BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        AB 204|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                   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.  










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          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.









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          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.








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          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,  







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                                                                    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


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