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 wouldbegin insert, commencing January 1, 2016,end insert revise the timeline for the preparation of the required Recognized Obligation Payment Schedule to provide that the successor agency prepare a schedule for a 12-month fiscal period,begin insert with the first of these periods beginning July 1, 2016,end insert and would authorize the Recognized Obligation Payment Schedule to be amended by the oversight board during a 12-month fiscal period if the amendment is approved at least 90 days before the date of the next property tax distribution.
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
P3 1of Finance. The successor agency may utilize reasonable estimates
2and projections to support payment amounts for enforceable
3obligations if the successor agency submits appropriate supporting
4documentation of the basis for the estimate or projection to the
5Department of Finance and the auditor-controller.
6(2) The Department of Finance and the Controller shall each
7have the authority to require any documents associated with the
8enforceable obligations to be provided to them in a manner of their
9choosing. Any taxing entity, the department, and the Controller
10shall each have standing to file a judicial action to prevent a
11violation under this part and to obtain injunctive or other
12appropriate relief.
13(3) Commencing on the date the Recognized Obligation Payment
14Schedule is valid pursuant to subdivision (l), only those payments
15listed in the Recognized Obligation Payment
Schedule may be
16made by the successor agency from the funds specified in the
17Recognized Obligation Payment Schedule. In addition, after it
18becomes valid, the Recognized Obligation Payment Schedule shall
19supersede the Statement of Indebtedness, which shall no longer
20be prepared nor have any effect under the Community
21Redevelopment Law (Part 1 (commencing with Section 33000)).
22(4) Nothing in the act adding this part is to be construed as
23preventing a successor agency, with the prior approval of the
24oversight board, as described in Section 34179, from making
25payments for enforceable obligations from sources other than those
26listed in the Recognized Obligation Payment Schedule.
27(5) From February 1, 2012, to July 1, 2012, a successor agency
28shall have no authority and is hereby prohibited from accelerating
29payment or making any lump-sum payments that are intended to
30prepay loans unless
such accelerated repayments were required
31prior to the effective date of this part.
32(b) Maintain reserves in the amount required by indentures,
33trust indentures, or similar documents governing the issuance of
34outstanding redevelopment agency bonds.
35(c) Perform obligations required pursuant to any enforceable
36obligation.
37(d) Remit unencumbered balances of redevelopment agency
38funds to the county auditor-controller for distribution to the taxing
39entities, including, but not limited to, the unencumbered balance
40of the Low and Moderate Income Housing Fund of a former
P4 1redevelopment agency. In making the distribution, the county
2auditor-controller shall utilize the same methodology for allocation
3and distribution of property tax revenues provided in Section
434188.
5(e) Dispose of assets and properties of the former redevelopment
6agency as directed by the oversight board; provided, however, that
7the oversight board may instead direct the successor agency to
8transfer ownership of certain assets pursuant to subdivision (a) of
9Section 34181. The disposal is to be done expeditiously and in a
10manner aimed at maximizing value. Proceeds from asset sales and
11related funds that are no longer needed for approved development
12projects or to otherwise wind down the affairs of the agency, each
13as determined by the oversight board, shall be transferred to the
14county auditor-controller for distribution as property tax proceeds
15under Section 34188. The requirements of this subdivision shall
16not apply to a successor agency that has been issued a finding of
17completion by the Department of Finance pursuant to Section
1834179.7.
19(f) Enforce all former redevelopment agency rights for the
20benefit of the taxing
entities, including, but not limited to,
21continuing to collect loans, rents, and other revenues that were due
22to the redevelopment agency.
23(g) Effectuate transfer of housing functions and assets to the
24appropriate entity designated pursuant to Section 34176.
25(h) Expeditiously wind down the affairs of the redevelopment
26agency pursuant to the provisions of this part and in accordance
27with the direction of the oversight board.
28(i) Continue to oversee development of properties until the
29contracted work has been completed or the contractual obligations
30of the former redevelopment agency can be transferred to other
31parties. Bond proceeds shall be used for the purposes for which
32bonds were sold unless the purposes can no longer be achieved,
33in which case, the proceeds may be used to defease the bonds.
34(j) Prepare a proposed administrative budget and submit it to
35the oversight board for its approval. The proposed administrative
36budget shall include all of the following:
37(1) Estimated amounts for successor agency administrative costs
38for the upcoming six-month fiscal period.
