HomeMy WebLinkAboutIntergovernmental Relations Committee to support the Public Dept. ID AD 14-014 Page 1 of 4
Meeting Date:4/7/2014
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CITY OF HUNTINGTON BEACH
REQUEST FOR. CITY COUNCIL ACTION
MEETING DATE: 4/7/2014
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Teri Baker, Assistant to the City Manager
SUBJECT: Approve recommendations by the Intergovernmental Relations Committee (IRC)
to support the Public Library Broadband Initiative and three redevelopment
dissolution clean-up bills: SB 1129 (Long Range Property Management Plans
(LRPMP), Finding of Completion, 2011 Bonds); AB 1963 (Redevelopment and
LRPMP); and, AB 1582 (Recognized Obligation Payment Schedules (ROPS)
Annual Fiscal Period)
Statement of Issue:
At the March 18, 2014, meeting of the Intergovernmental Relations Committee, committee
members considered positions regarding various legislation as follows:
1. Public Broadband Initiative - Proposed new and ongoing funding to connect all public
libraries to a statewide, high-speed broadband network
2. Senate Bill 1129 (Steinberg)— Redevelopment Dissolution Clean-Up Bill
Assembly Bill 1963 (Atkins) - Redevelopment Dissolution Clean-Up Bill
Assembly Bill 1582 (Mullin) - Redevelopment Dissolution Clean-Up Bill
3. Senate Bill 1262 (Correa) — Medical Marijuana Regulation and Local Control
4. Senate Bill 1390 (Correa) — Santa Ana River Conservancy Act
Financial Impact:
None.
Recommended Action:
A) Approve a position of support and authorize the Mayor to sign letters of support as necessary
for the Public Library Broadband Initiative; and,
B) Approve a position of support and authorize the Mayor to sign letters of support as necessary
for Senate Bill 1129 (Steinberg)— Redevelopment Dissolution Clean-Up Bill; and,
C) Approve a position of support and authorize the Mayor to sign letters of support as necessary
for Assembly Bill 1963 (Atkins) - Redevelopment Dissolution Clean-Up Bill; and,
D) Approve a position of support and authorize the Mayor to sign letters of support as necessary
for Assembly Bill 1582 (Mullin) - Redevelopment Dissolution Clean-Up Bill.
Alternative Action(s):
Do not approve positions of support and direct staff accordingly.
Item 6. - I xB -46-
Dept. ID AD 14-014 Page 2 of 4
Meeting Date:4/7/2014
Analysis:
1. Public Library Broadband Initiative
Governor Brown's January Budget contains $2.25 million in proposed new, ongoing funding to
connect all public libraries to a statewide, high-speed broadband network operated by the
Corporation for Education Network Initiatives in California (CENIC). The budget also proposes that
an additional $1 million in one-time money be used for grants for those public libraries that may
need assistance with the purchase of circuits or other hardware, etc. This funding and policy issue
has been scheduled for hearing in the Budget Subcommittees on Education Finance.
The State Library budget is the purview of the Assembly Budget Subcommittee Number 2 on
Education Finance and the Senate Budget Subcommittee Number 1 on Education Finance. These
subcommittees have scheduled a discussion of the Governor's public library broadband proposal
for late April (April 23 and April 24 respectively). CLA, the State Library and CENIC worked last
year to educate the legislature and the Department of Finance about the need for this program.
That advocacy effort led to the creation of the major State Library Broadband Needs Assessment in
which almost the entire library community participated. The Needs Assessment gave CLA critical
data and validated the claims made at the Capitol regarding the overwhelming need for better
broadband speed, capacity and connectivity for California public libraries. The Governor has
embraced this proposal as part of his January Budget.
The Intergovernmental Relations Committee recommended a position of support.
2. Redevelopment Dissolution Clean-Up Bills (SB 1129, SB1963, and AB 1582)
Several legislative "clean-up" measures have been introduced this session to address problems
with the complicated and frustrating redevelopment dissolution process. The State's efforts
overseeing the dismantling of redevelopment agencies (RDA) have been severely flawed. Many of
the prior efforts to improve the process have stalled or been rejected by a Governor's
Administration focused on more rigid interpretations benefiting the State's financial bottom line.
However, there are several RDA dissolution clean-up proposals introduced by some prominent
members of the Legislature in the 2014 legislative session:
SB 1129 (Steinberg): Successor Agencies and Oversight Board Approval - SB 1129 makes the
following changes to existing law relating to successor agencies:
• Long Range Property Management Plans (LRPMP): Currently, successor agencies must
submit a LRPMP for approval by the oversight board and the Department of Finance (DOF)
within six months after DOF issues a Finding of Completion. This bill: (a) removes the
existing statutory deadline of Jan. 1, 2015, for DOF to approve these plans, thereby
avoiding the default of having the original provisions of RDA dissolution legislation govern
the disposal of real property; (b) provides that a compensation agreement with the taxing
entities is not required when property is transferred to the city/county for a project identified
in the redevelopment plan; specifies that DOF review of the plan is limited to whether the
plan makes a good faith effort to include the contents required by existing law; and (c)
requires DOF to approve LRPMPs as expeditiously as possible.
• Finding of Completion: Adds the following new benefits for successor agencies receiving a
finding of completion: (a) requires DOF to receive oversight board approval prior to DOF's
removal of an enforceable obligation from a Recognized Obligation Payment Schedules
(ROPS); and (b) authorizes a successor agency to enter into or amend existing contracts
and agreements, and administer projects in connection with an approved enforceable
RB -47- Item 6. - 2
Dept. ID AD 14-014 Page 3 of 4
Meeting Date:4/7/2014
obligation, if the contract, agreement, or project will not commit new property tax funds, and
will not otherwise reduce property tax payments to taxing entities.
• 2011 Bonds: Allows a successor agency to use proceeds of bonds issued during 2011
under several conditions.
The City of Huntington Beach would benefit from the clarification in the LRPMP that makes it clear
that requiring compensation agreements does not apply to disposition pursuant to an
LRPMP; prohibits DOF from requiring compensation agreements in connection with approval of an
LRPMP; and, deletes provision that AB 26 fire sale provisions come back to life if DOF has not
approved an LRPMP by January 2015. After a Finding of Completion, SB 1129 permits execution of
new agreements and contract amendments in connection with enforceable obligations approved on
a ROPS if there will be no commitment of new property taxes/reduction of RPTTF residual
payments to taxing entities. In addition, with a Finding of Completion, the bill requires oversight
board approval for removal of enforceable obligations from a ROPS and the Department of Finance
could not just eliminate an enforceable obligation.
The Intergovernmental Relations Committee recommended a position of support.
AB 1963 (Atkins): Redevelopment and Long-Range Property Managements Plans - This bill
removes the existing statutory deadline of January 1, 2015, for DOF to approve LRPMPs, thereby
avoiding the default of having the original provisions of ABx1 26 govern the disposal of real
property. The elements of AB 1963 could potentially expand in the future to include other clean-up
provisions.
For Huntington Beach, the LRPMP, once adopted will allow the City/Successor Agency to
dispose/development former Redevelopment Agency property and not be forced to sell quickly.
The Intergovernmental Relations Committee recommended a position of support.
AB 1582 (Mullin): Recognized Obligation Payment Schedules (ROPS) Annual Fiscal Period - This
measure extends the existing ROPS process to require it to occur once per year instead of once
every six months.
For Huntington Beach, this will allow for creating one ROPS budget for the year that will decrease
the staff time on the ROPS budget, Oversight Board meetings and potential for only one instead of
two Meet and Confers with Department of Finance.
The Intergovernmental Relations Committee recommended a position of support.
3. Senate Bill 1262 (Correa) — Medical Marijuana Regulation and Local Control —
Sponsored by the Police Chief's Association and co-sponsored by the League of California
Cities, this bill would protect local control and require the State Department of Public Heath
to license dispensing facilities and cultivation sites that provide, process, and grow
marijuana for medical use.
The City's new State Lobbyist, Heather Stratman of Townsend Public Affairs, attended IRC
and suggested to Committee Members that because the language in the bill would likely be
amended as it is heard through committee, she recommends holding off on a position until a
later date. Therefore, IRC took no position and asked staff to bring SB 1262 back at a
future meeting.
Item 6. - 3 Ha -48-
Dept.ID AD 14-014 Page 4 of 4
Meeting Date:4/7/2014
4. Senate Bill 1390 (Correa) —Santa Ana River Conservancy Act.
This bill would establish the Santa Ana River Conservancy to acquire specified lands within
'/2 mile of either side of the riverbed and would prescribe the management, powers, and
duties of the conservancy. Similar to SB 1262. Heather Stratman suggested that the
language in the bill would likely be amended as the bill is heard through committee, so she
recommends holding off on a position until a later date. Therefore, IRC took no position
and asked staff to bring SB 1390 back at a future meeting.
