Bill Text: CA AB1320 | 2013-2014 | Regular Session | Amended
Bill Title: Redevelopment: allocation of property tax: passthrough payments.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1320 Detail]
Download: California-2013-AB1320-Amended.html
BILL NUMBER: AB 1320 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 10, 2013
INTRODUCED BY Assembly Member Bloom
FEBRUARY 22, 2013
An act to amend add Section
34187 of 34187.1 to the Health and Safety Code,
relating to redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
AB 1320, as amended, Bloom. Redevelopment: successor
agencies. allocation of property tax: passthrough
payments .
Existing law dissolved redevelopment agencies and community
development agencies, as of February 1, 2012, and provides for the
designation of successor agencies to wind down the affairs of the
dissolved redevelopment agencies and to, among other things, make
payments due for enforceable obligations and to perform obligations
required pursuant to any enforceable obligation. Existing law
requires the successor agency to dispose of all remaining assets and
terminate its existence within one year of the final debt payment and
requires any passthrough payment obligations to cease at that time.
On and after May 1, 2012, existing law requires the county
auditor-controller to distribute to the taxing entities, including
school entities, all property tax revenues that were associated with
the payment of a recognized obligation that has been paid off or
retired. Existing property tax law requires the county auditor, in
each fiscal year, to allocate property tax revenues to local
jurisdictions in accordance with specified formulas and procedures,
and generally requires that each jurisdiction be allocated an amount
equal to the total of the amount of revenue allocated to that
jurisdiction in the prior fiscal year, subject to certain
modifications, and that jurisdiction's portion of the annual tax
increment, as defined. Existing law establishes a public school
financing system that requires funding for each county superintendent
of schools and school district to be calculated pursuant to a
revenue limit, as specified, and requires the revenue limit and
general-purpose entitlement for a school entity to be composed of,
among other things, certain types of revenues, including ad valorem
property tax revenues, and that additional amount of revenues in the
form of state aid, that is necessary to fully fund the entity's
revenue limit.
This bill would provide that a specified amount of ad valorem
property tax revenues allocated to a school entity, defined with
reference to former passthrough payments made by a redevelopment
agency, will not be included as ad valorem property tax revenues
counted against the revenue limit for that entity.
The Community Redevelopment Law authorized the establishment of
redevelopment agencies in communities to address the effects of
blight, as defined. Existing law dissolved redevelopment agencies as
of February 1, 2012, and provides for the designation of successor
agencies, as defined. Existing law requires successor agencies to
wind down the affairs of the dissolved redevelopment agencies,
subject to review by oversight boards. Existing law requires a
successor agency to, among other things, continue to make payments
due for enforceable obligations, dispose of all assets of the former
redevelopment agency, and remit unencumbered balances of
redevelopment agency funds, including housing funds, to the county
auditor-controller for distribution to taxing entities. Existing law
requires the successor agency to dispose of all remaining assets and
terminate its existence within one year of the final debt payment,
requires any passthrough payment obligations to cease at that time,
and prohibits the allocation of property tax to the Redevelopment
Property Tax Trust Fund for that agency following termination of the
agency.
This bill would eliminate the requirement that the successor
agency dispose of all remaining assets and terminate its existence
within one year of the final debt payment. The bill would
additionally eliminate the requirement that passthrough payment
obligations cease at that time, and would eliminate the prohibition
on the allocation of property tax to the Redevelopment Property Tax
Trust Fund for that agency.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 34187.1 is added to the
Health and Safety Code , to read:
34187.1. (a) Notwithstanding any other law, for each fiscal year
until and including the last fiscal year in which a former
redevelopment agency would have been permitted to receive property
taxes pursuant to Section 33670 had the redevelopment agency not been
dissolved pursuant this part, the amount of the property taxes
distributed to local education agencies pursuant to this part, or
otherwise distributed to local education agencies under the Revenue
and Taxation Code if no property taxes remain to be distributed under
this part, that is equal to that portion of the passthrough payments
that would have been due to those local education agencies in that
fiscal year if the redevelopment agency had not been dissolved, under
Sections 33401, 33492.140, 33607, 33607.5, 33607.7, and 33676;
pursuant to any passthrough agreement between a redevelopment agency
and a local education agency that was entered into prior to January
1, 1994; or pursuant to any agreement between a redevelopment agency
and a local education agency under Section 33445, and would not have
been considered to be property taxes for the purposes of subdivision
(h) of Section 42238, subdivision (c) of Section 2558, or subdivision
(d) of Section 42238 of the Education Code, under the law as it
existed on January 1, 2011, shall not be considered to be property
taxes for the purposes of those sections of the Education Code.
(b) For the purpose of this section, the last fiscal year in which
a former redevelopment agency would have been permitted to receive
property taxes pursuant to Section 33670 had the redevelopment agency
not been dissolved shall be either the last year under the time
limit to receive property taxes pursuant to Section 33670 or the last
year consistent with the limitation on the number of dollars of
taxes that may be divided and allocated to the former redevelopment
agency, whichever occurs first, as set forth in the redevelopment
plans of the redevelopment project areas of that dissolved
redevelopment agency adopted or amended pursuant to Section 33331.5,
33333.2, 33333.4, or 33333.6.
(c) The auditor-controller shall calculate the amounts specified
in subdivision (a) and shall provide the county office of education
and each local education agency with the underlying data calculation.
(d) As used in this section, the term "local education agency"
means a school district, community college district, or county office
of education.
SECTION 1. Section 34187 of the Health and
Safety Code is amended to read:
34187. (a) 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.
(b) Notwithstanding paragraph (a), the Department of Finance 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.
