Bill Text: CA SBX124 | 2011-2012 | Regular Session | Introduced
Bill Title: Redevelopment.
Spectrum: Strong Partisan Bill (Democrat 11-1)
Status: (Introduced - Dead) 2011-09-10 - From committee without further action. [SBX124 Detail]
Download: California-2011-SBX124-Introduced.html
BILL NUMBER: SBX1 24 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Wright
(Principal coauthor: Senator Lowenthal)
(Principal coauthor: Assembly Member V. Manuel Pérez)
(Coauthors: Senators Huff and Lieu)
(Coauthors: Assembly Members Alejo, Davis, Galgiani, Mendoza,
Portantino, Solorio, and Swanson)
JUNE 28, 2011
An act to amend Section 42238 of the Education Code, and to add
Sections 33334.30, 33334.31, 33607.6, and 33607.65 to the Health and
Safety Code, relating to redevelopment, and declaring the urgency
thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 24, as introduced, Wright. Redevelopment.
(1) The Community Redevelopment Law authorizes the establishment
of redevelopment agencies in communities to address the effects of
blight, as defined, in blighted areas in those communities known as
project areas. Existing law requires redevelopment agencies in
specified years to remit to the county auditor an amount of revenue,
determined in accordance with specified calculations made by the
Director of Finance and based on a specified report of the
Controller, for deposit in the Educational Revenue Augmentation Fund
or Supplemental Educational Revenue Augmentation Fund in each county
for allocation to school entities, as prescribed.
This bill would authorize a redevelopment agency to make a
voluntary payment to local educational agencies, as defined, from
property tax revenues allocated pursuant to a specified provision of
existing law for the 2011-12 fiscal year, in an amount as prescribed.
The bill would authorize an agency electing to make the voluntary
payment to amend and extend specified redevelopment plan time
limitations, as prescribed.
The bill would also authorize certain joint powers authorities to
issue bonds, notes, or other evidence of indebtedness and loan the
net proceeds to an agency, as prescribed, for purposes of making
certain of the above-described voluntary payments to local
educational agencies, as specified. The bill would require that a
first lien be placed upon the property tax revenues allocated to the
legislative body that established the agency, which, in the event
that the agency fails to timely repay the loan, the county auditor
would be required to reallocate for the payment of any past due
amount of the agency's loan.
(2) Existing law requires the Superintendent of Public Instruction
to apportion to each school district in the county a revenue amount
each fiscal year less a sum that includes amounts received under
specified provisions of the Community Redevelopment Law.
The bill would include in the above-described sum the amount of
voluntary agency payments by the agencies to the local educational
agencies, as specified.
(3) This bill would declare that it is to take effect immediately
as an urgency statute.
(4) The California Constitution authorizes the Governor to declare
a fiscal emergency and to call the Legislature into special session
for that purpose. Governor Schwarzenegger issued a proclamation
declaring a fiscal emergency, and calling a special session for this
purpose, on December 6, 2010. Governor Brown issued a proclamation on
January 20, 2011, declaring and reaffirming that a fiscal emergency
exists and stating that his proclamation supersedes the earlier
proclamation for purposes of that constitutional provision.
This bill would state that it addresses the fiscal emergency
declared and reaffirmed by the Governor by proclamation issued on
January 20, 2011, pursuant to the California Constitution.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 42238 of the Education Code is amended to read:
42238. (a) For the 1984-85 fiscal year and each fiscal year
thereafter, the county superintendent of schools shall determine a
revenue limit for each school district in the county pursuant to this
section.
(b) The base revenue limit for a fiscal year shall be determined
by adding to the base revenue limit for the prior fiscal year the
following amounts:
(1) The inflation adjustment specified in Section 42238.1.
(2) For the 1995-96 fiscal year, the equalization adjustment
specified in Section 42238.4.
(3) For the 1996-97 fiscal year, the equalization adjustments
specified in Sections 42238.41, 42238.42, and 42238.43.
(4) For the 1985-86 fiscal year, the amount per unit of average
daily attendance received in the 1984-85 fiscal year pursuant to
Section 42238.7.
