AB 1582, as amended, Mullin. Redevelopment: successor agencies: Recognized Obligation Payment Schedule.
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. Existing law requires a successor agency to, among other things, prepare a Recognized Obligation Payment Schedule for payments on enforceable obligations for each 6-month fiscal period.
This bill would revise the timeline for the preparation of the required Recognized Obligation Payment Schedule to provide that the successor agency prepare a schedule for an annual fiscal period.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 34177 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
2amended to read:end insert
Successor agencies are required to do all of the
4following:
5(a) Continue to make payments due for enforceable obligations.
6(1) On and after February 1, 2012, and until a Recognized
7Obligation Payment Schedule becomes operative, only payments
8required pursuant to an enforceable obligations payment schedule
9shall be made. The initial enforceable obligation payment schedule
10shall be the last schedule adopted by the redevelopment agency
11under Section 34169. However, payments associated with
12obligations excluded from the definition of enforceable obligations
13by paragraph (2) of subdivision (d) of Section 34171 shall be
14excluded from the enforceable obligations payment schedule and
15be removed from the last schedule adopted by
the redevelopment
16agency under Section 34169 prior to the successor agency adopting
17it as its enforceable obligations payment schedule pursuant to this
18subdivision. The enforceable obligation payment schedule may
19be amended by the successor agency at any public meeting and
20shall be subject to the approval of the oversight board as soon as
21the board has sufficient members to form a quorum. In recognition
22of the fact that the timing of the California Supreme Court’s ruling
23in the case California Redevelopment Association v. Matosantos
24(2011) 53 Cal.4th 231 delayed the preparation by successor
25agencies and the approval by oversight boards of the January 1,
262012, through June 30, 2012, Recognized Obligation Payment
27Schedule, a successor agency may amend the Enforceable
28Obligation Payment Schedule to authorize the continued payment
29of enforceable obligations until the time that the January 1, 2012,
30through June 30, 2012, Recognized Obligation Payment Schedule
31has been approved by the oversight board and by the
Department
32of Finance. The successor agency may utilize reasonable estimates
33and projections to support payment amounts for enforceable
34obligations if the successor agency submits appropriate supporting
35documentation of the basis for the estimate or projection to the
36Department of Finance and the auditor-controller.
37(2) The Department of Finance and the Controller shall each
38have the authority to require any documents associated with the
P3 1enforceable obligations to be provided to them in a manner of their
2choosing. Any taxing entity, the department, and the Controller
3shall each have standing to file a judicial action to prevent a
4violation under this part and to obtain injunctive or other
5appropriate relief.
6(3) Commencing on the date the Recognized Obligation Payment
7Schedule is valid pursuant to subdivision (l), only those payments
8listed in the Recognized Obligation Payment
Schedule may be
9made by the successor agency from the funds specified in the
10Recognized Obligation Payment Schedule. In addition, after it
11becomes valid, the Recognized Obligation Payment Schedule shall
12supersede the Statement of Indebtedness, which shall no longer
13be prepared nor have any effect under the Community
14Redevelopment Law (Part 1 (commencing with Section 33000)).
15(4) Nothing in the act adding this part is to be construed as
16preventing a successor agency, with the prior approval of the
17oversight board, as described in Section 34179, from making
18payments for enforceable obligations from sources other than those
19listed in the Recognized Obligation Payment Schedule.
20(5) From February 1, 2012, to July 1, 2012, a successor agency
21shall have no authority and is hereby prohibited from accelerating
22payment or making any lump-sum payments that are intended to
23prepay loans unless
such accelerated repayments were required
24prior to the effective date of this part.
25(b) Maintain reserves in the amount required by indentures,
26trust indentures, or similar documents governing the issuance of
27outstanding redevelopment agency bonds.
28(c) Perform obligations required pursuant to any enforceable
29obligation.
30(d) Remit unencumbered balances of redevelopment agency
31funds to the county auditor-controller for distribution to the taxing
32entities, including, but not limited to, the unencumbered balance
33of the Low and Moderate Income Housing Fund of a former
34redevelopment agency. In making the distribution, the county
35auditor-controller shall utilize the same methodology for allocation
36and distribution of property tax revenues provided in Section
3734188.
