BILL ANALYSIS Ó
AB 204
Page 1
Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Ed Chau, Chair
AB 204
(O'Donnell) - As Amended April 9, 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 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)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
its oversight board and transfers fiduciary duties to the
countywide oversight board.
3)Finds and declares that a special law is necessary and that a
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general law cannot be made applicable because of the unique
circumstances of the County of Los Angeles.
4)Makes other findings and declarations.
EXISTING LAW:
1)Dissolves redevelopment agencies (RDAs) 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
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
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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 RDA
appointed by the mayor or chair of the board of
supervisors, from the recognized employee organization
representing the largest number of former RDA 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;
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;
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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: Unknown.
COMMENTS:
Background: In 2011, the Legislature approved and the Governor
signed two measures, ABX1 26 and ABX1 27 that together dissolved
RDAs as they existed at the time and created a voluntary
redevelopment program on a smaller scale. In response, the
California Redevelopment Association (CRA), League of California
Cities, along with other parties, filed suit challenging the two
measures. The Supreme Court denied the petition for peremptory
writ of mandate with respect to ABX1 26. However, the Court did
grant CRA's petition with respect to ABX1 27. As a result, all
RDAs were required to dissolve as of February 1, 2012.
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
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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.
Existing law provides 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. In
each county where more than one oversight board was created,
existing law requires that on or after July 1, 2016, those
oversight boards are dissolved and there will be only one
oversight board that continues to exist in that county.
Limited application to Los Angeles County : This bill requires
the 71 oversight boards within Los Angeles County to continue to
independently operate beyond July 1, 2016. The bill specifies
to dissolve one of those 71 oversight boards, a successor agency
must adopt a resolution dissolving the oversight board at which
time, the successor agency and the wind down of any
redevelopment dissolution activities, will be overseen by the
singe countywide oversight board.
Purpose of this bill: According to the author, "A single
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
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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. 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."
Double referred : This bill was doubled referred to the Assembly
Local Government Committee, where it passed 9-0 on April 8,
2015.
REGISTERED SUPPORT / OPPOSITION:
Support
City of Long Beach (Sponsor)
AFSCME, AFL-CIO
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AFSCME, District Council 36
City of Bell Gardens
City of Cerritos
City of Downey
City of Lakewood
City of Los Angeles
City of Montebello
City of Paramount
City of Santa Monica
City of Signal Hill
City of Torrance
City of Whittier
Los Angeles County Board of Supervisors
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Los Angeles County Division of the League of California Cities
Opposition
None on file
Analysis Prepared by:Lisa Engel / H. & C.D. / (916) 319-2085