39(2) Proposed sources of payment for the costs identified in
40paragraph (1).
P5 1(3) Proposals for arrangements for administrative and operations
2services provided by a city, county, city and county, or other entity.
3(k) Provide administrative cost estimates, from its approved
4administrative budget that are to be paid from property tax revenues
5deposited in the Redevelopment Property Tax Trust Fund, to the
6county
auditor-controller for each six-month fiscal period.
7(l) (1) Before each six-month fiscal period, prepare a
8Recognized Obligation Payment Schedule in accordance with the
9requirements of this paragraph. For each recognized obligation,
10the Recognized Obligation Payment Schedule shall identify one
11or more of the following sources of payment:
12(A) Low and Moderate Income Housing Fund.
13(B) Bond proceeds.
14(C) Reserve balances.
15(D) Administrative cost allowance.
16(E) The Redevelopment Property Tax Trust Fund, but only to
17the extent no other funding source is available or when payment
18from property tax revenues is
required by an enforceable obligation
19or by the provisions of this part.
20(F) Other revenue sources, including rents, concessions, asset
21sale proceeds, interest earnings, and any other revenues derived
22from the former redevelopment agency, as approved by the
23oversight board in accordance with this part.
24(2) A Recognized Obligation Payment Schedule shall not be
25deemed valid unless all of the following conditions have been met:
26(A) A Recognized Obligation Payment Schedule is prepared
27by the successor agency for the enforceable obligations of the
28former redevelopment agency. The initial schedule shall project
29the dates and amounts of scheduled payments for each enforceable
30obligation for the remainder of the time period during which the
31redevelopment agency would have been authorized to obligate
32property tax increment
had the a redevelopment agency not been
33dissolved.
34(B) The Recognized Obligation Payment Schedule is submitted
35to and duly approved by the oversight board. The successor agency
36shall submit a copy of the Recognized Obligation Payment
37Schedule to the county administrative officer, the county
38auditor-controller, and the Department of Finance at the same time
39that the successor agency submits the Recognized Obligation
40Payment Schedule to the oversight board for approval.
P6 1(C) A copy of the approved Recognized Obligation Payment
2Schedule is submitted to the county auditor-controller, the
3Controller’s office, and the Department of Finance, and is posted
4on the successor agency’s Internet Web site.
5(3) The Recognized Obligation Payment Schedule shall be
6forward looking to the next six months. The first Recognized
7Obligation
Payment Schedule shall be submitted to the Controller’s
8office and the Department of Finance by April 15, 2012, for the
9period of January 1, 2012, to June 30, 2012, inclusive. This
10Recognized Obligation Payment Schedule shall include all
11payments made by the former redevelopment agency between
12January 1, 2012, through January 31, 2012, and shall include all
13payments proposed to be made by the successor agency from
14February 1, 2012, through June 30, 2012. Former redevelopment
15agency enforceable obligation payments due, and reasonable or
16necessary administrative costs due or incurred, prior to January 1,
172012, shall be made from property tax revenues received in the
18spring of 2011 property tax distribution, and from other revenues
19and balances transferred to the successor agency.
20(m) The Recognized Obligation Payment Schedule for the period
21of January 1, 2013, to June 30, 2013, shall be submitted by the
22successor agency, after approval by the
oversight board, no later
23than September 1, 2012. Commencing with the Recognized
24Obligation Payment Schedule covering the period July 1, 2013,
25through December 31, 2013, successor agencies shall submit an
26oversight board-approved Recognized Obligation Payment
27Schedule to the Department of Finance and to the county
28auditor-controller no fewer than 90 days before the date of property
29tax distribution. The Department of Finance shall make its
30determination of the enforceable obligations and the amounts and
31funding sources of the enforceable obligations no later than 45
32days after the Recognized Obligation Payment Schedule is
33submitted. Within five business days of the department’s
34determination, a successor agency may request additional review
35by the department and an opportunity to meet and confer on
36disputed items. The meet and confer period may vary; an untimely
37submittal of a Recognized Obligation Payment Schedule may result
38in a meet and confer period of less than 30 days. The department
39shall notify the
successor agency and the county auditor-controllers
P7 1as to the outcome of its review at least 15 days before the date of
2property tax distribution.
