value for residential
construction, improvement, or rehabilitation pursuant to Chapter 8
(commencing with Section 33750) of Part 1. These include, but are not
limited to, construction loans to purchasers of residential housing,
mortgage loans to purchasers of residential housing, and loans to
mortgage lenders, or any other entity, to aid in financing pursuant
to Chapter 8 (commencing with Section 33750).
(3) The purchase, by an agency, of mortgage or construction loans
from mortgage lenders or from any other entities.
(b) Enter into contracts with, incur obligations, or make
commitments to, any entity, whether governmental, tribal, or private,
or any individual or groups of individuals for any purpose,
including, but not limited to, loan agreements, passthrough
agreements, regulatory agreements, services contracts, leases,
disposition and development agreements, joint exercise of powers
agreements, contracts for the purchase of capital equipment,
agreements for redevelopment activities, including, but not limited
to, agreements for planning, design, redesign, development,
demolition, alteration, construction, reconstruction, rehabilitation,
site remediation, site development or improvement, removal of
graffiti, land clearance, and seismic retrofits.
(c) (1) Amend or modify existing agreements, obligations, or
commitments with any entity, for any purpose, including, but not
limited to, any of the following:
(A) Renewing or extending term of leases or other agreements,
except that the agency may extend lease space for its own use to a
date not to exceed six months after the effective date of the act
adding this part and for a rate no more than 5 percent above the rate
the agency currently pays on a monthly basis.
(B) Modifying terms and conditions of existing agreements,
obligations, or commitments.
(C) Forgiving all or any part of the balance owed to the agency on
existing loans or extend the term or change the terms and conditions
of existing loans.
(D) Increasing its deposits to the Low and Moderate Income Housing
Fund created pursuant to Section 33334.3 beyond the minimum level
that applied to it as of January 1, 2011.
(E) Transferring funds out of the Low and Moderate Income Housing
Fund, except to meet the minimum housing-related obligations that
existed as of January 1, 2011, and to make required payments under
Sections 33690 and 33690.5.
(2) Notwithstanding the restrictions set forth in this
subdivision, in order to preserve the revenues and assets of an
agency with outstanding bonds that were issued prior to January 1,
2011, that are secured with credit enhancement issued by a third
party credit provider prior to January 1, 2011, that agency may seek
the extension of the credit enhancement and, in connection therewith,
may amend or modify the terms of existing agreements with the credit
provider if the extension, amendment, or modification would avoid or
delay the incurrence of a reimbursement obligation of the agency
owing to the credit provider which is immediately due or payable or
which is payable over a shorter period of time than the scheduled
amortization of the bonds.
(d) Dispose of assets by sale, long-term lease, gift, grant,
exchange, transfer, assignment, or otherwise, for any purpose,
including, but not limited to, any of the following:
(1) Assets, including, but not limited to, real property, deeds of
trust, and mortgages held by the agency, moneys, accounts
receivable, contract rights, proceeds of insurance claims, grant
proceeds, settlement payments, rights to receive rents, and any other
rights to payment of whatever kind.
(2) Real property, including, but not limited to, land, land under
water and waterfront property, buildings, structures, fixtures, and
improvements on the land, any property appurtenant to, or used in
connection with, the land, every estate, interest, privilege,
easement, franchise, and right in land, including rights-of-way,
terms for years, and liens, charges, or encumbrances by way of
judgment, mortgage, or otherwise, and the indebtedness secured by the
liens.
(e) Acquire real property by any means for any purpose, including,
but not limited to, the purchase, lease, or exercising of an option
to purchase or lease, exchange, subdivide, transfer, assume, obtain
option upon, acquire by gift, grant, bequest, devise, or otherwise
acquire any real property, any interest in real property, and any
improvements on it, including the repurchase of developed property
previously owned by the agency and the acquisition of real property
by eminent domain; provided, however, that nothing in this
subdivision is intended to prohibit the acceptance or transfer of
title for real property acquired prior to the effective date of this
part.
(f) Transfer, assign, vest, or delegate any of its assets, funds,
rights, powers, ownership interests, or obligations for any purpose
to any entity, including, but not limited to, the community, the
legislative body, another member of a joint powers authority, a
trustee, a receiver, a partner entity, another agency, a nonprofit
corporation, a contractual counterparty, a public body, a
limited-equity housing cooperative, the state, a political
subdivision of the state, the federal government, any private entity,
or an individual or group of individuals.
(g) Accept financial or other assistance from the state or federal
government or any public or private source if the acceptance
necessitates or is conditioned upon the agency incurring indebtedness
as that term is described in this part.
SEC. 6. Section 34165 of the Health and Safety Code is amended to
read:
34165. (a) Notwithstanding Part 1 (commencing with Section
33000), Part 1.5 (commencing with Section 34000), Part 1.6
(commencing with Section 34050), and Part 1.7 (commencing with
Section 34100), or any other law, commencing on the effective date of
this part, an agency shall lack the authority to, and shall not, do
any of the following:
(1) Enter into new partnerships, become a member in a joint powers
authority, form a joint powers authority, create new entities, or
become a member of any entity of which it is not currently a member,
nor take on nor agree to any new duties or obligations as a member or
otherwise of any entity to which the agency belongs or with which it
is in any way associated.
(2) Impose new assessments pursuant to Section 7280.5 of the
Revenue and Taxation Code.
(3) Increase the pay, benefits, or contributions of any sort for
any officer, employee, consultant, contractor, or any other goods or
service provider that had not previously been contracted.
(4) Provide optional or discretionary bonuses to any officers,
employees, consultants, contractors, or any other service or goods
providers.
(5) Increase numbers of staff employed by the agency beyond the
number employed as of January 1, 2011.
(6) Bring an action pursuant to Chapter 9 (commencing with Section
860) of Title 10 of Part 2 of the Code of Civil Procedure to
determine the validity of any issuance or proposed issuance of
revenue bonds under this chapter and the legality and validity of all
proceedings previously taken or proposed in a resolution of an
agency to be taken for the authorization, issuance, sale, and
delivery of the revenue bonds and for the payment of the principal
thereof and interest thereon.
