Amended in Senate August 21, 2014

Amended in Senate July 1, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1450

Introduced by Assembly Member Garcia

(Principal coauthor: Senator Lara)

January 8, 2014

An act to amend begin delete Sections 33670, 34172, and end delete begin insert Section end insert 34183 of the Health and Safety Code, begin delete and to add Section 95.6 to the Revenue and Taxation Code, end delete relating to local government, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

AB 1450, as amended, Garcia. Local government: redevelopment: revenues from property tax override rates.

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. Existing law requires revenues equivalent to those that would have been allocated to each redevelopment agency, had the agency not been dissolved, to be allocated to the Redevelopment Property Tax Trust Fund of each successor agency for making payments on the principal of and interest on loans, and moneys advanced to or indebtedness incurred by the dissolved redevelopment agencies. Existing law requires, from February 1, 2012, to July 1, 2012, inclusive, and for each fiscal year thereafter, the county auditor-controller, after deducting administrative costs, to allocate property tax revenues in each Redevelopment Property Tax Trust Fund in a specified manner.

begin insert This bill would authorize a city or county that levies a property tax rate, approved by the voters of a city or county to make payments in support of pension programs and levied in addition to the general property tax rate, to make a request to an oversight board to prohibit revenues derived from that property tax rate from being deposited into a Redevelopment Property Tax Fund. This bill would authorize an oversight board to deny this request based on substantial evidence that a former redevelopment agency specifically spent, pledged, or otherwise used any revenues derived from the imposition of that property tax rate. end insert This bill, for the 2014-15 fiscal year and each fiscal year thereafter, begin insert if an oversight board does not deny this request, end insert would prohibit any revenues derived from the imposition of begin delete a property tax rate, approved by the voters of a city, county, or city and county to make payments in support of pension programs and levied in addition to the general end delete begin insert that end insert property tax begin delete rate, end delete begin insert rate end insert from being allocated to a Redevelopment Property Tax Trust Fund and would, instead, require these revenues to be allocated to, and when collected to be paid into, the fund of the begin delete city, county, or city and end delete begin insert city or end insert county whose voters approved the begin delete tax unless, following a written request with each Recognized Obligation Payment Schedule cycle from the successor agency to the city, county, or city and county whose voters approved the tax, the city, county, or city and county authorizes the use of the revenues by the successor agency to pay any enforceable obligation, as specified. The bill would require any revenues derived from the imposition of a property tax rate as so described that have been pledged as security for the payment of any indebtedness obligation to be allocated to the successor agency to pay that indebtedness obligation, as specified. end delete begin insert tax. end insert The bill would require all allocations of revenues derived from the imposition of begin delete a end delete begin insert that end insert property tax rate begin delete as so described end delete made by any county auditor-controller prior to July 1, 2014, to be deemed correct, and would prohibit any city, county, begin delete city and county, end delete county auditor-controller, successor agency, or affected taxing entity from being subject to any claim, as specified. begin insert This bill would require, if an oversight board denies a request to prohibit revenues derived from the imposition of a property tax rate, approved by the voters of a city or county to make payments in support of pension programs and levied in addition to the general property tax rate, from being deposited into a Redevelopment Property Tax Trust Fund, the county-auditor controller to allocate moneys from each Redevelopment Property Tax Trust Fund to a city or county that levies a property tax as so described after certain other allocations have been made. end insert

By adding to the duties of local government officials, this bill would impose a state-mandated local program.

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.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

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

Vote: ²⁄₃. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

SECTION 1.  

(a) The Legislature finds and declares all of the
following:

(1) The California Constitution limits property-based tax levies,
with exceptions to these limits only when a local jurisdiction
obtains the approval of its voting electorate to use additional
property-based tax levies for specific purposes approved by the
voting electorate, in accordance with applicable constitutional and
statutory provisions.

