BILL NUMBER: SB 659	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JANUARY 13, 2012
	AMENDED IN SENATE  MAY 11, 2011
	AMENDED IN SENATE  MARCH 24, 2011

INTRODUCED BY    Senator   Hernandez
  Senators   Padilla   and Rubio 

    (   Principal coauthor:   Senator 
 Hernandez   ) 
    (   Coauthor:   Senator   Negrete
McLeod  ) 
    (   Coauthors:   Assembly Members 
 Ma,   Perea,   and Solorio   ) 

                        FEBRUARY 18, 2011

    An act to amend Section 507 of, and to add Section 301.5
to, the San Gabriel Basin Water Quality Authority Act (Chapter 776 of
the Statutes of 1992), relating to the San Gabriel Basin Water
Quality Authority.   An act to amend Sections 34170,
34172, 34173, 34175, 34177, 34178, 34179, 34182, 34183, 34185, and
34187 of, to add Section 34189.5 to, and to repeal Sections 34178.7,
34188.8, and 34191 of, the Health and Safety Code, and to amend
Section 97.401 of the Revenue and Taxation Code, relating to
community redevelopment. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 659, as amended,  Hernandez   Padilla
 .  San Gabriel Basin Water Quality Authority: board
members.   Community redevelopment.  
   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 requires
successor agencies to wind down the affairs of the dissolved
redevelopment agencies and to, among other things, repay enforceable
obligations, as defined, and to remit unencumbered balances of
redevelopment agency funds, including housing funds, to the county
auditor-controller for distribution to taxing entities. Existing law
imposes various requirements on successor agencies and subjects
successor agency actions to the review of oversight boards. 

   In the case of California Redevelopment Association v. Matosantos,
Case No. S194861, the California Supreme Court ruled that the
dissolution of redevelopment agencies and community development
agencies shall take effect on February 1, 2012, or 4 months after the
effective date or the deadline for performance of an obligation,
except as specified.  
   This bill would instead provide that dissolution of redevelopment
agencies and community development agencies shall take effect on
April 15, 2012, and as otherwise specified. Other specified
provisions would become effective on May 1, 2012, or require
performance of certain actions on or before July 1, 2012. 

   The San Gabriel Basin Water Quality Authority Act authorizes the
San Gabriel Basin Water Quality Authority to plan, finance, and
implement groundwater remediation activities, as prescribed. The act
requires the authority to be governed by a board composed of 7
members, consisting of 3 members appointed by the San Gabriel Valley
Municipal Water District, the Upper San Gabriel Valley Municipal
Water District, and the Three Valleys Municipal Water District; one
member elected by specified cities with pumping rights within the San
Gabriel Basin; one member elected by specified cities without
pumping rights within the San Gabriel Basin; and 2 producer members
appointed by the San Gabriel Valley Water Association. The act
prescribes 4-year terms of office for the board members. The act also
provides for the appointment or election of alternates by each of
those entities.  
   This bill would authorize each of those entities appointing or
electing a board member or alternate, by a majority vote, to remove
the board member or alternate without cause and at any time prior to
the expiration of the board member's or alternate's term of office,
and to appoint or elect another person as the member or alternate to
serve for the remaining term of the office, as specified. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes . State-mandated local program: no.


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

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) The Legislature's sole objective in enacting this act is to
temporarily delay the dissolution of redevelopment agencies in order
to provide the opportunity to address significant legal, financial,
and practical issues related to the dissolution of redevelopment
agencies that cannot be addressed once the dissolution occurs. 

