Amended in Assembly April 10, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2647

Introduced by Assembly Member Wagner

February 21, 2014

An act to add Section 34182.1 to the Health and Safety Code, relating to redevelopment.

LEGISLATIVE COUNSEL’S DIGEST

AB 2647, as amended, Wagner. Redevelopment: El Toro Project Area: former City of Lake Forest Redevelopment Agency.

Existing law dissolved redevelopment agencies and community development agencies as of February 1, 2012, and provides for the designation of successor agencies to wind down the affairs of the dissolved redevelopment agencies and to, among other things, make payments due for enforceable obligations and to perform obligations required pursuant to any enforceable obligation. Existing law additionally requires the county auditor-controller to determine annually the amount of property taxes that would have been allocated to each redevelopment agency had the agency not been dissolved, and to deposit that amount into the Redevelopment Property Tax Trust Fund. Existing law requires the county auditor-controller for each fiscal year to allocate moneys in the Redevelopment Property Tax Trust Fund for passthrough payment obligations, enforceable obligations of the dissolved redevelopment agency, and administrative costs, as specified.

This bill would require the Orange County Auditor-Controller to begin delete determine the amount of property taxes generated from the El Toro Project Area of the Neighborhood Development and Preservation Project Area. This bill would require the auditor-controller, prior to depositing those funds into a Redevelopment Property Tax Trust Fund for the former City of Lake Forest Redevelopment Agency, to determine the amount necessary to satisfy the bond obligations that pre-existed the creation of the City of Lake Forest Redevelopment Agency and deposit those funds into the Redevelopment Property Tax Trust Fund of the former Orange County Redevelopment Agency. This bill would then require then auditor-controller to deposit the remaining funds attributable to the El Toro Project Area into the former City of Lake Forest Redevelopment Agency Redevelopment Property Tax Trust Fund, end delete begin insert establish a separate Redevelopment Property Tax Trust Fund for the former Lake Forest Redevelopment Agency and to allocate property tax revenues attributable to the El Toro Project Area, as defined, between the Redevelopment Property Tax Trust Fund established for the former Orange County Development Agency and the Redevelopment Property Tax Trust Fund established for the former Lake Forest Redevelopment Agency, end insert as provided.

By adding to the duties of local government officials, this bill would impose a state-mandated local program.

This bill would make legislative findings and declarations as to the necessity of a special statute for the former City of Lake Forest Redevelopment Agency.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

Section 34182.1 is added to the Health and Safety
Code, to read:

34182.1.  

begin insert (a) end insert begin insert   end insert The Orange County Auditor Controller shall begin delete determine the amount of property taxes generated from the El Toro
Project Area of the Neighborhood Development and Preservation
Project Area. Prior to depositing those funds into a Redevelopment
Property Tax Trust Fund for the former City of Lake Forest
Redevelopment Agency, the auditor-controller shall determine the
amount necessary to satisfy the bond obligations that pre-existed
the creation of the City of Lake Forest Redevelopment Agency
and shall deposit the funds necessary to satisfy those pre-existing
bond obligations into the Redevelopment Property Tax Trust Fund
of the former Orange County Development Agency. The
auditor-controller shall then deposit, after payments pursuant to
statutory formulas or contractual agreements with other taxing
entities, the remaining funds attributable to the El Toro Project
Area into the former City of Lake Forest Redevelopment Agency
Redevelopment Property Tax Trust Fund. end delete begin insert do both of the following: end insert

begin insert

(1) Establish a separate Redevelopment Property Tax Trust
Fund for the former Lake Forest Redevelopment Agency.

end insert

begin insert (2) end insert begin insert   end insert begin insert Allocate property tax revenues attributable to the El Toro
Project Area between the Redevelopment Property Tax Fund
established for the former Orange County Development Agency
and the Redevelopment Property Tax Trust Fund established for
the former Lake Forest Redevelopment Agency as provided in
subdivision (b). end insert

begin insert

(b) (1) All property tax revenues deposited by the Orange
County Auditor Controller pursuant to paragraph (1) of subdivision
(c) of Section 34182 during each fiscal year that are attributable
to the Neighborhood Preservation and Development Project Area,
including the El Toro Project Area, shall initially be placed into
the Redevelopment Property Tax Trust Fund for the former Orange
County Development Agency.