(2) With the enactment of Chapter 5 of the 2011-12 First
Extraordinary Session (Assembly Bill 26), the Legislature intended
that, upon dissolution of redevelopment agencies in the State of
California, property taxes that would have been allocated to
redevelopment agencies are no longer deemed tax increment.
Instead, those taxes are deemed property tax revenues and are to
be allocated first to successor agencies to make payments on the
indebtedness incurred by the dissolved redevelopment agencies,
with remaining balances allocated in accordance with applicable
constitutional and statutory provisions.

(3) It is the intent of the Legislature in enacting this act to do
all of the following:

(A) If a redevelopment agency had previously pledged revenues
derived from the imposition of a property tax rate, approved by
the voters of a city, county, or city and county to make payments
in support of pension programs and levied in addition to the
property tax rate limited by subdivision (a) of Section 1 of Article
XIII A of the California Constitution, to pay a portion of the debt
service due on indebtedness incurred by the former redevelopment
agency on an approved recognized obligation payment schedule,
then the successor agency shall continue to pledge those revenues,
in a commensurate rate going forward. For example, if revenues
derived from a pension tax rate approved by the voters of a city,
county, or city and county were pledged to pay up to 25 percent
of the annual debt service for the indebtedness approved in a
recognized obligation payment schedule, the successor agency
shall continue to pay up to 25 percent of the annual debt service
on the indebtedness until maturity. Any and all excess pledged
revenues derived from the pension property tax rate that are not
necessary to pay the debt service on the indebtedness shall be
allocated and paid to the city, county, or city and county whose
voters approved the pension property tax rate.

(B) Ensure that the use of revenues derived from the imposition
of a property tax rate approved by the voters of a city, county, or
city and county, to make payments in support of pension programs
and levied in addition to the property tax rate limited by subdivision
(a) of Section 1 of Article XIII A of the California Constitution,
is consistent with the use approved by the voters of a city, county,
or city and county, once revenues from such property tax rates are
not needed to pay approved indebtedness of a former
redevelopment agency.

(C) Implement the allocation and distribution of voter-approved,
property-based tax revenues for pension programs under the
redevelopment dissolution process in a manner that would have
been consistent with the allocation and distribution of those
revenues had redevelopment agencies not been dissolved, in
accordance with applicable constitutional provisions.

(4) Further, it is the intent of the Legislature that this act not
affect any property tax allocations that occurred prior to July 1,
2014.

begin delete

SEC. 2.  

Section 33670 of the Health and Safety Code is
amended to read:

33670.  

Any redevelopment plan may contain a provision that
taxes, if any, levied upon taxable property in a redevelopment
project each year by or for the benefit of the State of California,
any city, county, city and county, district, or other public
corporation (hereinafter sometimes called “taxing agencies”) after
the effective date of the ordinance approving the redevelopment
plan, shall be divided as follows:

(a)  That portion of the taxes which would be produced by the
rate upon which the tax is levied each year by or for each of the
taxing agencies upon the total sum of the assessed value of the
taxable property in the redevelopment project as shown upon the
assessment roll used in connection with the taxation of that property
by the taxing agency, last equalized prior to the effective date of
the ordinance, shall be allocated to and when collected shall be
paid to the respective taxing agencies as taxes by or for the taxing
agencies on all other property are paid (for the purpose of allocating
taxes levied by or for any taxing agency or agencies which did not
include the territory in a redevelopment project on the effective
date of the ordinance but to which that territory has been annexed
or otherwise included after that effective date, the assessment roll
of the county last equalized on the effective date of the ordinance
shall be used in determining the assessed valuation of the taxable
property in the project on the effective date).

(b)  Except as provided in subdivision (e) or in Section
33492.15, that portion of the levied taxes each year in excess of
that amount shall be allocated to and when collected shall be paid
into a special fund of the redevelopment agency to pay the principal
of and interest on loans, moneys advanced to, or indebtedness
(whether funded, refunded, assumed, or otherwise) incurred by
the redevelopment agency to finance or refinance, in whole or in
part, the redevelopment project. Unless and until the total assessed
valuation of the taxable property in a redevelopment project
exceeds the total assessed value of the taxable property in that
project as shown by the last equalized assessment roll referred to
in subdivision (a), all of the taxes levied and collected upon the
taxable property in the redevelopment project shall be paid to the
respective taxing agencies. When the loans, advances, and
indebtedness, if any, and interest thereon, have been paid, all
moneys thereafter received from taxes upon the taxable property
in the redevelopment project shall be paid to the respective taxing
agencies as taxes on all other property are paid.