Environmental Status:
N/A
Strategic Plan Goal:
Improve long-term fiscal sustainability
Enhance economic development
Attachment(s):
1. California Library Association Broadband Initiative information/sample letter of support
2. Senate Bill 1129
3. Assembly Bill 1963
4. Assembly Bill 1582
HB -49- Item 6. - 4
CAI.IFORNIA LIBRARY ASSOCIATION
Day In the District 2014
PUBLIC LIBRARY BROADBAND INITIATIVE
Bringing public libraries on to a statewide, high speed, broadband "backbone"
Sponsors
The California Library Association (CLA), the Corporation for Education Network Initiatives in
California (CENIC), and the California State Library
The Proposal
The Governor's newiy released 2014-15 State Budget contains$2.25 million in new General
Fund dollars for the purpose of bringing public libraries on to a 3,000 mile high speed,
statewide broadband "backbone"operated by CENIC. (This amount would be built into the
base as an ongoing appropriation in future budgets.) The State Budget further proposes that
an additional$i million in "one-time"funding be provided for the purpose of assisting some
public libraries that will need hardware to help them connect to the CENIC "backbone."
This proposal is a"game changer"for public libraries and their patrons; and the small financial
commitment from the state, represents an incredible bang for the buck."
The History
As a result of CLA's significant advocacy efforts in the 2013 session, the State Budget bill (AB 110)
contained language directing the State Library to conduct a Statewide Broadband Needs
Assessment, which was completed in October 2013. 178 jurisdictions out of 183 (or 97 percent!)
responded to the survey, and 883 branches out of 1115 (or 79 percent) responded. The assessment
findings have overwhelmingly supported the case for CLA's broadband funding request.
Why choose CENIC as the backbone provider?
CENIC has been providing this same level of quality broadband service to the entire K-12, UC, CSU,
community college community as well as some private colleges for years. If CENIC is the "gold
standard" "backbone" provider for all of these educational entities, there is no doubt they should
similarly be the provider for public libraries. CENIC will also provide public libraries with 3 seats on
their board of directors.
As CENIC notes in a background paper on the subject: "By combining the buying power of
California's 1100 libraries with that of K-12 education, significant one-time and ongoing cost savings
can be realized to this end and higher capacity networking is available." CENIC's statement
essentially means that public library dollars will stretch further, enabling jurisdictions and branches to
buy bigger circuits for faster connections. For example, if public libraries previously budgeted $3,000
for a T-1 line, those same dollars could buy them 1 gigabit under this proposal.
How would this project improve library services?
The State Library Broadband Needs Assessment found that approximately 40% of California public
libraries have connection speeds of between 1.5 and 20 Mbps (million bits per second), far less than
what many Americans have in their homes.
Item 6. - 5 xB -50-
Computer and Wifi usage at the public library is at an all-time high. When the San Mateo City Library
opened in 1996, it had 10 public-use PCs—it now has 100 PC workstations. The San Bruno Public
Library has seen a 100 percent increase in the use of a-books and audio books, just in the last year,
from 2,000 downloads to 4,000 downloads.
80% of all California public libraries responding to the survey would have the infrastructure in
place to be"on the backbone" immediately once state funding is provided. The other 20%
would need some additional time or equipment in order to be connected.
Public libraries are the great equalizer and the go-to place for community. state, Job, literacy,
education and veteran services.
• People are flocking to the library in large numbers to research and fill out applications for the
Affordable Care Act
• Many employers require job applications to be filled out online
• Skype can be an effective way to provide distance-learning adult literacy tutoring
• Bakersfield, Redding, and San Diego public libraries are providing special job search and
online benefits search services for veterans
• The GED exam is going online in 2014. K-12 is bracing for the implementation of Common
Core, which is also an online test. The library is an obvious place to practice for both of these
important exams. The online tutoring program, "Online Homework Help" is one of the public
libraries' most popular educational tools.
Many of these services will be unavailable or painfully slow to acquire and utilize if the state does not
assist public libraries in obtaining the high level broadband speed and connectivity that is currently
provided to K-12 and higher education through CENIC.
The Governor's $3.25 million proposal for broadband services for public libraries is in addition to the
$4.7 million that is currently provided for the California Library Services Act and the state literacy
program in the State Budget. The $3.25 million would also help the state meet its federal match,
which brings in approximately$16 million in federal funding annually to the state.
Please tell your legislators about your current bandwidth and/or connectivity situation and ask them
to support the Governor's broadband proposal of$3.25 million in the 2014-15 State Budget for
this purpose. Note: This issue will be heard in Assembly Budget Subcommittee Number 2
and Senate Budget Subcommittee Number 1 in the Spring.
Encourage your iegislator to contact CLA Lobbyists, Mike Dillon and Christina Dicaro at(916)448-2196, for more
information.
HB -s t- Item 6. - 6
SAMPLE LETTER
[Date]
The Honorable [Name]
California State [Assembly or Senate]
State Capitol
Sacramento, CA. 95814
RE: BUDGET ITEM #6120-215-0001: CALIFORNIA STATE LIBRARY—
Statewide Library Broadband Services—Support Governor's January Budget
Dear [Assemblymember or Senator�]
I am writing to request your strong support of a program contained in the Governor's January
Budget that would provide essential broadband services for all of California's public libraries.
This issue will be before the Budget Subcommittees on Education Finance in late April for a
hearing when the State Library budget is considered.
Budget Item 6120-215-0001 would provide $2.25 million in ongoing General Fund money for
public libraries to allow them to join a major high-speed broadband network, operated by the
Corporation for Education Network Initiatives in California (CENIC). An additional $1 million in
one-time funding would be provided for the purpose of providing grants to libraries that may
need additional assistance with the purchase of circuits or other augmentations, in order to join
the CENIC network.
I am pleased that Governor Brown included funding in his Budget that will enable public libraries
to join a high speed Internet backbone, which will allow libraries throughout the state to better
meet the dynamic changing needs of patrons. Library usage is at an all-time high [- please
insert some numbers or percentages here from your own library - ] and yet many public libraries
are equipped with broadband strength that is less than what one might find in their own home.
Your constituents are coming to the library to complete EDD applications, submit job
applications, researching Affordable Care Act plans, accessing tutors for school assignments,
applying for veterans programs— all online. Not everyone has a computer or smart tablet at
home, so libraries fill the role of the "great equalizer" of access for all in a community.
I strongly encourage the legislature to adopt the Governor's proposal, which ultimately will allow
the State Library to join the cooperative network, CENIC. It is important to note that the
legislature has a good familiarity with CENIC, as CENIC has been providing a high level of
broadband service for the K-12, University of California, CSU, and community college systems
for many years with great success.
Your support of this project is vitally important to the public library community. Thank you for
your consideration.
Sincerely,
Item 6. - 7 FIB -52-
Page 1 of 1
!a 9100
Search Results
Thursday, March 13, 2014
SR 1122 (Steinberg D) Redevelopment: successor agencies to redevelopment agencies.
(Introduced: 2/19/2014)
Status: 2/27/2014-Referred to Com. on GOV. & F.
Location: 2/27/2014-5. G. & F.
Desk Policy Fisca 11 Flo orl Desk Pol OvlTiscal 19oorl Conf. Enrolled Vetoed Chaptered
1st House I 2nd House lConc.
Summary: 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 requires the Department of Finance to
issue a finding of completion to a successor agency upon confirmation by the county
auditor-controller that specified payments have been fully made by the successor agency,
as specified. Existing law prohibits a successor agency from entering into contracts with,
incur obligations, or make commitments to, any entity, as specified, or to amend or modify
existing agreements, obligations, or commitments with any entity, for any purpose. This bill
would authorize a successor agency, if the successor agency has received a finding of
completion, to enter into, or amend existing, contracts and agreements, or otherwise
administer projects in connection with enforceable obligations, if the contract, agreement,
or project will not commit new property tax funds or otherwise adversely affect the now of
specified tax revenues or payments to the taxing agencies, as specified. This bill contains
other related provisions and other existing laws.
Policy Committee Primary Lobbyist 2nd Lobbyist
(primary)
Housing Community Carrigg, Dan
and Economic
Development
Revenue and Taxation
League Position Position Taken Policy Committee Policy Analyst
(secondary)
Watch
Total Measures: 1
Total Tracking Forms: 1
3J I3,20 14 9:32:57 AM
HB -53- Item 6. - 8
littp://et3k l.capitoltrack.cam/public/search.aspx'!ici=ar14z55199-37ed-42ed-8217-d 19b4d25... 3/13/2u 14
SENATE BILL No. 1129
Introduced by Senator Steinberg
February 19,2014
An act to amend Sections 34177,34177.5,34180,34191.3,34191.4,
and 34191.5 of the Health and Safety Code,relating to redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
SB 1129, as introduced, Steinberg. Redevelopment: successor
agencies to redevelopment agencies.
(1) 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 requires
the Department of Finance to issue a finding of completion to a
successor agency upon confirmation by the county auditor-controller
that specified payments have been fully made by the successor agency,
as specified. Existing law prohibits a successor agency from entering
into contracts with, incur obligations, or make commitments to, any
entity, as specified, or to amend or modify existing agreements,
obligations, or commitments with any entity, for any purpose.
This bill would authorize a successor agency,if the successor agency
has received a finding of completion, to enter into, or amend existing,
contracts and agreements,or otherwise administer projects in connection
with enforceable obligations,if the contract, agreement,or project will
not commit new property tax funds or otherwise adversely affect the
flow of specified tax revenues or payments to the taxing agencies, as
specified.
99
Item 6. - 9 HB -54-
SB 1129 —2—
(2) Existing law authorizes a successor agency to oversee the
development of properties until the contracted work has been completed
or the contractual obligation of the former redevelopment agency can
be transferred to other parties, and requires bond proceeds to be used
for the purposes for which bonds were sold, except as specified.
