California Legislature—2013–14 Regular Session

Assembly Bill No. 569

Introduced by Assembly Member Chau

February 20, 2013

An act to amend Sections 53890, 53891, and 53892 of, and to repeal Sections 12463.3 and 53895.5 of, the Government Code, and to repeal Sections 33080, 33080.1, 33080.2, 33080.3, 33080.4, 33080.5, 33080.6, and 33080.7 of the Health and Safety Code, relating to redevelopment.

LEGISLATIVE COUNSEL’S DIGEST

AB 569, as introduced, Chau. Redevelopment: reports.

Existing law requires the Controller to compile and publish annually reports of the financial transactions of each community redevelopment agency, as provided.

This bill would eliminate that requirement.

Existing law requires the officer of each local agency, who has charge of the financial records of the agency, to furnish to the Controller a report of all the financial transactions of the local agency during the next preceding fiscal year within 90 days of the close of each fiscal year, as specified. Existing law defines local agency, for purposes of these financial reports, to mean any city, county, district, and specified community redevelopment agencies.

This bill would exclude community redevelopment agencies from the definition of local agency, thereby eliminating the requirement that a community redevelopment agency furnish the Controller with the financial report. This bill would make related, conforming changes.

Existing law requires each redevelopment agency to submit the final report of any audit undertaken by any other local, state, or federal government entity to its legislative body and to additionally present an annual report to the legislative body containing specified information. Existing law requires the Department of Housing and Community Development to compile and publish reports of the activities of redevelopment agencies, as provided.

This bill would repeal those provisions, and would repeal related provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 12463.3 of the Government Code is
repealed.

begin delete

12463.3.  

On or before May 1 of each year, the Controller shall
compile and publish annually reports of the financial transactions
of each community redevelopment agency created pursuant to
Division 24 (commencing with Section 33000) of the Health and
Safety Code. The Controller shall make the data available to the
Legislature and its agents upon request, on or before April 1 of
each year. The Controller shall publish this information for each
project area of each redevelopment agency. The reports shall be
made in the time, form, and manner prescribed by the Controller,
after consultation with the Department of Housing and Community
Development and the advisory committee created pursuant to
Section 12463.1.

end delete

SEC. 2.  

Section 53890 of the Government Code is amended
to read:

53890.  

As used in this article, “local agency” means any city,
county, begin insert and end insert any begin delete district, and any community redevelopment agency end delete
begin insert district end insert required to furnish financial reports pursuant to Section
12463.1 or 12463.3.

SEC. 3.  

Section 53891 of the Government Code is amended
to read:

53891.  

The officer of each local agency who has charge of the
financial records shall furnish to the Controller a report of all the
financial transactions of the local agency during the next preceding
fiscal year. The report shall be furnished within 90 days after the
close of each fiscal year and shall be in the form required by the
Controller. If the report is filed in electronic format as prescribed
by the Controller, the report shall be furnished within 110 days
after the close of each fiscal year. However, whenever a local
agency files annual financial materials with the Office of Statewide
Health Planning and Development or any successor thereto
pursuant to Section 128735 of the Health and Safety Code, the
audited report shall be furnished within 120 days after the close
of each fiscal year. begin delete Further, whenever a community redevelopment
agency files an annual report with the Controller pursuant to
Section 33080 of the Health and Safety Code, the report shall be
furnished within six months of the end of the agency’s fiscal year. end delete

The Controller shall prescribe uniform accounting and reporting
procedures that shall be applicable to all local agencies except
cities, counties, and school districts, and except for local agencies
that substantially follow a system of accounting prescribed by the
Public Utilities Commission of the State of California or the
Federal Energy Regulatory Commission. The procedures shall be
adopted under the provisions of Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2. The Controller
shall prescribe the procedures only after consultation with and
approval of a local governmental advisory committee established
pursuant to Section 12463.1. Approval of the procedures shall be
by majority vote of the members present at a meeting of the
committee called by the chairperson thereof.

SEC. 4.  

Section 53892 of the Government Code is amended
to read:

53892.  

