AB 712, as introduced, Mullin. Redevelopment: successor agencies: Recognized Obligation Payment Schedule.
The Community Redevelopment Law authorized the establishment of redevelopment agencies in communities to address the effects of blight, as defined. Existing law dissolved redevelopment agencies as of February 1, 2012, and provides for the designation of successor agencies, as defined. Existing law requires successor agencies to wind down the affairs of the dissolved redevelopment agencies. 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, commencing July 1, 2016, revise the timeline for the preparation of the required Recognized Obligation Payment Schedule to provide that the successor agency prepare a schedule for a 12-month 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 during a 12-month fiscal period if the amendment is approved at least 90 days before the date of the next property tax distribution.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 34177 of the Health and Safety Code is
2amended to read:
Successor agencies are required to do all of the
4following:
5(a) Continue to make payments due for enforceable obligations.
6(1) On and after February 1, 2012, and until a Recognized
7Obligation Payment Schedule becomes operative, only payments
8required pursuant to an enforceable obligations payment schedule
9shall be made. The initial enforceable obligation payment schedule
10shall be the last schedule adopted by the redevelopment agency
11under Section 34169. However, payments associated with
12obligations excluded from the definition of enforceable obligations
13by paragraph (2) of subdivision (d) of Section 34171 shall be
14excluded from the enforceable obligations payment schedule and
15be removed from the last schedule adopted by the
redevelopment
16agency under Section 34169 prior to the successor agency adopting
17it as its enforceable obligations payment schedule pursuant to this
18subdivision. The enforceable obligation payment schedule may
19be amended by the successor agency at any public meeting and
20shall be subject to the approval of the oversight board as soon as
21the board has sufficient members to form a quorum. In recognition
22of the fact that the timing of the California Supreme Court’s ruling
23in the case California Redevelopment Association v. Matosantos
24(2011) 53 Cal.4th 231 delayed the preparation by successor
25agencies and the approval by oversight boards of the January 1,
262012, through June 30, 2012, Recognized Obligation Payment
27Schedule, a successor agency may amend the Enforceable
28Obligation Payment Schedule to authorize the continued payment
29of enforceable obligations until the time that the January 1, 2012,
30through June 30, 2012, Recognized Obligation Payment Schedule
31has been approved by the oversight board and by the
Department
32of Finance. The successor agency may utilize reasonable estimates
33and projections to support payment amounts for enforceable
34obligations if the successor agency submits appropriate supporting
35documentation of the basis for the estimate or projection to the
36Department of Finance and the auditor-controller.
37(2) The Department of Finance and the Controller shall each
38have the authority to require any documents associated with the
P3 1enforceable obligations to be provided to them in a manner of their
2choosing. Any taxing entity, the department, and the Controller
3shall each have standing to file a judicial action to prevent a
4violation under this part and to obtain injunctive or other
5appropriate relief.
6(3) Commencing on the date the Recognized Obligation Payment
7Schedule is valid pursuant to subdivision (l), only those payments
8listed in the Recognized Obligation Payment
Schedule may be
9made by the successor agency from the funds specified in the
10Recognized Obligation Payment Schedule. In addition, after it
11becomes valid, the Recognized Obligation Payment Schedule shall
12supersede the Statement of Indebtedness, which shall no longer
13be prepared nor have any effect under the Community
14Redevelopment Law (Part 1 (commencing with Section 33000)).
15(4) Nothing in the act adding this part is to be construed as
16preventing a successor agency, with the prior approval of the
17oversight board, as described in Section 34179, from making
18payments for enforceable obligations from sources other than those
19listed in the Recognized Obligation Payment Schedule.
20(5) From February 1, 2012, to July 1, 2012, a successor agency
21shall have no authority and is hereby prohibited from accelerating
22payment or making any lump-sum payments that are intended to
23prepay loans unless
such accelerated repayments were required
24prior to the effective date of this part.
25(b) Maintain reserves in the amount required by indentures,
26trust indentures, or similar documents governing the issuance of
27outstanding redevelopment agency bonds.
