Amended in Assembly April 9, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 204

Introduced by Assembly Member O’Donnell

January 29, 2015

An act to amend Section 34179 of the Health and Safety Code, relating to redevelopment.

LEGISLATIVE COUNSEL’S DIGEST

AB 204, as amended, O’Donnell. Redevelopment: County of Los Angeles.

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, subject to review by oversight boards, and to, among other things, make payments due for enforceable obligations and to perform obligations required pursuant to any enforceable obligation. Existing law authorizes, in each county where more than one oversight board was created, only one oversight board to be appointed on and after July 1, 2016.

This bill would require an oversight board within the County of Los Angeles to continue to independently operate past the July 1, 2016, consolidation date, until its successor agency adopts a resolution dissolving the begin delete board, end delete begin insert board and the board approves that resolution, end insert as provided.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

(a) The Legislature finds and declares that the
oversight boards to individual successor agencies were established
pursuant to the Redevelopment Agency Dissolution Act, which
prescribes that all oversight boards in the County of Los Angeles
will be consolidated into a single countywide oversight board by
July 1, 2016.

(b) The Legislature further finds that collapsing all functions
of the 71 oversight boards in the County of Los Angeles into a
single countywide oversight board would create administrative
gridlock and be a severe impediment to the expeditious disposition
of properties owned by former redevelopment agencies.

(c) In recognition of these findings and to ensure that the duties
of the 71 oversight boards and successor agencies in the County
of Los Angeles will be met in a timely manner, it is the intent of
the Legislature to continue all oversight boards in the County of
Los Angeles in existence until the respective successor agency
requests dissolution of its oversight board and transfer of fiduciary
duties to the countywide oversight board.

SEC. 2.  

Section 34179 of the Health and Safety Code is
amended to read:

34179.  

(a) Each successor agency shall have an oversight
board composed of seven members. The members shall elect one
of their members as the chairperson and shall report the name of
the chairperson and other members to the Department of Finance
on or before May 1, 2012. Members shall be selected as follows:

(1) One member appointed by the county board of supervisors.

(2) One member appointed by the mayor for the city that formed
the redevelopment agency.

(3) (A) One member appointed by the largest special district,
by property tax share, with territory in the territorial jurisdiction
of the former redevelopment agency, that is of the type of special
district that is eligible to receive property tax revenues pursuant
to Section 34188.

(B)  On or after the effective date of this subparagraph, the
county auditor-controller may determine which is the largest special
district for purposes of this section.

(4) One member appointed by the county superintendent of
education to represent schools, if the superintendent is elected. If
the county superintendent of education is appointed, then the
appointment made pursuant to this paragraph shall be made by the
county board of education.

(5) One member appointed by the Chancellor of the California
Community Colleges to represent community college districts in
the county.

(6) One member of the public appointed by the county board
of supervisors.

(7) One member representing the employees of the former
redevelopment agency appointed by the mayor or chair of the
board of supervisors from the recognized employee organization
representing the largest number of former redevelopment agency
employees employed by the successor agency at that time. If city
or county employees performed administrative duties of the former
redevelopment agency, the appointment shall be made from the
recognized employee organization representing those employees.
If a recognized employee organization does not exist for either the
employees of the former redevelopment agency or the city or
county employees performing administrative duties of the former
redevelopment agency, the appointment shall be made from among
the employees of the successor agency. In voting to approve a
contract as an enforceable obligation, a member appointed pursuant
to this paragraph shall not be deemed to be interested in the contract
by virtue of being an employee of the successor agency or
community for purposes of Section 1090 of the Government Code.

(8) If the county or a joint powers agency formed the
redevelopment agency, the largest city by acreage in the territorial
jurisdiction of the former redevelopment agency may select one
member. If there are no cities with territory in a project area of the
redevelopment agency, the county superintendent of education
may appoint an additional member to represent the public.

(9) If there are no special districts of the type that are eligible
to receive property tax pursuant to Section 34188 within the
territorial jurisdiction of the former redevelopment agency, the
county may appoint one member to represent the public.

(10) If a redevelopment agency was formed by an entity that is
both a charter city and a county, the oversight board shall be
composed of seven members selected as follows: three members
appointed by the mayor of the city, if that appointment is subject
to confirmation by the county board of supervisors; one member
appointed by the largest special district, by property tax share, with
territory in the territorial jurisdiction of the former redevelopment
agency, that is the type of special district that is eligible to receive
property tax revenues pursuant to Section 34188; one member
appointed by the county superintendent of education to represent
schools; one member appointed by the Chancellor of the California
Community Colleges to represent community college districts;
and one member representing employees of the former
redevelopment agency appointed by the mayor of the city, if that
appointment is subject to confirmation by the county board of
supervisors, to represent the largest number of former
redevelopment agency employees employed by the successor
agency at that time.

(b) The Governor may appoint individuals to fill any oversight
board member position described in subdivision (a) that has not
been filled by May 15, 2012, or any member position that remains
vacant for more than 60 days.

(c) The oversight board may direct the staff of the successor
agency to perform work in furtherance of the oversight board’s
duties and responsibilities under this part. The successor agency
shall pay for all of the costs of meetings of the oversight board
and may include those costs in its administrative budget. Oversight
board members shall serve without compensation or reimbursement
for expenses.

