BILL NUMBER: AB 1320	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Bloom

                        FEBRUARY 22, 2013

   An act to amend Section 34187 of the Health and Safety Code,
relating to redevelopment.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1320, as introduced, Bloom. Redevelopment: successor agencies.
   The Community Redevelopment Law authorized the establishment of
redevelopment agencies in communities to address the effects of
blight, as defined. Existing law dissolved redevelopment 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,
subject to review by oversight boards. Existing law requires a
successor agency to, among other things, continue to make payments
due for enforceable obligations, dispose of all assets of the former
redevelopment agency, and remit unencumbered balances of
redevelopment agency funds, including housing funds, to the county
auditor-controller for distribution to taxing entities. Existing law
requires the successor agency to dispose of all remaining assets and
terminate its existence within one year of the final debt payment,
requires any passthrough payment obligations to cease at that time,
and prohibits the allocation of property tax to the Redevelopment
Property Tax Trust Fund for that agency following termination of the
agency.
   This bill would eliminate the requirement that the successor
agency dispose of all remaining assets and terminate its existence
within one year of the final debt payment. The bill would
additionally eliminate the requirement that passthrough payment
obligations cease at that time, and would eliminate the prohibition
on the allocation of property tax to the Redevelopment Property Tax
Trust Fund for that agency.
   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 34187 of the Health and Safety Code is amended
to read:
   34187.  (a)  (1)    Commencing
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. 
   (2) 
   (b)  Notwithstanding paragraph  (1) 
 (a)  , the Department of Finance may authorize a successor
agency to retain property tax that otherwise would be distributed to
affected taxing entities pursuant to this subdivision, to the extent
the department determines the successor agency requires those funds
for the payment of enforceable obligations. Upon making a
determination, the department shall provide the county
auditor-controller with information detailing the amounts that it has
authorized the successor agency to retain. Upon determining the
successor agency no longer requires additional funds pursuant to this
subdivision, the department shall notify the successor agency and
the county auditor-controller. The county auditor-controller shall
then distribute the funds in question to the affected taxing entities
in accordance with the provisions of the Revenue and Taxation Code.

   (b) When all of the debt of a redevelopment agency has been
retired or paid off, the successor agency shall dispose of all
remaining assets and terminate its existence within one year of the
final debt payment. When the successor agency is terminated, all
passthrough payment obligations shall cease and no property tax shall
be allocated to the Redevelopment Property Tax Trust Fund for that
agency.