28(c) Perform obligations required pursuant to any enforceable
29obligation.
30(d) Remit unencumbered balances of redevelopment agency
31funds to the county auditor-controller for distribution to the taxing
32entities, including, but not limited to, the unencumbered balance
33of the Low and Moderate Income Housing Fund of a former
34redevelopment agency. In making the distribution, the county
35auditor-controller shall utilize the same methodology for allocation
36and distribution of property tax revenues provided in Section
3734188.
38(e) Dispose of assets and properties of the former redevelopment
39agency as directed by the oversight board; provided, however, that
40the oversight board may instead direct the successor agency to
P4 1transfer ownership of certain assets pursuant to subdivision (a) of
2Section 34181. The disposal is to be done expeditiously and in a
3manner aimed at maximizing value. Proceeds from asset sales and
4related funds that are no longer needed for approved development
5projects or to otherwise wind down the affairs of the agency, each
6as determined by the oversight board, shall be transferred to the
7county auditor-controller for distribution as property tax proceeds
8under Section 34188. The requirements of this subdivision shall
9not apply to a successor agency that has been issued a finding of
10completion by the Department of Finance pursuant to Section
1134179.7.
12(f) Enforce all former redevelopment agency rights for the
13benefit of the taxing
entities, including, but not limited to,
14continuing to collect loans, rents, and other revenues that were due
15to the redevelopment agency.
16(g) Effectuate transfer of housing functions and assets to the
17appropriate entity designated pursuant to Section 34176.
18(h) Expeditiously wind down the affairs of the redevelopment
19agency pursuant to the provisions of this part and in accordance
20with the direction of the oversight board.
21(i) Continue to oversee development of properties until the
22contracted work has been completed or the contractual obligations
23of the former redevelopment agency can be transferred to other
24parties. Bond proceeds shall be used for the purposes for which
25bonds were sold unless the purposes can no longer be achieved,
26in which case, the proceeds may be used to defease the bonds.
27(j) Prepare a proposed administrative budget and submit it to
28the oversight board for its approval. The proposed administrative
29budget shall include all of the following:
30(1) Estimated amounts for successor agency administrative costs
31for the upcoming six-month fiscal period.
32(2) Proposed sources of payment for the costs identified in
33paragraph (1).
34(3) Proposals for arrangements for administrative and operations
35services provided by a city, county, city and county, or other entity.
36(k) Provide administrative cost estimates, from its approved
37administrative budget that are to be paid from property tax revenues
38deposited in the Redevelopment Property Tax Trust Fund, to the
39county
auditor-controller for each six-month fiscal period.
P5 1(l) (1) Before each six-month fiscal period, prepare a
2Recognized Obligation Payment Schedule in accordance with the
3requirements of this paragraph. For each recognized obligation,
4the Recognized Obligation Payment Schedule shall identify one
5or more of the following sources of payment:
6(A) Low and Moderate Income Housing Fund.
7(B) Bond proceeds.
8(C) Reserve balances.
9(D) Administrative cost allowance.
10(E) The Redevelopment Property Tax Trust Fund, but only to
11the extent no other funding source is available or when payment
12from property tax revenues is
required by an enforceable obligation
13or by the provisions of this part.
14(F) Other revenue sources, including rents, concessions, asset
15sale proceeds, interest earnings, and any other revenues derived
16from the former redevelopment agency, as approved by the
17oversight board in accordance with this part.
18(2) A Recognized Obligation Payment Schedule shall not be
19deemed valid unless all of the following conditions have been met:
20(A) A Recognized Obligation Payment Schedule is prepared
21by the successor agency for the enforceable obligations of the
22former redevelopment agency. The initial schedule shall project
23the dates and amounts of scheduled payments for each enforceable
24obligation for the remainder of the time period during which the
25redevelopment agency would have been authorized to obligate
26property tax increment
had the a redevelopment agency not been
27dissolved.
