BILL NUMBER: AB 2647 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 10, 2014
INTRODUCED BY Assembly Member Wagner
FEBRUARY 21, 2014
An act to add Section 34182.1 to the Health and Safety Code,
relating to redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
AB 2647, as amended, Wagner. Redevelopment: El Toro Project Area:
former City of Lake Forest Redevelopment Agency.
Existing law dissolved redevelopment agencies and community
development agencies as of February 1, 2012, and provides for the
designation of successor agencies to wind down the affairs of the
dissolved redevelopment agencies and to, among other things, make
payments due for enforceable obligations and to perform obligations
required pursuant to any enforceable obligation. Existing law
additionally requires the county auditor-controller to determine
annually the amount of property taxes that would have been allocated
to each redevelopment agency had the agency not been dissolved, and
to deposit that amount into the Redevelopment Property Tax Trust
Fund. Existing law requires the county auditor-controller for each
fiscal year to allocate moneys in the Redevelopment Property Tax
Trust Fund for passthrough payment obligations, enforceable
obligations of the dissolved redevelopment agency, and administrative
costs, as specified.
This bill would require the Orange County Auditor-Controller to
determine the amount of property taxes generated from the El
Toro Project Area of the Neighborhood Development and Preservation
Project Area. This bill would require the auditor-controller, prior
to depositing those funds into a Redevelopment Property Tax Trust
Fund for the former City of Lake Forest Redevelopment Agency, to
determine the amount necessary to satisfy the bond obligations that
pre-existed the creation of the City of Lake Forest Redevelopment
Agency and deposit those funds into the Redevelopment Property Tax
Trust Fund of the former Orange County Redevelopment Agency. This
bill would then require then auditor-controller to deposit the
remaining funds attributable to the El Toro Project Area into the
former City of Lake Forest Redevelopment Agency Redevelopment
Property Tax Trust Fund, establish a separate
Redevelopment Property Tax Trust Fund for the former Lake Forest
Redevelopment Agency and to allocate property tax revenues
attributable to the El Toro Project Area, as defined, between the
Redevelopment Property T ax Trust Fund established for the
former Orange County Development Agency and the Redevelopment
Property Tax Trust Fund established for the former Lake Forest
Redevelopment Agency, as provided.
By adding to the duties of local government officials, this bill
would impose a state-mandated local program.
This bill would make legislative findings and declarations as to
the necessity of a special statute for the former City of Lake Forest
Redevelopment Agency.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 34182.1 is added to the Health and Safety Code,
to read:
34182.1. (a) The Orange County Auditor
Controller shall determine the amount of property taxes
generated from the El Toro Project Area of the Neighborhood
Development and Preservation Project Area. Prior to depositing those
funds into a Redevelopment Property Tax Trust Fund for the former
City of Lake Forest Redevelopment Agency, the auditor-controller
shall determine the amount necessary to satisfy the bond obligations
that pre-existed the creation of the City of Lake Forest
Redevelopment Agency and shall deposit the funds necessary to satisfy
those pre-existing bond obligations into the Redevelopment Property
Tax Trust Fund of the former Orange County Development Agency. The
auditor-controller shall then deposit, after payments pursuant to
statutory formulas or contractual agreements with other taxing
entities, the remaining funds attributable to the El Toro Project
Area into the former City of Lake Forest Redevelopment Agency
Redevelopment Property Tax Trust Fund. do both of the
following:
(1) Establish a separate Redevelopment Property Tax Trust Fund for
the former Lake Forest Redevelopment Agency.
(2) Allocate property tax revenues
attributable to the El Toro Project Area between the Redevelopment
Property Tax Fund established for the former Orange County
Development Agency and the Redevelopment Property Tax Trust Fund
established for the former Lake Forest Redevelopment
Agency as pr ovided in subdivision (b).
(b) (1) All property tax revenues deposited by the Orange County
Auditor Controller pursuant to paragraph (1) of subdivision (c) of
Section 34182 during each fiscal year that are attributable to the
Neighborhood Preservation and Development Project Area, including the
El Toro Project Area, shall initially be placed into the
Redevelopment Property Tax Trust Fund for the former Orange County
Development Agency.