(c)  In any redevelopment project in which taxes have been
divided pursuant to this section prior to 1968, located within any
county with total assessed valuation subject to general property
taxes for the 1967-68 fiscal year between two billion dollars
($2,000,000,000) and two billion one hundred million dollars
($2,100,000,000), if the total assessed valuation of taxable property
within the redevelopment project for the 1967-68 fiscal year was
reduced, the total sum of the assessed value of taxable property
used as the basis for apportionment of taxes under subdivision (a)
shall be reduced by 10 percent for the 1968-69 fiscal year and
fiscal years thereafter.

(d)  For the purposes of this section, taxes shall not include taxes
from the supplemental assessment roll levied pursuant to Chapter
3.5 (commencing with Section 75) of Part 0.5 of Division 1 of the
Revenue and Taxation Code for the 1983-84 fiscal year.

(e)  That portion of the taxes in excess of the amount identified
in subdivision (a) which are attributable to a tax rate levied by a
taxing agency 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 agency. This
subdivision shall only apply to taxes levied to repay bonded
indebtedness approved by the voters of the taxing agency on or
after January 1, 1989.

(f) (1) That portion of the taxes in excess of the amount
identified in subdivision (a) which are attributable to revenues
derived from the imposition of a property tax rate, approved by
the voters of a city, county, or city and county to make payments
in support of pension programs and levied in addition to the
property tax rate limited by subdivision (a) of Section 1 of Article
XIII A of the California Constitution, shall not be allocated to the
Redevelopment Property Tax Trust Fund established pursuant to
subdivision (b) of Section 34170.5 but shall be allocated to, and
when collected shall be paid into, the fund of the city, county, or
city and county whose voters approved the tax unless, following
a written request with each Recognized Obligation Payment
Schedule cycle from the successor agency, as defined in
subdivision (j) of Section 34171, to the city, county, or city and
county whose voters approved the tax, the city, county, or city and
county authorizes the use of the revenues from the fund of the city,
county, or city and county by the successor agency to pay any
enforceable obligation, as defined in subdivision (d) of Section
34171, on an approved Recognized Obligation Payment Schedule
pursuant to subdivisions (l) and (m) of Section 34177 and
subdivision (h) of Section 34179.

(2) Subject to the approval of the city, county, or city and county
as provided for in paragraph (1), the amounts necessary to pay
approved enforceable obligations shall be allocated to the successor
agency pursuant to paragraph (2) of subdivision (a) of Section
34183, from revenues derived from the imposition of a property
tax rate, approved by the voters of a city, county, or city and county
to make payments in support of pension programs and levied in
addition to the property tax rate limited by subdivision (a) of
Section 1 of Article XIII A of the California Constitution, but only
after all other moneys deposited in the successor agency’s
Redevelopment Property Tax Trust Fund established pursuant to
subdivision (b) of Section 34170.5 have been exhausted.

(3) Any revenues derived from the imposition of a property tax
rate, approved by the voters of a city, county, or city and county
to make payments in support of pension programs, known as a
pension tax rate, and levied in addition to the property tax rate
limited by subdivision (a) of Section 1 of Article XIII A of the
California Constitution, that have been pledged as security for the
payment of any indebtedness obligation, as defined in subdivision
(e) of Section 34171, shall be allocated to the successor agency,
after all other moneys deposited in the successor agency’s
Redevelopment Property Tax Trust Fund established pursuant to
subdivision (b) of Section 34170.5 have been exhausted, in the
amount necessary to pay that indebtedness obligation for an
applicable Recognized Obligation Payment Schedule cycle, until
such time as that indebtedness obligation has been completely paid
off. Any and all excess pledged revenues derived from the pension
property tax rate that are not necessary to pay the debt service on
the indebtedness shall be allocated and paid to the city, county, or
city and county whose voters approved the pension property tax
rate.