28(B) The Recognized Obligation Payment Schedule is submitted
29to and duly approved by the oversight board. The successor agency
30shall submit a copy of the Recognized Obligation Payment
31Schedule to the county administrative officer, the county
32auditor-controller, and the Department of Finance at the same time
33that the successor agency submits the Recognized Obligation
34Payment Schedule to the oversight board for approval.
35(C) A copy of the approved Recognized Obligation Payment
36Schedule is submitted to the county auditor-controller, the
37Controller’s office, and the Department of Finance, and is posted
38on the successor agency’s Internet Web site.
39(3) The Recognized Obligation Payment Schedule shall be
40forward looking to the next six months. The first Recognized
P6 1Obligation
Payment Schedule shall be submitted to the Controller’s
2office and the Department of Finance by April 15, 2012, for the
3period of January 1, 2012, to June 30, 2012, inclusive. This
4Recognized Obligation Payment Schedule shall include all
5payments made by the former redevelopment agency between
6January 1, 2012, through January 31, 2012, and shall include all
7payments proposed to be made by the successor agency from
8February 1, 2012, through June 30, 2012. Former redevelopment
9agency enforceable obligation payments due, and reasonable or
10necessary administrative costs due or incurred, prior to January 1,
112012, shall be made from property tax revenues received in the
12spring of 2011 property tax distribution, and from other revenues
13and balances transferred to the successor agency.
14(m) The Recognized Obligation Payment Schedule for the period
15of January 1, 2013, to June 30, 2013, shall be submitted by the
16successor agency, after approval by the
oversight board, no later
17than September 1, 2012. Commencing with the Recognized
18Obligation Payment Schedule covering the period July 1, 2013,
19through December 31, 2013, successor agencies shall submit an
20oversight board-approved Recognized Obligation Payment
21Schedule to the Department of Finance and to the county
22auditor-controller no fewer than 90 days before the date of property
23tax distribution. The Department of Finance shall make its
24determination of the enforceable obligations and the amounts and
25funding sources of the enforceable obligations no later than 45
26days after the Recognized Obligation Payment Schedule is
27submitted. Within five business days of the department’s
28determination, a successor agency may request additional review
29by the department and an opportunity to meet and confer on
30disputed items. The meet and confer period may vary; an untimely
31submittal of a Recognized Obligation Payment Schedule may result
32in a meet and confer period of less than 30 days. The department
33shall notify the
successor agency and the county auditor-controllers
34as to the outcome of its review at least 15 days before the date of
35property tax distribution.
36(1) The successor agency shall submit a copy of the Recognized
37Obligation Payment Schedule to the Department of Finance
38electronically, and the successor agency shall complete the
39Recognized Obligation Payment Schedule in the manner provided
40for by the department. A successor agency shall be in
P7 1noncompliance with this paragraph if it only submits to the
2department an electronic message or a letter stating that the
3oversight board has approved a Recognized Obligation Payment
4Schedule.
5(2) If a successor agency does not submit a Recognized
6Obligation Payment Schedule by the deadlines provided in this
7subdivision, the city, county, or city and county that created the
8redevelopment agency shall be subject to a civil penalty equal to
9ten
thousand dollars ($10,000) per day for every day the schedule
10is not submitted to the department. The civil penalty shall be paid
11to the county auditor-controller for allocation to the taxing entities
12under Section 34183. If a successor agency fails to submit a
13Recognized Obligation Payment Schedule by the deadline, any
14creditor of the successor agency or the Department of Finance or
15any affected taxing entity shall have standing to and may request
16a writ of mandate to require the successor agency to immediately
17perform this duty. Those actions may be filed only in the County
18of Sacramento and shall have priority over other civil matters.
19Additionally, if an agency does not submit a Recognized Obligation
20Payment Schedule within 10 days of the deadline, the maximum
21administrative cost allowance for that period shall be reduced by
2225 percent.
