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HomeMy WebLinkAboutRequest for City Council approval for a City position of opp Dept ID AD 15-018 Page 1 of 3 Meeting Date 6/15/2015 I ,Wwo vc'�i 6 —D - 4�6Se^Z) CITY OF HUNTINGTON BEACH , REQUEST FOR CITY COUNCIL ACTION f MEETING DATE: 6/15/2015 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: Request for City Council approval for a City position of opposition for AB 57 Wireless Telecommunications Facilities, position of opposition for AB 45 Household Hazardous Waste, position of opposition for the Department of Finance Redevelopment Dissolution Trailer Bill, and adopt Resolution 2015-27 supporting Senator Janet Nguyen's Senate Constitutional Amendment 2, which would prohibit State funded Post-Secondary Educational Institutions from banning the display of the American flag Statement of Issue At the May 26, 2015, Intergovernmental Relations Committee, the Committee recommended positions on the following legislative items AB 57 Wireless Telecommunications Facilities (Quirk D) — Oppose, AB 45 Household Hazardous Waste (Mullin D) — Oppose, Department of Finance Redevelopment Trailer Bill — Oppose, and a Resolution supporting Senator Janet Nguyen's Senate Constitutional Amendment — 2, which would prohibit State funded Post-Secondary Educational Institutions from banning the display of the American flag Financial Impact N/A Recommended Action A) Approve a City position of opposition for AB 57 Wireless Telecommunications Facilities, and, B) Approve a City position of opposition for AB 45 Household Hazardous Waste, and, C) Approve a City position of opposition on the Department of Finance Redevelopment Dissolution Trailer Bill, and, D) Adopt Resolution 2015-27, "A Resolution of the City Council of the City of Huntington Beach In Support of Senate Constitutional Amendment 2"which would prohibit State funded Post-Secondary Educational Institutions from banning the display of the American flag," and, E) Authorize the Mayor to sign City position letters on AB 57, AB 45, and Department of Finance Redevelopment Dissolution Trailer Bill as approved by the City Council Alternative Action(s) Do not approve the recommended actions and direct staff accordingly Item 13. - 1 HB -126- Dept ID AD 15-018 Page 2 of 3 Meeting Date 6/15/2015 Analysis At the May 26, 2015 Intergovernmental Relations Committee (IRC) Meeting, Committee Members heard several items and reviewed the updated Matrix of current legislation prepared by Townsend Public Affairs Several items are being recommended for a City position by the IRC as outlined below AB 57 Wireless Telecommunications Facilities (Quirk D)— IRC Recommendation Oppose This bill would exceed the Federal mandates regarding the collocation or siting of wireless telecommunications facilities by deeming approved, any application, for either collocation or siting of a new wireless telecommunication facility, if a city or county fails to approve or disapprove the application within time periods established in 2009, as reasonable by the FCC Local Control of this process is at risk AB 45 Household Hazardous Waste (Mullin D) — IRC Recommendation Oppose This bill would require jurisdictions to create a household hazardous waste (HHW) base line by creating HHW collection programs with an emphasis on curbside and door-to-door collection, and to meet a diversion requirement for HHW collection that is 15% above the established base line The bill would impose requirements on local governments for HHW public education, compliance and reporting, and would require local jurisdictions to adopt an HHW ordinance or face expedited deadlines for reporting and compliance Department of Finance Redevelopment Dissolution Trailer Bill — IRC Recommendation Oppose Certain provisions reverse incentive and due process provisions in AB1484 as follows 1) Overturns recent Court of Appeal decision upholding reentered agreements approved by Oversight Boards 2) Undoes incentives previously offered to successor agencies to make three required payments to become eligible for a DOF "finding of completion " 3) Retroactively undoes the effects of the February 13, 2015, ruling in Glendale v DOF over the appropriate method of calculating interest rates on reinstated loans This portion of the bill has the most impact to Huntington Beach as City stands to lose up to$67M if h1stonc Interest rates(going back to 1977) for the City/RDA loan are not considered 4) Undercuts local agency ability to protect legal rights by revoking statutory authority to recover legal costs outside of existing administrative cost cap 5) Retroactively repeals authority for cities to make loans to successor agencies approved by oversight boards for"project-related expenses" 6) Imposes interest restrictions on other such loans and makes repayment subordinate to all other payments and only if funding available 7) Retroactively exempts all DOF actions from the Administrative Procedures Act 8) Retroactively prohibits previously authorized work associated with "winding down" the work of a former redevelopment agency Resolution 2015-XX supporting Senator Janet Nguyen's Senate Constitutional Amendment 2 Senator Janet Nguyen is requesting that the City support SCA 2 to prohibit banning the U S flag on state funded college campuses This action was prompted by the recent action of the University of California Irvine's Legislative Student Council who passed a resolution that banned the display of the American Flag, citing potential negative interpretation of the flag The action was ultimately vetoed However, Senator Nguyen wants to ensure that this does not occur at another campus in the future ors -i 27- Item 13. - 2 Dept ID AD 15-018 Page 3 of 3 Meeting Date 6/15/2015 Environmental Status NA Strategic Plan Goal Improve quality of life Attachment(s) 1 AB 57 Wireless Telecommunications Facilities (Quirk D) 2 AB 45 Household Hazardous Waste (Mullin D) 3 May Revise— RDA Trailer BIII 4 League of California Cities May Revise - Key Issues with Department of Finance Redevelopment Trailer Bill 5 Letter from Senator Janet Nguyen regarding SCA 2 6 Resolution No 2015-27, "A Resolution of the City Council of the City of Huntington Beach In Support of Senate Constitutional Amendment 2 " Item 13. - 3 HB -128- ga Raw= ' Mm� N ATTAUO * n L AMENDED IN ASSEMBLY APRIL 6, 2015 AMENDED IN ASSEMBLY MARCH 26, 2015 CALIFORNIA LEGISLATURE-2015-16 REGULAR SESSION ASSEMBLY BILL No. 57 Introduced by Assembly Member Quirk December 2, 2014 An aet to amend Seetton 8886 of the Government Code, relattng to eommunteaftoffs—An act to add Section 65964 1 to the Government Code, relating to telecommunications LEGISLATIVE COUNSEL'S DIGEST AB 57,as amended,Quirk Telecommunications wireless telecommunication facilities Existing law requires a city, including a charter city, or county to administratively approve an application for a collocation facility on or immediately adjacent to a wireless telecommunications collocation facility, as defined, through the issuance of a building permit or a nondiscretionary permit, as specified Existing law prohibits a city or county from taking certain actions as a condition of approval of an application for a permit for construction or reconstruction for a development project for a wireless telecommunications facility Under existingfederal law, the Federal Communications Commission issued a ruling establishing reasonable time periods within which a local government is required to act on a colocation or siting application for a wireless telecommunications facility This bill would provide that a colocation or siting application for a wireless telecommunications facility is deemed approved, if the city or county fails to approve or disapprove the application within the time 97 H B -129- Item 13. - 4 AB57 1 —2— periods established by the commission and all required public notices have been provided regarding the application state or loeai statute or regttlatten that may prohtbtt or have the effeet intrastate teleeommunieations servtee However, this proviston does nondiseritntnatory basts, f-or use of pubhe fights of-way on -a Under extstmg law,telegraph or telephone eorporaftons may eonstrue ltnes of telegraph or telephone ltnes along and upon any pubite road or htghway, along or aeross any of the waters or lands wtthtn the state, and may ereet related poles,posts,pteirs,abutments,and other neeessary deelares the tntent of the Legislature that, eonststent wtth this as to the time, plaee, and manner tn whteh roads, highways, and wtaem�ays are aeeessed,but that for the eoFArol to be reasonable it must, goventment f6r the pttrpese of promoting broadband deployment in ttnsefved and underserved areas of the state and broadband adoptton to that purpose, and speetfies the membershtp of the eounet! to promote the deployment of eommuntealtons ttifTastrueture by the Board of 9treetors of the League of Galifi3rnia Gtties and the of > or their respeetwe designees, to the membershtp of the - Vote majority Appropriation no Fiscal committee ono State-mandated local program no 97 Item 13. - 5 FIB -13'o- —3— AB 57 The people of the State of California do enact as follows 1 SECTION] Section 659641 is added to the Government Code, 2 to read 3 65964 1 (a) A colocation or siting application for a wireless 4 telecommunications facility, as defined in Section 65850 6, shall 5 be deemed approved if both of the following occur 6 (1) The city or county fails to approve or disapprove the 7 application within the time periods established by the Federal 8 Communications Commission in In re Petition for Declaratory 9 Ruling, 24 FCC Rcd 13994 (2009) 10 (2) All public notices regarding the application have been 11 provided consistent with the public notice requirements for the 12 application 13 (b) The Legislature finds and declares that a wireless 14 telecommunications facility has a significant economic impact in 15 California and is not a municipal affair as that term is used in 16 Section 5 of Article XI of the California Constitution, but is a 17 matter of statewide concern 18 SFGTIG�4 1 The L�egtsjature finds and deelares all of the 19 €e1}ewmg. 20 , 21 22 unpreeedented rMe intemet based produets and deviees,tneittdtng 23 smartphones and tablets, 24 wah new—ehotees o eenneet,to eammunieate, and to 25 t4irmatton and _tetl,.._.V. ent 26 , and advaneed 27 wtreress and wireltne broadbandmftastrue nttal t 28 29 30 31 deploymerA serves impoftant interests, but at the same finie-, 32 Gaitf-ornta must take steps to ensure that reqttiretnents do not lmnder 33 34 to ehmmate unneeessary bamers and spur deployment -of 35 36 to reduee delay and eost, 37 38 eonsumer and eommutitty benefits, 97 HB -131- Item 13. - 6 AB 57 —4— l , 2 power of mobile eommunteattons ts a erttteal too! for first 3 4 Communteations Gommtssion, 5 made from mobtle telephones, and that pereentage ts growing.- 6 , 7 teehnology drtven eeotiotny, 8 and provide them wtth the proper tools and teehnalogtes to bolster 9 aeadernte aehtevement, 10 1 l n_..4......, based networks 12 13 , 14 whieh ean help Galiforntans remotely monitor thetr health whtle 15 16 17 and a driver for new bustness and jobs Bttstnesses tnereasingly 18 19 20 btistnesses surveyed use smaftphones to eonduet business and 21 ' 22 , 23 24 25 as—one—trrl-rivr two hundred Trorr-zrorrar3 27 , 28 tntliton newjobs, nationally, 29 30 promote the deployment of eommmieations inftastrueture by 31 32 efitteal to fneefing the stntng demand by California residents fb 33 34 , 35 and brjdging the digital dtvtde by inereastng aeeess for more 36 Gaitfomans to tmproved edueatton, health eare, and eeonomte 37 39 rea4- 97 Item 13. - 7 H B -132- -5— AB 57 1 8886 (a) The membershtp of the Gaitfornta Broadband Comet! 2 shall tnelude all of the f;31!owtng- 3 . 4 , 5 her designee.- 6 ,or hts or her designee 7 , or hts or her 8 des}gnee 9 , or his or her destgnee 10 , or hts or her designee 11 , 12 or his or her destgnee 13 ,appotnted by the Senate CommAtee 14on Rules- 15 , appotnted by the Speaker of. 16 theAssernbly- 17 (4 0) The PFestdent of the Board of 9treetors of the League of 18 Gaitfornta Gtttes, 19 20 State Assoetalion of Counties, or his oir her destg..,, 21 (b) Membeirs of the Lepslature appointed to the eotmetl shall 22 23 24 O 97 HB -133- Item 13. - 8 ATTACHMENT #2 AMENDED IN ASSEMBLY APRIL 30, 2015 AMENDED IN ASSEMBLY APRIL 23, 2015 AMENDED IN ASSEMBLY APRIL 13, 2015 AMENDED IN ASSEMBLY MARCH 19, 2015 CALIFORNIA LEGISLATURE-2015-16 REGULAR SESSION ASSEMBLY BILL No. 45 Introduced by Assembly Member Mullin December 1, 2014 An act to add Article 3 4 (commencing with Section 47120) to Chapter 1 of Part 7 of Division 30 of the Public Resources Code,relating to hazardous waste LEGISLATIVE COUNSEL'S DIGEST AB 45, as amended,Mullin Household hazardous waste The California Integrated Waste Management Act of 1989, which is administered by the Department of Resources Recycling and Recovery, requires, among other things, each city and each county to prepare a household hazardous waste element containing specified components, and to submit that element to the department for approval Existing law requires the department to approve the element if the local agency demonstrates that it will comply with specified requirements A city or county is required to submit an annual report to the department summarizing its progress in reducing solid waste, including an update of the jurisdiction's household hazardous waste element This bill would require each jurisdiction that provides for the residential collection and disposal of solid waste to increase the collection and diversion of household hazardous waste in its service 95 Item 13. - 9 HB -134- AB 45 —2— area, on or before July 1, 2020, by 15% over a baseline amount, to be determined in accordance with department regulations The bill would authorize the department to adopt a model ordinance for a comprehensive program for the collection of household hazardous waste to facilitate compliance with those provisions, and would require each Jurisdiction to annually report to the department on progress achieved in complying with those provisions. By imposing new duties on local agencies, the bill would impose a state-mandated local program 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 no reimbursement is required by this act for a specified reason Vote majonty Appropriation no Fiscal committee yes State-mandated local program yes The people of the State of California do enact as follows 1 SECTION 1 (a) The Legislature finds and declares all of the 2 following 3 (1) Household hazardous waste is creating environmental, 4 health, and workplace safety issues Whether due to unused 5 pharmaceuticals, batteries, medical devices, or other disposable 6 consumer items, effective and efficient disposal remains an 7 extraordinary challenge 8 (2) State and local efforts to address disposal of these items 9 have been well intended and, in some cases, effective However, 10 even the most effective programs have very low consumer 11 participation Other approaches being promoted throughout the 12 state would fragment the collection of household hazardous waste 13 and move collection away from consumer convenience 14 (3) In addition to other programs for the collection of household 15 hazardous waste,a number of cities in California are already using 16 curbside household hazardous waste collection programs, 17 door-to-door household hazardous waste collection programs,and 18 household hazardous waste residential pickup services as 19 mechanisms for collecting and disposing of many commonly used 20 household items for which disposal has been the subject of state 21 legislation or local ordinances The waste disposal companies and 22 local governments that have implemented these programs have 95 HB -135- Item 13. - 10 -3— AB 45 1 found them to be valuable components of a comprehensive 2 approach to the management of household hazardous waste 3 (4) There is also an appropriate role for manufacturers and 4 distributors of these products in comprehensive efforts to more 5 effectively manage household hazardous waste That role should 6 be based on the ability of manufacturers and distributors to 7 communicate with consumers 8 (b) It is the intent of the Legislature to enact legislation that 9 would establish curbside household hazardous waste collection 10 programs, door-to-door household hazardous waste collection 11 programs, and household hazardous waste residential pickup 12 services as the principal means of collecting household hazardous 13 waste and diverting it from California's landfills and waterways 14 SEC 2 Article 3 4(commencing with Section 47120)is added 15 to Chapter 1 of Part 7 of Division 30 of the Public Resources Code, 16 to read 17 18 Article 3 4 Household Hazardous Waste Collection and 19 Reduction 20 21 47120. For purposes of this article, the following terms have 22 the following meanings 23 (a) "Comprehensive program for the collection of household 24 hazardous waste"means a local program that-rnelttdes may include, 25 but is not limited to, the following components 26 (1) Utilization of locally sponsored collection sites 27 (2) Scheduled and publicly advertised drop off days 28 (3) Door-to-door collection programs 29 (4) Mobile collection programs 30 (5) Dissemination of information about how consumers should 31 dispose of the various types of household hazardous waste. 32 (6) Education programs to promote consumer understanding 33 and use of the local components of a comprehensive program. 34 (b) "Household hazardous waste" includes, but is not limited 35 to,the following 36 (1) Automotive products, including, but not limited to, 37 antifreeze, batteries, brake fluid, motor oil, oil filters, fuels, wax, 38 and polish 39 (2) Garden chemicals, including, but not limited to, fertilizers, 40 herbicides, insect sprays, pesticides, and weed killers 95 Item 13. - 11 HB -136- AB 45 —4- 1 (3) Household chemicals,including,but not limited to,ammonia, 2 cleaners, strippers, and rust removers 3 (4) Paint products, including, but not limited to, paint, caulk, 4 glue, stripper,thinner,and wood preservatives and stain. 5 (5) Consumer electronics, including, but not limited to, 6 televisions, computers, laptops, monitors, keyboards, DVD and 7 CD players, VCRs, MP3 players, cell phones, desktop printers, 8 scanners, fax machines, mouses, microwaves, and related cords 9 (6) Swimming pool chemicals, including, but not limited to, 10 chlorine tablets and liquids, pool acids, and stabilizers. 11 (7) Household battenes For purposes of this section,"household 12 batteries" means batteries that individually weigh two kilograms 13 or less of mercury, alkaline, carbon-zinc, or nickel-cadmium, and 14 any other batteries typically generated as household waste, 15 including, but not limited to, batteries used to provide power for 16 consumer electronic and personal goods often found in a household 17 (8) Fluorescent tubes and compact florescent lamps 18 (9) Mercury-containing items, including, but not limited to, 19 thermometers,thermostats, and switches 20 (10) Home-generated sharps waste,as defined in Section 117671 21 of the Health and Safety Code 22 (1 1) Home-generated pharmaceutical waste For purposes of 23 this section, "home-generated pharmaceutical waste" means a 24 prescription or nonprescription drug, as specified in Section 4022 25 or 4025 1 of the Business and Professions Code, that is a waste 26 generated by a household or households "Home-generated 27 pharmaceutical waste"shall not include drugs for which producers 28 provide a take-back program as a part of a United States Food and 29 Drug Administration managed risk evaluation and mitigation 30 strategy pursuant to Section 355-1 of Title 21 of the United States 31 Code, or waste generated by a business, corporation, limited 32 partnership, or an entity involved in a wholesale transaction 33 between a distnbutor and a retailer 34 47121 (a) (1) On or before July 1, 2020, each jurisdiction 35 shall increase its collection and diversion of household hazardous 36 waste in its service area by 15 percent over its baseline amount, 37 as established pursuant to subdivision (b) 38 (2) Notwithstanding paragraph (1), a jurisdiction that has in 39 place or adopts an ordinance implementing a comprehensive 40 program for the collection of household hazardous waste shall 95 HB -137- Item 13. - 12 —5— AB 45 1 have an additional two years to meet the collection and diversion 2 objective in paragraph(1). 3 (b) No later than July 1,2016,each]unsdiction shall inform the 4 department of its baseline amount of collection and diversion of 5 hazardous waste in accordance with regulations adopted by the 6 department The baseline amount may be expressed in tonnage or 7 by the number of households participating, and may focus on 8 particular types of household hazardous waste 9 47122 (a) The department shall adopt regulations to implement 10 this article 11 (b) The department may adopt a model ordinance for a 12 comprehensive program for the collection of household hazardous 13 waste to facilitate compliance with this article. 14 47123 Commencing July 1, 2020, and annually thereafter, 15 each jurisdiction shall report to the department on progress 16 achieved in complying with this section A jurisdiction shall make 17 a good faith effort to comply with this section,and the department 18 may determine whether a jurisdiction has made a good faith effort 19 for purposes of this program To the maximum extent practicable, 20 it is the intent of the Legislature that reporting requirements under 21 this section be satisfied by submission of similar reports currently 22 required by law 23 47124. This article does not apply to a junsdiction that does 24 not provide for the residential collection and disposal of solid 25 waste 26 SEC 3 No reimbursement is required by this act pursuant to 27 Section 6 of Article X1II B of the California Constitution because 28 a local agency or school district has the authority to levy service 29 charges, fees, or assessments sufficient to pay for the program or 30 level of service mandated by this act,within the meaning of Section 31 17556 of the Government Code O 95 Item 13. - 13 HB -138- L-ATTAC H M E N T #3 SECTION 1 Section 34170 1 of the Health and Safety Code is added to read 34170 1 Any action by the Department carrying out the Department's obligations under this Part and Part 1 8 (commencing with Section 34161) constitutes a Department action for the preparation development or administration of the state budget pursuant to Government Code section 11357 and is exempt from Chapter 3 5, of Part 1, of Division 3, of Title 2 of the Government Code This section applies retroactively to any action by the Department described in this section that occurred on or after June 28, 2011 SECTION 2 Section 34171 of the Health and Safety Code is amended to read 34171 The following terms shall have the following meanings (a) "Administrative budget" means the budget for administrative costs of the successor agencies as provided in Section 34177 (b)M"Administrative cost allowance" means the maximum amount of administrative costs that may be paid by a successor agency from the Redevelopment Property Tax Trust Fund in a fiscal year (2) The administrative cost allowance shall be 5 percent of the property tax allocated to the successor agency on the Recognized Obligation Payment Schedule covering the period January 1, 2012, through June 30, 2^'o12_, a„d 2012 The administrative cost allowance shall be up to 3 percent of the property tax allocated to the Redevelopment Obligation Retirement Fund for each fiscal year thereafter „re„sled heweyer, .,,r,that the n ,,„+thereafter ending on June 30, 2016 However, the administrative cost allowance shall not be less than two hundred fifty thousand dollars ($250,000) ($250,000) in any fiscal year, unless this amount is reduced by the oversight board red- -n-es this 'trFr,"OURt, fvr any f16GaI „ear OF S„nh Iesser amount as agFee l-ta or by agreement with the successor agency (3) Commencing July 1, 2016, and for each fiscal year thereafter, the administrative cost allowance shall be up to 3 percent of the actual property tax distributed to the successor agency by the county auditor-controller in the preceding fiscal year for payment of approved enforceable obligations, reduced by the successor agency's administrative cost allowance and loan repayments made to the city, county, city or county that created the redevelopment agency that it succeeded pursuant to subdivision (b) of Section 34191 4 during the preceding fiscal year However, the administrative cost allowance shall not be less than two hundred fifty thousand dollars ($250,000) in any fiscal year, unless this amount is reduced by the oversight board or by agreement between the successor agency and the department (4) Notwithstanding paragraph (3) of this subdivision, commencing July 1, 2016, a successor agency's annual administrative costs shall not exceed fifty percent (50%) of the total Redevelopment Property Tax Trust Fund distributed to pay enforceable obligations in the preceding fiscal year This limitation applies to administrative costs whether paid within the administrative cost allowance or not, but does not apply to administrative costs paid from bond proceeds or grant funds , HB -1 39- Item 13. - 14 pFopeFty tax- (5) The administrative cost allowance must be approved by the oversight board and shall be the sole funding source for any legal expenses related to civil actions, including writ proceedings, contesting the validity of Part 1 8 or Part 1 85 (commencing with Section 34170) or challenging acts taken pursuant to these parts Employee costs associated with work on specific project implementation activities, including, but not limited to, construction inspection, project management, or actual construction, shall be considered project-specific costs and shall not constitute administrative costs (c) "Designated local authority" shall mean a public entity formed pursuant to subdivision (d) of Section 34173 (d) (1) "Enforceable obligation" means any of the following (A) Bonds, as defined by Section 33602 and bonds issued pursuant to Chapter 10 5 (commencing with Section 5850) of Division 6 of Title 1 of the Government Code, including the required debt service, reserve set-asides, and any other payments required under the indenture or similar documents governing the issuance of the outstanding bonds of the former redevelopment agency A reserve may be held when required by the bond indenture or when the next property tax allocation will be insufficient to pay all obligations due under the provisions of the bond for the next payment due in the following half of the calendar year (B) Loans of moneys borrowed by the redevelopment agency for a lawful purpose, to the extent they are legally required to be repaid pursuant to a