(5) For the 1985-86, 1986-87, and 1987-88 fiscal years, the amount
per unit of average daily attendance received in the prior fiscal
year pursuant to Section 42238.8.
(6) For the 2004-05 fiscal year, the equalization adjustment
specified in Section 42238.44.
(7) For the 2006-07 fiscal year, the equalization adjustment
specified in Section 42238.48.
(8) For the 2011-12 fiscal year, the equalization adjustment
specified in Section 42238.49.
(c) (1) (A) For the 2010-11 fiscal year, the Superintendent shall
compute an add-on for each school district by adding the inflation
adjustment specified in Section 42238.1 to the adjustment specified
in Section 42238.485.
(B) For the 2011-12 fiscal year and each fiscal year thereafter,
the Superintendent shall compute an add-on for each school district
by adding the inflation adjustment specified in Section 42238.1 to
the amount computed pursuant to this paragraph for the prior fiscal
year.
(2) Commencing with the 2010-11 fiscal year, the Superintendent
shall compute an add-on for each school district by dividing each
school district's fiscal year average daily attendance computed
pursuant to Section 42238.5 by the total adjustments in funding for
each district made for the 2007-08 fiscal year pursuant to Section
42238.22 as it read on January 1, 2009.
(d) The sum of the base revenue limit computed pursuant to
subdivision (b) and the add-on computed pursuant to subdivision (c)
shall be multiplied by the district average daily attendance computed
pursuant to Section 42238.5.
(e) For districts electing to compute units of average daily
attendance pursuant to paragraph (2) of subdivision (a) of Section
42238.5, the amount computed pursuant to Article 4 (commencing with
Section 42280) shall be added to the amount computed in subdivision
(c) or (d), as appropriate.
(f) For the 1984-85 fiscal year only, the county superintendent
shall reduce the total revenue limit computed in this section by the
amount of the decreased employer contributions to the Public
Employees' Retirement System resulting from enactment of Chapter 330
of the Statutes of 1982, offset by any increase in those
contributions, as of the 1983-84 fiscal year, resulting from
subsequent changes in employer contribution rates.
(g) The reduction required by subdivision (f) shall be calculated
as follows:
(1) Determine the amount of employer contributions that would have
been made in the 1983-84 fiscal year if the applicable Public
Employees' Retirement System employer contribution rate in effect
immediately prior to the enactment of Chapter 330 of the Statutes of
1982 was in effect during the 1983-84 fiscal year.
(2) Subtract from the amount determined in paragraph (1) the
greater of subparagraph (A) or (B):
(A) The amount of employer contributions that would have been made
in the 1983-84 fiscal year if the applicable Public Employees'
Retirement System employer contribution rate in effect immediately
after the enactment of Chapter 330 of the Statutes of 1982 was in
effect during the 1983-84 fiscal year.
(B) The actual amount of employer contributions made to the Public
Employees' Retirement System in the 1983-84 fiscal year.
(3) For purposes of this subdivision, employer contributions to
the Public Employees' Retirement System for either of the following
shall be excluded from the calculation specified above:
(A) Positions supported totally by federal funds that were subject
to supplanting restrictions.
(B) Positions supported, to the extent of employer contributions
not exceeding twenty-five thousand dollars ($25,000) by a single
educational agency, from a revenue source determined on the basis of
equity to be properly excludable from the provisions of this
subdivision by the Superintendent with the approval of the Director
of Finance.
(4) For accounting purposes, the reduction made by this
subdivision may be reflected as an expenditure from appropriate
sources of revenue as directed by the Superintendent.
(h) The Superintendent shall apportion to each school district the
amount determined in this section less the sum of:
(1) The district's property tax revenue received pursuant to
Chapter 3.5 (commencing with Section 75) and Chapter 6 (commencing
with Section 95) of Part 0.5 of Division 1 of the Revenue and
Taxation Code.
(2) The amount, if any, received pursuant to Part 18.5 (commencing
with Section 38101) of Division 2 of the Revenue and Taxation Code.
