Amended in Senate July 13, 2015

Amended in Assembly May 28, 2015

Amended in Assembly April 6, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 806


Introduced by Assembly Member Dodd

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(Coauthor: Assembly Member Atkins)

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February 26, 2015


begin delete An act to amend Sections 34179, 34191.4, and 34191.5 of the Health and Safety Code, relating to redevelopment.end deletebegin insert An end insertbegin insertact to add Section 65964.5 to the Government Code, relating to local government.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 806, as amended, Dodd. begin deleteRedevelopment: successor agencies to redevelopment agencies.end deletebegin insertPlanning and zoning: permits: strand-mounted antenna.end insert

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The Permit Streamlining Act governs the approval process that a city, county, or city and county is required to follow when approving, among other things, a project that is located within a flood hazard zone, a permit for a hazardous waste facility project, and a permit for construction or reconstruction for a development project for a wireless telecommunications facility.

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This bill would require state and local agencies to encourage the installation of broadband by eliminating barriers that restrict broadband deployment. The bill would also require that strand-mounted antennas, as defined, that were previously in accordance with state or local government permitting requirements be exempt from additional permit requirements. The bill would make findings and declarations in this regard including that this constitutes a matter of statewide concern.

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(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, subject to review by oversight boards, and to, among other things, make payments due for enforceable obligations and to perform obligations required pursuant to any enforceable obligation. Existing law requires the Department of Finance to issue a finding of completion to a successor agency upon confirmation by the county auditor-controller that specified payments have been fully made by the successor agency. Existing law prohibits a successor agency from entering into contracts with, incurring obligations or making commitments to, any entity, as specified; or from amending or modifying existing agreements, obligations, or commitments with any entity, for any purpose.

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This bill would authorize a successor agency, if the successor agency has received a finding of completion, to amend or modify existing contracts and agreements, or otherwise administer projects in connection with enforceable obligations, if the contract, agreement, or project will not commit new property tax funds or otherwise adversely affect the flow of specified tax revenues or payments to the taxing agencies, as specified.

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(2) Existing law requires each successor agency to have an oversight board composed of 7 members and requires each member to be appointed by a specified authority.

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This bill would allow each appointing authority to appoint alternate representatives to serve on the oversight board as may be necessary. This bill would provide that an alternate representative has the same participatory and voting rights as all other attending members of the oversight board, and would require the successor agency to promptly notify the Department of Finance regarding the appointment of any alternate representatives.

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(3) Existing law requires the disposition of assets and properties of the former redevelopment agency as directed by the oversight board, as specified, and suspends these requirements until the Department of Finance has approved a long-range property management plan, as specified. Upon approval of a long-range property management plan, the plan governs and supersedes all other provisions relating to the disposition and use of the real property assets of the former redevelopment agency. Existing law requires the property of a former redevelopment agency to be disposed of according to law if the department has not approved a long-range property management plan by January 1, 2016.

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This bill would authorize the department to require a compensation agreement or agreements, but would specify that the compensation agreement or agreements may be developed and executed subsequent to the approval of a long-range property management plan. The bill would describe the criteria and standard to be applied by the department in approving a long-range property management plan. The bill would require the department to approve long-range property management plans as expeditiously as possible. This bill would also provide that actions relating to the disposition of property after approval of a long-range property management plan do not require review by the department.

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Vote: majority. Appropriation: no. Fiscal committee: begin deleteyes end deletebegin insertnoend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P3    1begin insert

begin insertSECTION 1.end insert  

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begin insertSection 65964.5 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
2to read:end insert

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3

begin insert65964.5.end insert  

(a) (1) The Legislature hereby finds and declares
4that communications technology and services, particularly
5broadband, are criticial the the economic success of this state in
6the 21st century. Broadband can drive local and state economic
7growth, as well as improve education, business services, public
8safety, health care, and energy efficiency.

9(2) The Legislature finds and declares that the implementation
10of consistent statewide policies to achieve timely and cost-effective
11deployment of broadband is a matter of statewide concern and
12that this section shall apply to charter cities and charter counties.
13The provisions of this section shall supersede any inconsistent
14provisions in the charter of any city, county, or city and county.

15(b) It is the intent of the Legislature that state and local agencies
16not adopt ordinances, resolutions, or regulations that create
17unreasonable barriers to the installation of broadband. State and
18local agencies shall encourage the installation of broadband by
19eliminating barriers that restrict broadband deployment.

P4    1(c) (1) A strand-mounted antenna used for the provision of
2video, voice, or data service that is attached to communications
3infrastructure that were previously constructed in accordance with
4state or local permitting requirements shall be exempt from
5additional permitting requirements.

