BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1963
                                                                  Page  1

          Date of Hearing:   May 7, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 1963 (Atkins) - As Amended:  April 21, 2014 

          Policy Committee:                              Local  
          GovernmentVote:9 - 0

          Urgency:     Yes                  State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill extends the date from January 1, 2015 to January 1,  
          2016 by which Long Range Property Management Plans (LRPMP)  
          submitted by redevelopment successor agencies must be approved  
          by the Department of Finance (DOF).

           FISCAL EFFECT  

          Minor and absorbable costs to the Department of Finance.  $22  
          million was appropriated to DOF in AB 1484 (Blumenfield),  
          Chapter 26, Statutes of 2012 for various redevelopment wind down  
          activities, including the activities covered in this bill.

           COMMENTS  

           1)Purpose  . According to DOF, as of April 25, 2014, there are 252  
            LRPMPs that have been submitted to DOF, 99 of which have been  
            approved.  Thus, of 385 total successor agencies statewide,  
            286 still need DOF approval by the end of 2014. This urgency  
            bill extends the deadline for DOF to approve the LRPMPs to  
            January 1, 2016 to better ensure that former redevelopment  
            agency property is disposed of in accordance with the  
            Legislature's intent.

            The author notes, "This submission and review process may take  
            longer than originally planned. Given that the approval of the  
            plans is the key to preventing widespread "fire sale" of  
            properties that Legislators were hoping to avoid through the  
            passage of AB 1484, it is crucial that all successor agencies  
            that receive a finding of completion are able to get an  
            approved plan."  








                                                                  AB 1963
                                                                  Page  2


           2)Background  . AB 1484 (Blumenfield), Chapter 26, Statutes of  
            2012, was the redevelopment trailer bill for the 2012-13  
            Budget. The bill clarified certain matters associated with the  
            dissolution of RDAs and appropriated $22 million to the  
            Director of Finance for its purposes.
           
            One of the provisions in AB 1484 requires, after DOF issues a  
            finding of completion, the successor agency to prepare a  
            long-range property management plan that addresses the  
            disposition and use of the real properties of the former  
            redevelopment agency, and requires the report to be submitted  
            to the oversight board and DOF for approval no later than six  
            months following the issuance of the finding of completion.  
            DOF is required to approve a 


            long-range property management plan by January 1, 2015  
            otherwise the property of the former redevelopment agency is  
            to be disposed of according to current law.

           Analysis Prepared by  :    Jennifer Swenson / APPR. / (916)  
          319-2081