BILL NUMBER: SB 1414 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 16, 2012
INTRODUCED BY Senator Dutton
FEBRUARY 24, 2012
An act to amend Section 11349.3 of the Government Code,
relating to state government Sections 34167 and 34171
of the Health and Safety Code, relating to redevelopment, and
declaring the urgency thereof, to take effect immediately .
LEGISLATIVE COUNSEL'S DIGEST
SB 1414, as amended, Dutton. Administrative regulations
and rulemaking. Community redevelopment.
Existing law dissolved redevelopment agencies and community
development agencies, as of February 1, 2012, and provides for the
designation of 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 would expand enforceable obligations to include the
use of the proceeds of the issuance of Rancho Cucamonga Redevelopment
Agency's 2004 Tax Allocation Bonds to implement and complete an
infrastructure project, as specified.
This bill would make legislative findings and declarations as to
the necessity of a special statute for the successor agency to the
Rancho Cucamonga Redevelopment Agency.
This bill would declare that it is to take effect immediately as
an urgency statute.
Existing law requires the Office of Administrative Law to either
approve a regulation submitted to it for review and transmit it to
the Secretary of State for filing, or disapprove the regulation
within 30 working days after the regulation was submitted to the
office for review, as specified.
This bill would make a technical, nonsubstantive change to this
provision.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: no yes .
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. 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) (A) 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.
(B) The use of the proceeds of the issuance of Rancho Cucamonga
Redevelopment Agency's 2004 Tax Allocation Bonds to implement and
complete an infrastructure project for which the proceeds of those
bonds were previously expended to partially implement the project by
defraying design, property acquisition, or construction costs.
(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.
(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. 2. 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 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) (i) 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.
(ii) The use of the proceeds of the issuance of Rancho Cucamonga
Redevelopment Agency's 2004 Tax Allocation Bonds to implement and
complete an infrastructure project for which the proceeds of those
bonds were previously expended to partially implement the project by
defraying design, property acquisition, or construction costs.
(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, 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. 3. The Legislature finds and declares that a
special law is necessary and that a general law cannot be made
applicable within the meaning of Section 16 of Article IV of the
California Constitution because of the unique needs of the successor
agency to the Rancho Cucamonga Redevelopment Agency.
SEC. 4. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to ensure the continued funding of pending redevelopment
projects, it is necessary that this act take effect immediately.
SECTION 1. Section 11349.3 of the Government
Code is amended to read:
11349.3. (a) The office shall either approve a regulation
submitted to it for review and transmit it to the Secretary of State
for filing or disapprove it within 30 working days after the
regulation has been submitted to the office for review. If the office
fails to act within 30 days, the regulation shall be deemed to have
been approved, and the office shall transmit it to the Secretary of
State for filing.
(b) If the office disapproves a regulation, it shall return it to
the adopting agency within the 30-day period specified in subdivision
(a) accompanied by a notice specifying the reasons for disapproval.
Within seven calendar days of the issuance of the notice, the office
shall provide the adopting agency with a written decision detailing
the reasons for disapproval. No regulation shall be disapproved
except for failure to comply with the standards set forth in Section
11349.1 or for failure to comply with this chapter.
(c) If an agency determines, on its own initiative, that a
regulation submitted pursuant to subdivision (a) should be returned
by the office prior to completion of the office's review, it may
request the return of the regulation. All requests for the return of
a regulation shall be memorialized in writing by the submitting
agency no later than one week following the request. Any regulation
returned pursuant to this subdivision shall be resubmitted to the
office for review within the one-year period specified in subdivision
(b) of Section 11346.4 or shall comply with Article 5 (commencing
with Section 11346) prior to resubmission.
(d) The office shall not initiate the return of a regulation
pursuant to subdivision (c) as an alternative to disapproval pursuant
to subdivision (b).