(7) Begin any condemnation proceeding or begin the process to
acquire real property by eminent domain.
(8) Prepare or have prepared a draft environmental impact report.
This subdivision shall not alter or eliminate any requirements of the
California Environmental Quality Act (Division 13 (commencing with
Section 21000) of the Public Resources Code).
(b) This section, including, but not limited to paragraphs (3) to
(5), inclusive, of subdivision (a), shall not be construed to
prohibit an agency from complying with, or from fulfilling, its
obligations under a memorandum of understanding with an employee
organization representing employees of a redevelopment agency adopted
pursuant to the Meyers-Milias-Brown Act or from providing the
appropriate established compensation to an employee that has been
reassigned or promoted to fill an existing vacancy.
SEC. 7. Section 34167 of the Health and Safety Code is amended to
read:
34167. (a) This part is intended to preserve, to the maximum
extent possible, the revenues and assets of redevelopment agencies so
that those assets and revenues that are not needed to pay for
enforceable obligations may be used by local governments to fund core
governmental services including police and fire protection services
and schools. It is the intent of the Legislature that redevelopment
agencies take no actions that would further deplete the corpus of the
agencies' funds regardless of their original source. All provisions
of this part shall be construed as broadly as possible to support
this intent and to restrict the expenditure of funds to the fullest
extent possible.
(b) For purposes of this part, "agency" or "redevelopment agency"
means a redevelopment agency created or formed pursuant to Part 1
(commencing with Section 33000) or its predecessor or a community
development commission created or formed pursuant to Part 1.7
(commencing with Section 34100) or its predecessor.
(c) Nothing in this part in any way impairs the authority of a
community development commission, other than in its authority to act
as a redevelopment agency, to take any actions in its capacity as a
housing authority or for any other community development purpose of
the jurisdiction in which it operates.
(d) For purposes of this part, "enforceable obligation" means any
of the following:
(1) Bonds, as defined by Section 33602 and bonds issued pursuant
to Section 5850 of the Government Code, including the required debt
service, reserve set-asides and any other payments required under the
indenture or similar documents governing the issuance of the
outstanding bonds of the redevelopment agency.
(2) Loans of moneys borrowed by the redevelopment agency for a
lawful purpose, including, but not limited to, moneys borrowed from
the Low and Moderate Income Housing Fund, to the extent they are
legally required to be repaid pursuant to a required repayment
schedule or other mandatory loan terms.
(3) Payments required by the federal government, preexisting
obligations to the state or obligations imposed by state law, other
than passthrough payments that are made by the county
auditor-controller pursuant to Section 34183, or legally enforceable
payments required in connection with the agencies' employees,
including, but not limited to, pension payments, pension obligation
debt service, and unemployment payments.
(4) Judgments or settlements entered by a competent court of law
or binding arbitration decisions against the former redevelopment
agency, other than passthrough payments that are made by the county
auditor-controller pursuant to Section 34183. Along with the
successor agency, the oversight board shall have the authority and
standing to appeal any judgment or to set aside any settlement or
arbitration decision.
(5) Any legally binding and enforceable agreement or contract that
is not otherwise void as violating the debt limit or public policy.
(6) Contracts or agreements necessary for the continued
administration or operation of the redevelopment agency to the extent
permitted by this part, including, but not limited to, agreements to
purchase or rent office space, equipment and supplies, and
pay-related expenses pursuant to Section 33127 and for carrying
insurance pursuant to Section 33134.
(e) To the extent that any provision of Part 1 (commencing with
Section 33000), Part 1.5 (commencing with Section 34000), Part 1.6
(commencing with Section 34050), or Part 1.7 (commencing with Section
34100) conflicts with this part, the provisions of this part shall
control. Further, if any provision in Part 1 (commencing with Section
33000), Part 1.5 (commencing with Section 34000), Part 1.6
(commencing with Section 34050), or Part 1.7 (commencing with Section
34100) provides an authority that this part is restricting or
eliminating, the restriction and elimination provisions of this part
shall control.
(f) Nothing in this part shall be construed to interfere with a
redevelopment agency's authority, pursuant to enforceable obligations
as defined in this chapter, to (1) make payments due, (2) enforce
existing covenants and obligations, or (3) perform its obligations.
(g) The existing terms of any memorandum of understanding with an
employee organization representing employees of a redevelopment
agency adopted pursuant to the Meyers-Milias-Brown Act that is in
force on the effective date of this part shall continue in force
until September 30, 2011, unless a new agreement is reached with a
recognized employee organization prior to that date, or if the
provisions of Part 1.85 (commencing with Section 34170) are not
operative on that date, until the date that the provisions of Chapter
7 (commencing with Section 34190) of Part 1.85 apply, or until the
memorandum of understanding would no longer remain in force pursuant
to its own terms, whichever date is earlier.
(h) After the enforceable obligation payment schedule is adopted
pursuant to Section 34169, or after 60 days from the effective date
of this part, whichever is sooner, the agency shall not make a
payment unless it is listed in an adopted enforceable obligation
payment schedule, other than payments required to meet obligations
with respect to bonded indebtedness.
(i) The Department of Finance and the Controller shall each have
the authority to require any documents associated with the
enforceable obligations to be provided to them in a manner of their
choosing. Any taxing entity, the department, and the Controller shall
each have standing to file a judicial action to prevent a violation
under this part and to obtain injunctive or other appropriate relief.
(j) For purposes of this part, "auditor-controller" means the
officer designated in subdivision (e) of Section 24000 of the
Government Code.
SEC. 8. Section 34171 of the Health and Safety Code is amended to
read:
34171. The following terms shall have the following meanings:
(a) "Administrative budget" means the budget for administrative
costs of the successor agencies as provided in subdivision (j) of
Section 34177.
