Bill Text: CA AB2280 | 2013-2014 | Regular Session | Enrolled
Bill Title: Community Revitalization and Investment Authorities.
Spectrum: Partisan Bill (Democrat 13-0)
Status: (Vetoed) 2014-09-29 - Vetoed by Governor. [AB2280 Detail]
Download: California-2013-AB2280-Enrolled.html
BILL NUMBER: AB 2280 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 22, 2014
PASSED THE ASSEMBLY AUGUST 27, 2014
AMENDED IN SENATE AUGUST 18, 2014
AMENDED IN ASSEMBLY APRIL 7, 2014
INTRODUCED BY Assembly Member Alejo
(Principal coauthors: Assembly Members Atkins and Mullin)
(Coauthors: Assembly Members Brown, Ian Calderon, Dickinson,
Holden, Perea, V. Manuel Pérez, Stone, Ting, and Williams)
(Coauthor: Senator Correa)
FEBRUARY 21, 2014
An act to add Part 1.87 (commencing with Section 34191.50) to
Division 24 of the Health and Safety Code, relating to economic
development.
LEGISLATIVE COUNSEL'S DIGEST
AB 2280, Alejo. Community Revitalization and Investment
Authorities.
The Community Redevelopment Law authorizes the establishment of
redevelopment agencies in communities to address the effects of
blight, as defined by means of redevelopment projects financed by the
issuance of bonds serviced by tax increment revenues derived from
the project area. 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 agencies and to fulfill the enforceable obligations of
those agencies. Existing law also provides for various economic
development programs that foster community sustainability and
community and economic development initiatives throughout the state.
This bill would authorize certain local agencies to form a
community revitalization authority (authority) within a community
revitalization and investment area, as defined, to carry out
provisions of the Community Redevelopment Law in that area for
purposes related to, among other things, infrastructure, affordable
housing, and economic revitalization. The bill would provide for the
financing of these activities by, among other things, the issuance of
bonds serviced by tax increment revenues, and would require the
authority to adopt a community revitalization plan for the community
revitalization and investment area that includes elements describing
and governing revitalization activities. The bill would also provide
for periodic audits of the authority with respect to affordable
housing, conducted as provided by the Controller, and for annual
public reports by the authority as well as periodic proceedings for
the consideration of public protests.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) Certain areas of the state are generally
characterized by buildings in which it is unsafe or unhealthy for
persons to live or work, conditions that make the viable use of
buildings or lots difficult, high business vacancies and lack of
employment opportunities, and inadequate public improvements, water,
or sewer utilities. It is the intent of the Legislature to create a
planning and financing tool to support the revitalization of these
communities.
(b) It is in the interest of the state to support the economic
revitalization of these communities through tax increment financing.
(c) It is the intent of the Legislature to authorize the creation
of Community Revitalization and Investment Authorities to invest tax
increment revenue to relieve conditions of unemployment, reduce high
crime rates, repair deteriorated or inadequate infrastructure,
promote affordable housing, and improve conditions leading to
increased employment opportunities.
SEC. 2. Part 1.87 (commencing with Section 34191.50) is added to
Division 24 of the Health and Safety Code, to read:
PART 1.87. Community Revitalization and Investment Authorities
34191.50. As used in this part, the following terms have the
following meanings:
(a) "Authority" means the Community Revitalization and Investment
Authority created pursuant to this part.
(b) "Plan" means a community revitalization plan.
34191.51. (a) A community revitalization and investment authority
is a public body, corporate and politic, with jurisdiction to carry
out a community revitalization plan within a community revitalization
and investment area. The authority shall be deemed to be an "agency"
as defined in Section 33003 for purposes of receiving tax increment
revenues pursuant to Article XVI of Section 16 of the California
Constitution. The authority shall have only those powers and duties
specifically set forth in Section 34191.53.
(b) (1) An authority may be created in one of the following ways:
(A) A city, county, or city and county may adopt a resolution
creating an authority. The composition of the governing board shall
be comprised as set forth in subdivision (c).
(B) A city, county, city and county, and special district, as
special district is defined in subdivision (m) of Section 95 of the
Revenue and Taxation Code, or any combination thereof, may create an
authority by entering into a joint powers agreement pursuant to
Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of
the Government Code.
(2) (A) A school entity, as defined in subdivision (f) of Section
95 of the Revenue and Taxation Code, may not participate in an
authority created pursuant to this part.