(3) The amount, if any, received pursuant to Chapter 3 (commencing
with Section 16140) of Part 1 of Division 4 of Title 2 of the
Government Code.
(4) Prior years' taxes and taxes on the unsecured roll.
(5) Fifty percent of the amount received pursuant to Section
41603.
(6) (A) The amount, if any, received
pursuant to the Community Redevelopment Law (Part 1 (commencing with
Section 33000) of Division 24 of the Health and Safety Code), except
for any amount received pursuant to Section 33401 or 33676 of the
Health and Safety Code that is used for land acquisition, facility
construction, reconstruction, or remodeling, or deferred maintenance,
except for any amount received pursuant to Section 33492.15 of,
paragraph (4) of subdivision (a) of Section 33607.5 of, or Section
33607.7 of, the Health and Safety Code that is allocated exclusively
for educational facilities.
(B) The amount, if any, received pursuant to Section 33607.6 of
the Health and Safety Code.
(C) The amount, if any, received pursuant to Section 33334.31 of
the Health and Safety Code.
(7) For a unified school district, other than a unified school
district that has converted all of its schools to charter status
pursuant to Section 47606, the amount of statewide average
general-purpose funding per unit of average daily attendance received
by school districts for each of four grade level ranges, as computed
by the department pursuant to Section 47633, multiplied by the
average daily attendance, in corresponding grade level ranges, of any
pupils who attend charter schools funded pursuant to Chapter 6
(commencing with Section 47630) of Part 26.8 of Division 4 for which
the district is the sponsoring local educational agency, as defined
in Section 47632, and who reside in and would otherwise have been
eligible to attend a noncharter school of the district.
(i) A transfer of pupils of grades 7 and 8 between an elementary
school district and a high school district shall not result in the
receiving district receiving a revenue limit apportionment for those
pupils that exceeds 105 percent of the statewide average revenue
limit for the type and size of the receiving school district.
SEC. 2. Section 33334.30 is added to the Health and Safety Code,
to read:
33334.30. An agency whose legislative body is described in
Section 65584.3 of the Government Code shall have satisfied all of
the requirements pertaining to the use and expenditure of, and any
required transfers or payments from, the Low and Moderate Income
Housing Fund set forth in any other provision of this part or of any
other part or any other conflicting provision of law, provided the
agency and its legislative body make the transfers provided in
subdivision (a) and in paragraph (1) of subdivision (b) of Section
65584.3 of the Government Code. The foregoing is declaratory of
existing law and shall apply notwithstanding any requirements or
limitations that may be placed on the Low and Moderate Income Housing
Fund, including, but not limited to, any required transfers or
payments to be made from the Low and Moderate Income Housing Fund
that may apply to agencies or their legislative bodies that are not
described in Section 65584.3 of the Government Code.
SEC. 3. Section 33334.31 is added to the Health and Safety Code,
to read:
33334.31. (a) For the 2011-12 fiscal year only, an agency may
make voluntary payments to local educational agencies from taxes that
are allocated to the agency pursuant to Section 33670 by adoption of
the resolution described in subdivision (b). An agency may suspend
all of its allocation to the Low and Moderate Income Housing Fund
required by this part in order to make a voluntary payment pursuant
to this section, unless executed contracts exist that would be
impaired if the agency suspended the amount allocated to the Low and
Moderate Income Housing Fund pursuant to this section. The decision
to make voluntary payments, including the decision to suspend its
required allocation pursuant to this section, is within the sole
discretion of the agency.
(b) In order to make the payments authorized by this section, an
agency shall adopt and transmit a resolution to the Director of
Finance within 60 days after the effective date of the act adding
this section. In lieu of the agency's allocation to the Low and
Moderate Income Housing Fund, the resolution shall irrevocably pledge
to local educational agencies an amount equal to, and not less than,
the amount that the agency otherwise would have been required to
deposit into its Low and Moderate Income Housing Fund for the 2011-12
fiscal year based upon a finding that payments for schools located
within the project area, attended by students residing within the
project area, or otherwise benefiting the project area, will
contribute to achieving the goals and objectives of the redevelopment
plan.