38(e) Dispose of assets and properties of the former redevelopment
39agency as directed by the oversight board; provided, however, that
40the oversight board may instead direct the successor agency to
P4 1transfer ownership of certain assets pursuant to subdivision (a) of
2Section 34181. The disposal is to be done expeditiously and in a
3manner aimed at maximizing value. Proceeds from asset sales and
4related funds that are no longer needed for approved development
5projects or to otherwise wind down the affairs of the agency, each
6as determined by the oversight board, shall be transferred to the
7county auditor-controller for distribution as property tax proceeds
8under Section 34188. The requirements of this subdivision shall
9not apply to a successor agency that has been issued a finding of
10completion by the Department of Finance pursuant to Section
1134179.7.
12(f) Enforce all former redevelopment agency rights for the
13benefit of the taxing
entities, including, but not limited to,
14continuing to collect loans, rents, and other revenues that were due
15to the redevelopment agency.
16(g) Effectuate transfer of housing functions and assets to the
17appropriate entity designated pursuant to Section 34176.
18(h) Expeditiously wind down the affairs of the redevelopment
19agency pursuant to the provisions of this part and in accordance
20with the direction of the oversight board.
21(i) Continue to oversee development of properties until the
22contracted work has been completed or the contractual obligations
23of the former redevelopment agency can be transferred to other
24parties. Bond proceeds shall be used for the purposes for which
25bonds were sold unless the purposes can no longer be achieved,
26in which case, the proceeds may be used to defease the bonds.
27(j) Prepare a proposed administrative budget and submit it to
28the oversight board for its approval. The proposed administrative
29budget shall include all of the following:
30(1) Estimated amounts for successor agency administrative costs
31for the upcoming six-month fiscal period.
32(2) Proposed sources of payment for the costs identified in
33paragraph (1).
34(3) Proposals for arrangements for administrative and operations
35services provided by a city, county, city and county, or other entity.
36(k) Provide administrative cost estimates, from its approved
37administrative budget that are to be paid from property tax revenues
38deposited in the Redevelopment Property Tax Trust Fund, to the
39county
auditor-controller for each six-month fiscal period.
P5 1(l) (1) Before eachbegin delete six-monthend deletebegin insert annualend insert fiscal period,begin insert to
2correspond with the former agency’s fiscal year,end insert prepare a
3Recognized Obligation Payment Schedule in accordance with the
4requirements of this paragraph. For each recognized obligation,
5the Recognized Obligation Payment Schedule shall identify one
6or more of the following sources of payment:
7(A) Low and Moderate Income Housing Fund.
8(B) Bond proceeds.
9(C) Reserve balances.
10(D) Administrative cost allowance.
11(E) The Redevelopment Property Tax Trust Fund, but only to
12the extent no other funding source is available or when payment
13from property tax revenues is required by an enforceable obligation
14or by the provisions of this part.
15(F) Other revenue sources, including rents, concessions, asset
16sale proceeds, interest earnings, and any other revenues derived
17from the former redevelopment agency, as approved by the
18oversight board in accordance with this part.
19(2) A Recognized Obligation Payment Schedule shall not be
20deemed valid unless all of the following conditions have been met:
21(A) A Recognized Obligation Payment Schedule is prepared
22by the successor agency for the enforceable obligations of the
23former redevelopment agency. The initial schedule shall project
24the dates and amounts of scheduled payments for each enforceable
25obligation for the remainder of the time period during which the
26redevelopment agency would have been authorized to obligate
27property tax increment had the a redevelopment agency not been
28dissolved.
29(B) The Recognized Obligation Payment Schedule is submitted
30to and duly approved by the oversight board. The successor agency
31shall submit a copy of the Recognized Obligation Payment
32Schedule to the county administrative officer, the county
33auditor-controller, and the Department of Finance at the same time
34that the successor agency submits the Recognized Obligation
35Payment Schedule to the oversight board for approval.
36(C) A copy
of the approved Recognized Obligation Payment
37Schedule is submitted to the county auditor-controller, the
38Controller’s office, and the Department of Finance, and is posted
39on the successor agency’s Internet Web site.