3(1) The successor agency shall submit a copy of the Recognized
4Obligation Payment Schedule to the Department of Finance
5electronically, and the successor agency shall complete the
6Recognized Obligation Payment Schedule in the manner provided
7for by the department. A successor agency shall be in
8noncompliance with this paragraph if it only submits to the
9department an electronic message or a letter stating that the
10oversight board has approved a Recognized Obligation Payment
11Schedule.
12(2) If a successor agency does not submit a Recognized
13Obligation Payment Schedule by the deadlines provided in this
14subdivision, the city, county, or city and county that created the
15redevelopment agency shall be subject to a civil penalty equal to
16ten
thousand dollars ($10,000) per day for every day the schedule
17is not submitted to the department. The civil penalty shall be paid
18to the county auditor-controller for allocation to the taxing entities
19under Section 34183. If a successor agency fails to submit a
20Recognized Obligation Payment Schedule by the deadline, any
21creditor of the successor agency or the Department of Finance or
22any affected taxing entity shall have standing to and may request
23a writ of mandate to require the successor agency to immediately
24perform this duty. Those actions may be filed only in the County
25of Sacramento and shall have priority over other civil matters.
26Additionally, if an agency does not submit a Recognized Obligation
27Payment Schedule within 10 days of the deadline, the maximum
28administrative cost allowance for that period shall be reduced by
2925 percent.
30(3) If a successor agency fails to submit to the department an
31oversight board-approved Recognized
Obligation Payment
32Schedule that complies with all requirements of this subdivision
33within five business days of the date upon which the Recognized
34Obligation Payment Schedule is to be used to determine the amount
35of property tax allocations, the department may determine if any
36amount should be withheld by the county auditor-controller for
37payments for enforceable obligations from distribution to taxing
38entities, pending approval of a Recognized Obligation Payment
39Schedule. The county auditor-controller shall distribute the portion
40of any of the sums withheld pursuant to this paragraph to the
P8 1affected taxing entities in accordance with paragraph (4) of
2subdivision (a) of Section 34183 upon notice by the department
3that a portion of the withheld balances are in excess of the amount
4of enforceable obligations. The county auditor-controller shall
5distribute withheld funds to the successor agency only in
6accordance with a Recognized Obligation Payment Schedule
7approved by the department. County
auditor-controllers shall lack
8the authority to withhold any other amounts from the allocations
9provided for under Section 34183 or 34188 unless required by a
10court order.
11(4) (A) The Recognized Obligation Payment Schedule payments
12required pursuant to this subdivision may be scheduled beyond
13the existing Recognized Obligation Payment Schedule cycle upon
14a showing that a lender requires cash on hand beyond the
15Recognized Obligation Payment Schedule cycle.
16(B) When a payment is shown to be due during the Recognized
17Obligation Payment Schedule period, but an invoice or other billing
18document has not yet been received, the successor agency may
19utilize reasonable estimates and projections to support payment
20amounts for enforceable obligations if the successor agency submits
21appropriate supporting documentation of the basis for the estimate
22or projection to the
department and the auditor-controller.
23(C) A Recognized Obligation Payment Schedule may also
24include appropriation of moneys from bonds subject to passage
25during the Recognized Obligation Payment Schedule cycle when
26an enforceable obligation requires the agency to issue the bonds
27and use the proceeds to pay for project expenditures.
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.
31(o) This section shall remain in effect only until July 1, 2016,
32and as of that date is repealed.
begin insertSection 34177 is added to the end insertbegin insertHealth and Safety Codeend insertbegin insert,
34to read:end insert
Successor agencies are required to do all of the
36following:
37(a) Continue to make payments due for enforceable obligations.
38(1) On and after February 1, 2012, and until a Recognized
39Obligation Payment Schedule becomes operative, only payments
40required pursuant to an enforceable obligations payment schedule
P9 1shall be made. The initial enforceable obligation payment schedule
2shall be the last schedule adopted by the redevelopment agency
3under Section 34169. However, payments associated with
4obligations excluded from the definition of enforceable obligations
5by paragraph (2) of subdivision (d) of Section 34171 shall be
6excluded from the enforceable
obligations payment schedule and
7be removed from the last schedule adopted by the redevelopment
8agency under Section 34169 prior to the successor agency adopting
9it as its enforceable obligations payment schedule pursuant to this
10subdivision. The enforceable obligation payment schedule may be
11amended by the successor agency at any public meeting and shall
12be subject to the approval of the oversight board as soon as the
13board has sufficient members to form a quorum. In recognition of
14the fact that the timing of the California Supreme Court’s ruling
15in the case California Redevelopment Association v. Matosantos
16(2011) 53 Cal.4th 231 delayed the preparation by successor
17agencies and the approval by oversight boards of the January 1,
182012, through June 30, 2012, Recognized Obligation Payment
19Schedule, a successor agency may amend the Enforceable
20Obligation Payment Schedule to authorize the continued payment
21of enforceable obligations until the time that the January 1, 2012,
22through June 30, 2012, Recognized
Obligation Payment Schedule
23has been approved by the oversight board and by the Department
24of Finance. The successor agency may utilize reasonable estimates
25and projections to support payment amounts for enforceable
26obligations if the successor agency submits appropriate supporting
27documentation of the basis for the estimate or projection to the
28Department of Finance and the auditor-controller.
