BILL NUMBER: AB 654 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 22, 2015
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Brown
( Coauthor: Senator Morrell
)
FEBRUARY 24, 2015
An act to amend Sections 34171 and 34177 of, and to add
Sections 34170.1 and 34191.6 to, Section 34183 of
the Health and Safety Code, relating to redevelopment.
redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
AB 654, as amended, Brown. Community redevelopment.
Redevelopment: revenues from property tax override
rates.
(1) Existing law dissolved redevelopment agencies and community
development agencies as of February 1, 2012, and provides for the
designation of successor agencies to wind down the affairs of the
dissolved redevelopment agencies. Existing law requires revenues
equivalent to those that would have been allocated to each
redevelopment agency, had the agency not been dissolved, to be
allocated to the Redevelopment Property Tax Trust Fund of each
successor agency for, among other things, making payments on the
principal of, and interest on, loans and moneys advanced to, or
indebtedness incurred by, the dissolved redevelopment
agencies and making payments due for enforceable obligations.
Existing law also requires successor agencies to perform obligations
required pursuant to any enforceable obligation.
agencies. Existing law requires, from February 1, 2012, to July 1,
2012, inclusive, and for each fiscal year thereafter, the county
auditor-controller, after deducting administrative costs, to allocate
property tax revenues in each Redevelopment Property Tax Trust Fund
in a specified manner.
This bill would provide that any action by the Department of
Finance that occurred on or after June 28, 2011, carrying out the
department's obligations under the provisions described above,
constitutes a department action for the preparation, development, or
administration of the state budget and is exempt from the rulemaking
provisions of the Administrative Procedures Act.
(2) Existing law defines "administrative cost allowance" for the
purposes of successor agencies' duties in the winding down of the
affairs of the dissolved redevelopment agencies to mean an amount
that is payable from property tax revenues up to a certain percentage
of the property tax allocated to the successor agency on the
Recognized Obligation Payment Schedule covering a specified period,
and up to a certain percentage of the property tax allocated to the
Redevelopment Obligation Retirement Fund that is allocated to the
successor agency for each fiscal year thereafter.
This bill would restate the definition of "administrative cost
allowance" as the maximum amount of administrative costs that may be
paid by a successor agency from the Redevelopment Property Tax Trust
Fund in a fiscal year. This bill would, commencing July 1, 2016, and
for each fiscal year thereafter, limit the administrative cost
allowance to an amount not to exceed 3% of the actual property tax
distributed to the successor agency for payment of approved
enforceable obligations, reduced by the successor agency's
administrative cost allowance and loan payments made to the city,
county, or city and county that created the redevelopment agency, as
specified, and would limit a successor agency's annual administrative
costs to an amount not to exceed 50% of the total Redevelopment
Property Tax Trust Fund distributed to pay enforceable obligations.
(3) Existing law excludes from the term "administrative cost
allowance" any administrative costs that can be paid from bond
proceeds or from sources other than property tax any expenses related
to assets or obligations, settlements and judgments, and the costs
of maintaining assets prior to disposition.
This bill would delete the exclusions described above and would
further require the "administrative cost allowance" to be approved by
the oversight board and to be the sole funding source for any legal
expenses related to civil actions contesting the validity of laws and
actions dissolving and winding down the redevelopment agencies, as
specified.
(4) Existing law defines the term "enforceable obligation" to
include specified amounts owed by a former redevelopment agency. The
California Constitution generally limits ad valorem taxes on real
property to 1% of the full cash value of that property. The
California Constitution authorizes a local entity to, with voter
approval, levy an additional property tax rate for specified bonded
indebtedness.
This bill would provide that "enforceable obligation" includes
amounts derived from an additional property tax rate approved by the
voters of a city, county, city and county, or special district to
make payments in support of capital projects and programs related to
the State Water Project, consistent with the use approved by the
voters of the city, county, city and county, or special district.
(5) Existing law specifies that the term "enforceable obligation"
includes amounts borrowed from, or payments owing to, the Low and
Moderate Income Housing Fund of a redevelopment agency that had been
deferred as of a certain date.
This bill would provide that the enforceable obligation described
above includes only amounts borrowed from, or payments owing to, the
Low and Moderate Income Housing Fund of a redevelopment agency
pursuant to specified provisions that had been deferred as of a
certain date. This bill would provide that this definition applies
retroactively to all enforceable obligations recognized above on or
after June 28, 2011.
(6) Existing law also specifies that the term "enforceable
obligation" does not include any agreements, contracts, or
arrangements between the city, county, or city and county that
created the redevelopment agency and the former redevelopment agency,
as specified. Notwithstanding this provision, existing law
authorizes certain written agreements to be deemed enforceable
obligations.
This bill would additionally authorize written agreements entered
into at the time of issuance, but in no event later than June 27,
2011, for the financing or refinancing of indebtedness obligations
that existed prior to January 1, 2011, and solely for the purpose of
securing or repaying those indebtedness obligations, to be deemed
enforceable obligations.
(7) Existing law requires a successor agency to, among other
things, prepare a Recognized Obligation Payment Schedule for payments
on enforceable obligations for each 6-month fiscal period.
This bill would revise the timeline for the preparation of the
required Recognized Obligation Payment Schedule to require the
successor agency to prepare a schedule for a one-year fiscal period,
with the first of these periods beginning July 1, 2016, and would
authorize the Recognized Obligation Payment Schedule to be amended by
the oversight board once per Recognized Obligation Payment Schedule
period, if the oversight board makes a finding that a revision is
necessary for the payment of approved enforceable obligations, as
specified.
This bill would, beginning August 1, 2015, require successor
agencies to submit a Last and Final Recognized Obligation Payment
Schedule, which shall list the remaining enforceable obligations of
the successor agency and the total outstanding obligation and a
schedule of remaining payments for each enforceable obligation, for
approval by the oversight board and the Department of Finance, if
specified conditions are met. This bill would require the department
to review the Last and Final Recognized Obligation Payment Schedule,
as specified, and would require, upon approval by the department, the
Last and Final Recognized Obligation Payment Schedule to establish
the maximum amount of Redevelopment Property Tax Trust Funds to be
distributed to the successor agency, as specified. This bill would
authorize the successor agencies to submit no more than 2 requests to
the department to amend the approved Last and Final Recognized
Obligation Payment Schedule, as specified. This bill would also
require the county auditor-controller to review the Last and Final
Recognized Obligation Payment Schedule and to continue to allocate
moneys in the Redevelopment Property Tax Trust Fund in a specified
order of priority.
This bill would authorize a city, county, city and county, or
special district that levies a property tax rate, approved by the
voters of a city, county, city and county, or special district to
make payments in support of the State Water Project and levied in
addition to the general property tax rate, to make a request to an
oversight board to prohibit revenues derived from that property tax
rate from being deposited into a Redevelopment Property Tax Fund.
This bill would authorize an oversight board to deny this request
based on substantial evidence that a former redevelopment agency made
a pledge of revenues that specifically included revenues derived
from the imposition of that property tax rate. This bill, for the
2015-16 fiscal year and each fiscal year thereafter, except to the
extent an oversight board denies a request, would prohibit any
revenues derived from the imposition of that property tax rate from
being allocated to a Redevelopment Property Tax Trust Fund and would,
instead, require these revenues to be allocated to, and when
collected to be paid into, the fund of the city, county, city and
county, or special district whose voters approved the tax. The bill
would require all allocations of revenues derived from the imposition
of that property tax rate made by any county auditor-controller
prior to July 1, ____, to be deemed correct, and would prohibit any
city, county, county auditor-controller, successor agency, or
affected taxing entity from being subject to any claim, as specified.
