Amended in Senate August 5, 2014

Amended in Assembly April 10, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2647

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 begin delete to establish a separate Redevelopment Property Tax Trust Fund for the former Lake Forest Redevelopment Agency and end delete to allocate property tax revenues attributable to the El Toro Project Area, as defined, between the Redevelopment Property Tax 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 begin delete do
both of the following: end delete

begin delete

(1) Establish a separate Redevelopment Property Tax Trust
Fund for the former Lake Forest Redevelopment Agency.

end delete

begin delete (2) end delete begin delete   end delete begin delete Allocate end delete begin insert allocate end insert 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
provided 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.

begin delete

(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.

end delete begin insert

(2) After deducting the administrative costs allowed under
Section 34182 and Section 95.3 of the Revenue and Taxation Code,
as described in subdivision (a) of Section 34183, and remitting
the amounts required under paragraph (1) of subdivision (a) of
Section 34183, the Orange County Auditor Controller shall transfer
the sum of both of the following, determined for the entire fiscal
year, into the redevelopment obligation retirement fund of the
successor agency to the Orange County Development Agency for
distribution as required by law and applicable bond covenants:

end insert begin insert

(A) The amount required by Section 33670.9.

end insert begin insert

(B) 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
(commencing with Section 34161), this part, or other law.

end insert begin insert

(3) After depositing the amount described in paragraph (2) into
the redevelopment obligation retirement fund of the successor
agency to the Orange County Development Agency, the Orange
County Auditor Controller shall deposit into the Redevelopment
Property Tax Trust Fund established for the former Lake Forest
Redevelopment Agency the transfer agreement amount, as set forth
in the applicable Recognized Obligation Payment Schedule
submitted by the successor agency to the Orange County
Development Agency and approved by the Department of Finance,
to the extent moneys are available from the portion of the former
Orange County Development Agency’s Redevelopment Property
Tax Trust Fund attributable to the El Toro Project Area.

end insert begin insert

(4) The payment described in paragraph (3) shall be paid prior
to all payments listed on the recognized obligation payment
schedule of the successor agency to the former Orange County
Development Agency other than the payments described in
paragraph (2), unless otherwise required by statute or applicable
bond covenants.

end insert

(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 begin delete Assembly Bill 26 of the 2011-12 First Extraordinary
Session of 2011 end delete begin insert the enactment of Part 1.8 (commencing with
Section 34161) and this part end insert 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.

begin insert

(3) “Transfer agreement amount” means the amount of the
payment required to be made by the former Orange County
Development Agency to the former Lake Forest Redevelopment
Agency pursuant to the transfer agreement, less the amount of
passthrough payments attributable to the El Toro Project Area
that are disbursed by the Orange County Auditor Controller
pursuant to paragraph (1) of subdivision (a) of Section 34183.

end insert

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 preexisting
bonds secured by begin insert former tax increment revenue generated within end insert
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.