6(2) For the purposes of this section, “strand-mounted antenna”
7means a low-powered antenna embedded in or attached to
8communications cables that are part of a pole-supported overhead
9 communications infrascture. “Strand-mounted antenna” shall not
10include a commercial mobile radio services (CMRS) antenna.

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11

SECTION 1.  

Section 34179 of the Health and Safety Code is
12amended to read:

13

34179.  

(a) Each successor agency shall have an oversight
14board composed of seven members. The members shall elect one
15of their members as the chairperson and shall report the name of
16the chairperson and other members to the Department of Finance
17on or before May 1, 2012. Members shall be selected as follows:

18(1) One member appointed by the county board of supervisors.

19(2) One member appointed by the mayor for the city that formed
20the redevelopment agency.

21(3) (A) One member appointed by the largest special district,
22by property tax share, with territory in the territorial jurisdiction
23of the former redevelopment agency, which is of the type of special
24district that is eligible to receive property tax revenues pursuant
25to Section 34188.

26(B) On or after the effective date of this subparagraph, the
27county auditor-controller may determine which is the largest special
28district for purposes of this section.

29(4) One member appointed by the county superintendent of
30education to represent schools if the superintendent is elected. If
31the county superintendent of education is appointed, then the
32appointment made pursuant to this paragraph shall be made by the
33county board of education.

34(5) One member appointed by the Chancellor of the California
35Community Colleges to represent community college districts in
36the county.

37(6) One member of the public appointed by the county board
38of supervisors.

39(7) One member representing the employees of the former
40redevelopment agency appointed by the mayor or chair of the
P5    1board of supervisors, as the case may be, from the recognized
2employee organization representing the largest number of former
3redevelopment agency employees employed by the successor
4agency at that time. In the case where city or county employees
5performed administrative duties of the former redevelopment
6agency, the appointment shall be made from the recognized
7employee organization representing those employees. If a
8recognized employee organization does not exist for either the
9employees of the former redevelopment agency or the city or
10county employees performing administrative duties of the former
11redevelopment agency, the appointment shall be made from among
12the employees of the successor agency. In voting to approve a
13contract as an enforceable obligation, a member appointed pursuant
14to this paragraph shall not be deemed to be interested in the contract
15by virtue of being an employee of the successor agency or
16community for purposes of Section 1090 of the Government Code.

17(8) If the county or a joint powers agency formed the
18redevelopment agency, then the largest city by acreage in the
19territorial jurisdiction of the former redevelopment agency may
20select one member. If there are no cities with territory in a project
21area of the redevelopment agency, the county superintendent of
22education may appoint an additional member to represent the
23public.

24(9) If there are no special districts of the type that are eligible
25to receive property tax pursuant to Section 34188, within the
26territorial jurisdiction of the former redevelopment agency, then
27the county may appoint one member to represent the public.

28(10) If a redevelopment agency was formed by an entity that is
29both a charter city and a county, the oversight board shall be
30composed of seven members selected as follows: three members
31appointed by the mayor of the city, if that appointment is subject
32to confirmation by the county board of supervisors, one member
33appointed by the largest special district, by property tax share, with
34territory in the territorial jurisdiction of the former redevelopment
35agency, which is the type of special district that is eligible to
36receive property tax revenues pursuant to Section 34188, one
37member appointed by the county superintendent of education to
38represent schools, one member appointed by the Chancellor of the
39California Community Colleges to represent community college
40districts, and one member representing employees of the former
P6    1redevelopment agency appointed by the mayor of the city if that
2appointment is subject to confirmation by the county board of
3supervisors, to represent the largest number of former
4redevelopment agency employees employed by the successor
5agency at that time.

6(11) Each appointing authority identified in this subdivision
7may, but is not required to, appoint alternate representatives to
8serve on the oversight board as may be necessary to attend any
9meeting of the oversight board in the event that the appointing
10authority’s primary representative is unable to attend any meeting
11for any reason. If an alternate representative attends any meeting
12in place of the primary representative, the alternate representative
13shall have the same participatory and voting rights as all other
14attending members of the oversight board. The successor agency
15shall promptly notify the department regarding the appointment
16of alternate representatives to the oversight board.

17(b) The Governor may appoint individuals to fill any oversight
18board member position described in subdivision (a) that has not
19been filled by May 15, 2012, or any member position that remains
20vacant for more than 60 days.