This bill would authorize a successor agency to utilize the proceeds
of bonds issued during the 2011 calendar year, upon the approval of
the oversight board, if the oversight board, in consultation with the
relevant metropolitan planning organization determines that the use of
the bond proceeds is consistent with the sustainable communities
strategy adopted by the metropolitan planning organization.
(3) Existing law authorizes a successor agency to petition the
Department of Finance to provide written confirmation that its
determination relating to an enforceable obligation that provides for an
irrevocable commitment of property tax revenue, as specified, is final
and conclusive, and reflects the department's approval of subsequent
payments made pursuant to the enforceable obligation.
This bill would require the removal of an enforceable obligation from
a recognized obligation payment schedule that has received a finding
of completion from the department to be submitted to the oversight
board for review and approval.
(4)Existing law requires a city,county,or city and county that wishes
to retain any properties or other assets for future redevelopment
activities, funded from its own funds and under its own auspices, to
reach a compensation agreement with the other taxing entities to provide
payments to them in proportion to their shares of the base property tax
for the value of the property retained, as specified.
This bill would specify that these provisions do not apply to the
disposition of properties pursuant to a long-range property management
plan.
(5) Existing law requires the disposition of assets and properties of
the former redevelopment agency as directed by the oversight board,
as specified, and suspends these requirements until the Department of
Finance has approved a long-range property management plan, as
specified. Upon approval of a long-range property management plan,
the plan governs and supersedes, all other provisions relating to the
disposition and use of the real property assets of the former
redevelopment agency. Existing law requires the property of a former
redevelopment agency to be disposed of.according to law if the
99
HB -55- Item 6. - 10
-3— SB 1129
department has not approved a long-range property management plan
by January 1, 2015.
This bill would prohibit the department from requiring compensation
agreements as part of the approval of a long-range property management
plan and would specify the criteria the department may consider in
approving a long-range property management plan. The bill would
additionally delete the requirement that the department approve a plan
by January 1, 2015, and instead require the department to approve
long-range property management plans as expeditiously as possible.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Section 34177 of the Health and Safety Code is
2 amended to read:
3 34177. Successor agencies are required to do all of the
4 following:
5 (a) Continue to make payments due for enforceable obligations.
6 (1) On and after February 1, 2012, and until a Recognized
7 Obligation Payment Schedule becomes operative,only payments
8 required pursuant to an enforceable obligations payment schedule
9 shall be made.The initial enforceable obligation payment schedule
10 shall be the last schedule adopted by the redevelopment agency
I under Section 34169. However, payments associated with
12 obligations excluded from the definition of enforceable obligations
13 by paragraph (2) of subdivision (d) of Section 34171 shall be
I4 excluded from the enforceable obligations payment schedule and
15 be removed from the last schedule adopted by the redevelopment
16 agency under Section 34169 prior to the successor agency adopting
17 it as its enforceable obligations payment schedule pursuant to this
18 subdivision. The enforceable obligation payment schedule may
19 be amended by the successor agency at any public meeting and
20 shall be subject to the approval of the oversight board as soon as
21 the board has sufficient members to form a quorum.In recognition
22 of the fact that the timing of the California Supreme Court's ruling
23 in the case California Redevelopment Association v. Matosantos
24 (201 1) 53 Cal.4th 231 delayed the preparation by successor
25 agencies and the approval by oversight boards of the January 1,
26 2012, through June 30, 2012, Recognized Obligation Payment
99
Item 6. - 11 HB -s6-
SB 1129 —4-
1 Schedule, a successor agency may amend the Enforceable
2 Obligation Payment Schedule to authorize the continued payment
3 of enforceable obligations until the time that the January 1,2012,
4 through June 30,2012,Recognized Obligation Payment Schedule
5 has been approved by the oversight board and by the Department
6 of Finance.
7 (2) The Department of Finance and the Controller shall each
8 have the authority to require any documents associated with the
9 enforceable obligations to be provided to them in a manner of their
10 choosing. Any taxing entity, the department, and the Controller
11 shall each have standing to file a judicial action to prevent a
12 violation under this part and to obtain injunctive or other
13 appropriate relief.
14 (3) Commencing on the date the Recognized Obligation Payment
15 Schedule is valid pursuant to subdivision(�,only those payments
16 listed in the Recognized Obligation Payment Schedule may be
17 made by the successor agency from the funds specified in the
18 Recognized Obligation Payment Schedule. In addition, after it
19 becomes valid,the Recognized Obligation Payment Schedule shall
20 supersede the Statement of Indebtedness, which shall no longer
21 be prepared nor have any effect under the Community
22 Redevelopment Law(Part 1 (commencing with Section 33000)).
23 (4) Nothing in the act adding this part is to be construed as
24 preventing a successor agency, with the prior approval of the
25 oversight board, as described in Section 34179, from making
26 payments for enforceable obligations from sources other than those
27 listed in the Recognized Obligation Payment Schedule.
28 (5) From February 1,2012,to July 1,2012,a successor agency
29 shall have no authority and is hereby prohibited from accelerating
30 payment or making any lump-sum payments that are intended to
31 prepay loans unless such accelerated repayments were required
32 prior to the effective date of this part.
33 (b) Maintain reserves in the amount required by indentures,
34 trust indentures, or similar documents governing the issuance of
35 outstanding redevelopment agency bonds.
36 (c) Perform obligations required pursuant to any enforceable
37 obligation.
38 (d) Remit unencumbered balances of redevelopment agency
39 funds to the county auditor-controller for distribution to the taxing
40 entities, including, but not limited to, the unencumbered balance
99
xB -57- Item 6. - 12
—5— SB 1129
1 of the Low and Moderate Income Housing Fund of a former
2 redevelopment agency. In making the distribution, the county
3 auditor-controller shall utilize the same methodology for allocation
4 and distribution of property tax revenues provided in Section
5 34188.
6 (e) Dispose of assets and properties of the former redevelopment
7 agency as directed by the oversight board;provided,however,that
8 the oversight board may instead direct the successor agency to
9 transfer ownership of certain assets pursuant to subdivision(a)of
10 Section 34181. The disposal is to be done expeditiously and in a
11 manner aimed at maximizing value.Proceeds from asset sales and
12 related funds that are no longer needed for approved development
13 projects or to otherwise wind down the affairs of the agency,each
14 as determined by the oversight board, shall be transferred to the
15 county auditor-controller for distribution as property tax proceeds
16 under Section 34188. The requirements of this subdivision shall
17 not apply to a successor agency that has been issued a finding of
18 completion by the Department of Finance pursuant to Section
19 34179.7.
20 (f) Enforce all former redevelopment agency rights for the
21 benefit of the taxing entities, including, but not limited to,
22 continuing to collect loans,rents,and other revenues that were due
23 to the redevelopment agency.
24 (g) Effectuate transfer of housing functions and assets to the
25 appropriate entity designated pursuant to Section 34176.
26 (h) Expeditiously wind down the affairs of the redevelopment
27 agency pursuant to the provisions of this part and in accordance
28 with the direction of the oversight board.
29 (1) (1) Continue to oversee development of properties until the
30 contracted work has been completed or the contractual obligations
31 of the former redevelopment agency can be transferred to other
32 parties. Bond proceeds shall be used for the purposes for which
33 bonds were sold unless the purposes can no longer be achieved,
34 in which case, the proceeds may be used to defease the bonds.
35 (2) Utilize, in accordance with paragraph (1) the proceeds of
36 bonds issued during the year 2011, upon approval of the oversight
37 board, if the oversight board, in consultation with the appropriate
38 metropolitan planning organization,determines that the use of the
39 bond proceeds is consistent with the sustainable communities
40 strategy adopted by the metropolitan planning organization.
99
Item 6. - 13 HB -58-
SB 1129 —6-
1 0) Prepare a proposed administrative budget and submit it to
2 the oversight board for its approval.The proposed administrative
3 budget shall include all of the following:
4 (1) Estimated amounts for successor agency administrative costs
5 for the upcoming six-month fiscal period.
6 (2) Proposed sources of payment for the costs identified in
7 paragraph(1).
8 (3) Proposals for arrangements for administrative and operations
9 services provided by a city,county,city and county,or other entity.
10 (k) Provide administrative cost estimates, from its approved
11 administrative budget that are to be paid from property tax revenues
12 deposited in the Redevelopment Property Tax Trust Fund, to the
13 county auditor-controller for each six-month fiscal period.
14 (1) (1) Before each six-month fiscal period, prepare a
15 Recognized Obligation Payment Schedule in accordance with the
16 requirements of this paragraph. For each recognized obligation,
17 the Recognized Obligation Payment Schedule shall identify one
18 or more of the following sources of payment:
19 (A) Low and Moderate Income Housing Fund.
20 (B) Bond proceeds.
21 (C) Reserve balances.
22 (D) Administrative cost allowance.
23 (E) The Redevelopment Property Tax Trust Fund, but only to
24 the extent no other funding source is available or when payment
25 from property tax revenues is required by an enforceable obligation
26 or by this part.
27 (F) Other revenue sources, including rents, concessions, asset
28 sale proceeds;interest earnings, and any other revenues derived
29 from the former redevelopment agency, as approved by the
30 oversight board in accordance with this part_
31 (2) A Recognized Obligation Payment Schedule shall not be
32 deemed valid unless all of the following conditions have been met:
33 (A) A Recognized Obligation Payment Schedule is prepared
34 by the successor agency for the enforceable obligations of the
35 fanner redevelopment agency. The initial schedule shall project
36 the dates and amounts of scheduled payments for each enforceable
37 obligation for the remainder of the time period during which the
38 redevelopment agency would have been authorized to obligate
39 property tax increment had the redevelopment agency not been
40 dissolved.
