Amended in Senate January 6, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 471

Introduced by Assembly begin delete Member end delete begin insert Members end insert Atkins begin insert , Dickinson, Perea, and Ting end insert

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(Coauthors: Senators Mitchell, Torres, and Wolk)

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February 19, 2013

begin delete An act to amend Section 14593 of the Welfare and Institutions Code, relating to Medi-Cal. end delete begin insert An act to amend Section 53395.4 of the Government Code, and to amend Sections 34163, 34171, 34177, 34180, 34183, 34191.4, and 34191.5 of the Health and Safety Code, relating to local government, and declaring the urgency thereof, to take effect immediately. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 471, as amended, Atkins. begin delete Medi-Cal: Program of All-Inclusive Care for the Elderly. end delete begin insert Local government: redevelopment: successor agencies to redevelopment agencies. end insert

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(1) Existing law authorizes the creation of infrastructure financing districts, as defined, for the sole purpose of financing public facilities, subject to adoption of a resolution by the legislative body and affected taxing entities proposed to be subject to the division of taxes and voter approval requirements. Existing law prohibits an infrastructure financing district from including any portion of a redevelopment project area.

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This bill would delete that prohibition and would authorize a district to finance a project or portion of a project that is located in, or overlaps with, a redevelopment project area or former redevelopment project area, as specified.

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(2) Existing law dissolved redevelopment agencies and community development agencies as of February 1, 2012, and provides for the designation of successor agencies to wind down the affairs of the dissolved redevelopment agencies and to, among other things, make payments due for enforceable obligations and to perform obligations required pursuant to any enforceable obligation. Existing law prohibits a successor agency from entering into contracts with, incur obligations, or make commitments to, any entity, as specified, or to amend or modify existing agreements, obligations, or commitments with any entity, for any purpose.

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This bill would authorize a successor agency to amend an existing contract or agreement related to long-term enforceable obligations, or enter into a new contract or agreement in furtherance of an existing contract or agreement, for the purpose of administering projects in connection with long-term enforceable obligations, if the existing contract or agreement has been approved by the Department of Finance as an enforceable obligation on a Recognized Obligation Payment Schedule, and the existing contract or agreement has received a final and conclusive determination. The bill would prohibit any amendment of an existing contract or agreement, or any new contract or agreement, from committing any new funding from any source beyond the funding that was previously authorized in the existing contract or agreement. The bill would also prohibit the amendment of an existing contract or agreement, or any new contract or agreement, from otherwise adversely affecting the flow of property tax revenues, or payments made to taxing entities, as specified.

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(3) Existing law requires a successor agency to submit a Recognized Obligation Payment Schedule to the Department of Finance, and requires the successor agency to make payments pursuant to that schedule.

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This bill would authorize the successor agency to schedule Recognized Obligation Payment Schedule payments beyond the existing Recognized Obligation Payment Schedule cycle upon a showing that a lender requires cash on hand beyond the Recognized Obligation Payment Schedule cycle, or when a payment is shown to be due during the Recognized Obligation Payment Schedule period. The bill would authorize the successor agency to utilize reasonable estimates and projections to support payment amounts where a payment is shown to be due during the Recognized Obligation Payment Schedule period but an invoice or other billing document has not been received, if the successor agency submits appropriate supporting documentation for the basis of the estimate or projection to the department. The bill would provide that a Recognized Obligation Payment Schedule may also include appropriation of moneys from bonds subject to passage during the Recognized Obligation Payment Schedule cycle when an enforceable obligation requires the agency to issue the bonds and use the proceeds to pay for project expenditures.

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(4) Existing law requires that specified actions of a successor agency be first approved by its oversight board, including, among others, the establishment of a Recognized Obligation Payment Schedule.

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This bill would require a successor agency to notify the board 10 days prior to entering into a contract or agreement for the use or disposition of specified properties. The bill would authorize the board to notify the successor agency during that 10-day period that the board intends to conduct a hearing to determine whether the contract or agreement is consistent with the successor agency’s long-range property management plan and would require the board to hold the hearing and issue findings within 30 days after it so notified the successor agency.

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(5) Existing law requires the county auditor-controller to determine the amount of property taxes that would have been allocated to each redevelopment agency if it had not been dissolved and to deposit this amount in a Redevelopment Property Tax Trust Fund in the county. Existing law requires the conducting of a due diligence review to determine the unobligated balances available for transfer to affected taxing entities. Existing law requires the county auditor-controller for each fiscal year to allocate moneys in the Redevelopment Property Tax Trust Fund for passthrough payment obligations, enforceable obligations of the dissolved redevelopment agency, and administrative costs, as specified. Any remaining moneys in the Redevelopment Property Tax Trust Fund are required to be distributed as local property tax revenues to local agencies and school entities, as specified.

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This bill would require that, on January 2, 2014, and twice yearly thereafter until June 1, 2018, funds be allocated to cover the housing entity administrative cost allowance of a local housing authority that has assumed the housing duties of the former redevelopment agency, as specified, before remaining moneys are distributed to local agencies and school entities. The bill would define “housing entity administrative cost allowance” for these purposes. This bill would also exclude from the calculation of the amount distributed to taxing entities during the 2012-13 base year the amounts distributed to taxing entities pursuant to the due diligence review process. By imposing additional duties upon local public officials, the bill would create a state-mandated local program.

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(6) Existing law requires a successor agency to prepare a long-range property management plan that addresses the disposition and use of the real properties of a former redevelopment agency and requires a transfer of the property to the city, county, or city and county if the plan directs the use or liquidation of the property for a project identified in an approved redevelopment plan, as specified.

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This bill would specify that the term “identified in an approved redevelopment plan” includes properties listed in a community plan or a 5-year implementation plan.

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(7) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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(8) This bill would declare that it is to take effect immediately as an urgency statute.

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Existing law provides for the Medi-Cal program, which is administered by the State Department of Health Care Services, under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions. Existing federal law establishes the Program of All-Inclusive Care for the Elderly (PACE), which provides specified services for older individuals so that they may continue living in the community. Federal law authorizes states to implement the PACE program as a Medicaid state option.

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Existing state law establishes the California Program for All-Inclusive Care for the Elderly and establishes PACE program services as a covered benefit of the Medi-Cal program. Existing law authorizes the department to enter into contracts with up to 15 PACE organizations, as defined, to implement the PACE program, as specified.

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This bill would delete the provision that limits the number of contracts with PACE organizations to 15.

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Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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begin insert Section 53395.4 of the end insert begin insert Government Code end insert begin insert is
amended to read: end insert

53395.4.  

(a) A district may begin delete not include any portion of a
redevelopment project area which is or has been previously created
pursuant to Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code, whether the creation is or was
proper or improper. A redevelopment project area may not include
any portion of a district created pursuant to this chapter. end delete

begin delete (b) end delete begin delete   end delete begin delete A district may end delete finance only the facilities or services
authorized in this chapter to the extent that the facilities or services
are in addition to those provided in the territory of the district
before the district was created. The additional facilities or services
may not supplant facilities or services already available within that
territory when the district was created but may supplement those
facilities and services as needed to serve new developments.