21(c) The oversight board may direct the staff of the successor
22agency to perform work in furtherance of the oversight board’s
23duties and responsibilities under this part. The successor agency
24shall pay for all of the costs of meetings of the oversight board
25and may include such costs in its administrative budget. Oversight
26board members shall serve without compensation or reimbursement
27for expenses.

28(d) Oversight board members are protected by the immunities
29applicable to public entities and public employees governed by
30Part 1 (commencing with Section 810) and Part 2 (commencing
31with Section 814) of Division 3.6 of Title 1 of the Government
32Code.

33(e) A majority of the total membership of the oversight board
34shall constitute a quorum for the transaction of business. A majority
35vote of the total membership of the oversight board is required for
36the oversight board to take action. The oversight board shall be
37deemed to be a local entity for purposes of the Ralph M. Brown
38Act, the California Public Records Act, and the Political Reform
39Act of 1974. All actions taken by the oversight board shall be
40adopted by resolution.

P7    1(f) All notices required by law for proposed oversight board
2actions shall also be posted on the successor agency’s Internet
3Web site or the oversight board’s Internet Web site.

4(g) Each member of an oversight board shall serve at the
5pleasure of the entity that appointed such member.

6(h) The Department of Finance may review an oversight board
7action taken pursuant to this part. Written notice and information
8about all actions taken by an oversight board shall be provided to
9the department by electronic means and in a manner of the
10department’s choosing. An action shall become effective five
11business days after notice in the manner specified by the
12department is provided unless the department requests a review.
13Each oversight board shall designate an official to whom the
14department may make those requests and who shall provide the
15department with the telephone number and email contact
16information for the purpose of communicating with the department
17pursuant to this subdivision. Except as otherwise provided in this
18part, in the event that the department requests a review of a given
19 oversight board action, it shall have 40 days from the date of its
20request to approve the oversight board action or return it to the
21oversight board for reconsideration and the oversight board action
22shall not be effective until approved by the department. In the
23event that the department returns the oversight board action to the
24oversight board for reconsideration, the oversight board shall
25resubmit the modified action for department approval and the
26modified oversight board action shall not become effective until
27approved by the department. If the department reviews a
28Recognized Obligation Payment Schedule, the department may
29eliminate or modify any item on that schedule prior to its approval.
30The county auditor-controller shall reflect the actions of the
31department in determining the amount of property tax revenues to
32allocate to the successor agency. The department shall provide
33notice to the successor agency and the county auditor-controller
34as to the reasons for its actions. To the extent that an oversight
35board continues to dispute a determination with the department,
36one or more future recognized obligation schedules may reflect
37any resolution of that dispute. The department may also agree to
38an amendment to a Recognized Obligation Payment Schedule to
39reflect a resolution of a disputed item; however, this shall not affect
P8    1a past allocation of property tax or create a liability for any affected
2taxing entity.

3(i) Oversight boards shall have fiduciary responsibilities to
4holders of enforceable obligations and the taxing entities that
5benefit from distributions of property tax and other revenues
6pursuant to Section 34188. Further, the provisions of Division 4
7(commencing with Section 1000) of the Government Code shall
8apply to oversight boards. Notwithstanding Section 1099 of the
9Government Code, or any other law, any individual may
10simultaneously be appointed to up to five oversight boards and
11may hold an office in a city, county, city and county, special
12district, school district, or community college district.

13(j) Commencing on and after July 1, 2016, in each county where
14more than one oversight board was created by operation of the act
15adding this part, there shall be only one oversight board appointed
16as follows:

17(1) One member may be appointed by the county board of
18supervisors.

19(2) One member may be appointed by the city selection
20committee established pursuant to Section 50270 of the
21Government Code. In a city and county, the mayor may appoint
22one member.

23(3) One member may be appointed by the independent special
24district selection committee established pursuant to Section 56332
25of the Government Code, for the types of special districts that are
26eligible to receive property tax revenues pursuant to Section 34188.

27(4) One member may be appointed by the county superintendent
28of education to represent schools if the superintendent is elected.
29If the county superintendent of education is appointed, then the
30appointment made pursuant to this paragraph shall be made by the
31county board of education.

32(5) One member may be appointed by the Chancellor of the
33California Community Colleges to represent community college
34districts in the county.

35(6) One member of the public may be appointed by the county
36board of supervisors.

37(7) One member may be appointed by the recognized employee
38organization representing the largest number of successor agency
39employees in the county.

P9    1(k) The Governor may appoint individuals to fill any oversight
2board member position described in subdivision (j) that has not
3been filled by July 15, 2016, or any member position that remains
4vacant for more than 60 days.