99
xB -59- Item 6. - 14
—7— SB 1129
1 (B) The Recognized Obligation Payment Schedule is submitted
2 to and duly approved by the oversight board.The successor agency
3 shall submit a copy of the Recognized Obligation Payment
4 Schedule to the county administrative officer, the county
5 auditor-controller,and the Department of Finance at the same time
6 that the successor agency submits the Recognized Obligation
7 Payment Schedule to the oversight board for approval.
8 (C) A copy of the approved Recognized Obligation Payment
9 Schedule is submitted to the county auditor-controller and both
10 the Controller's office and the Department ofFinance and be posted
11 on the successor agency's Internet Web site.
12 (3) The Recognized Obligation Payment Schedule shall be
13 forward looking to the next six months. The first Recognized
14 Obligation Payment Schedule shall be submitted to the Controller's
15 office and the Department of Finance by April 15, 2012, for the
16 period of January 1, 2012, to June 30, 2012, inclusive. This
17 Recognized Obligation Payment Schedule shall include all
18 payments made by the former redevelopment agency between
19 January 1, 2012, through January 31, 2012, and shall include all
20 payments proposed to be made by the successor agency from
21 February 1,2012,through June 30, 2012.Former redevelopment
22 agency enforceable obligation payments due, and reasonable or
23 necessary administrative costs due or incurred, prior to January 1,
24 2012, shall be made from property tax revenues received in the
25 spring of 2011 property tax distribution, and from other revenues
26 and balances transferred to the successor agency.
27 (m) The Recognized Obligation Payment Schedule for the period
28 of January 1, 2013, to June 30, 2013, shall be submitted by the
29 successor agency, after approval by the oversight board, no later
30 than September 1, 2012. Commencing with the Recognized
31 Obligation Payment Schedule covering the period July 1, 2013,
32 through December 31, 2013, successor agencies shall submit an
33 oversight board-approved Recognized Obligation Payment
34 Schedule to the Department of Finance and to the county
35 auditor-controller no fewer than 90 days before the date of property
36 tax distribution. The Department of Finance shall make its
37 determination of the enforceable obligations and the amounts and
38 funding sources of the enforceable obligations no later than 45
39 days after the Recognized Obligation Payment Schedule is
40 submitted. Within five business days of the department's
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1 determination, a successor agency may request additional review
2 by the department and an opportunity to meet and confer on
3 disputed items.The meet and confer period may vary;an untimely
4 submittal of a Recognized Obligation Payment Schedule may result
5 in a meet and confer period of less than 30 days.The department
6 shall notify the successor agency and the county auditor-controllers
7 as to the outcome of its review at least 15 days before the date of
8 property tax distribution.
9 (1) The successor agency shall submit a copy of the Recognized
10 Obligation Payment Schedule to the Department of Finance
11 electronically, and the successor agency shall complete the
12 Recognized Obligation Payment Schedule in the manner provided
13 for by the department. A successor agency shall be in
14 noncompliance with this paragraph if it only submits to the
15 department an electronic message or a letter stating that the
16 oversight board has approved a Recognized Obligation Payment
17 Schedule.
18 (2) If a successor agency does not submit a Recognized
19 Obligation Payment Schedule by the deadlines provided in this
20 subdivision, the city, county, or city and county that created the
21 redevelopment agency shall be subject to a civil penalty equal to
22 ten thousand dollars($10,000)per day for every day the schedule
23 is not submitted to the department.The civil penalty shall be paid
24 to the county auditor-controller for allocation to the taxing entities
25 under Section 34183. If a successor agency fails to submit a
26 Recognized Obligation Payment Schedule by the deadline, any
27 creditor of the successor agency or the Department of Finance or
28 any affected taxing entity shall have standing to and may request
29 a writ of mandate to require the successor agency to immediately
30 perform this duty. Those actions may be filed only in the County
31 of Sacramento and shall have priority over other civil matters.
32 Additionally,if an agency does not submit a Recognized Obligation
33 Payment Schedule within 10 days of the deadline, the maximum
34 administrative cost allowance for that period shall be reduced by
35 25 percent.
36 (3) If a successor agency fails to submit to the department an
37 oversight board-approved Recognized Obligation Payment
38 Schedule that complies with all requirements of this subdivision
39 within five business days of the date upon which the Recognized
40 Obligation Payment Schedule is to be used to determine the amount
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1 of property tax allocations, the department may determine if any
2 amount should be withheld by the county auditor-controller for
3 payments for enforceable obligations from distribution to taxing
4 entities, pending approval of a Recognized Obligation Payment
5 Schedule.The county auditor-controller shall distribute the portion
6 of any of the sums withheld pursuant to this paragraph to the
7 affected taxing entities in accordance with paragraph (4) of
8 subdivision (a) of Section 34183 upon notice by the department
9 that a portion of the withheld balances are in excess of the amount
10 of enforceable obligations. The county auditor-controller shall
11 distribute withheld funds to the successor agency only in
12 accordance with a Recognized Obligation Payment Schedule
13 approved by the department.County auditor-controllers shall lack
14 the authority to withhold any other amounts from the allocations
15 provided for under Section 34183 or 34188, unless required by a
16 court order.
17 (n) Cause a postaudit of the financial transactions and records
18 of the successor agency to be made at least annually by a certified
19 public accountant.
20 SEC. 2. Section 34177.5 of the Health and Safety Code is
21 amended to read:
22 34177.5. (a) In addition to the powers granted to each
23 successor agency, and notwithstanding anything in the act adding
24 this part, including,but not limited to, Sections 34162 and 34189,
25 a successor agency shall have the authority, rights, and powers of
26 the redevelopment agency to which it succeeded solely for the
27 following purposes:
28 (1) For the purpose of issuing bonds or incurring other
29 indebtedness to refund the bonds or other indebtedness of its former
30 redevelopment agency or of the successor agency to provide
31 savings to the successor agency,provided that(A)the total interest
32 cost to maturity on the refunding bonds or other indebtedness plus
33 the principal amount of the refunding bonds or other indebtedness
34 shall not exceed the total remaining interest cost to maturity on
35 the bonds or other indebtedness to be refunded plus the remaining
36 principal of the bonds or other indebtedness to be refunded, and
37 (B) the principal amount of the refunding bonds or other
38 indebtedness shall not exceed the amount required to defease the
39 refunded bonds or other indebtedness,to establish customary debt
40 service reserves, and to pay related costs of issuance. If the
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1 foregoing conditions are satisfied, the initial principal amount of
2 the refunding bonds or other indebtedness may be greater than the
3 outstanding principal amount of the bonds or other indebtedness
4 to be refunded.The successor agency may pledge to the refunding
5 bonds or other indebtedness the revenues pledged to the bonds or
6 other indebtedness being refunded, and that pledge, when made
7 in connection with the issuance of such refunding bonds or other
8 indebtedness,shall have the same lien priority as the pledge of the
9 bonds or other obligations to be refunded, and shall be valid,
10 binding, and enforceable in accordance with its terms.
11 (2) For the purpose of issuing bonds or other indebtedness to
12 finance debt service spikes,including balloon maturities,provided
13 that(A)the existing indebtedness is not accelerated, except to the
14 extent necessary to achieve substantially level debt service, and
15 (B) the principal amount of the bonds or other indebtedness shall
16 not exceed the amount required to finance the debt service spikes,
17 including establishing customary debt service reserves and paying
18 related costs of issuance.
19 (3) For the purpose of amending an existing enforceable
20 obligation under which the successor agency is obligated to
21 reimburse a political subdivision of the state for the payment of
22 debt service on a bond or other obligation of the political
23 subdivision, or to pay all or a portion of the debt service on the
24 bond or other obligation of the political subdivision to provide
25 savings to the successor agency,provided that(A)the enforceable
26 obligation is amended in connection with a refunding of the bonds
27 or other obligations of the political subdivision so that the
28 enforceable obligation will apply to the refunding bonds or other
29 refunding indebtedness of the political subdivision, (B) the total
30 interest cost to maturity on the refunding bonds or other
31 indebtedness plus the principal amount of the refunding bonds or
32 other indebtedness shall not exceed the total remaining interest
33 cost to maturity on the bonds or other indebtedness to be refunded
34 plus the remaining principal of the bonds or other indebtedness to
35 be refunded, and(C)the principal amount of the refunding bonds
36 or other indebtedness shall not exceed the amount required to
37 defease the refunded bonds or other indebtedness, to establish
38 customary debt service reserves and to pay related costs of
39 issuance. The pledge set forth in that amended enforceable
40 obligation, when made in connection with the execution of the
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I amendment of the enforceable obligation,shall have the same lien
2 priority as the pledge in the enforceable obligation prior to its
3 amendment and shall be valid, binding, and enforceable in
4 accordance with its terms.