23(3) If a successor agency fails to submit to the department an
24oversight board-approved Recognized
Obligation Payment
25Schedule that complies with all requirements of this subdivision
26within five business days of the date upon which the Recognized
27Obligation Payment Schedule is to be used to determine the amount
28of property tax allocations, the department may determine if any
29amount should be withheld by the county auditor-controller for
30payments for enforceable obligations from distribution to taxing
31entities, pending approval of a Recognized Obligation Payment
32Schedule. The county auditor-controller shall distribute the portion
33of any of the sums withheld pursuant to this paragraph to the
34affected taxing entities in accordance with paragraph (4) of
35subdivision (a) of Section 34183 upon notice by the department
36that a portion of the withheld balances are in excess of the amount
37of enforceable obligations. The county auditor-controller shall
38distribute withheld funds to the successor agency only in
39accordance with a Recognized Obligation Payment Schedule
40approved by the department. County
auditor-controllers shall lack
P8 1the authority to withhold any other amounts from the allocations
2provided for under Section 34183 or 34188 unless required by a
3court order.
4(4) (A) The Recognized Obligation Payment Schedule payments
5required pursuant to this subdivision may be scheduled beyond
6the existing Recognized Obligation Payment Schedule cycle upon
7a showing that a lender requires cash on hand beyond the
8Recognized Obligation Payment Schedule cycle.
9(B) When a payment is shown to be due during the Recognized
10Obligation Payment Schedule period, but an invoice or other billing
11document has not yet been received, the successor agency may
12utilize reasonable estimates and projections to support payment
13amounts for enforceable obligations if the successor agency submits
14appropriate supporting documentation of the basis for the estimate
15or projection to the
department and the auditor-controller.
16(C) A Recognized Obligation Payment Schedule may also
17include appropriation of moneys from bonds subject to passage
18during the Recognized Obligation Payment Schedule cycle when
19an enforceable obligation requires the agency to issue the bonds
20and use the proceeds to pay for project expenditures.
21(n) Cause a postaudit of the financial transactions and records
22of the successor agency to be made at least annually by a certified
23public accountant.
24(o) This section shall remain in effect only until July 1, 2016,
25and as of that date is repealed.
Section 34177 is added to the Health and Safety Code,
27to read:
Successor agencies are required to do all of the
29following:
30(a) Continue to make payments due for enforceable obligations.
31(1) On and after February 1, 2012, and until a Recognized
32Obligation Payment Schedule becomes operative, only payments
33required pursuant to an enforceable obligations payment schedule
34shall be made. The initial enforceable obligations payment schedule
35shall be the last schedule adopted by the redevelopment agency
36under Section 34169. However, payments associated with
37obligations excluded from the definition of enforceable obligations
38by paragraph (2) of subdivision (d) of Section 34171 shall be
39excluded from the enforceable obligations payment schedule and
40be removed from the last
schedule adopted by the redevelopment
P9 1agency under Section 34169 prior to the successor agency adopting
2it as its enforceable obligations payment schedule pursuant to this
3subdivision. The enforceable obligations payment schedule may
4be amended by the successor agency at any public meeting and
5shall be subject to the approval of the oversight board as soon as
6the board has sufficient members to form a quorum. In recognition
7of the fact that the timing of the California Supreme Court’s ruling
8in the case California Redevelopment Association v. Matosantos
9(2011) 53 Cal.4th 231 delayed the preparation by successor
10agencies and the approval by oversight boards of the January 1,
112012, through June 30, 2012, Recognized Obligation Payment
12Schedule, a successor agency may amend the Enforceable
13Obligation Payment Schedule to authorize the continued payment
14of enforceable obligations until the time that the January 1, 2012,
15through June 30, 2012, Recognized Obligation Payment Schedule
16has been approved by the
oversight board and by the Department
17of Finance. The successor agency may utilize reasonable estimates
18and projections to support payment amounts for enforceable
19obligations if the successor agency submits appropriate supporting
20documentation of the basis for the estimate or projection to the
21Department of Finance and the auditor-controller.
22(2) The Department of Finance and the Controller shall each
23have the authority to require any documents associated with the
24enforceable obligations to be provided to them in a manner of their
25choosing. Any taxing entity, the department, and the Controller
26shall each have standing to file a judicial action to prevent a
27violation under this part and to obtain injunctive or other
28appropriate relief.