This bill would require, to the extent that revenues derived from
the imposition of a property tax rate, approved by the voters of a
city or county or special district to make payments in support of the
State Water Project and levied in addition to the general property
tax rate, are deposited into a Redevelopment Property Tax Trust Fund,
the county auditor-controller to allocate moneys from each
Redevelopment Property Tax Trust Fund to a city or county or special
district that levies a property tax as so described after certain
other allocations have been made.
(8)
(2) By adding to the duties of local government
officials with respect to the wind down of the dissolved
redevelopment agencies, this bill would impose a state-mandated local
program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Legislature finds and declares
all of the following:
(1) The California Constitution limits property-based tax levies,
with exceptions to these limits only when a local jurisdiction
obtains the approval of its voting electorate to use additional
property-based tax levies for specific purposes approved by the
voting electorate, in accordance with applicable constitutional and
statutory provisions.
(2) With the enactment of Chapter 5 of the 2011-12 First
Extraordinary Session (Assembly Bill 26), the Legislature intended
that, upon dissolution of redevelopment agencies in the State of
California, property taxes that would have been allocated to
redevelopment agencies are no longer deemed tax increment.
(3) It is the intent of the Legislature in enacting this act to do
all of the following:
(A) If a redevelopment agency had previously pledged revenues
derived from the imposition of a property tax rate, approved by the
voters of a city, county, or city and county, or special district to
make payments in support of the State Water Project and levied in
addition to the property tax rate limited by subdivision (a) of
Section 1 of Article XIII A of the California Constitution, to pay a
portion of the debt service due on indebtedness incurred by the
former redevelopment agency on an approved recognized obligation
payment schedule, then the successor agency shall continue to pledge
those revenues, in a commensurate rate going forward. For example, if
revenues derived from a water project property tax rate approved by
the voters of a city, county, city and county, or special district
were pledged to pay up to 25 percent of the annual debt service for
the indebtedness approved in a recognized obligation payment
schedule, the successor agency shall continue to pay up to 25 percent
of the annual debt service on the indebtedness until maturity. Any
and all excess pledged revenues derived from the water project
property tax rate that are not necessary to pay the debt service on
the indebtedness shall be allocated and paid to the city, county,
city and county, or special district whose voters approved the State
Water Project-related property tax rate.
(B) Ensure that the use of revenues derived from the imposition of
a property tax rate approved by the voters of a city, county, city
and county, or special district to make payments in support of the
State Water Project and levied in addition to the property tax rate
limited by subdivision (a) of Section 1 of Article XIII A of the
California Constitution, is consistent with the use approved by the
voters of a city, county, city and county, or special district once
revenues from such property tax rates are not needed to pay approved
indebtedness of a former redevelopment agency.
(C) Implement the allocation and distribution of voter-approved,
property-based tax revenues for the State Water Project under the
redevelopment dissolution process in a manner that would have been
consistent with the allocation and distribution of those revenues had
redevelopment agencies not been dissolved, in accordance with
applicable constitutional provisions.
(4) Further, it is the intent of the Legislature that this act not
affect any property tax allocations that occurred prior to July 1,
____.
SEC. 2. Section 34183 of the
Health and Safety Code is amended to read:
34183. (a) Notwithstanding any other law, from February 1, 2012,
to July 1, 2012, and for each fiscal year thereafter, the county
auditor-controller shall, after deducting administrative costs
allowed under Section 34182 and Section 95.3 of the Revenue and
Taxation Code, allocate moneys in each Redevelopment Property Tax
Trust Fund as follows:
(1) Subject to any prior deductions required by subdivision (b),
first, the county auditor-controller shall remit from the
Redevelopment Property Tax Trust Fund to each local agency and school
entity an amount of property tax revenues in an amount equal to that
which would have been received under Section 33401, 33492.140,
33607, 33607.5, 33607.7, or 33676, as those sections read on January
1, 2011, or pursuant to any passthrough agreement between a
redevelopment agency and a taxing entity that was entered into prior
to January 1, 1994, that would be in force during that fiscal year,
had the redevelopment agency existed at that time. The amount of the
payments made pursuant to this paragraph shall be calculated solely
on the basis of passthrough payment obligations, existing prior to
the effective date of this part and continuing as obligations of
successor entities, shall occur no later than May 16, 2012, and no
later than June 1, 2012, and each January 2 and June 1 thereafter.
Notwithstanding subdivision (e) of Section 33670, that portion of the
taxes in excess of the amount identified in subdivision (a) of
Section 33670, which are attributable to a tax rate levied by a
taxing entity for the purpose of producing revenues in an amount
sufficient to make annual repayments of the principal of, and the
interest on, any bonded indebtedness for the acquisition or
improvement of real property shall be allocated to, and when
collected shall be paid into, the fund of that taxing entity. The
amount of passthrough payments computed pursuant to this section,
including any passthrough agreements, shall be computed as though the
requirement to set aside funds for the Low and Moderate Income
Housing Fund was still in effect.
(2) Second, on June 1, 2012, and each January 2 and June 1
thereafter, to each successor agency for payments listed in its
Recognized Obligation Payment Schedule for the six-month fiscal
period beginning January 1, 2012, and July 1, 2012, and each January
2 and June 1 thereafter, in the following order of priority:
(A) Debt service payments scheduled to be made for tax allocation
bonds.
(B) Payments scheduled to be made on revenue bonds, but only to
the extent the revenues pledged for them are insufficient to make the
payments and only if the agency's tax increment revenues were also
pledged for the repayment of the bonds.
(C) Payments scheduled for other debts and obligations listed in
the Recognized Obligation Payment Schedule that are required to be
paid from former tax increment revenue.
(3) Third, on June 1, 2012, and each January 2 and June 1
thereafter, to each successor agency for the administrative cost
allowance, as defined in Section 34171, for administrative costs set
forth in an approved administrative budget for those payments
required to be paid from former tax increment revenues.
(4) (A) Fourth, on January 2, 2016, and each January 2 and June 1
thereafter, to a city or county or special district that levies a
property tax rate, approved by the voters of a city or county or
special district to make payments in support of the State Water
Project and levied in addition to the property tax rate limited by
subdivision (a) of Section 1 of Article XIII A of the California
Constitution, an amount of property tax revenues equal to the amount
of revenues derived from the imposition of that tax rate that were
allocated to the Redevelopment Property Tax Trust Fund for that
fiscal period.
(B) This paragraph shall not apply to the extent that revenues
derived from the imposition of a property tax rate described in
subparagraph (A) are not deposited into a Redevelopment Property Tax
Trust Fund as provided by subdivision (f).
(4) Fourth,
(5) Fifth, on June 1, 2012, and
each January 2 and June 1 thereafter, any moneys remaining in the
Redevelopment Property Tax Trust Fund after the payments and
transfers authorized by paragraphs (1) to (3)
(4) , inclusive, shall be distributed to local agencies and
school entities in accordance with Section 34188.