(c) The amount pledged pursuant to subdivision (b) constitutes an
indebtness of the agency and shall be allocated among the local
educational agencies in proportion to their respective percentage
share of property taxes levied for or on behalf of all local
educational agencies within the project area.
(d) An agency shall transmit the payments to local educational
agencies authorized by subdivision (b) on or before May 10, 2012. A
record of each payment shall be transmitted concurrently to the
Director of Finance and the Superintendent of Public Instruction.
(e) Local educational agencies that receive payments pursuant to
this section shall use these payments only for schools located within
the project area, schools attended by students residing in the
project area, or schools that the agency has found benefit the
redevelopment project.
(f) (1) The legislative body of an agency that makes the election
and payment authorized by this section may adopt an ordinance
amending the redevelopment plan to increase each of the following
time limitations by two years:
(A) The time limitation on the establishing of loans, advances,
and indebtedness to be paid with the proceeds of property taxes
received pursuant to Section 33670.
(B) The time limitation on the effectiveness of the redevelopment
plan.
(C) The time limitation to repay indebtedness with the proceeds of
property taxes received pursuant to Section 33670.
(2) Adoption of the ordinance shall not be subject to Section
33354.6, Article 12 (commencing with Section 33450), or any other
provision of this part relating to the amendment of redevelopment
plans.
(g) The amounts paid to local educational agencies pursuant to
this section shall not be counted as having been allocated to the
agency for the purpose of determining whether the limitation on the
number of dollars allocated to the agency as set forth in the
redevelopment plan or any agreement or court order has been reached.
(h) For the purposes of this section "local educational agencies"
means school districts, community college districts, or county
superintendents of schools that receive property tax revenues
pursuant to Article 2 (commencing with Section 96) of Chapter 6 of
Part 0.5 of Division 1 of the Revenue and Taxation Code from property
located within the project area.
(i) In adopting this section, the Legislature finds and declares
that it is not requiring a community redevelopment agency to make
payments of, or to assign a particular purpose for, taxes on ad
valorem real property and tangible personal property allocated to the
agency pursuant to Section 16 of Article XVI of the California
Constitution to or for the benefit of the state, any agency of the
state, or any jurisdiction, within the meaning of paragraph (7) of
subdivision (a) of Section 25.5 of Article XIII of the California
Constitution.
(j) This section shall not affect any other authority relating to
making voluntary payments to local educational agencies, but rather
is intended to authorize a specific method of making voluntary
payments to local educational agencies in conjunction with the
extension of the time limitations described in subdivision (f).
(k) Transfers of low- and moderate-income housing funds made
pursuant to Section 65584.3 of the Government Code shall satisfy the
requirements of this section for a voluntary suspension of the
deposit of those funds for the 2011-12 fiscal year and payment of
those amounts to the local educational agencies.
SEC. 4. Section 33607.6 is added to the Health and Safety Code, to
read:
33607.6. (a) An agency may make a voluntary payment to local
educational agencies from taxes allocated to the agency from a
redevelopment project pursuant to Section 33670 by adopting the
resolution described in subdivision (d). The decision to make the
voluntary payment pursuant to this section is within the sole
discretion of the agency. If the agency elects to make the payment
authorized by this section, the payment shall be transmitted to the
local educational agencies no later than May 10, 2012. Written
confirmation of the payment shall be transmitted concurrently to the
Director of Finance and the Superintendent of Public Instruction.
(b) The payments made pursuant to subdivision (a) shall constitute
an indebtedness of the agency and shall be divided among the local
educational agencies in proportion to their respective percentage
share of property taxes levied for or on their behalf within the
project area.
(c) Local educational agencies that receive a payment pursuant to
this section shall use the payment only for schools located within
the project area, schools attended by students residing in the
project area, or schools that the agency has found benefit the
redevelopment project.