The report shall state all of the following:

(a) The aggregate amount of taxes levied and assessed against
the taxable property in the local agency, which became due and
payable during the next preceding fiscal year.

(b) The aggregate amount of taxes levied and assessed against
this property collected by or for the local agency during the fiscal
year.

(c) The aggregate income during the preceding fiscal year, a
general statement of the sources of the income, and the amount
received from each source.

(d) The total expenditures made by administrative departments
during the preceding fiscal year, a general statement of the purposes
of the expenditures, and the amounts expended by each department.

(e) The assessed valuation of all of the taxable property in the
local agency as set forth on the assessment roll of the local agency
equalized for the fiscal year, or, if the officers of the county in
which the city or district is situated have collected for the city or
district the general taxes levied by the city or district for the fiscal
year, the assessed valuation of all taxable property in the city or
district as set forth on the assessment rolls for the county equalized
for the fiscal year.

(f) The information required by Section 53892.2, as of the end
of the fiscal year.

(g) The approximate population at the close of the fiscal year
and the population as shown by the last regular federal census.

(h) Other information that the Controller requires.

(i) Any other matters necessary to complete and keep current
the statistical information on assessments, revenues and taxation,
collected and compiled by any Senate or Assembly committee on
revenue and taxation.

(j) In the case of cities, the information required by Section
53892.3.

begin delete

(k) In the case of community redevelopment agencies, the
information required by subdivisions (a), (b), and (g) of Section
33080.1 of the Health and Safety Code. The Controller shall
forward the information required pursuant to subdivision (c) of
Section 33080.1 of the Health and Safety Code to the Department
of Housing and Community Development for publication pursuant
to Section 33080.6 of that code.

end delete

SEC. 5.  

Section 53895.5 of the Government Code is repealed.

begin delete

53895.5.  

(a) An officer of a community redevelopment agency
who fails or refuses to make and file his or her report within 20
days after receipt of a written notice of the failure from the
Controller shall forfeit to the state:

(1) One thousand dollars ($1,000) in the case of a community
redevelopment agency with total revenue, in the prior year, of less
than one hundred thousand dollars ($100,000), as reported in the
Controller’s annual financial reports.

(2) Two thousand five hundred dollars ($2,500) in the case of
a community redevelopment agency with total revenue, in the prior
year, of at least one hundred thousand dollars ($100,000), but less
than two hundred fifty thousand dollars ($250,000), as reported
in the Controller’s annual financial reports.

(3) Five thousand dollars ($5,000) in the case of a community
redevelopment agency with total revenue, in the prior year, of at
least two hundred fifty thousand dollars ($250,000), as reported
in the Controller’s annual financial reports.

(b) An officer of a community redevelopment agency who fails
or refuses to make and file his or her report within 20 days after
receipt of a written notice of the failure from the Controller in the
second or more consecutive year shall forfeit to the state:

(1) Two thousand dollars ($2,000) in the case of a community
redevelopment agency with total revenue, in the prior year, of less
than one hundred thousand dollars ($100,000), as reported in the
Controller’s annual financial reports.

(2) Five thousand dollars ($5,000) in the case of a community
redevelopment agency with total revenue, in the prior year, of at
least one hundred thousand dollars ($100,000), but less than two
hundred fifty thousand dollars ($250,000), as reported in the
Controller’s annual financial reports.

(3) Ten thousand dollars ($10,000) in the case of a community
redevelopment agency with total revenue, in the prior year, of at
least two hundred fifty thousand dollars ($250,000), as reported
in the Controller’s annual financial reports.

(c) In the case of a community redevelopment agency that fails
or refuses to make and file its report within 20 days after receipt
of a written notice of the failure from the Controller in the third
or more consecutive year, the Controller shall conduct or cause to
be conducted an independent financial audit report consistent with
the requirements of Section 33080.1 of the Health and Safety Code.
The community redevelopment agency shall reimburse the
Controller for the cost of complying with this subdivision. The
community redevelopment agency shall not use any of the funds
in the Low and Moderate Income Housing Fund to reimburse the
Controller.

(d) (1) Upon the request of the Controller, the Attorney General
shall prosecute an action for the forfeiture in the name of the people
of the State of California.