(b) If the successor agency reports, no later than April 1, 2012,
and May 1, 2012, and each December 1 and May 1 thereafter, to the
county auditor-controller that the total amount available to the
successor agency from the Redevelopment Property Tax Trust Fund
allocation to that successor agency's Redevelopment Obligation
Retirement Fund, from other funds transferred from each redevelopment
agency, and from funds that have or will become available through
asset sales and all redevelopment operations, are insufficient to
fund the payments required by paragraphs (1) to (3), inclusive, of
subdivision (a) in the next six-month fiscal period, the county
auditor-controller shall notify the Controller and the Department of
Finance no later than 10 days from the date of that notification. The
county auditor-controller shall verify whether the successor agency
will have sufficient funds from which to service debts according to
the Recognized Obligation Payment Schedule and shall report the
findings to the Controller. If the Controller concurs that there are
insufficient funds to pay required debt service, the amount of the
deficiency shall be deducted first from the amount remaining to be
distributed to taxing entities pursuant to paragraph
paragraphs (4) and (5) of subdivision (a)
, and if that amount is exhausted, from amounts available for
distribution for administrative costs in paragraph (3) of
subdivision (a) . If an agency, pursuant to the provisions of
Section 33492.15, 33492.72, 33607.5, 33671.5, 33681.15, or 33688 or
as expressly provided in a passthrough agreement entered into
pursuant to Section 33401, made passthrough payment obligations
subordinate to debt service payments required for enforceable
obligations, funds for servicing bond debt may be deducted from the
amounts for passthrough payments under paragraph (1) of
subdivision (a) , as provided in those sections, but only to
the extent that the amounts remaining to be distributed to taxing
entities pursuant to paragraph paragraphs
(4) and (5) of subdivision (a) and the amounts
available for distribution for administrative costs in paragraph (3)
of subdivision (a) have all been exhausted.
(c) The county treasurer may loan any funds from the county
treasury to the Redevelopment Property Tax Trust Fund of the
successor agency for the purpose of paying an item approved on the
Recognized Obligation Payment Schedule at the request of the
Department of Finance that are necessary to ensure prompt payments of
redevelopment agency debts. An enforceable obligation is created for
repayment of those loans.
(d) The Controller may recover the costs of audit and oversight
required under this part from the Redevelopment Property Tax Trust
Fund by presenting an invoice therefor to the county
auditor-controller who shall set aside sufficient funds for and
disburse the claimed amounts prior to making the next distributions
to the taxing entities pursuant to Section 34188. Subject to the
approval of the Director of Finance, the budget of the Controller may
be augmented to reflect the reimbursement, pursuant to Section 28.00
of the Budget Act.
(e) Within 10 days of each distribution of property tax, the
county auditor-controller shall provide a report to the department
regarding the distribution for each successor agency that includes
information on the total available for allocation, the passthrough
amounts and how they were calculated, the amounts distributed to
successor agencies, and the amounts distributed to taxing entities in
a manner and form specified by the department. This reporting
requirement shall also apply to distributions required under
subdivision (b) of Section 34183.5.
(f) (1) A city or county that levies a property tax rate, approved
by the voters of a city or county or special district to make
payments in support of the State Water Project and levied in addition
to the property tax rate limited by subdivision (a) of Section 1 of
Article XIII A of the California Constitution, may make a request to
an oversight board to prohibit revenues derived from the imposition
of that property tax rate from being deposited into a Redevelopment
Property Tax Trust Fund.
(2) Based on substantial evidence that a former redevelopment
agency made a pledge of revenues that specifically included revenues
derived from the imposition of a property tax rate, approved by the
voters of a city or county or special district to make payments in
support of the State Water Project and levied in addition to the
property tax rate limited by subdivision (a) of Section 1 of Article
XIII A of the California Constitution, an oversight board may deny a
request made pursuant to paragraph (1) in an amount not to exceed the
amount of revenues pledged by the former redevelopment agency.
(3) Notwithstanding any other law, for the 2015-16 fiscal year and
each fiscal year thereafter, except to the extent an oversight board
denies a request as provided by paragraph (2), any revenues derived
from the imposition of a property tax rate, approved by the voters of
a city or county or special district to make payments in support of
the State Water Project and levied in addition to the property tax
rate limited by subdivision (a) of Section 1 of Article XIII A of the
California Constitution, shall not be allocated to a Redevelopment
Property Tax Trust Fund and shall instead be allocated to, and when
collected shall be paid into, the fund of the city or county or
special district whose voters approved the tax.
(4) Notwithstanding any other law, all allocations of revenues
derived from the imposition of a property tax rate, approved by the
voters of a city or county or special district to make payments in
support of the State Water Project and levied in addition to the
property tax rate limited by subdivision (a) of Section 1 of Article
XIII A of the California Constitution, made by any county
auditor-controller prior to July 1, ____, shall be deemed correct and
shall not be affected by this act. A city, county, county
auditor-controller, successor agency, or affected taxing entity shall
not be subject to any claim for money, damages, or reallocated
revenues based on any allocation of such revenues prior to July 1,
2014.
SEC. 3. If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.
SECTION 1. Section 34170.1 is added to the
Health and Safety Code, to read:
34170.1. Any action by the department carrying out the department'
s obligations under this part and Part 1.8 (commencing with Section
34161) constitutes a department action for the preparation,
development, or administration of the state budget pursuant to
Section 11357 of the Government Code, and is exempt from Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code. This section applies retroactively to any
action by the department described in this section that occurred on
or after June 28, 2011.
SEC. 2. Section 34171 of the Health and Safety
Code is amended to read:
34171. The following terms shall have the following meanings:
(a) "Administrative budget" means the budget for administrative
costs of the successor agencies as provided in Section 34177.
(b) (1) "Administrative cost allowance" means the maximum amount
of administrative costs that may be paid by a successor agency from
the Redevelopment Property Tax Trust Fund in a fiscal year.
(2) The administrative cost allowance shall be 5 percent of the
property tax allocated to the successor agency on the Recognized
Obligation Payment Schedule covering the period January 1, 2012,
through June 30, 2012. The administrative cost allowance shall be up
to 3 percent of the property tax allocated to the Redevelopment
Obligation Retirement Fund for each fiscal year thereafter ending on
June 30, 2016. However, the administrative cost allowance shall not
be less than two hundred fifty thousand dollars ($250,000) in any
fiscal year, unless this amount is reduced by the oversight board or
by agreement with the successor agency.
(3) Commencing July 1, 2016, and for each fiscal year thereafter,
the administrative cost allowance shall be up to 3 percent of the
actual property tax distributed to the successor agency by the county
auditor-controller in the preceding fiscal year for payment of
approved enforceable obligations, reduced by the successor agency's
administrative cost allowance and loan repayments made to the city,
county, or city and county that created the redevelopment agency that
it succeeded pursuant to subdivision (b) of Section 34191.4 during
the preceding fiscal year. However, the administrative cost allowance
shall not be less than two hundred fifty thousand dollars ($250,000)
in any fiscal year, unless this amount is reduced by the oversight
board or by agreement between the successor agency and the
department.
(4) Notwithstanding paragraph (3), commencing July 1, 2016, a
successor agency's annual administrative costs shall not exceed 50
percent of the total Redevelopment Property Tax Trust Fund
distributed to pay enforceable obligations in the preceding fiscal
year. This limitation applies to administrative costs whether paid
within the administrative cost allowance or not, but does not apply
to administrative costs paid from bond proceeds or grant funds.