(B) A successor agency, as defined in subdivision (j) of Section
34171, may not participate in an authority created pursuant to this
part, and an entity created pursuant to this part shall not receive
any portion of the property tax revenues or other moneys distributed
pursuant to Section 34188.
(3) An authority formed by a city or county that created a
redevelopment agency that was dissolved pursuant to Part 1.85
(commencing with Section 34170) of Division 24 shall not become
effective until the successor agency or designated local authority
for the former redevelopment agency has adopted findings of fact
stating all of the following:
(A) The agency has received a finding of completion from the
Department of Finance pursuant to Section 34179.7.
(B) No former redevelopment agency assets which are the subject of
litigation against the state, where the city or county or its
successor agency or designated local authority are a named plaintiff,
have been or will be used to benefit any efforts of an authority
formed under this part unless the litigation, has been resolved by
entry of a final judgment by any court of competent jurisdiction and
any appeals have been exhausted.
(C) The agency has complied with all orders of the State
Controller pursuant to Section 34167.5.
(c) (1) The governing board of an authority created pursuant to
subparagraph (A) of paragraph (1) of subdivision (b) shall be
appointed by the legislative body of the city, county, or city and
county that created the authority and shall include three members of
the legislative body of the city, county, or city and county that
created the authority and two public members. The appointment of the
two public members shall be subject to the provisions of Section
54974 of the Government Code. The two public members shall live or
work within the community revitalization and investment area.
(2) The governing body of the authority created pursuant to
subparagraph (B) of paragraph (1) of subdivision (b) shall be
comprised of a majority of members from the legislative bodies of the
public agencies that created the authority and a minimum of two
public members who live or work within the community revitalization
and investment area. The majority of the board shall appoint the
public members to the governing body. The appointment of the public
members shall be subject to the provisions of Section 54974 of the
Government Code.
(d) An authority may carry out a community revitalization plan
within a community revitalization and investment area. Not less than
80 percent of the land calculated by census tracts, or census block
groups, as defined by the United States Census Bureau, within the
area shall be characterized by both of the following conditions:
(1) An annual median household income that is less than 80 percent
of the statewide annual median income.
(2) Three of the following four conditions:
(A) Nonseasonal unemployment that is at least 3 percent higher
than statewide median unemployment, as defined by the report on labor
market information published by the Employment Development
Department in January of the year in which the community
revitalization plan is prepared.
(B) Crime rates that are 5 percent higher than the statewide
median crime rate, as defined by the most recent annual report of the
Criminal Justice Statistics Center within the Department of Justice,
when data is available on the California Attorney General's Internet
Web site.
(C) Deteriorated or inadequate infrastructure such as streets,
sidewalks, water supply, sewer treatment or processing, and parks.
(D) Deteriorated commercial or residential structures.
(e) As an alternative to subdivision (d), an authority may also
carry out a community revitalization plan within a community
revitalization and investment area established within a former
military base that is principally characterized by deteriorated or
inadequate infrastructure and structures. Notwithstanding subdivision
(c), the governing board of an authority established within a former
military base shall include a member of the military base closure
commission as a public member.
(f) The conditions described in subdivisions (d) and (e) shall
constitute blight within the meaning of the Community Redevelopment
Law. The authority shall not be required to make a finding of blight
or conduct a survey of blight within the area.
(g) An authority created pursuant to this part shall be a local
public agency subject to the Ralph M. Brown Act (Chapter 9
(commencing with Section 54950) of Part 1 of Division 2 of Title 5 of
the Government Code), the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code), and the Political Reform Act of 1974 (Title 9
(commencing with Section 81000) of the Government Code).
(h) (1) At any time after the authority is authorized to transact
business and exercise its powers, the legislative body or bodies of
the local government or governments that created the authority may
appropriate the amounts the legislative body or bodies deem necessary
for the administrative expenses and overhead of the authority.
(2) The money appropriated may be paid to the authority as a grant
to defray the expenses and overhead, or as a loan to be repaid upon
the terms and conditions as the legislative body may provide. If
appropriated as a loan, the property owners within the plan area
shall be made third-party beneficiaries of the repayment of the loan.
In addition to the common understanding and usual interpretation of
the term, "administrative expense" includes, but is not limited to,
expenses of planning and dissemination of information.
