AB 1320, as introduced, Bloom. Redevelopment: successor agencies.
The Community Redevelopment Law authorized the establishment of redevelopment agencies in communities to address the effects of blight, as defined. Existing law dissolved redevelopment agencies as of February 1, 2012, and provides for the designation of successor agencies, as defined. Existing law requires successor agencies to wind down the affairs of the dissolved redevelopment agencies, subject to review by oversight boards. Existing law requires a successor agency to, among other things, continue to make payments due for enforceable obligations, dispose of all assets of the former redevelopment agency, and remit unencumbered balances of redevelopment agency funds, including housing funds, to the county auditor-controller for distribution to taxing entities. Existing law requires the successor agency to dispose of all remaining assets and terminate its existence within one year of the final debt payment, requires any passthrough payment obligations to cease at that time, and prohibits the allocation of property tax to the Redevelopment Property Tax Trust Fund for that agency following termination of the agency.
This bill would eliminate the requirement that the successor agency dispose of all remaining assets and terminate its existence within one year of the final debt payment. The bill would additionally eliminate the requirement that passthrough payment obligations cease at that time, and would eliminate the prohibition on the allocation of property tax to the Redevelopment Property Tax Trust Fund for that agency.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 34187 of the Health and Safety Code is
2amended to read:
(a) begin delete(1)end deletebegin delete end deleteCommencing May 1, 2012, whenever a
4recognized obligation that had been identified in the Recognized
5Payment Obligation Schedule is paid off or retired, either through
6early payment or payment at maturity, the county auditor-controller
7shall distribute to the taxing entities, in accordance with the
8provisions of the Revenue and Taxation Code, all property tax
9revenues that were associated with the payment of the recognized
10obligation.
11(2)
end delete
12begin insert(b)end insert Notwithstanding paragraphbegin delete (1)end deletebegin insert (a)end insert, the Department of
13Finance may authorize a successor agency to retain property tax
14that otherwise would be distributed to affected taxing entities
15pursuant to this subdivision, to the extent the department
16determines the successor agency requires those funds for the
17payment of enforceable obligations. Upon making a determination,
18the department shall provide the county auditor-controller with
19information detailing the amounts that it has authorized the
20successor agency to retain. Upon determining the successor agency
21no longer requires additional funds pursuant to this subdivision,
22the department shall notify the successor agency and the county
23auditor-controller. The county auditor-controller shall then
24distribute the funds in question to the affected taxing entities
in
25accordance with the provisions of the Revenue and Taxation Code.
26(b) When all of the debt of a redevelopment agency has been
27retired or paid off,
the successor agency shall dispose of all
28remaining assets and terminate its existence within one year of the
29final debt payment. When the successor agency is terminated, all
30passthrough payment obligations shall cease and no property tax
31shall be allocated to the Redevelopment Property Tax Trust Fund
32for that agency.
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