end insert begin insert

(2) Prior to January 2, 2015, and prior to each June 1 and
January 2 thereafter, or such other Redevelopment Property Tax
Trust Fund distribution date as may be determined by the
Legislature, the Orange County Auditor Controller shall determine
the sum of the following:

end insert begin insert

(A) For each six-month fiscal period, the amount of
administrative costs pursuant to subdivision (a) of Section 34183
and negotiated and statutory passthrough obligations pursuant to
paragraph (1) of subdivision (a) of Section 34183.

end insert begin insert

(B) For each fiscal year, both of the following:

end insert begin insert

(i) The transfer amount required by Section 33670.9.

end insert begin insert

(ii) All other obligations secured by a prior claim on, or pledge
of, moneys in the Redevelopment Property Tax Trust Fund of the
former Orange County Development Agency, including tax
allocation bonds, as applicable, that are payable on a basis prior
to any transfer to the former Lake Forest Redevelopment Agency
pursuant to the Transfer Agreement or pursuant to Part 1.8 or
1.85 of Division 24 of the Health and Safety Code or any other
law.

end insert begin insert

(3) If the moneys in the Redevelopment Property Tax Trust Fund
established for the former Orange County Development Agency,
exclusive of property tax revenues attributable to the El Toro
Project Area, are sufficient to pay all obligations described in
paragraph (2) of subdivision (b), the Orange County Auditor
Controller shall deposit into the Redevelopment Property Tax
Trust Fund established for the former Lake Forest Redevelopment
Agency the amount by which the property tax revenues attributable
to the El Toro Project Area exceeds the amount to be retained by
the Orange County Development Agency pursuant to the transfer
agreement. The moneys deposited into the Redevelopment Property
Tax Trust Fund established for the former Lake Forest
Redevelopment Agency pursuant to this paragraph shall be
distributed in accordance with Section 34183.

end insert begin insert

(4) If the moneys in the Redevelopment Property Tax Trust Fund
established for the former Orange County Development Agency,
exclusive of property tax revenues attributable to the El Toro
Project Area, are not sufficient to pay all obligations described in
paragraph (2) of subdivision (b), the Orange County Auditor
Controller shall distribute the moneys in the Redevelopment
Property Tax Trust Fund established for the former Orange County
Development Agency that are attributable to the El Toro Project
Area as follows:

end insert begin insert

(A) An amount equal to the greater of either the following shall
be retained in the Redevelopment Property Tax Trust Fund
established for the former Orange County Development Agency
and distributed in accordance with Section 34183:

end insert begin insert

(i) The amount to be retained by the Orange County
Development Agency pursuant to the transfer agreement.

end insert begin insert

(ii) The amount necessary to fund the balance of the obligations
described in paragraph (2) of subdivision (b) in excess of the
amount otherwise available in the Redevelopment Property Tax
Trust Fund for the former Orange County Development Agency
without regard to property tax revenues attributable to the El Toro
Project Area.

end insert begin insert

(B) The remainder shall be deposited into the Redevelopment
Property Tax Fund established for the former Lake Forest
Redevelopment Agency and distributed in accordance with Section
34183.

end insert begin insert

(c) This section shall not be construed to affect the obligations
of the successor agency to the Orange County Development Agency
under Section 33670.9. Such obligations shall be prior to any
transfer of property tax revenues directed by this section and this
section shall be interpreted and construed in a manner consistent
with Section 33670.9.

end insert begin insert

(d) This section is intended to implement the transfer agreement
in light of Assembly Bill 26 of the 2011-12 First Extraordinary
Session of 2011 and, except as expressly set forth herein, this
section is not intended to alter the transfer agreement, which shall
continue in full force and effect in accordance with its terms.

end insert begin insert

(e) For purposes of this section, both of the following definitions
shall apply:

end insert begin insert

(1) “El Toro Project Area” means the portion of the former
Orange County Development Agency’s Neighborhood Preservation
and Development Project Area that was transferred to the Lake
Forest Redevelopment Agency pursuant to the transfer agreement
and Sections 33216 and 33216.1.

end insert begin insert

(2) “Transfer agreement” means the Agreement to Transfer
Territorial Jurisdiction of a Noncontiguous Portion of a
Redevelopment Project Area dated as of July 6, 1999, entered into
among the County of Orange, the Orange County Development
Agency, the City of Lake Forest, the Lake Forest Redevelopment
Agency, and the City of Laguna Hills.

end insert

SEC. 2.  

The Legislature finds and declares that a special law
is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because of the unique economic circumstances in the
area served by the former City of Lake Forest Redevelopment
Agency relating to the payment of debt service on begin delete pre-existing end delete
begin insert preexisting end insert bonds secured by the El Toro Project Area.

SEC. 3.  

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.