(2) Upon a satisfactory showing of good cause, the Controller
may waive the penalties for late filing provided in this section.

(e) A community redevelopment agency that makes a forfeiture
or payment pursuant to this section shall still file the report required
pursuant to Section 53891.

end delete

SEC. 6.  

Section 33080 of the Health and Safety Code is
repealed.

begin delete

33080.  

(a)  Every redevelopment agency shall file with the
Controller within six months of the end of the agency’s fiscal year
a copy of the report required by Section 33080.1. In addition, each
redevelopment agency shall file with the department a copy of the
audit report required by subdivision (a) of Section 33080.1. The
reports shall be made in the time, format, and manner prescribed
by the Controller after consultation with the department.

(b)  The redevelopment agency shall provide a copy of the report
required by Section 33080.1, upon the written request of any person
or any taxing agency. If the report does not include detailed
information regarding administrative costs, professional services,
or other expenditures, the person or taxing agency may request,
and the redevelopment agency shall provide, that information. The
person or taxing agency shall reimburse the redevelopment agency
for all actual and reasonable costs incurred in connection with the
provision of the requested information.

end delete

SEC. 7.  

Section 33080.1 of the Health and Safety Code is
repealed.

begin delete

33080.1.  

Every redevelopment agency shall submit the final
report of any audit undertaken by any other local, state, or federal
government entity to its legislative body within 30 days of receipt
of that audit report. In addition, every redevelopment agency shall
present an annual report to its legislative body within six months
of the end of the agency’s fiscal year. The annual report shall
contain all of the following:

(a) (1) An independent financial audit report for the previous
fiscal year. “Audit report” means an examination of, and opinion
on, the financial statements of the agency which present the results
of the operations and financial position of the agency, including
all financial activities with moneys required to be held in a separate
Low and Moderate Income Housing Fund pursuant to Section
33334.3. This audit shall be conducted by a certified public
accountant or public accountant, licensed by the State of California,
in accordance with Government Auditing Standards adopted by
the Comptroller General of the United States. The audit report
shall meet, at a minimum, the audit guidelines prescribed by the
Controller’s office pursuant to Section 33080.3 and also include
a report on the agency’s compliance with laws, regulations, and
administrative requirements governing activities of the agency,
and a calculation of the excess surplus in the Low and Moderate
Income Housing Fund as defined in subdivision (g) of Section
33334.12.

(2) However, the legislative body may elect to omit from
inclusion in the audit report any distinct activity of the agency that
is funded exclusively by the federal government and that is subject
to audit by the federal government.

(b) A fiscal statement for the previous fiscal year that contains
the information required pursuant to Section 33080.5.

(c) A description of the agency’s activities in the previous fiscal
year affecting housing and displacement that contains the
information required by Sections 33080.4 and 33080.7.

(d) A description of the agency’s progress, including specific
actions and expenditures, in alleviating blight in the previous fiscal
year.

(e) A list of, and status report on, all loans made by the
redevelopment agency that are fifty thousand dollars ($50,000) or
more, that in the previous fiscal year were in default, or not in
compliance with the terms of the loan approved by the
redevelopment agency.

(f) A description of the total number and nature of the properties
that the agency owns and those properties the agency has acquired
in the previous fiscal year.

(g) A list of the fiscal years that the agency expects each of the
following time limits to expire:

(1) The time limit for the commencement for eminent domain
proceedings to acquire property within the project area.

(2) The time limit for the establishment of loans, advances, and
indebtedness to finance the redevelopment project.

(3) The time limit for the effectiveness of the redevelopment
plan.

(4) The time limit to repay indebtedness with the proceeds of
property taxes.

(h) Any other information that the agency believes useful to
explain its programs, including, but not limited to, the number of
jobs created and lost in the previous fiscal year as a result of its
activities.

end delete

SEC. 8.  

Section 33080.2 of the Health and Safety Code is
repealed.

begin delete

33080.2.  