29(3) Commencing on the date the Recognized Obligation Payment
30Schedule is valid pursuant to subdivision (l), only those payments
31listed in the
Recognized Obligation Payment Schedule may be
32made by the successor agency from the funds specified in the
33Recognized Obligation Payment Schedule. In addition, after it
34becomes valid, the Recognized Obligation Payment Schedule shall
35supersede the Statement of Indebtedness, which shall no longer
36be prepared nor have any effect under the Community
37Redevelopment Law (Part 1 (commencing with Section 33000)).
38(4) Nothing in the act adding this part is to be construed as
39preventing a successor agency, with the prior approval of the
40oversight board, as described in Section 34179, from making
P10 1payments for enforceable obligations from sources other than those
2listed in the Recognized Obligation Payment Schedule.
3(5) From February 1, 2012, to July 1, 2012, a successor agency
4shall have no authority and is hereby prohibited from accelerating
5payment or making any lump-sum payments that are
intended to
6prepay loans unless the accelerated repayments were required prior
7to the effective date of this part.
8(b) Maintain reserves in the amount required by indentures,
9trust indentures, or similar documents governing the issuance of
10outstanding redevelopment agency bonds.
11(c) Perform obligations required pursuant to any enforceable
12obligation.
13(d) Remit unencumbered balances of redevelopment agency
14funds to the county auditor-controller for distribution to the taxing
15entities, including, but not limited to, the unencumbered balance
16of the Low and Moderate Income Housing Fund of a former
17redevelopment agency. In making the distribution, the county
18auditor-controller shall utilize the same methodology for allocation
19and distribution of property tax revenues provided in Section
2034188.
21(e) Dispose of assets and properties of the former redevelopment
22agency as directed by the oversight board; provided, however, that
23the oversight board may instead direct the successor agency to
24transfer ownership of certain assets pursuant to subdivision (a) of
25Section 34181. The disposal is to be done expeditiously and in a
26manner aimed at maximizing value. Proceeds from asset sales and
27related funds that are no longer needed for approved development
28projects or to otherwise wind down the affairs of the agency, each
29as determined by the oversight board, shall be transferred to the
30county auditor-controller for distribution as property tax proceeds
31under Section 34188. The requirements of this subdivision shall
32not apply to a successor agency that has been issued a finding of
33completion by the Department of Finance pursuant to Section
3434179.7.
35(f) Enforce all former redevelopment
agency rights for the
36benefit of the taxing entities, including, but not limited to,
37continuing to collect loans, rents, and other revenues that were due
38to the redevelopment agency.
39(g) Effectuate transfer of housing functions and assets to the
40appropriate entity designated pursuant to Section 34176.
P11 1(h) Expeditiously wind down the affairs of the redevelopment
2agency pursuant to the provisions of this part and in accordance
3with the direction of the oversight board.
4(i) Continue to oversee development of properties until the
5contracted work has been completed or the contractual obligations
6of the former redevelopment agency can be transferred to other
7parties. Bond proceeds shall be used for the purposes for which
8bonds were sold unless the purposes can no longer be achieved,
9in which case, the proceeds may be used
to defease the bonds.
10(j) Prepare a proposed administrative budget and submit it to
11the oversight board for its approval. The proposed administrative
12budget shall include all of the following:
13(1) Estimated amounts for successor agency administrative costs
14for the upcoming 12-month fiscal period.
15(2) Proposed sources of payment for the costs identified in
16paragraph (1).
17(3) Proposals for arrangements for administrative and operations
18services provided by a city, county, city and county, or other entity.
19(k) Provide administrative cost estimates, from its approved
20administrative budget that are to be paid from property tax revenues
21deposited in the Redevelopment Property Tax Trust Fund, to
the
22county auditor-controller for each 12-month fiscal period.