(5) The administrative cost allowance shall be approved by the
oversight board and shall be the sole funding source for any legal
expenses related to civil actions, including writ proceedings,
contesting the validity of Part 1.8 or Part 1.85 (commencing with
Section 34170) or challenging acts taken pursuant to these parts.
Employee costs associated with work on specific project
implementation activities, including, but not limited to,
construction inspection, project management, or actual construction,
shall be considered project-specific costs and shall not constitute
administrative costs.
(c) "Designated local authority" shall mean a public entity formed
pursuant to subdivision (d) of Section 34173.
(d) (1) "Enforceable obligation" means any of the following:
(A) Bonds, as defined by Section 33602 and bonds issued pursuant
to Chapter 10.5 (commencing with Section 5850) of Division 6 of Title
1 of the Government Code, including the required debt service,
reserve set-asides, and any other payments required under the
indenture or similar documents governing the issuance of the
outstanding bonds of the former redevelopment agency. A reserve may
be held when required by the bond indenture or when the next property
tax allocation will be insufficient to pay all obligations due under
the provisions of the bond for the next payment due in the following
half of the calendar year.
(B) Loans of moneys borrowed by the redevelopment agency for a
lawful purpose, to the extent they are legally required to be repaid
pursuant to a required repayment schedule or other mandatory loan
terms.
(C) Payments required by the federal government, preexisting
obligations to the state or obligations imposed by state law, other
than passthrough payments that are made by the county
auditor-controller pursuant to Section 34183, or legally enforceable
payments required in connection with the agencies' employees,
including, but not limited to, pension payments, pension obligation
debt service, unemployment payments, or other obligations conferred
through a collective bargaining agreement. Costs incurred to fulfill
collective bargaining agreements for layoffs or terminations of city
employees who performed work directly on behalf of the former
redevelopment agency shall be considered enforceable obligations
payable from property tax funds. The obligations to employees
specified in this subparagraph shall remain enforceable obligations
payable from property tax funds for any employee to whom those
obligations apply if that employee is transferred to the entity
assuming the housing functions of the former redevelopment agency
pursuant to Section 34176. The successor agency or designated local
authority shall enter into an agreement with the housing entity to
reimburse it for any costs of the employee obligations.
(D) Judgments or settlements entered by a competent court of law
or binding arbitration decisions against the former redevelopment
agency, other than passthrough payments that are made by the county
auditor-controller pursuant to Section 34183. Along with the
successor agency, the oversight board shall have the authority and
standing to appeal any judgment or to set aside any settlement or
arbitration decision.
(E) Any legally binding and enforceable agreement or contract that
is not otherwise void as violating the debt limit or public policy.
However, nothing in this act shall prohibit either the successor
agency, with the approval or at the direction of the oversight board,
or the oversight board itself from terminating any existing
agreements or contracts and providing any necessary and required
compensation or remediation for such termination. Titles of or
headings used on or in a document shall not be relevant in
determining the existence of an enforceable obligation.
(F) Contracts or agreements necessary for the administration or
operation of the successor agency, in accordance with this part,
including, but not limited to, agreements concerning litigation
expenses related to assets or obligations, settlements and judgments,
and the costs of maintaining assets prior to disposition, and
agreements to purchase or rent office space, equipment and supplies,
and pay-related expenses pursuant to Section 33127 and for carrying
insurance pursuant to Section 33134. Any legal expenses related to
civil actions, including writ proceedings, contesting the validity of
Part 1.8 (commencing with Section 34161) or Part 1.85 (commencing
with Section 34170) or challenging acts taken pursuant to these parts
shall only be payable out of the administrative cost allowance.
(G) Amounts borrowed from, or payments owing to, the Low and
Moderate Income Housing Fund of a redevelopment agency, which had
been deferred as of the effective date of the act adding this part;
provided, however, that the repayment schedule is approved by the
oversight board. Repayments shall be transferred to the Low and
Moderate Income Housing Asset Fund established pursuant to
subdivision (d) of Section 34176 as a housing asset and shall be used
in a manner consistent with the affordable housing requirements of
the Community Redevelopment Law (Part 1 (commencing with Section
33000)). Enforceable obligations pursuant to this subparagraph
include only amounts borrowed from, or payments owing to, the Low and
Moderate Income Housing Fund of a redevelopment agency pursuant to
subdivision (k) of Section 33334.2, subdivision (g) of Section
33334.6, subdivision (b) of Section 33681.7, subdivision (b) of
Section 33681.9, subdivision (b) of Section 33681.12, subdivision (b)
of Section 33685, subdivision (c) of Section 33690, or subdivision
(c) of Section 33690.5, which had been deferred as of the effective
date of the act adding this part and were approved by the department
pursuant to paragraph (2) of subdivision (a) of section 34176. This
definition applies retroactively to all enforceable obligations
recognized under this subparagraph on or after June 28, 2011.
(H) Amounts derived from a property tax rate approved by the
voters of a city, county, city and county, or special district to
make payments in support of capital projects and programs related to
the State Water Project, and levied in addition to the property tax
rate limited by subdivision (a) of Section 1 of Article XIII A of the
California Constitution, consistent with the use approved by the
voters of a city, county, city and county, or special district.
(2) For purposes of this part, "enforceable obligation" does not
include any agreements, contracts, or arrangements between the city,
county, or city and county that created the redevelopment agency and
the former redevelopment agency. However, written agreements entered
into (A) at the time of
issuance, but in no event later than December 31, 2010, of
indebtedness obligations, and (B) solely for the purpose of securing
or repaying those indebtedness obligations may be deemed enforceable
obligations for purposes of this part. Additionally, written
agreements entered into (A) at the time of issuance, but in no event
later than June 27, 2011, of indebtedness obligations for the
refunding or refinancing of indebtedness obligations that existed
prior to January 1, 2011, and (B) solely for the purpose of securing
or repaying those indebtedness obligations may be deemed enforceable
obligations for purposes of this part. Notwithstanding this
paragraph, loan agreements entered into between the redevelopment
agency and the city, county, or city and county that created it,
within two years of the date of creation of the redevelopment agency,
may be deemed to be enforceable obligations.
(3) Contracts or agreements between the former redevelopment
agency and other public agencies, to perform services or provide
funding for governmental or private services or capital projects
outside of redevelopment project areas that do not provide benefit to
the redevelopment project and thus were not properly authorized
under Part 1 (commencing with Section 33000) shall be deemed void on
the effective date of this part; provided, however, that such
contracts or agreements for the provision of housing properly
authorized under Part 1 (commencing with Section 33000) shall not be
deemed void.
(e) "Indebtedness obligations" means bonds, notes, certificates of
participation, or other evidence of indebtedness, issued or
delivered by the redevelopment agency, or by a joint exercise of
powers authority created by the redevelopment agency, to third-party
investors or bondholders to finance or refinance redevelopment
projects undertaken by the redevelopment agency in compliance with
the Community Redevelopment Law (Part 1 (commencing with Section
33000)).
(f) "Oversight board" shall mean each entity established pursuant
to Section 34179.
(g) "Recognized obligation" means an obligation listed in the
Recognized Obligation Payment Schedule.
(h) "Recognized Obligation Payment Schedule" means the document
setting forth the minimum payment amounts and due dates of payments
required by enforceable obligations for each six-month fiscal period
until June 30, 2016, as provided in subdivision (m) of Section 34177.
On and after July 1, 2016, "Recognized Obligation Payment Schedule"
means the document setting forth the minimum payment amounts and due
dates of payments required by enforceable obligations for each fiscal
year as provided in subdivision (o) of Section 34177.