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(c)

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begin insert (b) end insert  A district may include areas begin delete which end delete begin insert that end insert are not contiguous.

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(c) A district may finance a project or portion of a project that
is located in, or overlaps with, a redevelopment project area or
former redevelopment project area. The successor agency to the
former redevelopment agency shall receive a certificate of
completion, as defined in Section 34179.7 of the Health and Safety
Code, prior to the district financing any project or portion of a
project under this subdivision.

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(d) Notwithstanding subdivision (c), any debt or obligation of
a district shall be subordinate to an enforceable obligation of a
former redevelopment agency, as defined in Section 34171 of the
Health and Safety Code. For the purposes of this chapter, the
division of taxes allocated to the district pursuant to subdivision
(b) of Section 53396 shall not include any taxes required to be
deposited by the county auditor-controller into the Redevelopment
Property Tax Trust Fund created pursuant to subdivision (b) of
Section 34170.5 of the Health and Safety Code.

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(e) The legislative body of the city forming the district may
choose to dedicate any portion of its net available revenue to the
district through the financing plan described in Section 53395.14.

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(f) For the purposes of this section, “net available revenue”
means periodic distributions to the city from the Redevelopment
Property Tax Trust Fund, created pursuant to Section 34170.5 of
the Health and Safety Code, that are available to the city after all
preexisting legal commitments and statutory obligations funded
from that revenue are made pursuant to Part 1.85 (commencing
with Section 34170) of Division 24 of the Health and Safety Code.
Net available revenue shall not include any funds deposited by the
county auditor-controller into the Redevelopment Property Tax
Trust Fund or funds remaining in the Redevelopment Property
Tax Trust Fund prior to distribution. Net available revenues shall
not include any moneys payable to a school district that maintains
kindergarten and grades 1 to 12, inclusive, community college
districts, or to the Educational Revenue Augmentation Fund,
pursuant to paragraph (4) of subdivision (a) of Section 34183 of
the Health and Safety Code.

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begin insert SEC. 2. end insert   

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begin insert Section 34163 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

34163.  

Notwithstanding Part 1 (commencing with Section
33000), Part 1.5 (commencing with Section 34000), Part 1.6
(commencing with Section 34050), and Part 1.7 (commencing
with Section 34100), or any other law, commencing on the effective
date of this part, an agency shall not have the authority to, and
shall not, do any of the following:

(a) Make loans or advances or grant or enter into agreements
to provide funds or provide financial assistance of any sort to any
entity or person for any purpose, including, but not limited to, all
of the following:

(1) Loans of moneys or any other thing of value or commitments
to provide financing to nonprofit organizations to provide those
organizations with financing for the acquisition, construction,
rehabilitation, refinancing, or development of multifamily rental
housing or the acquisition of commercial property for lease, each
pursuant to Chapter 7.5 (commencing with Section 33741) of Part
1.

(2) Loans of moneys or any other thing of value for residential
construction, improvement, or rehabilitation pursuant to Chapter
8 (commencing with Section 33750) of Part 1. These include, but
are not limited to, construction loans to purchasers of residential
housing, mortgage loans to purchasers of residential housing, and
loans to mortgage lenders, or any other entity, to aid in financing
pursuant to Chapter 8 (commencing with Section 33750).

(3) The purchase, by an agency, of mortgage or construction
loans from mortgage lenders or from any other entities.

(b)  begin delete Enter end delete begin insert Except as provided in subdivision (d) of Section
34191.4, enter end insert into contracts with, incur obligations, or make
commitments to, any entity, whether governmental, tribal, or
private, or any individual or groups of individuals for any purpose,
including, but not limited to, loan agreements, passthrough
agreements, regulatory agreements, services contracts, leases,
disposition and development agreements, joint exercise of powers
agreements, contracts for the purchase of capital equipment,
agreements for redevelopment activities, including, but not limited
to, agreements for planning, design, redesign, development,
demolition, alteration, construction, reconstruction, rehabilitation,
site remediation, site development or improvement, removal of
graffiti, land clearance, and seismic retrofits.

(c) Amend or modify existing agreements, obligations, or
commitments with any entity, for any purpose, including, but not
limited to, any of the following:

(1) Renewing or extending term of leases or other agreements,
except that the agency may extend lease space for its own use to
a date not to exceed six months after the effective date of the act
adding this part and for a rate no more than 5 percent above the
rate the agency currently pays on a monthly basis.

(2) Modifying terms and conditions of existing agreements,
obligations, or commitments.

(3) Forgiving all or any part of the balance owed to the agency
on existing loans or extend the term or change the terms and
conditions of existing loans.

(4) Making any future deposits to the Low and Moderate Income
Housing Fund created pursuant to Section 33334.3.

(5) Transferring funds out of the Low and Moderate Income
Housing Fund, except to meet the minimum housing-related
obligations that existed as of January 1, 2011, to make required
payments under Sections 33690 and 33690.5, and to borrow funds
pursuant to Section 34168.5.

(d) Dispose of assets by sale, long-term lease, gift, grant,
exchange, transfer, assignment, or otherwise, for any purpose,
including, but not limited to, any of the following:

(1) Assets, including, but not limited to, real property, deeds of
trust, and mortgages held by the agency, moneys, accounts
receivable, contract rights, proceeds of insurance claims, grant
proceeds, settlement payments, rights to receive rents, and any
other rights to payment of whatever kind.

(2) Real property, including, but not limited to, land, land under
water and waterfront property, buildings, structures, fixtures, and
improvements on the land, any property appurtenant to, or used
in connection with, the land, every estate, interest, privilege,
easement, franchise, and right in land, including rights-of-way,
terms for years, and liens, charges, or encumbrances by way of
judgment, mortgage, or otherwise, and the indebtedness secured
by the liens.

(e) Acquire real property by any means for any purpose,
including, but not limited to, the purchase, lease, or exercising of
an option to purchase or lease, exchange, subdivide, transfer,
assume, obtain option upon, acquire by gift, grant, bequest, devise,
or otherwise acquire any real property, any interest in real property,
and any improvements on it, including the repurchase of developed
property previously owned by the agency and the acquisition of
real property by eminent domain; provided, however, that nothing
in this subdivision is intended to prohibit the acceptance or transfer
of title for real property acquired prior to the effective date of this
part.

(f) Transfer, assign, vest, or delegate any of its assets, funds,
rights, powers, ownership interests, or obligations for any purpose
to any entity, including, but not limited to, the community, the
legislative body, another member of a joint powers authority, a
trustee, a receiver, a partner entity, another agency, a nonprofit
corporation, a contractual counterparty, a public body, a
limited-equity housing cooperative, the state, a political subdivision
of the state, the federal government, any private entity, or an
individual or group of individuals.

(g) Accept financial or other assistance from the state or federal
government or any public or private source if the acceptance
necessitates or is conditioned upon the agency incurring
indebtedness as that term is described in this part.

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begin insert SEC. 3. end insert   

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begin insert Section 34171 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

34171.  