23(l) (1) Before each 12-month fiscal period, prepare a
24Recognized Obligation Payment Schedule in accordance with the
25requirements of this paragraph. For each recognized obligation,
26the Recognized Obligation Payment Schedule shall identify one
27or more of the following sources of payment:
28(A) Low and Moderate Income Housing Fund.
29(B) Bond proceeds.
30(C) Reserve balances.
31(D) Administrative cost allowance.
32(E) The Redevelopment Property Tax Trust Fund, but only to
33the extent no other funding source is available or when payment
34from property tax
revenues is required by an enforceable obligation
35or by the provisions of this part.
36(F) Other revenue sources, including rents, concessions, asset
37sale proceeds, interest earnings, and any other revenues derived
38from the former redevelopment agency, as approved by the
39oversight board in accordance with this part.
P12 1(2) A Recognized Obligation Payment Schedule shall not be
2deemed valid unless all of the following conditions have been met:
3(A) A Recognized Obligation Payment Schedule is prepared
4by the successor agency for the enforceable obligations of the
5former redevelopment agency. The initial schedule shall project
6the dates and amounts of scheduled payments for each enforceable
7obligation for the remainder of the time period during which the
8redevelopment agency would have been authorized to obligate
9property tax
increment had the redevelopment agency not been
10dissolved.
11(B) The Recognized Obligation Payment Schedule is submitted
12to and duly approved by the oversight board. The successor agency
13shall submit a copy of the Recognized Obligation Payment
14Schedule to the county administrative officer, the county
15auditor-controller, and the Department of Finance at the same time
16that the successor agency submits the Recognized Obligation
17Payment Schedule to the oversight board for approval.
18(C) A copy of the approved Recognized Obligation Payment
19Schedule is submitted to the county auditor-controller, the
20Controller’s office, and the Department of Finance, and is posted
21on the successor agency’s Internet Web site.
22(3) The Recognized Obligation Payment Schedule shall be
23forward looking to the next 12-month fiscal period, for the
first
2412-month fiscal period commencing after January 1, 2017. The
25first Recognized Obligation Payment Schedule shall be submitted
26to the Controller’s office and the Department of Finance by April
2715, 2012, for the period of January 1, 2012, to June 30, 2012,
28inclusive. This Recognized Obligation Payment Schedule shall
29include all payments made by the former redevelopment agency
30between January 1, 2012, through January 31, 2012, and shall
31include all payments proposed to be made by the successor agency
32from February 1, 2012, through June 30, 2012. Former
33redevelopment agency enforceable obligation payments due, and
34reasonable or necessary administrative costs due or incurred, prior
35to January 1, 2012, shall be made from property tax revenues
36received in the spring of 2011 property tax distribution, and from
37other revenues and balances transferred to the successor agency.
38(4) The Recognized Obligation Payment Schedule may be
39amended by the
oversight board during a 12-month fiscal period
P13 1as long as the amendment is approved at least 90 days before the
2date of the next property tax distribution.
3(m) The Recognized Obligation Payment Schedule for the period
4of January 1, 2013, to June 30, 2013, shall be submitted by the
5successor agency, after approval by the oversight board, no later
6than September 1, 2012. Commencing with the Recognized
7Obligation Payment Schedule covering the period of July 1, 2013,
8through December 31, 2013, successor agencies shall submit an
9oversight board-approved Recognized Obligation Payment
10Schedule to the Department of Finance and to the county
11auditor-controller no fewer than 90 days before the date of property
12tax distribution. The Department of Finance shall make its
13determination of the enforceable obligations and the amounts and
14funding sources of the enforceable obligations no later than 45
15days after the Recognized Obligation Payment Schedule is
16
submitted. Within five business days of the department’s
17determination, a successor agency may request additional review
18by the department and an opportunity to meet and confer on
19disputed items. The meet and confer period may vary; an untimely
20submittal of a Recognized Obligation Payment Schedule may result
21in a meet and confer period of less than 30 days. The department
22shall notify the successor agency and the county auditor-controllers
23as to the outcome of its review at least 15 days before the date of
24property tax distribution.