SEC. 3.  

Section 34172 of the Health and Safety Code is
amended to read:

34172.  

(a) (1) All redevelopment agencies and redevelopment
agency components of community development agencies created
under 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)
that were in existence on the effective date of this part are hereby
dissolved and shall no longer exist as a public body, corporate or
politic. Nothing in this part dissolves or otherwise affects the
authority of a community redevelopment commission, other than
in its authority to act as a redevelopment agency, in its capacity
as a housing authority or for any other community development
purpose of the jurisdiction in which it operates. For those other
nonredevelopment purposes, the community development
commission derives its authority solely from federal or local laws,
or from state laws other than the Community Redevelopment Law
(Part 1 (commencing with Section 33000)).

(2) A community in which an agency has been dissolved under
this section may not create a new agency pursuant to Part 1
(commencing with Section 33000), Part 1.5 (commencing with
Section 34000), Part 1.6 (commencing with Section 34050), or
Part 1.7 (commencing with Section 34100). However, a community
in which the agency has been dissolved and the successor entity
has paid off all of the former agency’s enforceable obligations
may create a new agency pursuant to Part 1 (commencing with
Section 33000), Part 1.5 (commencing with Section 34000), Part
1.6 (commencing with Section 34050), or Part 1.7 (commencing
with Section 34100), subject to the tax increment provisions
contained in Chapter 3.5 (commencing with Section 34194.5) of
Part 1.9 (commencing with Section 34192).

(b) All authority to transact business or exercise powers
previously granted under the Community Redevelopment Law
(Part 1 (commencing with Section 33000)) is hereby withdrawn
from the former redevelopment agencies.

(c) Solely for purposes of Section 16 of Article XVI of the
California Constitution, the Redevelopment Property Tax Trust
Fund shall be deemed to be a special fund of the dissolved
redevelopment agency to pay the principal of and interest on loans,
moneys advanced to, or indebtedness, whether funded, refunded,
assumed, or otherwise incurred by the redevelopment agency to
finance or refinance, in whole or in part, the redevelopment projects
of each redevelopment agency dissolved pursuant to this part.

(d) Except as provided in subdivision (c) of Section 34183,
revenues equivalent to those that would have been allocated
pursuant to subdivision (b) of Section 16 of Article XVI of the
California Constitution shall be allocated to the Redevelopment
Property Tax Trust Fund of each successor agency for making
payments on the principal of and interest on loans, and moneys
advanced to or indebtedness incurred by the dissolved
redevelopment agencies. Amounts in excess of those necessary to
pay obligations of the former redevelopment agency shall be
deemed to be property tax revenues within the meaning of
subdivision (a) of Section 1 of Article XIII A of the California
Constitution.

end delete

begin delete SEC. 4. end delete
begin insert SEC. 2. end insert   

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

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 begin delete Code and revenues allocated pursuant to subdivision (c), end delete
begin insert Code, end insert 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) (A) Fourth, on January 2, 2015, and each January 2 and
June 1 thereafter, to a city or county that levies a property tax
rate, approved by the voters of a city or county to make payments
in support of pension programs and levied in addition to the
property tax rate limited by subdivision (a) of Section 1 of Article
XIII A of the California Constitution, an amount of property tax
revenues equal to the amount of revenues derived from the
imposition of that tax rate that were allocated to the Redevelopment
Property Tax Trust Fund for that fiscal period.

end insert begin insert

(B) This paragraph shall apply only if an oversight board denies
a request to prohibit revenues derived from the imposition a
property tax rate described in subparagraph (A) from being
deposited into a Redevelopment Property Tax Trust Fund as
provided by paragraph (2) of subdivision (f).

