BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 68
                                                                  Page  1


          SENATE THIRD READING
          SB 68 (Ducheny)
          As Amended  September 4, 2009
           2/3 vote.  Urgency 

           SENATE VOTE  :Vote not relevant  
           
          SUMMARY:  Modifies the provisions enacted by AB 26 X4 (Chapter  
          21, Statutes of 2009) which shifted $1.7 billion in  
          redevelopment revenues to the Supplemental Education al Revenue  
          Augmentation Fund in 2009-10, thereby benefiting the State  
          General Fund.  The modifications provide additional flexibility  
          to Redevelopment Agencies (RDAs) in making the required  
          transfer, and specifies the use of more recent RDA data in the  
          calculation of the revenue shift.  Specifically,  this bill  :

          1)Allows RDAs to borrow from the existing balance of their Low-  
            and Moderate-Income Housing Fund for the purpose of making the  
            2009-10 transfer required pursuant to AB 26 X4 (Chapter 21,  
            Statutes of 2009).  This borrowing would have to be fully  
            repaid within five years.  Existing law already authorizes  
            RDAs to borrow from the current year contribution to the Low-  
            and Moderate-Income Housing Fund, but not their existing  
            balance.

          2)Allows the Department of Finance to use the 2007-08 edition of  
            the State Controller's Community Redevelopment Agencies Annual  
            Report, should that report be available in time for the  
            Director of Finance's calculation of each RDAs obligation.  If  
            the 2007-08 report is not available, the Director of Finance  
            will use the 2006-07 report, but must adjust the data to  
            exclude amounts apportioned to any RDA from any territory that  
            was deleted from their project area prior to August 1, 2009.

          3)Urgency Clause:  Declares this bill take effect immediately as  
            an urgency statute.


           Analysis Prepared by  :    Adam Dondro / BUDGET / (916) 319-2099 


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