required repayment schedule or other mandatory loan terms (C) Payments required by the federal government, preexisting obligations to the state or obligations imposed by state law, other than passthrough payments that are made by the county auditor-controller pursuant to Section 34183, or legally enforceable payments required in connection with the agencies' employees, including, but not limited to, pension payments, pension obligation debt service, unemployment payments, or other obligations conferred through a collective bargaining agreement Costs incurred to fulfill collective bargaining agreements for layoffs or terminations of city employees who performed work directly on behalf of the former redevelopment agency shall be considered enforceable obligations payable from property tax funds The obligations to employees specified in this subparagraph shall remain enforceable obligations payable from property tax funds for any employee to whom those obligations apply if that employee is transferred to the entity assuming the housing functions of the former redevelopment agency pursuant to Section 34176 The successor agency or designated local authority shall enter into an agreement with the housing entity to reimburse it for any costs of the employee obligations (D) Judgments or settlements entered by a competent court of law or binding arbitration decisions against the former redevelopment agency, other than passthrough payments that are made by the county auditor-controller pursuant to Section 34183 Along with the successor agency, the oversight board shall have the authority and standing to appeal any judgment or to set aside any settlement or arbitration decision (E) Any legally binding and enforceable agreement or contract that is not otherwise void as violating the debt limit or public policy However, nothing in this act shall prohibit either the 2 Item 13. - 15 HB -140- successor agency, with the approval or at the direction of the oversight board, or the oversight board itself from terminating any existing agreements or contracts and providing any necessary and required compensation or remediation for such termination Titles of or headings used on or in a document shall not be relevant in determining the existence of an enforceable obligation (F) (i) Contracts or agreements necessary for the administration or operation of the successor agency, in accordance with this part, including, but not limited to, agreements concerning litigation expenses related to assets or obligations, settlements and judgments, and the costs of maintaining assets prior to disposition, and agreements to purchase or rent office space, equipment and supplies, and pay-related expenses pursuant to Section 33127 and for carrying insurance pursuant to Section 33134 Beginning January 1, 2016, any AFiv legal expenses related to civil actions including writ proceedings, contesting the validity of Part 1 8 or Part 1 85 (commencing with Section 34170) or challenging acts taken pursuant to these parts shall only be payable out of the administrative cost allowance 01) A sponsoring entity may provide funds to a successor agency for payment of legal expenses related to civil actions initiated by the successor agency, including writ proceedings, contesting the validity of Part 1 8 or Part 1 85 (commencing with Section 34170) or challenging acts taken pursuant to these parts If the successor agency obtains a final iudicial determination granting the relief requested in the action, the funds provided by the sponsoring entity for legal expenses related to successful causes of action pled by the successor agency shall be deemed an enforceable obligation for repayment under the terms set forth in subdivision (h) of Section 34173 If the successor agency does not receive a final judicial determination granting the relief requested, the funds provided by the sponsoring entity shall be considered a grant by the sponsoring entity and shall not qualify for repayment as an enforceable obligation (G) Amounts borrowed from, or payments owing to, the Low and Moderate Income Housing Fund of a redevelopment agency, which had been deferred as of the effective date of the act adding this part, provided, however, that the repayment schedule is approved by the oversight board Repayments shall be transferred to the Low and Moderate Income Housing Asset Fund established pursuant to subdivision (d) of Section 34176 as a housing asset and shall be used in a manner consistent with the affordable housing requirements of the Community Redevelopment Law (Part 1 (commencing with Section 33000)) Enforceable obligations pursuant to this subparagraph include only amounts borrowed from, or payments owing to, the Low and Moderate Income Housing Fund of a redevelopment agency pursuant to subdivision (k)(2) of Section 33334 2, subdivision (g) of Section 33334 6, subdivision (b) of Section 33681 7, subdivision (b) of Section 33681 9, subdivision (b) of Section 33681 12, subdivision (b) of Section 33685, subdivision (c)(1) of Section 33690, or subdivision (c)(1) of Section 33690 5, which had been deferred as of the effective date of the act adding this part and were approved by the department pursuant to paragraph (2) of subdivision (a) of section 34176 Th+srdefiR41014 �f*pr ', Ae 29 4^ 4 This definition shall apply retroactively commencing on and after June 28, 2011 (2) For purposes of this part, "enforceable obligation" does not include any agreements, contracts, or arrangements between the city, county, or city and county that created the redevelopment agency and the former redevelopment agency However, written agreements entered into (A) at the time of issuance, but in no event later than December 31, 2010, of indebtedness obligations, and (B) solely for the purpose of securing or repaying those indebtedness obligations may be deemed enforceable obligations for purposes of this part Additionally, written agreements entered into (A) at the time of issuance, but in no event later 3 H B -141- Item 13. - 16 than June 27 2011 of indebtedness obligations solely for the refunding or refinancing of other indebtedness obligations that existed prior to January 1, 2011, and (B) solely for the purpose of securing or repaying #I�e the refunded or refinanced indebtedness obligations may be deemed enforceable obligations for purposes of this part Notwithstanding this paragraph, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created it, within two years of the date of creation of the redevelopment agency, may be deemed to be enforceable obligations Notwithstanding this paragraph, an agreement entered into by the redevelopment agency prior to June 28, 2011, is an enforceable obligation if the agreement relates to state highway infrastructure improvements to which the redevelopment agency committed funds pursuant to Section 33445 (3) Contracts or agreements between the former redevelopment agency and other public agencies, to perform services or provide funding for governmental or private services or capital projects outside of redevelopment project areas that do not provide benefit to the redevelopment project and thus were not properly authorized under Part 1 (commencing with Section 33000) shall be deemed void on the effective date of this part, provided, however, that such contracts or agreements for the provision of housing properly authorized under Part 1 (commencing with Section 33000) shall not be deemed void (e) "Indebtedness obligations" means bonds, notes, certificates of participation, or other evidence of indebtedness, issued or delivered by the redevelopment agency, or by a joint exercise of powers authority created by the redevelopment agency, to third-party investors or bondholders to finance or refinance redevelopment projects undertaken by the redevelopment agency in compliance with the Community Redevelopment Law (Part 1 (commencing with Section 33000)) (f) "Oversight board" shall mean each entity established pursuant to Section 34179 (g) "Recognized obligation" means an obligation listed in the Recognized Obligation Payment Schedule (h) "Recognized Obligation Payment Schedule" means the document setting forth the minimum payment amounts and due dates of payments required by enforceable obligations for each six- month fiscal period until June 30, 2016, as provided in subdivision (m) of Section 34177 On and after July 1, 2016, "Recognized Obligation Payment Schedule" means the document setting forth the minimum payment amounts and due dates of payments required by enforceable obligations for each fiscal year as provided in subdivision (o) of Section 34177 (i) "School entity" means any entity defined as such in subdivision (f) of Section 95 of the Revenue and Taxation Code 0) "Successor agency" means the successor entity to the former redevelopment agency as described in Section 34173 (k) "Taxing entities" means cities, counties, a city and county, special districts, and school entities, as defined in subdivision (f) of Section 95 of the Revenue and Taxation Code, that receive passthrough payments and distributions of property taxes pursuant to the provisions of this part (1) "Property taxes" include all property tax revenues, including those from unitary and supplemental and roll corrections applicable to tax increment 4 Item 13. - 17 HB -142- (m) "Department' means the Department of Finance unless the context clearly refers to another state agency (n) "Sponsoring entity" means the city, county, or city and county, or other entity that authorized the creation of each redevelopment agency (o) "Final judicial determination" means a final judicial determination made by any state court that is not appealed, or by a court of appellate jurisdiction that is not further appealed, in an action by any party (p) From July 1, 2014, to July 1, 2018, inclusive, "housing entity administrative cost allowance" means an amount of up to 1 percent of the property tax allocated to the Redevelopment Obligation Retirement Fund on behalf of the successor agency for each applicable fiscal year, but not less than one hundred fifty thousand dollars ($150,000) per fiscal year (1) If a local housing authority assumed the housing functions of the former redevelopment agency pursuant to paragraph (2) or (3) of subdivision (b) of Section 34176, then the housing entity administrative cost allowance shall be listed by the successor agency on the Recognized Obligation Payment Schedule Upon approval of the Recognized Obligation Payment Schedule by the oversight board and the department, the housing entity administrative cost allowance shall be remitted by the successor agency on each January 2 and July 1 to the local housing authority that assumed the housing functions of the former redevelopment agency pursuant to paragraph (2) or (3) of subdivision (b) of Section 34176 (2) If there are insufficient moneys in the Redevelopment Obligations Retirement Fund in a given fiscal year to make the payment authorized by this subdivision, the unfunded amount may be listed on each subsequent Recognized Obligation Payment Schedule until it has been paid in full In these cases the five-year time limit on the payments shall not apply SECTION 3 Section 34173 of the Health and Safety Code is amended to read 34173 (a) Successor agencies, as defined in this part, are hereby designated as successor entities to the former redevelopment agencies (b) Except for those provisions of the Community Redevelopment Law that are repealed, restricted, or revised pursuant to the act adding this part, all authority, rights, powers, duties, and obligations previously vested with the former redevelopment agencies, under the Community Redevelopment Law, are hereby vested in the successor agencies (c) (1) If the redevelopment agency was in the form of a joint powers authority, and if the joint powers agreement governing the formation of the joint powers authority addresses the allocation of assets and liabilities upon dissolution of the joint powers authority, then each of the entities that created the former redevelopment agency may be a successor agency within the meaning of this part and each shall have a share of assets and liabilities based on the provisions of the joint powers agreement (2) If the redevelopment agency was in the form of a joint powers authority, and if the joint powers agreement governing the formation of the joint powers authority does not address the allocation of assets and liabilities upon dissolution of the joint powers authority, then each of the entities that created the former redevelopment agency may be a successor agency within the 5 HB -143- Item 13. - 18 meaning of this part, a proportionate share of the assets and liabilities shall be based on the assessed value in the project areas within each entity's jurisdiction, as determined by the county assessor, in its jurisdiction as compared to the assessed value of land within the boundaries of the project areas of the former redevelopment agency (d) (1)A city, county, city and county, or the entities forming the joint powers authority that authorized the creation of each redevelopment agency may elect not to serve as a successor agency under this part A city, county, city and county, or any member of a joint powers authority that elects not to serve as a successor agency under this part must file a copy of a duly authorized resolution of its governing board to that effect with the county auditor-controller no later than January 13, 2012 (2) The determination of the first local agency that elects to become the successor agency shall be made by the county auditor-controller based on the earliest receipt by the county auditor- controller of a copy of a duly adopted resolution of the local agency's governing board authorizing such an election As used in this section, "local agency" means any city, county, city and county, or special district in the county of the former redevelopment agency (3) (A) If no local agency elects to serve as a successor agency for a dissolved redevelopment agency, a public body, referred to herein as a "designated local authority" shall be immediately formed, pursuant to this part, in the county and shall be vested with all the powers and duties of a successor agency as described in this part The Governor shall appoint three residents of the county to serve as the governing board of the authority The designated local authority shall serve as successor agency until a local agency elects to become the successor agency in accordance with this section (B) Designated local authority members are protected by the immunities applicable to public entities and public employees governed by Part 1 (commencing with Section 810) and Part 2 (commencing with Section 814) of Division 3 6 of Title 1 of the Government Code (4) A city, county, or city and county, or the entities forming the joint powers authority that authorized the creation of a redevelopment agency and that elected not to serve as the successor agency under this part, may subsequently reverse this decision and agree to serve as the successor agency pursuant to this section Any reversal of this decision shall not become effective for 60 days after notice has been given to the current successor agency and the oversight board and shall not invalidate any action of the successor agency or oversight board taken prior to the effective date of the transfer of responsibility (e) The liability of any successor agency, acting pursuant to the powers granted under the act adding this part, shall be limited to the extent of the total sum of property tax revenues it receives pursuant to this part and the value of assets transferred to it as a successor agency for a dissolved redevelopment agency (f)Any existing cleanup plans and liability limits authorized under the Polanco Redevelopment Act (Article 12 5 (commencing with Section 33459) of Chapter 4 of Part 1) shall be transferred to the successor agency and may be transferred to the successor housing entity at that entity's request (g) A successor agency is a separate public entity from the public agency that provides for its governance and the two entities shall not merge The liabilities of the former redevelopment agency shall not be transferred to the sponsoring entity and the assets shall not become assets 6 Item 13. - 19 FIB -144- of the sponsoring entity A successor agency has its own name, can be sued, and can sue All litigation involving a redevelopment agency shall automatically be transferred to the successor agency The separate former redevelopment agency employees shall not automatically become sponsoring entity employees of the sponsoring entity and the successor agency shall retain its own collective bargaining status As successor entities, successor agencies succeed to the organizational status of the former redevelopment agency, but without any legal authority to participate in redevelopment activities, except to complete any work related to an approved enforceable obligation Each successor agency shall be deemed to be a local entity for purposes of the Ralph M Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code) (h)M The city, county, or city and county that authorized the creation of a redevelopment agency may loan or grant funds to a successor agency for the payment of administrative sssts,- costs or enforceable obligations excluding loans approved under this subdivision or pursuant to Section 34191 4, or protect-related expenses that qualify as an enforceable obligation at the and only to the extent that the successor agency receives an insufficient distribution from the Redevelopment Property Tax Trust Fund, or other approved sources of funding are insufficient, to pay approved enforceable obligations in the recognized obligation payment schedule period The receipt and use of these funds shall be reflected on the Recognized Obligation Payment Schedule or the administrative budget and therefore are subject to the oversight and approval of the oversight board An enforceable obligation shall be deemed to be created for the repayment of those loans The interest payable on any loan created pursuant to this subdivision shall be calculated on a fixed annual simple basis, and applied to the outstanding principal amount until fully paid, and at a rate of interest not to exceed the most recently-published interest rate earned by funds deposited into the Local Agency Investment Fund during the previous fiscal quarter Repayment of loans created under this subdivision shall be applied first to principal, and second to interest, and shall be subordinate to other approved enforceable obligations Loans created under this subdivision shall be repaid to the extent property tax revenue allocated to the successor agency is available after fulfilling other enforceable obligations approved in the Recognized Obligation Payment Schedule 2) This subdivision shall not apply where the successor agency's distribution from the Redevelopment Property Tax Trust Fund has been reduced pursuant to Section 34179 6 or Section 34186 (i) At the request of the city, county, or city and county, notwithstanding Section 33205, all land use related plans and functions of the former redevelopment agency are hereby transferred to the city, county, or city and county that authorized the creation of a redevelopment agency, provided, however, that the city, county, or city and county shall not create a new project area, add territory to, or expand or change the boundaries of a project area, or take any action that would increase the amount of obligated property tax (formerly tax increment) necessary to fulfill any existing enforceable obligation beyond what was authorized as of June 27, 2011 SECTION 4 Section 34176 1 of the Health and Safety Code is amended to read 34176 1 Funds in the Low and Moderate Income Housing Asset Fund described in subdivision (d) of Section 34176 shall be subject to the provisions of the Community Redevelopment Law (Part 1 (commencing with Section 33000)) relating to the Low and Moderate Income Housing Fund, except as follows 7 Hs -j 45- Item 13. - 20 (a) Subdivision (d) of Section 33334 3 and subdivision (a) of Section 33334 4 shall not apply Instead, funds received from the successor agency for items listed on the Recognized Obligation Payment Schedule shall be expended to meet the enforceable obligations, and the housing successor shall expend all other funds in the Low and Moderate Income Housing Asset Fund as follows (1) For the purpose of monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or the housing successor and for the purpose of administering the activities described in paragraphs (2) and (3), a housing successor may expend per fiscal year up to an amount equal to-2 5 percent of the statutory value of real property owned by the housing successor and of loans and grants receivable, including real property and loans and grants transferred to the housing successor pursuant to Section 34176 and real property purchased and loans and grants made by the housing successor If this amount is less than two hundred thousand dollars ($200,000) for any given fiscal year, the housing successor may expend up to two hundred thousand dollars ($200,000) in that fiscal year for these purposes The Department of Housing and Community Development shall annually publish on its Internet Web site an adjustment to this amount to reflect any change in the Consumer Price Index for All Urban Consumers published by the federal Department of Labor for the preceding calendar year For purposes of this paragraph, "statutory value of real property" means the value of properties formerly held by the former redevelopment agency as listed on the housing asset transfer form approved by the Department of Finance pursuant to paragraph (2) of subdivision (a) of Section 34176, the value of the properties transferred to the housing successor pursuant to subdivision (f) of Section 34181, and the purchase price of properties purchased by the housing successor (2) Notwithstanding Section 33334 2, if the housing successor has fulfilled all obligations pursuant to Sections 33413 and 33418, the housing successor may expend up to two hundred fifty thousand dollars ($250,000) per fiscal year for homeless prevention and rapid rehousing services for individuals and families who are homeless or would be homeless but for this assistance, including the provision of short-term or medium-term rental assistance, housing relocation and stabilization services including housing search, mediation, or outreach to property owners, credit repair, security or utility deposits, utility payments, rental assistance for a final month at a location, moving cost assistance, and case management, or other appropriate activities for homelessness prevention and rapid rehousing of persons who have become homeless (3) (A) The housing successor shall expend all funds remaining in the Low and Moderate Income Housing Asset Fund after the expenditures allowed pursuant to paragraphs (1) and (2) for the development of housing affordable to and occupied by households earning 80 percent or less of the area median income, with at least 30 percent of these remaining funds expended for the development of rental housing affordable to and occupied by households earning 30 percent or less of the area median income and no more than 20 percent of these remaining funds expended for the development of housing affordable to and occupied by households earning between 60 percent and 80 percent of the area median income A housing successor shall demonstrate in the annual report described in subdivision (f), for 2019, and every five years thereafter, that the housing successor's expenditures from January 1, 2014, through the end of the latest fiscal year covered in the report comply with the requirements of this subparagraph (B) If the housing successor fails to comply with the extremely low income requirement in any five-year report, then the housing successor shall ensure that at least 50 percent of these remaining funds expended in each fiscal year following the latest fiscal year following the report 8 Item 13. - 21 HB -146- are expended for the development of rental housing affordable to, and occupied by, households earning 30 percent or less of the area median income until the housing successor demonstrates compliance with the extremely low income requirement in an annual report described in subdivision (f) (C) If the housing successor exceeds the expenditure limit for households earning between 60 percent and 80 percent of the area median income in any five-year report, the housing successor shall not expend any of the remaining funds for households earning between 60 percent and 80 percent of the area median income until the housing successor demonstrates compliance with this limit in an annual report described in subdivision (f) (D) For purposes of this subdivision, "development' means new construction, acquisition and rehabilitation, substantial rehabilitation as defined in Section 33413, the acquisition of long-term affordability covenants on multifamily units as described in Section 33413, or the preservation of an assisted housing development that is eligible for prepayment or termination or for which within the expiration of rental restrictions is scheduled to occur within five years as those terms are defined in Section 65863 10 of the Government Code Units described in this subparagraph may be counted towards any outstanding obligations pursuant to Section 33413, provided that the units meet the requirements of that section and are counted as provided in that section (b) Subdivision (b) of Section 33334 4 shall not apply Instead, if the aggregate number of units of deed-restricted rental housing restricted to seniors and assisted individually or jointly by the housing successor, its former redevelopment agency, and its host jurisdiction within the previous 10 years exceeds 50 percent of the aggregate number of units of deed-restricted rental housing assisted individually or jointly by the housing successor, its former redevelopment agency, and its host jurisdiction within the same time period, then the housing successor shall not expend these funds to assist additional senior housing units until the housing successor or its host jurisdiction assists, and construction has commenced, a number of units available to all persons, regardless of age, that is equal to 50 percent of the aggregate number of units of deed-restricted rental housing units assisted individually or jointly by the housing successor, its former redevelopment agency, and its host jurisdiction within the time period described above (c) (1) Program income a housing successor receives shall not be associated with a project area and, notwithstanding subdivision (g) of Section 33334 2, may be expended anywhere within the jurisdiction of the housing successor or transferred pursuant to paragraph (2) without a finding of benefit to a project area For purposes of this paragraph, "program income" means the sources described in paragraphs (3), (4), and (5) of subdivision (e) of Section 34176 and interest earned on deposits in the account (2) Two or more housing successors within a county, within a single metropolitan statistical area, within 15 miles of each other, or that are in contiguous jurisdictions may enter into an agreement to transfer funds among their respective Low and Moderate Income Housing Asset Funds for the sole purpose of developing transit priority projects as defined in subdivisions (a) and (b) of Section 21155 of the Public Resources Code, permanent supportive housing as defined in paragraph (2) of subdivision (b) of Section 50675 14, housing for agricultural employees as defined in subdivision (g) of Section 50517 5, or special needs housing as defined in federal or state law or regulation if all of the following conditions are met (A) Each participating housing successor has made a finding based on substantial evidence, after a public hearing, that the agreement to transfer funds will not cause or exacerbate racial, ethnic, or economic segregation 9 H B -1 47- Item 13. - 22 (B) The development to be funded shall not be located in a census tract where more than 50 percent of its population is very low income, unless the development is within one-half mile of a major transit stop or high-quality transit corridor as defined in paragraph (3) of subdivision (b) of Section 21155 of the Public Resources Code (C) The completed development shall not result in a reduction in the number of housing units or a reduction in the affordability of housing units on the site where the development is to be built (D) A transferring housing successor shall not have any outstanding obligations pursuant to Section 33413 (E) No housing successor may transfer more than one million dollars ($1,000,000) per fiscal year (F) The jurisdictions of the transferring and receiving housing successors each have an adopted housing element that the Department of Housing and Community Development has found pursuant to Section 65585 of the Government Code to be in substantial compliance with the requirements of Article 10 6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code and have submitted to the Department of Housing and Community Development the annual progress report required by Section 65400 of the Government Code within the preceding 12 months (G) Transferred funds shall only assist rental units affordable to, and occupied by, households earning 60 percent or less of the area median income (H) Transferred funds not encumbered within two years shall be transferred to the Department of Housing and Community Development for expenditure pursuant to the Multifamily Housing Program or the Joe Serna, Jr Farmworker Housing Grant Program (d) Sections 33334 10 and 33334 12 shall not apply Instead, if a housing successor has an excess surplus, the housing successor shall encumber the excess surplus for the purposes described in paragraph (3) of subdivision (a) or transfer the funds pursuant to paragraph (2) of subdivision (c) within three fiscal years If the housing successor fails to comply with this subdivision, the housing successor, within 90 days of the end of the third fiscal year, shall transfer any excess surplus to the Department of Housing and Community Development for expenditure pursuant to the Multifamily Housing Program or the Joe Serna, Jr Farmworker Housing Grant Program For purposes of this subdivision, "excess surplus" shall mean an unencumbered amount in the account that exceeds the greater of one million dollars ($1,000,000) or the aggregate amount deposited into the account during the housing successor's preceding four fiscal years, whichever is greater (e) Section 33334 16 shall not apply to interests in real property acquired on or after February 1, 2012 With respect to interests in real property acquired by the former redevelopment agency prior to February 1, 2012, the time periods described in Section 33334 16 shall be deemed to have commenced on the date that the DepaFtMeRt 9f €'RaRGe-department approved the property as a housing asset (f) Section 33080 1 of this code and Section 12463 3 of the Government Code shall not apply Instead, the housing successor shall conduct, and shall provide to its governing body, an independent financial audit of the Low and Moderate Income Housing Asset Fund within six 10 Item 13. - 23 HB -148- months after the end of each fiscal year, which may be included in the independent financial audit of the host jurisdiction If the housing successor is a city or county, it shall also include in its report pursuant to Section 65400 of the Government Code and post on its Internet Web site all of the following information for the previous fiscal year If the housing successor is not a city or county, it shall also provide to its governing body and post on its Internet Web site all of the following information for the previous fiscal year (1) The amount the city, county, or city and county received pursuant to subparagraph (A) of paragraph (3) of subdivision (b) of Section 34191 4 (4 M The amount deposited to the Low and Moderate Income Housing Asset Fund, distinguishing apy between amounts deposited pursuant to subparagraphs (B) and (C) of paragraph (3) of subdivision (b) of Section 34191 4, amounts deposited for other items listed on the Recognized Obligation Payment Ss#edude from Schedule, and other amounts deposited q4M A statement of the balance in the fund as of the close of the fiscal year, distinguishing any amounts held for items listed on the Recognized Obligation Payment Schedule from other amounts (3)J41 A description of expenditures from the fund by category, including, but not limited to, expenditures (A) for monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or the housing successor and administering the activities described in paragraphs (2) and (3) of subdivision (a), (B) for homeless prevention and rapid rehousing services for the development of housing described in paragraph (2) of subdivision (a), and (C) for the development of housing pursuant to paragraph (3) of subdivision (a) 4�LQ As described in paragraph (1) of subdivision (a), the statutory value of real property owned by the housing successor, the value of loans and grants receivable, and the sum of these two amounts (a}n A description of any transfers made pursuant to paragraph (2) of subdivision (c) in the previous fiscal year and, if still unencumbered, in earlier fiscal years and a description of and status update on any project for which transferred funds have been or will be expended if that project has not yet been placed in service (3}JD A description of any project for which the housing successor receives or holds property tax revenue pursuant to the Recognized Obligation Payment Schedule and the status of that project MJQ For interests in real property acquired by the former redevelopment agency prior to February 1, 2012, a status update on compliance with Section 33334 16 For interests in real property acquired on or after February 1, 2012, a status update on the project (8)a A description of any outstanding obligations pursuant to Section 33413 that remained to transfer to the housing successor on February 1, 2012, of the housing successor's progress in meeting those obligations, and of the housing successor's plans to meet unmet obligations In addition, the housing successor shall include in the report posted on its Internet Web site the implementation plans of the former redevelopment agency (9} The information required by subparagraph (B) of paragraph (3) of subdivision (a) 11 HB -149- Item 13. - 24 4A}1111 The percentage of units of deed-restricted rental housing restricted to seniors and assisted individually or jointly by the housing successor, its former redevelopment agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deed-restricted rental housing assisted individually or jointly by the housing successor, its former redevelopment agency, and its host jurisdiction within the same time period "IL21 The amount of any excess surplus, the amount of time that the successor agency has had excess surplus, and the housing successor's plan for eliminating the excess surplus SECTION 5 Section 34177 of the Health and Safety Code is amended to read 34177 Successor agencies are required to do all of the following (a) Continue to make payments due for enforceable obligations (1) On and after February 1, 2012, and until a Recognized Obligation Payment Schedule becomes operative, only payments required pursuant to an enforceable obligations payment schedule shall be made The initial enforceable obligation payment schedule shall be the last schedule adopted by the redevelopment agency under Section 34169 However, payments associated with obligations excluded from the definition of enforceable obligations by paragraph (2) of subdivision (d) of Section 34171 shall be excluded from the enforceable obligations payment schedule and be removed from the last schedule adopted by the redevelopment agency under Section 34169 prior to the successor agency adopting it as its enforceable obligations payment schedule pursuant to this subdivision The enforceable obligation payment schedule may be amended by the successor agency at any public meeting and shall be subject to the approval of the oversight board as soon as the board has sufficient members to form a quorum In recognition of the fact that the timing of the California Supreme Court's ruling in the case California Redevelopment Association v Matosantos (2011) 53 Cal 4th 231 delayed the preparation by successor agencies and the approval by oversight boards of the January 1, 2012, through June 30, 2012, Recognized Obligation Payment Schedule, a successor agency may amend the Enforceable Obligation Payment Schedule to authorize the continued payment of enforceable obligations until the time that the January 1, 2012, through June 30, 2012, Recognized Obligation Payment Schedule has been approved by the oversight board and by the department The successor agency may utilize reasonable estimates and projections to support payment amounts for enforceable obligations if the successor agency submits appropriate supporting documentation of the basis for the estimate or projection to the Department of Finance and the auditor- controller (2) The DepaFtment of FlRaRGe department, the county auditor-controller, and the Controller shall each have the authority to require any documents associated with the enforceable obligations to be provided to them in a manner of their choosing Any taxing entity, the department, and the Controller shall each have standing to file a judicial action to prevent a violation under this part and to obtain injunctive or other appropriate relief (3) Commencing on the date the Recognized Obligation Payment Schedule is valid pursuant to subdivision (1), only those payments listed in the Recognized Obligation Payment Schedule may be made by the successor agency from the funds specified in the Recognized Obligation Payment Schedule In addition, after it becomes valid, the Recognized Obligation Payment Schedule shall supersede the Statement of Indebtedness, which shall no longer be prepared 12 Item 13. - 25 HB -150- nor have any effect under the Community Redevelopment Law (Part 1 (commencing with Section 33000)) (4) Nothing in the act adding this part is to be construed as preventing a successor agency, with the prior approval of the oversight board, as described in Section 34179, from making payments for enforceable obligations from sources other than those listed in the Recognized Obligation Payment Schedule (5) From February 1, 2012, to July 1, 2012, a successor agency shall have no authority and is hereby prohibited from accelerating payment or making any lump-sum payments that are intended to prepay loans unless such accelerated repayments were required prior to the effective date of this part (b) Maintain reserves in the amount required by indentures, trust indentures, or similar documents governing the issuance of outstanding redevelopment agency bonds (c) Perform obligations required pursuant to any enforceable obligation (d) Remit unencumbered balances of redevelopment agency funds to the county auditor- controller for distribution to the taxing entities, including, but not limited to, the unencumbered balance of the Low and Moderate Income Housing Fund of a former redevelopment agency In making the distribution, the county auditor-controller shall utilize the same methodology for allocation and distribution of property tax revenues provided in Section 34188 (e) Dispose of assets and properties of the former redevelopment agency as directed by the oversight board, provided, however, that the oversight board may instead direct the successor agency to transfer ownership of certain assets pursuant to subdivision (a) of Section 34181 The disposal is to be done expeditiously and in a manner aimed at maximizing value Proceeds from asset sales and related funds that are no longer needed for approved development projects or to otherwise wind down the affairs of the agency, each as determined by the oversight board, shall be transferred to the county auditor-controller for distribution as property tax proceeds under Section 34188 The requirements of this subdivision shall not apply to a successor agency that has been issued a finding of completion by the DepaFtmeRt of F'Rai Ge department pursuant to Section 34179 7 (f) Enforce all former redevelopment agency rights for the benefit of the taxing entities, including, but not limited to, continuing to collect loans, rents, and other revenues that were due to the redevelopment agency (g) Effectuate transfer of housing functions and assets to the appropriate entity designated pursuant to Section 34176 (h) Expeditiously wind down the affairs of the redevelopment agency pursuant to the provisions of this part and in accordance with the direction of the oversight board (i) Continue to oversee development of properties until the contracted work has been completed or the contractual obligations of the former redevelopment agency can be transferred to other parties Bond proceeds shall be used for the purposes for which bonds were sold unless the purposes can no longer be achieved, in which case, the proceeds may be used to defease the bonds 13 FIB -151- Item 13. - 26 0) Prepare a proposed administrative budget and submit it to the oversight board for its approval The proposed administrative budget shall include all of the following (1) Estimated amounts for successor agency administrative costs for the upcoming six-month fiscal period (2) Proposed sources of payment for the costs identified in paragraph (1) (3) Proposals for arrangements for administrative and operations services provided by a city, county, city and county, or other entity (k) Provide administrative cost estimates, from its approved administrative budget that are to be paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund, to the county auditor-controller for each six-month fiscal period (1) (1) Before each s,�,tn fiscal per19d7-penod set forth in subdivisions (m) or (o), as applicable, prepare a Recognized Obligation Payment Schedule in accordance with the requirements of this paragraph For each recognized obligation, the Recognized Obligation Payment Schedule shall identify one or more of the following sources of payment (A) Low and Moderate Income Housing Fund (B) Bond proceeds (C) Reserve balances (D) Administrative cost allowance (E) The Redevelopment Property Tax Trust Fund, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation or by the provisions of this part (F) Other revenue sources, including rents, concessions, asset sale proceeds, interest earnings, and any other revenues derived from the former redevelopment agency, as approved by the oversight board in accordance with this part (2) A Recognized Obligation Payment Schedule shall not be deemed valid unless all of the following conditions have been met (A) A Recognized Obligation Payment Schedule is prepared by the successor agency for the enforceable obligations of the former redevelopment agency The initial schedule shall project the dates and amounts of scheduled payments for each enforceable obligation for the remainder of the time period during which the redevelopment agency would have been authorized to obligate property tax increment had the a redevelopment agency not been dissolved (B) The Recognized Obligation Payment Schedule is submitted to and duly approved by the oversight board The successor agency shall submit a copy of the Recognized Obligation Payment Schedule to the county administrative officer, the county auditor-controller, and the department at the same time that the successor agency submits the Recognized Obligation Payment Schedule to the oversight board for approval 14 Item 13. - 27 HB -152- (C) A copy of the approved Recognized Obligation Payment Schedule is submitted to the county auditor-controller, the Controller's office, and the Department of Finance, and is posted on the successor agency's Internet Web site (3) The Recognized Obligation Payment Schedule shall be forward looking to the next six months or one year pursuant to subdivision (m) or (o), as applicable The first Recognized Obligation Payment Schedule shall be submitted to the Controller's office and the DepaFtMeRt Gf €lnanGe department by April 15, 2012, for the period of January 1, 2012, to June 30, 2012, inclusive This Recognized Obligation Payment Schedule shall include all payments made by the former redevelopment agency between January 1, 2012, through January 31, 2012, and shall include all payments proposed to be made by the successor agency from February 1, 2012, through June 30, 2012 Former redevelopment agency enforceable obligation payments due, and reasonable or necessary administrative costs due or incurred, prior to January 1, 2012, shall be made from property tax revenues received in the spring of 2011 property tax distribution, and from other revenues and balances transferred to the successor agency (m) M The Recognized Obligation Payment Schedule for the period of January 1, 2013, to June 30, 2013, shall be submitted by the successor agency, after approval by the oversight board, no later than September 1, 2012 Commencing with the Recognized Obligation Payment Schedule covering the period July 1, 2013, through December 31, 2013, successor agencies shall submit an oversight board-approved Recognized Obligation Payment Schedule to the department and to the county auditor-controller no fewer than 90 days before the date of property tax distribution The DepaFt eRt of FlRaRGe department shall make its determination of the enforceable obligations and the amounts and funding sources of the enforceable obligations no later than 45 days after the Recognized Obligation Payment Schedule is submitted Within five business days of the department's determination, a successor agency may request additional review by the department and an opportunity to meet and confer on disputed items, except for those items which are the subject of litigation disputing the Department's previous or related determination The meet and confer period may vary, an untimely submittal of a Recognized Obligation Payment Schedule may result in a meet and confer period of less than 30 days The department shall notify the successor agency and the county auditor-controllers as to the outcome of its review at least 15 days before the date of property tax distribution f44(A) The successor agency shall submit a copy of the Recognized Obligation Payment Schedule to the DepartmeRt of FlRaRGe department electronically, and the successor agency shall complete the Recognized Obligation Payment Schedule in the manner provided for by the department A successor agency shall be in noncompliance with this paragraph if it only submits to the department an electronic message or a letter stating that the oversight board has approved a Recognized Obligation Payment Schedule 94 B)If a successor agency does not submit a Recognized Obligation Payment Schedule by the deadlines provided in this subdivision, the city, county, or city and county that created the redevelopment ageRG agency, if it is acting as the successor agency, shall be subject to a civil penalty equal to ten thousand dollars ($10,000) per day for every day the schedule is not submitted to the department The civil penalty shall be paid to the county auditor-controller for allocation to the taxing entities under Section 34183 If a successor agency fails to submit a Recognized Obligation Payment Schedule by the deadline, any creditor of the successor agency or the department or any affected taxing entity shall have standing to and may request a writ of mandate to require the successor agency to immediately perform this duty Those actions 15 HB -153- Item 13. - 28 may be filed only in the County of Sacramento and shall have priority over other civil matters Additionally, if an agency does not submit a Recognized Obligation Payment Schedule within 10 days of the deadline, the maximum administrative cost allowance for that period shall be reduced by 25 percent (3) (C) If a successor agency fails to submit to the department an oversight board-approved Recognized Obligation Payment Schedule that complies with all requirements of this subdivision within five business days of the date upon which the Recognized Obligation Payment Schedule is to be used to determine the amount of property tax allocations, the department may determine if any amount should be withheld by the county auditor-controller for payments for enforceable obligations from distribution to taxing entities, pending approval of a Recognized Obligation Payment Schedule The county auditor-controller shall distribute the portion of any of the sums withheld pursuant to this paragraph to the affected taxing entities in accordance with paragraph (4) of subdivision (a) of Section 34183 upon notice by the department that a portion of the withheld balances are in excess of the amount of enforceable obligations The county auditor-controller shall distribute withheld funds to the successor agency only in accordance with a Recognized Obligation Payment Schedule approved by the department County auditor- controllers shall lack the authority to withhold any other amounts from the allocations provided for under Section 34183 or 34188 unless required by a court order (4)-( } (Q) (i) The Recognized Obligation Payment Schedule payments required pursuant to this subdivision may be scheduled beyond the existing Recognized Obligation Payment Schedule cycle upon a showing that a lender requires cash on hand beyond the Recognized Obligation Payment Schedule cycle (E4 LiLWhen a payment is shown to be due during the Recognized Obligation Payment Schedule period, but an invoice or other billing document has not yet been received, the successor agency may utilize reasonable estimates and projections to support payment amounts for enforceable obligations if the successor agency submits appropriate supporting documentation of the basis for the estimate or projection to the department and the auditor- controller 4G} iii A Recognized Obligation Payment Schedule may also include appropriation of moneys from bonds subject to passage during the Recognized Obligation Payment Schedule cycle when an enforceable obligation requires the agency to issue the bonds and use the proceeds to pay for project expenditures (2) The requirements of this subdivision shall apply until December 31, 2015 (n) Cause a postaudit of the financial transactions and records of the successor agency to be made at least annually by a certified public accountant (o) (1) Commencing with the Recognized Obligation Payment Schedule covering the period July 1, 2016, through June 30, 2017, and each July 1 through June 30 thereafter, a successor agency shall submit an oversight board-approved Recognized Obligation Payment Schedule to the department and to the county auditor-controller no later than February 1, 2016, and each February 1 thereafter The department shall make its determination of the enforceable obligations and the amounts and funding sources of the enforceable obligations no later than April 15, 2016, and each April 15 thereafter Within five business days of the department's determination, a successor agency may request additional review by the department and an opportunity to meet and confer on disputed items, except for those items which are the subject 16 Item 13. - 29 HB -154- of litigation disputing the department's previous or related determination An untimely submittal of a Recognized Obligation Payment Schedule may result in a meet and confer period of less than 30 days The department shall notify the successor agency and the county auditor- controller as to the outcome of its review at least 15 days before the date of the first property tax distribution for that period (A) The successor agency shall submit a copy of the Recognized Obligation Payment Schedule to the department in the manner provided for by the Department (B) If a successor agencv does not submit a Recognized Obligation Payment Schedule by the deadlines provided in this subdivision, the city, county, or city and county that created the redevelopment agency, if it is acting as the successor agencv, shall be subject to a civil penalty equal to ten thousand dollars ($10,000) per day for every day the schedule is not submitted to the department The civil penalty shall be paid to the county auditor-controller for allocation to the taxing entities under Section 34183 If a successor agency fails to submit a Recognized Obligation Payment Schedule by the deadline, any creditor of the successor agency or the department or any affected taxing entity shall have standing to and may request a writ of mandate to require the successor agency to immediately perform this duty Those actions may be filed only in the County of Sacramento and shall have priority over other civil matters Additionally, if an agency does not submit a Recognized Obligation Payment Schedule within 10 days of the deadline, the maximum administrative cost for that period shall be reduced by 25 percent (C) If a successor agency fails to submit to the department an oversight board-approved Recognized Obligation Payment Schedule that complies with all requirements of this subdivision within five business days of the date upon which the Recognized Obligation Payment Schedule is to be used to determine the amount of property tax allocations, the department may determine if any amount should be withheld by the county auditor-controller for payments for enforceable obligations from distribution to taxing entities, pending approval of a Recognized Obligation Payment