   (b) In enacting this act, the Legislature hereby intends to codify
the California Supreme Court's December 29, 2011, holding in
California Redevelopment Association v. Matosantos, Case No. S194861,
while temporarily extending the timeframe for implementing Section 7
of Chapter 5 of the First Extraordinary Session of the Statutes of
2011.  
   (c) This act shall not be construed as permitting any
redevelopment agency to incur new or expand existing monetary, legal,
or contractual obligations, institute any condemnation proceedings,
or issue any additional bonds, notes, or other indebtedness between
the date of the California Supreme Court's holding in California
Redevelopment Association v. Matosantos, Case No. S194861, and April
15, 2012. 
   SEC. 2.    Section 34170 of the   Health and
Safety Code   is amended to read: 
   34170.  (a) Unless otherwise specified, all provisions of this
part shall become operative on  October 1, 2011. 
 April 15, 2012. The operative date of this part, and any
amendments thereto, shall have no effect on the effective date of
Chapter 5 of the First Extraordinary Session of the Statutes of 2011,
or the operative date of Part 1.8 of Division 24. 
   (b) If any provision of this part or the application thereof to
any person or circumstance is held invalid, the invalidity shall not
affect other provisions or applications of this part which can be
given effect without the invalid provision or application, and to
this end, the provisions of this part are severable.
   SEC. 3.    Section 34172 of the   Health and
Safety Code   is amended to read: 
   34172.  (a) (1) All redevelopment agencies and redevelopment
agency components of community development agencies created under
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)  that were  
shall remain  in existence  on   until
 the  effective   operative  date of
this part  and  are hereby dissolved and shall no longer
exist as a public body, corporate or politic  effective April 15,
2012  . Nothing in this part dissolves or otherwise affects the
authority of a community redevelopment commission, other than in its
authority to act as a redevelopment agency, in its capacity as a
housing authority or for any other community development purpose of
the jurisdiction in which it operates. For those other
nonredevelopment purposes, the community development commission
derives its authority solely from federal or local laws, or from
state laws other than the Community Redevelopment Law (Part 1
(commencing with Section 33000)).
   (2) A community in which an agency  has been 
 will be  dissolved under this section may not create a new
agency pursuant to 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). However, a
community in which the agency has been dissolved and the successor
entity has paid off all of the former agency's enforceable
obligations may create a new agency pursuant to 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), subject to the tax increment provisions contained in
Chapter 3.5 (commencing with Section 34194.5) of Part 1.9 (commencing
with Section 34192).
   (b)  All   Except   as expressly
provided in Section 34169, all  authority to transact business
or exercise powers previously granted under the Community
Redevelopment Law (Part 1 (commencing with Section 33000) is hereby
withdrawn from the former redevelopment agencies  effective
October 1, 2011  .
   (c) Solely for purposes of Section 16 of Article XVI of the
California Constitution, the Redevelopment Property Tax Trust Fund
shall be deemed to be a special fund of the  dissolved
 redevelopment agency  that will be dissolved  to
pay the principal of and interest on loans, moneys advanced to, or
indebtedness, whether funded, refunded, assumed, or otherwise
incurred by the redevelopment agency to finance or refinance, in
whole or in part, the redevelopment projects of each redevelopment
agency dissolved pursuant to this part.
   (d) Revenues equivalent to those that would have been allocated
pursuant to subdivision (b) of Section 16 of Article XVI of the
California Constitution shall be allocated to the Redevelopment
Property Tax Trust Fund of each successor agency for making payments
on the principal of and interest on loans, and moneys advanced to or
indebtedness incurred by the dissolved redevelopment agencies.
Amounts in excess of those necessary to pay obligations of the former
redevelopment agency shall be deemed to be property tax revenues
within the meaning of subdivision (a) of Section 1 of Article XIII A
of the California Constitution.
   SEC. 4.    Section 34173 of the   Health and
Safety Code   is amended to read: 
   34173.  (a) Successor agencies, as defined in this part, are
hereby designated as successor entities to the former redevelopment
agencies.
   (b) Except for those provisions of the Community Redevelopment Law
that are repealed, restricted, or revised pursuant to the act adding
this part, all authority, rights, powers, duties, and obligations
previously vested with the former redevelopment agencies, under the
Community Redevelopment Law, are hereby vested in the successor
agencies.
   (c) (1) Where the redevelopment agency was in the form of a joint
powers authority, and where the joint powers agreement governing the
formation of the joint powers authority addresses the allocation of
assets and liabilities upon dissolution of the joint powers
authority, then each of the entities that created the former
redevelopment agency may be a successor agency within the meaning of
this part and each shall have a share of assets and liabilities based
on the provisions of the joint powers agreement.
   (2) Where the redevelopment agency was in the form of a joint
powers authority, and where the joint powers agreement governing the
formation of the joint powers authority does not address the
allocation of assets and liabilities upon dissolution of the joint
powers authority, then each of the entities that created the former
redevelopment agency may be a successor agency within the meaning of
this part, a proportionate share of the assets and liabilities shall
be based on the assessed value in the project areas within each
entity's jurisdiction, as determined by the county assessor, in its
jurisdiction as compared to the assessed value of land within the
boundaries of the project areas of the former redevelopment agency.
   (d) (1) A city, county, city and county, or the entities forming
the joint powers authority that authorized the creation of each
redevelopment agency may elect not to serve as a successor agency
under this part. A city, county, city and county, or any member of a
joint powers authority that elects not to serve as a successor agency
under this part must file a copy of a duly authorized resolution of
its governing board to that effect with the county auditor-controller
no later than  one month prior to the effective date of this
part.   January 13, 2012. Any city, county, city and
county, or any member of a joint powers authority that elects not to
serve as a successor agency may seek   reconsideration of
its decision not to serve as a successor agency by submitting a
written petition for reconsideration to the Governor on or before
February 1   5, 2012. The Governor shall possess the sole
authority to grant a petition for reconsideration. If the Governor
grants a petition for reconsideration, the petitioner shall serve as
a successor agency notwithstanding its prior election declining to
serve as a successor agency. 
   (2) The determination of the first local agency that elects to
become the successor agency shall be made by the county
auditor-controller based on the earliest receipt by the county
auditor-controller of a copy of a duly adopted resolution of the
local agency's governing board authorizing such an election. As used
in this section, "local agency" means any city, county, city and
county, or special district in the county of the former redevelopment
agency.
   (3) If no local agency elects to serve as a successor agency for a
dissolved redevelopment agency, a public body, referred to herein as
a "designated local authority" shall be immediately formed, pursuant