25(1) The successor agency shall submit a copy of the Recognized
26Obligation Payment Schedule to the Department of Finance
27electronically, and the successor agency shall complete the
28Recognized Obligation Payment Schedule in the manner provided
29for by the department. A successor agency shall be in
30noncompliance with this paragraph if it only submits to the
31department an electronic message or a letter stating that the
32
oversight board has approved a Recognized Obligation Payment
33Schedule.
34(2) If a successor agency does not submit a Recognized
35Obligation Payment Schedule by the deadlines provided in this
36subdivision, the city, county, or city and county that created the
37redevelopment agency shall be subject to a civil penalty equal to
38ten thousand dollars ($10,000) per day for every day the schedule
39is not submitted to the department. The civil penalty shall be paid
40to the county auditor-controller for allocation to the taxing entities
P14 1under Section 34183. If a successor agency fails to submit a
2Recognized Obligation Payment Schedule by the deadline, any
3creditor of the successor agency or the Department of Finance or
4any affected taxing entity shall have standing to and may request
5a writ of mandate to require the successor agency to immediately
6perform this duty. Those actions may be filed only in the County
7of Sacramento and shall have priority over other
civil matters.
8Additionally, if an agency does not submit a Recognized Obligation
9Payment Schedule within 10 days of the deadline, the maximum
10administrative cost allowance for that period shall be reduced by
1125 percent.
12(3) If a successor agency fails to submit to the department an
13oversight board-approved Recognized Obligation Payment
14Schedule that complies with all requirements of this subdivision
15within five business days of the date upon which the Recognized
16Obligation Payment Schedule is to be used to determine the amount
17of property tax allocations, the department may determine if any
18amount should be withheld by the county auditor-controller for
19payments for enforceable obligations from distribution to taxing
20entities, pending approval of a Recognized Obligation Payment
21Schedule. The county auditor-controller shall distribute the portion
22of any of the sums withheld pursuant to this paragraph to the
23affected taxing entities in accordance
with paragraph (4) of
24subdivision (a) of Section 34183 upon notice by the department
25that a portion of the withheld balances are in excess of the amount
26of enforceable obligations. The county auditor-controller shall
27distribute withheld funds to the successor agency only in
28accordance with a Recognized Obligation Payment Schedule
29approved by the department. County auditor-controllers shall lack
30the authority to withhold any other amounts from the allocations
31provided for under Section 34183 or 34188 unless required by a
32court order.
33(4) (A) The Recognized Obligation Payment Schedule payments
34required pursuant to this subdivision may be scheduled beyond
35the existing Recognized Obligation Payment Schedule cycle upon
36a showing that a lender requires cash on hand beyond the
37Recognized Obligation Payment Schedule cycle.
38(B) When a payment is shown to be due during
the Recognized
39Obligation Payment Schedule period, but an invoice or other billing
40document has not yet been received, the successor agency may
P15 1utilize reasonable estimates and projections to support payment
2amounts for enforceable obligations if the successor agency submits
3appropriate supporting documentation of the basis for the estimate
4or projection to the department and the auditor-controller.
5(C) A Recognized Obligation Payment Schedule may also
6include appropriation of moneys from bonds subject to passage
7during the Recognized Obligation Payment Schedule cycle when
8an enforceable obligation requires the agency to issue the bonds
9and use the proceeds to pay for project expenditures.
10(n) Cause a postaudit of the financial transactions and records
11of the successor agency to be made at least annually by a certified
12public accountant.
13(o) The 12-month fiscal period specified in subdivisions (j), (k),
14and (l) shall correspond to the period from July 1 through June 30,
15inclusive, unless an oversight board and the Department of Finance
16approve a successor agency’s request for the 12-month fiscal period
17to correspond with a different fiscal year used by the city, county,
18or city and county that created the former redevelopment agency.
19(p) This section shall not be construed to alter the semiannual
20distribution of Redevelopment Property Tax Trust Fund payments
21made in accordance with the projected payment schedule of the
22approved Recognized Obligation Payment Schedule.
23(q) This section shall become operative on July 1, 2016.
O
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