end insert begin delete

(4)

end delete

begin insert (5) end insert   begin delete Fourth, end delete 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 (3), 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 begin delete paragraph (4) end delete begin insert paragraphs (4) and (5) end insert
of subdivision (a), and if that amount is exhausted, from amounts
available for distribution for administrative costs in paragraph (3)
of subdivision (a). 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) of
subdivision (a), as provided in those sections, but only to the extent
that the amounts remaining to be distributed to taxing entities
pursuant to begin delete paragraph (4) end delete begin insert paragraphs (4) and (5) end insert of subdivision
(a) and the amounts available for distribution for administrative
costs in paragraph (3) of subdivision (a) have all been exhausted.

begin delete

(c) (1) (A) Notwithstanding any other law, for the 2014-15
fiscal year and each fiscal year thereafter, any revenues derived
from the imposition of a property tax rate, approved by the voters
of a city, county, or city and county to make payments in support
of pension programs and levied in addition to the property tax rate
limited by subdivision (a) of Section 1 of Article XIII A of the
California Constitution, shall not be allocated to each
Redevelopment Property Tax Trust Fund and shall instead be
allocated to, and when collected shall be paid into, the fund of the
city, county, or city and county whose voters approved the tax
unless, following a written request with each Recognized
Obligation Payment Schedule cycle from the successor agency to
the city, county, or city and county whose voters approved the tax,
the city, county, or city and county authorizes the use of the
revenues from the fund of the city, county, or city and county by
the successor agency to pay any enforceable obligation, as defined
in subdivision (d) of Section 34171, on an approved Recognized
Obligation Payment Schedule pursuant to subdivisions (l) and (m)
of Section 34177 and subdivision (h) of Section 34179.

(B) Subject to the approval of the city, county, or city and county
as provided for in paragraph (1), the amounts necessary to pay
approved enforceable obligations shall be allocated to the successor
agency pursuant to paragraph (2) of subdivision (a), from revenues
derived from the imposition of a property tax rate, approved by
the voters of the city, county, or city and county to make payments
in support of pension programs and levied in addition to the
property tax rate limited by subdivision (a) of Section 1 of Article
XIII A of the California Constitution, but only after all other
moneys deposited in the successor agency’s Redevelopment
Property Tax Trust Fund have been exhausted.

(C) Any revenues derived from the imposition of a property tax
rate, approved by the voters of a city, county, or city and county
to make payments in support of pension programs and levied in
addition to the property tax rate limited by subdivision (a) of
Section 1 of Article XIII A of the California Constitution, that have
been pledged as security for the payment of any indebtedness
obligation shall be allocated to the successor agency, after all other
moneys deposited in the successor agency’s Redevelopment
Property Tax Trust Fund have been exhausted, in the amount
necessary to pay that indebtedness obligation for an applicable
Recognized Obligation Payment Schedule cycle, until such time
as that indebtedness obligation has been completely paid off. Any
and all excess pledged revenues derived from the pension property
tax rate that are not necessary to pay the debt service on the
indebtedness shall be allocated and paid to the city, county, or city
and county whose voters approved the pension property tax rate.

(2) Notwithstanding any other law, all allocations of revenues
derived from the imposition of a property tax rate, approved by
the voters of a city, county, or city and county to make payments
in support of pension programs and levied in addition to the
property tax rate limited by subdivision (a) of Section 1 of Article
XIII A of the California Constitution, made by any county
auditor-controller prior to July 1, 2014, shall be deemed correct
and shall not be affected by this act. A city, county, city and county,
county auditor-controller, successor agency, or affected taxing
entity shall not be subject to any claim for money, damages, or
reallocated revenues based on any allocation of such revenues
prior to July 1, 2014.