P6 1(3) The Recognized Obligation Payment Schedule shall be
2forward looking to the nextbegin delete six monthsend deletebegin insert fiscal year, for fiscal years
3commencing on or after January 1, 2015end insert. The first Recognized
4Obligation Payment Schedule shall be submitted to the Controller’s
5office and the Department of Finance by April 15, 2012, for the
6period of January 1, 2012, to June 30, 2012, inclusive. This
7Recognized Obligation Payment Schedule shall include all
8payments made by the former redevelopment agency between
9January 1, 2012, through January 31, 2012, and shall
include all
10payments proposed to be made by the successor agency from
11February 1, 2012, through June 30, 2012. Former redevelopment
12agency enforceable obligation payments due, and reasonable or
13necessary administrative costs due or incurred, prior to January 1,
142012, shall be made from property tax revenues received in the
15spring of 2011 property tax distribution, and from other revenues
16and balances transferred to the successor agency.
17(m) The Recognized Obligation Payment Schedule for the period
18of January 1, 2013, to June 30, 2013, shall be submitted by the
19successor agency, after approval by the oversight board, no later
20than September 1, 2012. Commencing with the Recognized
21Obligation Payment Schedule covering the period July 1, 2013,
22through December 31, 2013, successor agencies shall submit an
23oversight board-approved Recognized Obligation Payment
24Schedule to the Department of Finance and to the county
25auditor-controller no fewer than 90
days before the date of property
26tax distribution. The Department of Finance shall make its
27determination of the enforceable obligations and the amounts and
28funding sources of the enforceable obligations no later than 45
29days after the Recognized Obligation Payment Schedule is
30submitted. Within five business days of the department’s
31determination, a successor agency may request additional review
32by the department and an opportunity to meet and confer on
33disputed items. The meet and confer period may vary; an untimely
34submittal of a Recognized Obligation Payment Schedule may result
35in a meet and confer period of less than 30 days. The department
36shall notify the successor agency and the county auditor-controllers
37as to the outcome of its review at least 15 days before the date of
38property tax distribution.
39(1) The successor agency shall submit a copy of the Recognized
40Obligation Payment Schedule to the Department of Finance
P7 1electronically, and
the successor agency shall complete the
2Recognized Obligation Payment Schedule in the manner provided
3for by the department. A successor agency shall be in
4noncompliance with this paragraph if it only submits to the
5department an electronic message or a letter stating that the
6oversight board has approved a Recognized Obligation Payment
7Schedule.
8(2) If a successor agency does not submit a Recognized
9Obligation Payment Schedule by the deadlines provided in this
10subdivision, the city, county, or city and county that created the
11redevelopment agency shall be subject to a civil penalty equal to
12ten thousand dollars ($10,000) per day for every day the schedule
13is not submitted to the department. The civil penalty shall be paid
14to the county auditor-controller for allocation to the taxing entities
15under Section 34183. If a successor agency fails to submit a
16Recognized Obligation Payment Schedule by the deadline, any
17creditor of the successor agency
or the Department of Finance or
18any affected taxing entity shall have standing to and may request
19a writ of mandate to require the successor agency to immediately
20perform this duty. Those actions may be filed only in the County
21of Sacramento and shall have priority over other civil matters.
22Additionally, if an agency does not submit a Recognized Obligation
23Payment Schedule within 10 days of the deadline, the maximum
24administrative cost allowance for that period shall be reduced by
2525 percent.
26(3) If a successor agency fails to submit to the department an
27oversight board-approved Recognized Obligation Payment
28Schedule that complies with all requirements of this subdivision
29within five business days of the date upon which the Recognized
30Obligation Payment Schedule is to be used to determine the amount
31of property tax allocations, the department may determine if any
32amount should be withheld by the county auditor-controller for
33payments for
enforceable obligations from distribution to taxing
34entities, pending approval of a Recognized Obligation Payment
35Schedule. The county auditor-controller shall distribute the portion
36of any of the sums withheld pursuant to this paragraph to the
37affected taxing entities in accordance with paragraph (4) of
38subdivision (a) of Section 34183 upon notice by the department
39that a portion of the withheld balances are in excess of the amount
40of enforceable obligations. The county auditor-controller shall
P8 1distribute withheld funds to the successor agency only in
2accordance with a Recognized Obligation Payment Schedule
3approved by the department. County auditor-controllers shall lack
4the authority to withhold any other amounts from the allocations
5provided for under Section 34183 or 34188 unless required by a
6court order.
7(4) (A) The Recognized Obligation Payment Schedule payments
8required pursuant to this subdivision may be
scheduled beyond
9the existing Recognized Obligation Payment Schedule cycle upon
10a showing that a lender requires cash on hand beyond the
11Recognized Obligation Payment Schedule cycle.