34191.53. An authority may do all of the following:
(a) Provide funding to rehabilitate, repair, upgrade, or construct
infrastructure.
(b) Provide for low- and moderate-income housing.
(c) Remedy or remove a release of hazardous substances pursuant to
the Polanco Redevelopment Act (Article 12.5 (commencing with Section
33459) of Part 1 of Chapter 4 of Division 24).
(d) Provide for seismic retrofits of existing buildings pursuant
to Section 33420.1.
(e) Acquire and transfer real property in accordance with
paragraph (4) of subdivision (a) of Section 33333.2, Article 7
(commencing with Section 33390) of Part 1 of Division 24, and
Sections 33340, 33349, 33350, 33435, 33436, 33437, 33437.5, 33438,
33439, 33440, 33442, 33443, 33444, 33444.5, 33444.6, and 33445.
The authority shall retain controls and establish restrictions or
covenants running with the land sold or leased for private use for
such periods of time and under such conditions as are provided in the
plan. The establishment of such controls is a public purpose under
the provisions of this part.
(f) Issue bonds pursuant to Article 5 (commencing with Section
33640) of Chapter 6 of Part 1 of Division 24.
(g) Borrow money, receive grants, or accept financial or other
assistance or investment from the state or the federal government or
any other public agency or private lending institution for any
project or within its area of operation, and may comply with any
conditions of the loan or grant. An authority may qualify for funding
as a disadvantaged community as determined by the California
Environmental Protection Agency pursuant to Section 79505.5 of the
Water Code or as defined by Section 56033.5 of the Government Code.
An authority may also enter into an agreement with a qualified
community development entity, as defined by Section 45D(c) of the
Internal Revenue Code, to coordinate investments of funds derived
from the New Markets Tax Credit with those of the authority in
instances where coordination offers opportunities for greater
efficiency of investments to improve conditions described in
subdivisions (d) and (e) within the territorial jurisdiction of the
authority.
(h) Adopt a community revitalization and investment plan pursuant
to Section 34191.55.
(i) Make loans or grants for owners or tenants to improve,
rehabilitate, or retrofit buildings or structures within the plan
area.
(j) Except as specified in Section 33426.5, provide direct
assistance to businesses within the plan area in connection with new
or existing facilities for industrial or manufacturing uses.
34191.55. An authority shall adopt a community revitalization and
investment plan that may include a provision for the receipt of tax
increment funds generated within the area according to Section 33670,
provided the plan includes each of the following elements:
(a) A statement of the principal goals and objectives of the plan.
(b) A description of the deteriorated or inadequate infrastructure
within the area and a program for construction of adequate
infrastructure or repair or upgrading of existing infrastructure.
(c) A program that complies with Sections 33334.2 and all other
housing-related provisions of the Community Redevelopment Law (Part 1
(commencing with Section 33300) of Division 24). An authority that
includes a provision for the receipt of tax increment revenues
pursuant to Section 33670 in its Community Revitalization and
Investment Plan shall dedicate at least 25 percent of allocated tax
increment revenues for affordable housing purposes. If the authority
makes a finding that combining funding received under this program
with other funding for the same purpose shall reduce administrative
costs or expedite the construction of affordable housing, then an
authority may transfer funding from the program to the housing
authority within the territorial jurisdiction of the local
jurisdiction that created the authority or to the entity that
received the housing assets of the former redevelopment agency
pursuant to Section 34176; however, Section 34176.1 shall not apply
to funds transferred. Funding shall be spent within the project area
in which the funds were generated. Any recipient of funds transferred
pursuant to this subdivision shall comply with all applicable
provisions of the Community Redevelopment Law.
(d) A program to remedy or remove a release of hazardous
substances, if applicable.
(e) A program to provide funding for or otherwise facilitate the
economic revitalization of the area.
(f) A fiscal analysis setting forth the projected receipt of
revenue and projected expenses over a five-year planning horizon,
including the potential issuance of bonds backed by tax increment
during the term of the plan.
(g) The time limits imposed by Section 33333.2.
(h) A program that does both of the following:
(1) Prohibits the number of housing units occupied by extremely
low, very low, and low-income households, including the number of
bedrooms in those units, at the time the plan is adopted, from being
reduced in the plan area during the effective period of the plan.
(2) Requires the replacement of dwelling units that house
extremely low, very low, or low-income households pursuant to
subdivision (a) of Section 33413 within two years of their
displacement.
