Bill Text: CA AB368 | 2015-2016 | Regular Session | Introduced
Bill Title: Community redevelopment.
Sponsorship: Partisan Bill (Republican 1)
Status: (Failed) 2016-02-01 - Died at Desk. [AB368 Detail]
Download: California-2015-AB368-Introduced.html
BILL NUMBER: AB 368 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Steinorth
FEBRUARY 17, 2015
An act to amend Section 33607.5 of the Health and Safety Code,
relating to redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
AB 368, as introduced, Steinorth. Community redevelopment.
Existing law relating to redevelopment agencies provides for
specified payments with respect to development project areas.
This bill would make nonsubstantive changes to those provisions.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 33607.5 of the Health and Safety Code is
amended to read:
33607.5. (a) (1) This section shall apply to each redevelopment
project area that, pursuant to a redevelopment plan which
that contains the provisions required by Section
33670, is either: (A) adopted on or after January 1, 1994, including
later amendments to these redevelopment plans; or (B) adopted prior
to January 1, 1994, but amended, after January 1, 1994, to include
new territory. For plans amended after January 1, 1994, only the tax
increments from territory added by the amendment shall be subject to
this section. All the amounts calculated pursuant to this section
shall be calculated after the amount required to be deposited in the
Low and Moderate Income Housing Fund pursuant to Sections 33334.2,
33334.3, and 33334.6 has been deducted from the total amount of tax
increment funds received by the agency in the applicable fiscal year.
(2) The payments made pursuant to this section shall be in
addition to any amounts the affected taxing entities receive pursuant
to subdivision (a) of Section 33670. The payments made pursuant to
this section to the affected taxing entities, including the
community, shall be allocated among the affected taxing entities,
including the community if the community elects to receive payments,
in proportion to the percentage share of property taxes each affected
taxing entity, including the community, receives during the fiscal
year the funds are allocated, which percentage share shall be
determined without regard to any amounts allocated to a city, a city
and county, or a county pursuant to Sections 97.68 and 97.70 of the
Revenue and Taxation Code, and without regard to any allocation
reductions to a city, a city and county, a county, a special
district, or a redevelopment agency pursuant to Sections 97.71,
97.72, and 97.73 of the Revenue and Taxation Code and Section
33681.12. The agency shall reduce its payments pursuant to this
section to an affected taxing entity by any amount the agency has
paid, directly or indirectly, pursuant to Section 33445, 33445.5,
33445.6, 33446, or any other provision of law other than this section
for, or in connection with, a public facility owned or leased by
that affected taxing agency, except: (A) any amounts the agency has
paid directly or indirectly pursuant to an agreement with a taxing
entity adopted prior to January 1, 1994; or (B) any amounts that are
unrelated to the specific project area or amendment governed by this
section. The reduction in a payment by an agency to a school
district, community college district, or county office of education,
or for special education, shall be subtracted only from the amount
that otherwise would be available for use by those entities for
educational facilities pursuant to paragraph (4). If the amount of
the reduction exceeds the amount that otherwise would have been
available for use for educational facilities in any one year, the
agency shall reduce its payment in more than one year.
(3) If an agency reduces its payment to a school district,
community college district, or county office of education, or for
special education, the agency shall do all of the following:
(A) Determine the amount of the total payment that would have been
made without the reduction.
(B) Determine the amount of the total payment without the
reduction which: that: (i) would have
been considered property taxes; and (ii) would have been available to
be used for educational facilities pursuant to paragraph (4).
(C) Reduce the amount available to be used for educational
facilities.
(D) Send the payment to the school district, community college
district, or county office of education, or for special education,
with a statement that the payment is being reduced and including the
calculation required by this subdivision showing the amount to be
considered property taxes and the amount, if any, available for
educational facilities.
(4) (A) Except as specified in subparagraph (E), of the total
amount paid each year pursuant to this section to school districts,
43.3 percent shall be considered to be property taxes for the
purposes of paragraph (1) of subdivision (h) of Section 42238 of the
Education Code, as it read on January 1, 2013, and paragraph (1) of
subdivision (j) of Section 42238.02 of the Education Code, and 56.7
percent shall not be considered to be property taxes for the purposes
of that section and shall be available to be used for educational
facilities, including, in the case of amounts paid during the 2011-12
fiscal year through the 2015-16 fiscal year, inclusive, land
acquisition, facility construction, reconstruction, remodeling,
maintenance, or deferred maintenance.
(B) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section to community college
districts, 47.5 percent shall be considered to be property taxes for
the purposes of Section 84751 of the Education Code, and 52.5 percent
shall not be considered to be property taxes for the purposes of
that section and shall be available to be used for educational
facilities, including, in the case of amounts paid during the 2011-12
fiscal year through the 2015-16 fiscal year, inclusive, land
acquisition, facility construction, reconstruction, remodeling,
maintenance, or deferred maintenance.