29(2) The Department of Finance and the Controller shall each
30have the authority to require any documents associated with the
31enforceable obligations to be provided to them in a manner of
32their choosing. Any taxing entity, the department, and the
33Controller shall each have standing to file a judicial action to
34prevent a violation under this part and to obtain injunctive or other
35appropriate relief.
36(3) Commencing on the date the
Recognized Obligation Payment
37Schedule is valid pursuant to subdivision (l), only those payments
38listed in the Recognized Obligation Payment Schedule may be
39made by the successor agency from the funds specified in the
40Recognized Obligation Payment Schedule. In addition, after it
P10 1becomes valid, the Recognized Obligation Payment Schedule shall
2supersede the Statement of Indebtedness, which shall no longer
3be prepared nor have any effect under the Community
4Redevelopment Law (Part 1 (commencing with Section 33000)).
5(4) Nothing in the act adding this part is to be construed as
6preventing a successor agency, with the prior approval of the
7oversight board, as described in Section 34179, from making
8payments for enforceable obligations from sources other than
9those listed in the Recognized Obligation Payment Schedule.
10(5) From
February 1, 2012, to July 1, 2012, a successor agency
11shall have no authority and is hereby prohibited from accelerating
12payment or making any lump-sum payments that are intended to
13prepay loans unless the accelerated repayments were required
14prior to the effective date of this part.
15(b) Maintain reserves in the amount required by indentures,
16trust indentures, or similar documents governing the issuance of
17outstanding redevelopment agency bonds.
18(c) Perform obligations required pursuant to any enforceable
19obligation.
20(d) Remit unencumbered balances of redevelopment agency
21funds to the county auditor-controller for distribution to the taxing
22entities, including, but not limited to, the unencumbered balance
23of the Low and Moderate
Income Housing Fund of a former
24redevelopment agency. In making the distribution, the county
25auditor-controller shall utilize the same methodology for allocation
26and distribution of property tax revenues provided in Section
2734188.
28(e) Dispose of assets and properties of the former redevelopment
29agency as directed by the oversight board; provided, however,
30that the oversight board may instead direct the successor agency
31to transfer ownership of certain assets pursuant to subdivision (a)
32of Section 34181. The disposal is to be done expeditiously and in
33a manner aimed at maximizing value. Proceeds from asset sales
34and related funds that are no longer needed for approved
35development projects or to otherwise wind down the affairs of the
36agency, each as determined by the oversight board, shall be
37transferred to the county auditor-controller for distribution as
38property tax proceeds under Section 34188. The requirements of
39
this subdivision shall not apply to a successor agency that has
P11 1been issued a finding of completion by the Department of Finance
2pursuant to Section 34179.7.
3(f) Enforce all former redevelopment agency rights for the
4benefit of the taxing entities, including, but not limited to,
5continuing to collect loans, rents, and other revenues that were
6due to the redevelopment agency.
7(g) Effectuate transfer of housing functions and assets to the
8appropriate entity designated pursuant to Section 34176.
9(h) Expeditiously wind down the affairs of the redevelopment
10agency pursuant to the provisions of this part and in accordance
11with the direction of the oversight board.
12(i) Continue to oversee development of properties until the
13contracted work has been completed or the contractual obligations
14of the former redevelopment agency can be transferred to other
15parties. Bond proceeds shall be used for the purposes for which
16bonds were sold unless the purposes can no longer be achieved,
17in which case, the proceeds may be used to defease the bonds.
18(j) Prepare a proposed administrative budget and submit it to
19the oversight board for its approval. The proposed administrative
20budget shall include all of the following:
21(1) Estimated amounts for successor agency administrative
22costs for the upcoming 12-month fiscal period.