5 (4) For the purpose of issuing bonds or incurring other
6 indebtedness to make payments under enforceable obligations
7 when the enforceable obligations include the irrevocable pledge
8 of property tax increment, formerly tax increment revenues prior
9 to the effective date of this part, or other funds and the obligation
10 to issue bonds secured by that pledge.The successor agency may
l I pledge to the bonds or other indebtedness the property tax revenues
12 and other funds described in the enforceable obligation, and that
13 pledge, when made in connection with the issuance of the bonds
14 or the incurring of other indebtedness,shall be valid,binding,and
15 enforceable in accordance with its terms.This paragraph shall not
16 be deemed to authorize a successor agency to increase the amount
17 of property tax revenues pledged under an enforceable obligation
18 or to pledge any property tax revenue not already pledged pursuant
19 to an enforceable obligation.This paragraph does not constitute a
20 change in,but is declaratory of, the existing law.
21 (b) The refunding bonds authorized under this section may be
22 issued under the authority ofArticle 11 (commencing with Section
23 53580) of Chapter 3 of Part I of Division 2 of Title 5 of the
24 Government Code,and the refunding bonds may be sold at public
25 or private sale, or to a joint powers authority pursuant to the
26 Marks-Roos Local Bond Pooling Act(Article 4(commmencing with
27 Section 6584) of Chapter 5 of Division 7 of Title 1 of the
28 Government Code).
29 (c) (1) Prior to incurring any bonds or other indebtedness
30 pursuant to this section,the successor agency may subordinate to
31 the bonds or other indebtedness the amount required to be paid to
32 an affected taxing entity pursuant to paragraph(1)of subdivision
33 (a) of Section 34183, provided that the affected taxing entity has
34 approved the subordinations pursuant to this subdivision.
35 (2) At the time the successor agency requests an affected taxing
36 entity to subordinate the amount to be paid to it, the successor
37 agency shall provide the affected taxing entity with substantial
38 evidence that sufficient funds will be available to pay both the debt
39 service on the bonds or other indebtedness and the payments
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I required by paragraph (1) of subdivision (a) of Section 34183,
2 when due.
3 (3) Within 45 days after receipt of the agency's request, the
4 affected taxing entity shall approve or disapprove the request for
5 subordination.An affected taxing entity may disapprove a request
6 for subordination only if it finds,based upon substantial evidence,
7 that the successor agency will not be able to pay the debt service
8 payments and the amount required to be paid to the affected taxing
9 entity.If the affected taxing entity does not act within 45 days after
10 receipt of the agency's request,the request to subordinate shall be
I I deemed approved and shall be final and conclusive.
12 (d) An action may be brought pursuant to Chapter 9
13 (commencing with Section 860)of Title 10 of Part 2 of the Code
14 of Civil Procedure to determine the validity of bonds or other
15 obligations authorized by this section, the pledge of revenues to
16 those bonds or other obligations authorized by this section, the
17 legality and validity of all proceedings theretofore taken and, as
18 provided in the resolution of the legislative body of the successor
19 agency authorizing the bonds or other obligations authorized by
20 this section,proposed to be taken for the authorization,execution,
21 issuance, sale, and delivery of the bonds or other obligations
22 authorized by this section, and for the payment of debt service on
23 the bonds or the payment of amounts under other obligations
24 authorized by this section. Subdivision(c)of Section 33501 shall
25 not apply to any such action. The Department of Finance shall be
26 notified of the filing of any action as an affected party.
27 (e) Notwithstanding any other law, including, but not limited
28 to, Section 33501, an action to challenge the issuance of bonds,
29 the incurrence of indebtedness,the amendment of an enforceable
30 obligation,or the execution of a financing agreement by a successor
31 agency shall be brought within 30 days after the date on which the
32 oversight board approves the resolution of the successor agency
33 approving the issuance of bonds, the incurrence of indebtedness,
34 the amendment of an enforceable obligation, or the execution of
35 a financing agreement authorized tinder this section.
36 (f) The actions authorized in this section shall be subject to the
37 approval of the oversight board, as provided in Section 34180.
38 Additionally,an oversight board may direct the successor agency
39 to commence any of the transactions described in subdivision (a)
40 so long as the successor agency is able to recover its related costs
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HB -65- Item 6. - 20
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1 in connection with the transaction.After a successor agency,with
2 approval of the oversight board, issues any bonds, incurs any
3 indebtedness, or executes an amended enforceable obligation
4 pursuant to subdivision (a), the oversight board shall not
5 unilaterally approve any amendments to or early termination of
6 the bonds, indebtedness, or enforceable obligation. If, under the
7 authority granted to it by subdivision (h) of Section 34179, the
8 Department of Finance either reviews and approves or fails to
9 request review within five business days of an oversight board
10 approval of an action authorized by this section, the scheduled
I 1 payments on the bonds or other indebtedness shall be listed in the
12 Recognized Obligation Payment Schedule and shall not be subject
13 to further review and approval by the department or the Controller.
14 The department may extend its review time to 60 days for actions
15 authorized in this section and may seek the assistance of the
16 Treasurer in evaluating proposed actions under this section.
17 (g) Any bonds,indebtedness,or amended enforceable obligation
18 authorized by this section shall be considered indebtedness incurred
19 by the dissolved redevelopment agency,with the same legal effect
20 as if the bonds, indebtedness, financing agreement, or amended
21 enforceable obligation had been issued, incurred, or entered into
22 prior to June 29, 2011, in full conformity with the applicable
23 provisions of the Community Redevelopment Law that existed
24 prior to that date, shall be included in the successor agency's
25 Recognized Obligation Payment Schedule, and shall be secured
26 by a pledge of, and lien on, and shall be repaid from moneys
27 deposited from time to time in the Redevelopment Property Tax
28 Trust Fund established pursuant to subdivision (c) of Section
29 34172, as provided in paragraph (2) of subdivision(a) of Section
30 34183.Property tax revenues pledged to any bonds,indebtedness,
31 or amended enforceable obligations authorized by this section are
32 taxes allocated to the successor agency pursuant to subdivision(b)
33 of Section 33670 and Section 16 of Article XVI of the California
34 Constitution.
35 (h) The successor agency shall snake diligent efforts to ensure
36 that the lowest long-term cost financing as obtained.The financing
37 shall not provide for any bullets or spikes and shall not use variable
38 rates. The successor agency shall make use of an independent
39 financial advisor mi developing financing proposals and shall make
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1 the work products of the financial advisor available to the
2 Department of Finance at its request.
3 (i) (1) If an enforceable obligation provides for an irrevocable
4 commitment of property tax revenue and where allocation of such
5 revenues is expected to occur over time,the successor agency may
6 petition the Department of Finance to provide written confirmation
7 that its determination of such enforceable obligation as approved
8 in a Recognized Obligation Payment Schedule is final and
9 conclusive, and reflects the department's approval of subsequent
10 payments made pursuant to the enforceable obligation. If the
11 confirmation is granted, then the department's review of such
12. payments in future Recognized Obligation Payment Schedules
13 shall be limited to confirming that they are required by the prior
14 enforceable obligation.
15 (2) Prior to removal of an enforceable obligation from a
16 recognized obligation payment schedule for a successor agency
17 that has received a finding of completion from the Department of
18 Finance under Section 34179.7, the action shall be submitted to
19 the oversight board for review and approval.
20 0) The successor agency may request that the department
21 provide a written determination to waive the two-year statute of
22 limitations on an action to review the validity of the adoption or
23 amendment of a redevelopment plan pursuant to subdivision (c)
24 of Section 33500 or on any findings or determinations made by
25 the agency pursuant to subdivision (d) of Section 33500. The
26 department at its discretion may provide a waiver if it determines
27 it is necessary for the agency to fulfill an enforceable obligation.
28 SEC. 3. Section 34180 of the Health and Safety Code is
29 amended to read:
30 34180. All of the following successor agency actions shall first
31 be approved by the oversight board:
32 (a) The establishment of new repayment terms for outstanding
33 loans where the terms have not been specified prior to the date of
34 this part. An oversight board shall not have the authority to
35 reestablish loan agreements between the successor agency and the
36 city, county, or city and county that fonned the redevelopment
37 agency except as provided in Chapter 9(commencing with Section
38 34191.1).
39 (b) The issuance of bonds or other indebtedness or the pledge
40 or agreement for the pledge of property tax revenues(forinerly tax
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HB -67- Item 6. - 22
-15 — SB 1129
1 increment prior to the effective date of this part) pursuant to
2 subdivision(a) of Section 34177.5.
3 (c) Setting aside of amounts in reserves as required by
4 indentures, trust indentures, or similar documents governing the
5 issuance of outstanding redevelopment agency bonds.
6 (d) Merging of project areas.
7 (e) Continuing the acceptance of federal or state grants,or other
8 forms of financial assistance from either public or private sources,
9 if that assistance is conditioned upon the provision of matching
10 funds, by the successor entity as successor to the former
11 redevelopment agency, in an amount greater than 5 percent.
12 (f) (1) If a city, county, or city and county wishes to retain any
13 properties or other assets for future redevelopment activities,
14 funded from its own funds and under its own auspices, it must
15 reach a compensation agreement with the other taxing entities to
16 provide payments to them in proportion to their shares of the base
17 property tax, as determined pursuant to Section 34188, for the
18 value of the property retained.
19 (2) If no other agreement is reached on valuation of the retained
20 assets, the value will be the fair market value as of the 2011
21 property tax lien date as determined by an independent appraiser
22 approved by the oversight board.