(d) In order to make the payments authorized by this section, an
agency shall adopt a resolution and transmit it to the Director of
Finance no later than 60 days after the effective date of the act
adding this section. The resolution shall do all of the following:
(1) Irrevocably pledge an amount calculated pursuant to
subdivision (e) to local educational agencies.
(2) Include a finding that payments for schools located within the
project area, attended by students residing within the project area,
or otherwise benefiting the project area, will contribute to
achieving the goals and objectives of the redevelopment plan.
(e) The amount of the payment authorized by this section shall be
equal to either of the following, as determined by the agency:
(1) An amount equal to a specified percentage of net tax increment
received by the agency from the project area in the 2011-12 fiscal
year multiplied by 10.
(2) The estimated net proceeds of an agency bond issue or other
obligation produced by a 10-year pledge of a specified percentage of
net tax increment received by the agency from the project area in the
2011-12 fiscal year. "Net proceeds" shall mean the gross principal
amount of the bonds or other obligations less costs of issuance paid
from bond proceeds, including, but not limited to, underwriters fees
or discounts, bond counsel fees, fiscal consultant fees, reserve
funds, funded interest, and other fees and costs customarily paid
from bond proceeds.
(f) (1) The legislative body of an agency which makes a payment
pursuant to this section may adopt an ordinance amending the
applicable redevelopment plan to increase each of the following time
limits by one year for each percent of net tax increment that is
specified by the agency pursuant to paragraph (1) or (2) of
subdivision (e), not to exceed 10 years:
(A) The time limit on the establishing of loans, advances, and
indebtedness to be paid with the proceeds of property taxes received
pursuant to Section 33670.
(B) The time limit on the effectiveness of the redevelopment plan.
(C) The time limit to repay indebtedness with the proceeds of
property taxes received pursuant to Section 33670.
(2) Adoption of the ordinance shall not be subject to Section
33354.6, Article 12 (commencing with Section 33450), or any other
provision of this part relating to the amendment of redevelopment
plans.
(g) The amount paid to local educational agencies pursuant to this
section shall not be counted as having been allocated to the agency
for the purpose of determining whether the limitation on the number
of dollars allocated to the agency as set forth in the redevelopment
plan, or any agreement or court order has been reached.
(h) For the purposes of this section, both of the following terms
shall have the following meanings:
(1) "Local educational agencies" means school districts, community
college districts, or county superintendents of schools that receive
property tax revenues pursuant to Article 2 (commencing with Section
96) of Chapter 6 of Part 0.5 of Division 1 of the Revenue and
Taxation Code on property located within the project area.
(2) "Net tax increment" shall mean the annual gross tax increment
received by the agency, less payments to taxing agencies pursuant to
Section 33607.5 or 33607.7, or an agreement with a taxing agency
entered into pursuant to former Section 33401.
(i) In adopting this section, the Legislature finds and declares
that it is not requiring a community redevelopment agency to make
payments of, or to assign a particular purpose for, taxes on ad
valorem real property and tangible personal property allocated to the
agency pursuant to Section 16 of Article XVI of the California
Constitution to or for the benefit of the state, any agency of the
state or any jurisdiction, within the meaning of paragraph (7) of
subdivision (a) of Section 25.5 of Article XIII of the California
Constitution.
(j) This section shall not affect any other authority relating to
making voluntary payments to local educational agencies, but rather
is intended to authorize a specific method of making voluntary
payments to local educational agencies in conjunction with the
extension of the time limits described in subdivision (e).
SEC. 5. Section 33607.65 is added to the Health and Safety Code,
to read:
33607.65. (a) For purposes of this section, an "authorized issuer"
is limited to a joint powers entity created pursuant to Article 1
(commencing with Section 6500) of Chapter 5 of Division 7 of Title 1
of the Government Code that consists of no less than 100 local
agencies issuing bonds pursuant to the Marks-Roos Local Bond Pooling
Act of 1984 (Article 4 (commencing with Section 6584) of Chapter 5 of
Division 7 of Title 1 of the Government Code).