23(2) Proposed sources of payment for the costs identified
in
24paragraph (1).
25(3) Proposals for arrangements for administrative and
26operations services provided by a city, county, city and county, or
27other entity.
28(k) Provide administrative cost estimates, from its approved
29administrative budget that are to be paid from property tax
30revenues deposited in the Redevelopment Property Tax Trust Fund,
31to the county auditor-controller for each 12-month fiscal period.
32(l) (1) Before each 12-month fiscal period, prepare a
33Recognized Obligation Payment Schedule in accordance with the
34requirements of this paragraph. For each recognized obligation,
35the Recognized Obligation Payment Schedule shall identify one
36or more of the following sources of payment:
37(A) Low and Moderate Income Housing Fund.
38(B) Bond proceeds.
39(C) Reserve balances.
40(D) Administrative cost allowance.
P12 1(E) The Redevelopment Property Tax Trust Fund, but only to
2the extent no other funding source is available or when payment
3from property tax revenues is required by an enforceable obligation
4or by the provisions of this part.
5(F) Other revenue sources, including rents, concessions, asset
6sale proceeds, interest earnings, and any other revenues derived
7from the former
redevelopment agency, as approved by the
8oversight board in accordance with this part.
9(2) A Recognized Obligation Payment Schedule shall not be
10deemed valid unless all of the following conditions have been met:
11(A) A Recognized Obligation Payment Schedule is prepared by
12the successor agency for the enforceable obligations of the former
13redevelopment agency. The initial schedule shall project the dates
14and amounts of scheduled payments for each enforceable
15obligation for the remainder of the time period during which the
16redevelopment agency would have been authorized to obligate
17property tax increment had the redevelopment agency not been
18dissolved.
19(B) The Recognized Obligation Payment Schedule is submitted
20to and duly approved by
the oversight board. The successor agency
21shall submit a copy of the Recognized Obligation Payment
22Schedule to the county administrative officer, the county
23auditor-controller, and the Department of Finance at the same
24time that the successor agency submits the Recognized Obligation
25Payment Schedule to the oversight board for approval.
26(C) A copy of the approved Recognized Obligation Payment
27Schedule is submitted to the county auditor-controller, the
28Controller’s office, and the Department of Finance, and is posted
29on the successor agency’s Internet Web site.
30(3) The Recognized Obligation Payment Schedule shall be
31forward looking to the next 12-month fiscal period, for the first
3212-month fiscal period commencing after January 1, 2016. The
33first Recognized Obligation Payment Schedule shall be submitted
34to the Controller’s
office and the Department of Finance by April
3515, 2012, for the period of January 1, 2012, to June 30, 2012,
36inclusive. This Recognized Obligation Payment Schedule shall
37include all payments made by the former redevelopment agency
38between January 1, 2012, through January 31, 2012, and shall
39include all payments proposed to be made by the successor agency
40from February 1, 2012, through June 30, 2012. Former
P13 1redevelopment agency enforceable obligation payments due, and
2reasonable or necessary administrative costs due or incurred,
3prior to January 1, 2012, shall be made from property tax revenues
4received in the spring of 2011 property tax distribution, and from
5other revenues and balances transferred to the successor agency.
6(4) The Recognized Obligation Payment Schedule may be
7amended by the oversight board during a 12-month fiscal period
8as long as the amendment is approved at least 90 days before the
9date of the
next property tax distribution.
10(m) The Recognized Obligation Payment Schedule for the period
11of January 1, 2013, to June 30, 2013, shall be submitted by the
12successor agency, after approval by the oversight board, no later
13than September 1, 2012. Commencing with the Recognized
14Obligation Payment Schedule covering the period of July 1, 2013,
15through December 31, 2013, successor agencies shall submit an
16oversight board-approved Recognized Obligation Payment
17Schedule to the Department of Finance and to the county
18auditor-controller no fewer than 90 days before the date of
19property tax distribution. The Department of Finance shall make
20its determination of the enforceable obligations and the amounts
21and funding sources of the enforceable obligations no later than
2245 days after the Recognized Obligation Payment Schedule is
23submitted. Within five business days of the department’s
24determination, a successor agency may
request additional review
25by the department and an opportunity to meet and confer on
26disputed items. The meet and confer period may vary; an untimely
27submittal of a Recognized Obligation Payment Schedule may result
28in a meet and confer period of less than 30 days. The department
29shall notify the successor agency and the county auditor-controllers
30as to the outcome of its review at least 15 days before the date of
31property tax distribution.
