BILL ANALYSIS �
AB 1963
Page 1
Date of Hearing: May 7, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1963 (Atkins) - As Amended: April 21, 2014
Policy Committee: Local
GovernmentVote:9 - 0
Urgency: Yes State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill extends the date from January 1, 2015 to January 1,
2016 by which Long Range Property Management Plans (LRPMP)
submitted by redevelopment successor agencies must be approved
by the Department of Finance (DOF).
FISCAL EFFECT
Minor and absorbable costs to the Department of Finance. $22
million was appropriated to DOF in AB 1484 (Blumenfield),
Chapter 26, Statutes of 2012 for various redevelopment wind down
activities, including the activities covered in this bill.
COMMENTS
1)Purpose . According to DOF, as of April 25, 2014, there are 252
LRPMPs that have been submitted to DOF, 99 of which have been
approved. Thus, of 385 total successor agencies statewide,
286 still need DOF approval by the end of 2014. This urgency
bill extends the deadline for DOF to approve the LRPMPs to
January 1, 2016 to better ensure that former redevelopment
agency property is disposed of in accordance with the
Legislature's intent.
The author notes, "This submission and review process may take
longer than originally planned. Given that the approval of the
plans is the key to preventing widespread "fire sale" of
properties that Legislators were hoping to avoid through the
passage of AB 1484, it is crucial that all successor agencies
that receive a finding of completion are able to get an
approved plan."
AB 1963
Page 2
2)Background . AB 1484 (Blumenfield), Chapter 26, Statutes of
2012, was the redevelopment trailer bill for the 2012-13
Budget. The bill clarified certain matters associated with the
dissolution of RDAs and appropriated $22 million to the
Director of Finance for its purposes.
One of the provisions in AB 1484 requires, after DOF issues a
finding of completion, the successor agency to prepare a
long-range property management plan that addresses the
disposition and use of the real properties of the former
redevelopment agency, and requires the report to be submitted
to the oversight board and DOF for approval no later than six
months following the issuance of the finding of completion.
DOF is required to approve a
long-range property management plan by January 1, 2015
otherwise the property of the former redevelopment agency is
to be disposed of according to current law.
Analysis Prepared by : Jennifer Swenson / APPR. / (916)
319-2081