(C) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section to county offices of
education, 19 percent shall be considered to be property taxes for
the purposes of Section 2558 of the Education Code, as it read on
January 1, 2013, and Section 2575 of the Education Code, and 81
percent shall not be considered to be property taxes for the purposes
of that section and shall be available to be used for educational
facilities, including, in the case of amounts paid during the 2011-12
fiscal year through the 2015-16 fiscal year, inclusive, land
acquisition, facility construction, reconstruction, remodeling,
maintenance, or deferred maintenance.
(D) Except as specified in subparagraph (E), of the total amount
paid each year pursuant to this section for special education, 19
percent shall be considered to be property taxes for the purposes of
Section 56712 of the Education Code, and 81 percent shall not be
considered to be property taxes for the purposes of that section and
shall be available to be used for education facilities, including, in
the case of amounts paid during the 2011-12 fiscal year through the
2015-16 fiscal year, inclusive, land acquisition, facility
construction, reconstruction, remodeling, maintenance, or deferred
maintenance.
(E) If, pursuant to paragraphs (2) and (3), an agency reduces its
payments to an educational entity, the calculation made by the agency
pursuant to paragraph (3) shall determine the amount considered to
be property taxes and the amount available to be used for educational
facilities in the year the reduction was made.
(5) Local education agencies that use funds received pursuant to
this section for school facilities shall spend these funds at schools
that are: (A) within the project area, (B) attended by students from
the project area, (C) attended by students generated by projects
that are assisted directly by the redevelopment agency, or (D)
determined by the governing board of a local education agency to be
of benefit to the project area.
(b) Commencing with the first fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, including the community if
the community elects to receive a payment, an amount equal to 25
percent of the tax increments received by the agency after the amount
required to be deposited in the Low and Moderate Income Housing Fund
has been deducted. In any fiscal year in which the agency receives
tax increments, the community that has adopted the redevelopment
project area may elect to receive the amount authorized by this
paragraph.
(c) Commencing with the 11th fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, other than the community
which that has adopted the project, in
addition to the amounts paid pursuant to subdivision (b) and after
deducting the amount allocated to the Low and Moderate Income Housing
Fund, an amount equal to 21 percent of the portion of tax increments
received by the agency, which shall be calculated by applying the
tax rate against the amount of assessed value by which the current
year assessed value exceeds the first adjusted base year assessed
value. The first adjusted base year assessed value is the assessed
value of the project area in the 10th fiscal year in which the agency
receives tax increment revenues.
(d) Commencing with the 31st fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, other than the community
which that has adopted the project, in
addition to the amounts paid pursuant to subdivisions (b) and (c) and
after deducting the amount allocated to the Low and Moderate Income
Housing Fund, an amount equal to 14 percent of the portion of tax
increments received by the agency, which shall be calculated by
applying the tax rate against the amount of assessed value by which
the current year assessed value exceeds the second adjusted base year
assessed value. The second adjusted base year assessed value is the
assessed value of the project area in the 30th fiscal year in which
the agency receives tax increments.
(e) (1) Prior to incurring any loans, bonds, or other
indebtedness, except loans or advances from the community, the agency
may subordinate to the loans, bonds, or other indebtedness the
amount required to be paid to an affected taxing entity by this
section, provided that the affected taxing entity has approved these
subordinations pursuant to this subdivision.
(2) At the time the agency requests an affected taxing entity to
subordinate the amount to be paid to it, the agency shall provide the
affected taxing entity with substantial evidence that sufficient
funds will be available to pay both the debt service and the payments
required by this section, when due.
(3) Within 45 days after receipt of the agency's request, the
affected taxing entity shall approve or disapprove the request for
subordination. An affected taxing entity may disapprove a request for
subordination only if it finds, based upon substantial evidence,
that the agency will not be able to pay the debt payments and the
amount required to be paid to the affected taxing entity. If the
affected taxing entity does not act within 45 days after receipt of
the agency's request, the request to subordinate shall be deemed
approved and shall be final and conclusive.
(f) (1) The Legislature finds and declares both of the following:
(A) The payments made pursuant to this section are necessary in
order to alleviate the financial burden and detriment that affected
taxing entities may incur as a result of the adoption of a
redevelopment plan, and payments made pursuant to this section will
benefit redevelopment project areas.
(B) The payments made pursuant to this section are the exclusive
payments that are required to be made by a redevelopment agency to
affected taxing entities during the term of a redevelopment plan.
(2) Notwithstanding any other provision of law, a redevelopment
agency shall not be required, either directly or indirectly, as a
measure to mitigate a significant environmental effect or as part of
any settlement agreement or judgment brought in any action to contest
the validity of a redevelopment plan pursuant to Section 33501, to
make any other payments to affected taxing entities, or to pay for
public facilities that will be owned or leased to an affected taxing
entity.
(g) As used in this section, a "local education agency" is a
school district, a community college district, or a county office of
education.