The following terms shall have the following meanings:

(a) “Administrative budget” means the budget for administrative
costs of the successor agencies as provided in Section 34177.

(b) “Administrative cost allowance” means an amount that,
subject to the approval of the oversight board, is payable from
property tax revenues of up to 5 percent of the property tax
allocated to the successor agency on the Recognized Obligation
Payment Schedule covering the period January 1, 2012, through
June 30, 2012, and up to 3 percent of the property tax allocated to
the Redevelopment Obligation Retirement Fund money that is
allocated to the successor agency for each fiscal year thereafter;
provided, however, that the amount shall not be less than two
hundred fifty thousand dollars ($250,000), unless the oversight
board reduces this amount, for any fiscal year or such lesser amount
as agreed to by the successor agency. However, the allowance
amount shall exclude, and shall not apply to, any administrative
costs that can be paid from bond proceeds or from sources other
than property tax. Administrative cost allowances shall exclude
any litigation expenses related to assets or obligations, settlements
and judgments, and the costs of maintaining assets prior to
disposition. Employee costs associated with work on specific
project implementation activities, including, but not limited to,
construction inspection, project management, or actual
construction, shall be considered project-specific costs and shall
not constitute administrative costs.

(c) “Designated local authority” shall mean a public entity
formed pursuant to subdivision (d) of Section 34173.

(d) (1) “Enforceable obligation” means any of the following:

(A) Bonds, as defined by Section 33602 and bonds issued
pursuant to Chapter 10.5 (commencing with Section 5850) of
Division 6 of Title 1 of the Government Code, including the
required debt service, reserve set-asides, and any other payments
required under the indenture or similar documents governing the
issuance of the outstanding bonds of the former redevelopment
agency. A reserve may be held when required by the bond
indenture or when the next property tax allocation will be
insufficient to pay all obligations due under the provisions of the
bond for the next payment due in the following half of the calendar
year.

(B) Loans of moneys borrowed by the redevelopment agency
for a lawful purpose, to the extent they are legally required to be
repaid pursuant to a required repayment schedule or other
mandatory loan terms.

(C) Payments required by the federal government, preexisting
obligations to the state or obligations imposed by state law, other
than passthrough payments that are made by the county
auditor-controller pursuant to Section 34183, or legally enforceable
payments required in connection with the agencies’ employees,
including, but not limited to, pension payments, pension obligation
debt service, unemployment payments, or other obligations
conferred through a collective bargaining agreement. Costs incurred
to fulfill collective bargaining agreements for layoffs or
terminations of city employees who performed work directly on
behalf of the former redevelopment agency shall be considered
enforceable obligations payable from property tax funds. The
obligations to employees specified in this subparagraph shall
remain enforceable obligations payable from property tax funds
for any employee to whom those obligations apply if that employee
is transferred to the entity assuming the housing functions of the
former redevelopment agency pursuant to Section 34176. The
successor agency or designated local authority shall enter into an
agreement with the housing entity to reimburse it for any costs of
the employee obligations.

(D) Judgments or settlements entered by a competent court of
law or binding arbitration decisions against the former
redevelopment agency, other than passthrough payments that are
made by the county auditor-controller pursuant to Section 34183.
Along with the successor agency, the oversight board shall have
the authority and standing to appeal any judgment or to set aside
any settlement or arbitration decision.

(E) Any legally binding and enforceable agreement or contract
that is not otherwise void as violating the debt limit or public
policy. However, nothing in this act shall prohibit either the
successor agency, with the approval or at the direction of the
oversight board, or the oversight board itself from terminating any
existing agreements or contracts and providing any necessary and
required compensation or remediation for such termination. Titles
of or headings used on or in a document shall not be relevant in
determining the existence of an enforceable obligation.

(F) Contracts or agreements necessary for the administration or
operation of the successor agency, in accordance with this part,
including, but not limited to, agreements concerning litigation
expenses related to assets or obligations, settlements and
begin delete judgements end delete begin insert judgments end insert , and the costs of maintaining assets prior
to disposition, and agreements to purchase or rent office space,
equipment and supplies, and pay-related expenses pursuant to
Section 33127 and for carrying insurance pursuant to Section
33134.

(G) Amounts borrowed from, or payments owing to, the Low
and Moderate Income Housing Fund of a redevelopment agency,
which had been deferred as of the effective date of the act adding
this part; provided, however, that the repayment schedule is
approved by the oversight board. Repayments shall be transferred
to the Low and Moderate Income Housing Asset Fund established
pursuant to subdivision (d) of Section 34176 as a housing asset
and shall be used in a manner consistent with the affordable
housing requirements of the Community Redevelopment Law (Part
1 (commencing with Section 33000)).

(2) For purposes of this part, “enforceable obligation” does not
include any agreements, contracts, or arrangements between the
city, county, or city and county that created the redevelopment
agency and the former redevelopment agency. However, written
agreements entered into (A) at the time of issuance, but in no event
later than December 31, 2010, of indebtedness obligations, and
(B) solely for the purpose of securing or repaying those
indebtedness obligations may be deemed enforceable obligations
for purposes of this part. Notwithstanding this paragraph, loan
agreements entered into between the redevelopment agency and
the city, county, or city and county that created it, within two years
of the date of creation of the redevelopment agency, may be
deemed to be enforceable obligations.

(3) Contracts or agreements between the former redevelopment
agency and other public agencies, to perform services or provide
funding for governmental or private services or capital projects
outside of redevelopment project areas that do not provide benefit
to the redevelopment project and thus were not properly authorized
under Part 1 (commencing with Section 33000) shall be deemed
void on the effective date of this part; provided, however, that such
contracts or agreements for the provision of housing properly
authorized under Part 1 (commencing with Section 33000) shall
not be deemed void.

(e) “Indebtedness obligations” means bonds, notes, certificates
of participation, or other evidence of indebtedness, issued or
delivered by the redevelopment agency, or by a joint exercise of
powers authority created by the redevelopment agency, to
third-party investors or bondholders to finance or refinance
redevelopment projects undertaken by the redevelopment agency
in compliance with the Community Redevelopment Law (Part 1
(commencing with Section 33000)).

(f) “Oversight board” shall mean each entity established pursuant
to Section 34179.

(g) “Recognized obligation” means an obligation listed in the
Recognized Obligation Payment Schedule.

(h) “Recognized Obligation Payment Schedule” means the
document setting forth the minimum payment amounts and due
dates of payments required by enforceable obligations for each
six-month fiscal period as provided in subdivision (m) of Section
34177.

(i) “School entity” means any entity defined as such in
subdivision (f) of Section 95 of the Revenue and Taxation Code.

(j) “Successor agency” means the successor entity to the former
redevelopment agency as described in Section 34173.

(k) “Taxing entities” means cities, counties, a city and county,
special districts, and school entities, as defined in subdivision (f)
of Section 95 of the Revenue and Taxation Code, that receive
passthrough payments and distributions of property taxes pursuant
to the provisions of this part.

(l) “Property taxes” include all property tax revenues, including
those from unitary and supplemental and roll corrections applicable
to tax increment.