Schedule The county auditor-controller shall distribute the portion of any of the sums withheld pursuant to this paragraph to the affected taxing entities in accordance with paragraph (4) of subdivision (a) of Section 34183 upon notice by the department that a portion of the withheld balances are in excess of the amount of enforceable obligations The county auditor-controller shall distribute withheld funds to the successor agencv only in accordance with a Recognized Obligation Payment Schedule approved by the department County auditor- controllers shall lack the authority to withhold any other amounts from the allocations provided for under Section 34183 or 34188 unless required by a court order (D) 0) The Recognized Obligation Payment Schedule payments required pursuant to this subdivision may be scheduled beyond the existing Recognized Obligation Payment Schedule cycle upon a showing that a lender requires cash on hand beyond the Recognized Obligation Payment Schedule cycle (ii) When a payment is shown to be due during the Recognized Obligation Payment Schedule period but an invoice or other billing document has not vet been received, the successor agency may utilize reasonable estimates and projections to support payment amounts for enforceable obligations if the successor agency submits appropriate supporting documentation of the basis for the estimate or projection to the department and the county auditor-controller On) A Recognized Obligation Payment Schedule may also include a request to use proceeds from bonds expected to be issued during the Recognized Obligation Payment Schedule cycle 17 HB -155- Item 13. - 30 when an enforceable obligation requires the agency to issue the bonds and use the proceeds to pay for project expenditures (E) Once per Recognized Obligation Payment Schedule period and no later than October 1, a successor agency may submit one amendment to the Recognized Obligation Payment Schedule approved by the department pursuant to this subdivision, if the oversight board makes a finding that a revision is necessary for the payment of approved enforceable obligations during the second half of the Recognized Obligation Payment Schedule period, which shall be defined as January 1 through June 30 A successor agency may only amend the amount requested for payment of approved enforceable obligations The revised Recognized Obligation Payment Schedule shall be approved by the oversight board and submitted to the department by electronic means in a manner of the department's choosing The department shall notify the successor agency and the county auditor-controller as to the outcome of the department's review at least 15 days before the date of the property tax distribution (2) The requirements of this subdivision shall apply on and after January 1, 2016 SECTION 6 Section 34177 3 of the Health and Safety Code is amended to read 34177 3 (a) Successor agencies shall lack the authority to, and shall not, create new enforceable obligations u enter the then+ of the Gemmumty Rerdeyelenmeet Law (Dart4 or begin aew redevelopment work, except in compliance with an enforceable ebl+ga obligation, as defined by subdivision (d) of Section 34171, that existed prior to June 28, 2011 (b) SUssesser-Notwithstanding subdivision (a), successor agencies may create enforceable obligations to conduct the work of winding down the redevelopment agency, including hiring staff, acquiring necessary professional administrative services and legal counsel, and procuring insurance The work of winding down the redevelopment agency does not include planning, design redesign, development, demolition, alteration, construction, construction financing, site remediation, site development or improvement, , land clearance, seismic retrofits and other similar work Successor agencies may not create enforceable obligations to repay loans entered into between the redevelopment agency that it is succeeding and the city, county, or city and county that formed the redevelopment agency that it is succeeding, except as provided in Chapter 9 (commencing with Section 34191 1) (c) Successor agencies shall lack the authority to, and shall not, transfer any powers or revenues of the successor agency to any other party, public or private, except pursuant to an enforceable obligation on a Recognized Obligation Payment Schedule approved by the department Any such transfers of authority or revenues that are not made pursuant to an enforceable obligation on a Recognized Obligation Payment Schedule approved by the nepaFtment of Glr,eeee department are hereby declared to be void, and the successor agency shall take action to reverse any of those transfers The Controller may audit any transfer of authority or revenues prohibited by this section and may order the prompt return of any money or other things of value from the receiving party (d) Redevelopment agencies that resolved to participate in the Voluntary Alternative Redevelopment Program under Chapter 6 of the First Extraordinary Session of the Statutes of 2011 were and are subject to the provisions of Part 1 8 (commencing with Section 34161) Any actions taken by redevelopment agencies to create obligations after June 27, 2011, are ultra vires and do not create enforceable obligations 18 Item 13. - 31 14B -156- (e) The l eglslati ire f n& and denlarec that+he provisions of this section exiStIRg shall apply retroactively to any successor agency or redevelopment agency actions occurring on or after jURe 28 2044 June 27, 2012 SECTION 7 Section 34177 5 of the Health and Safety Code is amended to read 34177 5 (a) In addition to the powers granted to each successor agency, and notwithstanding anything in the act adding this part, including, but not limited to, Sections 34162 and 34189, a successor agency shall have the authority, rights, and powers of the redevelopment agency to which it succeeded solely for the following purposes (1) For the purpose of issuing bonds or incurring other indebtedness to refund the bonds or other indebtedness of its former redevelopment agency or of the successor agency to provide savings to the successor agency, provided that (A) the total interest cost to maturity on the refunding bonds or other indebtedness plus the principal amount of the refunding bonds or other indebtedness shall not exceed the total remaining interest cost to maturity on the bonds or other indebtedness to be refunded plus the remaining principal of the bonds or other indebtedness to be refunded, and (B) the principal amount of the refunding bonds or other indebtedness shall not exceed the amount required to defease the refunded bonds or other indebtedness, to establish customary debt service reserves, and to pay related costs of issuance If the foregoing conditions are satisfied, the initial principal amount of the refunding bonds or other indebtedness may be greater than the outstanding principal amount of the bonds or other indebtedness to be refunded The successor agency may pledge to the refunding bonds or other indebtedness the revenues pledged to the bonds or other indebtedness being refunded, and that pledge, when made in connection with the issuance of such refunding bonds or other indebtedness, shall have the same lien priority as the pledge of the bonds or other obligations to be refunded, and shall be valid, binding, and enforceable in accordance with its terms (2) For the purpose of issuing bonds or other indebtedness to finance debt service spikes, including balloon maturities, provided that (A) the existing indebtedness is not accelerated, except to the extent necessary to achieve substantially level debt service, and (B) the principal amount of the bonds or other indebtedness shall not exceed the amount required to finance the debt service spikes, including establishing customary debt service reserves and paying related costs of issuance (3) For the purpose of amending an existing enforceable obligation under which the successor agency is obligated to reimburse a political subdivision of the state for the payment of debt service on a bond or other obligation of the political subdivision, or to pay all or a portion of the debt service on the bond or other obligation of the political subdivision to provide savings to the successor agency, provided that (A) the enforceable obligation is amended in connection with a refunding of the bonds or other obligations of the political subdivision so that the enforceable obligation will apply to the refunding bonds or other refunding indebtedness of the political subdivision, (B) the total interest cost to maturity on the refunding bonds or other indebtedness plus the principal amount of the refunding bonds or other indebtedness shall not exceed the total remaining interest cost to maturity on the bonds or other indebtedness to be refunded plus the remaining principal of the bonds or other indebtedness to be refunded, and (C) the principal amount of the refunding bonds or other indebtedness shall not exceed the amount required to defease the refunded bonds or other indebtedness, to establish customary debt service reserves and to pay related costs of issuance The pledge set forth in that amended enforceable obligation, when made in connection with the execution of the amendment of the enforceable 19 HB -157- Item 13. - 32 obligation, shall have the same lien priority as the pledge in the enforceable obligation prior to its amendment and shall be valid, binding, and enforceable in accordance with its terms (4) For the purpose of issuing bonds or incurring other indebtedness to make payments under enforceable obligations when the enforceable obligations include the irrevocable pledge of property tax increment, formerly tax increment revenues prior to the effective date of this part, or other funds and the obligation to issue bonds secured by that pledge The successor agency may pledge to the bonds or other indebtedness the property tax revenues and other funds described in the enforceable obligation, and that pledge, when made in connection with the issuance of the bonds or the incurring of other indebtedness, shall be valid, binding, and enforceable in accordance with its terms This paragraph shall not be deemed to authorize a successor agency to increase the amount of property tax revenues pledged under an enforceable obligation or to pledge any property tax revenue not already pledged pursuant to an enforceable obligation This paragraph does not constitute a change in, but is declaratory of, the existing law (b) The refunding bonds authorized under this section may be issued under the authority of Article 11 (commencing with Section 53580) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code, and the refunding bonds may be sold at public or private sale, or to a joint powers authority pursuant to the Marks-Roos Local Bond Pooling Act (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code) (c) (1) Prior to incurring any bonds or other indebtedness pursuant to this section, the successor agency may subordinate to the bonds or other indebtedness the amount required to be paid to an affected taxing entity pursuant to paragraph (1) of subdivision (a) of Section 34183, provided that the affected taxing entity has approved the subordinations pursuant to this subdivision (2) At the time the successor agency requests an affected taxing entity to subordinate the amount to be paid to it, the successor agency shall provide the affected taxing entity with substantial evidence that sufficient funds will be available to pay both the debt service on the bonds or other indebtedness and the payments required by paragraph (1) of subdivision (a) of Section 34183, when due (3) Within 45 days after receipt of the agency's request, the affected taxing entity shall approve or disapprove the request for subordination An affected taxing entity may disapprove a request for subordination only if it finds, based upon substantial evidence, that the successor agency will not be able to pay the debt service payments and the amount required to be paid to the affected taxing entity If the affected taxing entity does not act within 45 days after receipt of the agency's request, the request to subordinate shall be deemed approved and shall be final and conclusive (d)An action may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure to determine the validity of bonds or other obligations authorized by this section, the pledge of revenues to those bonds or other obligations authorized by this section, the legality and validity of all proceedings theretofore taken and, as provided in the resolution of the legislative body of the successor agency authorizing the bonds or other obligations authorized by this section, proposed to be taken for the authorization, execution, issuance, sale, and delivery of the bonds or other obligations authorized by this section, and for the payment of debt service on the bonds or the payment of amounts under other obligations authorized by this section Subdivision (c) of Section 33501 shall not apply to any such action The DepaFt,,ent of FlRa Ge department shall be notified of the filing of any action as an affected party 20 Item 13. - 33 FIB -158- (e) Notwithstanding any other law, including, but not limited to, Section 33501, an action to challenge the issuance of bonds, the incurrence of indebtedness, the amendment of an enforceable obligation, or the execution of a financing agreement by a successor agency shall be brought within 30 days after the date on which the oversight board approves the resolution of the successor agency approving the issuance of bonds, the incurrence of indebtedness, the amendment of an enforceable obligation, or the execution of a financing agreement authorized under this section (f) The actions authorized in this section shall be subject to the approval of the oversight board, as provided in Section 34180 Additionally, an oversight board may direct the successor agency to commence any of the transactions described in subdivision (a) so long as the successor agency is able to recover its related costs in connection with the transaction After a successor agency, with approval of the oversight board, issues any bonds, incurs any indebtedness, or executes an amended enforceable obligation pursuant to subdivision (a), the oversight board shall not unilaterally approve any amendments to or early termination of the bonds, indebtedness, or enforceable obligation If, under the authority granted to it by subdivision (h) of Section 34179, the Depal:tp;eRt of FlRaAGe department either reviews and approves or fails to request review within five business days of an oversight board approval of an action authorized by this section, the scheduled payments on the bonds or other indebtedness shall be listed in the Recognized Obligation Payment Schedule and shall not be subject to further review and approval by the department or the Controller The department may extend its review time to 60 days for actions authorized in this section and may seek the assistance of the Treasurer in evaluating proposed actions under this section (g) Any bonds, indebtedness, or amended enforceable obligation authorized by this section shall be considered indebtedness incurred by the dissolved redevelopment agency, with the same legal effect as if the bonds, indebtedness, financing agreement, or amended enforceable obligation had been issued, incurred, or entered into prior to June 282-9, 2011, in full conformity with the applicable provisions of the Community Redevelopment Law that existed prior to that date, shall be included in the successor agency's Recognized Obligation Payment Schedule, and shall be secured by a pledge of, and lien on, and shall be repaid from moneys deposited from time to time in the Redevelopment Property Tax Trust Fund established pursuant to subdivision (c) of Section 34172, as provided in paragraph (2) of subdivision (a) of Section 34183 Property tax revenues pledged to any bonds, indebtedness, or amended enforceable obligations authorized by this section are taxes allocated to the successor agency pursuant to subdivision (b) of Section 33670 and Section 16 of Article XVI of the California Constitution (h) The successor agency shall make diligent efforts to ensure that the lowest long-term cost financing is obtained The financing shall not provide for any bullets or spikes and shall not use variable rates The successor agency shall make use of an independent financial advisor in developing financing proposals and shall make the work products of the financial advisor available to the DepaFtmeRt of FlnaRGe department at its request (i) If an enforceable obligation provides for an irrevocable commitment of pFepeFty tax revenue and where allocation of such revenues is expected to occur over time, the successor agency may petition the department by electronic means and in a manner of the department's choosing to provide written confirmation that its determination of such enforceable obligation as approved in a Recognized Obligation Payment Schedule is final and conclusive, and reflects the department's approval of subsequent payments made pursuant to the 21 xB -1 59- Item 13. - 34 enforceable obligation The successor agency shall provide a copy of such petition to the county auditor-controller at the same time it is submitted to the department The department shall have 100 days from the date of the request for a final and conclusive determination to provide written confirmation of approval or denial of the request For any pending final and conclusive determination requests submitted prior to June 30, 2015, the department shall have until September 30 2015 to provide written confirmation of approval or denial of the request If the confirmation of approval is granted, then the department's review of such payments in future Recognized Obligation Payment Schedules shall be limited to confirming that they are required by the prior enforceable obligation 0) The successor agency may request that the department provide a written determination to waive the two-year statute of limitations on an action to review the validity of the adoption or amendment of a redevelopment plan pursuant to subdivision (c) of Section 33500 or on any findings or determinations made by the agency pursuant to subdivision (d) of Section 33500 The department at its discretion may provide a waiver if it determines it is necessary for the agency to fulfill an enforceable obligation SECTION 8 Section 34178 of the Health and Safety Code is amended to read 34178 (a) Commencing on the operative date of this part, agreements, contracts, or arrangements between the city or county, or city and county that created the redevelopment agency and the redevelopment agency are invalid and shall not be binding on the successor agency, provided, however, that a successor entity wishing to enter or reenter into agreements with the city, county, or city and county that formed the redevelopment agency that it is succeeding may do so subject to the restrictions identified in subdivision (c), and upon obtaining the approval of its oversight board A 6UGGesser age^^" or an eveFsight heard c;h;;" Ant exerr16e (b) Notwithstanding subdivision (a), any of the following agreements are not invalid and may bind the successor agency (1) A duly authorized written agreement entered into at the time of issuance, but in no event later than December 31, 2010, of indebtedness obligations, and solely for the purpose of securing or repaying those indebtedness obligations (2)A written agreement between a redevelopment agency and the city, county, or city and county that created it that provided loans or other startup funds for the redevelopment agency that were entered into within two years of the formation of the redevelopment agency (3)A joint exercise of powers agreement entered into no later than December 31, 2010, in which the redevelopment agency is a member of the joint powers authority However, upon assignment to the successor agency by operation of the act adding this part, the successor agency's rights, duties, and performance obligations under that joint exercise of powers agreement shall be limited by the constraints imposed on successor agencies by the act adding this part (4) A duly authorized written agreement entered into at the time of issuance, but in no event later than June 27, 2011, of indebtedness obligations solely for the refunding or refinancing of 22 Item 13. - 35 FIB -160- other indebtedness obligations that existed prior to January 1, 2011, and solely for the purpose of securing or repaving these the refunded and refinanced indebtedness obligations (c) An oversight board shall not approve any agreements between the successor agency and the city, county, or city and county that formed the redevelopment agency that it is succeeding, except for agreements for the limited purposes set forth in subdivision (b) of Section 34177 3 A successor agency shall not enter or reenter into any agreements with the city, county, or city and county that formed the redevelopment agency that it is succeeding, except for agreements for the limited purposes set forth in subdivision (b) of Section 34177 3 A successor agency or an oversight board shall not exercise the powers granted by subdivision (a) to restore funding for any item that was denied or reduced by the department This subdivision shall apply retroactively to all agreements entered or reentered pursuant to this section on and after 4une 2Q�T June 27 2012 Any agreement entered or reentered pursuant to this section on and after juRe 29 2044 June 27, 2012 that does not comply with this subdivision is ultra vires and void and does not create an enforceable obligation The Legislature finds and declares that this subdivision is necessary to promote the expeditious wind down of redevelopment agency affairs SECTION 9 Section 34179 of the Health and Safety Code is amended to read 34179 (a) Each successor agency shall have an oversight board composed of seven members The members shall elect one of their members as the chairperson and shall report the name of the chairperson and other members to the Department of Finance on or before May 1, 2012 Members shall be selected as follows (1) One member appointed by the county board of supervisors (2) One member appointed by the mayor for the city that formed the redevelopment agency (3) (A) One member appointed by the largest special district, by property tax share, with territory in the territorial jurisdiction of the former redevelopment agency, which is of the type of special district that is eligible to receive property tax revenues pursuant to Section 34188 (B) On or after the effective date of this subparagraph, the county auditor-controller may determine which is the largest special district for purposes of this section (4) One member appointed by the county superintendent of education to represent schools if the superintendent is elected If the county superintendent of education is appointed, then the appointment made pursuant to this paragraph shall be made by the county board of education (5) One member appointed by the Chancellor of the California Community Colleges to represent community college districts in the county (6) One member of the public appointed by the county board of supervisors (7) One member representing the employees of the former redevelopment agency appointed by the mayor or chair of the board of supervisors, as the case may be, from the recognized employee organization representing the largest number of former redevelopment agency employees employed by the successor agency at that time In the case where city or county employees performed administrative duties of the former redevelopment agency, the appointment shall be made from the recognized employee organization representing those 23 HB -161- Item 13. - 36 employees If a recognized employee organization does not exist for either the employees of the former redevelopment agency or the city or county employees performing administrative duties of the former redevelopment agency, the appointment shall be made from among the employees of the successor agency In voting to approve a contract as an enforceable obligation, a member appointed pursuant to this paragraph shall not be deemed to be interested in the contract by virtue of being an employee of the successor agency or community for purposes of Section 1090 of the Government Code (8) If the county or a joint powers agency formed the redevelopment agency, then the largest city by acreage in the territorial jurisdiction of the former redevelopment agency may select one member If there are no cities with territory in a project area of the redevelopment agency, the county superintendent of education may appoint an additional member to represent the public (9) If there are no special districts of the type that are eligible to receive property tax pursuant to Section 34188, within the territorial jurisdiction of the former redevelopment agency, then the county may appoint one member to represent the public (10) If a redevelopment agency was formed by an entity that is both a charter city and a county, the oversight board shall be composed of seven members selected as follows three members appointed by the mayor of the city, if that appointment is subject to confirmation by the county board of supervisors, one member appointed by the largest special district, by property tax share, with territory in the territorial jurisdiction of the former redevelopment agency, which is the type of special district that is eligible to receive property tax revenues pursuant to Section 34188, one member appointed by the county superintendent of education to represent schools, one member appointed by the Chancellor of the California Community Colleges to represent community college districts, and one member representing employees of the former redevelopment agency appointed by the mayor of the city if that appointment is subject to confirmation by the county board of supervisors, to represent the largest number of former redevelopment agency employees employed by the successor agency at that time (11) Each appointing authority identified in this subdivision may, but is not required to, appoint alternate representatives to serve on the oversight board as may be necessary to attend any meeting of the oversight board in the event that the appointing authority's primary representative is unable to attend any meeting for any reason If an alternate representative attends any meeting in place of the primary representative the alternative representative shall have the same participatory and voting rights as all other attending members of the oversight board (b) The Governor may appoint individuals to fill any oversight board member position described in subdivision (a) that has not been filled by May 15, 2012, or any member position that remains vacant