12(B) When a payment is shown to be due during the Recognized
13Obligation Payment Schedule period, but an invoice or other billing
14document has not yet been received, the successor agency may
15utilize reasonable estimates and projections to support payment
16amounts for enforceable obligations if the successor agency submits
17appropriate supporting documentation of the basis for the estimate
18or projection to the department and the auditor-controller.
19(C) A Recognized Obligation Payment Schedule may also
20include appropriation of moneys from bonds subject to passage
21during the Recognized Obligation Payment Schedule cycle when
22an enforceable obligation requires the agency to issue the bonds
23and use the proceeds
to pay for project expenditures.
24(n) Cause a postaudit of the financial transactions and records
25of the successor agency to be made at least annually by a certified
26public accountant.
Section 34177 of the Health and Safety Code is
28amended to read:
Successor agencies are required to do all of the
30following:
31(a) Continue to make payments due for enforceable obligations.
32(1) On and after February 1, 2012, and until a Recognized
33Obligation Payment Schedule becomes operative, only payments
34required pursuant to an enforceable obligations payment schedule
35shall be made. The initial enforceable obligation payment schedule
36shall be the last schedule adopted by the redevelopment agency
37under Section 34169. However, payments associated with
38obligations excluded from the definition of enforceable obligations
39by paragraph (2) of subdivision (d) of Section 34171 shall be
40excluded from the enforceable obligations payment schedule and
P9 1be removed from the last schedule adopted by the
redevelopment
2agency under Section 34169 prior to the successor agency adopting
3it as its enforceable obligations payment schedule pursuant to this
4subdivision. The enforceable obligation payment schedule may
5be amended by the successor agency at any public meeting and
6shall be subject to the approval of the oversight board as soon as
7the board has sufficient members to form a quorum. In recognition
8of the fact that the timing of the California Supreme Court’s ruling
9in the case California Redevelopment Association v. Matosantos
10(2011) 53 Cal.4th 231 delayed the preparation by successor
11agencies and the approval by oversight boards of the January 1,
122012, through June 30, 2012, Recognized Obligation Payment
13Schedule, a successor agency may amend the Enforceable
14Obligation Payment Schedule to authorize the continued payment
15of enforceable obligations until the time that the January 1, 2012,
16through June 30, 2012, Recognized Obligation Payment Schedule
17has been approved by the oversight board and by the
Department
18of Finance.
19(2) The Department of Finance and the Controller shall each
20have the authority to require any documents associated with the
21enforceable obligations to be provided to them in a manner of their
22choosing. Any taxing entity, the department, and the Controller
23shall each have standing to file a judicial action to prevent a
24violation under this part and to obtain injunctive or other
25appropriate relief.
26(3) Commencing on the date the Recognized Obligation Payment
27Schedule is valid pursuant to subdivision (l), only those payments
28listed in the Recognized Obligation Payment Schedule may be
29made by the successor agency from the funds specified in the
30Recognized Obligation Payment Schedule. In addition, after it
31becomes valid, the Recognized Obligation Payment Schedule shall
32supersede the Statement of Indebtedness, which shall no longer
33be prepared nor have any effect
under the Community
34Redevelopment Law (Part 1 (commencing with Section 33000)).
35(4) Nothing in the act adding this part is to be construed as
36preventing a successor agency, with the prior approval of the
37oversight board, as described in Section 34179, from making
38payments for enforceable obligations from sources other than those
39listed in the Recognized Obligation Payment Schedule.
P10 1(5) From February 1, 2012, to July 1, 2012, a successor agency
2shall have no authority and is hereby prohibited from accelerating
3payment or making any lump-sum payments that are intended to
4prepay loans unless such accelerated repayments were required
5prior to the effective date of this part.
6(b) Maintain reserves in the amount required by indentures,
7trust indentures, or similar documents governing the issuance of
8outstanding
redevelopment agency bonds.
9(c) Perform obligations required pursuant to any enforceable
10obligation.
11(d) Remit unencumbered balances of redevelopment agency
12funds to the county auditor-controller for distribution to the taxing
13entities, including, but not limited to, the unencumbered balance
14of the Low and Moderate Income Housing Fund of a former
15redevelopment agency. In making the distribution, the county
16auditor-controller shall utilize the same methodology for allocation
17and distribution of property tax revenues provided in Section
1834188.