(a) When the agency presents the annual report to
the legislative body pursuant to Section 33080.1, the agency shall
inform the legislative body of any major audit violations of this
part based on the independent financial audit report. The agency
shall inform the legislative body that the failure to correct a major
audit violation of this part may result in the filing of an action by
the Attorney General pursuant to Section 33080.8.

(b) The legislative body shall review any report submitted
pursuant to Section 33080.1 and take any action it deems
appropriate on that report no later than the first meeting of the
legislative body occurring more than 21 days from the receipt of
the report.

end delete

SEC. 9.  

Section 33080.3 of the Health and Safety Code is
repealed.

begin delete

33080.3.  

The Controller shall develop and periodically revise
the guidelines for the content of the report required by Section
33080.1. The Controller shall appoint an advisory committee to
advise in the development of the guidelines. The advisory
committee shall include representatives from among those persons
nominated by the department, the Legislative Analyst, the
California Society of Certified Public Accountants, the California
Redevelopment Association, and any other authorities in the field
that the Controller deems necessary and appropriate.

end delete

SEC. 10.  

Section 33080.4 of the Health and Safety Code is
repealed.

begin delete

33080.4.  

(a)  For the purposes of compliance with subdivision
(c) of Section 33080.1, the description of the agency’s activities
shall contain the following information regardless of whether each
activity is funded exclusively by the state or federal government,
for each project area and for the agency overall:

(1)  Pursuant to Section 33413, the total number of nonelderly
and elderly households, including separate subtotals of the numbers
of very low income households, other lower income households,
and persons and families of moderate income, that were displaced
or moved from their dwelling units as part of a redevelopment
project of the agency during the previous fiscal year.

(2)  Pursuant to Section 33413.5, the total number of nonelderly
and elderly households, including separate subtotals of the numbers
of very low income households, other lower income households,
and persons and families of moderate income, that the agency
estimates will be displaced or will move from their dwellings as
part of a redevelopment project of the agency during the present
fiscal year and the date of adoption of a replacement housing plan
for each project area subject to Section 33413.5.

(3)  The total number of dwelling units housing very low income
households, other lower income households, and persons and
families of moderate income, respectively, which have been
destroyed or removed from the low- or moderate-income housing
market during the previous fiscal year as part of a redevelopment
project of the agency, specifying the number of those units which
are not subject to Section 33413.

(4)  The total numbers of agency-assisted dwelling units which
were constructed, rehabilitated, acquired, or subsidized during the
previous fiscal year for occupancy at an affordable housing cost
by elderly persons and families, but only if the units are restricted
by agreement or ordinance for occupancy by the elderly, and by
very low income households, other lower income households, and
persons and families of moderate income, respectively, specifying
those units which are not currently so occupied, those units which
have replaced units destroyed or removed pursuant to subdivision
(a) of Section 33413, and the length of time any agency-assisted
units are required to remain available at affordable costs.

(5)  The total numbers of new or rehabilitated units subject to
paragraph (2) of subdivision (b) of Section 33413, including
separate subtotals of the number originally affordable to and
currently occupied by, elderly persons and families, but only if the
units are restricted by agreement or ordinance for occupancy by
the elderly, and by very low income households, other lower
income households, and persons and families of moderate income,
respectively, and the length of time these units are required to
remain available at affordable costs.

(6)  The status and use of the Low and Moderate Income
Housing Fund created pursuant to Section 33334.3, including
information on the use of this fund for very low income households,
other lower income households, and persons and families of
moderate income, respectively. If the Low and Moderate Income
Housing Fund is used to subsidize the cost of onsite or offsite
improvements, then the description of the agency’s activities shall
include the number of housing units affordable to persons and
families of low or moderate income which have been directly
benefited by the onsite or offsite improvements.

(7)  A compilation of the annual reports obtained by the agency
under Section 33418 including identification of the number of
units occupied by persons and families of moderate income, other
lower income households, and very low income households,
respectively, and identification of projects in violation of this part
or any agreements in relation to affordable units.

(8)  The total amount of funds expended for planning and
general administrative costs as defined in subdivisions (d) and (e)
of Section 33334.3.