(i) "School entity" means any entity defined as such in
subdivision (f) of Section 95 of the Revenue and Taxation Code.
(j) "Successor agency" means the successor entity to the former
redevelopment agency as described in Section 34173.
(k) "Taxing entities" means cities, counties, a city and county,
special districts, and school entities, as defined in subdivision (f)
of Section 95 of the Revenue and Taxation Code, that receive
passthrough payments and distributions of property taxes pursuant to
the provisions of this part.
(l) "Property taxes" include all property tax revenues, including
those from unitary and supplemental and roll corrections applicable
to tax increment.
(m) "Department" means the Department of Finance unless the
context clearly refers to another state agency.
(n) "Sponsoring entity" means the city, county, or city and
county, or other entity that authorized the creation of each
redevelopment agency.
(o) "Final judicial determination" means a final judicial
determination made by any state court that is not appealed, or by a
court of appellate jurisdiction that is not further appealed, in an
action by any party.
(p) From July 1, 2014, to July 1, 2018, inclusive, "housing entity
administrative cost allowance" means an amount of up to 1 percent of
the property tax allocated to the Redevelopment Obligation
Retirement Fund on behalf of the successor agency for each applicable
fiscal year, but not less than one hundred fifty thousand dollars
($150,000) per fiscal year.
(1) If a local housing authority assumed the housing functions of
the former redevelopment agency pursuant to paragraph (2) or (3) of
subdivision (b) of Section 34176, then the housing entity
administrative cost allowance shall be listed by the successor agency
on the Recognized Obligation Payment Schedule. Upon approval of the
Recognized Obligation Payment Schedule by the oversight board and the
department, the housing entity administrative cost allowance shall
be remitted by the successor agency on each January 2 and July 1 to
the local housing authority that assumed the housing functions of the
former redevelopment agency pursuant to paragraph (2) or (3) of
subdivision (b) of Section 34176.
(2) If there are insufficient moneys in the Redevelopment
Obligations Retirement Fund in a given fiscal year to make the
payment authorized by this subdivision, the unfunded amount may be
listed on each subsequent Recognized Obligation Payment Schedule
until it has been paid in full. In these cases the five-year time
limit on the payments shall not apply.
SEC. 3. Section 34177 of the Health and Safety
Code is amended to read:
34177. Successor agencies are required to do all of the
following:
(a) Continue to make payments due for enforceable obligations.
(1) On and after February 1, 2012, and until a Recognized
Obligation Payment Schedule becomes operative, only payments required
pursuant to an enforceable obligations payment schedule shall be
made. The initial enforceable obligation payment schedule shall be
the last schedule adopted by the redevelopment agency under Section
34169. However, payments associated with obligations excluded from
the definition of enforceable obligations by paragraph (2) of
subdivision (d) of Section 34171 shall be excluded from the
enforceable obligations payment schedule and be removed from the last
schedule adopted by the redevelopment agency under Section 34169
prior to the successor agency adopting it as its enforceable
obligations payment schedule pursuant to this subdivision. The
enforceable obligation payment schedule may be amended by the
successor agency at any public meeting and shall be subject to the
approval of the oversight board as soon as the board has sufficient
members to form a quorum. In recognition of the fact that the timing
of the California Supreme Court's ruling in the case California
Redevelopment Association v. Matosantos (2011) 53 Cal.4th 231 delayed
the preparation by successor agencies and the approval by oversight
boards of the January 1, 2012, through June 30, 2012, Recognized
Obligation Payment Schedule, a successor agency may amend the
Enforceable Obligation Payment Schedule to authorize the continued
payment of enforceable obligations until the time that the January 1,
2012, through June 30, 2012, Recognized Obligation Payment Schedule
has been approved by the oversight board and by the department. The
successor agency may utilize reasonable estimates and projections to
support payment amounts for enforceable obligations if the successor
agency submits appropriate supporting documentation of the basis for
the estimate or projection to the Department of Finance and the
auditor-controller.
(2) The department, the county auditor-controller, and the
Controller shall each have the authority to require any documents
associated with the enforceable obligations to be provided to them in
a manner of their choosing. Any taxing entity, the department, and
the Controller shall each have standing to file a judicial action to
prevent a violation under this part and to obtain injunctive or other
appropriate relief.
(3) Commencing on the date the Recognized Obligation Payment
Schedule is valid pursuant to subdivision (l), only those payments
listed in the Recognized Obligation Payment Schedule may be made by
the successor agency from the funds specified in the Recognized
Obligation Payment Schedule. In addition, after it becomes valid, the
Recognized Obligation Payment Schedule shall supersede the Statement
of Indebtedness, which shall no longer be prepared nor have any
effect under the Community Redevelopment Law (Part 1 (commencing with
Section 33000)).
(4) Nothing in the act adding this part is to be construed as
preventing a successor agency, with the prior approval of the
oversight board, as described in Section 34179, from making payments
for enforceable obligations from sources other than those listed in
the Recognized Obligation Payment Schedule.
(5) From February 1, 2012, to July 1, 2012, a successor agency
shall have no authority and is hereby prohibited from accelerating
payment or making any lump-sum payments that are intended to prepay
loans unless such accelerated repayments were required prior to the
effective date of this part.
(b) Maintain reserves in the amount required by indentures, trust
indentures, or similar documents governing the issuance of
outstanding redevelopment agency bonds.
(c) Perform obligations required pursuant to any enforceable
obligation.
(d) Remit unencumbered balances of redevelopment agency funds to
the county auditor-controller for distribution to the taxing
entities, including, but not limited to, the unencumbered balance of
the Low and Moderate Income Housing Fund of a former redevelopment
agency. In making the distribution, the county auditor-controller
shall utilize the same methodology for allocation and distribution of
property tax revenues provided in Section 34188.
(e) Dispose of assets and properties of the former redevelopment
agency as directed by the oversight board; provided, however, that
the oversight board may instead direct the successor agency to
transfer ownership of certain assets pursuant to subdivision (a) of
Section 34181. The disposal is to be done expeditiously and in a
manner aimed at maximizing value. Proceeds from asset sales and
related funds that are no longer needed for approved development
projects or to otherwise wind down the affairs of the agency, each as
determined by the oversight board, shall be transferred to the
county auditor-controller for distribution as property tax proceeds
under Section 34188. The requirements of this subdivision shall not
apply to a successor agency that has been issued a finding of
completion by the department pursuant to Section 34179.7.
(f) Enforce all former redevelopment agency rights for the benefit
of the taxing entities, including, but not limited to, continuing to
collect loans, rents, and other revenues that were due to the
redevelopment agency.
(g) Effectuate transfer of housing functions and assets to the
appropriate entity designated pursuant to Section 34176.
(h) Expeditiously wind down the affairs of the redevelopment
agency pursuant to the provisions of this part and in accordance with
the direction of the oversight board.
(i) Continue to oversee development of properties until the
contracted work has been completed or the contractual obligations of
the former redevelopment agency can be transferred to other parties.
Bond proceeds shall be used for the purposes for which bonds were
sold unless the purposes can no longer be achieved, in which case,
the proceeds may be used to defease the bonds.
(j) Prepare a proposed administrative budget and submit it to the
oversight board for its approval. The proposed administrative budget
shall include all of the following:
(1) Estimated amounts for successor agency administrative costs
for the upcoming six-month fiscal period.