19(e) Dispose of assets and properties of the former redevelopment
20agency as directed by the oversight board; provided, however, that
21the oversight board may instead direct the successor agency to
22transfer ownership of certain assets pursuant to subdivision (a) of
23Section 34181.
The disposal is to be done expeditiously and in a
24manner aimed at maximizing value. Proceeds from asset sales and
25related funds that are no longer needed for approved development
26projects or to otherwise wind down the affairs of the agency, each
27as determined by the oversight board, shall be transferred to the
28county auditor-controller for distribution as property tax proceeds
29under Section 34188. The requirements of this subdivision shall
30not apply to a successor agency that has been issued a finding of
31completion by the Department of Finance pursuant to Section
3234179.7.
33(f) Enforce all former redevelopment agency rights for the
34benefit of the taxing entities, including, but not limited to,
35continuing to collect loans, rents, and other revenues that were due
36to the redevelopment agency.
37(g) Effectuate transfer of housing functions and assets to the
38appropriate entity designated
pursuant to Section 34176.
P11 1(h) Expeditiously wind down the affairs of the redevelopment
2agency pursuant to the provisions of this part and in accordance
3with the direction of the oversight board.
4(i) Continue to oversee development of properties until the
5contracted work has been completed or the contractual obligations
6of the former redevelopment agency can be transferred to other
7parties. Bond proceeds shall be used for the purposes for which
8bonds were sold unless the purposes can no longer be achieved,
9in which case, the proceeds may be used to defease the bonds.
10(j) Prepare a proposed administrative budget and submit it to
11the oversight board for its approval. The proposed administrative
12budget shall include all of the following:
13(1) Estimated
amounts for successor agency administrative costs
14for the upcoming six-month fiscal period.
15(2) Proposed sources of payment for the costs identified in
16paragraph (1).
17(3) Proposals for arrangements for administrative and operations
18services provided by a city, county, city and county, or other entity.
19(k) Provide administrative cost estimates, from its approved
20administrative budget that are to be paid from property tax revenues
21deposited in the Redevelopment Property Tax Trust Fund, to the
22county auditor-controller for each six-month fiscal period.
23(l) (1) Before each
annual fiscal period, prepare a Recognized
24Obligation Payment Schedule in accordance with the requirements
25of this paragraph. For each recognized obligation, the Recognized
26Obligation Payment Schedule shall identify one or more of the
27following sources of payment:
28(A) Low and Moderate Income Housing Fund.
29(B) Bond proceeds.
30(C) Reserve balances.
31(D) Administrative cost allowance.
32(E) The Redevelopment Property Tax Trust Fund, but only to
33the extent no other funding source is available or when payment
34from property tax revenues is required by an enforceable obligation
35or by this part.
36(F) Other revenue sources, including rents, concessions, asset
37sale proceeds, interest earnings, and any other revenues derived
38from the former redevelopment agency, as approved by the
39oversight board in accordance with this part.
P12 1(2) A Recognized Obligation Payment Schedule shall not be
2deemed valid unless all of the following conditions have been met:
3(A) A Recognized Obligation Payment Schedule is prepared
4by the successor agency for the enforceable obligations of the
5former redevelopment agency. The initial schedule shall project
6the dates and amounts of scheduled payments for each enforceable
7obligation for the remainder of the time period during which the
8redevelopment agency would have been authorized to obligate
9property tax increment had the redevelopment agency not been
10dissolved.
11(B) The
Recognized Obligation Payment Schedule is submitted
12to and duly approved by the oversight board. The successor agency
13shall submit a copy of the Recognized Obligation Payment
14Schedule to the county administrative officer, the county
15auditor-controller, and the Department of Finance at the same time
16that the successor agency submits the Recognized Obligation
17Payment Schedule to the oversight board for approval.
18(C) A copy of the approved Recognized Obligation Payment
19Schedule is submitted to the county auditor-controller and both
20the Controller’s office and the Department of Finance and be posted
21on the successor agency’s Internet Web site.