(m) “Department” means the Department of Finance unless the
context clearly refers to another state agency.

(n) “Sponsoring entity” means the city, county, or city and
county, or other entity that authorized the creation of each
redevelopment agency.

(o) “Final judicial determination” means a final judicial
determination made by any state court that is not appealed, or by
a court of appellate jurisdiction that is not further appealed, in an
action by any party.

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(p) From January 2, 2014, to June 1, 2018, inclusive, “housing
entity administrative cost allowance” means an amount of up to
1 percent of the property tax allocated to the Redevelopment
Obligation Retirement Fund on behalf of the successor agency for
each applicable fiscal year, but not less than one hundred fifty
thousand dollars ($150,000) per fiscal year.

end insert begin insert

(1) The housing entity administrative cost allowance shall be
listed by the successor agency on the Recognized Obligation
Payment Schedule. Upon approval of the Recognized Obligation
Payment Schedule by the oversight board and the department, the
housing entity administrative cost allowance shall be remitted by
the county auditor-controller on each January 2 and June 1 to the
local housing authority that assumed the housing functions of the
former redevelopment agency pursuant to paragraph (2) or (3) of
subdivision (b) of Section 34176. To assist the county
auditor-controller in this duty, the successor agency shall notify
the county auditor-controller by March 1, 2014, of the identity of
the entity that has assumed the housing functions of the former
redevelopment agency.

end insert begin insert

(2) If there are insufficient moneys in the Redevelopment
Obligations Retirement Fund in a given fiscal year to make the
payment authorized by this subdivision, the unfunded amount may
be listed on each subsequent Recognized Obligation Payment
Schedule until it has been paid in full. In these cases the five-year
time limit on the payments shall not apply.

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begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 34177 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

34177.  

Successor agencies are required to do all of the
following:

(a) Continue to make payments due for enforceable obligations.

(1) On and after February 1, 2012, and until a Recognized
Obligation Payment Schedule becomes operative, only payments
required pursuant to an enforceable obligations payment schedule
shall be made. The initial enforceable obligation payment schedule
shall be the last schedule adopted by the redevelopment agency
under Section 34169. However, payments associated with
obligations excluded from the definition of enforceable obligations
by paragraph (2) of subdivision (d) of Section 34171 shall be
excluded from the enforceable obligations payment schedule and
be removed from the last schedule adopted by the redevelopment
agency under Section 34169 prior to the successor agency adopting
it as its enforceable obligations payment schedule pursuant to this
subdivision. The enforceable obligation payment schedule may
be amended by the successor agency at any public meeting and
shall be subject to the approval of the oversight board as soon as
the board has sufficient members to form a quorum. In recognition
of the fact that the timing of the California Supreme Court’s ruling
in the case California Redevelopment Association v. Matosantos
(2011) 53 Cal.4th 231 delayed the preparation by successor
agencies and the approval by oversight boards of the January 1,
2012, through June 30, 2012, Recognized Obligation Payment
Schedule, a successor agency may amend the Enforceable
Obligation Payment Schedule to authorize the continued payment
of enforceable obligations until the time that the January 1, 2012,
through June 30, 2012, Recognized Obligation Payment Schedule
has been approved by the oversight board and by the Department
of Finance. begin insert The successor agency may utilize reasonable estimates
and projections to support payment amounts for enforceable
obligations if the successor agency submits appropriate supporting
documentation of the basis for the estimate or projection to the
Department of Finance. end insert

(2) The Department of Finance and the Controller shall each
have the authority to require any documents associated with the
enforceable obligations to be provided to them in a manner of their
choosing. Any taxing entity, the department, and the Controller
shall each have standing to file a judicial action to prevent a
violation under this part and to obtain injunctive or other
appropriate relief.

(3) Commencing on the date the Recognized Obligation Payment
Schedule is valid pursuant to subdivision (l), only those payments
listed in the Recognized Obligation Payment Schedule may be
made by the successor agency from the funds specified in the
Recognized Obligation Payment Schedule. In addition, after it
becomes valid, the Recognized Obligation Payment Schedule shall
supersede the Statement of Indebtedness, which shall no longer
be prepared nor have any effect under the Community
Redevelopment Law (Part 1 (commencing with Section 33000)).

(4) Nothing in the act adding this part is to be construed as
preventing a successor agency, with the prior approval of the
oversight board, as described in Section 34179, from making
payments for enforceable obligations from sources other than those
listed in the Recognized Obligation Payment Schedule.

(5) From February 1, 2012, to July 1, 2012, a successor agency
shall have no authority and is hereby prohibited from accelerating
payment or making any lump-sum payments that are intended to
prepay loans unless such accelerated repayments were required
prior to the effective date of this part.

(b) Maintain reserves in the amount required by indentures,
trust indentures, or similar documents governing the issuance of
outstanding redevelopment agency bonds.

(c) Perform obligations required pursuant to any enforceable
obligation.

(d) Remit unencumbered balances of redevelopment agency
funds to the county auditor-controller for distribution to the taxing
entities, including, but not limited to, the unencumbered balance
of the Low and Moderate Income Housing Fund of a former
redevelopment agency. In making the distribution, the county
auditor-controller shall utilize the same methodology for allocation
and distribution of property tax revenues provided in Section
34188.

(e) Dispose of assets and properties of the former redevelopment
agency as directed by the oversight board; provided, however, that
the oversight board may instead direct the successor agency to
transfer ownership of certain assets pursuant to subdivision (a) of
Section 34181. The disposal is to be done expeditiously and in a
manner aimed at maximizing value. Proceeds from asset sales and
related funds that are no longer needed for approved development
projects or to otherwise wind down the affairs of the agency, each
as determined by the oversight board, shall be transferred to the
county auditor-controller for distribution as property tax proceeds
under Section 34188. The requirements of this subdivision shall
not apply to a successor agency that has been issued a finding of
completion by the Department of Finance pursuant to Section
34179.7.

(f) Enforce all former redevelopment agency rights for the
benefit of the taxing entities, including, but not limited to,
continuing to collect loans, rents, and other revenues that were due
to the redevelopment agency.

(g) Effectuate transfer of housing functions and assets to the
appropriate entity designated pursuant to Section 34176.

(h) Expeditiously wind down the affairs of the redevelopment
agency pursuant to the provisions of this part and in accordance
with the direction of the oversight board.

(i) Continue to oversee development of properties until the
contracted work has been completed or the contractual obligations
of the former redevelopment agency can be transferred to other
parties. Bond proceeds shall be used for the purposes for which
bonds were sold unless the purposes can no longer be achieved,
in which case, the proceeds may be used to defease the bonds.

(j) Prepare a proposed administrative budget and submit it to
the oversight board for its approval. The proposed administrative
budget shall include all of the following:

(1) Estimated amounts for successor agency administrative costs
for the upcoming six-month fiscal period.

(2) Proposed sources of payment for the costs identified in
paragraph (1).

(3) Proposals for arrangements for administrative and operations
services provided by a city, county, city and county, or other entity.