(b) "Administrative cost allowance" means an amount that, subject
to the approval of the oversight board, is payable from property tax
revenues of up to 5 percent of the property tax allocated to the
successor agency for the 2011-12 fiscal year and up to 3 percent of
the property tax allocated to the Redevelopment Obligation Retirement
Fund money that is allocated to the successor agency for each fiscal
year thereafter; provided, however, that the amount shall not be
less than two hundred fifty thousand dollars ($250,000) for any
fiscal year or such lesser amount as agreed to by the successor
agency. However, the allowance amount shall exclude any
administrative costs that can be paid from bond proceeds or from
sources other than property tax.
(c) "Designated local authority" shall mean a public entity formed
pursuant to subdivision (d) of Section 34173.
(d) (1) "Enforceable obligation" means any of the following:
(A) Bonds, as defined by Section 33602 and bonds issued pursuant
to Section 58383 of the Government Code, including the required debt
service, reserve set-asides, and any other payments required under
the indenture or similar documents governing the issuance of the
outstanding bonds of the former redevelopment agency.
(B) Loans of moneys borrowed by the redevelopment agency for a
lawful purpose, to the extent they are legally required to be repaid
pursuant to a required repayment schedule or other mandatory loan
terms.
(C) Payments required by the federal government, preexisting
obligations to the state or obligations imposed by state law, other
than passthrough payments that are made by the county
auditor-controller pursuant to Section 34183, or legally enforceable
payments required in connection with the agencies' employees,
including, but not limited to, pension payments, pension obligation
debt service, unemployment payments, or other obligations conferred
through a collective bargaining agreement.
(D) Judgments or settlements entered by a competent court of law
or binding arbitration decisions against the former redevelopment
agency, other than passthrough payments that are made by the county
auditor-controller pursuant to Section 34183. Along with the
successor agency, the oversight board shall have the authority and
standing to appeal any judgment or to set aside any settlement or
arbitration decision.
(E) Any legally binding and enforceable agreement or contract that
is not otherwise void as violating the debt limit or public policy.
However, nothing in this act shall prohibit either the successor
agency, with the approval or at the direction of the oversight board,
or the oversight board itself from terminating any existing
agreements or contracts and providing any necessary and required
compensation or remediation for such termination.
(F) Contracts or agreements necessary for the administration or
operation of the successor agency, in accordance with this part,
including, but not limited to, agreements to purchase or rent office
space, equipment and supplies, and pay-related expenses pursuant to
Section 33127 and for carrying insurance pursuant to Section 33134.
(G) Amounts borrowed from or payments owing to the Low and
Moderate Income Housing Fund of a redevelopment agency, which had
been deferred as of the effective date of the act adding this part;
provided, however, that the repayment schedule is approved by the
oversight board.
(2) For purposes of this part, "enforceable obligation" does not
include any agreements, contracts, or arrangements between the city,
county, or city and county that created the redevelopment agency and
the former redevelopment agency. However, written agreements entered
into (A) at the time of issuance, but in no event later than December
31, 2010, of indebtedness obligations, and (B) solely for the
purpose of securing or repaying those indebtedness obligations may be
deemed enforceable obligations for purposes of this part.
Notwithstanding this paragraph, loan agreements entered into between
the redevelopment agency and the city, county, or city and county
that created it, within two years of the date of creation of the
redevelopment agency, or within two years of the date of the creation
of a project area if the loan is specific to that project area, and
any obligations imposed by paragraph (1) of subdivision (d) of
Section 33691 may be deemed to be enforceable obligations.
(3) Contracts or agreements between the former redevelopment
agency and other public agencies, to perform services or provide
funding for governmental or private services or capital projects
outside of redevelopment project areas that do not provide benefit to
the redevelopment project and thus were not properly authorized
under Part 1 (commencing with Section 33000) shall be deemed void on
the effective date of this part; provided, however, that such
contracts or agreements for the provision of housing properly
authorized under Part 1 (commencing with Section 33000) shall not be
deemed void.
(e) "Indebtedness obligations" means bonds, notes, certificates of
participation, or other evidence of indebtedness, issued or
delivered by the redevelopment agency, or by a joint exercise of
powers authority created by the redevelopment agency, to third-party
investors or bondholders to finance or refinance redevelopment
projects undertaken by the redevelopment agency in compliance with
the Community Redevelopment Law (Part 1 (commencing with Section
33000)).
(f) "Oversight board" shall mean each entity established pursuant
to Section 34179.
(g) "Recognized obligation" means an obligation listed in the
Recognized Obligation Payment Schedule.
(h) "Recognized Obligation Payment Schedule" means the document
setting forth the minimum payment amounts and due dates of payments
required by enforceable obligations for each six-month fiscal period
as provided in subdivision (m) of Section 34177.
(i) "School entity" means any entity defined as such in
subdivision (f) of Section 95 of the Revenue and Taxation Code.
(j) "Successor agency" means the county, city, or city and county
that authorized the creation of each redevelopment agency or another
entity as provided in Section 34173.
(k) "Taxing entities" means cities, counties, a city and county,
special districts, and school entities, as defined in subdivision (f)
of Section 95 of the Revenue and Taxation Code, that receive
passthrough payments and distributions of property taxes pursuant to
the provisions of this part.
SEC. 9. Section 34176 of the Health and Safety Code is amended to
read:
34176. (a) The city, county, or city and county that authorized
the creation of a redevelopment agency may elect to retain the
housing assets and functions previously performed by the
redevelopment agency. If a city, county, or city and county elects to
retain the responsibility for performing housing functions
previously performed by a redevelopment agency, all rights, powers,
duties, and obligations associated with the housing activities of the
agency, including any amounts on deposit in the Low and Moderate
Income Housing Fund, shall be transferred to the city, county, or
city and county. Any funds transferred to the city, county, or city
and county pursuant to this subdivision shall be maintained in a
separate Low and Moderate Income Housing Fund and expended pursuant
to the provisions of the Community Redevelopment Law relating to the
Low and Moderate Income Housing Fund.
