BILL NUMBER: AB 1555	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 6, 2012

INTRODUCED BY   Assembly Member Norby

                        JANUARY 26, 2012

   An act to add  Section 33601.5 to, and to repeal Article
4.4 (commencing with Section 33354.7) of Chapter 4 of Part 1 of
Division 24 of,   Section 34181.5 to  the Health
and Safety Code, relating to redevelopment.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1555, as amended, Norby. Redevelopment: debt forgiveness 
agreements  . 
   Existing law dissolved redevelopment agencies and community
development agencies, as of February 1, 2012, and provides for the
designation of successor agencies, as defined. Existing law imposes
various requirements on successor agencies and subjects successor
agency actions to the review of oversight boards. Existing law
requires each oversight board to direct the successor agency to,
among other things, cease performance in connection with and
terminate all existing agreements that do not qualify as enforceable
obligations, as defined.  
   This bill would, in directing the successor agency to take a
specified action, prohibit the oversight board from requiring the
successor agency to take any action that results in the forgiveness,
wholly or partially, of a loan, advance, or indebtedness that is owed
by a public body to the dissolved redevelopment agency. The bill
would authorize the oversight board, consistent with a specified
provision of law, to set aside any agreements relating to the
forgiveness of indebtedness, loans, or advances owed by the dissolved
redevelopment agency dating back to January 1, 2011.  
   The Community Redevelopment Law authorizes the establishment of
redevelopment agencies in specified communities to address the
effects of blight, as defined. Existing law imposes notice
requirements on a redevelopment agency with respect to the
forgiveness of debts and loans owed to an agency by a public body.
 
   This bill would repeal the provisions of law with respect to
redevelopment agency forgiveness of debts and loans. The bill would
prohibit an agency from forgiving the repayment of a loan, advance,
or indebtedness that is owed by a public body to the agency.

   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 34181.5 is added to the 
 Health and Safety Code   , to read:  
   34181.5.  (a) In directing the successor agency to take any action
specified in Section 34181 or any provision of this part, the
oversight board shall not require the successor agency to take any
action that results in the forgiveness, wholly or partially, of a
loan, advance, or indebtedness that is owed by a public body to the
dissolved redevelopment agency.
   (b) The oversight board may, consistent with subdivision (b) of
Section 34181, set aside any agreements relating to the forgiveness
of indebtedness, loans, or advances owed by the dissolved
redevelopment agency dating back to January 1, 2011.  
  SECTION 1.    Article 4.4 (commencing with Section
33354.7) of Chapter 4 of Part 1 of Division 24 of the Health and
Safety Code is repealed.  
  SEC. 2.    Section 33601.5 is added to the Health
and Safety Code, to read:
   33601.5.  Notwithstanding any other law, an agency shall not
forgive the repayment, wholly or partially, of a loan, advance, or
indebtedness that is owed by a public body to the agency.