34191.57. (a) The authority shall consider adoption of the plan
at three public hearings that shall take place at least 30 days
apart. At the first public hearing, the authority shall hear all
written and oral comments but take no action. At the second public
hearing, the authority shall consider all written and oral comments
and take action to modify or reject the plan. If the plan is not
rejected at the second public hearing, then the authority shall
conduct a protest proceeding at the third public hearing to consider
whether the property owners and residents within the plan area wish
to present oral or written protests against the creation of the
authority.
(b) The draft plan shall be made available to the public and to
each property owner within the area at a meeting held at least 30
days prior to the notice given for the first public hearing. The
purposes of the meeting shall be to allow the staff of the authority
to present the draft plan, answer questions about the plan, and
consider comments about the plan.
(c) (1) Notice of the first public hearing shall be given by
publication not less than once a week for four successive weeks in a
newspaper of general circulation published in the county in which the
area lies and shall be mailed to each property owner within the
proposed area of the plan. Notice of the second public hearing shall
be given by publication not less than 10 days prior to the date of
the second public hearing in a newspaper of general circulation
published in the county in which the area lies and shall be mailed to
each property owner within the proposed area of the plan. The notice
shall do all of the following, as applicable:
(A) Describe specifically the boundaries of the proposed area.
(B) Describe the purpose of the plan.
(C) State the day, hour, and place when and where any and all
persons having any comments on the proposed plan may appear to
provide written or oral comments to the authority.
(D) Notice of second public hearing shall include a summary of the
changes made to the plan as a result of the oral and written
testimony received at or before the public hearing and shall identify
a location accessible to the public where the plan to be presented
at the second public hearing can be reviewed.
(E) Notice of the third public hearing to consider any written or
oral protests shall contain a copy of the final plan adopted pursuant
to subdivision (a), and shall inform the property owner and resident
of his or her right to submit an oral or written protest before the
close of the public hearing. The protest may state that the property
owner or resident objects to the authority taking action to implement
the plan.
(i) At the third public hearing, the authority shall consider all
written and oral protests received prior to the close of the public
hearing. If there is a majority protest, the authority shall call an
election of the property owners and residents in the area covered by
the plan. A majority protest exists if protests have been filed
representing over 50 percent of the combined number of property
owners and residents in the area who are at least 18 years of age.
(ii) An election required pursuant to clause (i) shall be held
within 90 days of the public hearing and may be held by mail-in
ballot. The authority shall adopt, at a duly noticed public hearing,
procedures for this election.
(iii) If a majority of the property owners and residents vote
against the plan, then the authority shall not take any further
action to implement the proposed plan. The authority shall not
propose a new or revised plan to the affected property owners and
residents for at least one year following the date of an election in
which the plan was rejected.
(2) The authority may provide notice of the public hearings to
tenants of properties within the proposed area of the plan in a
manner of its choosing.
(d) At the hour set in the notice required by subdivision (a), the
authority shall consider all written and oral comments.
(e) If a majority protest does not exist, the authority may adopt
the plan at the conclusion of the third public hearing by ordinance.
The ordinance adopting the plan shall be subject to referendum as
prescribed by law.
(f) For the purposes of Section 33670, the redevelopment plan
shall be the plan adopted pursuant to this section.
(g) The authority shall consider and adopt an amendment or
amendments to a plan in accordance with the provisions of this
section.
34191.59. (a) The plan adopted pursuant to Section 34191.57 may
include a provision for the receipt of tax increment funds according
to Section 33670 in accordance with this section.
(b) The plan shall limit the taxes that are allocated to the
authority to those defined in Section 33670 collected for the benefit
of the taxing agencies that have adopted a resolution pursuant to
subdivision (d).
(c) The provision for the receipt of tax increment funds shall
become effective in the tax year that begins after the December 1
first following the adoption of the plan.
