BILL ANALYSIS �
AB 1582
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Date of Hearing: April 30, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1582 (Mullin) - As Amended: April 22, 2014
Policy Committee: Local
GovernmentVote:9 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill revises the timeline for the preparation of the
required Recognized Obligation Payment Schedule (ROPS) by the
successor agency from every six months to annually, to
correspond with the agency's fiscal year.
FISCAL EFFECT
1)Potential administrative savings to the Department of Finance
(DOF) resulting from reviewing ROPS annually instead of every
six months.
2)Unknown, but likely significant administrative savings and
efficiencies to local Successor Agencies and affected county
departments resulting from preparing ROPS on an annual basis
instead of every six months.
COMMENTS
1)Purpose . The author asserts that a six-month ROPS time period
causes significant implementation issues as well as difficulty
for long-term finding calculations. These issues have
negatively affected a successor agency's ability to ensure
that developers are properly paid in regards to the
contractual obligations between them and the former
redevelopment agency, and now the successor agency. This bill
is intended to rectify this by aligning the ROPS reporting
period with the annual, fiscal year budget process.
2)Background . As part of the winding down of redevelopment
agencies, AB 1484 (Blumenfield), Chapter 26, Statutes of 2012,
AB 1582
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made various statutory changes associated with the dissolution
of redevelopment agencies and addressed a number of
substantive issues related to administrative processes,
affordable housing activities, repayment of loans from
communities, use of existing bond proceeds and the disposition
or retention of former redevelopment agency assets.
As part of this process, each successor agency is responsible
for drafting a ROPS delineating the enforceable obligations of
the former RDA and their source of payment every six months.
ROPS are subject to the approval of the local oversight board.
Since the dissolution of RDAs, the ROPS process has been time
consuming, complex and controversial. The preparation and
administration of each ROPS involves significant time by local
agency staff and its attorneys, as well as additional workload
for oversight boards and DOF. Numerous decisions by DOF to
reject a proposed item from being listed on a ROPS have been
subject to litigation.
However, in the three years since RDAs were dissolved, the
ROPS process has settled down. Nearly 300 local successor
agencies have received a 'finding of completion" from DOF,
indicating that some points of controversy are resolved.
Shifting the ROPS process to an annual cycle will save staff
time by avoiding repetitive processing on non-controversial
items and improve predictability for local agencies.
Analysis Prepared by : Jennifer Swenson / APPR. / (916)
319-2081