(b) If a city, county, or city and county does not elect to retain
the responsibility for performing housing functions previously
performed by a redevelopment agency, all rights, powers, assets,
liabilities, duties, and obligations associated with the housing
activities of the agency, including any amounts in the Low and
Moderate Income Housing Fund, shall be transferred as follows:
(1) Where there is one local housing authority in the territorial
jurisdiction of the former redevelopment agency, to that local
housing authority.
(2) Where there is more than one local housing authority in the
territorial jurisdiction of the former redevelopment agency, to the
local housing authority selected by the city, county, or city and
county that authorized the creation of the redevelopment agency.
(3) Where there is no local housing authority in the territorial
jurisdiction of the former redevelopment agency or where the local
housing authority selected does not accept the responsibility for
performing housing functions previously performed by the former
redevelopment agency, to the Department of Housing and Community
Development.
(c) Commencing on the operative date of this part, the entity
assuming the housing functions formerly performed by the
redevelopment agency shall enforce affordability covenants and
perform related activities pursuant to applicable provisions of the
Community Redevelopment Law (Part 1 (commencing with Section 33000),
including, but not limited to, Section 33418.
SEC. 10. Section 34177 of the Health and Safety Code is amended to
read:
34177. Successor agencies are required to do all of the
following:
(a) Continue to make payments due for enforceable obligations.
(1) On and after October 1, 2011, and until a Recognized
Obligation Payment Schedule becomes operative, only payments required
pursuant to an enforceable obligations payment schedule shall be
made. The initial enforceable obligation payment schedule shall be
the last schedule adopted by the redevelopment agency under Section
34169. However, payments associated with obligations excluded from
the definition of enforceable obligations by paragraph (2) of
subdivision (d) of Section 34171 shall be excluded from the
enforceable obligations payment schedule and be removed from the last
schedule adopted by the redevelopment agency under Section 34169
prior to the successor agency adopting it as its enforceable
obligations payment schedule pursuant to this subdivision. The
enforceable obligation payment schedule may be amended by the
successor agency at any public meeting and shall be subject to the
approval of the oversight board as soon as the board has sufficient
members to form a quorum.
(2) The Department of Finance and the Controller shall each have
the authority to require any documents associated with the
enforceable obligations to be provided to them in a manner of their
choosing. Any taxing entity, the department, and the Controller shall
each have standing to file a judicial action to prevent a violation
under this part and to obtain injunctive or other appropriate relief.
(3) Commencing on January 1, 2012, only those payments listed in
the Recognized Obligation Payment Schedule may be made by the
successor agency from the funds specified in the Recognized
Obligation Payment Schedule. In addition, commencing January 1, 2012,
the Recognized Obligation Payment Schedule shall supersede the
Statement of Indebtedness, which shall no longer be prepared nor have
any effect under the Community Redevelopment Law.
(4) Nothing in the act adding this part is to be construed as
preventing a successor agency, with the prior approval of the
oversight board, as described in Section 34179, from making payments
for enforceable obligations from sources other than those listed in
the Recognized Obligation Payment Schedule.
(5) From October 1, 2011, to July 1, 2012, a successor agency
shall have no authority and is hereby prohibited from accelerating
payment or making any lump-sum payments that are intended to prepay
loans unless such accelerated repayments were required prior to the
effective date of this part.
(b) Maintain reserves in the amount required by indentures, trust
indentures, or similar documents governing the issuance of
outstanding redevelopment agency bonds.
(c) Perform obligations required pursuant to any enforceable
obligation.
(d) Remit unencumbered balances of redevelopment agency funds to
the county auditor-controller for distribution to the taxing
entities. In making the distribution, the county auditor-controller
shall utilize the same methodology for allocation and distribution of
property tax revenues provided in Section 34188.
(e) Dispose of assets and properties of the former redevelopment
agency as directed by the oversight board; provided, however, that
the oversight board may instead direct the successor agency to
transfer ownership of certain assets pursuant to subdivision (a) of
Section 34181. The disposal is to be done expeditiously and in a
manner aimed at maximizing value. Proceeds from asset sales and
related funds that are no longer needed for approved development
projects or to otherwise wind down the affairs of the agency, each as
determined by the
oversight board, shall be transferred to the county
auditor-controller for distribution as property tax proceeds under
Section 34188.
(f) Enforce all former redevelopment agency rights for the benefit
of the taxing entities, including, but not limited to, continuing to
collect loans, rents, and other revenues that were due to the
redevelopment agency.
(g) Effectuate transfer of housing functions and assets to the
appropriate entity designated pursuant to Section 34176.
(h) Expeditiously wind down the affairs of the redevelopment
agency pursuant to the provisions of this part and in accordance with
the direction of the oversight board.
(i) Continue to oversee development of properties until the
contracted work has been completed or the contractual obligations of
the former redevelopment agency can be transferred to other parties.
Bond proceeds shall be used for the purposes for which bonds were
sold unless the purposes can no longer be achieved, in which case,
the proceeds may be used to defease the bonds.
(j) Prepare a proposed administrative budget and submit it to the
oversight board for its approval. The proposed administrative budget
shall include all of the following:
(1) Estimated amounts for successor agency administrative costs
for the upcoming six-month fiscal period.
(2) Proposed sources of payment for the costs identified in
paragraph (1).
(3) Proposals for arrangements for administrative and operations
services provided by a city, county, city and county, or other
entity.
(k) Provide administrative cost estimates, from its approved
administrative budget that are to be paid from property tax revenues
deposited in the Redevelopment Property Tax Trust Fund, to the county
auditor-controller for each six-month fiscal period.
(l) (1) Before each six-month fiscal period, prepare a Recognized
Obligation Payment Schedule in accordance with the requirements of
this paragraph. For each recognized obligation, the Recognized
Obligation Payment Schedule shall identify one or more of the
following sources of payment:
(A) Low and Moderate Income Housing Fund.