(d) At any time prior to or after adoption of the plan, any city,
county, or special district, other than a school entity as defined in
subdivision (n) of Section 95 of the Revenue and Taxation Code or a
successor agency as defined in subdivision (j) of Section 34171, that
receives ad valorem property taxes from property located within an
area may adopt a resolution directing the county auditor-controller
to allocate its share of tax increment funds within the area covered
by the plan according to Section 33670 to the authority. The
resolution adopted pursuant to this subdivision may direct the county
auditor-controller to allocate less than the full amount of the tax
increment, establish a maximum amount of time in years that the
allocation takes place, or limit the use of the funds by the
authority for specific purposes or programs. A resolution adopted
pursuant to this subdivision may be repealed and be of no further
effect by giving the county auditor-controller 60 days' notice;
provided, however, that the county auditor-controller shall continue
to allocate to the authority the taxing entity's share of ad valorem
property taxes that have been pledged to the repayment of debt issued
by the authority until the debt has been fully repaid. Prior to
adopting a resolution pursuant to this subdivision a city, county, or
special district shall approve a memorandum of understanding with
the authority governing the authority's use of tax increment funds
for administrative and overhead expenses pursuant to subdivision (h)
of Section 34191.51.
(e) Upon adoption of a plan that includes a provision for the
receipt of tax increment funds according to Section 33670, the county
auditor-controller shall allocate tax increment revenue to the
authority as follows:
(1) If the authority was formed pursuant to subparagraph (A) of
paragraph (1) of subdivision (b) of Section 34191.51, the authority
shall be allocated each year specified in the plan that portion of
the taxes levied for each city, county, city and county, and special
district that has adopted a resolution pursuant to subdivision (d),
in excess of the amount specified in subdivision (a) of Section
33670.
(2) If the authority was formed pursuant to subparagraph (B) of
paragraph (1) of subdivision (b) of Section 34191.51, the authority
shall be allocated each year specified in the plan that portion of
the taxes levied for each jurisdiction as provided in the joint
powers agreement in excess of the amount specified in subdivision (a)
of Section 33670.
(f) If an area includes, in whole or in part, land formerly or
currently designated as a part of a redevelopment project area, as
defined in Section 33320.1, any plan adopted pursuant to this part
that includes a provision for the receipt of tax increment revenues
according to Section 33670 shall include a provision that tax
increment amounts collected and received by an authority are subject
and subordinate to any preexisting enforceable obligation as that
term is defined by Section 34171.
34191.61. (a) The authority shall review the plan at least
annually and make any amendments that are necessary and appropriate
in accordance with the procedures set forth in Section 34191.57, and
shall require the preparation of an annual independent financial
audit paid for from revenues of the authority.
(b) An authority shall adopt an annual report on or before June 30
of each year after holding a public hearing. Written copies of the
draft report shall be made available to the public 30 days prior to
the public hearing. The authority shall cause the draft report to be
posted in an easily identifiable and accessible location on the
authority's Internet Web site and shall mail a written notice of the
availability of the draft report on the Internet Web site to each
owner of land and each resident within the area covered by the plan
and to each taxing entity that has adopted a resolution pursuant to
subdivision (d) of Section 34191.59. The notice shall be mailed by
first-class mail, but may be addressed to "occupant."
(c) The annual report shall contain all of the following:
(1) A description of the projects undertaken in the fiscal year
and a comparison of the progress expected to be made on those
projects compared to the actual progress.
(2) A chart comparing the actual revenues and expenses, including
administrative costs, of the authority to the budgeted revenues and
expenses.
(3) The amount of tax increment revenues received.
(4) The amount of revenues received for low- and moderate-income
housing.
(5) The amount of revenues expended for low- and moderate-income
housing.
(6) An assessment of the status regarding completion of the
authority's projects.
(7) The amount of revenues expended to assist private businesses.
(d) If the authority fails to provide the annual report required
by subdivision (a), the authority shall not spend any funds received
pursuant to a resolution adopted pursuant to subdivision (d) of
Section 34191.59.
(e) Every 10 years, at the public hearing held pursuant to
subdivision (b), the authority shall conduct a protest proceeding to
consider whether the property owners and residents within the plan
area wish to present oral or written protests against the authority.
Notice of this protest proceeding shall be included in the written
notice of the hearing on the annual report and shall inform the
property owner and resident of his or her right to submit an oral or
written protest before the close of the public hearing. The protest
may state that the property owner or resident objects to the
authority taking action to implement the plan on and after the date
of the election described in subdivision (f). The authority shall
consider all written and oral protests received prior to the close of
the public hearing.
(f) If there is a majority protest, the authority shall call an
election of the property owners and residents in the area covered by
the plan, and shall not initiate or authorize any new projects until
the election is held. A majority protest exists if protests have been
filed representing over 50 percent of the combined number of
property owners and residents, at least 18 years of age or older, in
the area.