(k) Provide administrative cost estimates, from its approved
administrative budget that are to be paid from property tax revenues
deposited in the Redevelopment Property Tax Trust Fund, to the
county auditor-controller for each six-month fiscal period.

(l) (1) Before each six-month fiscal period, prepare a
Recognized Obligation Payment Schedule in accordance with the
requirements of this paragraph. For each recognized obligation,
the Recognized Obligation Payment Schedule shall identify one
or more of the following sources of payment:

(A) Low and Moderate Income Housing Fund.

(B) Bond proceeds.

(C) Reserve balances.

(D) Administrative cost allowance.

(E) The Redevelopment Property Tax Trust Fund, but only to
the extent no other funding source is available or when payment
from property tax revenues is required by an enforceable obligation
or by the provisions of this part.

(F) Other revenue sources, including rents, concessions, asset
sale proceeds, interest earnings, and any other revenues derived
from the former redevelopment agency, as approved by the
oversight board in accordance with this part.

(2) A Recognized Obligation Payment Schedule shall not be
deemed valid unless all of the following conditions have been met:

(A) A Recognized Obligation Payment Schedule is prepared
by the successor agency for the enforceable obligations of the
former redevelopment agency. The initial schedule shall project
the dates and amounts of scheduled payments for each enforceable
obligation for the remainder of the time period during which the
redevelopment agency would have been authorized to obligate
property tax increment had the a redevelopment agency not been
dissolved.

(B) The Recognized Obligation Payment Schedule is submitted
to and duly approved by the oversight board. The successor agency
shall submit a copy of the Recognized Obligation Payment
Schedule to the county administrative officer, the county
auditor-controller, and the Department of Finance at the same time
that the successor agency submits the Recognized Obligation
Payment Schedule to the oversight board for approval.

(C) A copy of the approved Recognized Obligation Payment
Schedule is submitted to the county auditor-controller begin delete and both end delete begin insert , end insert
the Controller’s office begin insert , end insert and the Department of Finance begin insert , end insert and begin delete be end delete begin insert is end insert
posted on the successor agency’s Internet Web site.

(3) The Recognized Obligation Payment Schedule shall be
forward looking to the next six months. The first Recognized
Obligation Payment Schedule shall be submitted to the Controller’s
office and the Department of Finance by April 15, 2012, for the
period of January 1, 2012, to June 30, 2012, inclusive. This
Recognized Obligation Payment Schedule shall include all
payments made by the former redevelopment agency between
January 1, 2012, through January 31, 2012, and shall include all
payments proposed to be made by the successor agency from
February 1, 2012, through June 30, 2012. Former redevelopment
agency enforceable obligation payments due, and reasonable or
necessary administrative costs due or incurred, prior to January 1,
2012, shall be made from property tax revenues received in the
spring of 2011 property tax distribution, and from other revenues
and balances transferred to the successor agency.

(m) The Recognized Obligation Payment Schedule for the period
of January 1, 2013, to June 30, 2013, shall be submitted by the
successor agency, after approval by the oversight board, no later
than September 1, 2012. Commencing with the Recognized
Obligation Payment Schedule covering the period July 1, 2013,
through December 31, 2013, successor agencies shall submit an
oversight board-approved Recognized Obligation Payment
Schedule to the Department of Finance and to the county
auditor-controller no fewer than 90 days before the date of property
tax distribution. The Department of Finance shall make its
determination of the enforceable obligations and the amounts and
funding sources of the enforceable obligations no later than 45
days after the Recognized Obligation Payment Schedule is
submitted. Within five business days of the department’s
determination, a successor agency may request additional review
by the department and an opportunity to meet and confer on
disputed items. The meet and confer period may vary; an untimely
submittal of a Recognized Obligation Payment Schedule may result
in a meet and confer period of less than 30 days. The department
shall notify the successor agency and the county auditor-controllers
as to the outcome of its review at least 15 days before the date of
property tax distribution.

(1) The successor agency shall submit a copy of the Recognized
Obligation Payment Schedule to the Department of Finance
electronically, and the successor agency shall complete the
Recognized Obligation Payment Schedule in the manner provided
for by the department. A successor agency shall be in
noncompliance with this paragraph if it only submits to the
department an electronic message or a letter stating that the
oversight board has approved a Recognized Obligation Payment
Schedule.

(2) If a successor agency does not submit a Recognized
Obligation Payment Schedule by the deadlines provided in this
subdivision, the city, county, or city and county that created the
redevelopment agency shall be subject to a civil penalty equal to
ten thousand dollars ($10,000) per day for every day the schedule
is not submitted to the department. The civil penalty shall be paid
to the county auditor-controller for allocation to the taxing entities
under Section 34183. If a successor agency fails to submit a
Recognized Obligation Payment Schedule by the deadline, any
creditor of the successor agency or the Department of Finance or
any affected taxing entity shall have standing to and may request
a writ of mandate to require the successor agency to immediately
perform this duty. Those actions may be filed only in the County
of Sacramento and shall have priority over other civil matters.
Additionally, if an agency does not submit a Recognized Obligation
Payment Schedule within ten days of the deadline, the maximum
administrative cost allowance for that period shall be reduced by
25 percent.

(3) If a successor agency fails to submit to the department an
oversight board-approved Recognized Obligation Payment
Schedule that complies with all requirements of this subdivision
within five business days of the date upon which the Recognized
Obligation Payment Schedule is to be used to determine the amount
of property tax allocations, the department may determine if any
amount should be withheld by the county auditor-controller for
payments for enforceable obligations from distribution to taxing
entities, pending approval of a Recognized Obligation Payment
Schedule. The county auditor-controller shall distribute the portion
of any of the sums withheld pursuant to this paragraph to the
affected taxing entities in accordance with paragraph (4) of
subdivision (a) of Section 34183 upon notice by the department
that a portion of the withheld balances are in excess of the amount
of enforceable obligations. The county auditor-controller shall
distribute withheld funds to the successor agency only in
accordance with a Recognized Obligation Payment Schedule
approved by the department. County auditor-controllers shall lack
the authority to withhold any other amounts from the allocations
provided for under Section 34183 or 34188 unless required by a
court order.

begin insert

(4) (A) The Recognized Obligation Payment Schedule payments
required pursuant to this subdivision may be scheduled beyond
the existing Recognized Obligation Payment Schedule cycle upon
a showing that a lender requires cash on hand beyond the
Recognized Obligation Payment Schedule cycle.

end insert begin insert

(B) When a payment is shown to be due during the Recognized
Obligation Payment Schedule period, but an invoice or other
billing document has not yet been received, the successor agency
may utilize reasonable estimates and projections to support
payment amounts for enforceable obligations if the successor
agency submits appropriate supporting documentation of the basis
for the estimate or projection to the department.

end insert begin insert

(C) A Recognized Obligation Payment Schedule may also
include appropriation of moneys from bonds subject to passage
during the Recognized Obligation Payment Schedule cycle when
an enforceable obligation requires the agency to issue the bonds
and use the proceeds to pay for project expenditures.

end insert

(n) Cause a postaudit of the financial transactions and records
of the successor agency to be made at least annually by a certified
public accountant.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 34180 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

