Bill Text: CA SB80 | 2009-2010 | Regular Session | Amended
Bill Title: Community redevelopment: Education Revenue Augmentation
Spectrum: Unknown
Status: (Engrossed - Dead) 2010-01-19 - Stricken from Senate file. [SB80 Detail]
Download: California-2009-SB80-Amended.html
BILL NUMBER: SB 80 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 25, 2009
INTRODUCED BY Committee on Budget and Fiscal Review
JANUARY 20, 2009
An act relating to the Budget Act of 2009.
to amend Section 33685 of the Health and Safety Code, relating to
community redevelopment, and declaring the urgency thereof, to take
effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 80, as amended, Committee on Budget and Fiscal Review.
Budget Act of 2009. Community redevelopment:
Education Revenue Augmentation Fund.
(1) Existing property tax law requires the county auditor, for
each fiscal year, to allocate property tax revenue 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 requires a redevelopment agency
to make a remittance, as determined by the Director of Finance prior
to May 10, to the county Educational Revenue Augmentation Fund (ERAF)
for the 2008-09 fiscal year and authorizes a legislative body to
remit, in lieu of making that payment prior to May 10, 2009, a
designated amount to the county auditor for deposit in the county
ERAF.
This bill instead would require a redevelopment agency to make the
remittance on or before June 30, 2009 of that fiscal year.
The bill would require the county auditor-controller to distribute
funds that are remitted to the county ERAF by a city-operated or
county-operated redevelopment agency only to a K-12 school district,
as defined, that is located partially or entirely within the project
area of the redevelopment agency in an amount proportional to the
average daily attendance of each school district. The bill would
require the county superintendent of schools to provide the average
daily attendance reported for each school district as of the Second
Proportional Apportionment for the 2008-09 fiscal year to the county
auditor-controller. The bill would require the county
auditor-controller to notify, on or before October 1, 2009, the
Department of Finance of the amount of funding apportioned to each
school district pursuant to this act.
The bill would also require, for the 2008-09 fiscal year, the
amount apportioned by the Superintendent of Public Instruction to
each school district pursuant to a specified provision of existing
law and, for purposes of making the computations required by Section
8 of Article XVI of the California Constitution, specified General
Fund revenues appropriated for school districts, to be reduced by the
total amount of ERAF moneys a school district receives, regardless
of the actual date the funds are received from each redevelopment
agency.
By imposing new duties upon local tax officials and school
districts with regard to the annual allocation of these revenues,
this bill would impose a state-mandated local program.
(2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
(3) This bill would declare that it is to take effect immediately
as an urgency statute.
This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2009.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: no yes .
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Legislature finds and declares
all of the following:
(1) The effectuation of the primary purposes of the Community
Redevelopment Law, including job creation, attracting new private
commercial investments, the physical and social improvement of
residential neighborhoods, and the provision and maintenance of low-
and moderate-income housing, is dependent upon the existence of an
adequate and financially solvent school system that is capable of
providing for the safety and education of students who live within
both redevelopment project areas and housing assisted by
redevelopment agencies. The attraction of new businesses to
redevelopment project areas depends upon the existence of an
adequately trained workforce, which can only be accomplished if
education at the primary and secondary schools is adequate. The
ability of communities to build residential development and attract
residents in redevelopment project areas depends upon the existence
of adequately maintained and operating schools serving the
redevelopment project area. The development and maintenance of low-
and moderate-income housing that are both within redevelopment
project areas and throughout the community can only be successful if
adequate schools exist to serve the residents of this housing.
(2) Redevelopment agencies have financially assisted schools that
benefit and serve the project area by paying part or all of the land
and the construction of school facilities and other improvements.
Redevelopment agencies have financially assisted schools to alleviate
the financial burden or detriment caused by the establishment of
redevelopment project areas.
(3) Because of the reduced funds available to the state to assist
schools that benefit and serve redevelopment project areas during the
2008-09 fiscal year, it is necessary for redevelopment agencies to
make additional payments to assist the programs and operations of
these schools to ensure that the objectives stated in this act can be
met.
(4) The payments to schools pursuant to this act are of benefit to
redevelopment project areas.
(b) It is the intent of the Legislature in enacting this act to
create a procedure to ensure that the funds contributed by a
redevelopment agency pursuant to this act are allocated to school
districts serving pupils living within or in the vicinity of any
project area of that redevelopment agency.
SEC. 2. Section 33685 of the Health and
Safety Code is amended to read:
33685. (a) (1) For the 2008-09 fiscal year a redevelopment agency
shall remit, as determined by the Director of Finance,
prior to May 10 on or before June 30 , an amount
equal to the amount determined for that agency pursuant to
subparagraph (K) of paragraph (2) to the county auditor for deposit
in the county Educational Revenue Augmentation Fund, created pursuant
to Article 3 (commencing with Section 97) of Chapter 6 of Part 0.5
of Division 1 of the Revenue and Taxation Code. Notwithstanding any
other law, in the 2008-09 fiscal year, no funds deposited in the
county Educational Revenue Augmentation Fund pursuant to this section
shall be distributed to a community college district.