(9)  Any other information which the agency believes useful to
explain its housing programs, including, but not limited to, housing
for persons and families of other than low and moderate income.

(10)  The total number of dwelling units for very low income
households, other lower income households, and persons and
families of moderate income to be constructed under the terms of
an executed agreement or contract and the name and execution
date of the agreement or contract. These units may only be reported
for a period of two years from the execution date of the agreement
or contract.

(11)  The date and amount of all deposits and withdrawals of
moneys deposited to and withdrawn from the Low and Moderate
Income Housing Fund.

(b)  As used in this section:

(1)  “Elderly,” has the same meaning as specified in Section
50067.

(2)  “Persons and families of moderate income,” has the same
meaning as specified in subdivision (b) of Section 50093.

(3)  “Other lower income households,” has the same meaning
as “lower income households” as specified in Section 50079.5,
exclusive of very low income households.

(4)  “Persons and families of low or moderate income,” has the
same meaning as specified in Section 50093.

(5)  “Very low income households,” has the same meaning as
specified in Section 50105.

(c)  Costs associated with preparing the report required by this
section may be paid with moneys from the Low and Moderate
Income Housing Fund.

end delete

SEC. 11.  

Section 33080.5 of the Health and Safety Code is
repealed.

begin delete

33080.5.  

For the purposes of compliance with subdivision (b)
of Section 33080.1, the fiscal statement shall contain the following
information:

(a)  The amount of outstanding indebtedness of the agency and
each project area.

(b)  The amount of tax increment property tax revenues
generated in the agency and in each project area.

(c)  The amount of tax increment revenues paid to, or spent on
behalf of, a taxing agency, other than a school or community
college district, pursuant to subdivision (b) of Section 33401 or
Section 33676. Moneys expended on behalf of a taxing agency
shall be itemized per each individual capital improvement.

(d)  The financial transactions report required pursuant to
Section 53891 of the Government Code.

(e)  The amount allocated to school or community college
districts pursuant to each of the following provisions: (1) Section
33401; (2) Section 33445; (3) Section 33445.5; (4) paragraph (2)
of subdivision (a) of Section 33676; and (5) Section 33681.

(f)  The amount of existing indebtedness, as defined in Section
33682, and the total amount of payments required to be paid on
existing indebtedness for that fiscal year.

(g)  Any other fiscal information which the agency believes
useful to describe its programs.

end delete

SEC. 12.  

Section 33080.6 of the Health and Safety Code is
repealed.

begin delete

33080.6.  

On or before May 1 of each year, the department shall
compile and publish reports of the activities of redevelopment
agencies for the previous fiscal year, based on the information
reported pursuant to subdivision (c) of Section 33080.1 and
reporting the types of findings made by agencies pursuant to
paragraph (1), (2), or (3) of subdivision (a) of Section 33334.2,
including the date of the findings. The department’s compilation
shall also report on the project area mergers reported pursuant to
Section 33488. The department shall publish this information for
each project area of each redevelopment agency. These reports
may also contain the biennial review of relocation assistance
required by Section 50460. The first report published pursuant to
this section shall be for the 1984-85 fiscal year. For fiscal year
1987-88 and succeeding fiscal years, the report shall contain a list
of those project areas which are not subject to the requirements of
Section 33413.

The department shall send a copy of the executive summary of
its report to each redevelopment agency for which information
was reported pursuant to Section 33080.1 for the fiscal year covered
by the report. The department shall send a copy of its report to
each redevelopment agency that requests a copy.

end delete

SEC. 13.  

Section 33080.7 of the Health and Safety Code is
repealed.

begin delete

33080.7.  

For purposes of compliance with subdivision (c) of
Section 33080.1 and in addition to the requirements of Section
33080.4, the description of the agency’s activities shall identify
the amount of excess surplus, as defined in Section 33334.10,
which has accumulated in the agency’s Low and Moderate Income
Housing Fund. Of the total excess surplus, the description shall
also identify the amount that has accrued to the Low and Moderate
Income Housing Fund during each fiscal year. This component of
the annual report shall also include any plan required to be reported
by subdivision (c) of Section 33334.10.

end delete