California Legislature—2015–16 Regular Session

Assembly Bill No. 368

Introduced by Assembly Member Steinorth

February 17, 2015

An act to amend Section 33607.5 of the Health and Safety Code, relating to redevelopment.

LEGISLATIVE COUNSEL’S DIGEST

AB 368, as introduced, Steinorth. Community redevelopment.

Existing law relating to redevelopment agencies provides for specified payments with respect to development project areas.

This bill would make nonsubstantive changes to those provisions.

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.  

Section 33607.5 of the Health and Safety Code
is amended to read:

33607.5.  

(a) (1) This section shall apply to each
redevelopment project area that, pursuant to a redevelopment plan
begin delete which end delete begin insert that end insert contains the provisions required by Section 33670, is
either: (A) adopted on or after January 1, 1994, including later
amendments to these redevelopment plans; or (B) adopted prior
to January 1, 1994, but amended, after January 1, 1994, to include
new territory. For plans amended after January 1, 1994, only the
tax increments from territory added by the amendment shall be
subject to this section. All the amounts calculated pursuant to this
section shall be calculated after the amount required to be deposited
in the Low and Moderate Income Housing Fund pursuant to
Sections 33334.2, 33334.3, and 33334.6 has been deducted from
the total amount of tax increment funds received by the agency in
the applicable fiscal year.

(2) The payments made pursuant to this section shall be in
addition to any amounts the affected taxing entities receive
pursuant to subdivision (a) of Section 33670. The payments made
pursuant to this section to the affected taxing entities, including
the community, shall be allocated among the affected taxing
entities, including the community if the community elects to receive
payments, in proportion to the percentage share of property taxes
each affected taxing entity, including the community, receives
during the fiscal year the funds are allocated, which percentage
share shall be determined without regard to any amounts allocated
to a city, a city and county, or a county pursuant to Sections 97.68
and 97.70 of the Revenue and Taxation Code, and without regard
to any allocation reductions to a city, a city and county, a county,
a special district, or a redevelopment agency pursuant to Sections
97.71, 97.72, and 97.73 of the Revenue and Taxation Code and
Section 33681.12. The agency shall reduce its payments pursuant
to this section to an affected taxing entity by any amount the agency
has paid, directly or indirectly, pursuant to Section 33445, 33445.5,
33445.6, 33446, or any other provision of law other than this
section for, or in connection with, a public facility owned or leased
by that affected taxing agency, except: (A)  any amounts the
agency has paid directly or indirectly pursuant to an agreement
with a taxing entity adopted prior to January 1, 1994; or (B)  any
amounts that are unrelated to the specific project area or
amendment governed by this section. The reduction in a payment
by an agency to a school district, community college district, or
county office of education, or for special education, shall be
subtracted only from the amount that otherwise would be available
for use by those entities for educational facilities pursuant to
paragraph (4). If the amount of the reduction exceeds the amount
that otherwise would have been available for use for educational
facilities in any one year, the agency shall reduce its payment in
more than one year.

(3) If an agency reduces its payment to a school district,
community college district, or county office of education, or for
special education, the agency shall do all of the following:

(A) Determine the amount of the total payment that would have
been made without the reduction.

(B) Determine the amount of the total payment without the
reduction begin delete which: end delete begin insert that: end insert (i) would have been considered property
taxes; and (ii) would have been available to be used for educational
facilities pursuant to paragraph (4).

(C) Reduce the amount available to be used for educational
facilities.

(D) Send the payment to the school district, community college
district, or county office of education, or for special education,
with a statement that the payment is being reduced and including
the calculation required by this subdivision showing the amount
to be considered property taxes and the amount, if any, available
for educational facilities.

(4) (A) Except as specified in subparagraph (E), of the total
amount paid each year pursuant to this section to school districts,
43.3 percent shall be considered to be property taxes for the
purposes of paragraph (1) of subdivision (h) of Section 42238 of
the Education Code, as it read on January 1, 2013, and paragraph
(1) of subdivision (j) of Section 42238.02 of the Education Code,
and 56.7 percent shall not be considered to be property taxes for
the purposes of that section and shall be available to be used for
educational facilities, including, in the case of amounts paid during
the 2011-12 fiscal year through the 2015-16 fiscal year, inclusive,
land acquisition, facility construction, reconstruction, remodeling,
maintenance, or deferred maintenance.

(B) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section to community college
districts, 47.5 percent shall be considered to be property taxes for
the purposes of Section 84751 of the Education Code, and 52.5
percent shall not be considered to be property taxes for the purposes
of that section and shall be available to be used for educational
facilities, including, in the case of amounts paid during the 2011-12
fiscal year through the 2015-16 fiscal year, inclusive, land
acquisition, facility construction, reconstruction, remodeling,
maintenance, or deferred maintenance.