for more than 60 days (c) The oversight board may direct the staff of the successor agency to perform work in furtherance of the oversight board's and the successor agency's duties and responsibilities under this part The successor agency shall pay for all of the costs of meetings of the oversight board and may include such costs in its administrative budget Oversight board members shall serve without compensation or reimbursement for expenses (d) Oversight board members are protected by the immunities applicable to public entities and public employees governed by Part 1 (commencing with Section 810) and Part 2 (commencing with Section 814) of Division 3 6 of Title 1 of the Government Code 24 Item 13. - 37 Hs -162- (e) A majority of the total membership of the oversight board shall constitute a quorum for the transaction of business A majority vote of the total membership of the oversight board is required for the oversight board to take action The oversight board shall be deemed to be a local entity for purposes of the Ralph M Brown Act, the California Public Records Act, and the Political Reform Act of 1974 All actions taken by the oversight board shall be adopted by resolution (f) All notices required by law for proposed oversight board actions shall also be posted on the successor agency's Internet Web site or the oversight board's Internet Web site (g) Each member of an oversight board shall serve at the pleasure of the entity that appointed such member (h) (1) The department may review an oversight board action taken pursuant to this part Written notice and information about all actions taken by an oversight board shall be provided to the department as an approved resolution by electronic means and in a manner of the department's choosing A..P an- en shall henAme effentnie fide ID SIRess days after Retina in the manner Without abrogating the department's authority to review all matters related to Recognized Obligation Payment Schedules pursuant to Section 34177, oversight boards are not required to submit the following oversight board actions for department approval (A) Meeting minutes and agendas (B) Administrative budgets (C) Changes in oversight board members, or the selection of an oversight board chair or vice chair (D) Transfers of governmental property pursuant to an approved Long Range Property Management Plan (E) Transfers of property to be retained by the sponsoring entity for future development pursuant to an approved Long-Range Property Management Plan (2) An oversight board action submitted in a manner specified by the department shall become effective five business days after submission, unless the department requests a review of the action Each oversight board shall designate an official to whom the department may make those requests and who shall provide the department with the telephone number and e- mail contact information for the purpose of communicating with the department pursuant to this subdivision Except as otherwise provided in this part, in the event that the department requests a review of a given oversight board action, it shall have 40 days from the date of its request to approve the oversight board action or return it to the oversight board for reconsideration and the oversight board action shall not be effective until approved by the department In the event that the department returns the oversight board action to the oversight board for reconsideration, the oversight board shall resubmit the modified action for department approval and the modified oversight board action shall not become effective until approved by the department If the department reviews a Recognized Obligation Payment Schedule, the department may eliminate or modify any item on that schedule prior to its approval The county auditor-controller shall reflect the actions of the department in determining the amount of property tax revenues to allocate to the successor agency The department shall provide notice to the successor agency 25 HB -163- Item 13. - 38 and the county auditor-controller as to the reasons for its actions To the extent that an oversight board continues to dispute a determination with the department, one or more future recognized obligation schedules may reflect any resolution of that dispute The department may also agree to an amendment to a Recognized Obligation Payment Schedule to reflect a resolution of a disputed item, however, this shall not affect a past allocation of property tax or create a liability for any affected taxing entity (i) Oversight boards shall have fiduciary responsibilities to holders of enforceable obligations and the taxing entities that benefit from distributions of property tax and other revenues pursuant to Section 34188 Further, the provisions of Division 4 (commencing with Section 1000) of the Government Code shall apply to oversight boards Notwithstanding Section 1099 of the Government Code, or any other law, any individual may simultaneously be appointed to up to five oversight boards and may hold an office in a city, county, city and county, special district, school district, or community college district 0) Except as specified in subdivision (q), commencing GGg4menG4A9 on and after July 1, 2016, in each county where more than one oversight board was created by operation of the act adding this part, there shall be only one oversight beaFd board, which shall be staffed by the county auditor-controller, by another county entity selected by the county auditor-controller, or by a city within the county that the county auditor-controller may select after consulting with the department Pursuant to Section 34183, The the county auditor-controller may recover all behalf of the audItOP GGRtFG4e4:-, directly from the Redevelopment Property Tax Trust Fund, and distribute to the appropriate city or county entity, reimbursement for all costs incurred by it or by the city or county entity pursuant to this subdivision However, if only one successor agency exists within the county, the county auditor-controller may designate the successor agency to staff the oversight board The oversight board is appointed as follows (1) One member may be appointed by the county board of supervisors (2) One member may be appointed by the city selection committee established pursuant to Section 50270 of the Government Code In a city and county, the mayor may appoint one member (3) One member may be appointed by the independent special district selection committee established pursuant to Section 56332 of the Government Code, for the types of special districts that are eligible to receive property tax revenues pursuant to Section 34188 (4) One member may be appointed by the county superintendent of education to represent schools if the superintendent is elected If the county superintendent of education is appointed, then the appointment made pursuant to this paragraph shall be made by the county board of education (5) One member may be appointed by the Chancellor of the California Community Colleges to represent community college districts in the (6) One member of the public may be appointed by the county board of supervisors (7) One member may be appointed by the recognized employee organization representing the largest number of successor agency employees in the county 26 Item 13. - 39 HB -164- (k) The Governor may appoint individuals to fill any oversight board member position described in subdivision 0) that has not been filled by July 15, 2016, or any member position that remains vacant for more than 60 days (1) Commencing on and after July 1, 2016, in each county where only one oversight board was created by operation of the act adding this part, then there will be no change to the composition of that oversight board as a result of the operation of subdivision (b D (m) Any oversight board for a given successor ageRG agency, with the exception of county oversight boards, shall cease to exist when-all of the 'RdebtedRess of the disseiv redeyelenmen4 ",e.,,.y has boon repaid the successor agency has been formally dissolved pursuant to Section 34187 A county oversight board shall cease to exist when all successor agencies subject to its oversight have been formally dissolved pursuant to Section 34187 (n) An oversight board may direct a successor agency to provide additional legal or financial advice than what was given by agency staff (o)An oversight board is authorized to contract with the county or other public or private agencies for administrative support (p) On matters within the purview of the oversight board, decisions made by the oversight board supersede those made by the successor agency or the staff of the successor agency (q) (1) Commencing on and after July 1, 2016, in each county where more than forty (40) oversight boards were created by operation of the act adding this part, there shall be five oversight boards which shall each be staffed in the same manner as specified in subdivision (i) The membership of each oversight board shall be as specified in paragraphs (1) through (7), inclusive, of subdivision 0) (2) The oversight boards shall be numbered one through five, and their respective jurisdictions shall encompass the territory located within the respective borders of the first through the fifth county board of supervisors districts, as those borders existed on July 1, 2016 Except as specified in paragraph (3), each oversight board shall have jurisdiction over each successor agency located within its borders (3) If a successor agency has territory located within more than one county board of supervisor's district, the county board of supervisors shall, no later than July 15, 2016, determine which oversight board shall have jurisdiction over that successor agency The county board of supervisors or their designee shall report this information to the successor agency and the department by the aforementioned date (4) The successor agency to the former redevelopment agency created by a county where more than forty (40) oversight boards were created by operation of the act adding this part, shall be under the jurisdiction of the oversight board with the fewest successor agencies under its iurisdiction SECTION 10 Section 34179 7 of the Health and Safety Code is amended to read 34179 7 (a) Upon full payment of the amounts determined in subdivision (d) or(e) of Section 34179 6 as reported by the county auditor-controller pursuant to subdivision (g) of Section 34179 6 and of any amounts due as determined by Section 34183 5, or upon a final judicial 27 H B -1 65- Item 13. - 40 determination of the amounts due and confirmation that those amounts have been paid by the county auditor-controller, or upon entering into a written installment payment plan with the department for payment of the amounts due, the department shall issue, within five business days, a finding of completion of the requirements of Section 34179 6 to the successor agency (1) Notwithstandinq any other provision of law, if a successor agency fails by December 31, 2015 to pay, or to enter into a written installment payment plan with the department for the Payment of, the amounts determined in subdivisions (d) or (e) of Section 34179 6, or the amounts determined by Section 34183 5, the successor agency shall never receive a finding of completion (2) If a successor agency, city, county, or city and county pays, or enters into a written installment payment plan with the department for the payment of, the amounts determined in subdivisions (d) or(e) of Section 34179 6, or the amounts determined by Section 34183 5, and the successor agency, city, county, or city and county subsequently receives a final judicial determination that reduces or eliminates the amounts determined, an enforceable obligation for the reimbursement of the excess amounts paid shall be created (3) If, upon consultation with the county auditor-controller, the department finds that a successor agency, city, county, or city and county has failed to fully make one or more Payments agreed to in the written installment payment plan, the following shall occur unless the county auditor-controller reports within 10 business days that the successor agency, city, county, or city and county has made the entirety of the incomplete payment or payments (A) The provisions of Section 34191 3, subdivision (b) of Section 34191 4, and Section 34191 5 shall not apply to the successor agencv (B) Oversight board actions taken under subdivision (b) of Section 34191 4 shall no longer be effective Any loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agencv that were deemed enforceable obligations pursuant to such oversight board actions shall no longer be enforceable obligations (C) If the department has approved a long-range property management plan for the successor agencv, that plan shall no longer be effective Any property that has not been disposed of through the plan prior to non-payment discussed in Paragraph (3) shall be disposed of pursuant to Section 34181 (D) If applicable, the successor agency's Last and Final Recognized Obligation Payment Schedule shall cease to be effective However, to ensure the flow of lawful payments to third parties is not impeded, the Last and Final Recognized Obligation Payment schedule shall remain operative until the successor agency's next Recognized Obligation Payment Schedule is approved and becomes operative pursuant to Section 34177 (4) Paragraph (3) shall not be construed to prevent the department from working with a successor agency, city, county, or city and county to amend the terms of a written installment Payment plan if the department determines the amendments are necessitated by the successor agencv, city, county, or city and county's fiscal situation SECTION 11 Section 34179 9 of the Health and Safety Code is added to read 28 Item 13. - 41 H B -166- 34179 9 (a) The city, county, or city and county that created the former redevelopment agency shall return to the successor agency all assets transferred to the city, county, or city and county ordered returned pursuant to Section 34167 5 ,(b) The city, county, or city and county that created the former redevelopment agency shall return to the successor agency all cash and cash equivalents transferred to the city, county, or city and county that were not required by an enforceable obligation as determined pursuant to Section 34179 5 and 34179 6 (c) The city, county, or city and county that created the former redevelopment agency shall return to the successor agency any money or assets transferred to the city, county, or city and county by the successor agency that were not authorized pursuant to an effective oversight board action or Recognized Obligation Payment Schedule determination SECTION 12 Section 34180 of the Health and Safety Code is amended to read 34180 All of the following successor agency actions shall first be approved by the oversight board (a) The establishment of new repayment terms for outstanding loans where the terms have not been specified prior to the date of this part An oversight board shall not have the authority to reestablish loan agreements between the successor agency and the city, county, or city and county that formed the redevelopment agency except as provided in Chapter 9 (commencing with Section 34191 1) (b) The issuance of bonds or other indebtedness or the pledge or agreement for the pledge of property tax revenues (formerly tax increment prior to the effective date of this part) pursuant to subdivision (a) of Section 34177 5 (c) Setting aside of amounts in reserves as required by indentures, trust indentures, or similar documents governing the issuance of outstanding redevelopment agency bonds (d) Merging of project areas (e) Continuing the acceptance of federal or state grants, or other forms of financial assistance from either public or private sources, if that assistance is conditioned upon the provision of matching funds, by the successor entity as successor to the former redevelopment agency, in an amount greater than 5 percent (f) (1) If a city, county, or city and county wishes to retain any properties or other assets for future redevelopment activities, funded from its own funds and under its own auspices, it must reach a compensation agreement with the other taxing entities to provide payments to them in proportion to their shares of the base property tax, as determined pursuant to Section 34188, for the value of the property retained (2) If no other agreement is reached on valuation of the retained assets, the value will be the fair market value as of the 2011 property tax lien date as determined by an independent appraiser approved by the oversight board (g) Establishment of the Recognized Obligation Payment Schedule 29 HB -167- Item 13. - 42 (h)A request by the successor agency to enter or reenter into an agreement with the city, county, or city and county that formed the redevelopment agency that it is SUGGeeding- succeeding, pursuant to Section 34178 An oversight board shall not have the authority to reestablish loan agreements between the successor agency and the city, county, or city and county that formed the redevelopment agency except as provided in Chapter 9 (commencing with Section 34191 1) Any actions to establish or reestablish any other agreements that are+14 authorized under this part, with the city, county, or city and county that formed the redevelopment agency are invalid until they are included in an approved and valid Recognized Obligation Payment Schedule (i) A request by a successor agency or taxing entity to pledge, or to enter into an agreement for the pledge of, property tax revenues pursuant to subdivision (b) of Section 34178 0) Any document submitted by a successor agency to an oversight board for approval by any provision of this part shall also be submitted to the county administrative officer, the county auditor-controller, and the Department of Finance at the same time that the successor agency submits the document to the oversight board SECTION 13 Section 34181 of the Health and Safety Code is amended to read 34181 The oversight board shall direct the successor agency to do all of the following (a)MDispose of all assets and properties of the former redevelopment agency, provided, however, that the oversight board may instead direct the successor agency to transfer ownership of those assets that were constructed and used for a governmental purpose, such as roads, school buildings, parks, police and fire stations, libraries, public parking lots, and local agency administrative buildings, to the appropriate public Jurisdiction pursuant to any existing agreements relating to the construction or use of such an asset Any compensation to be provided to the successor agency for the transfer of the asset shall be governed by the agreements relating to the construction or use of that asset Disposal shall be done expeditiously and in a manner aimed at maximizing value Asset disposition may be accomplished by a distribution of income to taxing entities proportionate to their property tax share from one or more properties that may be transferred to a public or private agency for management pursuant to the direction of the oversight board (2) "Public parking lots" do not include properties that generate revenues in excess of reasonable maintenance costs of the properties (b) Cease performance in connection with and terminate all existing agreements that do not qualify as enforceable obligations (c) Transfer housing assets pursuant to Section 34176 (d) Terminate any agreement, between the dissolved redevelopment agency and any public entity located in the same county, obligating the redevelopment agency to provide funding for any debt service obligations of the public entity or for the construction, or operation of facilities owned or operated by such public entity, in any instance where the oversight board has found that early termination would be in the best interests of the taxing entities 30 Item 13. - 43 HB -168- (e) Determine whether any contracts, agreements, or other arrangements between the dissolved redevelopment agency and any private parties should be terminated or renegotiated to reduce liabilities and increase net revenues to the taxing entities, and present proposed termination or amendment agreements to the oversight board for its approval The board may approve any amendments to or early termination of those agreements if it finds that amendments or early termination would be in the best interests of the taxing entities (f) All actions taken pursuant to subdivisions (a) and (c) shall be approved by resolution of the oversight board at a public meeting after at least 10 days' notice to the public of the specific proposed actions The actions shall be subject to review by the department pursuant to Section 34179 except that the department may extend its review period by up to 60 days If the department does not object to an action subject to this section, and if no action challenging an action is commenced within 60 days of the approval of the action by the oversight board, the action of the oversight board shall be considered final and can be relied upon as conclusive by any person If an action is brought to challenge an action involving title to or an interest in real property, a notice of pendency of action shall be recorded by the claimant as provided in Title 4 5 (commencing with Section 405) of Part 2 of the Code of Civil Procedure within a 60-day period SECTION 14 Section 34183 of the Health and Safety Code is amended to read 34183 (a) Notwithstanding any other law, from February 1, 2012, to July 1, 2012, and for each fiscal year thereafter, the county auditor-controller shall, after deducting administrative costs allowed under Section 34182 and Section 95 3 of the Revenue and Taxation Code, allocate moneys in each Redevelopment Property Tax Trust Fund as follows (1) (A) Subject to any prior deductions required by subdivision (b), first, the county auditor- controller shall remit from the Redevelopment Property Tax Trust Fund to each local agency and school entity an amount of property tax revenues in an amount equal to that which would have been received under Section 33401, 33492 140, 33607, 33607 5, 33607 7, or 33676, as those sections read on January 1, 2011, or pursuant to any passthrough agreement between a redevelopment agency and a taxing entity that was entered into prior to January 1, 1994, that would be in force during that fiscal year, had the redevelopment agency existed at that time The amount of the payments made pursuant to this paragraph shall be calculated solely on the basis of passthrough payment obligations, existing prior to the effective date of this part and continuing as obligations of successor entities, shall occur no later than May 16, 2012, and no later than June 1, 2012, and each January 2 and June 1 thereafter Notwithstanding subdivision (e) of Section 33670, that portion of the taxes in excess of the amount identified in subdivision (a) of Section 33670, which are attributable to a tax rate levied by a taxing entity for the purpose of producing revenues in an amount sufficient to make annual repayments of the principal of, and the interest on, any bonded indebtedness for the acquisition or improvement of real property shall be allocated to, and when collected shall be paid into, the fund of that taxing entity (B) Notwithstanding subdivision (b) of Section 33670, that portion of the taxes in excess of the amount identified in subdivision (a) of Section 33670, which are attributable to a property tax rate approved by the voters of a city, county, city and county, or special district to make Payments in support of pension programs or in support of capital protects and programs related to the State Water Proiect, and levied in addition to the property tax rate limited by subdivision (a) of Section I of Article XIII A of the California Constitution, shall be allocated to, and when collected shall be paid into, the fund of that taxing entity, unless the amounts in question are 31 xB -169- Item 13. - 44 pledged as security for the payment of any indebtedness obligation, as defined in subdivision (e) of Section 34171 Notwithstanding any other law, all allocations of revenues above one cent derived from the imposition of a property tax rate, approved by the voters of a city, county, city and county, or special district to make payments in support of pension programs or in support of capital projects and programs related to the State Water Project and levied in addition to the Property tax rate limited by subdivision (a) of Section 1 of Article XIII A of the California Constitution, made by any county auditor-controller prior to July 1, 2015, are valid and shall not be affected by this section A city, county, city and county, county auditor-controller, successor agency, department, or affected taxing entity shall not be subject to any claim for money, damages, or reallocated revenues based on any allocation of such revenues above one cent prior to July 1, 2015 The amount of passthrough payments computed pursuant to this section, including any passthrough agreements, shall be computed as though the requirement to set aside funds for the Low and Moderate Income Housing Fund was still in effect (2) Second, on June 1, 2012, and each January 2 and June 1 thereafter, to each successor agency for payments listed in its Recognized Obligation Payment Schedule for the six-month fiscal period beginning January 1, 2012, and July 1, 2012, and each January 2 and June 1 thereafter, in the following order of priority (A) Debt service payments scheduled to be made for tax allocation bonds (B) Payments scheduled to be made on revenue bonds, but only to the extent the revenues pledged for them are insufficient to make the payments and only if the agency's tax increment revenues were also pledged for the repayment of the bonds (C) Payments scheduled for other debts and obligations listed in the Recognized Obligation Payment Schedule that are required to be paid from former tax increment revenue (3) Third, on June 1, 2012, and each January 2 and June 1 thereafter, to each successor agency for the administrative cost allowance, as defined in Section 34171, for administrative costs set forth in an approved administrative budget for those payments required to be paid from former tax increment revenues (4) Fourth, on June 1, 2012, and each January 2 and June 1 thereafter, any moneys remaining in the Redevelopment Property Tax Trust Fund after the payments and transfers authorized by paragraphs (1) to (3), inclusive, shall be distributed to local agencies and school entities in accordance with Section 34188 The only exception shall be for moneys remaining in the Redevelopment Property Tax Trust Fund that are attributable to a property tax rate approved by the voters of a city, county, city and county, or special district to make