(2) Proposed sources of payment for the costs identified in
paragraph (1).
(3) Proposals for arrangements for administrative and operations
services provided by a city, county, city and county, or other
entity.
(k) Provide administrative cost estimates, from its approved
administrative budget that are to be paid from property tax revenues
deposited in the Redevelopment Property Tax Trust Fund, to the county
auditor-controller for each six-month fiscal period.
(l) (1) Before each fiscal period set forth in subdivision (m) or
(o), as applicable, prepare a Recognized Obligation Payment Schedule
in accordance with the requirements of this paragraph. For each
recognized obligation, the Recognized Obligation Payment Schedule
shall identify one or more of the following sources of payment:
(A) Low and Moderate Income Housing Fund.
(B) Bond proceeds.
(C) Reserve balances.
(D) Administrative cost allowance.
(E) The Redevelopment Property Tax Trust Fund, but only to the
extent no other funding source is available or when payment from
property tax revenues is required by an enforceable obligation or by
the provisions of this part.
(F) Other revenue sources, including rents, concessions, asset
sale proceeds, interest earnings, and any other revenues derived from
the former redevelopment agency, as approved by the oversight board
in accordance with this part.
(2) A Recognized Obligation Payment Schedule shall not be deemed
valid unless all of the following conditions have been met:
(A) A Recognized Obligation Payment Schedule is prepared by the
successor agency for the enforceable obligations of the former
redevelopment agency. The initial schedule shall project the dates
and amounts of scheduled payments for each enforceable obligation for
the remainder of the time period during which the redevelopment
agency would have been authorized to obligate property tax increment
had the a redevelopment agency not been dissolved.
(B) The Recognized Obligation Payment Schedule is submitted to and
duly approved by the oversight board. The successor agency shall
submit a copy of the Recognized Obligation Payment Schedule to the
county administrative officer, the county auditor-controller, and the
department at the same time that the successor agency submits the
Recognized Obligation Payment Schedule to the oversight board for
approval.
(C) A copy of the approved Recognized Obligation Payment Schedule
is submitted to the county auditor-controller, the Controller's
office, and the Department of Finance, and is posted on the successor
agency's Internet Web site.
(3) The Recognized Obligation Payment Schedule shall be forward
looking to the next six months or one year pursuant to subdivision
(m) or (o), as applicable. The first Recognized Obligation Payment
Schedule shall be submitted to the Controller's office and the
department by April 15, 2012, for the period of January 1, 2012, to
June 30, 2012, inclusive. This Recognized Obligation Payment Schedule
shall include all payments made by the former redevelopment agency
between January 1, 2012, through January 31, 2012, and shall include
all payments proposed to be made by the successor agency from
February 1, 2012, through June 30, 2012. Former redevelopment agency
enforceable obligation payments due, and reasonable or necessary
administrative costs due or incurred, prior to January 1, 2012, shall
be made from property tax revenues received in the spring of 2011
property tax distribution, and from other revenues and balances
transferred to the successor agency.
(m) Until December 31, 2015, the Recognized Obligation Payment
Schedule for the period of January 1, 2013, to June 30, 2013, shall
be submitted by the successor agency, after approval by the oversight
board, no later than September 1, 2012. Commencing with the
Recognized Obligation Payment Schedule covering the period July 1,
2013, through December 31, 2013, successor agencies shall submit an
oversight board-approved Recognized Obligation Payment Schedule to
the department and to the county auditor-controller no fewer than 90
days before the date of property tax distribution. The department
shall make its determination of the enforceable obligations and the
amounts and funding sources of the enforceable obligations no later
than 45 days after the Recognized Obligation Payment Schedule is
submitted. Within five business days of the department's
determination, a successor agency may request additional review by
the department and an opportunity to meet and confer on disputed
items, except for those items which are the subject of litigation
disputing the department's previous or related determination. The
meet and confer period may vary; an untimely submittal of a
Recognized Obligation Payment Schedule may result in a meet and
confer period of less than 30 days. The department shall notify the
successor agency and the county auditor-controllers as to the outcome
of its review at least 15 days before the date of property tax
distribution.
(1) The successor agency shall submit a copy of the Recognized
Obligation Payment Schedule to the department electronically, and the
successor agency shall complete the Recognized Obligation Payment
Schedule in the manner provided for by the department. A successor
agency shall be in noncompliance with this paragraph if it only
submits to the department an electronic message or a letter stating
that the oversight board has approved a Recognized Obligation Payment
Schedule.
(2) If a successor agency does not submit a Recognized Obligation
Payment Schedule by the deadlines provided in this subdivision, the
city, county, or city and county that created the redevelopment
agency, if it is acting as the successor agency, shall be subject to
a civil penalty equal to ten thousand dollars ($10,000) per day for
every day the schedule is not submitted to the department. The civil
penalty shall be paid to the county auditor-controller for allocation
to the taxing entities under Section 34183. If a successor agency
fails to submit a Recognized Obligation Payment Schedule by the
deadline, any creditor of the successor agency or the Department of
Finance or any affected taxing entity shall have standing to and may
request a writ of mandate to require the successor agency to
immediately perform this duty. Those actions may be filed only in the
County of Sacramento and shall have priority over other civil
matters. Additionally, if an agency does not submit a Recognized
Obligation Payment Schedule within 10 days of the deadline, the
maximum administrative cost allowance for that period shall be
reduced by 25 percent.
(3) If a successor agency fails to submit to the department an
oversight board-approved Recognized Obligation Payment Schedule that
complies with all requirements of this subdivision within five
business days of the date upon which the Recognized Obligation
Payment Schedule is to be used to determine the amount of property
tax allocations, the department may determine if any amount should be
withheld by the county auditor-controller for payments for
enforceable obligations from distribution to taxing entities, pending
approval of a Recognized Obligation Payment Schedule. The county
auditor-controller shall distribute the portion of any of the sums
withheld pursuant to this paragraph to the affected taxing entities
in accordance with paragraph (4) of subdivision (a) of Section 34183
upon notice by the department that a portion of the withheld balances
are in excess of the amount of enforceable obligations. The county
auditor-controller shall distribute withheld funds to the successor
agency only in accordance with a Recognized Obligation Payment
Schedule approved by the department. County auditor-controllers shall
lack the authority to withhold any other amounts from the
allocations provided for under Section 34183 or 34188 unless required
by a court order.
(4) (A) The Recognized Obligation Payment Schedule payments
required pursuant to this subdivision may be scheduled beyond the
existing Recognized Obligation Payment Schedule cycle upon a showing
that a lender requires cash on hand beyond the Recognized Obligation
Payment Schedule cycle.
(B) When a payment is shown to be due during the Recognized
Obligation Payment Schedule period, but an invoice or other billing
document has not yet been received, the successor agency may utilize
reasonable estimates and projections to support payment amounts for
enforceable obligations if the successor agency submits appropriate
supporting documentation of the basis for the estimate or projection
to the department and the auditor-controller.
(C) A Recognized Obligation Payment Schedule may also include
appropriation of moneys from bonds subject to passage during the
Recognized Obligation Payment Schedule cycle when an enforceable
obligation requires the agency to issue the bonds and use the
proceeds to pay for project expenditures.
(n) Cause a postaudit of the financial transactions and records of
the successor agency to be made at least annually by a certified
public accountant.