23 (3) This subdivision does not apply to the disposition of
24 properties pursuant to a long-range property management plan
25 (g) Establishment of the Recognized Obligation Payment
26 Schedule.
27 (h) A request by the successor agency to enter into an agreement
28 with the city, county, or city and county that formed the
29 redevelopment agency that it is succeeding. An oversight board
30 shall not have the authority to reestablish loan agreements between
31 the successor agency and the city, county,or city and county that
32 formed the redevelopment agency except as provided in Chapter
33 9(commencing with Section 34191.1).Any actions to reestablish
34 any other agreements that are in furtherance of enforceable
35 obligations,with the city, county, or city and county that formed
36 the redevelopment agency are invalid until they are included in an
37 approved and valid Recognized Obligation Payment Schedule.
38 (i) A request by a successor agency or taxing entity to pledge,
39 or to enter into an agreement for the pledge of, property tax
40 revenues pursuant to subdivision (b)of Section 34178.
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Item 6. - 23 HB -68-
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1 0) Any document submitted by a successor agency to an
2 oversight board for approval by any provision of this part shall
3 also be submitted to the county administrative officer, the county
4 auditor-controller,and the Department of Finance at the same time
5 that the successor agency submits the document to the oversight
6 board.
7 SEC, 4. Section. 34191.3 of the Health and Safety Code is
8 amended to read:
9 34191.3. Notwithstanding Section 34191.1, the requirements
10 specified in subdivision (e) of Section 34177 and subdivision(a)
11 of Section 34181 shall be suspended, except as those provisions
12 apply to the transfers for governmental use, until the Department
13 of Finance has approved a long-range property management plan
14 pursuant to subdivision(b)of Section 34191.5,at which point the
15 plan shall govern, and supersede all other provisions relating to,
16 the disposition and use of the real property assets of the former
17 redevelopment agency, including, but not limited to, subdivision
18 ()q of Section 34180.if the department has not approved-a plarrby
19 January 11 2015,
20 (a) of Section 34181 shall be operative with respeet to that
21
22 SEC, 5. Section 34191.4 of the Health and Safety Code is
23 amended to read:
24 34191.4. The following provisions shall apply to any successor
25 agency that has been issued a finding of completion by the
26 Department of Finance:
27 (a) All real property and interests in real property identified in
28 subparagraph (C) of paragraph (5) of subdivision (c) of Section
29 34179.5 shall be transferred to the Community Redevelopment
30 Property Trust Fund of the successor agency upon approval by the
31 Department of Finance of the long-range property management
32 plan submitted by the successor agency pursuant to subdivision
33 (b) of Section 34191.7 unless that property is subject to the
34 requirements of any existing enforceable obligation.
35 (b) (1) Notwithstanding subdivision(d)of Section 34171,upon
36 application by the successor agency and approval by the oversight
37 board, loan agreements entered into between the redevelopment
38 agency and the city,county, or city and county that created by the
39 redevelopment agency shall be deemed to be enforceable
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HB -69- Item 6. - 24
-17— SB 1129
1 obligations provided that the oversight board makes a finding that
2 the loan was for legitimate redevelopment purposes.
3 (2) If the oversight board finds that the loan is an enforceable
4 obligation, the accumulated interest on the remaining principal
5 amount of the loan shall be recalculated from origination at the
6 interest rate earned by funds deposited into the Local Agency
7 Investment Fund. The loan shall be repaid to the city, county, or
8 city and county in accordance with a defined schedule over a
9 reasonable term ofyears at an interest rate not to exceed the interest
10 rate earned by funds deposited into the Local Agency Investment
1 I Fund.The annual loan repayments provided for in the recognized
12 obligations payment schedules shall be subject to all of the
13 following limitations:
14 (A) Loan repayments shall not be made prior to the 2013-14
15 fiscal year. Beginning in the 2013-14 fiscal year, the maximum
16 repayment amount authorized each fiscal year for repayments
17 made pursuant to this subdivision and paragraph(7)of subdivision
18 (e) of Section 34176 combined shall be equal to one-half of the
19 increase between the amount distributed to the taxing entities
20 pursuant to paragraph (4) of subdivision(a) of Section 34183 in
21 that fiscal year and the amount distributed to taxing entities
22 pursuant to that paragraph in the 2012-13 base year. Loan or
23 deferral repayments made pursuant to this subdivision shall be
24 second in priority to amounts to be repaid pursuant to paragraph
25 (7) of subdivision(e)of Section 34176.
26 (B) Repayments received by the city,county or city and county
27 that formed the redevelopment agency shall first be used to retire
28 any outstanding amounts borrowed and owed to the Low and
29 Moderate Income Housing Fund of the former redevelopment
30 agency for purposes of the Supplemental Educational Revenue
31 Augmentation Fund and shall be distributed to the Low and
32 Moderate Income Housing Asset Fund established by subdivision
33 (d)of Section 34176.
34 (C) Twenty percent of any loan repayment shall be deducted
35 from the loan repayment amount and shall be transferred to the
36 Low and Moderate Income Housing Asset Fund, after all
37 outstanding loans from the Low and Moderate Income Housing
38 Fund for purposes of the Supplemental Educational Revenue
39 Augmentation Fund have been paid.
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I (c) (1) Bond proceeds derived from bonds issued on or before
2 December 31, 2010, shall be used for the purposes for which the
3 bonds were sold.
4 (2) (A) Notwithstanding Section 34177.3 or any other
5 conflicting provision of law, bond proceeds in excess of the
6 amounts needed to satisfy approved enforceable obligations shall
7 thereafter be expended in a manner consistent with the original
8 bond covenants. Enforceable obligations may be satisfied by the
9 creation of reserves for projects that are the subject of the
10 enforceable obligation and that are consistent with the contractual
11 obligations for those projects,or by expending funds to complete
12 the projects.An expenditure made pursuant to this paragraph shall
13 constitute the creation of excess bond proceeds obligations to be
14 paid from the excess proceeds.Excess bond proceeds obligations
15 shall be listed separately on the Recognized Obligation Payment
16 Schedule submitted by the successor agency.
17 (B) If remaining bond proceeds cannot be spent in a manner
18 consistent with the bond covenants pursuant to subparagraph(A),
19 the proceeds shall be used to defease the bonds or to purchase
20 those same outstanding bonds on the open market for cancellation.
21 (d) Notwithstanding subdivision (b) of Section 34163, if a
22 successor agency has received a finding of completion, the
23 successor agency may enter into, or amend existing, contracts and
24 agreements, or otherwise administer projects in connection with
25 enforceable obligations approved pursuant to subdivision (m) of
26 Section 34177, including the substitution of private developer
27 capitol in a disposition and development agreement that has been
28 deemed an enforceable obligation, if the contract, agreement, or
29 project will not commit new property tax funds, and will not
30 otherwise reduce property tax revenues or payments made pursuant
31 toparagraph (4) ofsubdivision (a)of Section 34183 to the taxing
32 agencies.
33 SEC. 6. Section 34191.5 of the Health and Safety Code is
34 amended to read:
35 34191.5. (a) There is hereby established a Community
36 Redevelopment Property Trust Fund,administered by the successor
37 agency, to serve as the repository of the former redevelopment
38 agency's real properties identified in subparagraph(C)of paragraph
39 (5) of subdivision(c)of Section 34179.5.
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1413 _-71- Item 6. - 26
SR 1.1.29
1 (b) The successor agency shall prepare a long-range property
2 management plan that addresses the disposition and use of the real
3 properties of the former redevelopment agency. The report shall
4 be submitted to the oversight board and the Department of Finance
5 for approval no later than six months following the issuance to the
6 successor agency of the finding of completion.
7 (c) The long-range property management plan shall do all of
8 the following:
9 (1) Include an inventory of all properties in the trust. The
10 inventory shall consist of all of the following information:
I 1 (A) The date of the acquisition of the property and the value of
12 the property at that time, and an estimate of the current value of
13 the property.
14 (B) The purpose for which the property was acquired.
15 (C) Parcel data, including address, lot size, and current zoning
16 in the former agency redevelopment plan or specific,community,
17 or general plan.
18 (D) An estimate of the current value of the parcel including,if
1.9 available, any appraisal information.
20 (E) An estimate of any lease, rental, or any other revenues
21 generated by the property, and a description of the contractual
22 requirements for the disposition of those funds.
23 (F) The history of environmental contamination, including
24 designation as a brownfield site,any related environmental studies,
25 and history of any remediation efforts.
26 (G) A description of the property's potential for transit-oriented
27 development and the advancement of the planning objectives of
28 the successor agency.
29 (H) A brief history of previous development proposals and
30 activity,including the rental or lease of property.
31 (2) Address the use or disposition of all of the properties in the
32 trust, Permissible uses include the retention of the property for
33 governmental use pursuant to subdivision (a) of Section 34181,
34 the retention of the property for future development, the sale of
35 the property, or the use of the property to fulfill an enforceable
36 obligation.The plan shall separately identify and list properties in
37 the trust dedicated to governmental use purposes and properties
38 retained for purposes of fulfilling an enforceable obligation.With
39 respect to the use or disposition of all other properties, all of the
40 following shall apply:
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Item 6. - 27 HB -72-
SB 1129 —20-
1 (A) if the plan directs the use or liquidation of the property for
2 a project identified in an approved redevelopment plan,the property
3 shall transfer to the city,county,or city and county.