payments in support of pension programs or in support of capital projects and programs related to the State Water Project, and levied in addition to the property tax rate limited by subdivision (a) of Section I of Article XIII A of the California Constitution The county auditor-controller shall return these particular remaining moneys to the levying taxing entity (b) If the successor agency reports, no later than April 1, 2012, and May 1, 2012, and each December 1 and May 1 thereafter, to the county auditor-controller that the total amount available to the successor agency from the Redevelopment Property Tax Trust Fund allocation to that successor agency's Redevelopment Obligation Retirement Fund, from other funds transferred from each redevelopment agency, and from funds that have or will become available through asset sales and all redevelopment operations, are insufficient to fund the payments required by paragraphs (1) to (3), inclusive, of subdivision (a) in the next six-month fiscal period, 32 Item 13. - 45 HB -1 70- the county auditor-controller shall notify the Controller and the Department of Finance no later than 10 days from the date of that notification The county auditor-controller shall verify whether the successor agency will have sufficient funds from which to service debts according to the Recognized Obligation Payment Schedule and shall report the findings to the Controller If the Controller concurs that there are insufficient funds to pay required debt service, the amount of the deficiency shall be deducted first from the amount remaining to be distributed to taxing entities pursuant to paragraph (4), and if that amount is exhausted, from amounts available for distribution for administrative costs in paragraph (3) If an agency, pursuant to the provisions of Section 33492 15, 33492 72, 33607 5, 33671 5, 33681 15, or 33688 or as expressly provided in a passthrough agreement entered into pursuant to Section 33401, made passthrough payment obligations subordinate to debt service payments required for enforceable obligations, funds for servicing bond debt may be deducted from the amounts for passthrough payments under paragraph (1), as provided in those sections, but only to the extent that the amounts remaining to be distributed to taxing entities pursuant to paragraph (4) and the amounts available for distribution for administrative costs in paragraph (3) have all been exhausted (c) The county treasurer may loan any funds from the county treasury to the Redevelopment Property Tax Trust Fund of the successor agency for the purpose of paying an item approved on the Recognized Obligation Payment Schedule at the request of the Department of Finance that are necessary to ensure prompt payments of redevelopment agency debts An enforceable obligation is created for repayment of those loans (d) The Controller may recover the costs of audit and oversight required under this part from the Redevelopment Property Tax Trust Fund by presenting an invoice therefor to the county auditor-controller who shall set aside sufficient funds for and disburse the claimed amounts prior to making the next distributions to the taxing entities pursuant to Section 34188 Subject to the approval of the Director of Finance, the budget of the Controller may be augmented to reflect the reimbursement, pursuant to Section 28 00 of the Budget Act (e) Within 10 days of each distribution of property tax, the county auditor-controller shall provide a report to the department regarding the distribution for each successor agency that includes information on the total available for allocation, the passthrough amounts and how they were calculated, the amounts distributed to successor agencies, and the amounts distributed to taxing entities in a manner and form specified by the department This reporting requirement shall also apply to distributions required under subdivision (b) of Section 34183 5 SECTION 15 Section 34186 of the Health and Safety Code is amended to read 34186 (a) Differences between actual payments and past estimated obligations on recognized obligation payment'schedules shall be reported in subsequent recognized obligation payment schedules and shall adjust the amount to be transferred to the Redevelopment Obligation Retirement Fund pursuant to this part These estimates and assel+ats accounts, as well as cash balances, shall be subject to aLt& review by the county auditor-controller The county auditor-controller's review shall be subject to the department's review and approval (b) Differences between actual passthrough obligations and property tax amounts and the amounts used by the county auditor-controller in determining the amounts to be allocated under Sections 34183 and 34188 for a prior six-month or annual perae4 period, whichever is applicable, shall be applied as adjustments to the property tax and passthrough amounts in subsequent periods as they become known County auditor-controllers shall not delay payments 33 xB -1 7 1- Item 13. - 46 under this part to successor agencies or taxing entities based on pending transactions, disputes, or for any other reason, other than a court order, and shall use the Recognized Obligation Payment Schedule approved by the DepaFtmeRt of FlnaRGe department and the most current data for passthroughs and property tax available prior to the statutory distribution dates to make the allocations required on the dates required (c) Commencing on October 1, 2018, the differences between actual payments and past estimated obligations on a Recognized Obligation Payment Schedule shall be submitted by the successor agency to the county auditor-controller for review The county auditor-controller shall provide to the department in a manner of the department's choosing a review of the differences between actual payments and past estimated obligations, including cash balances, no later than February 1, 2019, and each February 1 thereafter SECTION 16 Section 34187 of the Health and Safety Code is amended to read 34187 (a) (1) Commencing May 1, 2012, whenever a recognized obligation that had been identified in the Recognized Payment Obligation Schedule is paid off or retired, either through early payment or payment at maturity, the county auditor-controller shall distribute to the taxing entities, in accordance with the provisions of the Revenue and Taxation Code, all property tax revenues that were associated with the payment of the recognized obligation (2) Notwithstanding paragraph (1), the department may authorize a successor agency to retain property tax that otherwise would be distributed to affected taxing entities pursuant to this subdivision, to the extent the department determines the successor agency requires those funds for the payment of enforceable obligations Upon making a determination, the department shall provide the county auditor-controller with information detailing the amounts that it has authorized the successor agency to retain Upon determining the successor agency no longer requires additional funds pursuant to this subdivision, the department shall notify the successor agency and the county auditor-controller The county auditor-controller shall then distribute the funds in question to the affected taxing entities in accordance with the provisions of the Revenue and Taxation Code (b)When all of the debt of aa readevelopmeRt ageRGY has enforceable obligations that had been identified in the Recognized Obligation Payment Schedule have been retired or paid off, all real Property has been disposed of pursuant to Section 34181 or Section 34191 4, and all outstanding litigation has been resolved, the successor agency shall dispose of^0 Pe,,,^-^ing shall, within 30 days of meeting the aforementioned criteria, submit to the oversight board a request, with a copy of the request to the county auditor-controller, to formally dissolve the successor agency The oversight board shall approve the request within 30 days, and shall submit the request to the department (c) If a redevelopment agency was not allocated property tax revenue pursuant to either subdivision (b) of Section 16 of Article XVI of the California Constitution or Section 33670 prior to February 1, 2012, the successor agency shall, no later than September 1, 2015, submit to the oversight board a request to formally dissolve the successor agency The oversight board shall approve this request within 30 days, and shall submit the request to the department 34 Item 13. - 47 HB -172- (d) The department shall have 30 days to approve or deny a request submitted pursuant to subdivisions (b) or(c) (e)When the department has approved a request to formally dissolve a successor agency, the successor agency shall take the following steps within 100 days of the Department's notification (1) Dispose of all remaining assets as directed by the oversight board Any proceeds from the disposition of assets shall be transferred to the county auditor-controller for distribution to the affected taxing entities pursuant to Section 34183 (2) Notify the oversight board that it has complied with paragraph (1) (f) Upon receipt of the notification required in paragraph (2) of subdivision (e) of this section, the oversight board shall verify all obligations have been retired or paid off, all outstanding litigation has been resolved, and all remaining assets have been disposed of with any proceeds remitted to the county auditor-controller for distribution to the affected taxing entities Within 10 days of verification, the oversight board shall adopt a final resolution of dissolution for the successor agency, which shall be effective immediately This resolution shall be submitted to the sponsoring entity, the county auditor-controller, the State Controller's Office, and the department by electronic means and in a manner of each entities' choosing (q) Subdivisions (b)through (f) shall not apply to those entities specifically recognized as already dissolved by the Department by August 1, 2015 (h) When all enforceable obligations that had been approved in the Recognized Obligation Payment Schedule have been retired or paid off as specified in subdivision (b), all passthrough payment obligations required pursuant to Sections 33401, 33492 140, 33607, 33607 5, 33607 7, 33676, or any passthrough agreement between a redevelopment agency and a taxing entity that was entered into prior to January 1, 1994, shall cease, and no property tax shall be allocated to the Redevelopment Property Tax Trust Fund for that agency The Legislature finds and declares that this subdivision is declaratory of existing law 0) When a successor agency is finally dissolved under subdivision (b), with respect to any existing community facilities district formed by a redevelopment agency, the legislative body of the city or county that formed the redevelopment agency shall become the legislative body of the community facilities district, and any existing obligations of the former redevelopment agency or its successor agency, in its capacity as the legislative body of the community facilities district, shall become the obligations of the new legislative body of the community facilities district SECTION 17 Section 34189 of the Health and Safety Code is amended to read 34189 (a) Commencing on the effective date of this part, all provisions of the Community Redevelopment Law that depend on the allocation of tax increment to redevelopment agencies, including, but not limited to, Sections 33445, 33640, 33641, 33645, and subdivision (b) of Section 33670, shall be inoperative Solely for the purposes of the payment of enforceable obligations defined by subparagraphs (A) through (G), inclusive, of paragraph (1) of subdivision (d) of Section 34171, and for no other purpose whatsoever, a successor agency is not subject to the limitations relating to time, number of tax dollars, or any other matters set forth in Sections 33333 2, 33333 4, and 33333 6 aP4 4-4 35 HB -1 73- Item 13. - 48 T#1s Notwithstanding any other provision in this Section, this subdivision shall not result in the restoration or continuation of funding for projects whose contractual terms specified that project funding would cease once the limitations specified in any of Sections 33333 2, 33333 4, or 33333 6, a 34 were realized (b) To the extent that a provision of Part 1 (commencing with Section 33000), Part 1 5 (commencing with Section 34000), Part 1 6 (commencing with Section 34050), and Part 1 7 (commencing with Section 34100) conflicts with this part, the provisions of this part shall control Further, if a provision of Part 1 (commencing with Section 33000), Part 1 5 (commencing with Section 34000), Part 1 6 (commencing with Section 34050), or Part 1 7 (commencing with Section 34100) provides an authority that the act adding this part is restricting or eliminating, the restriction and elimination provisions of the act adding this part shall control (c) It is intended that the provisions of this part shall be read in a manner as to avoid duplication of payments SECTION 18 Section 34191 3 of the Health and Safety Code is amended to read 34191 3 Notwithstanding Section 34191 1, the requirements specified in subdivision (e) of Section 34177 and subdivision (a) of Section 34181 shall be suspended, except as those provisions apply to the transfers for governmental use, until the Department of Finance has approved a long-range property management plan pursuant to subdivision (b) of Section 34191 5, at which point the plan shall govern, and supersede 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 plan by January 1, 2016, subdivision (e) of Section 34177 and subdivision (a) of Section 34181 shall be operative with respect to that successor agency (b) If the department has approved a successor agency's long-range property management plan prior to January 1, 2016, the successor agency may amend its long-range property management plan once, solely to allow for retention of real properties that constitute "public parking lots," for governmental use pursuant to Section 34181 An amendment to a successor agency's long-range property management plan under this subdivision shall be submitted to its oversight board for review and approval pursuant to Section 34179, and any such amendment shall be submitted to the department prior to July 1, 2016 SECTION 19 Section 34191 4 of the Health and Safety Code is amended to read 341914 The following provisions shall apply to any successor agency that has been issued a finding of completion by the Department of FlRa Ge department (a)All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179 5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the department of the long- range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191 5 unless that property is subject to the requirements of any existing enforceable obligation (b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment 36 Item 13. - 49 FIB -174- agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes (2) For purpose of this section, "loan agreements" shall mean loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule "Loan agreements" do not include agreements under which the former redevelopment agency was required to pay or reimburse the city, county, or city and county that created the former redevelopment agency for the cost of services provided by, or obligations incurred under contracts entered into with, third parties by the city, county, or city and county that created the former redevelopment agency (3) If the oversight board finds that the loan is an enforceable obligation, the aGGUMWI any Previously unpaid interest on the remaining principal amount of the loan shall be recalculated 40M GF!g'Rat'GR at the quarterly at an interest rate eamed by fuRds deposited 'RtG the Le Anenn„ 'n„estmen+ C„nr) not to exceed one percent The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years at an-a prospective interest rate not to exceed the interest rate earned by f, Rds deposited ,n+„the L OGal gene„ C one percent Moneys repaid shall be applied first to principal, and second to interest The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations (A) Loan repayments shall not be made prior to the 2013-14 fiscal year Beginning in the 2013-14 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (g) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 2012-13 base year, provided, however, that calculation of the amount distributed to taxing entities during the 2012-13 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179 5 to 34179 8, inclusive Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph of subdivision (e) of Section 34176 (B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176 Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176 1 (C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid Transfers to the Low 37 HB -175- Item 13. - 50 and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176 1 (c) (1) -is e PUFP6$e5 nr�vr'v h-rohth2-GhARd-ro wp-Fe sold- {i (A) Notwithstanding Section 34177 3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects An expenditure made pursuant to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess proceeds Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency (B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010 cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation (2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions (A) No more than 15 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B) (B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191 6, the agency may expend no more than 30 percent of the proceeds derived from the bonds, subject to the following adjustments 0) If the bonds were issued during the period of January 1, 2011 through January 31, 2011, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 55 percent 00 If the bonds were issued during the period of February 1, 2011 through February 28, 2011, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 50 percent 00 If the bonds were issued during the period of March 1, 2011 through March 31, 2011, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent (iv) If the bonds were issued during the period of April 1, 2011 through April 30, 2011, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent 38 Item 13. - 51 HB -176- (v) If the bonds were issued during the period of May 1, 2011 through May 31, 2011, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent (C) Remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) of this paragraph shall be used at the at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation (d) The provisions of this section shall apply retroactively to actions occurring on or after June 28, 2011 SECTION 20 Section 34191 5 of the Health and Safety Code is amended to read 34191 5 (a) There is hereby established a Community Redevelopment Property Trust Fund, administered by the successor agency, to serve as the repository of the former redevelopment agency's real properties identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179 5 (b) The successor agency shall prepare a long-range property management plan that addresses the disposition and use of the real properties of the former redevelopment agency If the former redevelopment agency did not have real properties, the successor agency shall prepare a long- range property management plan certifying that the successor agency does not have real properties of the former redevelopment agency for disposition or use The Ip an shall be submitted to the oversight board and the Department of Finance for approval no later than six months following the issuance to the successor agency of the finding of completion (c) The long-range property management plan shall do all of the following (1) Include an inventory of all properties in the trust The inventory shall consist of all of the following information (A) The date of the acquisition of the property and the value of the property at that time, and an estimate of the current value of the property (B) The purpose for which the property was acquired (C) Parcel data, including address, lot size, and current zoning in the former agency redevelopment plan or specific, community, or general plan (D) An estimate of the current value of the parcel including, if available, any appraisal information (E) An estimate of any lease, rental, or any other revenues generated by the property, and a description of the contractual requirements for the disposition of those funds (F) The history of environmental contamination, including designation as a brownfield site, any related environmental studies, and history of any remediation efforts (G) A description of the property's potential for transit-oriented development and the advancement of the planning objectives of the successor agency 39 FIB -177- Item 13. - 52 (H) A brief history of previous development proposals and activity, including the rental or lease of property (2) Address the use or disposition of all of the properties in the trust Permissible uses include the retention of the property for governmental use pursuant to subdivision (a) of Section 34181, the retention of the property for future development, the sale of the property, or the use of the property to fulfill an enforceable obligation The plan shall separately identify and list properties in the trust dedicated to governmental use purposes and properties retained for purposes of fulfilling an enforceable obligation With respect to the use or disposition of all other properties, all of the following shall apply (A) (i) If the plan directs the use or liquidation of the property for a project identified in an approved redevelopment plan, the property shall transfer to the city, county, or city and county (ii) For purposes of this subparagraph, the term "identified in an approved redevelopment plan" includes properties listed in a community plan or a five-year implementation plan (iii) The department or an oversight board may require approval of a compensation agreement or agreements, as described in subdivision (f) of Section 34180, prior to any transfer of property pursuant to this subparagraph, provided, however, that a compensation agreement or agreements may be developed and executed subsequent to the approval process of a long- range property management plan (B) If the plan directs the liquidation of the property or the use of revenues generated from the property, such as lease or parking revenues, for any purpose other than to fulfill an enforceable obligation or other than that specified in subparagraph (A), the proceeds{"^^' the Sale shall be distributed as property tax to the taxing entities (C) Property shall not be transferred to a successor agency, city, county, or city and county, unless the long-range property management plan has been approved by the oversight board and the Department of Finance (d) The department shall only consider whether the long-range property management plan makes a good faith effort to address the requirements set forth in subdivision (c) (e) The department shall approve long-range property management plans as expeditiously as possible f) Actions to implement the disposition of property pursuant to an approved long-range property management plan shall not require review by the department SECTION 21 Section 34191 6 of the Health and Safety Code is added to read 34191 6 (a) Beginning August 1, 2015, successor agencies may submit a Last and Final Recognized Obligation Payment Schedule for approval by the oversight board and the department if all of the following conditions are met (1) The remaining debt of a successor agency is limited to administrative costs and payments pursuant to enforceable obligations with defined payment schedules including, but not limited to, debt service, loan agreements, and contracts 40 Item 13. - 53 HB -178- (2) All remaining obligations have been previously listed on a Recognized Obligation Payment Schedule and approved for payment by the department pursuant to subdivision (m) or (o) of Section 34177 (3) The successor agency is not a party to outstanding or unresolved litigation (b) A successor agency that meets the conditions in subdivision (a) may submit a Last and Final Recognized Obligation Payment Schedule to its oversight board for approval at any time The successor agency may then submit the oversight board-approved Last and Final Recognized Obligation Payment Schedule to the department and only in a manner provided by the Department The Last and Final Recognized Obligation Payment Schedule shall not be effective until reviewed and approved by the Department as provided for in subdivision (c) of this section The successor agency shall also submit a copy of the oversight board-approved Last and Final Recognized Obligation Payment Schedule to the county administrative officer, the county auditor-controller, and post it to the successor agency's Internet web site at the same time that the successor agency submits the Last and Final Recognized Obligation Payment Schedule to the department (1) The Last and Final Recognized Obligation Payment Schedule shall list the remaining enforceable obligations of the successor agency in the following order (A) Enforceable obligations to be funded from the Redevelopment Property Tax Trust Fund (B) Enforceable obligations to be funded from bond proceeds or enforceable obligations required to be funded from other legally or contractually dedicated or restricted funding sources (C) Loans or deferrals authorized for repayment pursuant to subparagraph (G) of paragraph (1) of subdivision (d) of Section 34171 or Section 34191 4 (2) The Last and Final Recognized Obligation Payment Schedule shall include the total outstanding obligation and a schedule of remaining payments for each enforceable obligation listed pursuant to subparagraphs (A) and (B) of paragraph (1) of this subdivision, and the total outstanding obligation and interest rate, not to exceed two (2) percent, for loans or deferrals listed pursuant to subparagraph (C) of paragraph (1) of this subdivision (c) The department shall have 100 days to review the Last and Final Recognized Obligation Payment Schedule submitted pursuant to subdivision (b) of this section The department may make any amendments or changes to the Last and Final Recognized Obligation Payment Schedule provided such amendments or changes are agreed to by the successor agency in writing If the successor agency and the department cannot come to an agreement on the proposed amendments or changes, the department shall issue a letter denying the Last and Final Recognized Obligation Payment Schedule All Last and Final Recognized Obligation Payment Schedules approved by the Department shall become effective on the first day of the subsequent Redevelopment Property Tax Trust Fund distribution period If the Last and Final Recognized Obligation Payment Schedule is approved less than 15 days before the