32(1) The successor agency shall submit a copy of the Recognized
33Obligation Payment Schedule to the Department of Finance
34electronically, and the successor agency shall complete the
35Recognized Obligation Payment Schedule in the manner provided
36for by the department. A successor agency shall be in
37noncompliance with this paragraph if it only submits to the
38department an electronic message or a letter stating that the
39oversight board has approved a Recognized Obligation Payment
40
Schedule.
P14 1(2) If a successor agency does not submit a Recognized
2Obligation Payment Schedule by the deadlines provided in this
3subdivision, the city, county, or city and county that created the
4redevelopment agency shall be subject to a civil penalty equal to
5ten thousand dollars ($10,000) per day for every day the schedule
6is not submitted to the department. The civil penalty shall be paid
7to the county auditor-controller for allocation to the taxing entities
8under Section 34183. If a successor agency fails to submit a
9Recognized Obligation Payment Schedule by the deadline, any
10creditor of the successor agency or the Department of Finance or
11any affected taxing entity shall have standing to and may request
12a writ of mandate to require the successor agency to immediately
13perform this duty. Those actions may be filed only in the County
14of Sacramento and shall have priority over other civil matters.
15Additionally, if
an agency does not submit a Recognized Obligation
16Payment Schedule within 10 days of the deadline, the maximum
17administrative cost allowance for that period shall be reduced by
1825 percent.
19(3) If a successor agency fails to submit to the department an
20oversight board-approved Recognized Obligation Payment
21Schedule that complies with all requirements of this subdivision
22within five business days of the date upon which the Recognized
23Obligation Payment Schedule is to be used to determine the amount
24of property tax allocations, the department may determine if any
25amount should be withheld by the county auditor-controller for
26payments for enforceable obligations from distribution to taxing
27entities, pending approval of a Recognized Obligation Payment
28Schedule. The county auditor-controller shall distribute the portion
29of any of the sums withheld pursuant to this paragraph to the
30affected taxing entities in accordance
with paragraph (4) of
31subdivision (a) of Section 34183 upon notice by the department
32that a portion of the withheld balances are in excess of the amount
33of enforceable obligations. The county auditor-controller shall
34distribute withheld funds to the successor agency only in
35accordance with a Recognized Obligation Payment Schedule
36approved by the department. County auditor-controllers shall lack
37the authority to withhold any other amounts from the allocations
38provided for under Section 34183 or 34188 unless required by a
39court order.
P15 1(4) (A) The Recognized Obligation Payment Schedule payments
2required pursuant to this subdivision may be scheduled beyond
3the existing Recognized Obligation Payment Schedule cycle upon
4a showing that a lender requires cash on hand beyond the
5Recognized Obligation Payment Schedule cycle.
6(B) When a payment is shown to be due during the Recognized
7Obligation Payment Schedule period, but an invoice or other
8billing document has not yet been received, the successor agency
9may utilize reasonable estimates and projections to support
10payment amounts for enforceable obligations if the successor
11agency submits appropriate supporting documentation of the basis
12for the estimate or projection to the department and the
13auditor-controller.
14(C) A Recognized Obligation Payment Schedule may also
15include appropriation of moneys from bonds subject to passage
16during the Recognized Obligation Payment Schedule cycle when
17an enforceable obligation requires the agency to issue the bonds
18and use the proceeds to pay for project expenditures.
19(n) Cause a postaudit of the financial transactions and records
20of the
successor agency to be made at least annually by a certified
21public accountant.
22(o) The 12-month fiscal period specified in subdivisions (j), (k),
23and (l) shall correspond to the period from July 1 through June
2430, inclusive, unless an oversight board and the Department of
25Finance approve a successor agency’s request for the 12-month
26fiscal period to correspond with a different fiscal year used by the
27city, county, or city and county that created the former
28redevelopment agency.
29(p) This section shall not be construed to alter the semiannual
30distribution of Redevelopment Property Tax Trust Fund payments
31made in accordance with the projected payment schedule of the
32approved Recognized Obligation Payment Schedule.
33(q) This section shall become operative on January 1, 2016.
All matter omitted in this version of the bill appears in the bill as amended in the Senate, June 2, 2014. (JR11)
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