Bill Text: CA AB1412 | 2015-2016 | Regular Session | Enrolled

California Assembly Bill 1412 (Prior Session Legislation)

Bill Title: Redevelopment: successor agencies to redevelopment agencies.

Spectrum: Bipartisan Bill

Status: (Vetoed) 2016-01-15 - Consideration of Governor's veto stricken from file. [AB1412 Detail]

Download: California-2015-AB1412-Enrolled.html

BILL NUMBER: AB 1412	ENROLLED
	BILL TEXT

	PASSED THE SENATE  SEPTEMBER 9, 2015
	PASSED THE ASSEMBLY  MAY 26, 2015
	AMENDED IN ASSEMBLY  APRIL 30, 2015

INTRODUCED BY   Assembly Member Perea
   (Principal coauthor: Senator Cannella)

                        FEBRUARY 27, 2015

   An act to amend Section 34191.4 of the Health and Safety Code,
relating to redevelopment.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1412, Perea. Redevelopment: successor agencies to redevelopment
agencies.
   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 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. However, existing law provides that 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 agency are deemed to be enforceable obligations
provided that the oversight board makes a finding that the loan was
for legitimate redevelopment purposes.
   This bill would additionally provide that upon application by the
successor agency and approval by the oversight board, loan agreements
entered into between a redevelopment agency and the City of San
Joaquin, where the outstanding principal balance of the loan is
$1,250,000 or less, are enforceable obligations if the oversight
board finds, among other things, that the loan was for legitimate
redevelopment purposes, it was entered into more than 2 years after
the creation of the former redevelopment agency and prior to January
1, 2011, and it is the only debt of the former redevelopment agency
remaining to be paid on the recognized obligation payment schedule.
   This bill would make legislative findings and declarations as to
the necessity of a special statute for the City of San Joaquin.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 34191.4 of the Health and Safety Code is
amended to read:
   34191.4.  The following provisions shall apply to any successor
agency that has been issued a finding of completion by the Department
of Finance:
   (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
Finance 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) Except as provided in subdivision (c), and 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 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) If the oversight board finds that the loan is an enforceable
obligation, the accumulated interest on the remaining principal
amount of the loan shall be recalculated from origination at the
interest rate earned by funds deposited into the Local Agency
Investment Fund. The 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 interest rate not to exceed the
interest rate earned by funds deposited into the Local Agency
Investment Fund. 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 (7) 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 (7) 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.
   (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.
   (c) (1) Notwithstanding subdivision (b) and subdivision (d) of
Section 34171, upon application by the successor agency and approval
by the oversight board, loan agreements entered into between a
redevelopment agency and the City of San Joaquin, where the
outstanding principal balance of the loan is one million two hundred
fifty thousand ($1,250,000) or less, shall be deemed to be
enforceable obligations if the oversight board makes all of the
following findings:
   (A) The loan was for legitimate redevelopment purposes.
   (B) The loan was entered into more than two years after the
creation of the former redevelopment agency, and prior to January 1,
2011.
   (C) The loan was related to an indebtedness obligation.
   (D) The loan is the only debt of the former redevelopment agency
remaining to be paid on the recognized obligation payment schedule.
   (E) The amount distributed to the taxing entities pursuant to
paragraph (4) of subdivision (b) of Section 34183 in the previous
fiscal year was less than two hundred fifty thousand dollars
($250,000).
   (2) Repayments of a loan described in this subdivision are not
subject to the requirements of paragraph (1) and subparagraph (A) of
paragraph (2) of subdivision (b). The accumulated interest rate shall
be recalculated from origination at the interest rate of 0.25
percent.
   (d) (1) Bond proceeds derived from bonds issued on or before
December 31, 2010, shall be used for the purposes for which the bonds
were sold.
   (2) (A) Notwithstanding Section 34177.3 or any other conflicting
provision of law, bond proceeds 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 cannot be spent in a manner
consistent with the bond covenants pursuant to subparagraph (A), the
proceeds shall be used to defease the bonds or to purchase those same
outstanding bonds on the open market for cancellation.
  SEC. 2.  The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of the special circumstances relating to the health and
safety of the residents of the City of San Joaquin.