(B) Bond proceeds.
(C) Reserve balances.
(D) Administrative cost allowance.
(E) The Redevelopment Property Tax Trust Fund, but only to the
extent no other funding source is available or when payment from
property tax revenues is required by an enforceable obligation or by
the provisions of this part.
(F) Other revenue sources, including rents, concessions, asset
sale proceeds, interest earnings, and any other revenues derived from
the former redevelopment agency, as approved by the oversight board
in accordance with this part.
(2) A Recognized Obligation Payment Schedule shall not be deemed
valid unless all of the following conditions have been met:
(A) A draft Recognized Obligation Payment Schedule is prepared by
the successor agency for the enforceable obligations of the former
redevelopment agency by November 1, 2011. From October 1, 2011, to
July 1, 2012, the initial draft of that schedule shall project the
dates and amounts of scheduled payments for each enforceable
obligation for the remainder of the time period during which the
redevelopment agency would have been authorized to obligate property
tax increment had such a redevelopment agency not been dissolved, and
shall be reviewed and certified, as to its accuracy, by an external
auditor designated pursuant to Section 34182.
(B) The certified Recognized Obligation Payment Schedule is
submitted to and duly approved by the oversight board.
(C) A copy of the approved Recognized Obligation Payment Schedule
is submitted to the county auditor-controller and both the Controller'
s office and the Department of Finance and be posted on the successor
agency's Internet Web site.
(3) The Recognized Obligation Payment Schedule shall be forward
looking to the next six months. The first Recognized Obligation
Payment Schedule shall be submitted to the Controller's office and
the Department of Finance by December 15, 2011, for the period of
January 1, 2012, to June 30, 2012, inclusive. Former redevelopment
agency enforceable obligation payments due, and reasonable or
necessary administrative costs due or incurred, prior to January 1,
2012, shall be made from property tax revenues received in the spring
of 2011 property tax distribution, and from other revenues and
balances transferred to the successor agency.
SEC. 11. Section 34179 of the Health and Safety Code is amended to
read:
34179. (a) Each successor agency shall have an oversight board
composed of seven members. The members shall elect one of their
members as the chairperson and shall report the name of the
chairperson and other members to the Department of Finance on or
before January 1, 2012. Members shall be selected as follows:
(1) One member appointed by the county board of supervisors.
(2) One member appointed by the mayor for the city that formed the
redevelopment agency.
(3) One member appointed by the largest special district, by
property tax share, with territory in the territorial jurisdiction of
the former redevelopment agency, which is of the type of special
district that is eligible to receive property tax revenues pursuant
to Section 34188.
(4) One member appointed by the county superintendent of education
to represent schools if the superintendent is elected. If the county
superintendent of education is appointed, then the appointment made
pursuant to this paragraph shall be made by the county board of
education.
(5) One member appointed by the Chancellor of the California
Community Colleges to represent community college districts in the
county.
(6) One member of the public appointed by the county board of
supervisors.
(7) One member representing the employees of the former
redevelopment agency appointed by the mayor or chair of the board of
supervisors, as the case may be, from the recognized employee
organization representing the largest number of former redevelopment
agency employees employed by the successor agency at that time. In
voting to approve a contract as an enforceable obligation, a member
appointed pursuant to this paragraph shall not be deemed to be
interested in the contract by virtue of being an employee of the
successor agency or community for purposes of Section 1090 of the
Government Code.
(8) If the county or a joint powers agency formed the
redevelopment agency, then the largest city by acreage in the
territorial jurisdiction of the former redevelopment agency may
select one member. If there are no cities with territory in a project
area of the redevelopment agency, the county superintendent of
education may appoint an additional member to represent the public.
(9) If there are no special districts of the type that are
eligible to receive property tax pursuant to Section 34188, within
the territorial jurisdiction of the former redevelopment agency, then
the county may appoint one member to represent the public.
(10) Where a redevelopment agency was formed by an entity that is
both a charter city and a county, the oversight board shall be
composed of seven members selected as follows: three members
appointed by the mayor of the city, where such appointment is subject
to confirmation by the county board of supervisors, one member
appointed by the largest special district, by property tax share,
with territory in the territorial jurisdiction of the former
redevelopment agency, which is the type of special district that is
eligible to receive property tax revenues pursuant to Section 34188,
one member appointed by the county superintendent of education to
represent schools, one member appointed by the Chancellor of the
California Community Colleges to represent community college
districts, and one member representing employees of the former
redevelopment agency appointed by the mayor of the city where such an
appointment is subject to confirmation by the county board of
supervisors, to represent the largest number of former redevelopment
agency employees employed by the successor agency at that time.
(b) The Governor may appoint individuals to fill any oversight
board member position described in subdivision (a) that has not been
filled by January 15, 2012, or any member position that remains
vacant for more than 60 days.
(c) The oversight board may direct the staff of the successor
agency to perform work in furtherance of the oversight board's duties
and responsibilities under this part. The successor agency shall pay
for all of the costs of meetings of the oversight board and may
include such costs in its administrative budget. Oversight board
members shall serve without compensation or reimbursement for
expenses.
(d) Oversight board members shall have personal immunity from suit
for their actions taken within the scope of their responsibilities
as oversight board members.
(e) A majority of the total membership of the oversight board
shall constitute a quorum for the transaction of business. A majority
vote of the total membership of the oversight board is required for
the oversight board to take action. The oversight board shall be
deemed to be a local entity for purposes of the Ralph M. Brown Act,
the California Public Records Act, and the Political Reform Act of
1974.
(f) All notices required by law for proposed oversight board
actions shall also be posted on the successor agency's Internet Web
site or the oversight board's Internet Web site.
(g) Each member of an oversight board shall serve at the pleasure
of the entity that appointed such member.