(C) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section to county offices of
education, 19 percent shall be considered to be property taxes for
the purposes of Section 2558 of the Education Code, as it read on
January 1, 2013, and Section 2575 of the Education Code, and 81
percent shall not be considered to be property taxes for the purposes
of that section and shall be available to be used for educational
facilities, including, in the case of amounts paid during the 2011-12
fiscal year through the 2015-16 fiscal year, inclusive, land
acquisition, facility construction, reconstruction, remodeling,
maintenance, or deferred maintenance.

(D) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section for special education, 19
percent shall be considered to be property taxes for the purposes
of Section 56712 of the Education Code, and 81 percent shall not
be considered to be property taxes for the purposes of that section
and shall be available to be used for education facilities, including,
in the case of amounts paid during the 2011-12 fiscal year through
the 2015-16 fiscal year, inclusive, land acquisition, facility
construction, reconstruction, remodeling, maintenance, or deferred
maintenance.

(E) If, pursuant to paragraphs (2) and (3), an agency reduces its
payments to an educational entity, the calculation made by the
agency pursuant to paragraph (3) shall determine the amount
considered to be property taxes and the amount available to be
used for educational facilities in the year the reduction was made.

(5) Local education agencies that use funds received pursuant
to this section for school facilities shall spend these funds at schools
that are: (A) within the project area, (B) attended by students from
the project area, (C) attended by students generated by projects
that are assisted directly by the redevelopment agency, or (D)
determined by the governing board of a local education agency to
be of benefit to the project area.

(b) Commencing with the first fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment
agency shall pay to the affected taxing entities, including the
community if the community elects to receive a payment, an
amount equal to 25 percent of the tax increments received by the
agency after the amount required to be deposited in the Low and
Moderate Income Housing Fund has been deducted. In any fiscal
year in which the agency receives tax increments, the community
that has adopted the redevelopment project area may elect to
receive the amount authorized by this paragraph.

(c) Commencing with the 11th fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment
agency shall pay to the affected taxing entities, other than the
community begin delete which end delete begin insert that end insert has adopted the project, in addition to the
amounts paid pursuant to subdivision (b) and after deducting the
amount allocated to the Low and Moderate Income Housing Fund,
an amount equal to 21 percent of the portion of tax increments
received by the agency, which shall be calculated by applying the
tax rate against the amount of assessed value by which the current
year assessed value exceeds the first adjusted base year assessed
value. The first adjusted base year assessed value is the assessed
value of the project area in the 10th fiscal year in which the agency
receives tax increment revenues.

(d) Commencing with the 31st fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment
agency shall pay to the affected taxing entities, other than the
community begin delete which end delete begin insert that end insert has adopted the project, in addition to the
amounts paid pursuant to subdivisions (b) and (c) and after
deducting the amount allocated to the Low and Moderate Income
Housing Fund, an amount equal to 14 percent of the portion of tax
increments received by the agency, which shall be calculated by
applying the tax rate against the amount of assessed value by which
the current year assessed value exceeds the second adjusted base
year assessed value. The second adjusted base year assessed value
is the assessed value of the project area in the 30th fiscal year in
which the agency receives tax increments.

(e) (1) Prior to incurring any loans, bonds, or other
indebtedness, except loans or advances from the community, the
agency may subordinate to the loans, bonds, or other indebtedness
the amount required to be paid to an affected taxing entity by this
section, provided that the affected taxing entity has approved these
subordinations pursuant to this subdivision.

(2) At the time the agency requests an affected taxing entity to
subordinate the amount to be paid to it, the agency shall provide
the affected taxing entity with substantial evidence that sufficient
funds will be available to pay both the debt service and the
payments required by this section, when due.

(3) Within 45 days after receipt of the agency’s request, the
affected taxing entity shall approve or disapprove the request for
subordination. An affected taxing entity may disapprove a request
for subordination only if it finds, based upon substantial evidence,
that the agency will not be able to pay the debt payments and the
amount required to be paid to the affected taxing entity. If the
affected taxing entity does not act within 45 days after receipt of
the agency’s request, the request to subordinate shall be deemed
approved and shall be final and conclusive.

(f) (1) The Legislature finds and declares both of the following:

(A) The payments made pursuant to this section are necessary
in order to alleviate the financial burden and detriment that affected
taxing entities may incur as a result of the adoption of a
redevelopment plan, and payments made pursuant to this section
will benefit redevelopment project areas.

(B) The payments made pursuant to this section are the exclusive
payments that are required to be made by a redevelopment agency
to affected taxing entities during the term of a redevelopment plan.

(2) Notwithstanding any other provision of law, a redevelopment
agency shall not be required, either directly or indirectly, as a
measure to mitigate a significant environmental effect or as part
of any settlement agreement or judgment brought in any action to
contest the validity of a redevelopment plan pursuant to Section
33501, to make any other payments to affected taxing entities, or
to pay for public facilities that will be owned or leased to an
affected taxing entity.

(g) As used in this section, a “local education agency” is a school
district, a community college district, or a county office of
education.