to this part, in the county and shall be vested with all the powers
and duties of a successor agency as described in this part. The
Governor shall appoint three residents of the county to serve as the
governing board of the authority. The designated local authority
shall serve as successor agency until a local agency elects to become
the successor agency in accordance with this section.
   (e) The liability of any successor agency, acting pursuant to the
powers granted under the act adding this part, shall be limited to
the extent of the total sum of property tax revenues it receives
pursuant to this part and the value of assets transferred to it as a
successor agency for a dissolved redevelopment agency.
   SEC. 5.    Section 34175 of the   Health and
Safety Code   is amended to read: 
   34175.  (a) It is the intent of this part that pledges of revenues
associated with enforceable obligations of the former redevelopment
agencies are to be honored. It is intended that the cessation of any
redevelopment agency shall not affect either the pledge, the legal
existence of that pledge, or the stream of revenues available to meet
the requirements of the pledge.
   (b) All assets, properties, contracts, leases, books and records,
buildings, and equipment of the former redevelopment agency are
transferred on  October 1, 2011   A  
pril 15, 2012  , to the control of the successor agency, for
administration pursuant to the provisions of this part. This includes
all cash or cash equivalents and amounts owed to the redevelopment
agency as of  October 1, 2011   April 15, 2012
 .
   SEC. 6.    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   April 15,
2012 , 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 (e) 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   May  1,
2012,  or the date on which a Recognized Obligation Payment
Schedule is deemed valid pursuant to paragraph (2) of subdivision
(l), whichever is later,  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   May
 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   April 15, 2012
 , to July 1, 2012,  inclusive,  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, including, but not limited to, the unencumbered balance of
the Low and Moderate Income Housing Fund of a former redevelopment
agency. 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   May
1, 2012  . From  October 1, 2011   April
15, 2012  , to July 1, 2012,  inclusive,  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 
 May 15, 2012  , for the period of  January
  June  1, 2012, to June 30, 2012, inclusive.
 Former redevelopment   Redevelopment 
agency enforceable obligation payments due, and reasonable or
necessary administrative costs due or incurred, prior to 
January 1   April 15  , 2012, shall be made from
property tax revenues received in the spring of 2011 property tax
distribution,  from property tax revenues received pursuant to
Section 34183,  and from other revenues and balances transferred
to the successor agency.
   SEC. 7.    Section 34178 of the   Health and
Safety Code  is amended to read: 
   34178.  (a) Commencing on  the operative date of this part
  October 1, 2011  , agreements, contracts, or
arrangements between the city or county, or city and county that
created the redevelopment agency and the redevelopment agency are
invalid and shall not be binding on the successor agency; provided,
however, that a successor entity wishing to enter or reenter into
agreements with the city, county, or city and county that formed the
redevelopment agency that it is succeeding may do so upon obtaining
the approval of its oversight board.
   (b) Notwithstanding subdivision (a), any of the following
agreements are not invalid and may bind the successor agency:
   (1) A duly authorized written agreement entered into at the time
of issuance, but in no event later than December 31, 2010, of
indebtedness obligations, and solely for the purpose of securing or
repaying those indebtedness obligations.
   (2) A written agreement between a redevelopment agency and the
city, county, or city and county that created it that provided loans
or other startup funds for the redevelopment agency that were entered
into within two years of the formation of the redevelopment agency.
   (3) A joint exercise of powers agreement in which the
redevelopment agency is a member of the joint powers authority.
However, upon assignment to the successor agency by operation of the
act adding this part, the successor agency's rights, duties, and
performance obligations under that joint exercise of powers agreement
shall be limited by the constraints imposed on successor agencies by
the act adding this part.
   SEC. 8.    Section 34178.7 of the   Health
and Safety Code   is repealed.  
   34178.7.  For purposes of this chapter with regard to a
redevelopment agency that becomes subject to this part pursuant to
Section 34195, only references to "October 1, 2011," and to the
"operative date of this part" shall be modified in the manner
described in Section 34191. All other dates shall be modified only as
necessary to reflect the appropriate fiscal year or portion of a
fiscal year. 
   SEC. 9.    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   May  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.
   (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   May  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. 10.    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   July  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   July 1  , 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 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 entities 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. 11.    Section 34183 of the   Health
and Safety Code   is amended to read: 
   34183.  (a) Notwithstanding any other law, from  October
1, 2011   April 15, 2012  , to July 1, 2012, 
inclusive,  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 entities, 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,  for the period beginning April 15, 2012, and ending
December 31, 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   15
 , 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. 
   (e) Notwithstanding any other law, on February 1, 2012, for the
period February 1, 2012, to April 15, 2012, inclusive, the county
auditor-controller shall, after deducting administrative costs
allowed under Section 95.3 of the Revenue and Taxation Code, allocate
to redevelopment agencies revenues equivalent to those that would
have been allocated to a community redevelopment agency to make the
payments listed on the enforceable obligation payment schedule
adopted pursuant to Section 34169. On April 15, 2012, for the period
April 15, 2012, to June 1, 2012, inclusive, the county
auditor-controller shall, after deducting administrative costs
allowed under Section 95.3 of the Revenue and Taxation Code allocate
to successor agencies revenue equivalent to those that would have
been allocated to a community redevelopment agency to make the
payments listed on the enforceable obligation payment schedule
adopted pursuant to Section 34177. 
   SEC. 12.    Section 34185 of the   Health
and Safety Code   is amended to read: 
   34185.  Commencing on  January 16   May 1
 , 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 Sections 34173 and 34183.
   SEC. 13.    Section 34187 of the   Health
and Safety Code   is amended to read:
   34187.  Commencing  January   May  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.
   SEC. 14.    Section 34188.8 of the   Health
and Safety Code   is repealed.  
   34188.8.  For purposes of a redevelopment agency that becomes
subject to this part pursuant to Section 34195, a date certain
identified in this chapter shall not be subject to Section 34191,
except for dates certain in Section 34182 and references to "October
1, 2011," or to the "operative date of this part,". However, for
purposes of those redevelopment agencies, a date certain identified
in this chapter shall be appropriately modified, as necessary to
reflect the appropriate fiscal year or portion of a fiscal year.