22(3) The Recognized Obligation Payment Schedule shall be
23forward looking to the next
year for the period commencing on
24January 1, 2015. The first Recognized Obligation Payment
25Schedule shall be submitted to the Controller’s office and the
26Department of Finance by April 15, 2012, for the period of January
271, 2012, to June 30, 2012, inclusive. This Recognized Obligation
28Payment Schedule shall include all payments made by the former
29redevelopment agency between January 1, 2012, through January
3031, 2012, and shall include all payments proposed to be made by
31the successor agency from February 1, 2012, through June 30,
322012. Former redevelopment agency enforceable obligation
33payments due, and reasonable or necessary administrative costs
34due or incurred, prior to January 1, 2012, shall be made from
35property tax revenues received in the spring of 2011 property tax
36distribution, and from other revenues and balances transferred to
37the successor agency.
38(m) The Recognized Obligation Payment Schedule for the period
39
of January 1, 2013, to June 30, 2013, shall be submitted by the
40successor agency, after approval by the oversight board, no later
P13 1than September 1, 2012. Commencing with the Recognized
2Obligation Payment Schedule covering the period July 1, 2013,
3through December 31, 2013, successor agencies shall submit an
4oversight board-approved Recognized Obligation Payment
5Schedule to the Department of Finance and to the county
6auditor-controller no fewer than 90 days before the date of property
7tax distribution. The Department of Finance shall make its
8determination of the enforceable obligations and the amounts and
9funding sources of the enforceable obligations no later than 45
10days after the Recognized Obligation Payment Schedule is
11submitted. Within five business days of the department’s
12determination, a successor agency may request additional review
13by the department and an opportunity to meet and confer on
14disputed items. The meet and confer period may vary; an untimely
15submittal of a Recognized Obligation Payment
Schedule may result
16in a meet and confer period of less than 30 days. The department
17shall notify the successor agency and the county auditor-controllers
18as to the outcome of its review at least 15 days before the date of
19property tax distribution.
20(1) The successor agency shall submit a copy of the Recognized
21Obligation Payment Schedule to the Department of Finance
22electronically, and the successor agency shall complete the
23Recognized Obligation Payment Schedule in the manner provided
24for by the department. A successor agency shall be in
25noncompliance with this paragraph if it only submits to the
26department an electronic message or a letter stating that the
27oversight board has approved a Recognized Obligation Payment
28Schedule.
29(2) If a successor agency does not submit a Recognized
30Obligation Payment Schedule by the deadlines provided in this
31subdivision, the city, county, or city
and county that created the
32redevelopment agency shall be subject to a civil penalty equal to
33ten thousand dollars ($10,000) per day for every day the schedule
34is not submitted to the department. The civil penalty shall be paid
35to the county auditor-controller for allocation to the taxing entities
36under Section 34183. If a successor agency fails to submit a
37Recognized Obligation Payment Schedule by the deadline, any
38creditor of the successor agency or the Department of Finance or
39any affected taxing entity shall have standing to and may request
40a writ of mandate to require the successor agency to immediately
P14 1perform this duty. Those actions may be filed only in the County
2of Sacramento and shall have priority over other civil matters.
3Additionally, if an agency does not submit a Recognized Obligation
4Payment Schedule within 10 days of the deadline, the maximum
5administrative cost allowance for that period shall be reduced by
625 percent.
7(3) If
a successor agency fails to submit to the department an
8oversight board-approved Recognized Obligation Payment
9Schedule that complies with all requirements of this subdivision
10within five business days of the date upon which the Recognized
11Obligation Payment Schedule is to be used to determine the amount
12of property tax allocations, the department may determine if any
13amount should be withheld by the county auditor-controller for
14payments for enforceable obligations from distribution to taxing
15entities, pending approval of a Recognized Obligation Payment
16Schedule. The county auditor-controller shall distribute the portion
17of any of the sums withheld pursuant to this paragraph to the
18affected taxing entities in accordance with paragraph (4) of
19subdivision (a) of Section 34183 upon notice by the department
20that a portion of the withheld balances are in excess of the amount
21of enforceable obligations. The county auditor-controller shall
22distribute withheld funds to the successor agency only in
23accordance with a
Recognized Obligation Payment Schedule
24approved by the department. County auditor-controllers shall lack
25the authority to withhold any other amounts from the allocations
26provided for under Section 34183 or 34188, unless required by a
27court order.
28(n) Cause a postaudit of the financial transactions and records
29of the successor agency to be made at least annually by a certified
30public accountant.
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