BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 204


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          Date of Hearing:  April 8, 2015


                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT


                              Brian Maienschein, Chair


          AB 204  
          (O'Donnell) - As Introduced January 29, 2015


          SUBJECT:  Redevelopment:  County of Los Angeles.


          SUMMARY:  Requires oversight boards in the County of Los Angeles  
          to continue to operate despite the July 1, 2016, date in  
          existing law that allows only one single countywide oversight  
          board in each county to wind down redevelopment activities.   
          Specifically, this bill:  


          1)Requires an oversight board within the County of Los Angeles  
            to continue to independently operate beyond the July 1, 2016,  
            date in existing law until its successor agency adopts a  
            resolution dissolving its oversight board, after which time  
            the successor agency shall be overseen by the single oversight  
            board established in current law.


          2)Clarifies that any oversight board for a given successor  
            agency shall cease to exist, if a successor agency has  
            dissolved the oversight board pursuant to 1), above.


          3)Declares 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  








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            its oversight board and transfers fiduciary duties to the  
            countywide oversight board.


          4)Finds and declares that a special law is necessary and that a  
            general law cannot be made applicable because of the unique  
            circumstances of the County of Los Angeles.


          5)Makes other findings and declarations.


          EXISTING LAW:  


          1)Dissolves redevelopment agencies and institutes a process for  
            winding down their activities.

          2)Defines "enforceable obligations."

          3)Requires successor agencies make payments due to enforceable  
            obligations, as specified.

          4)Requires successor agencies to prepare a Recognized Obligation  
            Payments Schedule (ROPS), before each six-month fiscal period,  
            in accordance with specified requirements.

          5)Requires each successor agency to have an oversight board of  
            seven members to approve certain actions of the successor  
            agency, and requires the selection of members as follows:

             a)   One member appointed by the county board of supervisors;

             b)   One member appointed by the mayor for the city that  
               formed the redevelopment agency;

             c)   One member appointed by the largest special district, by  
               property tax share, with territory in the territorial  
               jurisdiction of the former redevelopment agency, which is  








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               of the type of special district that is eligible to receive  
               property tax revenues, as specified;
             d)   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 shall be made by the county board of education;

             e)   One member appointed by the Chancellor of the California  
               Community Colleges to represent community college districts  
               in the county;

             f)   One member of the public appointed by the county board  
               of supervisors; and,

             g)   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 the time, as specified.

          6)Requires the Department of Finance (DOF) to review the actions  
            of an oversight board.

          7)Requires, commencing on or after July 1, 2016, in each county  
            where more than one oversight board was created, there to be  
            only one oversight board appointed as follows:

             a)   One member may be appointed by the county board of  
               supervisors;

             b)   One member may be appointed by the city selection  
               committee, as provided.  In a city and county, the mayor  
               may appoint one member;

             c)   One member may be appointed by the independent special  
               district selection committee, as provided;









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             d)   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 shall be made by the county  
               board of education;

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

             f)   One member of the public may be appointed by the county  
               board of supervisors; and,

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

          FISCAL EFFECT:  None


          COMMENTS:  


          1)Redevelopment Dissolution. The Legislature approved the  
            dissolution of the state's 400-plus redevelopment agencies as  
            part of the 2011 Budget Act.  Redevelopment agencies were  
            officially dissolved as of February 1, 2012, after a period of  
            litigation.  To help facilitate the unwinding process,  
            successor agencies were established at the local level to  
            manage redevelopment projects that were underway, to make  
            payments on enforceable obligations and to dispose of  
            redevelopment assets and properties.  Each successor agency  
            has an oversight board that supervises its work, comprised of  
            representatives of the local agencies that serve the project  
            area - the city, county, special districts and educational  
            agencies.  Oversight board members have a fiduciary  
            responsibility to holders of enforceable obligations, as well  
            as the local agencies that would benefit from property tax  
            distributions from the former project area.   








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             Current law says that in a county where only one oversight  
            board was created, there will be no change to the composition  
            of that oversight board, commencing on or after July 1, 2016.   
            Current law also provides that on or after July 1, 2016, in  
            each county where more than one oversight board was created,  
            there shall be only one oversight board that continues to  
            exist in that county, and specifies that the membership of  
            that single oversight board that will exist after July 1,  
            2016, may include the following:  one member appointed by the  
            county board 


            of supervisors, one member appointed by the city selection  
            committee, one member appointed by the independent special  
            district selection committee, one member by the county  
            superintendent of education, as specified, one member by the  
            Chancellor of the California Community Colleges, one member of  
            the public appointed by the county board of supervisors, and  
            one member appointed by the recognized employee organization  
            representing the largest number of successor agency employees  
            in the county.
          2)Bill Summary. This bill requires oversight boards within Los  
            Angeles County to continue to independently operate beyond the  
            July 1, 2016, date in existing law.  There are currently 71  
            oversight boards in Los Angeles County.  The bill specifies  
            that an oversight board in Los Angeles County that continues  
            to exist beyond the July 1, 2016, date would no longer exist  
            once the successor agency adopts a resolution dissolving that  
            oversight board, and when that happens, that successor agency  
            would then be overseen by the single county oversight board  
            that is established pursuant to existing law.


            This bill is sponsored by the City of Long Beach.


          3)Author's Statement. According to the author, "A single  








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            oversight board would not expeditiously dispose of properties  
            given the number of property covered by a single Long Range  
            Property Management Plan.  Additionally, a single county  
            oversight board will not have nearly the same level of  
            institutional knowledge of each Successor Agency's operations  
            as individual local boards.  The oversight boards need their  
            individual institutional knowledge to ensure financial  
            transactions and tax distributions occur smoothly and without  
            delay."  


            The author also notes that "Because a large number of  
            enforceable obligations remain in Los Angeles County,  
            funneling the workload of 71 oversight boards into a single  
            entity will cause substantial gridlock in the redevelopment  
            dissolution process.  Twenty-seven Successor Agencies in Los  
            Angeles County have not yet received DOF-approved Long Range  
            Property Management Plans.  Of these 27, eight successor  
            agencies are still lacking a Finding of Completion."


          4)Arguments in Support.  Supporters of the bill argue that it  
            will shield the single county oversight board in Los Angeles  
            from having to immediately tackle a workload that would have  
            otherwise been spread across 71 oversight boards.  Supporters  
            also note that the current one-size-fits-all approach in  
            existing law could unfairly burden cities which need  
            additional attention in their oversight processes.  


          5)Arguments in Opposition. None on file.


          6)Double-Referral.   This bill is double-referred to the Housing  
            and Community Development Committee.


          REGISTERED SUPPORT / OPPOSITION:









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          Support


          City of Long Beach [SPONSOR]


          American Federation of State, County and Municipal Employees,  
          AFL-CIO


          American Federation of State, County and Municipal Employees,  
          District Council 36


          Cities of Bell Gardens, Cerritos, Downey, Lakewood, Montebello,  
          Paramount, Santa Monica, Signal Hill, Torrance, Whittier


          County of Los Angeles


          Eric Garcetti, Mayor, City of Los Angeles


          Los Angeles County Division, League of California Cities




          Opposition


          None on file











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          Analysis Prepared by:Debbie Michel / L. GOV. / (916) 319-3958