   SEC. 15.    Section 34189.5 is added to the 
 Health and Safety Code   , to read:  
   34189.5.  In enacting the act that adds this section, it is the
intent of the Legislature to preserve the California Supreme Court's
December 29, 2011, holding in California Redevelopment Association v.
Matosantos, Case No. S194861, while extending the timeframe for
implementing Chapter 5 of the First Extraordinary Session of the
Statutes of 2011.
   (a) Notwithstanding any other provision of this act or any other
law, a redevelopment agency shall not incur new or expand existing
monetary, legal, or contractual obligations, institute any
condemnation proceedings, or issue any additional bonds, notes, or
other indebtedness commencing December 29, 2011, to April 15, 2012,
inclusive.
   (b) This section shall not be construed to alter or limit any
restriction on redevelopment agency activities contained in Part 1.8
(commencing with Section 34161). 
   SEC. 16.    Section 34191 of the   Health
and Safety Code   is repealed.  
   34191.  (a) It is the intent of the Legislature that a
redevelopment agency that formerly operated pursuant to the
Alternative Voluntary Redevelopment Program (Part 1.9 (commencing
with Section 34192)), that becomes subject to this part pursuant to
Section 34195, shall be subject to all of the requirements of this
part, except that dates and deadlines shall be appropriately
modified, as provided in this section, to reflect the date that the
agency becomes subject to this part.
   (b) Except as otherwise provided by law, for purposes of a
redevelopment agency that becomes subject to this part pursuant to
Section 34195, the following shall apply:
   (1) Any reference to "January 1, 2011," shall be construed to mean
January 1 of the year preceding the year that the redevelopment
agency became subject to this part, but no earlier than January 1,
2011.
   (2) Any reference to "October 1, 2011," or to the "operative date
of this part," shall mean the date that is the equivalent to the
"October 1, 2011," identified in Section 34167.5 for that
redevelopment agency as determined pursuant to Section 34169.5.
   (3) Except as provided in paragraphs (1) and (2), any reference to
a date certain shall be construed to be the date, measured from the
date that the redevelopment agency became subject to this part, that
is equivalent to the duration of time between the operative date of
this part and the date certain identified in statute. 
   SEC. 17.    Section 97.401 of the  Revenue
and Taxation Code   is amended to read: 
   97.401.  Commencing October 1, 2011   April
15, 2012  , the county auditor shall make the calculations
required by Section 97.4 based on the amount deposited on behalf of
each former redevelopment agency into the Redevelopment Property Tax
Trust Fund pursuant to paragraph (1) of subdivision (c) of Section
34182 of the Health and Safety Code. The calculations required by
Section 97.4 shall result in cities, counties, and special districts
annually remitting to the Educational Revenue Augmentation Fund the
same amounts they would have remitted but for the operation of Part
1.8 (commencing with Section 34161) and Part 1.85 (commencing with
Section 34170) of Division 24 of the Health and Safety Code. 