(g) An election required pursuant to subdivision (f) shall be held
within 90 days of the public hearing and may be held by mail-in
ballot. The authority shall adopt, at a duly noticed public hearing,
procedures for holding this election.
(h) If a majority of the property owners and residents vote
against the authority, then the authority shall not take any further
action to implement the plan on and after the date of the election
held pursuant to subdivision (e). This section shall not prevent the
authority from taking any and all actions and appropriating and
expending funds, including, but not limited to, any and all payments
on bonded or contractual indebtedness, to carry out and complete
projects for which expenditures of any kind had been made prior to
the date of the election.
34191.63. (a) Every five years, beginning in the calendar year in
which the authority has allocated a cumulative total of more than
one million dollars ($1,000,000) in tax increment revenues, including
any proceeds of a debt issuance, for the purposes of subdivision (c)
or Section 34191.55, the authority shall contract for an independent
audit to determine compliance with the affordable housing
maintenance and replacement requirements of subdivision (h) of
Section 34191.55, including provisions to ensure that the
requirements are met within each five-year period covered by the
audit. The audit shall be conducted according to guidelines
established by the Controller, which shall be established on or
before December 31, 2020. A copy of the completed audit shall be
provided to the Controller. The Controller shall not be required to
review and approve the completed audits.
(b) Where
the audit demonstrates a failure to comply with the requirements of
subdivision (h) of Section 34191.55 shall require the authority to
adopt and submit to the Controller, as part of the audit, a plan to
achieve compliance with those provisions as soon as feasible, but in
not less than two years following the audit findings. The Controller
shall review and approve the plan, and require the plan to stay in
effect until compliance is achieved. The Controller shall ensure that
the plan includes one or more of the following means of achieving
compliance:
(1) The expenditure of an additional 10 percent of gross tax
increment revenue on increasing, preserving, and improving the supply
of low-income housing.
(2) An increase in the production, by an additional 10 percent, of
housing for very low income households as required by paragraph (2)
of subdivision (b) of Section 33413.
(3) The targeting of expenditures pursuant to Section 33334.2
exclusively to rental housing affordable to, and occupied by, persons
of very low and extremely low income.
(c) If an authority is required to conduct an audit pursuant to
subdivision (a) in advance of the issuance of the Controller's
guidelines, then it shall prepare an updated audit pursuant to the
Controller's guidelines on or before January 1, 2022.
34191.64. (a) If an authority fails to provide a copy of the
completed audit to the Controller as required by Section 34191.63
within 20 days following receipt of a written notice of the failure
from the Controller, the authority shall forfeit to the state:
(1) Two thousand five hundred dollars ($2,500) in the case of an
authority with a total revenue, in the prior year, of less than one
hundred thousand dollars ($100,000), as reported in the Controller's
annual financial reports.
(2) Five thousand five hundred dollars ($5,500) in the case of an
authority with a total revenue, in the prior year, of at least one
hundred thousand dollars ($100,000) but less than two hundred fifty
thousand dollars ($250,000), as reported in the Controller's annual
financial reports.
(3) Ten thousand dollars ($10,000) in the case of an authority
with a total revenue, in the prior year, of at least two hundred
fifty thousand dollars ($250,000), as reported in the Controller's
annual financial reports.
(b) If an authority fails to provide a copy of the completed audit
to the Controller as required by Section 34191.63 within 20 days
after receipt of a written notice pursuant to subdivision (a) for two
consecutive years, the authority shall forfeit an amount that is
double the amount of the forfeiture assessed pursuant to subdivision
(a).
(c) (1) If an authority fails to provide a copy of the completed
audit to the Controller as required by Section 34191.63 within 20
days after receipt of a written notice pursuant to subdivision (a)
for three or more consecutive years, the authority shall forfeit an
amount that is triple the amount of the forfeiture assessed pursuant
to subdivision (a).
(2) The Controller shall conduct, or cause to be conducted, an
independent financial audit report.
(3) The authority shall reimburse the Controller for the cost of
complying with this subdivision.
(d) Upon the request of the Controller, the Attorney General shall
bring an action for the forfeiture in the name of the people of the
State of California.
(e) Upon satisfactory showing of good cause, the Controller shall
waive the forfeiture requirements of this section.