34180.  

begin insert (a) end insert begin insert   end insert All of the following successor agency actions shall
first be approved by the oversight board:

begin delete

(a)

end delete

begin insert (1) end insert  The establishment of new repayment terms for outstanding
loans where the terms have not been specified prior to the date of
this part. An oversight board shall not have the authority to
reestablish loan agreements between the successor agency and the
city, county, or city and county that formed the redevelopment
agency except as provided in Chapter 9 (commencing with Section
34191.1).

begin delete

(b)

end delete

begin insert (2) end insert  The issuance of bonds or other indebtedness or the pledge
or agreement for the pledge of property tax revenues (formerly tax
increment prior to the effective date of this part) pursuant to
subdivision (a) of Section 34177.5.

begin delete

(c)

end delete

begin insert (3) end insert  Setting aside of amounts in reserves as required by
indentures, trust indentures, or similar documents governing the
issuance of outstanding redevelopment agency bonds.

begin delete

(d)

end delete

begin insert (4) end insert  Merging of project areas.

begin delete

(e)

end delete

begin insert (5) end insert  Continuing the acceptance of federal or state grants, or other
forms of financial assistance from either public or private sources,
if that assistance is conditioned upon the provision of matching
funds, by the successor entity as successor to the former
redevelopment agency, in an amount greater than 5 percent.

begin delete

(f) (1)

end delete

begin insert (6) end insert begin insert   end insert begin insert (A) end insert  If a city, county, or city and county wishes to retain any
properties or other assets for future redevelopment activities,
funded from its own funds and under its own auspices, it must
reach a compensation agreement with the other taxing entities to
provide payments to them in proportion to their shares of the base
property tax, as determined pursuant to Section 34188, for the
value of the property retained.

begin delete

(2)

end delete

begin insert (B) end insert  If no other agreement is reached on valuation of the retained
assets, the value will be the fair market value as of the 2011
property tax lien date as determined by an independent appraiser
approved by the oversight board.

begin delete

(g)

end delete

begin insert (7) end insert  Establishment of the Recognized Obligation Payment
Schedule.

begin delete

(h)

end delete

begin insert (8) end insert  A request by the successor agency to enter into an agreement
with the city, county, or city and county that formed the
redevelopment agency that it is succeeding. An oversight board
shall not have the authority to reestablish loan agreements between
the successor agency and the city, county, or city and county that
formed the redevelopment agency except as provided in Chapter
9 (commencing with Section 34191.1). Any actions to reestablish
any other agreements that are in furtherance of enforceable
obligations, with the city, county, or city and county that formed
the redevelopment agency are invalid until they are included in an
approved and valid Recognized Obligation Payment Schedule.

begin delete

(i)

end delete

begin insert (9) end insert  A request by a successor agency or taxing entity to pledge,
or to enter into an agreement for the pledge of, property tax
revenues pursuant to subdivision (b) of Section 34178.

begin insert

(b) A successor agency shall provide notice to the oversight
board at least 10 days prior to entering into a contract or
agreement for the use or disposition of properties pursuant to
paragraph (2) of subdivision (c) of Section 34191.5. During the
10-day period the oversight board may notify the successor agency
that the board intends to conduct a hearing to determine whether
the contract or agreement is consistent with the successor agency’s
long-range property management plan. The board shall hold the
hearing and issue findings within 30 days after it so notified the
successor agency.

end insert begin delete

(j)

end delete

begin insert (c) end insert  Any document submitted by a successor agency to an
oversight board for approval by any provision of this part shall
also be submitted to the county administrative officer, the county
auditor-controller, and the Department of Finance at the same time
that the successor agency submits the document to the oversight
board.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 34183 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

34183.  

(a) Notwithstanding any other law, from February 1,
2012, to July 1, 2012, and for each fiscal year thereafter, the county
auditor-controller shall, after deducting administrative costs
allowed under Section 34182 and Section 95.3 of the Revenue and
Taxation Code, allocate moneys in each Redevelopment Property
Tax Trust Fund as follows:

(1) Subject to any prior deductions required by subdivision (b),
first, the county auditor-controller shall remit from the
Redevelopment Property Tax Trust Fund to each local agency and
school entity an amount of property tax revenues in an amount
equal to that which would have been received under Section 33401,
33492.140, 33607, 33607.5, 33607.7, or 33676, as those sections
read on January 1, 2011, or pursuant to any passthrough agreement
between a redevelopment agency and a taxing entity that was
entered into prior to January 1, 1994, that would be in force during
that fiscal year, had the redevelopment agency existed at that time.
The amount of the payments made pursuant to this paragraph shall
be calculated solely on the basis of passthrough payment
obligations, existing prior to the effective date of this part and
continuing as obligations of successor entities, shall occur no later
than May 16, 2012, and no later than June 1, 2012, and each
January 2 and June 1 thereafter. Notwithstanding subdivision (e)
of Section 33670, that portion of the taxes in excess of the amount
identified in subdivision (a) of Section 33670, which are
attributable to a tax rate levied by a taxing entity for the purpose
of producing revenues in an amount sufficient to make annual
repayments of the principal of, and the interest on, any bonded
indebtedness for the acquisition or improvement of real property
shall be allocated to, and when collected shall be paid into, the
fund of that taxing entity. The amount of passthrough payments
computed pursuant to this section, including any passthrough
agreements, shall be computed as though the requirement to set
aside funds for the Low and Moderate Income Housing Fund was
still in effect.

(2) Second, on June 1, 2012, and each January 2 and June 1
thereafter, to each successor agency for payments listed in its
Recognized Obligation Payment Schedule for the six-month fiscal
period beginning January 1, 2012, and July 1, 2012, and each
January 2 and June 1 thereafter, in the following order of priority:

(A) Debt service payments scheduled to be made for tax
allocation bonds.

(B) Payments scheduled to be made on revenue bonds, but only
to the extent the revenues pledged for them are insufficient to make
the payments and only if the agency’s tax increment revenues were
also pledged for the repayment of the bonds.

(C) Payments scheduled for other debts and obligations listed
in the Recognized Obligation Payment Schedule that are required
to be paid from former tax increment revenue.

(3) Third, on June 1, 2012, and each January 2 and June 1
thereafter, to each successor agency for the administrative cost
allowance, as defined in Section 34171, for administrative costs
set forth in an approved administrative budget for those payments
required to be paid from former tax increment revenues.

begin insert

(4) Fourth, on March 1, 2014, and each January 2 and June 1
thereafter until June 1, 2018, for the housing entity administrative
cost allowance payable to the local housing authority that has
assumed the housing duties of the former redevelopment agency
pursuant to paragraph (2) or (3) of subdivision (b) of Section
34176.

end insert begin delete

(4) Fourth,

end delete

begin insert (5) end insert begin insert   end insert begin insert Fifth, end insert on June 1, 2012, and each January 2 and June 1
thereafter, any moneys remaining in the Redevelopment Property
Tax Trust Fund after the payments and transfers authorized by
paragraphs (1) to begin delete (3) end delete begin insert (4) end insert , inclusive, shall be distributed to local
agencies and school entities in accordance with Section 34188.