(d)

end delete

begin insert (c) end insert  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.

begin delete

(e)

end delete

begin insert (d) end insert  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.

begin delete

(f)

end delete

begin insert (e) end insert  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

(f) (1) A city or county that levies a property tax rate, approved
by the voters of a city or county to make payments in support of
pension programs and levied in addition to the property tax rate
limited by subdivision (a) of Section 1 of Article XIII A of the
California Constitution, may make a request to an oversight board
to prohibit revenues derived from the imposition of that property
tax rate from being deposited into a Redevelopment Property Tax
Trust Fund.

end insert begin insert

(2) Based on substantial evidence that a former redevelopment
agency specifically spent, pledged, or otherwise used any revenues
derived from the imposition of a property tax rate approved by the
voters of a city or county to make payments in support of pension
programs and levied in addition to the property tax rate limited
by subdivision (a) of Section 1 of Article XIII A of the California
Constitution, an oversight board may deny a request made pursuant
to paragraph (1).

end insert begin insert

(3) Notwithstanding any other law, for the 2014-15 fiscal year
and each fiscal year thereafter, if an oversight board does not deny
a request as provided by paragraph (2), any revenues derived from
the imposition of a property tax rate, approved by the voters of a
city or county to make payments in support of pension programs
and levied in addition to the property tax rate limited by
subdivision (a) of Section 1 of Article XIII A of the California
Constitution, shall not be allocated to a Redevelopment Property
Tax Trust Fund and shall instead be allocated to, and when
collected shall be paid into, the fund of the city or county whose
voters approved the tax.

end insert begin insert

(4) Notwithstanding any other law, all allocations of revenues
derived from the imposition of a property tax rate, approved by
the voters of a city or county to make payments in support of
pension programs and levied in addition to the property tax rate
limited by subdivision (a) of Section 1 of Article XIII A of the
California Constitution, made by any county auditor-controller
prior to July 1, 2014, shall be deemed correct and shall not be
affected by this act. A city, county, county auditor-controller,
successor agency, or affected taxing entity shall not be subject to
any claim for money, damages, or reallocated revenues based on
any allocation of such revenues prior to July 1, 2014.

end insert

begin delete

SEC. 5.  

Section 95.6 is added to the Revenue and Taxation
Code, to read:

95.6.  

Notwithstanding any other law, allocations of revenues
derived from the imposition of a property tax rate, approved by
the voters of a city, county, or city and county to make payments
in support of pension programs and levied in addition to the
property tax rate limited by subdivision (a) of Section 1 of Article
XIII A of the California Constitution, shall be made pursuant to
subdivision (c) of Section 34183 of the Health and Safety Code.

end delete

begin delete SEC. 6. end delete
begin insert SEC. 3. end insert   

begin insert (a) end insert begin insert   end insert No inference shall be drawn from the enactment
of this act with respect to the use, distribution, or allocation of
revenues derived from the imposition of a property tax rate,
approved by the voters of a city, county, or city and county to make
payments in support of pension programs and levied in addition
to the property tax rate limited by subdivision (a) of Section 1 of
Article XIII A of the California Constitution, made by any county
auditor-controller prior to July 1, 2014.

begin insert

(b) The Legislature is aware of City of San Jose, etc. v. Sharma
et al., Court of Appeal Case No. C074539, which is pending
litigation. It is the express intent of the Legislature that no party
in that pending litigation be in any way prejudiced by the passage
of this act. Therefore, the provisions of this act, except the addition
of paragraph (4) to subdivision (a) of Section 34183 of the Health
and Safety Code, shall not apply to the City of San Jose Successor
Agency. Furthermore, this act shall not be indicative of any
legislative intent concerning any issues before the courts in that
litigation, and no provision of this act shall be relied upon in any
way regarding the issues pending before the courts in that
litigation.

end insert

begin delete SEC. 7. end delete
begin insert SEC. 4. end insert   

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.

begin delete SEC. 8. end delete
begin insert SEC. 5. end 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:

In order to avoid underfunded pension programs as a result of
revenues derived from the imposition of a property tax rate,
approved by the voters of a city, county, or city and county to make
payments in support of pension programs and levied in addition
to the property tax rate limited by subdivision (a) of Section 1 of
Article XIII A of the California Constitution, being allocated first
to successor agencies to make payments on the indebtedness
incurred by the dissolved redevelopment agencies, with remaining
balances being allocated in accordance with applicable
constitutional and statutory provisions, instead of being paid
entirely into the fund of the city, county, or city and county whose
voters approved the tax, it is necessary that this act take effect
immediately.