4 (B) 1f the plan directs the liquidation of the property or the use
5 of revenues generated from the property, such as lease or parking
6 revenues, for any purpose other than to fulfill an enforceable
-7 obligation or other than that specified in subparagraph (A), the
8 proceeds from the sale shall be distributed as property tax to the
9 taxing entities.
ld (C) Property shall not be transferred to a successor agency,city,
11 county, or city and county, unless the long-range property
12 management plan has been approved by the oversight board and
13 the Department of Finance.
14 (d) The department shall not require a compensation agreement
15 or agreements as part of the approval of a long-range property
16 management plan.
17 (e) The department shall only consider whether the long-range
18 property management plan makes a good faith effort to address
19 the requirements set forth in subdivision(c).
20 (f) The department shall approve long-range properly
21 management plans as expediously as possible.
O
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xB -73- Item 6. - 28
Page 1 of 1
Search Results
Thursday, March 13, 2014
AB 19453 (Atkins.D) Redevelopment. (Introduced: 2/19/2014)
Status: 3/3/2014-Referred to Com. on L. GOV.
Location: 3 3 2014-A. L. GOV.
Desk Policy Fiscal Floor DeskipolicylFiscallFloorlconf. Enrolled Vetoed Chaptered
1st House 2nd House Conc.
Summary: 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, subject to review by
oversight boards. The oversight board is required to direct a successor agency to, and a
successor agency is required to, among other things, dispose of assets and properties of
the former redevelopment agency as directed by the oversight board. Existing law
suspends this requirement, except as it applies to the transfer or assets and properties for
governmental use, until the Department of Finance has approved a long-range property
management plan, as specified. Upon approval of a long-range property management plan,
the plan governs and supersedes, all other provisions relating to the disposition and use of
the real property assets of the former redevelopment agency. If the department has not
approved a long-range property management plan by January 1, 2015, existing law
requires the property of a former redevelopment agency to be disposed of according to law.
This bill would eliminate this latter requirement that would apply the earlier provisions to
the disposal of the assets and properties of a former redevelopment agency.
Policy Committee Primary Lobbyist 2nd Lobbyist
(primary)
Housing community carrigg, Dan
and Economic
Development
Revenue--and—Taxation
League Position Position Taken Policy Committee Policy Analyst
(secondary)
Watch
Total Measures: 1
Total Tracking Forms: 1
3113/2014 926:05 AM
Item 6. - 29 1413 -74-
nup:/rct-)k l.capitoltrack.com/publis/search.aspx.,iu—au,+o5]99-37cd-42cd-8217-d l 9b4d25... 3/13/2014
CALIFORNIA LEGISLATURE-2013-14 REGULAR SESSION
.ASSEMBLY BILL No. 1963
Introduced by Assembly Members Atkins and Dickinson
February 19,2014
An act to amend Section 34191.3 of the Health and Safety Code,
relating to redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
AB 1963, as introduced, Atkins.Redevelopment.
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, subject to
review by oversight boards. The oversight board is required to direct a
successor agency to,and a successor agency is required to,among other
things, dispose of assets and properties of the former redevelopment
agency as directed by the oversight board. Existing law suspends this
requirement, except as it applies to the transfer or assets and properties
for governmental use,until the Department of Finance has approved a
long-range property management plan, as specified. Upon approval of
a long-range property management plan, the plan governs and
supersedes, all other provisions relating to the disposition and use of
the real property assets of the former redevelopment agency_ If the
department has not approved a long-range property management plan
by January 1, 2015, existing law requires the property Of a former
redevelopment agency to be disposed of according to law.
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HB -75- Item 6. - 30
AB 1963 —z—
This bill would eliminate this latter requirement that would apply the
earlier provisions to the disposal of the assets and properties of a former
reds:-•-!1,piucnt agency.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
i `�Fr`TiON 1. Section 34191.3 of the Health and Safety Code
.�11ded to read:
3 34191.3. Notwithstanding Section 34191.1, the requirements
4 specified in subdivision(e) of Section 34177 and subdivision (a)
5 of Section 34181 shall be suspended, except as those provisions
6 apply to the transfers for governmental use,until the Department
7 of Finance has approved a long-range property management plan
8 pursuant to subdivision(b)of Section 34191.5,at which point the
9 plan shall govern, and supersede all other provisions relating to,
10 the disposition and use of the real property assets of the former
11 redevelopment agency.
12 ,
13
14 to that weeessor-&�.
O
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Item 6. - 31 H13 -76-
Page 1 of 1
Search Results
Thursday, March 13, 2014
AB 1582 (Mullen D) Redevelopment: successor agencies: Recognized Obligation Payment
Schedule. (Introduced: 2/3/2014)
Status: 2/14/2014-Referred to Corns. on L. GOV. and APPR.
Location: 2/14/2014-A. L. GOV.
Desk Policy Fiscal Fioo Desk Polic Fiscal Floor Conf. Enrolled Vetoed Chaptered
1st House 2nd House Conc.
Summary: 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
would revise the timeline for the preparation of the required Recognized Obligation
Payment Schedule to provide that the successor agency prepare a schedule for an annual
fiscal period.
Policy Committee Primary Lobbyist 2nd Lobbyist
(primary)
Housing Community Carrigg, Dan
and Economic
Development
Revenue-and-Taxation
League Position Position Taken Policy Committee Policy Analyst
(secondary)
Watch
Total Measures: 1
Total Tracking Forms: 2
3113 20,4 9:26:25 AM
xB -77- Item 6. - 32
littp:/let3k 1.capitoltraek.cciiVpubli clsearch.aspx?id=ad485199-37cd-42cd-8217-dl9b4d25... 3/13/2014
CALIFORNIA LEGISLATURE-2013-14 REGULAR SESSION
ASSEMBLY BILL No. 1582
Introduced by Assembly Member Mullin
February 3,2014
An act to amend Section 34177 of the Health and Safety Code,
relating to redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
AB 1582,as introduced,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 would revise the timeline for the preparation of the required
Recognized Obligation Payment Schedule to provide that the successor
agency prepare a schedule for an annual fiscal period.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
The people of the State aI'California do enact as follows:
1 SECTION 1. Section 34177 of the Health and Safety Code is
2 amended to read:
99
Item 6. - 33 1113 -78-
AB 1582 —2-
1 34177. Successor agencies are required to do all of the
2 following:
3 (a) Continue to make payments due for enforceable obligations.
4 (1) On and after February 1, 2012, and until a Recognized
5 Obligation Payment Schedule becomes operative,only payments
6 required pursuant to an enforceable obligations payment schedule
7 shall be made.The initial enforceable obligation payment schedule
8 shall be the last schedule adopted by the redevelopment agency
9 under Section 34169. However, payments associated with
10 ouligations excluded from the definition of enforceable obligations
11 by paragraph (2) of subdivision (d) of Section 34171 shall be
12 excluded from the enforceable obligations payment schedule and
13 be removed from the last schedule adopted by the redevelopment
14 agency under Section 34169 prior to the successor agency adopting
15 it as its enforceable obligations payment schedule pursuant to this
16 subdivision. The enforceable obligation payment schedule may
17 be amended by the successor agency at any public meeting and
18 shall be subject to the approval of the oversight board as soon as
19 the board has sufficient members to form a quorum.In recognition
20 of the fact that the timing of the California Supreme Court's ruling
21 in the case California Redevelopment Association v. Matosantos
22 (2011) 53 CalAth 231 delayed the preparation by successor
23 agencies and the approval by oversight boards of the January 1,
24 2012, through June 30, 2012, Recognized Obligation Payment
25 Schedule, a successor agency may amend the Enforceable
26 Obligation Payment Schedule to authorize the continued payment
27 of enforceable obligations until the time that the January 1,2012,
28 through June 30,2012,Recognized Obligation Payment Schedule
29 has been approved by the oversight board and by the Department
30 of Finance.
31 (2) The Department of Finance and the Controller shall each
32 have the authority to require any documents associated with the
33 enforceable obligations to be provided to them in a manner of their
34 choosing. Any taxing entity, the department, and the Controller
35 shall each have standing to file a judicial action to prevent a
36 violation under this part and to obtain injunctive or other
37 appropriate relief.
38 (3) Commencing on the date the Recognized Obligation Payment
39 Schedule is valid pursuant to subdivision(I),only those payments
40 listed in the Recognized Obligation Payment Schedule may be
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HB -79- Item 6. - 34
—3— AB 1582
I made by the successor agency from the funds specified in the
2 Recognized Obligation Payment Schedule. In addition, after it
3 becomes valid,the Recognized Obligation Payment Schedule shall
4 supersede the Statement of Indebtedness, which shall no longer
5 be prepared nor have any effect under the Community
6 Redevelopment Law(Part 1 (commencing with Section 33000)).
7 (4) Nothing in the act adding this part is to be construed as
8 preventing a successor agency, with the prior approval of the
9 oversight board, as described in Section 34179, from making
10 payments for enforceable obligations from sources other than those
I 1 listed in the Recognized Obligation Payment Schedule.
12 (5) From February 1,2012,to July 1,2012,a successor agency
13 shall have no authority and is hereby prohibited from accelerating
14 payment or making any lump-sum payments that are intended to
15 prepay loans unless such accelerated repayments were required
16 prior to the effective date of this part.
17 (b) Maintain reserves in the amount required by indentures,
18 trust indentures, or similar documents governing the issuance of
19 outstanding redevelopment agency bonds.
20 (c) Perform obligations required pursuant to any enforceable
21 obligation.