date of the Property tax distribution, the Last and Final Recognized Obligation Payment Schedule shall not be effective until the subsequent Redevelopment Property Tax Trust Fund distribution period (1) Upon approval by the department, the Last and Final Recognized Obligation Payment Schedule shall establish the maximum amount of Redevelopment Property Tax Trust Funds to 41 HB -1 79- Item 13. - 54 be distributed to the successor agency for each remaining fiscal year until all obligations have been fully paid (2) Successor agencies may submit no more than two requests to the department to amend the approved Last and Final Recognized Obligation Payment Schedule Requests shall first be approved by the oversight board and then submitted to the department for review A request shall not be effective until reviewed and approved by the department The request shall be provided to the department by electronic means and in a manner of the department's choosing The department shall have 100 days from the date received to approve or deny the successor agency's request All amended Last and Final Recognized Obligation Payment Schedules approved by the department shall become effective in the subsequent Redevelopment Property Tax Trust Fund distribution period If an amended Last and Final Recognized Obligation Payment Schedule is approved less than 15 days before the date of the property tax distribution, the Last and Final Recognized Obligation Payment Schedule shall not be effective until the subsequent Redevelopment Property Tax Trust Fund distribution period (3) Any revenues, interest and earnings of the successor agency not authorized for use pursuant to the approved Last and Final Recognized Obligation Payment Schedule shall be remitted to the county auditor-controller for distribution to the affected taxing entities Notwithstanding Sections 34191 3 and 34191 5, proceeds from the disposition of real property subsequent to the approval of the Last and Final Recognized Obligation Payment Schedule that are not necessary for the payment of an enforceable obligation shall be remitted to the county auditor-controller for distribution to the affected taxing entities (4) A successor agency shall not expend more than the amount approved for each enforceable obligation listed and approved on the Last and Final Recognized Obligation Payment Schedule (5) If a successor agency receives insufficient funds to pay for the enforceable obligations approved in the Last and Final Recognized Obligation Payment Schedule in any given period, the city, county, or city and county that created the redevelopment agency may loan or grant funds to a successor agency for that period at the successor agency's request for the sole purpose of paying for approved items on the Last and Final Recognized Obligation Payment Schedule that would otherwise go unpaid Additionally, at the request of the department the county treasurer may loan any funds from the county treasury to the Redevelopment Property Tax Trust Fund of the successor agency for the purpose of paying an item approved on the Last and Final Recognized Obligation Payment Schedule in order to ensure prompt payments of successor agency debts A loan made under this section shall be repaid from the source of funds approved for payment of the underlying enforceable obligation in the Last and Final Recognized Obligation Payment Schedule once sufficient funds become available from that source Payment of the loan shall not increase the total amount of Redevelopment Property Tax Trust Fund received by the successor agency as approved on the Last and Final Recognized Obligation Payment Schedule (6) Notwithstanding paragraph (6) of subdivision (e) of Section 34176 and subparagraph (A) of paragraph (2) of subdivision (b) of Section 34191 4, commencing on the date the Last and Final Recognized Obligation Payment Schedule becomes effective (A) Loan or deferrals authorized for repayment pursuant to subparagraph (G) of paragraph (1) of subdivision (d) of Section 34171 or Section 34191 4 and listed and approved on the Last and Final Recognized Obligation Payment Schedule, shall be recalculated to accrue annual simple interest not to exceed 2 percent 42 Item 13. - 55 H B -180- (B) The maximum repayment amount of the total principal and interest on loans and deferrals authorized for repayment pursuant to subparagraph (G) of paragraph (1) of subdivision (d) of Section 34171 or Section 34191 4 and listed and approved in the Last and Final Recognized Obligation Payment Schedule shall be 15 percent of the moneys remaining in the Redevelopment Property Tax Trust Fund after the allocation of moneys in each six-month period pursuant to Section 34183 prior to the distributions under paragraph (4) of subdivision (a) of section 34183 (C) If the calculation performed pursuant to subparagraph (B) results in a lower repayment amount than would result from application of the calculation specified in subparagraph (A) of paragraph (3) of subdivision (b) of Section 34191 4, the successor agency may calculate its Last and Final Recognized Obligation Payment Schedule loan repayments using the latter calculation (7) Commencing on the effective date of the approved Last and Final Recognized Obligation Payment Schedule, the successor agency shall not prepare or transmit Recognized Obligation Payment Schedules pursuant to Section 34177 (8) Commencing on the effective date of the approved Last and Final Recognized Obligation Payment Schedule, oversight board resolutions shall not be submitted to the department pursuant to subdivision (h) of Section 34179 This paragraph shall not apply to oversight board resolutions necessary for refunding bonds pursuant to Section 34177 5, long range property management plans pursuant to Section 34191 5, amendments to the Last and Final Recognized Obligation Payment Schedule under paragraph (2) of subdivision (c) of this Section, and the final oversight board resolutions pursuant to Section 34187 (d) The county auditor-controller shall do the following (1) Review the Last and Final Recognized Obligation Payment Schedule and provide any objection to the inclusion of any items or amounts to the department (2) After the Last and Final Recognized Obligation Payment Schedule is approved by the department, the county auditor-controller shall continue to allocate moneys in the Redevelopment Property Tax Trust Fund pursuant to Section 34183, however, the allocation from the Redevelopment Property Tax Trust Funds in each six-month fiscal period, after deducting auditor-controller administrative costs, shall be according to the following order of priority (A) Allocations pursuant to paragraph (1) of subdivision (a) of Section 34183 (B) Debt service payments scheduled to be made for tax allocation bonds that are listed and approved in the Last and Final Recognized Obligation Payment Schedule (C) Payments scheduled to be made on revenue bonds that are listed and approved in the Last and Final Recognized Obligation Payment Schedule, but only to the extent the revenues pledged for them are insufficient to make the payments and only if the agency's tax increment revenues were also pledged for the repayment of bonds 43 HB -1 s1- Item 13. - 56 (D) Payments scheduled for debts and obligations listed and approved in the Last and Final Recognized Obligation Payment Schedule to be paid from the Redevelopment Property Tax Trust Fund pursuant to subparagraph (A) of paragraph (1) of subdivision (b) and subdivision (c) (E) Payments listed and approved pursuant to subparagraph (A) of paragraph (1) of subdivision (b) and subdivision (c) of this Section that were authorized but unfunded in prior periods (F) Repayment in the amount specified in paragraph (6) of subdivision (c) of loans and deferrals listed and approved on the Last and Final Recognized Obligation Payment Schedule pursuant to subparagraph (C) of paragraph (1) of subdivision (b) and subdivision (c) (G) Any moneys remaining in the Redevelopment Property Tax Trust Fund after the payments and transfers authorized by subparagraphs (A) to (F), inclusive, shall be distributed to taxing entities in accordance with Section 34188 (3) If the successor agency reports to the county auditor-controller that the total available amounts in the Redevelopment Property Tax Trust Fund will be insufficient to fund their current or future fiscal year obligations, and if the county auditor-controller concurs that there are insufficient funds to pay the required obligations, the county auditor-controller may distribute funds pursuant to subdivision (b) of Section 34183 (4) The county auditor-controller shall no longer distribute property tax to the Redevelopment Property Tax Trust Fund once the aggregate amount of property tax allocated to the successor agency equals the total outstanding obligation approved in the Last and Final Recognized Obligation Payment Schedule (e) Successor agencies with a Last and Final Recognized Payment Schedule approved by the DepaFtment of C-ngnoe department may amend or modify existing contracts, agreements, or other arrangements identified on the Last and Final Recognized Obligation Payment Schedule which the Plepaptmen+ of department has already determined to be enforceable obligations, provided (1) The outstanding payments owing from the successor agencv are not accelerated or increased in any way (2) Any amendment to extend terms shall not include an extension beyond the last scheduled Payment for the enforceable obligations listed and approved on the Last and Final Recognized Obligation Payment Schedule (3) Nothing in this subdivision shall be construed as authorizing successor agencies to create new or additional enforceable obligations or otherwise increase, directly or indirectly, the amount of Redevelopment Property Tax Trust Funds allocated to the successor agency by the county auditor-controller SECTION 22 Section 96 11 of the Revenue and Taxation Code is amended to read 96 11 Notwithstanding any other provision of this article, for purposes of property tax revenue allocations, the county auditor of a county for which a negative sum was calculated pursuant to subdivision (a) of former Section 97 75 as that section read on September 19, 1983, shall, in reducing the amount of property tax revenue that otherwise would be allocated to the county by an amount attributable to that negative sum, do all of the following 44 Item 13. - 57 HB -182- (a) For the 2011-12 fiscal year, apply a reduction amount that is equal to the lesser of either of the following (1) The reduction amount that was determined for the 2010-11 fiscal year (2) The reduction amount that is determined for the 2011-12 fiscal year (b) For the 2012-13 fiscal year, apply a reduction amount that is equal to the lesser of either of the following (1) The reduction amount that was determined in subdivision (a) for the 2011-12 fiscal year (2) The reduction amount that is determined for the 2012-13 fiscal year (c) For the 2013-14 fiscal year through the 2014-15 fiscal year, inclusive, +per, apply a reduction amount that is determined on the basis of the reduction amount applied for the immediately preceding fiscal year (d) Beginning July 1, 2015, and each fiscal year thereafter, the county auditor shall not apply a reduction amount SECTION 23 Section 96 24 of the Revenue and Taxation Code is added to read 96 24 Notwithstanding any other law, the property tax apportionment factors applied in allocating property tax revenues in the County of San Benito for each fiscal year through the 2000-01 fiscal year, inclusive, are deemed to be correct Notwithstandinq the audit time limits specified in paragraph (3) of subdivision (c) of Section 96 1, the county auditor shall make the allocation adjustments identified in the State Controller's audit of the County of San Benito for the 2001-02 fiscal year pursuant to the other provisions of paragraph (3) of subdivision (c) of Section 96 1 For the 2002-03 fiscal year and each fiscal year thereafter, property tax apportionment factors applied in allocating property tax revenues in the County of San Benito shall be determined on the basis of property tax apportionment factors for prior fiscal years that have been fully corrected and adjusted, pursuant to the review and recommendation of the Controller, as would be required in the absence of the preceding sentences SECTION 24 Section 98 of the Revenue and Taxation Code is amended to read 98 (a) In each county, other than the County of Ventura, having within its boundaries a qualifying city, the computations made pursuant to Section 96 1 or its predecessor section, for the 1989-90 fiscal year and each fiscal year thereafter, shall be modified as follows With respect to tax rate areas within the boundaries of a qualifying city, there shall be excluded from the aggregate amount of"property tax revenue allocated pursuant to this chapter to local agencies, other than for a qualifying city, in the prior fiscal year," an amount equal to the sum of the amounts calculated pursuant to the TEA formula (b) (1) Except as otherwise provided in this section, each qualifying city shall, for the 1989-90 fiscal year and each fiscal year thereafter, be allocated by the auditor an amount determined pursuant to the TEA formula 45 Hs -183- Item 13. - 58 (2) For each qualifying city, the auditor shall, for the 1989-90 fiscal year and each fiscal year thereafter, allocate the amount determined pursuant to the TEA formula to all tax rate areas within that city in proportion to each tax rate area's share of the total assessed value in the city for the applicable fiscal year, and the amount so determined shall be subtracted from the county's proportionate share of property tax revenue for that fiscal year within those tax rate areas (3) After making the allocations pursuant to paragraphs (1) and (2), but before making the calculations pursuant to Section 96 5 or its predecessor section, the auditor shall, for all tax rate areas in the qualifying city, calculate the proportionate share of property tax revenue allocated pursuant to this section and Section 96 1, or their predecessor sections, in the 1989-90 fiscal year and each fiscal year thereafter to each jurisdiction in the tax rate area (4) In lieu of making the allocations of annual tax increment pursuant to subdivision (e) of Section 96 5 or its predecessor section, the auditor shall, for the 1989-90 fiscal year and each fiscal year thereafter, allocate the amount of property tax revenue determined pursuant to subdivision (d) of Section 96 5 or its predecessor section to jurisdictions in the tax rate area using the proportionate shares derived pursuant to paragraph (3) (5) For purposes of the calculations made pursuant to Section 96 1 or its predecessor section, in the 1990-91 fiscal year and each fiscal year thereafter, the amounts that would have been allocated to qualifying cities pursuant to this subdivision shall be deemed to be the "amount of property tax revenue allocated in the prior fiscal year" (c) "TEA formula" means the Tax Equity Allocation formula, and shall be calculated by the auditor for each qualifying city as follows (1) For the 1988-89 fiscal year and each fiscal year thereafter, the auditor shall determine the total amount of property tax revenue to be allocated to all jurisdictions in all tax rate areas within the qualifying city, before the allocation and payment of funds in that fiscal year to a community redevelopment agency within the qualifying city, as provided in subdivision (b) of Section 33670 of the Health and Safety Code (2) The auditor shall determine the total amount of funds allocated in each fiscal year to a community redevelopment agency in accordance with subdivision (b) of Section 33670 of the Health and Safety Code (3) The auditor shall determine the total amount of funds paid in each fiscal year by a community redevelopment agency within the city to jurisdictions other than the city pursuant to subdivision (b) of Section 33401 and Section 33676 of the Health and Safety Code, and the cost to the redevelopment agency of any land or facilities transferred and any amounts paid to jurisdictions other than the city to assist in the construction or reconstruction of facilities pursuant to an agreement entered into under Section 33401 or 33445 5 of the Health and Safety Code (4) The auditor shall subtract the amount determined in paragraph (3) from the amount determined in paragraph (2) (5) The auditor shall subtract the amount determined in paragraph (4) from the amount determined in paragraph (1) 46 Item 13. - 59 HB -184- (6) The amount computed in paragraph (5) shall be multiplied by the following percentages in order to determine the TEA formula amount to be distributed to the qualifying city in each fiscal year (A) For the first fiscal year in which the qualifying city receives a distribution pursuant to this section, 1 percent of the amount determined in paragraph (5) (B) For the second fiscal year in which the qualifying city receives a distribution pursuant to this section, 2 percent of the amount determined in paragraph (5) (C) For the third fiscal year in which the qualifying city receives a distribution pursuant to this section, 3 percent of the amount determined in paragraph (5) (D) For the fourth fiscal year in which the qualifying city receives a distribution pursuant to this section, 4 percent of the amount determined in paragraph (5) (E) For the fifth fiscal year in which the qualifying city receives a distribution pursuant to this section, 5 percent of the amount determined in paragraph (5) (F) For the sixth fiscal year in which the qualifying city receives a distribution pursuant to this section, 6 percent of the amount determined in paragraph (5) (G) For the seventh fiscal year and each fiscal year thereafter in which the city receives a distribution pursuant to this section, 7 percent of the amount determined in paragraph (5) (d) "Qualifying city" means any city, except a qualifying city as defined in Section 98 1, that incorporated prior to June 5, 1987, and had an amount of property tax revenue allocated to it pursuant to subdivision (a) of Section 96 1 or its predecessor section in the 1988-89 fiscal year that is less than 7 percent of the amount of property tax revenue computed as follows (1) The auditor shall determine the total amount of property tax revenue allocated to the city in the 1988-89 fiscal year (2) The auditor shall subtract the amount in the 1988-89 fiscal year determined in paragraph (3) of subdivision (c) from the amount determined in paragraph (2) of subdivision (c) (3) The auditor shall subtract the amount determined in paragraph (2) from the amount of property tax revenue determined in paragraph (1) of subdivision (c) (4) The auditor shall divide the amount of property tax revenue determined in paragraph (1) of this subdivision by the amount of property tax revenue determined in paragraph (3) of this subdivision (5) If the quotient determined in paragraph (4) of this subdivision is less than 0 07, the city is a qualifying city If the quotient determined in that paragraph is equal to or greater than 0 07, the city is not a qualifying city (e) The auditor may assess each qualifying city its proportional share of the actual costs of making the calculations required by this section, and may deduct that assessment from the amount allocated pursuant to subdivision (b) For purposes of this subdivision, a qualifying city's 47 HB -1 ss- Item 13. - 60 proportional share of the auditor's actual costs shall not exceed the proportion it receives of the total amounts excluded in the county pursuant to subdivision (a) (f) Notwithstanding subdivision (b), in any fiscal year in which a qualifying city is to receive a distribution pursuant to this section, the auditor shall reduce the actual amount distributed to the qualifying city by the sum of the following (1) The amount of property tax revenue that was exchanged between the county and the qualifying city as a result of negotiation pursuant to Section 99 03 (2) (A) The amount of revenue not collected by the qualifying city in the first fiscal year following the city's reduction after January 1, 1988, of the tax rate or tax base of any locally imposed tax, except any tax that was imposed after January 1, 1988 In the case of a tax that existed before January 1, 1988, this clause shall apply only with respect to an amount attributable to a reduction of the rate or base to a level lower than the rate or base applicable on January 1, 1988 The amount so computed by the auditor shall constitute a reduction in the amount of property tax revenue distributed to the qualifying city pursuant to this section in each succeeding fiscal year That amount shall be aggregated with any additional amount computed pursuant to this clause as the result of the city's reduction in any subsequent year of the tax rate or tax base of the same or any other locally imposed general or special tax (B) No reduction may be made pursuant to subparagraph (A) in the case in which a local tax is reduced or eliminated as a result of either a court decision or the approval or rejection of a ballot measure by the voters (3) The amount of property tax revenue received pursuant to this chapter in excess of the amount allocated for the 1986-87 fiscal year by all special districts that are governed by the city council of the qualifying city or whose governing body is the same as the city council of the qualifying city with respect to all tax rate areas within the boundaries of the qualifying city Notwithstanding this paragraph (A) Commencing with the 1994-95 fiscal year, the auditor shall not reduce the amount distributed to a qualifying city under this section by reason of that city becoming the successor agency to a special district, that is dissolved, merged with that city, or becomes a subsidiary district of that city, on or after July 1, 1994 (B) Commencing with the 1997-98 fiscal year, the auditor shall not reduce the amount distributed to a qualifying city under this section by reason of that city withdrawing from a county free library system pursuant to Section 19116 of the Education Code (4) Any amount of property tax revenues that has been exchanged pursuant to Section 56842 of the Government Cnde Code, as that section read on January 1, 1998, between the City of Rancho Mirage and a community services district, the formation of which was initiated on or after March 6, 1997, pursuant to Chapter 4 (commencing with Section 56800) of Part 3 of Division 3 of Title 5 of the Government Code (g) Notwithstanding any other provision of this section, in no event may the auditor reduce the amount of ad valorem property tax revenue otherwise allocated to a qualifying city pursuant to this section on the basis of any additional ad valorem property tax revenues received by that city pursuant to a services for revenue agreement For purposes of this subdivision, a "services for revenue agreement" means any agreement between a qualifying city and the county in which it 48 Item 13. - 61 HB -186- is located, entered into by joint resolution of that city and that county, under which additional service responsibilities are exchanged in consideration for additional property tax revenues (h) In any fiscal year in which a qualifying city is to receive a distribution pursuant to this section, the auditor shall increase the actual amount distributed to the qualifying city by the amount of property tax revenue allocated to the qualifying city pursuant to Section 19116 of the Education Code (i) If the auditor determines that the amount to be distributed to a qualifying city pursuant to subdivision (b), as modified by subdivisions (e), (f), and (g) would result in a qualifying city having proceeds of taxes in excess of its appropriation limit, the auditor shall reduce the amount, on a dollar-for-dollar basis, by the amount that exceeds the city's appropriations limit 0) The amount not distributed to the tax rate areas of a qualifying city as a result of this section shall be distributed by the auditor to the county (k) Notwithstanding any other provision of this section, no qualifying city shall be distributed an amount pursuant to this section that is less than the amount the city would have been allocated without the application of the TEA formula (1) Notwithstanding any other provision of this section, the auditor shall not distribute any amount determined pursuant to this section to any qualifying city that has in the prior fiscal year used any revenues or issued bonds for the construction, acquisition, or development, of any facility which is defined in Section 103(b)(4), 103(b)(5), or 103(b)(6) of the Internal Revenue Code of 1954 prior to the enactment of the Tax Reform Act of 1986 (P L-99-514) and is no longer eligible for tax-exempt financing (m) (1) The amendments made to this section, , by the act that added this subdivision shall apply for the 2006-97 2015-16 fiscal year and each fiscal-year thereafter yeaF, that is equal to the PFGPGFt'GR that the tetal ameuRt of additional ad ValeFem pFopeFty tax lea- amount „ „ means aR amount equal to the differenne hOUP-en Oho fQ_lIO 1R9 hie ame,,ntc 49 HB -187- Item 13. - 62 added this subdIV161OF; had Rot beeR eRaGted Ede Gatlei;al Revenue A„nmeRtatlon Fund for the ann6nahlo ficnal yeaF SECTION 25 The Legislature hereby finds and declares all of the following 1) The Department of Finance has provided written confirmation to the Successor Agency to the Redevelopment Agency of the City and County of San Francisco that the following projects are finally and conclusively approved as enforceable obligations the Mission Bay North Owner Participation Agreement, the Mission Bay South Owner Participation Agreement, the Disposition and Development Agreement for Hunters Point Shipyard Phase 1, the Candlestick Point- Hunters Point Shipyard Phase 2 Disposition and Development Agreement, and the Transbay Implementation Agreement 2) The enforceable obligations described in Paragraph 1 require the Successor Agency to fund and develop affordable housing, including 1,200 units in Transbay, 1,445 units in Mission Bay North and South and 1,358 units in Candlestick Point/Hunters Point Shipyard Phases 1 and 2 In addition, the Successor Agency is required to fund and develop public infrastructure in the Transbay Redevelopment Proiect Area under the Transbay Implementation Agreement, which is necessary to improve the area surrounding the Transbay Transit Center 3) Due to insufficient property tax in the Redevelopment Property Tax Trust Fund, of the total number of affordable housing units that the Successor Agency is obligated to fund and develop under the enforceable obligations described in Paragraph 1, the Successor Agency has been able to finance the construction of only 642 units Additionally, the Successor Agency has not been able to fulfill