BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 204| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 204 Author: O'Donnell (D) Amended: 6/16/15 in Senate Vote: 21 SENATE GOVERNANCE & FIN. COMMITTEE: 6-0, 6/10/15 AYES: Nguyen, Beall, Hernandez, Lara, Moorlach, Pavley NO VOTE RECORDED: Hertzberg ASSEMBLY FLOOR: 78-0, 5/4/15 - See last page for vote SUBJECT: Redevelopment: County of Los Angeles SOURCE: Author DIGEST: This bill prohibits oversight boards in Los Angeles County from being consolidated into a single countywide oversight board unless a successor agency adopts a resolution dissolving the board. ANALYSIS: Existing law: 1)Establishes successor agencies to manage the process of unwinding former redevelopment agencies' (RDAs') affairs. AB 204 Page 2 2)Directs that each successor agency has an oversight board that is responsible for supervising it and approving its actions. 3)Allows the Department of Finance (DOF) to review and request reconsideration of an oversight board's decisions. 4)Requires that, until July 1, 2016, each successor agency's seven-member oversight board must be comprised of seven members appointed by specified appointing authorities. 5)Requires, on July 1, 2016, in each county in which there is more than one oversight board, those oversight boards to be consolidated into a single seven-member oversight board comprised of members appointed by specified appointing authorities. This bill: 1)Requires that an oversight board within Los Angeles County must continue to independently operate until its successor agency adopts a resolution dissolving its oversight board and the oversight board approves that resolution. 2)Specifies that a successor agency's oversight board ceases to exist after a successor agency resolution to dissolve its oversight board is adopted and approved. 3)Specifies that, after a successor agency's oversight board is dissolved, the successor agency will be overseen by the oversight board established pursuant to the statute creating a single countywide oversight board on July 1, 2016. 4)Makes additional technical and conforming changes to the statutes governing successor agencies' oversight boards. AB 204 Page 3 Background Local officials in Los Angeles County worry that consolidating the county's 71 oversight boards into a single countywide oversight board will place overwhelming administrative burdens on that oversight board. They want the Legislature to prevent all oversight boards in Los Angeles County from being consolidated into a single board next year. Comments Purpose of the bill. Stakeholders in the redevelopment dissolution process in Los Angeles County worry about the massive volume of work that would be handled by a single countywide oversight board after state law consolidates the county's 71 oversight boards next year. Officials note that the countywide oversight board will not have the same level of detailed, institutional knowledge about any particular successor agency's operations that individual oversight boards currently possess. This may make it difficult for the countywide board to act expeditiously in approving some successor agencies' actions. Administrative gridlock and slow response times will make it difficult to complete the complex property disposition functions, financial transactions, and tax distributions that are needed to smoothly unwind former RDAs' affairs in Los Angeles County. By preventing all 71 successor agencies from simultaneously becoming answerable to a single oversight board, this bill avoids placing a potentially counterproductive burden on the redevelopment wind-down process in Los Angeles County. Trailer bill alternative? After Governor Brown revised his proposed State Budget last month, DOF released draft language of a budget trailer bill which includes an alternative approach to restructuring Los Angeles County's oversight boards. Under the proposal released by DOF, on July 1, 2016, the 71 oversight boards in Los Angeles County would be consolidated into five oversight boards that would be responsible for successor agencies within each of Los Angeles' five county supervisor districts. AB 204 Page 4 FISCAL EFFECT: Appropriation: No Fiscal Com.:NoLocal: No SUPPORT: (Verified6/16/15) American Federation of State, County and Municipal Employees, AFL-CIO American Federation of State, County and Municipal Employees, District Council 36 City of Alhambra City of Bell Gardens City of Cerritos City of Downey City of Lakewood City of Long Beach City of Montebello City of Paramount City of Santa Monica City of Signal Hill City of Torrance City of Whittier County of Los Angeles Downtown Long Beach Associates Los Angeles County Division, League of California Cities Los Angeles Mayor Eric Garcetti OPPOSITION: (Verified6/16/15) None received ASSEMBLY FLOOR: 78-0, 5/4/15 AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, AB 204 Page 5 Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins NO VOTE RECORDED: Campos, Dahle Prepared by:Brian Weinberger / GOV. & F. / (916) 651-4119 6/17/15 14:23:59 **** END ****