(b) An authorized issuer may issue bonds, notes, or other evidence
of indebtedness and loan the net proceeds to one or more agencies
for use by the agency to timely make the payment authorized by
Section 33607.6. An agency may enter into an agreement with an
authorized issuer to repay a loan used to make the payment authorized
by Section 33607.6 if the legislative body adopts a resolution that
recites that a first lien on the property tax revenues allocated to
the legislative body will be created in accordance with subdivision
(i).
(c) For the purpose of calculating the amount that has been
divided and allocated to the agency to determine whether the
limitation on the number of dollars allocated to the agency as set
forth in the redevelopment plan or any agreement or court order that
has been reached, any funds used to repay a loan entered into
pursuant to subdivision (b) shall be deducted from the amount of
property tax revenue deemed to have been received by the agency.
(d) Any loan, indebtedness, or other obligation entered into by
the agency in order to make the payment authorized by subdivision (d)
of Section 33607.6 shall not be counted toward the limit on the
amount of bonded indebtedness that can be outstanding at one time as
set forth in the agency's plan pursuant to Section 33334.1.
(e) A loan made pursuant to this section shall be repayable by the
agency from any available funds of the agency not otherwise
obligated for other uses and shall be repayable by the agency on a
basis subordinate to all existing and future obligations of the
agency.
(f) Upon making a loan to an agency pursuant to this section, the
trustee for the bonds issued to provide the funds to make the loan
shall timely pay, on behalf of the agency, to the local educational
agencies the net proceeds (after payment of costs of issuance, credit
enhancement costs, and reserves, if any) of the loan in payment in
full or in part, as directed by the agency, of the amount elected to
be paid by the agency pursuant to Section 33607.6 and shall provide
the county auditor with the repayment schedule for the loan, together
with the name of the trustee.
(g) In the event the agency shall fail to repay timely, at any
time and from time to time, the loan in accordance with the schedule
provided to the county auditor, the trustee for the bonds shall
promptly notify the county auditor of the amount of the payment on
the loan that is past due.
(h) The county auditor shall reallocate from the legislative body
and shall pay, on behalf of the agency, the past due amount from the
first available proceeds of the property tax allocation that would
otherwise be transferred to the legislative body pursuant to Chapter
6 (commencing with Section 95) of Part 0.5 of Division 1 of the
Revenue and Taxation Code. This transfer shall be deemed a
reallocation of the property tax revenue from the legislative body to
the agency for the purpose of payment of the loan, and not as a
payment by the legislative body on the loan.
(i) If the legislative body adopts a resolution pursuant to
subdivision (b), then to secure repayment of a loan to an agency made
pursuant to this section, the trustee for the bonds issued to
provide the funds to make the loan shall have a lien on the property
tax revenues allocated to the legislative body pursuant to Chapter 6
(commencing with Section 95) of Part 0.5 of Division 1 of the Revenue
and Taxation Code. This lien shall arise by operation of this
section automatically upon the making of the loan without the need
for any action on the part of any person. This lien shall be valid,
binding, perfected, and enforceable against the legislative body, its
successors, creditors, purchasers, and all others asserting rights
in those property tax revenues, irrespective of whether those persons
have notice of the lien, irrespective of the fact that the property
tax revenues subject to the lien may be commingled with other
property tax revenues, and without the need for physical delivery,
recordation, public notice, or any other act. This lien shall be a
first priority lien on these property tax revenues. This lien shall
not apply to any portion of the property taxes allocated to the
agency pursuant to Section 33670.
SEC. 6. 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 make necessary improvements and reforms to this
important local economic development tool that ensure that
redevelopment funds are used appropriately for projects which create
jobs, remove blighting conditions, generate sales tax, income tax,
and other revenues which benefit both local and state revenues, and
preserve housing funds that are needed to house elderly individuals
and working families, it is necessary that this act take effect
immediately.
SEC. 7. This act addresses the fiscal emergency declared and
reaffirmed by the Governor by proclamation on January 20, 2011,
pursuant to subdivision (f) of Section 10 of Article IV of the
California Constitution.