(b) If the successor agency reports, no later than April 1, 2012,
and May 1, 2012, and each December 1 and May 1 thereafter, to
the county auditor-controller that the total amount available to the
successor agency from the Redevelopment Property Tax Trust
Fund allocation to that successor agency’s Redevelopment
Obligation Retirement Fund, from other funds transferred from
each redevelopment agency, and from funds that have or will
become available through asset sales and all redevelopment
operations, are insufficient to fund the payments required by
paragraphs (1) to begin delete (3) end delete begin insert (4) end insert , inclusive, of subdivision (a) in the next
six-month fiscal period, the county auditor-controller shall notify
the Controller and the Department of Finance no later than 10 days
from the date of that notification. The county auditor-controller
shall verify whether the successor agency will have sufficient funds
from which to service debts according to the Recognized
Obligation Payment Schedule and shall report the findings to the
Controller. If the Controller concurs that there are insufficient
funds to pay required debt service, the amount of the deficiency
shall be deducted first from the amount remaining to be distributed
to taxing entities pursuant to paragraph begin delete (4) end delete begin insert (5) end insert , and if that amount
is exhausted, from amounts available for distribution for
administrative costs in begin delete paragraph (3) end delete begin insert paragraphs (3) and (4), with
those amounts in paragraph (3) to be exhausted first end insert . If an agency,
pursuant to the provisions of Section 33492.15, 33492.72, 33607.5,
33671.5, 33681.15, or 33688 or as expressly provided in a
passthrough agreement entered into pursuant to Section 33401,
made passthrough payment obligations subordinate to debt service
payments required for enforceable obligations, funds for servicing
bond debt may be deducted from the amounts for passthrough
payments under paragraph (1), as provided in those sections, but
only to the extent that the amounts remaining to be distributed to
taxing entities pursuant to paragraph begin delete (4) end delete begin insert (5) end insert and the amounts
available for distribution for administrative costs in begin delete paragraph (3) end delete
begin insert paragraphs (3) and (4) end insert have all been exhausted.

(c) The county treasurer may loan any funds from the county
treasury to the Redevelopment Property Tax Trust Fund of the
successor agency for the purpose of paying an item approved on
the Recognized Obligation Payment Schedule at the request of the
Department of Finance that are necessary to ensure prompt
payments of redevelopment agency debts. An enforceable
obligation is created for repayment of those loans.

(d) The Controller may recover the costs of audit and oversight
required under this part from the Redevelopment Property Tax
Trust Fund by presenting an invoice therefor to the county
auditor-controller who shall set aside sufficient funds for and
disburse the claimed amounts prior to making the next distributions
to the taxing entities pursuant to Section 34188. Subject to the
approval of the Director of Finance, the budget of the Controller
may be augmented to reflect the reimbursement, pursuant to
Section 28.00 of the Budget Act.

(e) Within 10 days of each distribution of property tax, the
county auditor-controller shall provide a report to the department
regarding the distribution for each successor agency that includes
information on the total available for allocation, the passthrough
amounts and how they were calculated, the amounts distributed
to successor agencies, and the amounts distributed to taxing entities
in a manner and form specified by the department. This reporting
requirement shall also apply to distributions required under
subdivision (b) of Section 34183.5.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 34191.4 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

34191.4.  

The following provisions shall apply to any successor
agency that has been issued a finding of completion by the
Department of Finance:

(a) All real property and interests in real property identified in
subparagraph (C) of paragraph (5) of subdivision (c) of Section
34179.5 shall be transferred to the Community Redevelopment
Property Trust Fund of the successor agency upon approval by the
Department of Finance of the long-range property management
plan submitted by the successor agency pursuant to subdivision
(b) of Section begin delete 34191.7 end delete begin insert 34191.5 end insert unless that property is subject to
the requirements of any existing enforceable obligation.

(b) (1) Notwithstanding subdivision (d) of Section 34171, upon
application by the successor agency and approval by the oversight
board, loan agreements entered into between the redevelopment
agency and the city, county, or city and county that created begin delete by end delete the
redevelopment agency shall be deemed to be enforceable
obligations provided that the oversight board makes a finding that
the loan was for legitimate redevelopment purposes.

(2) If the oversight board finds that the loan is an enforceable
obligation, the accumulated interest on the remaining principal
amount of the loan shall be recalculated from origination at the
interest rate earned by funds deposited into the Local Agency
Investment Fund. The loan shall be repaid to the city, county, or
city and county in accordance with a defined schedule over a
reasonable term of years at an interest rate not to exceed the interest
rate earned by funds deposited into the Local Agency Investment
Fund. The annual loan repayments provided for in the recognized
begin delete obligations end delete begin insert obligation end insert payment schedules shall be subject to all of
the following limitations:

(A) Loan repayments shall not be made prior to the 2013-14
fiscal year. Beginning in the 2013-14 fiscal year, the maximum
repayment amount authorized each fiscal year for repayments
made pursuant to this subdivision and paragraph (7) of subdivision
(e) of Section 34176 combined shall be equal to one-half of the
increase between the amount distributed to the taxing entities
pursuant to paragraph begin delete (4) end delete begin insert (5) end insert of subdivision (a) of Section 34183
in that fiscal year and the amount distributed to taxing entities
pursuant to that paragraph in the 2012-13 base year begin insert , provided,
however, that calculation of the amount distributed to taxing
entities during the 2012-13 base year shall not include any
amounts distributed to taxing entities pursuant to the due diligence
review process established in Sections 34179.5 to 34179.8,
inclusive end insert . Loan or deferral repayments made pursuant to this
subdivision shall be second in priority to amounts to be repaid
pursuant to paragraph (7) of subdivision (e) of Section 34176.

(B) Repayments received by the city, county begin insert , end insert or city and county
that formed the redevelopment agency shall first be used to retire
any outstanding amounts borrowed and owed to the Low and
Moderate Income Housing Fund of the former redevelopment
agency for purposes of the Supplemental Educational Revenue
Augmentation Fund and shall be distributed to the Low and
Moderate Income Housing Asset Fund established by subdivision
(d) of Section 34176.

(C) Twenty percent of any loan repayment shall be deducted
from the loan repayment amount and shall be transferred to the
Low and Moderate Income Housing Asset Fund, after all
outstanding loans from the Low and Moderate Income Housing
Fund for purposes of the Supplemental Educational Revenue
Augmentation Fund have been paid.

(c) (1) Bond proceeds derived from bonds issued on or before
December 31, 2010, shall be used for the purposes for which the
bonds were sold.

(2) (A) Notwithstanding Section 34177.3 or any other
conflicting provision of law, bond proceeds in excess of the
amounts needed to satisfy approved enforceable obligations shall
thereafter be expended in a manner consistent with the original
bond covenants. Enforceable obligations may be satisfied by the
creation of reserves for projects that are the subject of the
enforceable obligation and that are consistent with the contractual
obligations for those projects, or by expending funds to complete
the projects. An expenditure made pursuant to this paragraph shall
constitute the creation of excess bond proceeds obligations to be
paid from the excess proceeds. Excess bond proceeds obligations
shall be listed separately on the Recognized Obligation Payment
Schedule submitted by the successor agency.

