BILL ANALYSIS
SB 430
Page 1
SENATE THIRD READING
SB 430 (Dutton)
As Amended May 12, 2009
Majority vote
SENATE VOTE :33-0
LOCAL GOVERNMENT 7-0
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|Ayes:|Caballero, Knight, | | |
| |Arambula, Davis, Duvall, | | |
| |Krekorian, Skinner | | |
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SUMMARY : Extends the County of San Bernardino Redevelopment
Agency's Cedar Glen Disaster Recovery Project Area's time limit
from 10 years to 15 years for the plan's effectiveness.
EXISTING LAW :
1)Authorizes a community to establish a redevelopment agency,
and adopt and implement a redevelopment plan within a disaster
area if the community has commenced the adoption of the
redevelopment plan within six months after the President of
the United States has determined the disaster to be a major
disaster and the legislative body has adopted the
redevelopment plan within 24 months after the President of the
United States has determined the disaster to be a major
disaster.
2)States that any redevelopment plan adopted in an area in which
a disaster has occurred shall contain the following time
limits:
a) A time limit on the establishing of loans, advances, and
indebtedness to be paid with the proceeds of property tax
increment received, which may not exceed 10 years from the
adoption of the redevelopment plan;
b) A time limit, not to exceed 10 years from the adoption
of the redevelopment plan, on the effectiveness of the
redevelopment plan; and,
SB 430
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c) A time limit, not to exceed 30 years from the adoption
of the redevelopment plan, to repay indebtedness with the
proceeds of property taxes received pursuant to Health and
Safety Code Section 33670.
3)Defines "disaster" as any flood, fire, hurricane, earthquake,
storm, tidal wave, or other catastrophe occurring on or after
January 1, 1996, for which the Governor of the State of
California has certified the need for assistance and which the
President of the United States has determined to be a major
disaster.
FISCAL EFFECT : None
COMMENTS : In October 2003, the "Old Fire" ravaged the San
Bernardino Mountains and almost completely destroyed the
unincorporated community of Cedar Glen near Lake Arrowhead. The
fire destroyed 324 structures in that community, over 75% of the
total number of homes at the time, and damaged a number of
others. Only a few homes have been rebuilt since the fire. The
County of San Bernardino has been endeavoring to help residents
rebuild that community in a responsible way. The board of
supervisors created a disaster redevelopment agency encompassing
Cedar Glen and also overlaid the area with a county service area
improvement zone to rebuild and maintain the road system,
provide better ingress/egress to the community for safety
purposes, and to acquire/upgrade the antiquated and financially
bankrupt water company serving the area, the Arrowhead Manor
Water Company. Under current law, the Cedar Glen Project Area
has until 2014 to create debt, until 2014 for the plan's
effectiveness, and until 2034 to repay its debts.
Mounting debts and the loss of customers after the fire forced
the private Arrowhead
Manor Water Company into state receivership. Under the
provisions of AB 2680 (Adams), Chapter 643, Statutes of 2008,
state officials may waive penalties and interest if San
Bernardino County acquires the water system. After the delays
caused by the private water system's financial problems, San
Bernardino County officials are now nearing completion on Phase
1 of the Cedar Glen Disaster Redevelopment Project Area: a new
water tank, new well, new water lines and fire hydrants, and
over two miles of road improvements. More work remains to be
done, but there are just five years left to create more debt and
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finish the redevelopment activities. This bill gives San
Bernardino County redevelopment officials five more years, for a
total of 15 years, to build the public works that the Cedar Glen
area needs.
Analysis Prepared by : Katie Kolitsos / L. GOV. / (916)
319-3958
FN: 0001490