BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 68
                                                                  Page  1


          SENATE THIRD READING
          SB 68 (Budget and Fiscal Review Committee)
          As Amended  November 2, 2009
          2/3 vote.  Urgency 

          SENATE VOTE  :Vote not relevant  
           
           SUMMARY  :  Modifies the provisions enacted by AB 26 X4 (Chapter  
          21, Statutes of 2009-10, Fourth Extraordinary Session) which  
          shifted $1.7 billion in redevelopment revenues to the  
          Supplemental Educational 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 specify 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.  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)Requires, with respect to the use of the 2006-07 edition of  
            the Controllers Community Redevelopment Agencies Annual  
            Report, the Department of Finance to 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)Contains an urgency clause allowing this bill to take effect  
            immediately upon enactment.

           COMMENTS  :  This bill is similar to AB 182 (Committee on Budget);  
          however, this bill does not include language that would allow  
          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.


           Analysis Prepared by  :   Christian Griffith / BUDGET / (916)  
          319-2099 








                                                                  SB 68
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