5(l) Commencing on and after July 1, 2016, in each county where
6only one oversight board was created by operation of the act adding
7this part, then there will be no change to the composition of that
8oversight board as a result of the operation of subdivision (b).

9(m) Any oversight board for a given successor agency shall
10cease to exist when all of the indebtedness of the dissolved
11redevelopment agency has been repaid.

12(n) An oversight board may direct a successor agency to provide
13additional legal or financial advice than what was given by agency
14staff.

15(o) An oversight board is authorized to contract with the county
16or other public or private agencies for administrative support.

17(p) On matters within the purview of the oversight board,
18decisions made by the oversight board supersede those made by
19the successor agency or the staff of the successor agency.

20

SEC. 2.  

Section 34191.4 of the Health and Safety Code is
21amended to read:

22

34191.4.  

The following provisions shall apply to any successor
23agency that has been issued a finding of completion by the
24Department of Finance:

25(a) All real property and interests in real property identified in
26subparagraph (C) of paragraph (5) of subdivision (c) of Section
2734179.5 shall be transferred to the Community Redevelopment
28Property Trust Fund of the successor agency upon approval by the
29Department of Finance of the long-range property management
30plan submitted by the successor agency pursuant to subdivision
31(b) of Section 34191.5 unless that property is subject to the
32requirements of any existing enforceable obligation.

33(b) (1) Notwithstanding subdivision (d) of Section 34171, upon
34application by the successor agency and approval by the oversight
35board, loan agreements entered into between the redevelopment
36agency and the city, county, or city and county that created the
37redevelopment agency shall be deemed to be enforceable
38obligations provided that the oversight board makes a finding that
39the loan was for legitimate redevelopment purposes.

P10   1(2) If the oversight board finds that the loan is an enforceable
2obligation, the accumulated interest on the remaining principal
3amount of the loan shall be recalculated from origination at the
4interest rate earned by funds deposited into the Local Agency
5Investment Fund. The loan shall be repaid to the city, county, or
6city and county in accordance with a defined schedule over a
7reasonable term of years at an interest rate not to exceed the interest
8rate earned by funds deposited into the Local Agency Investment
9Fund. The annual loan repayments provided for in the recognized
10obligation payment schedules shall be subject to all of the following
11limitations:

12(A) Loan repayments shall not be made prior to the 2013-14
13fiscal year. Beginning in the 2013-14 fiscal year, the maximum
14repayment amount authorized each fiscal year for repayments
15made pursuant to this subdivision and paragraph (7) of subdivision
16(e) of Section 34176 combined shall be equal to one-half of the
17increase between the amount distributed to the taxing entities
18pursuant to paragraph (4) of subdivision (a) of Section 34183 in
19that fiscal year and the amount distributed to taxing entities
20pursuant to that paragraph in the 2012-13 base year, provided,
21however, that calculation of the amount distributed to taxing
22entities during the 2012-13 base year shall not include any amounts
23distributed to taxing entities pursuant to the due diligence review
24process established in Sections 34179.5 to 34179.8, inclusive.
25Loan or deferral repayments made pursuant to this subdivision
26 shall be second in priority to amounts to be repaid pursuant to
27paragraph (7) of subdivision (e) of Section 34176.

28(B) Repayments received by the city, county, or city and county
29that formed the redevelopment agency shall first be used to retire
30any outstanding amounts borrowed and owed to the Low and
31Moderate Income Housing Fund of the former redevelopment
32agency for purposes of the Supplemental Educational Revenue
33Augmentation Fund and shall be distributed to the Low and
34Moderate Income Housing Asset Fund established by subdivision
35(d) of Section 34176.

36(C) Twenty percent of any loan repayment shall be deducted
37from the loan repayment amount and shall be transferred to the
38Low and Moderate Income Housing Asset Fund, after all
39outstanding loans from the Low and Moderate Income Housing
P11   1Fund for purposes of the Supplemental Educational Revenue
2Augmentation Fund have been paid.

3(c) (1) Bond proceeds derived from bonds issued on or before
4December 31, 2010, shall be used for the purposes for which the
5bonds were sold.

6(2) (A) Notwithstanding Section 34177.3 or any other
7conflicting provision of law, bond proceeds in excess of the
8amounts needed to satisfy approved enforceable obligations shall
9thereafter be expended in a manner consistent with the original
10bond covenants. Enforceable obligations may be satisfied by the
11creation of reserves for projects that are the subject of the
12enforceable obligation and that are consistent with the contractual
13obligations for those projects, or by expending funds to complete
14the projects. An expenditure made pursuant to this paragraph shall
15constitute the creation of excess bond proceeds obligations to be
16paid from the excess proceeds. Excess bond proceeds obligations
17shall be listed separately on the Recognized Obligation Payment
18Schedule submitted by the successor agency.