(o) On and after January 1, 2016, commencing with the Recognized
Obligation Payment Schedule covering the period from July 1, 2016, to
June 30, 2017, inclusive, and for each July 1 to June 30, inclusive,
thereafter, a successor agency shall submit an oversight
board-approved Recognized Obligation Payment Schedule to the
department and to the county auditor-controller no later than
February 1, 2016, and each February 1 thereafter. The department
shall make its determination of the enforceable obligations and the
amounts and funding sources of the enforceable obligations no later
than April 15, 2016, and each April 15 thereafter. Within five
business days of the department's determination, a successor agency
may request additional review by the department and an opportunity to
meet and confer on disputed items, except for those items which are
the subject of litigation disputing the department's previous or
related determination. An untimely submittal of a Recognized
Obligation Payment Schedule may result in a meet and confer period of
less than 30 days. The department shall notify the successor agency
and the county auditor-controller as to the outcome of its review at
least 15 days before the date of the first property tax distribution
for that period.
(1) The successor agency shall submit a copy of the Recognized
Obligation Payment Schedule to the department in the manner provided
for by the department.
(2) If a successor agency does not submit a Recognized Obligation
Payment Schedule by the deadlines provided in this subdivision, the
city, county, or city and county that created the redevelopment
agency, if acting as the successor agency, shall be subject to a
civil penalty equal to ten thousand dollars ($10,000) per day for
every day the schedule is not submitted to the department. The civil
penalty shall be paid to the county auditor-controller for allocation
to the taxing entities under Section 34183. If a successor agency
fails to submit a Recognized Obligation Payment Schedule by the
deadline, any creditor of the successor agency or the department or
any affected taxing entity shall have standing to, and may request a
writ of mandate to, require the successor agency to immediately
perform this duty. Those actions may be filed only in the County of
Sacramento and shall have priority over other civil matters.
Additionally, if an agency does not submit a Recognized Obligation
Payment Schedule within 10 days of the
deadline, the maximum administrative cost for that
period shall be reduced by 25 percent.
(3) If a successor agency fails to submit to the department an
oversight board-approved Recognized Obligation Payment Schedule that
complies with all requirements of this subdivision within five
business days of the date upon which the Recognized Obligation
Payment Schedule is to be used to determine the amount of property
tax allocations, the department may determine if any amount should be
withheld by the county auditor-controller for payments for
enforceable obligations from distribution to taxing entities, pending
approval of a Recognized Obligation Payment Schedule. The county
auditor-controller shall distribute the portion of any of the sums
withheld pursuant to this paragraph to the affected taxing entities
in accordance with paragraph (4) of subdivision (a) of Section 34183
upon notice by the department that a portion of the withheld balances
are in excess of the amount of enforceable obligations. The county
auditor-controller shall distribute withheld funds to the successor
agency only in accordance with a Recognized Obligation Payment
Schedule approved by the department. County auditor-controllers do
not have the authority to withhold any other amounts from the
allocations provided for under Section 34183 or 34188 except as
required by a court order.
(4) (A) The Recognized Obligation Payment Schedule payments
required pursuant to this subdivision may be scheduled beyond the
existing Recognized Obligation Payment Schedule cycle upon a showing
that a lender requires cash on hand beyond the Recognized Obligation
Payment Schedule cycle.
(B) When a payment is shown to be due during the Recognized
Obligation Payment Schedule period, but an invoice or other billing
document has not yet been received, the successor agency may utilize
reasonable estimates and projections to support payment amounts for
enforceable obligations if the successor agency submits appropriate
supporting documentation of the basis for the estimate or projection
to the department and the county auditor-controller.
(C) A Recognized Obligation Payment Schedule may also include a
request to use proceeds from bonds expected to be issued during the
Recognized Obligation Payment Schedule cycle when an enforceable
obligation requires the agency to issue the bonds and use the
proceeds to pay for project expenditures.
(5) Once per Recognized Obligation Payment Schedule period, and no
later than October 1, a successor agency may submit one amendment to
the Recognized Obligation Payment Schedule approved by the
department pursuant to this subdivision, if the oversight board makes
a finding that a revision is necessary for the payment of approved
enforceable obligations during the second one-half of the Recognized
Obligation Payment Schedule period, which shall be defined as January
1 to June 30, inclusive. A successor agency may only amend the
amount requested for payment of approved enforceable obligations. The
revised Recognized Obligation Payment Schedule shall be approved by
the oversight board and submitted to the department by electronic
means in a manner of the department's choosing. The department shall
notify the successor agency and the county auditor-controller as to
the outcome of the department's review at least 15 days before the
date of the property tax distribution.
SEC. 4. Section 34191.6 is added to the Health
and Safety Code, to read:
34191.6. (a) Beginning August 1, 2015, successor agencies may
submit a Last and Final Recognized Obligation Payment Schedule for
approval by the oversight board and the department if all of the
following conditions are met:
(1) The remaining debt of a successor agency is limited to
administrative costs and payments pursuant to enforceable obligations
with defined payment schedules including, but not limited to, debt
service, loan agreements, and contracts.
(2) All remaining obligations have been previously listed on a
Recognized Obligation Payment Schedule and approved for payment by
the department pursuant to subdivision (m) or (o) of Section 34177.
(3) The successor agency is not a party to outstanding or
unresolved litigation.
(b) A successor agency that meets the conditions in subdivision
(a) may submit a Last and Final Recognized Obligation Payment
Schedule to its oversight board for approval at any time. The
successor agency may then submit the oversight board-approved Last
and Final Recognized Obligation Payment Schedule to the department
and only in a manner provided by the department. The Last and Final
Recognized Obligation Payment Schedule shall not be effective until
reviewed and approved by the department as provided for in
subdivision (c). The successor agency shall also submit a copy of the
oversight board-approved Last and Final Recognized Obligation
Payment Schedule to the county administrative officer, the county
auditor-controller, and post it to the successor agency's Internet
Web site at the same time that the successor agency submits the Last
and Final Recognized Obligation Payment Schedule to the department.
(1) The Last and Final Recognized Obligation Payment Schedule
shall list the remaining enforceable obligations of the successor
agency in the following order:
(A) Enforceable obligations to be funded from the Redevelopment
Property Tax Trust Fund.
(B) Enforceable obligations to be funded from bond proceeds or
enforceable obligations required to be funded from other legally or
contractually dedicated or restricted funding sources.
(C) Loans or deferrals authorized for repayment pursuant to
subparagraph (G) of paragraph (1) of subdivision (d) of Section 34171
or Section 34191.4.
(2) The Last and Final Recognized Obligation Payment Schedule
shall include the total outstanding obligation and a schedule of
remaining payments for each enforceable obligation listed pursuant to
subparagraphs (A) and (B) of paragraph (1), and the total
outstanding obligation and interest rate, not to exceed 2 percent,
for loans or deferrals listed pursuant to subparagraph (C) of
paragraph (1).
(c) The department shall have 100 days to review the Last and
Final Recognized Obligation Payment Schedule submitted pursuant to
subdivision (b). The department may make any amendments or changes to
the Last and Final Recognized Obligation Payment Schedule, provided
the amendments or changes are agreed to by the successor agency in
writing. If the successor agency and the department cannot come to an
agreement on the proposed amendments or changes, the department
shall issue a letter denying the Last and Final Recognized Obligation
Payment Schedule. All Last and Final Recognized Obligation Payment
Schedules approved by the Department shall become effective on the
first day of the subsequent Redevelopment Property Tax Trust Fund
distribution period.