(d) Oversight board members are protected by the immunities
applicable to public entities and public employees governed by
Part 1 (commencing with Section 810) and Part 2 (commencing
with Section 814) of Division 3.6 of Title 1 of the Government
Code.

(e) A majority of the total membership of the oversight board
shall constitute a quorum for the transaction of business. A majority
vote of the total membership of the oversight board is required for
the oversight board to take action. The oversight board shall be
deemed to be a local entity for purposes of the Ralph M. Brown
Act, the California Public Records Act, and the Political Reform
Act of 1974. All actions taken by the oversight board shall be
adopted by resolution.

(f) All notices required by law for proposed oversight board
actions shall also be posted on the successor agency’s Internet
Web site or the oversight board’s Internet Web site.

(g) Each member of an oversight board shall serve at the
pleasure of the entity that appointed that member.

(h) The Department of Finance may review an oversight board
action taken pursuant to this part. Written notice and information
about all actions taken by an oversight board shall be provided to
the department by electronic means and in a manner of the
department’s choosing. An action shall become effective five
business days after notice in the manner specified by the
department is provided unless the department requests a review.
Each oversight board shall designate an official to whom the
department may make those requests and who shall provide the
department with the telephone number and email contact
information for the purpose of communicating with the department
pursuant to this subdivision. Except as otherwise provided in this
part, if the department requests a review of a given oversight board
action, it shall have 40 days from the date of its request to approve
the oversight board action or return it to the oversight board for
reconsideration and the oversight board action shall not be effective
until approved by the department. If the department returns the
oversight board action to the oversight board for reconsideration,
the oversight board shall resubmit the modified action for
department approval and the modified oversight board action shall
not become effective until approved by the department. If the
department reviews a Recognized Obligation Payment Schedule,
the department may eliminate or modify any item on that schedule
prior to its approval. The county auditor-controller shall reflect
the actions of the department in determining the amount of property
tax revenues to allocate to the successor agency. The department
shall provide notice to the successor agency and the county
auditor-controller as to the reasons for its actions. To the extent
that an oversight board continues to dispute a determination with
the department, one or more future recognized obligation schedules
may reflect any resolution of that dispute. The department may
also agree to an amendment to a Recognized Obligation Payment
Schedule to reflect a resolution of a disputed item, however, this
shall not affect a past allocation of property tax or create a liability
for any affected taxing entity.

(i) Oversight boards shall have fiduciary responsibilities to
holders of enforceable obligations and the taxing entities that
benefit from distributions of property tax and other revenues
pursuant to Section 34188. Further, the provisions of Division 4
(commencing with Section 1000) of the Government Code shall
apply to oversight boards. Notwithstanding Section 1099 of the
Government Code, or any other law, any individual may
simultaneously be appointed to up to five oversight boards and
may hold an office in a city, county, city and county, special
district, school district, or community college district.

(j) Commencing on and after July 1, 2016, in each county where
more than one oversight board was created by operation of the act
adding this part, there shall be one oversight board appointed as
follows:

(1) One member may be appointed by the county board of
supervisors.

(2) One member may be appointed by the city selection
committee established pursuant to Section 50270 of the
Government Code. In a city and county, the mayor may appoint
one member.

(3) One member may be appointed by the independent special
district selection committee established pursuant to Section 56332
of the Government Code, for the types of special districts that are
eligible to receive property tax revenues pursuant to Section 34188.

(4) One member may be appointed by the county superintendent
of education to represent schools if the superintendent is elected.
If the county superintendent of education is appointed, then the
appointment made pursuant to this paragraph shall be made by the
county board of education.

(5) One member may be appointed by the Chancellor of the
California Community Colleges to represent community college
districts in the county.

(6) One member of the public may be appointed by the county
board of supervisors.

(7) One member may be appointed by the recognized employee
organization representing the largest number of successor agency
employees in the county.

(k) The Governor may appoint individuals to fill any oversight
board member position described in subdivision (j) that has not
been filled by July 15, 2016, or any member position that remains
vacant for more than 60 days.

(l) Commencing on and after July 1, 2016, in each county where
only one oversight board was created by operation of the act adding
this part, then there will be no change to the composition of that
oversight board as a result of the operation of subdivision (b).

(m) Any oversight board for a given successor agency shall
cease to exist when all of the indebtedness of the dissolved
redevelopment agency has been repaid or a successor agency has
dissolved the oversight board pursuant to subdivision (q).

(n) An oversight board may direct a successor agency to provide
legal or financial advice in addition to that provided by agency
staff.

(o) An oversight board is authorized to contract with the county
or other public or private agencies for administrative support.

(p) On matters within the purview of the oversight board,
decisions made by the oversight board supersede those made by
the successor agency or the staff of the successor agency.

(q) Notwithstanding subdivision (j), an oversight board within
the County of Los Angeles shall continue to independently operate
until its successor agency adopts a resolution dissolving its
oversight begin delete board, end delete begin insert board and its oversight board approves that
resolution, end insert after which time the successor agency shall be overseen
by the oversight board established pursuant to subdivision (j).

SEC. 3.  

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 circumstances of the County
of Los Angeles.