its public infrastructure obligation under the Transbay Implementation Agreement 4) The Successor Agency can more expeditiously construct the 3,361 additional units of required affordable housing and the necessary infrastructure improvements if it is able to issue bonds or incur other indebtedness secured by property tax revenues available in the Redevelopment Property Tax Trust Fund 5) This legislation authorizes the Successor Agency to issue bonds or incur other indebtedness for the purpose of financing the construction of affordable housing and certain infrastructure required under the enforceable obligations described in Paragraph 1 Such bonds or other indebtedness may be secured by property tax revenues available in the Successor Agency's Redevelopment Property Tax Trust Fund from those project areas that generated tax increment for the Redevelopment Agency of the City and County of San Francisco upon its dissolution, provided, however, that the revenues are not otherwise obligated 6) Authorizing the Successor Agency to issue bonds or incur other indebtedness to complete the enforceable obligations specified in Paragraph 1 will financially benefit the affected taxing entities, insofar as it will ensure that funds that would otherwise flow to those entities as "residual" payments pursuant to paragraph (4) of subdivision (a) of Section 34183 will not instead be redirected to fund the enforceable obligations Instead, the enforceable obligations will be funded with the proceeds of the bonds or debt issuances 50 Item 13. - 63 HB -188- 7) San Francisco's housing situation is unique, in that median rents and sales prices are among the highest in the state San Francisco is currently facing an affordable housing crisis Because of the unique circumstances relating to affordable housing in the City and County of San Francisco in conjunction with the affordable housing and infrastructure required by the enforceable obligations described in paragraph 1, a special law is necessary and a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution Section 34177 7 is added to the Health and Safety Code to read (a) In addition to the powers granted to each successor agency, and notwithstanding anything in the act adding this part, including, but not limited to, Sections 34162 and 34189, the Successor Agency to the Redevelopment Agency of the City and County of San Francisco shall have the authority, rights, and powers of the Redevelopment Agency to which it succeeded solely for the purpose of issuing bonds or incurring other indebtedness to finance (1) the affordable housing required by the Mission Bay North Owner Participation Agreement, the Mission Bay South Owner Participation Agreement, the Disposition and Development Agreement for Hunters Point Shipyard Phase 1, the Candlestick Point-Hunters Point Shipyard Phase 2 Disposition and Development Agreement, and the Transbav Implementation Agreement, and (2) the infrastructure required by the Transbav Implementation Agreement The Successor Agency to the Redevelopment Agency of the City and County of San Francisco may pledge to the bonds or other indebtedness the property tax revenues available in the Successor Agency's Redevelopment Property Tax Trust Fund that are not otherwise obligated (b) Bonds issued pursuant to this section may be sold pursuant to either a negotiated or a competitive sale The bonds issued or other indebtedness obligations incurred pursuant to this section may be issued or incurred on a panty basis with outstanding bonds or other indebtedness obligations of the Successor Agency to the Redevelopment Agency of the City and County of San Francisco and may pledge the revenues pledged to those outstanding bonds or other indebtedness obligations to the issuance of bonds or other obligations pursuant to this section The pledge, when made in connection with the issuance of bonds or other indebtedness obligations under this section, shall have the same lien priority as the pledge of outstanding bonds or other indebtedness obligations, and shall be valid, binding, and enforceable in accordance with its terms (c) (1) Prior to issuing any bonds or incurring other indebtedness pursuant to this section, the Successor Agency to the Redevelopment Agency of the City and County of San Francisco may subordinate to the bonds or other indebtedness the amount required to be paid to an affected taxing entity pursuant to paragraph (1) of subdivision (a) of Section 34183, provided that the affected taxing entity has approved the subordinations pursuant to this subdivision (2) At the time the agency requests an affected taxing entity to subordinate the amount to be paid to it, the agency shall provide the affected taxing entity with substantial evidence that sufficient funds will be available to pay both the debt service on the bonds or other indebtedness and the payments required by paragraph (1) of subdivision (a) of Section 34183, when due (3)Within 45 days after receipt of the agency's request, the affected taxing entity shall approve or disapprove the request for subordination An affected taxing entity may disapprove a request for subordination only if it finds, based upon substantial evidence, that the successor agency will not be able to pay the debt service payments and the amount required to be paid to the affected 51 HB -189- Item 13. - 64 taxing entity If the affected taxing entity does not act within 45 days after receipt of the agency's request, the request to subordinate shall be deemed approved and shall be final and conclusive (d) An action may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure to determine the validity of bonds or other obligations authorized by this section, the pledge of revenues to those bonds or other obligations authorized by this section, the legality and validity of all proceedings theretofore taken and, as provided in the resolution of the legislative body of the Successor Agency to the Redevelopment Agency of the City and County of San Francisco authorizing the bonds or other indebtedness obligations authorized by this section, proposed to be taken for the authorization, execution, issuance, sale, and delivery of the bonds or other obligations authorized by this section, and for the payment of debt service on the bonds or the payment of amounts under other obligations authorized by this section Subdivision (c) of Section 33501 shall not apply to any such action The department shall be notified of the filing of any action as an affected party (e) Notwithstanding any other law including, but not limited to, Section 33501, an action to challenge the issuance of bonds or the incurrence of indebtedness by the Successor Agency to the Redevelopment Agency of the City and County of San Francisco shall be brought within 30 days after the date on which the oversight board approves the resolution of the agency approving the issuance of bonds or the incurrence of indebtedness under this section (f) The actions authorized in this section shall be subject to the approval of the oversight board, as provided in Section 34180 Additionally, the oversight board may direct the Successor Agency to the Redevelopment Agency of the City and County of San Francisco to commence any of the transactions described in subdivision (a) so long as the agency is able to recover its related costs in connection with the transaction After the agency, with approval of the oversight board, issues any bonds or incurs any indebtedness pursuant to subdivision (a), the oversight board shall not unilaterally approve any amendments to or early termination of the bonds or indebtedness If, under the authority granted to it by subdivision (h) of Section 34179, the department either reviews and approves or fails to request review within five business days of an oversight board approval of an action authorized by this section, the scheduled payments on the bonds or other indebtedness shall be listed in the Recognized Obligation Payment Schedule and shall not be subject to further review and approval by the department or the Controller The department may extend its review time to 60 days for actions authorized in this section and may seek the assistance of the Treasurer in evaluating proposed actions under this section (g) Any bonds or other indebtedness authorized by this section shall be considered indebtedness incurred by the dissolved redevelopment agency, with the same legal effect as if the bonds or other indebtedness had been issued, incurred, or entered into prior to June 28, 2011, in full conformity with the applicable provisions of the Community Redevelopment Law that existed prior to that date, shall be included in the Successor Agency to the Redevelopment Agency of the City and County of San Francisco's Recognized Obligation Payment Schedule, and shall be secured by a pledge of, and lien on, and shall be repaid from moneys deposited from time to time in the Redevelopment Property Tax Trust Fund established pursuant to subdivision (c) of Section 34172, as provided in paragraph (2) of subdivision (a) of Section 34183 Property tax revenues pledged to any bonds or other indebtedness obligations authorized by this section are taxes allocated to the successor agency pursuant to subdivision (b) of Section 33670 and Section 16 of Article XVI of the California Constitution (h) The Successor Agency to the Redevelopment Agency of the City and County of San Francisco shall make diligent efforts to ensure that the lowest long-term cost financing is 52 Item 13. - 65 HB -1 90- obtained The financing shall not provide for any bullets or spikes and shall not use variable rates The agency shall make use of an independent financial advisor in developing financing proposals and shall make the work products of the financial advisor available to the department at its request SECTION 26 (a) (1) For the 2015-16 fiscal year, the sum of twenty three million, seven hundred and fifty thousand dollars ($23,750,000) is hereby appropriated from the General Fund to the Department of Forestry and Fire Protection (Department) Provision of these funds to the Department shall be contingent on the County of Riverside agreeing to forgive amounts owed to it by the Cities of Jurupa Valley, Menifee, and Wildomar for services rendered to the cities between the respective dates of their incorporation, and June 30, 2015 The County's agreement to forgive these funds shall be forwarded to the Chairperson of the Joint Legislative Budget Committee and to the Director of the Department of Finance no later than August 1, 2015 The County's agreement shall be accompanied by a summary of the actual amount owed to the County by each of the cities for the period between the date of their incorporation and June 30, 2015 The agreement reflects a valid public purpose which benefits the cities, the County and its citizens (2) Within 30 days of receiving notification from the County as specified in paragraph (1), the Director of Finance shall do the following (A) Verify the accuracy of the County's summary of the amounts owed to it by the three cities (B) Direct the Controller to transmit to the Department, from the appropriation provided in paragraph (1), an amount that corresponds to the amount that the Director of Finance has verified pursuant to subparagraph (A) (C) Initiate steps to reduce the amount of reimbursements provided to the Department in the 2015 Budget Act by an amount that corresponds to the amount provided to the Department pursuant to subparagraph (B) SECTION 27 (a) (1) For the 2015-16 fiscal year, the sum of five million, eight hundred and twenty five thousand dollars ($5,825,000) is hereby appropriated from the General Fund to reimburse the Counties of Amador, San Mateo, and Alpine, and the cities located therein, for shortfalls incurred in the 2009-10, 2011-12, and 2013-14 fiscal years related to the Sales and Use Tax Countywide Adiustment Amount authorized by Section 97 68 of the Revenue and Taxation Code, and the Vehicle License Fee Adiustment Amount authorized by Section 97 70 of the Revenue and Taxation Code (2) No later than October 1, 2015, each county shall submit to the Department of Finance a countywide claim detailing the shortfall incurred in the 2009-10, 2011-12, and 2013-14 fiscal years, as appropriate, by the county, and by each city located therein, in relation to each of the specified Revenue and Taxation Code sections The Department of Finance shall review the claims for accuracy, and upon determining the claims are accurate and complete, shall forward them to the Controller for payment 53 HB -1 91- Item 13. - 66 (3) The amount provided to Amador County and the cities located therein shall not exceed two million and eighty nine thousand dollars ($2,089,000), the amount provided to San Mateo, and the cities located therein, shall not exceed three million, five hundred and thirty eight thousand dollars ($3,538,000), and the amount provided to Alpine County, and the cities located therein, shall not exceed one hundred and ninety eight thousand dollars ($198,000) If this amount is insufficient to fully backfill the shortfalls incurred by the eligible claimants, the Controller shall prorate the amount provided to each claimant pursuant to paragraph (2) SECTION 28 This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately c 54 Item 13. - 67 HB -192- ATTACHMENT #4 Page 1 of 3 League of California Cities (May 12eVise) Key Issues with DOF RDA Dissolution Trailer Bill' The League of California Cities is Opposed, Unless Amended to the following provisions in the proposed Trailer Bill due to their many harmful impacts on existing cities. These provisions reverse previous incentives and due process provisions approved by the Administration and Legislature in AB 1484 of 2012 1) Reimbursement Agreements: Undoes incentives previously offered, under AB 1484 of 2012,to successor agencies to make three required payments to become eligible for a DOF "finding of completion " This proposal retroactively prohibits the reinstatement of reimbursement agreements between a city and a redevelopment agency for public improvements constructed by a third party (Subparagraph (2),page 37) 2) Interest Rates on Loans: Retroactively undoes the final March 16, 2015, ruling in Glendale v DOF over the appropriate method of calculating interest rates on reinstated loans The Sacramento Superior Court recently ruled the LAIF (Local Agency Investment Fund) rate, applies to the accumulated balance on a loan and is calculated based on the rates in effect over the life of the loan since origination The Court rejected DOF's contention that the rate was the current rate on a fixed date The language (Subparagraph(3), on page 37)deletes the pertinent language relied on by the Court and substitutes a rate "up to"one percent This change reverses the previous language the Administration and Legislature put into place, and would mean a major loss of funds needed by local agencies to provide public safety and other vital services Affordable housing funding would also suffer, because 20%of local repayments must be set-aside for affordable housing 3) Erosion of Due Process Review of DOF Decisions: The May Revise provision continues to undercut the due process provisions agreed to by the Administration and Legislature in AB 1484, to enable a successor agency to contest a DOF decision in Sacramento Superior Court There is a fundamental inequity with repealing the construct of existing law in this area Many successor agencies have viewed the DOF process as highly subjective, leaving the only due process recourse to the Courts This proposal fundamentally erodes the ability of a successor agency to protect its interests in a bona fide dispute with DOF,while strengthening the existing state's leverage and position • Litigation Expenses Existing law provides that successor agencies could retain legal counsel to represent it in litigation with the costs covered as enforceable obligations This proposal restricts any litigation expenses to a limited administrative cost allowance (Page 2, Paragraph (5)), which is even further 1 Comments based upon the PDF released by DOF as part of the May Revise on 05/14/15 version HB -193- Item 13. - 68 Page 2 of 3 constrained by other areas of this proposalz The May Revise alters this construct slightly to permit a sponsoring city of county to loan funds to a successor agency for litigation with costs recoverable upon the local agency prevailing • Exempting DOF from Administrative Procedures Act DOF has been granted broad authority to make quasi-Judicial determinations without any formal administrative review process This authority is compounded by the proposal (Page 1, Sec 34170 1)to exempt DOF from the Administrative Procedures Act Three Issues the League Raised with January Proposal, Potentially Addressed by Amendments: The May Revise makes several adjustments to the January proposal, affecting issues raised by the League 1) Removing Proposal Seeking to Undo Re-entered Agreements: The League appreciates the removal of prior language seeking to overturn Emeryville v Cohen and retroactively invalidate dozens of agreements validly entered into by cities and successor agencies around the state under AB 26X of 2011 DOF has also sent a letter to the affected agencies notifying them they will no longer be pursuing litigation on this issue Several amendments are necessary to the bill to clarify the statute in this area due to the overlap of several sections,which the League will be offering 2) Authority for cities to make loans to successor agencies approved by oversight boards for "project-related expenses." The May Revise restored the reference to "project related expenses" (Page 3,sub (h)) The League appreciates this change and will suggest several minor, clarifying amendments 3) Work associated with"winding down"a former redevelopment agency. The May Revise makes a slight change to the January proposal which indicates that there may be the potential for clarifying language that work associated with basic maintenance and repairs of buildings continues to be a supported activity The League appreciates this change and will suggest clarifying amendments Other RDA-Related Issues: 1) Extension of RDA Time Limits to Repay Bond Debts: The League appreciates this helpful provision One necessary clarifying amendment is that loans repaid after a finding of completion under Sec 341914 are also covered 2) Staff Neutrality: Countywide Oversight Board. It is important that whatever entity is tasked with staffing the functions of countywide oversight boards,that they maintain a fiduciary duty to all members and agencies represented on the oversight board and remain neutral The League will provide language on this z The amount available for the successor agency's administrative cost allowance is further restricted by language(Subparagraph (3),Page 1)which requires the amounts of loans repaid to a city as well as the amount of a prior administrative cost allowance to be deducted before applying the 3%factor Subparagraph(4)on Pagel further restricts possible funding by imposing a maximum 50%cap All of these restrictions ignore the existing authority of an oversight board to review a successor agency's administrative cost allowance and reduce it where appropriate This restrictive language should also be contrasted with (Subdivision(j)on Page 26)which authorizes a county auditor-controller or other entity staffing an oversight board to recover "all costs incurred" Item 13. - 69 FIB -194- Page 3 of 3 3) Installment Plans For Agencies Without an FOC: The May Revise proposes a process for successor agencies which have not received a finding of completion (presumably because there are issues in dispute)to receive a finding of completion if they enter into an installment payment plan,which can later be altered to reflect a final Court decision The League will suggest several clarifying amendments including that the installment plan be "reasonable" and reflect the likelihood of available funding 4) Pension Special Override Rates: The League has shared this language with the affected cities seeking feedback on its impacts The Language is confusing in its drafting, one reading of the language could be interpreted to negatively impact the City of San Jose in pending litigation (page 31&32) This language bears further review by affected entities 5) 2011 Bond Issues: The League appreciates that the Administration made a proposal in the May Revise on this outstanding RDA dissolution issue Affected agencies are reviewing (Page 38& 39) 6) Public Parking Lots: The January budget proposal added parking lots to the list of facilities deemed to be for a governmental purpose, provided they do not generate revenue in excess of reasonable maintenance costs (Subparagraph (2), page 30) Agencies with previously approved plans may amend their plans to incorporate these parking lots (Subdivision (b), Page 36) The League proposes that the word "lots" be replaced with "facilities"to ensure that multi-story structures may qualify Also proposed is that reasonable 'operational costs"to be recognized Other Issues Added at May Revise: The following proposals are helpful to the affected agencies 1) San Francisco Affordable Housing: The May Revise adds a provision that will lead to the construction of several thousand affordable housing units in this extremely high-cost city 2) Recently Incorporated Cities: $23 75 million is offered as a one-time payment to repay debt owed to the County of Riverside by three out of the four recently incorporated cities which have been struggling since the 2011 VLF takeaway 3) Negative ERAF: $5 8 million would be allocated to local agencies in three counties where there is insufficient ERAF funds to make offsetting payments for the Triple-Flip and VLF- Property Tax Swap 4) Santa Clara County Cities Tax Equity. Several cities in Santa Clara County will receive relief from an ERAF calculation issue for five years,valued at$2 million annually 5) San Benito County: Forgives$3 4 million in debts owed by local agencies in the county due to a previous calculation error that caused underpayments by those agencies to ERAF 6) Negative Bailout Counties: Provides$6 9 million in budget relief for four"negative bailout counties" HB -1 95- Item 13. - 70 ATTACHMENT #5 STATE CAPITOL COMMITTEES i SACRAMENTO CA95814 BUDGET&FISCAL TEL(916)651-434 � _`� � � � REVIEW FAX FAX(916)651 49 &34 x` GOVERNANCE FINANCE VICE CHAIR DISTRICT OFFICE SENATOR HEALTH TEL(714)558-4400 VICE CHAIR FAX(7t 4)55B-41 t 1 JANET NGUYEN THIRTY-FOURTH SENATE DISTRICT HUMAN SERVICES VETERANS AFFAIRS v 1 pR 2 8 2015 April 21, 2015 f(ce of the Cr tY Manager The Honorable 3illHatdy Mayor City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Deai Mayor Hardy: As Senator of California's 34th Senate District,I am writing to respectfully request that the City of Huntington Beach support my Senate Constitutional Amendment 2 (SCA 2) to prohibit banning the U.S. flag on state funded college campuses in California. Last month the University of California,Irvine's Legislative Student Council passed a resolution that banned the display of the American flag, citing potential negative interpretations of the flag While the Executive Cabinet of the Assocr eSdtudents of UC Irvine ultimately vetoed the flag ban, this incident has drawn attention to a potential problem that could occur at another campus in the future.To ensure that this does not happen,I authored SCA 2 which prohibits the ban-of the U S.flag on any state funded campus of higher education. A constitutional amendment is needed because the UC system rs a consti tionally independent system and can ignore statutory direction from the legislature For more than 200 years, millions of brave service men and women have made great sacrifices so that we can fly the American flag with dignity and pride. Today,thousands more have left families and jobs behind to defend the principles of freedom and democracy. Our Veterans deserve for us to make every effort to ensure that the American flag is proudly displayed at public universities and colleges throughout California, Consequently,I ask that the City of Huntington Beach join me in supporting our Veterans by adopting a resolution in support of SCA 2. Item 13. - 71 `1 VALLEY,GARDEN GROVE,LOSALAMITOS.SANT HB -1 96-BEACH,WESTMINSTER,THE INCORPORATED COMMUNITIES OF MIDNYAY CITY AND ROSSMOOR,AND PORTIONS- - - ,HUNTINGTON BEACH,LONG BEACH AND ORANGE Last year, I asked you to join me in honoring our Veterans by adopting a designation as a Purple Heart City and today, thanks to your support; all cities in Orange County carry this honorable designation. Ensuring that the American flag is not prohibited on any campus in the State of California falls in line with our efforts to honor our Veterans and I hope to count on your support for SCA 2. Thank you for your consideration and attention to this matter If you have any questions, please feel free to contact Elizabeth Watson at (916) 65 1-403 4 or Diana Moreno at(714) 558-4400 Sincerely, CVNGU�YEI� State Senator,Thirty-Fourth District California State Legislature CC- Honorable City Council,Members Fred Wilson, City Manager HB -1 97- Item 13. - 72 ATTACHMEfVT ffo RESOLUTION NO 2015-27 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH IN SUPPORT OF SENATE CONSTITUTIONAL AMENDMENT 2 WHEREAS, the City of Huntington Beach proudly displays and supports the honorable flag of the United States of America, and In an effort to ensure that the flag of the United States is proudly displayed at campuses throughout California, State Senator Janet Nguyen introduced Senate Constitutional Amendment 2; and Senate Constitutional Amendment 2 amends the Constitution of the State of California to prohibit State funded Post Secondary Educational Institutions from banning the display of the American flag, NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows- 1 The City Council of the City of Huntington Beach supports Senate Constitutional Amendment 2 and urges the California State Legislatuie to pass this legislation in protection of the American flag. 2 The Clerk of the City of Huntington Beach is directed to send this resolution to the Honorable Members of the California State Senate and the California State Assembly representing the City of Huntington Beach PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 15 t h day of June , 2015 Ma REVIEW APPROVED APPROVED O FO i y Manager City Attorney A ED AN APP OVED Assistant City Managei 15-4764/121712 doe Res. No. 2015-27 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven, that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on June 15, 2015 by the following vote AYES: Posey, O'Connell, Katapodis, Hardy, Sullivan, Peterson NOES: None ABSENT: Delgleize ABSTAIN: None e City Cork and ex-officio erk of the City Council of the City of Huntington Beach, California