(h) The Department of Finance may review an oversight board action
taken pursuant to the act adding this part. As such, all oversight
board actions shall not be effective for three business days, pending
a request for review by the department. Each oversight board shall
designate an official to whom the department may make such requests
and who shall provide the department with the telephone number and
e-mail contact information for the purpose of communicating with the
department pursuant to this subdivision. In the event that the
department requests a review of a given oversight board action, it
shall have 10 days from the date of its request to approve the
oversight board action or return it to the oversight board for
reconsideration and such oversight board action shall not be
effective until approved by the department. In the event that the
department returns the oversight board action to the oversight board
for reconsideration, the oversight board shall resubmit the modified
action for department approval and the modified oversight board
action shall not become effective until approved by the department.
(i) Oversight boards shall have fiduciary responsibilities to
holders of enforceable obligations and the taxing entities that
benefit from distributions of property tax and other revenues
pursuant to Section 34188. Further, the provisions of Division 4
(commencing with Section 1000) of the Government Code shall apply to
oversight boards. Notwithstanding Section 1099 of the Government
Code, or any other law, any individual may simultaneously be
appointed to up to five oversight boards and may hold an office in a
city, county, city and county, special district, school district, or
community college district.
(j) Commencing on and after July 1, 2016, in each county where
more than one oversight board was created by operation of the act
adding this part, there shall be only one oversight board appointed
as follows:
(1) One member may be appointed by the county board of
supervisors.
(2) One member may be appointed by the city selection committee
established pursuant to Section 50270 of the Government Code. In a
city and county, the mayor may appoint one member.
(3) One member may be appointed by the independent special
district selection committee established pursuant to Section 56332 of
the Government Code, for the types of special districts that are
eligible to receive property tax revenues pursuant to Section 34188.
(4) One member may be appointed by the county superintendent of
education to represent schools if the superintendent is elected. If
the county superintendent of education is appointed, then the
appointment made pursuant to this paragraph shall be made by the
county board of education.
(5) One member may be appointed by the Chancellor of the
California Community Colleges to represent community college
districts in the county.
(6) One member of the public may be appointed by the county board
of supervisors.
(7) One member may be appointed by the recognized employee
organization representing the largest number of successor agency
employees in the county.
(k) The Governor may appoint individuals to fill any oversight
board member position described in subdivision (j) that has not been
filled by July 15, 2016, or any member position that remains vacant
for more than 60 days.
(l) Commencing on and after July 1, 2016, in each county where
only one oversight board was created by operation of the act adding
this part, then there will be no change to the composition of that
oversight board as a result of the operation of subdivision (b).
(m) Any oversight board for a given successor agency shall cease
to exist when all of the indebtedness of the dissolved redevelopment
agency has been repaid.
SEC. 12. Section 34181 of the Health and Safety Code is amended to
read:
34181. The oversight board shall direct the successor agency to
do all of the following:
(a) Dispose of all assets and properties of the former
redevelopment agency that were funded by tax increment revenues of
the dissolved redevelopment agency; provided, however, that the
oversight board may instead direct the successor agency to transfer
ownership of those assets that were constructed and used for a
governmental purpose, such as roads, school buildings, parks, and
fire stations, to the appropriate public jurisdiction pursuant to any
existing agreements relating to the construction or use of such an
asset. Any compensation to be provided to the successor agency for
the transfer of the asset shall be governed by the agreements
relating to the construction or use of that asset. Disposal shall be
done expeditiously and in a manner aimed at maximizing value.
(b) Cease performance in connection with and terminate all
existing agreements that do not qualify as enforceable obligations.
(c) Transfer housing responsibilities and all rights, powers,
duties, and obligations, including any amounts on deposit in the Low
and Moderate Income Housing Fund, to the appropriate entity pursuant
to Section 34176.
(d) Terminate any agreement, between the dissolved redevelopment
agency and any public entity located in the same county, obligating
the redevelopment agency to provide funding for any debt service
obligations of the public entity or for the construction, or
operation of facilities owned or operated by such public entity, in
any instance where the oversight board has found that early
termination would be in the best interests of the taxing entities.
(e) Determine whether any contracts, agreements, or other
arrangements between the dissolved redevelopment agency and any
private parties should be terminated or renegotiated to reduce
liabilities and increase net revenues to the taxing entities, and
present proposed termination or amendment agreements to the oversight
board for its approval. The board may approve any amendments to or
early termination of such agreements where it finds that amendments
or early termination would be in the best interests of the taxing
entities.
SEC. 13. Section 34182 of the Health and Safety Code is amended to
read:
34182. (a) (1) The county auditor-controller shall conduct or
cause to be conducted an agreed-upon procedures audit of each
redevelopment agency in the county that is subject to this part, to
be completed by March 1, 2012.
(2) The purpose of the audits shall be to establish each
redevelopment agency's assets and liabilities, to document and
determine each redevelopment agency's passthrough payment obligations
to other taxing agencies, and to document and determine both the
amount and the terms of any indebtedness incurred by the
redevelopment agency and certify the initial Recognized Obligation
Payment Schedule.
(3) The county auditor-controller may charge the Redevelopment
Property Tax Trust Fund for any costs incurred by the county
auditor-controller pursuant to this part.
(b) By March 15, 2012, the county auditor-controller shall provide
the Controller's office a copy of all audits performed pursuant to
this section. The county auditor-controller shall maintain a copy of
all documentation and working papers for use by the Controller.
(c) (1) The county auditor-controller shall determine the amount
of property taxes that would have been allocated to each
redevelopment agency in the county had the redevelopment agency not
been dissolved pursuant to the operation of the act adding this part.
These amounts are deemed property tax revenues within the meaning of
subdivision (a) of Section 1 of Article XIII A of the California
Constitution and are available for allocation and distribution in
accordance with the provisions of the act adding this part. The
county auditor-controller shall calculate the property tax revenues
using current assessed values on the last equalized roll on August
20, pursuant to Section 2052 of the Revenue and Taxation Code, and
pursuant to statutory formulas or contractual agreements with other
taxing agencies, as of the effective date of this section, and shall
deposit that amount along with unitary and supplemental tax increment
due to the former redevelopment agency in the Redevelopment Property
Tax Trust Fund.
