BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1963|
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CONSENT
Bill No: AB 1963
Author: Atkins (D) and Dickinson (D)
Amended: 6/4/14 in Senate
Vote: 27 - Urgency
SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 6/11/14
AYES: Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu, Walters
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 78-0, 5/15/14 (Consent) - See last page for
vote
SUBJECT : Redevelopment
SOURCE : Author
DIGEST : This bill extends, from January 1, 2015, until
January 1, 2016, the date by which a redevelopment successor
agency must obtain the Department of Finance (DOF) approval of a
long-range property management plan.
ANALYSIS : Existing law generally requires successor agencies
to dispose of former redevelopment agencies' (RDAs') assets and
properties expeditiously and in a manner aimed at maximizing
value, as directed by the oversight board. Asset sale proceeds
that are no longer needed for winding down an RDA's affairs must
be transferred to the county auditor-controller for distribution
to taxing entities within the county. However, a successor
agency that receives a finding of completion can retain a former
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RDA's real property assets in a trust and use those assets
subject to provisions of a long-range property management plan
approved by the agency's oversight board and the DOF. If the
DOF has not approved a successor agency's long-range property
management plan by January 1, 2015, the agency must comply with
the statutes that, with specified exceptions, require the
expeditious disposal of former RDAs' assets. DOF has issued
more than 300 findings of completion.
Existing law requires the State Controller to review whether
specified asset transfers by successor agencies that occurred
after January 31, 2012, were made pursuant to an enforceable
obligation on an approved and valid Recognized Obligation
Payment Schedule. The State Controller must order available
assets that were improperly transferred to be returned to the
successor agency. Upon receiving that order, an affected local
agency must as soon as practicable, reverse the transfer, and
return the applicable assets to the successor agency. Because
it has focused its efforts on reviewing assets transfers by
former redevelopment agencies, the State Controller's Office has
not yet begun to review successor agencies' post-January 2012
asset transfers.
This bill:
1.Extends, from January 1, 2015, until January 1, 2016, the date
by which a redevelopment successor agency must obtain DOF
approval of a long-range property management plan.
2.Repeals the statute that requires the State Controller to
review successor agencies' transfers of specified assets to
cities or counties and provides for the return of improperly
transferred assets.
Comments
The author states, "According to the bi-weekly report provided
to the Assembly Redevelopment Working Group on June 6, 2014, DOF
reported that there are currently 272 long range property
management plans (LRPMPs) that have been submitted to DOF, 129
of which have been approved. That means 256 of the 385 active
successor agencies still need Department approval by the end of
2014. This submission and review process may take longer than
originally planned.
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"Given the fact that the approval of LRPMPs are the key to
preventing the 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 are able to
receive a finding of completion are able to get an approved
LRPMP.
In addition, the thorough scrutiny that successor agencies
activities' have received through the oversight board approval
and DOF review process, makes it unlikely that the Controller's
reviews, which have not yet begun, will be necessary. Therefore,
AB 1963 also repeals a statute that requires the State
Controller's office to conduct a review of successor agencies
asset transfers."
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/24/14)
BRIDGE Housing
California Infill Builders Federation
California Rural Legal Assistance Foundation
Cities of Camarillo, Moorpark, and West Hollywood
League of California Cities
MuniServices
Non-profit Housing Association of Northern California
Western Center on Law and Poverty
ASSEMBLY FLOOR : 78-0, 5/15/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez,
Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,
Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nazarian,
Nestande, Olsen, Pan, Patterson, Perea, John A. P�rez, V.
Manuel P�rez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas,
Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron,
Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
NO VOTE RECORDED: Mansoor, Vacancy
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AB:e 6/25/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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