SB 1129

Bill Subjects

Abstract

(1) Existing law dissolved redevelopment agencies and community development agencies as of February 1, 2012, and provides for the designation of successor agencies to wind down the affairs of the dissolved redevelopment agencies, subject to review by oversight boards, and to, among other things, make payments due for enforceable obligations and to perform obligations required pursuant to any enforceable obligation. Existing law requires the Department of Finance to issue a finding of completion to a successor agency upon confirmation by the county auditor-controller that specified payments have been fully made by the successor agency. Existing law prohibits a successor agency from entering into contracts with, incurring obligations or making commitments to, any entity, as specified; or from amending or modifying existing agreements, obligations, or commitments with any entity, for any purpose. Existing law defines "enforceable obligation" for these purposes to generally exclude any agreements, contracts, or arrangements between the city, county, or city and county that created the redevelopment agency and the former redevelopment agency. This bill would authorize a successor agency, if the successor agency has received a finding of completion, to enter into, or amend existing, contracts and agreements, or otherwise administer projects in connection with enforceable obligations, if the contract, agreement, or project will not commit new property tax funds or otherwise adversely affect the flow of specified tax revenues or payments to the taxing agencies, as specified. The bill would specifically include within the definition of "enforceable obligation" an agreement entered into by the redevelopment agency prior to June 30, 2011, if the agreement relates to state highway infrastructure improvements to which the redevelopment agency committed funds pursuant to specified law. (2) Existing law requires that loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency be deemed enforceable obligations if the oversight board makes a specific finding. Existing law requires that, if the loan is an enforceable obligation, the accumulated interest on the remaining principal amount of the loan be recalculated from origination at that interest rate earned by funds deposited into the Local Agency Investment Fund and requires the loan to be repaid in accordance with a defined schedule at an interest rate not to exceed that interest rate. This bill would revise those provisions to provide that any accumulated interest on the remaining principal balance of the loan be recalculated from origination using the interest rate earned by funds deposited into the Local Agency Investment Fund in effect on the date of loan origination, and as adjusted quarterly thereafter and that the remaining balance of the loan and the accumulated interest be repaid in accordance with a defined schedule at an interest rate not to exceed that interest rate as the rate is adjusted on a quarterly basis. This bill would state the Legislature's intent that these revisions be clarifying. (3) Existing law requires a successor agency to prepare a recognized obligation payment schedule, which sets forth the minimum payment amounts and due dates of payments required by enforceable obligations for each 6-month fiscal period, that is required to be submitted to, and approved by, the oversight board, and submitted to other entities, including the Department of Finance. Existing law requires the Department of Finance to 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. This bill would require the rejection of an enforceable obligation from a recognized obligation payment schedule for a successor agency that has received a finding of completion from the department to be submitted to the oversight board for review and approval, and would provide that the determination of the oversight board is final and conclusive without further review by the department. (4) Existing law provides that, if an enforceable obligation provides for an irrevocable commitment of property tax revenue and the allocation of those revenues is expected to occur over time, the successor agency may petition the Department of Finance to provide written confirmation that its determination of the 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 enforceable obligation. This bill would require the Department of Finance to provide that written confirmation within 45 days. (5) Existing law requires a city, county, or city and county that wishes to retain any properties or other assets for future redevelopment activities, funded from its own funds and under its own auspices, to reach a compensation agreement with the other taxing entities to provide payments to them in proportion to their shares of the base property tax for the value of the property retained, as specified. This bill would specify that these provisions do not apply to the disposition of properties pursuant to a long-range property management plan. (6) Existing law requires the disposition of assets and properties of the former redevelopment agency as directed by the oversight board, as specified, and suspends these requirements until the Department of Finance has approved a long-range property management plan, as specified. Upon approval of a long-range property management plan, the plan governs and supersedes, all other provisions relating to the disposition and use of the real property assets of the former redevelopment agency. Existing law requires the property of a former redevelopment agency to be disposed of according to law if the department has not approved a long-range property management plan by January 1, 2016. This bill would prohibit the department from requiring compensation agreements as part of the approval of a long-range property management plan and would specify the criteria the department may consider in approving a long-range property management plan. The bill would require the department to approve long-range property management plans as expeditiously as possible. This bill would also provide that actions relating to the disposition of property after approval of a long-range property management plan do not require review by the department. (7) Existing law requires the Controller to review the activities of redevelopment agencies in the state to determine whether an asset transfer has occurred after January 1, 2011, between the city or county, or city and county that created a redevelopment agency or any other public agency, and the redevelopment agency. This bill would require the review to be completed no later than January 1, 2016. (8) Existing law prohibits an agency or community officer or employee who is required to participate in the formulation of, or to approve plans or policies for, the redevelopment of a project area from acquiring any interest in any property included within a project area within the community. This bill would provide that an agency or community officer or employee is not prohibited from acquiring an interest in property within a former redevelopment project area of a dissolved redevelopment agency, as specified. (9) Existing law requires each successor agency to have an oversight board composed of 7 members and requires each member to be appointed by a specified authority. This bill would allow each appointing authority to appoint an alternate representative to serve on the oversight board as may be necessary. This bill would provide that the alternative representative has the same participatory and voting rights as all other attending members of the oversight board, and would require the successor agency to promptly notify the Department of Finance regarding the appointment of any alternate representative. (10) This bill would incorporate additional changes to Section 34180 of the Health and Safety Code proposed by SB 1404 that would become operative only if this bill and SB 1404 are both chaptered and this bill is chaptered last. (11) This bill would incorporate additional changes to Section 34191.4 of the Health and Safety Code proposed by AB 2493 that would become operative only if this bill and AB 2493 are both chaptered and this bill is chaptered last.