(1) Upon approval by the department, the Last and Final Recognized
Obligation Payment Schedule shall establish the maximum amount of
Redevelopment Property Tax Trust Funds to be distributed to the
successor agency for each remaining fiscal year until all obligations
have been fully paid.
(2) Successor agencies may submit no more than two requests to the
department to amend the approved Last and Final Recognized
Obligation Payment Schedule. Requests shall first be approved by the
oversight board and then submitted to the department for review. A
request shall not be effective until reviewed and approved by the
department. The request shall be provided to the department by
electronic means and in a manner of the department's choosing. The
department shall have 100 days from the date received to approve or
deny the successor agency's request.
(3) Any revenues, interest, and earnings of the successor agency
not authorized for use pursuant to the approved Last and Final
Recognized Obligation Payment Schedule shall be remitted to the
county auditor-controller for distribution to the affected taxing
entities. Notwithstanding Sections 34191.3 and 34191.5, proceeds from
the disposition of real property subsequent to the approval of the
Last and Final Recognized Obligation Payment Schedule that are not
necessary for the payment of an enforceable obligation shall be
remitted to the county auditor-controller for distribution to the
affected taxing entities.
(4) A successor agency shall not expend more than the amount
approved for each enforceable obligation listed and approved on the
Last and Final Recognized Obligation Payment Schedule.
(5) If a successor agency receives insufficient funds to pay for
the enforceable obligations approved in the Last and Final Recognized
Obligation Payment Schedule in any given period, the city, county,
or city and county that created the redevelopment agency may loan or
grant funds to a successor agency for that period at the successor
agency's request for the sole purpose of paying for approved items on
the Last and Final Recognized Obligation Payment Schedule that would
otherwise go unpaid. Additionally, at the request of the department,
the county treasurer may loan any funds from the county treasury to
the Redevelopment Property Tax Trust Fund of the successor agency for
the purpose of paying an item approved on the Last and Final
Recognized Obligation Payment Schedule in order to ensure prompt
payments of successor agency debts. A loan made under this section
shall be repaid from the source of funds approved for payment of the
underlying enforceable obligation in the Last and Final Recognized
Obligation Payment Schedule once sufficient funds become available
from that source.
(6) Notwithstanding paragraph (6) of subdivision (e) of Section
34176 and subparagraph (A) of paragraph (2) of subdivision (b) of
Section 34191.4, commencing on the date the Last and Final Recognized
Obligation Payment Schedule becomes effective:
(A) Loan or deferrals authorized for repayment pursuant to
subparagraph (G) of paragraph (1) of subdivision (d) of Section 34171
or Section 34191.4 and listed and approved on the Last and Final
Recognized Obligation Payment Schedule, shall be recalculated to
accrue annual simple interest not to exceed 2 percent.
(B) The maximum repayment amount of the total principal and
interest on loans and deferrals authorized for repayment pursuant to
subparagraph (G) of paragraph (1) of subdivision (d) of Section 34171
or Section 34191.4 and listed and approved in the Last and Final
Recognized Obligation Payment Schedule shall be 15 percent of the
moneys remaining in the Redevelopment Property Tax Trust Fund after
the allocation of moneys in each six-month period pursuant to Section
34183 prior to the distributions under paragraph (4) of subdivision
(a) of Section 34183.
(7) Commencing on the effective date of the approved Last and
Final Recognized Obligation Payment Schedule, the successor agency
shall not prepare or transmit Recognized Obligation Payment Schedules
pursuant to Section 34177.
(8) Commencing on the effective date of the approved Last and
Final Recognized Obligation Payment Schedule, oversight board
resolutions shall not be submitted to the department pursuant to
subdivision (h) of Section 34179. This paragraph shall not apply to
oversight board resolutions necessary for refunding bonds pursuant to
Section 34177.5, long-range property management plans pursuant to
Section 34191.5, amendments to the Last and Final Recognized
Obligation Payment Schedule under paragraph (2) of subdivision (c),
and the final oversight board resolutions pursuant to Section 34187.
(d) The county auditor-controller shall do the following:
(1) Review the Last and Final Recognized Obligation Payment
Schedule and provide any objection to the inclusion of any items or
amounts to the department.
(2) After the Last and Final Recognized Obligation Payment
Schedule is approved by the department, the county auditor-controller
shall continue to allocate moneys in the Redevelopment Property Tax
Trust Fund pursuant to Section 34183. However, the allocation from
the Redevelopment Property Tax Trust Fund in each fiscal period,
after deducting auditor-controller administrative costs, shall be
according to the following order of priority:
(A) Allocations pursuant to paragraph (1) of subdivision (a) of
Section 34183.
(B) Debt service payments scheduled to be made for tax allocation
bonds that are listed and approved in the Last and Final Recognized
Obligation Payment Schedule.
(C) Payments scheduled to be made on revenue bonds that are listed
and approved in the Last and Final Recognized Obligation Payment
Schedule, but only to the extent the revenues pledged for them are
insufficient to make the payments and only if the agency's tax
increment revenues were also pledged for the repayment of bonds.
(D) Payments scheduled for debts and obligations listed and
approved in the Last and Final Recognized Obligation Payment Schedule
to be paid from the Redevelopment Property Tax Trust Fund pursuant
to subparagraph (A) of paragraph (1) of subdivision (b) and
subdivision (c).
(E) Payments listed and approved pursuant to subparagraph (A) of
paragraph (1) of subdivision (b) and subdivision (c) that were
authorized but unfunded in prior periods.
(F) Repayment in the amount specified in paragraph (6) of
subdivision (c) of loans and deferrals listed and approved on the
Last and Final Recognized Obligation Payment Schedule pursuant to
subparagraph (C) of paragraph (1) of subdivision (b) and subdivision
(c).
(G) Any moneys remaining in the Redevelopment Property Tax Trust
Fund after the payments and transfers authorized by subparagraphs (A)
to (F), inclusive, shall be distributed to taxing entities in
accordance with Section 34188.
(3) If the successor agency reports to the county
auditor-controller that the total available amounts in the
Redevelopment Property Tax Trust Fund will be insufficient to fund
their current or future fiscal year obligations, and if the county
auditor-controller concurs that there are insufficient funds to pay
the required obligations, the county auditor-controller may
distribute funds pursuant to subdivision (b) of Section 34183.
(4) The county auditor-controller shall no longer distribute
property tax to the Redevelopment Property Tax Trust Fund once the
aggregate amount of property tax allocated to the successor agency
equals the total outstanding obligation approved in the Last and
Final Recognized Obligation Payment Schedule.
(e) Successor agencies with a Last and Final Recognized Payment
Schedule approved by the Department of Finance may amend or modify
existing contracts, agreements, or other arrangements identified on
the Last and Final Recognized Obligation Payment Schedule which the
Department of Finance has already determined to be enforceable
obligations, provided:
(1) The outstanding payments owing from the successor agency are
not accelerated or increased in any way.
(2) Any amendment to extend terms shall not include an extension
beyond the last scheduled payment for the enforceable obligations
listed and approved on the Last and Final Recognized Obligation
Payment Schedule.
(3) This subdivision shall not be construed as authorizing
successor agencies to create new or additional enforceable
obligations or otherwise increase, directly or indirectly, the amount
of Redevelopment Property Tax Trust Funds allocated to the successor
agency by the county auditor-controller.
SEC. 5. If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.