(2) Each county auditor-controller shall administer the
Redevelopment Property Tax Trust Fund for the benefit of the holders
of former redevelopment agency enforceable obligations and the taxing
entities that receive passthrough payments and distributions of
property taxes pursuant to this part.
(3) In connection with the allocation and distribution by the
county auditor-controller of property tax revenues deposited in the
Redevelopment Property Tax Trust Fund, in compliance with this part,
the county auditor-controller shall prepare estimates of amounts to
be allocated and distributed, and provide those estimates to both the
entities receiving the distributions and the Department of Finance,
no later than November 1 and May 1 of each year.
(4) Each county auditor-controller shall disburse proceeds of
asset sales or reserve balances, which have been received from the
successor agencies pursuant to Sections 34177 and 34187, to the
taxing entities. In making such a distribution, the county
auditor-controller shall utilize the same methodology for allocation
and distribution of property tax revenues provided in Section 34188.
(d) By October 1, 2012, the county auditor-controller shall report
the following information to the Controller's office and the
Director of Finance:
(1) The sums of property tax revenues remitted to the
Redevelopment Property Tax Trust Fund related to each former
redevelopment agency.
(2) The sums of property tax revenues remitted to each agency
under paragraph (1) of subdivision (a) of Section 34183.
(3) The sums of property tax revenues remitted to each successor
agency pursuant to paragraph (2) of subdivision (a) of Section 34183.
(4) The sums of property tax revenues paid to each successor
agency pursuant to paragraph (3) of subdivision (a) of Section 34183.
(5) The sums paid to each city, county, and special district, and
the total amount allocated for schools pursuant to paragraph (4) of
subdivision (a) of Section 34183.
(6) Any amounts deducted from other distributions pursuant to
subdivision (b) of Section 34183.
(e) A county auditor-controller may charge the Redevelopment
Property Tax Trust Fund for the costs of administering the provisions
of this part.
(f) The Controller may audit and review any county
auditor-controller action taken pursuant to the act adding this part.
As such, all county auditor-controller actions shall not be
effective for three business days, pending a request for review by
the Controller. In the event that the Controller requests a review of
a given county auditor-controller action, he or she shall have 10
days from the date of his or her request to approve the county
auditor-controller's action or return it to the county
auditor-controller for reconsideration and such county
auditor-controller action shall not be effective until approved by
the Controller. In the event that the Controller returns the county
auditor-controller's action to the county auditor-controller for
reconsideration, the county auditor-controller must resubmit the
modified action for Controller approval and such modified county
auditor-controller action shall not become effective until approved
by the Controller.
SEC. 14. Section 34183 of the Health and Safety Code is amended to
read:
34183. (a) Notwithstanding any other law, from October 1, 2011,
to July 1, 2012, and for each fiscal year thereafter, the county
auditor-controller shall, after deducting administrative costs
allowed under Section 34182 and Section 95.3 of the Revenue and
Taxation Code, allocate moneys in each Redevelopment Property Tax
Trust Fund as follows:
(1) Subject to any prior deductions required by subdivision (b),
first, the county auditor-controller shall remit from the
Redevelopment Property Tax Trust Fund to each local agency and school
entity an amount of property tax revenues in an amount equal to that
which would have been received under Section 33401, 33492.140,
33607, 33607.5, 33607.7, or 33676, as those sections read on January
1, 2011, or pursuant to any passthrough agreement between a
redevelopment agency and a taxing jurisdiction that was entered into
prior to January 1, 1994, that would be in force during that fiscal
year, had the redevelopment agency existed at that time. The amount
of the payments made pursuant to this paragraph shall be calculated
solely on the basis of passthrough payment obligations, existing
prior to the effective date of this part and continuing as
obligations of successor agencies, shall occur no later than January
16, 2012, and no later than June 1, 2012, and each January 16 and
June 1 thereafter. Notwithstanding subdivision (e) of Section 33670,
that portion of the taxes in excess of the amount identified in
subdivision (a) of Section 33670, which are attributable to a tax
rate levied by a taxing agency for the purpose of producing revenues
in an amount sufficient to make annual repayments of the principal
of, and the interest on, any bonded indebtedness for the acquisition
or improvement of real property shall be allocated to, and when
collected shall be paid into, the fund of that taxing agency.
(2) Second, on January 16, 2012, and June 1, 2012, and each
January 16 and June 1 thereafter, to each successor agency for
payments listed in its Recognized Obligation Payment Schedule for the
six-month fiscal period beginning January 1, 2012, or July 1, 2012,
and each January 16 and June 1 thereafter, in the following order of
priority:
(A) Debt service payments scheduled to be made for tax allocation
bonds.
(B) Payments scheduled to be made on revenue bonds, but only to
the extent the revenues pledged for them are insufficient to make the
payments and only where the agency's tax increment revenues were
also pledged for the repayment of the bonds.
(C) Payments scheduled for other debts and obligations listed in
the Recognized Obligation Payment Schedule that are required to be
paid from former tax increment revenue.
(3) Third, on January 16, 2012, and June 1, 2012, and each January
16 and June 1 thereafter, to each successor agency for the
administrative cost allowance, as defined in Section 34171, for
administrative costs set forth in an approved administrative budget
for those payments required to be paid from former tax increment
revenues.
(4) Fourth, on January 16, 2012, and June 1, 2012, and each
January 16 and June 1 thereafter, any moneys remaining in the
Redevelopment Property Tax Trust Fund after the payments and
transfers authorized by paragraphs (1) to (3), inclusive, shall be
distributed to local agencies and school entities in accordance with
Section 34188.
