BILL NUMBER: AB 1555	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 1, 2012
	AMENDED IN ASSEMBLY  MARCH 6, 2012

INTRODUCED BY   Assembly Member Norby

                        JANUARY 26, 2012

   An act to add 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   private entity  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  a private entity to  the
dissolved redevelopment agency dating back to January 1, 2011.
   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
  private entity  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  a private entity to
 the dissolved redevelopment agency dating back to January 1,
2011.