(2) On or before November 15, 2008, the Director of Finance shall
do all of the following:
(A) (i) Determine the value of five 5
percent of the statewide total property tax revenue apportioned
to agencies pursuant to Section 33670.
(ii) If the value determined pursuant to clause (i) exceeds
three-hundred fifty million dollars ($350,000,000), the value
determined in clause (i) shall be allocated to each agency as
provided in paragraphs (B) to (J), inclusive.
(iii) If the value determined pursuant to clause (i) does not
exceed three-hundred fifty million dollars ($350,000,000),
three-hundred fifty million dollars ($350,000,000) shall be allocated
to each agency as provided in subparagraphs (B) to (J), inclusive.
(B) Determine the net tax increment apportioned to each agency
pursuant to Section 33670, excluding any amounts apportioned to
affected taxing entities pursuant to Section 33401, 33607.5, or
33676.
(C) Determine the net tax increment apportioned to all agencies
pursuant to Section 33670, excluding any amounts allocated to
affected taxing entities pursuant to Section 33401, 33607.5, or
33676.
(D) Determine a percentage factor by dividing the amount
determined pursuant to subparagraph (A) by two and then by the amount
determined pursuant to subparagraph (C).
(E) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (B) by the percentage factor
determined pursuant to subparagraph (D).
(F) Determine the total amount of property tax revenue apportioned
to each agency pursuant to Section 33670, including any amounts
allocated to affected taxing entities pursuant to Section 33401,
33607.5, or 33676.
(G) Determine the total amount of property tax revenue apportioned
to all agencies pursuant to Section 33670, including any amounts
allocated to affected taxing entities pursuant to Section 33401,
33607.5, or 33676.
(H) Determine a percentage factor by dividing the amount
determined pursuant to subparagraph (A) by two and then by the amount
determined pursuant to subparagraph (G).
(I) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (F) by the percentage factor
determined pursuant to subparagraph (H).
(J) Add the amount determined pursuant to subparagraph (E) to the
amount determined pursuant to subparagraph (I).
(K) Notify each agency, each legislative body, and each county
auditor of each agency's amount. The county auditor shall deposit
these amounts in the county Educational Revenue Augmentation Fund
pursuant to paragraph (1).
(3) The obligation of any agency to make the payments required
pursuant to this subdivision shall be subordinate to the lien of any
pledge of collateral securing, directly or indirectly, the payment of
the principal, or interest on any bonds of the agency including,
without limitation, bonds secured by a pledge of taxes allocated to
the agency pursuant to Section 33670. Agencies shall factor in the
fiscal obligations created by this subdivision when issuing bonded
indebtedness.
(b) (1) Notwithstanding any other law, to make the full allocation
required by this section, an agency may borrow up to 50 percent of
the amount required to be allocated to the Low and Moderate Income
Housing Fund, pursuant to Sections 33334.2, 33334.3, and 33334.6,
unless, in a given fiscal year, executed contracts exist that would
be impaired if the agency reduced the amount allocated to the Low and
Moderate Income Housing Fund pursuant to the authority of this
subdivision.
(2) As a condition of borrowing pursuant to this subdivision, an
agency shall make a finding that there are insufficient other moneys
to meet the requirements of subdivision (a). Funds borrowed pursuant
to this subdivision shall be repaid in full within 10 years following
the date on which moneys are remitted to the county auditor for
deposit in the county Educational Revenue Augmentation Fund pursuant
to subdivision (a).
(c) To make the allocation required by this section, an agency may
use any funds that are legally available and not legally obligated
for other uses, including, but not limited to, reserve funds,
proceeds of land sales, proceeds of bonds or other indebtedness,
lease revenues, interest, and other earned income. No moneys held in
a low- and moderate-income fund as of July 1 of the applicable fiscal
year may be used for this purpose.
(d) The legislative body shall by March 1 of each year
, on or before June 30, 2009, report to the
county auditor as to how the agency intends to fund the allocation
required by this section, or that the legislative body intends to
remit the amount in lieu of the agency pursuant to Section 33687.
(e) The allocation obligations imposed by this section, including
amounts owed, if any, created under this section, are hereby declared
to be an indebtedness of the redevelopment project to which they
relate, payable from taxes allocated to the agency pursuant to
Section 33670, and shall constitute an indebtedness of the agency
with respect to the redevelopment project until paid in full.
(f) It is the intent of the Legislature, in enacting this section,
that these allocations directly or indirectly assist in the
financing or refinancing, in whole or in part, of the community's
redevelopment project pursuant to Section 16 of Article XVI of the
California Constitution.
(g) In making the annual determinations required by subdivision
(a), the Director of Finance shall use those amounts reported in
"Table 7, Assessed Valuation, Tax Increment Distribution and
Statement of Indebtedness" for all agencies and for each agency in
the most recent published edition of the Controller's Community
Redevelopment Agencies Annual Report made pursuant to Section 12463.3
of the Government Code.