22 (d) Remit unencumbered balances of redevelopment agency
23 funds to the county auditor-controller for distribution to the taxing
24 entities, including,but not limited to, the unencumbered balance
25 of the Low and Moderate Income Housing Fund of a former
26 redevelopment agency. In making the distribution, the county
27 auditor-controller shall utilize the same methodology for allocation
28 and distribution of property tax revenues provided in Section
29 34188.
30 (e) Dispose of assets and properties of the former redevelopment
31 agency as directed by the oversight board;provided,however,that
32 the oversight board may instead direct the successor agency to
33 transfer ownership of certain assets pursuant to subdivision(a)of
34 Section 34181. The disposal is to be done expeditiously and in a
35 wanner aimed at maximizing value.Proceeds from asset sales and
36 related funds that are no longer needed for approved development
37 projects or to otherwise wind down the affairs of the agency, each
38 as determined by the oversight board, shall be transferred to the
39 county auditor-controller for distribution as property tax proceeds
40 under Section 34188. The requirements of this subdivision shall
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Item 6. - 35 HB -80-
AB 1582 —4—
1 not apply to a successor agency that has been issued a finding of
2 completion by the Department of Finance pursuant to Section
3 141 71.7.
4 (f) Enforce all former redevelopment agency rights for the
5 benefit of the taxing entities, including, but not limited to,
6 continuing to collect loans,rents,and other revenues that were due
7 to the redevelopment agency.
8 (g) Effectuate transfer of housing functions and assets to the
9 q nrr-nriate entity designated pursuant to Section 34176.
1 U �, Lxpeditiously wind down the affairs of the redevelopment
11 agency pursuant to the provisions of this part and in accordance
12 with the direction of the oversight board.
13 (i) Continue to oversee development of properties until the
14 contrasted work has been completed orthe contractual obligations
15 of the former redevelopment agency can be transferred to other
16 parties. Bond proceeds shall be used for the purposes for which
17 bonds were sold unless the purposes can no longer be achieved,
18 in which case,the proceeds may be used to defease the bonds.
19 0) Prepare a proposed administrative budget and submit it to
24 the oversight board for its approval.The proposed administrative
21 budget shall include all of the following:
22 (1) Estimated amounts for successor agency administrative costs
23 for the upcoming six-month fiscal period.
24 (2) Proposed sources of payment for the costs identified in
25 paragraph (1).
26 (3) Proposals for arrangements for administrative and operations
27 services provided by a city,county,city and county,or other entity.
28 (k) Provide administrative cost estimates, from its approved
29 administrative budget that are to be paid from property tax revenues
34 deposited in the Redevelopment Property Tax Trust Fund, to the
31 county auditor-controller for each six-month fiscal period.
32 (1) (1) Before each-Ax-megth annual fiscal period, prepare a
33 Recognized Obligation Payment Schedule in accordance with the
34 requirements of this paragraph. For each recognized obligation,
35 the Recognized Obligation Payment Schedule shall identify one
36 or more of the following sources of payment:
37 (A) Low and Moderate Income Housing fund.
38 (B) Bond proceeds.
39 (C) Reserve balances.
44 (D) Administrative cost allowance.
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RB -g 1- Item 6. - 36
—5— AB 1582
1 (E) The Redevelopment Property Tax Trust Fund, but only to
2 the extent no other funding source is available or when payment
3 from property tax revenues is required by an enforceable obligation
4 or by this part.
5 (F) Other revenue sources, including rents, concessions, asset
6 sale proceeds, interest earnings, and any other revenues derived
7 from the former redevelopment agency, as approved by the
8 oversight board in accordance with this part.
9 (2) A Recognized Obligation Payment Schedule shall not be
10 deemed valid unless all of the following conditions have been met:
11 (A) A Recognized Obligation Payment Schedule is prepared
12 by the successor agency for the enforceable obligations of the
13 former redevelopment agency. The initial schedule shall project
14 the dates and amounts of scheduled payments for each enforceable
15 obligation for the remainder of the time period during which the
16 redevelopment agency would have been authorized to obligate
17 property tax increment had the redevelopment agency not been
18 dissolved.
19 (B) The Recognized Obligation Payment Schedule is submitted
20 to and duly approved by the oversight board.The successor agency
21 shall submit a copy of the Recognized Obligation Payment
22 Schedule to the county administrative officer, the county
23 auditor-controller,and the Department of Finance at the same time
24 that the successor agency submits the Recognized Obligation
25 Payment Schedule to the oversight board for approval.
26 (C) A copy of the approved Recognized Obligation Payment
27 Schedule is submitted to the county auditor-controller and both
28 the Controller's office and the Department of Finance and be posted
29 on the successor agency's Internet Web site.
30 (3) The Recognized Obligation Payment Schedule shall be
31 forward looking to the next six months- year for the period
32 commencing on January 1, 2015.The first Recognized Obligation
33 Payment Schedule shall be submitted to the Controller's office
34 and the Department of.Finance by April 15, 2012, for the period
35 of January 1, 2012,to June 30, 2012, inclusive.This Recognized
36 Obligation Payment Schedule shall include all payments made by
37 the fonnerredevelopment agency between January 1,2012,through
38 January 31, 2012, and shall include all payments proposed to be
39 made by the successor agency from February 1, 2012, through
40 June 30, 2012. Fonner redevelopment agency enforceable
99
Item 6. - 37 HB -82-
AS 1582 —6-
1 obligation payments due, and reasonable or necessary
2 administrative costs due or incurred,prior to January 1,2012,shall
3 be made from property tax revenues received in the spring of 2011
4 property tax distribution, and from other revenues and balances
5 transferred to the successor agency.
6 (in) The Recognized Obligation Payment Schedule for the period
7 of January 1, 2013, to June 30, 2013, shall be submitted by the
8 successor agency, after approval by the oversight board, no later
9 than September 1, 2012. Commencing with the Recognized
10 Obligation Payment Schedule covering the period July 1, 2013,
11 through December 31, 2013, successor agencies shall submit an
12 oversight board-approved Recognized Obligation Payment
13 Schedule to the Department of Finance and to the county
14 auditor-controller no fewer than 90 days before the date of property
15 tax distribution. The Department of Finance shall make its
16 determination of the enforceable obligations and the amounts and
17 funding sources of the enforceable obligations no later than 45
18 days after the Recognized Obligation Payment Schedule is
19 submitted. Within five business days of the department's
20 determination, a successor agency may request additional review
21 by the department and an opportunity to meet and confer on
22 disputed items.The meet and confer period may vary;an untimely
23 submittal of a Recognized Obligation Payment Schedule may result
24 in a meet and confer period of less.than 30 days.The department
25 shall notify the successor agency and the county auditor-controllers
26 as to the outcome of its review at least 15 days before the date of
27 property tax distribution.
28 (1) The successor agency shall submit a copy of the Recognized
29 Obligation Payment Schedule to the Department of Finance
30 electronically, and the successor agency shall complete the
31 Recognized Obligation Payment Schedule in the manner provided
32 for by the department. A successor agency shall be in
33 noncompliance with this paragraph if it only submits to the
34 department an electronic message or a letter stating that the
35 oversight board has approved a Recognized Obligation Payment
36 Schedule.
37 (2) If a successor agency does not submit a Recognized
38 Obligation Payment Schedule by the deadlines provided in this
39 subdivision. the city, county, or city and county that created the
40 redevelopment agency shall be subject to a civil penalty equal to
99
HB _83_ Item 6. - 38
—7— AB 11582
1 ten thousand dollars($10,000)per day for every day the schedule
2 is not submitted to the department.The civil penalty shall be paid
3 to the county auditor-controller for allocation to the taxing entities
4 under Section 34183. If a successor agency fails to submit a
5 Recognized Obligation Payment Schedule by the deadline, any
6 creditor of the successor agency or the Department of Finance or
7 any affected taxing entity shall have standing to and may request
8 a writ of mandate to require the successor agency to immediately
9 perform this duty. Those actions may be filed only in the County
10 of Sacramento and shall have priority over other civil matters.
11 Additionally,if an agency does not submit a Recognized Obligation
12 Payment Schedule within 10 days of the deadline, the maximum
13 administrative cost allowance for that period shall be reduced by
14 25 percent.
15 (3) If a successor agency fails to submit to the department an
16 oversight board-approved Recognized Obligation Payment
17 Schedule that complies with all requirements of this subdivision
18 within five business days of the date upon which the Recognized
19 Obligation Payment Schedule is to be used to determine the amount
20 of property tax allocations,the department may determine if any
21 amount should be withheld by the county auditor-controller for
22 payments for enforceable obligations from distribution to taxing
23 entities, pending approval of a Recognized Obligation Payment
24 Schedule.The county auditor-controller shall distribute the portion
25 of any of the sums withheld pursuant to this paragraph to the
26 affected taxing entities in accordance with paragraph (4) of
27 subdivision (a) of Section 34183 upon notice by the department
28 that a portion of the withheld balances are in excess of the amount
29 of enforceable obligations. The county auditor-controller shall
30 distribute withheld funds to the successor agency only in
31 accordance with a Recognized Obligation Payment Schedule
32 approved by the department.County auditor-controllers shall lack
33 the authority to withhold any other amounts from the allocations
34 provided for under Section 34183 or 34188, unless required by a
35 court order.
36 (n) Cause a postaudit of the financial transactions and records
37 of the successor agency to be made at least annually by a certified
38 public accountant.
O
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Item 6. - 39 1113 -84-