SB 8

Bill Subjects

Abstract

Existing law requires a redevelopment agency, for the 2009–10 and 2010–11 fiscal years, to deposit revenue payments in its county's Supplemental Educational Revenue Augmentation Fund for allocation to school entities. Existing law authorizes an agency, in order to make these payments, to borrow the amount required to be allocated to that agency's Low and Moderate Income Housing Fund and requires the agency to repay the borrowed funds by a specified date. This bill would authorize an agency to extend the date of repayment for the borrowed funds by 5 years. Existing law suspends various activities of redevelopment agencies and prohibits the agencies from incurring indebtedness for a specified period. Existing law also dissolves redevelopment agencies and community development agencies, as of October 1, 2011, and designates successor agencies, as defined. Existing law exempts from dissolution a redevelopment agency of a community where the city or county that created the agency participates in a voluntary alternative redevelopment program, as prescribed. Existing law requires a participating city or county to make specified remittances for deposit in the Special District Allocation Fund and authorizes that city or county to enter into an agreement with an agency whereby the agency would transfer a portion of its tax increment to the city or county for the purpose of financing specified activities. This bill would make technical, clarifying, and conforming changes to these provisions. The bill would modify provisions relating to agency indebtedness and the transfer of housing funds and responsibilities associated with dissolved redevelopment agencies. The bill would also provide, for the 2012–13 and 2013–14 fiscal years only, that an agreement to transfer tax increment between a city or county and an agency may include an additional amount to reimburse the city for a specified shortfall. The bill would make certain provisions operative only if a specified provision of law is operative. The bill would appropriate $1,000 from the General Fund to the Department of Finance for the costs to comply with the bill. The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. Governor Schwarzenegger issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on December 6, 2010. Governor Brown issued a proclamation on January 20, 2011, declaring and reaffirming that a fiscal emergency exists and stating that his proclamation supersedes the earlier proclamation for purposes of that constitutional provision. This bill would state that it addresses the fiscal emergency declared and reaffirmed by the Governor by proclamation issued on January 20, 2011, pursuant to the California Constitution. This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.