(h) If revised reports have been accepted by the Controller on or
before September 1 of the applicable fiscal year, the Director of
Finance shall use appropriate data that has been certified by the
Controller for the purpose of making the determinations required by
subdivision (a).
(i) Nothing in this section shall be construed as extending the
time limits on the ability of agencies to do any of the following:
(1) Establish loans, advances, or indebtedness.
(2) Receive tax increment revenues.
(3) Exercise eminent domain powers.
(j) (1) Notwithstanding Sections 97.2 and 97.3 of Revenue and
Taxation Code, the county auditor-controller shall distribute the
funds that are remitted to the county Educational Revenue
Augmentation Fund by a city-operated or county-operated redevelopment
agency pursuant to this section only to a K-12 school district that
is located partially or entirely within any project area of that
redevelopment agency in an amount proportional to the average daily
attendance of each school district.
(2) The county auditor-controller shall notify each K-12 school
district, and the State Department of Education, of the amount of
Educational Revenue Augmentation Fund moneys a school district
receives pursuant to this section from each redevelopment agency. The
county auditor-controller shall also notify each K-12 school
district receiving funds pursuant to paragraph (1) of the project
area boundaries of each redevelopment agency from which the K-12
school district received funds.
(3) (A) The county superintendent of schools shall provide the
average daily attendance reported for each school district as of the
Second Principal Apportionment for the 2008-09 fiscal year to the
county auditor-controller.
(B) The county auditor-controller shall, based on information
provided by the county superintendent of schools pursuant to
subparagraph (A), allocate the funding pursuant to this subdivision
to those school districts within the county that are not excess tax
school entities, as defined in subdivision (n) of Section 95 of the
Revenue and Taxation Code.
(4) The county auditor-controller shall notify, on or before
October 1, 2009, the Department of Finance of the amount of funding
apportioned to each school district pursuant to this subdivision.
(k) (1) For the 2008-09 fiscal year, the amount apportioned by the
Superintendent of Public Instruction to each school district
pursuant to Section 42238 of the Education Code shall be reduced by
the total amount of Educational Revenue Augmentation Fund moneys a
school district receives, regardless of the actual date the funds are
received, pursuant to this section from each redevelopment agency.
(2) (A) For a fiscal year in which the amount required to be
applied by the state pursuant to Section 8 of Article XVI of the
California Constitution is determined pursuant to paragraph (2) or
(3) of subdivision (b) of that section and for the purposes of making
the computations required by Section 8 of Article XVI of the
California Constitution, "General Fund revenues appropriated for
school districts," as defined in subdivision (c) of Section 41202 of
the Education Code, for the 2008-09 fiscal year, and included within
the "total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XIII B," as defined in subdivision (e) of Section 41202 of
the Education Code, for the 2008-09 fiscal year, shall be reduced by
the total amount of Educational Revenue Augmentation Fund moneys a
school district receives, regardless of the actual date the funds are
received, pursuant to this section from each redevelopment agency.
(B) For a fiscal year in which the amount required to be applied
by the state pursuant to Section 8 of Article XVI of the California
Constitution is determined pursuant to paragraph (1) of subdivision
(b) of that section, this section shall be deemed to be "qualifying
provisions" for purposes of Section 41204.1 of the Education Code and
the Director of Finance shall recalculate the percentage determined
pursuant to paragraph (1) of subdivision (b) of Section 8 of Article
XVI of the California Constitution in a manner consistent with
Section 41204.1 of the Education Code.
(3) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the total
amount of Educational Revenue Augmentation Fund moneys a school
district receives, regardless of the actual date the funds are
received, pursuant to this section from each redevelopment agency
shall be deemed to be "allocated local proceeds of taxes," as defined
in subdivision (g) of Section 41202 of the Education Code, for the
2008-09 fiscal year.
(l) For purposes of this section, the following definitions shall
apply:
(1) "City-operated redevelopment district" means a redevelopment
agency created by the legislative body of a city.
(2) "County-operated redevelopment district" means a redevelopment
agency created by the legislative body of a county or city and
county.
(3) "K-12 school district" has the same meaning as any school
district, as defined in Section 80 of the Education Code.
(m) This section shall not be construed to increase any
allocations of excess, additional, or remaining funds that would
otherwise have been allocated to cities, counties, cities and
counties, or special districts pursuant to clause (i) of subparagraph
(B) of paragraph (4) of subdivision (d) of Section 97.2 of, clause
(i) of subparagraph (B) of paragraph (4) of subdivision (d) of
Section 97.3 of, or Article 4 (commencing with Section 98) of Chapter
6 of Part 0.5 of Division 1 of, the Revenue and Taxation Code had
this section not been enacted.
(n) The Legislature finds and declares that subdivision (j) is
added to this section in furtherance of the legislative findings and
declarations contained in subdivisions (a) and (d) of Section 33680.
SEC. 3. If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.
SEC. 4. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to address the fiscal emergency of the state at the
earliest possible time, it is necessary that this act take effect
immediately.
SECTION 1. It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2009.