(b) If the successor agency reports, no later than December 1,
2011, and May 1, 2012, and each December 1 and May 1 thereafter, to
the county auditor-controller that the total amount available to the
successor agency from the Redevelopment Property Tax Trust Fund
allocation to that successor agency's Redevelopment Obligation
Retirement Fund, from other funds transferred from each redevelopment
agency, and from funds that have or will become available through
asset sales and all redevelopment operations, are insufficient to
fund the payments required by paragraphs (1) to (3), inclusive, of
subdivision (a) in the next six-month fiscal period, the county
auditor-controller shall notify the Controller and the Department of
Finance no later than 10 days from the date of that notification. The
county auditor-controller shall verify whether the successor agency
will have sufficient funds from which to service debts according to
the Recognized Obligation Payment Schedule and shall report the
findings to the Controller. If the Controller concurs that there are
insufficient funds to pay required debt service, the amount of the
deficiency shall be deducted first from the amount remaining to be
distributed to taxing entities pursuant to paragraph (4), and if that
amount is exhausted, from amounts available for distribution for
administrative costs in paragraph (3). If an agency, pursuant to the
provisions of Section 33492.15, 33492.72, 33607.5, 33671.5, 33681.15,
or 33688, made passthrough payment obligations subordinate to debt
service payments required for enforceable obligations, funds for
servicing bond debt may be deducted from the amounts for passthrough
payments under paragraph (1), as provided in those sections, but only
to the extent that the amounts remaining to be distributed to taxing
entities pursuant to paragraph (4) and the amounts available for
distribution for administrative costs in paragraph (3) have all been
exhausted.
(c) The county treasurer may loan any funds from the county
treasury that are necessary to ensure prompt payments of
redevelopment agency debts.
(d) The Controller may recover the costs of audit and oversight
required under this part from the Redevelopment Property Tax Trust
Fund by presenting an invoice therefor to the county
auditor-controller who
shall set aside sufficient funds for and disburse the claimed amounts
prior to making the next distributions to the taxing jurisdictions
pursuant to Section 34188. Subject to the approval of the Director of
Finance, the budget of the Controller may be augmented to reflect
the reimbursement, pursuant to Section 28.00 of the Budget Act.
SEC. 15. Section 34185 of the Health and Safety Code is amended to
read:
34185. Commencing on January 16, 2012, and on each January 16 and
June 1 thereafter, the county auditor-controller shall transfer,
from the Redevelopment Property Tax Trust Fund of each successor
agency into the Redevelopment Obligation Retirement Fund of that
agency, an amount of property tax revenues equal to that specified in
the Recognized Obligation Payment Schedule for that successor agency
as payable from the Redevelopment Property Tax Trust Fund subject to
the limitations of subdivision (l) of Section 34177 and Section
34183.
SEC. 16. Section 34187 of the Health and Safety Code is amended to
read:
34187. Commencing January 1, 2012, whenever a recognized
obligation that had been identified in the Recognized Payment
Obligation Schedule is paid off or retired, either through early
payment or payment at maturity, the county auditor-controller shall
distribute to the taxing entities, in accordance with the provisions
of the Revenue and Taxation Code, all property tax revenues that were
associated with the payment of the recognized obligation to the
extent not currently required for the payment of other recognized
obligations.
SEC. 17. Section 34194 of the Health and Safety Code is amended to
read:
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.
(iii) An appeal to the director by a city or county of a community
remittance amount pursuant to this subparagraph also may be based on
the permanent termination, prior to the 2012-13 fiscal year, of the
allocation of tax increment to an agency for a project area that
received tax increment in the 2008-09 fiscal year. If the director
approves an appeal on this basis, then the director may recalculate
the remittance amount for that city or county by excluding any
amounts pertaining to that project area from the calculations
specified in subparagraphs (A) to (I), inclusive. A city or county
may file an appeal on this basis with the director on or before
September 30, 2011, in which case the extended decision and ordinance
enactment deadlines specified in clause (ii) shall apply, except
that the director's deadline for a decision on the appeal shall be
October 28, 2011.
(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. For the purposes of this calculation, "base payment in
the prior fiscal year" shall not be less than one dollar ($1).
(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 Strategy 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.
SEC. 18. Section 34194.25 is added to the Health and Safety Code,
to read:
34194.25. For the 2012-13 and 2013-14 fiscal years only, the
agreement between a city or a county and its redevelopment agency to
transfer a portion of the agency's tax increment to the city or
county, authorized in Section 34194.2, may include an additional
amount to reimburse the city or county for any shortfall between the
amount transferred from the redevelopment agency to the city or
county in the 2011-12 fiscal year pursuant to Section 34194.2 and the
amount of the annual remittance of the city or county in that fiscal
year. The cumulative, additional amount transferred pursuant to this
section in the 2012-13 and 2013-14 fiscal years shall not exceed the
difference between the amount transferred in, and the remittance
amount of, the 2011-12 fiscal year.
SEC. 19. Section 34194.4 of the Health and Safety Code is amended
to read:
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 a transit
district. 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.
SEC. 20. Section 34195 of the Health and Safety Code is amended to
read:
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 subdivision (d) of Section 34194, 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.
SEC. 21. Sections 8 to 16, inclusive, of this act shall become
operative only if Part l.85 (commencing with Section 34170) of
Division 24 of the Health and Safety Code, as added by Chapter 5 of
the First Extraordinary Session of the Statutes of 2011, is
operative. Sections 1 to 3, inclusive, and Sections 18 to 20,
inclusive, of this act, and the changes made to subdivision (c) of
Section 34194 of the Health and Safety Code by Section 17 of this
act, shall become operative only if Part 1.9 (commencing with Section
34192) of Division 24 of the Health and Safety Code, as added by
Chapter 6 of the First Extraordinary Session of the Statutes of 2011,
is operative.
SEC. 22. The sum of one thousand dollars ($1,000) is hereby
appropriated to the Department of Finance from the General Fund for
costs to comply with this act.
SEC. 23. This act addresses the fiscal emergency declared by the
Governor by proclamation on January 20, 2011, pursuant to subdivision
(f) of Section 10 of Article IV of the California Constitution.
SEC. 24. 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.