19(B) If remaining bond proceeds cannot be spent in a manner
20consistent with the bond covenants pursuant to subparagraph (A),
21the proceeds shall be used to defease the bonds or to purchase
22those same outstanding bonds on the open market for cancellation.

23(d) Notwithstanding subdivision (b) of Section 34163, if a
24successor agency has received a finding of completion, with the
25approval of the successor agency’s oversight board, the successor
26agency may amend or modify existing contracts and agreements,
27or otherwise administer projects in connection with enforceable
28obligations approved pursuant to subdivision (m) of Section 34177,
29including the substitution of private developer capital in a
30disposition and development agreement that has been deemed an
31enforceable obligation, if the contract, agreement, or project will
32not commit new property tax funds, and will not otherwise directly
33or indirectly reduce property tax revenues or payments made
34pursuant to paragraph (4) of subdivision (a) of Section 34183 to
35the taxing agencies.

36

SEC. 3.  

Section 34191.5 of the Health and Safety Code is
37amended to read:

38

34191.5.  

(a) There is hereby established a Community
39Redevelopment Property Trust Fund, administered by the successor
40agency, to serve as the repository of the former redevelopment
P12   1agency’s real properties identified in subparagraph (C) of paragraph
2(5) of subdivision (c) of Section 34179.5.

3(b) The successor agency shall prepare a long-range property
4management plan that addresses the disposition and use of the real
5properties of the former redevelopment agency. The report shall
6be submitted to the oversight board and the Department of Finance
7for approval no later than six months following the issuance to the
8successor agency of the finding of completion.

9(c) The long-range property management plan shall do all of
10the following:

11(1) Include an inventory of all properties in the trust. The
12inventory shall consist of all of the following information:

13(A) The date of the acquisition of the property and the value of
14the property at that time, and an estimate of the current value of
15the property.

16(B) The purpose for which the property was acquired.

17(C) Parcel data, including address, lot size, and current zoning
18in the former agency redevelopment plan or specific, community,
19or general plan.

20(D) An estimate of the current value of the parcel including, if
21available, any appraisal information.

22(E) An estimate of any lease, rental, or any other revenues
23generated by the property, and a description of the contractual
24requirements for the disposition of those funds.

25(F) The history of environmental contamination, including
26designation as a brownfield site, any related environmental studies,
27and history of any remediation efforts.

28(G) A description of the property’s potential for transit-oriented
29development and the advancement of the planning objectives of
30the successor agency.

31(H) A brief history of previous development proposals and
32activity, including the rental or lease of property.

33(2) Address the use or disposition of all of the properties in the
34trust. Permissible uses include the retention of the property for
35governmental use pursuant to subdivision (a) of Section 34181,
36the retention of the property for future development, the sale of
37the property, or the use of the property to fulfill an enforceable
38obligation. The plan shall separately identify and list properties in
39the trust dedicated to governmental use purposes and properties
40retained for purposes of fulfilling an enforceable obligation. With
P13   1respect to the use or disposition of all other properties, all of the
2following shall apply:

3(A) (i) If the plan directs the use or liquidation of the property
4for a project identified in an approved redevelopment plan, the
5property shall transfer to the city, county, or city and county.

6(ii) For purposes of this subparagraph, the term “identified in
7an approved redevelopment plan” includes properties listed in a
8community plan or a five-year implementation plan.

9(iii) The department or an oversight board may require approval
10of a compensation agreement or agreements, as described in
11subdivision (f) of Section 34180, prior to any transfer of property
12pursuant to this subparagraph, provided, however, that a
13compensation agreement or agreements may be developed and
14executed subsequent to the approval process of a long-range
15property management plan.

16(B) If the plan directs the liquidation of the property or the use
17of revenues generated from the property, such as lease or parking
18revenues, for any purpose other than to fulfill an enforceable
19obligation or other than that specified in subparagraph (A), the
20proceeds from the sale shall be distributed as property tax to the
21taxing entities.

22(C) Property shall not be transferred to a successor agency, city,
23county, or city and county, unless the long-range property
24management plan has been approved by the oversight board and
25the Department of Finance.

26(d) The department shall only consider whether the long-range
27property management plan makes a good faith effort to address
28the requirements set forth in subdivision (c).

29(e) The department shall approve long-range property
30management plans as expeditiously as possible.

31(f) Actions relating to the disposition of property after approval
32of a long-range property management plan shall not require review
33by the department.

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