(2) Prior to January 2, 2015, and prior to each June 1 and January
2 thereafter, or such other Redevelopment Property Tax Trust Fund
distribution date as may be determined by the Legislature, the Orange
County Auditor Controller shall determine the sum of the following:
(A) For each six-month fiscal period, the amount of administrative
costs pursuant to subdivision (a) of Section 34183 and negotiated
and statutory passthrough obligations pursuant to paragraph (1) of
subdivision (a) of Section 34183.
(B) For each fiscal year, both of the following:
(i) The transfer amount required by Section 33670.9.
(ii) All other obligations secured by a prior claim on, or pledge
of, moneys in the Redevelopment Property Tax Trust Fund of the
former Orange County Development Agency, including tax allocation
bonds, as applicable, that are payable on a basis prior to any
transfer to the former Lake Forest Redevelopment Agency pursuant to
the Transfer Agreement or pursuant to Part 1.8 or 1.85 of Division 24
of the Health and Safety Code or any other law.
(3) If the moneys in the Redevelopment Property Tax Trust Fund
established for the former Orange County Development Agency,
exclusive of property tax revenues attributable to the El Toro
Project Area, are sufficient to pay all obligations described in
paragraph (2) of subdivision (b), the Orange County Auditor
Controller shall deposit into the Redevelopment Property Tax Trust
Fund established for the former Lake Forest Redevelopment Agency the
amount by which the property tax revenues attributable to the El Toro
Project Area exceeds the amount to be retained by the Orange County
Development Agency pursuant to the transfer agreement. The moneys
deposited into the Redevelopment Property Tax Trust Fund established
for the former Lake Forest Redevelopment Agency pursuant to this
paragraph shall be distributed in accordance with Section 34183.
(4) If the moneys in the Redevelopment Property Tax Trust Fund
established for the former Orange County Development Agency,
exclusive of property tax revenues attributable to the El Toro
Project Area, are not sufficient to pay all obligations described in
paragraph (2) of subdivision (b), the Orange County Auditor
Controller shall distribute the moneys in the Redevelopment Property
Tax Trust Fund established for the former Orange County Development
Agency that are attributable to the El Toro Project Area as follows:
(A) An amount equal to the greater of either the following shall
be retained in the Redevelopment Property Tax Trust Fund established
for the former Orange County Development Agency and distributed in
accordance with Section 34183:
(i) The amount to be retained by the Orange County Development
Agency pursuant to the transfer agreement.
(ii) The amount necessary to fund the balance of the obligations
described in paragraph (2) of subdivision (b) in excess of the amount
otherwise available in the Redevelopment Property Tax Trust Fund for
the former Orange County Development Agency without regard to
property tax revenues attributable to the El Toro Project Area.
(B) The remainder shall be deposited into the Redevelopment
Property Tax Fund established for the former Lake Forest
Redevelopment Agency and distributed in accordance with Section
34183.
(c) This section shall not be construed to affect the obligations
of the successor agency to the Orange County Development Agency under
Section 33670.9. Such obligations shall be prior to any transfer of
property tax revenues directed by this section and this section shall
be interpreted and construed in a manner consistent with Section
33670.9.
(d) This section is intended to implement the transfer agreement
in light of Assembly Bill 26 of the 2011-12 First Extraordinary
Session of 2011 and, except as expressly set forth herein, this
section is not intended to alter the transfer agreement, which shall
continue in full force and effect in accordance with its terms.
(e) For purposes of this section, both of the following
definitions shall apply:
(1) "El Toro Project Area" means the portion of the former Orange
County Development Agency's Neighborhood Preservation and Development
Project Area that was transferred to the Lake Forest Redevelopment
Agency pursuant to the transfer agreement and Sections 33216 and
33216.1.
(2) "Transfer agreement" means the Agreement to Transfer
Territorial Jurisdiction of a Noncontiguous Portion of a
Redevelopment Project Area dated as of July 6, 1999, entered into
among the County of Orange, the Orange County Development Agency, the
City of Lake Forest, the Lake Forest Redevelopment Agency, and the
City of Laguna Hills.
SEC. 2. 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 economic circumstances in the area served by
the former City of Lake Forest Redevelopment Agency relating to the
payment of debt service on pre-existing
preexisting bonds secured by the El Toro Project Area.
SEC. 3. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.