       
  SECTION 1.    Section 301.5 is added to the San
Gabriel Basin Water Quality Authority Act (Chapter 776 of the
Statutes of 1992), to read:
   Sec.301.5.  "Appointing authority" means the following:
   (a) With respect to a member or alternate appointed pursuant to
subdivision (a) of Section 503, the Board of Directors of the Upper
San Gabriel Valley Municipal Water District.
   (b) With respect to a member or alternate appointed pursuant to
subdivision (b) of Section 503, the Board of Directors of the San
Gabriel Valley Municipal Water District.
   (c) With respect to a member or alternate appointed pursuant to
subdivision (c) of Section 503, the Board of Directors of the Three
Valleys Municipal Water District.
   (d) With respect to a member or alternate appointed pursuant to
Section 503.1, the board of directors of the Water Association.
   (e) With respect to the member or alternate appointed pursuant to
subdivision (a) of Section 504, the cities with pumping rights.
   (f) With respect to the member or alternate appointed pursuant to
subdivision (b) of Section 504, the cities without pumping rights.
 
  SEC. 2.    Section 507 of the San Gabriel Basin
Water Quality Authority Act (Chapter 776 of the Statutes of 1992), as
amended by Section 7 of Chapter 905 of the Statutes of 2000, is
amended to read:
   Sec.507.  (a) Except as provided in subdivisions (b) and (c), the
terms of the members shall commence on the first Monday in January
and each member shall hold office for a term of four years and until
the successor takes office.
   (b) With respect to the initial board members, the terms of the
member appointed by the Three Valleys Municipal Water District and
the member elected by the cities without pumping rights shall expire
on January 1, 1995, and the terms of the remaining members shall
expire on January 1, 1997.
   (c) The terms of the initial producer members and alternates shall
commence on the first business day after the appointment of the
producer members and alternates. The terms of the initial producer
members and alternates shall expire on the fourth January 1 following
commencement of their term.
   (d) Notwithstanding subdivision (a), the appointing authority, by
a majority vote, may remove that member or alternate without cause
and at any time prior to the expiration of the member's or alternate'
s term of office, and may appoint or elect another person as a member
or alternate. A person appointed or elected pursuant to this
subdivision shall meet the qualifications applicable to the office
and shall serve for the remaining term of the office.