BILL ANALYSIS Ó
AB 806
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ASSEMBLY THIRD READING
AB
806 (Dodd)
As Amended May 28, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+--------------------+---------------------|
|Local |9-0 |Maienschein, | |
|Government | |Gonzalez, Alejo, | |
| | |Chiu, Cooley, | |
| | |Gordon, Holden, | |
| | |Linder, Waldron | |
| | | | |
|----------------+------+--------------------+---------------------|
|Housing |6-0 |Chau, Steinorth, | |
| | |Burke, Chiu, Beth | |
| | |Gaines, Lopez | |
| | | | |
|----------------+------+--------------------+---------------------|
|Appropriations |17-0 |Gomez, Bigelow, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, | |
| | |Eggman, Gallagher, | |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Gordon, Holden, | |
| | |Jones, Quirk, | |
AB 806
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| | |Rendon, Wagner, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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SUMMARY: Makes various changes to provisions of law governing
former redevelopment agencies (RDAs). Specifically, this bill:
1)Allows, for oversight boards, each appointing authority
identified in existing law to appoint alternate representatives
to serve on the oversight board as may be necessary to attend
any meeting of the oversight board in the event that the
appointing authority's primary representative is unable to
attend any meeting for any reason.
2)Provides, if the alternate representative attends any meeting in
place of the primary representative, that the alternate
representative shall have the same participatory and voting
rights as all other attending members of the oversight board.
3)Requires the successor agency to promptly notify the Department
of Finance (DOF) regarding the appointment of any alternate
representatives to the oversight board.
4)Allows, if the successor agency has received a finding of
completion, with the approval of the successor agency's
oversight board, the successor agency to amend or modify
existing, contracts and agreements, or otherwise administer
projects in connection with enforceable obligations approved
pursuant to existing law related to the Recognized Obligation
Payment Schedule (ROPS) approval process, including the
substitution of private developer capital in a disposition and
development agreement that has been deemed an enforceable
obligation, if the contract, agreement, or project will not
commit new property tax funds, and will not otherwise directly
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or indirectly reduce property tax revenues or payments made to
the taxing agencies, as specified.
5)Allows DOF or an oversight board to require approval of a
compensation agreement or agreements, as specified, prior to any
transfer of property, provided, however, that a compensation
agreement or agreements may be developed and executed subsequent
to the approval process of a long-range property management
plan.
6)Specifies that DOF shall only consider whether the long-range
property management plan makes a good faith effort to address
the requirements set forth in the existing law that specifies
what the long-range property management plan shall do.
7)Requires DOF to approve long-range property management plans as
expeditiously as possible.
8)Provides that actions relating to the disposition of property
after approval of a long-range property management plan shall
not require review by DOF.
EXISTING LAW:
1)Dissolves RDAs and institutes a process for winding down their
activities.
2)Allows a city or county that authorized the creation of an RDA
to elect to retain the housing assets and functions previously
performed by the RDA.
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3)Required the entity assuming the housing functions of the former
RDA to submit to DOF by August 1, 2012, a list of all housing
assets, as specified.
4)Allows the entity that assumed the housing functions to
designate the use of and commit indebtedness obligation proceeds
that remain after the satisfaction of enforceable obligations
that have been approved in a ROPS and that are consistent with
the indebtedness obligation covenants.
5)Requires the proceeds to be derived from indebtedness
obligations that were issued for the purposes of affordable
housing prior to January 1, 2011, and were backed by the Low-
and Moderate-Income Housing Fund.
6)Requires DOF to issue a finding of completion to the successor
agency, within five business days, once the following conditions
have been met and verified:
a) The successor agency has paid the full amount as
determined during the due diligence reviews and the county
auditor-controller has reported those payments to DOF; and,
b) The successor agency has paid the full amount as
determined during the July True-up process; or,
c) The successor agency has paid the full amount upon a final
judicial determination of the amounts due and confirmation
that those amounts have been paid by the county
auditor-controller.
7)Allows the successor agency, upon receiving the finding of
completion, to:
a) Retain dissolved RDA assets;
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b) Place loan agreements between the former RDA and
sponsoring entity on the ROPS, as an enforceable obligation,
provided the oversight board makes a finding that the loan
was for legitimate redevelopment purposes; and,
c) Utilize proceeds derived from bonds issued prior to
January 1, 2011, in a manner consistent with the original
bond covenants.
8)Requires, after DOF issues a finding of completion, the
successor agency to prepare a long-range property management
plan that addresses the disposition and use of the real
properties of the former RDA, and requires the report to be
submitted to the oversight board and DOF for approval no later
than six months following the issuance to the successor agency
of the finding of completion.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, this bill contains negligible state costs.
COMMENTS:
1)Bill Summary. This bill makes a number of changes to provisions
of law governing former RDAs, and is an author-sponsored bill.
2)Author's Statement. According to the author, "Each year since
the dissolution of local redevelopment agencies, the Legislature
identifies relatively minor issues that require some adjustment
in the dissolution statute that allows the dissolution process
and its aftermath to work better, but do not change the policies
established when the Legislature eliminated redevelopment
agencies in the first place.
"Cleanup issues have been identified in the following areas: 1)
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Appointments to local dissolution oversight boards; 2) Minor
modifications or amendments to existing agreements or contracts
in connection with enforceable obligations; and, 3) Approval of
long-range property management plans.
"This bill allows existing oversight board members to appoint
alternates to the board, and allows those alternates to
participate in the same manner as the primary appointee. This
provision will help oversight boards to avoid unnecessary delays
in their activities. AB 806 also permits amendments and changes
to existing agreements and contracts after a finding of
completion has been issued provided that such changes and
amendments do not commit the expenditure of additional property
tax revenues or reduce the distribution of such revenues to the
taxing entities. This provision will permit change orders to
projects currently underway without impacting the availability
and distribution of property tax revenue to taxing
jurisdictions.
"Finally, the bill will allow DOF to approve long-range property
management plans without the consummation of compensation
agreements provided that the plan addresses specified
requirements relative to compiling data about the property and
estimating its value. This provision will allow successor
agencies to move forward with the disposition of property assets
that have otherwise been held in limbo to the detriment of the
taxing entities."
3)Previous Legislation. This bill is similar to SB 1129
(Steinberg) of 2014; however, SB 1129 was much broader in scope
and contained several other sections that are not in this bill.
SB 1129 was vetoed by Governor Brown.
4)Arguments in Support. According to the County of Santa Clara,
this bill makes clarifications to the Dissolution Law in a
manner that will avoid ambiguity and support the interests of
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all parties, including the state, local governments, and
successor agencies.
5)Arguments in Opposition. None on file.
Analysis Prepared by: Debbie Michel / L.
GOV. / (916) 319-3958
FN: 0000581