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