(B) If remaining bond proceeds cannot be spent in a manner
consistent with the bond covenants pursuant to subparagraph (A),
the proceeds shall be used to defease the bonds or to purchase
those same outstanding bonds on the open market for cancellation.

begin insert

(d) The successor agency may amend an existing contract or
agreement related to long-term enforceable obligations, or enter
into a new contract or agreement in furtherance of any existing
contract or agreement, for the purpose of administering projects
in connection with long-term enforceable obligations, if the existing
contract or agreement has been approved by the department as
an enforceable obligation on a Recognized Obligation Payment
Schedule pursuant to subdivision (m) of Section 34177, and the
existing contract or agreement has received a final and conclusive
determination pursuant to subdivision (i) of Section 34177.5.
Additionally, any amendment of an existing contract or agreement,
or any new contract or agreement entered into pursuant to this
subdivision, shall not adversely affect the flow of property tax
revenues or payments made pursuant to paragraph (4) of
subdivision (a) of Section 34183 to the taxing entities, including
the commitment of any new funding from any source beyond that
which was previously authorized in an existing contract or
agreement if that commitment would have an adverse effect on the
flow of property tax revenues or payments made pursuant to
paragraph (4) of subdivision (a).

end insert

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 34191.5 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

34191.5.  

(a) There is hereby established a Community
Redevelopment Property Trust Fund, administered by the successor
agency, to serve as the repository of the former redevelopment
agency’s real properties identified in subparagraph (C) of paragraph
(5) of subdivision (c) of Section 34179.5.

(b) The successor agency shall prepare a long-range property
management plan that addresses the disposition and use of the real
properties of the former redevelopment agency. The report shall
be submitted to the oversight board and the Department of Finance
for approval no later than six months following the issuance to the
successor agency of the finding of completion.

(c) The long-range property management plan shall do all of
the following:

(1) Include an inventory of all properties in the trust. The
inventory shall consist of all of the following information:

(A) The date of the acquisition of the property and the value of
the property at that time, and an estimate of the current value of
the property.

(B) The purpose for which the property was acquired.

(C) Parcel data, including address, lot size, and current zoning
in the former agency redevelopment plan or specific, community,
or general plan.

(D) An estimate of the current value of the parcel including, if
available, any appraisal information.

(E) An estimate of any lease, rental, or any other revenues
generated by the property, and a description of the contractual
requirements for the disposition of those funds.

(F) The history of environmental contamination, including
designation as a brownfield site, any related environmental studies,
and history of any remediation efforts.

(G) A description of the property’s potential for transit-oriented
development and the advancement of the planning objectives of
the successor agency.

(H) A brief history of previous development proposals and
activity, including the rental or lease of property.

(2) Address the use or disposition of all of the properties in the
trust. Permissible uses include the retention of the property for
governmental use pursuant to subdivision (a) of Section 34181,
the retention of the property for future development, the sale of
the property, or the use of the property to fulfill an enforceable
obligation. The plan shall separately identify and list properties in
the trust dedicated to governmental use purposes and properties
retained for purposes of fulfilling an enforceable obligation. With
respect to the use or disposition of all other properties, all of the
following shall apply:

(A) begin insert   end insert begin insert (i) end insert  If the plan directs the use or liquidation of the property
for a project identified in an approved redevelopment plan, the
property shall transfer to the city, county, or city and county.

begin insert

(ii) For purposes of this subparagraph, the term “identified in
an approved redevelopment plan” includes properties listed in a
community plan or a five-year implementation plan.

end insert

(B) If the plan directs the liquidation of the property or the use
of revenues generated from the property, such as lease or parking
revenues, for any purpose other than to fulfill an enforceable
obligation or other than that specified in subparagraph (A), the
proceeds from the sale shall be distributed as property tax to the
taxing entities.

(C) Property shall not be transferred to a successor agency, city,
county, or city and county, unless the long-range property
management plan has been approved by the oversight board and
the Department of Finance.

begin insert

begin insert SEC. 9. end insert   

end insert begin insert

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
this act provides for offsetting savings to local agencies or school
districts that result in no net costs to the local agencies or school
districts, within the meaning of Section 17556 of the Government
Code.

end insert

begin insert

begin insert SEC. 10. end insert   

end insert begin insert

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

end insert begin insert

In order to facilitate the smooth and effective implementation
and completion of the dissolution of redevelopment agencies, it is
necessary that this act go into immediate effect.

end insert

begin delete

SECTION 1.  

Section 14593 of the Welfare and Institutions
Code is amended to read:

14593.  

(a) The department may enter into contracts with public
or private nonprofit organizations for implementation of the PACE
program, and also may enter into separate contracts with PACE
organizations, to fully implement the single state agency
responsibilities assumed by the department in those contracts,
Section 14132.94, and any other state requirement found necessary
by the department to provide comprehensive community-based,
risk-based, and capitated long-term care services to California’s
frail elderly.

(b) The requirements of the PACE model, as provided for
pursuant to Section 1894 (42 U.S.C. Sec. 1395eee) and Section
1934 (42 U.S.C. Sec. 1396u-4) of the federal Social Security Act,
shall not be waived or modified. The requirements that shall not
be waived or modified include all of the following:

(1) The focus on frail elderly qualifying individuals who require
the level of care provided in a nursing facility.

(2) The delivery of comprehensive, integrated acute and
long-term care services.

(3) The interdisciplinary team approach to care management
and service delivery.

(4) Capitated, integrated financing that allows the provider to
pool payments received from public and private programs and
individuals.

(5) The assumption by the provider of full financial risk.

(6) The provision of a PACE benefit package for all participants,
regardless of source of payment, that shall include all of the
following:

(A) All Medicare-covered items and services.

(B) All Medicaid-covered items and services, as specified in
the state’s Medicaid plan.

(C) Other services determined necessary by the interdisciplinary
team to improve and maintain the participant’s overall health status.

(c) Sections 14002, 14005.12, 14005.17, and 14006 shall apply
when determining the eligibility for Medi-Cal of a person receiving
the services from an organization providing services under this
chapter.

(d) Provisions governing the treatment of income and resources
of a married couple, for the purposes of determining the eligibility
of a nursing-facility certifiable or institutionalized spouse, shall
be established so as to qualify for federal financial participation.

(e) (1) The department shall establish capitation rates paid to
each PACE organization at no less than 90 percent of the
fee-for-service equivalent cost, including the department’s cost of
administration, that the department estimates would be payable
for all services covered under the PACE organization contract if
all those services were to be furnished to Medi-Cal beneficiaries
under the fee-for-service Medi-Cal program provided for pursuant
to Chapter 7 (commencing with Section 14000).

(2)  This subdivision shall be implemented only to the extent
that federal financial participation is available.

(f) Contracts under this chapter may be on a nonbid basis and
shall be exempt from Chapter 2 (commencing with Section 10290)
of Part 2 of Division 2 of the Public Contract Code.

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