BILL NUMBER: SB 1439 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 28, 2012
INTRODUCED BY Senator Huff
(Coauthor: Assembly Member Portantino)
FEBRUARY 24, 2012
An act to add Part 1.95 (commencing with Section 34198)
to Division 24 amend Section 34177 of the Health
and Safety Code, relating to redevelopment, and declaring the
urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 1439, as amended, Huff. Redevelopment: City of
Monrovia. successor agencies.
Existing law suspends various activities of redevelopment agencies
and prohibits the agencies from incurring indebtedness for a
specified period. Existing law also dissolves
dissolved redevelopment agencies and community development
agencies , as of October 1, 2011, and designates
on February 1, 2012, and provides for the designation of
successor agencies, as defined. Existing law requires that
successor entities perform certain duties, including,
among others, to continue to oversee development of properties until
the contracted work has been completed or the contractual obligation
of the former redevelopment agency can be transferred to other
parties.
This bill would exempt the Monrovia Redevelopment Agency from the
suspension and dissolution provisions and authorize the agency to
continue to exist and carry out redevelopment activities. These
provisions would become operative only if a specified provision of
law is operative. The bill would make specified findings and
declarations that the special legislation contained in the act is
necessarily applicable only to the City of Monrovia.
This bill would additionally require a successor agency to
continue to oversee the development and construction of any regional
transportation project of the former redevelopment agency.
This bill would declare that it is to take effect immediately as
an urgency statute.
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. The Legislature finds and declares all of the
following:
(a) The creation of regional transportation and jobs for
the San Gabriel Valley is of monumental importance to the San Gabriel
Valley and Los Angeles County. within the state is of
monumental importance to the state's transportation needs.
(b) The Metro Gold Line Foothill Extension Construction
Authority is charged with extending a regional transit system
eastward from Pasadena to the Ontario Airport The
state is charged with the creation of public
transportation systems necessary to alleviate ongoing and
compounding traffic congestion and to become more environmentally
friendly.
(c) The extension of the Metro Gold Line light rail from Pasadena
to Azusa is Phase 2A, and Phase 2B will extend the Metro Gold Line
from Azusa to the Ontario Airport.
(d) The extension of the Metro Gold Line Phase 2A is projected to
generate 7,000 jobs and $1 billion of economic output during
construction.
(e) The City of Monrovia and its redevelopment agency have
negotiated terms for the sale of its property to the Metro Gold Line
Foothill Extension Construction Authority for the construction of a
maintenance and operations facility, which is required for the
eastward expansion of the Metro Gold Line Phase 2A.
(f) Without a maintenance and operations facility, the Metro Gold
Line Foothill Extension Construction Authority will not receive the
necessary funding from the Metropolitan Transportation Authority
(MTA) to complete the 11.5 mile light rail extension project.
(g) Without construction of Phase 2A, from Pasadena to Azusa, it
would subsequently hinder the progress of Phase 2B from Azusa to the
Ontario Airport.
(c) The creation of public transportation systems throughout the
state will create a tremendous amount of construction activity
resulting in thousands of jobs and billions of dollars in economic
stimulus.
(d) Many successor agencies have negotiated terms for the sale and
development of property necessary to facilitate regional
transportation projects.
SEC. 2. Section 34177 of the Health and
Safety Code is amended to read:
34177. Successor agencies are required to do all of the
following:
(a) Continue to make payments due for enforceable obligations.
(1) On and after February 1, 2012, and until a Recognized
Obligation Payment Schedule becomes operative, only payments required
pursuant to an enforceable obligations payment schedule shall be
made. The initial enforceable obligation payment schedule shall be
the last schedule adopted by the redevelopment agency under Section
34169. However, payments associated with obligations excluded from
the definition of enforceable obligations by paragraph (2) of
subdivision (e) of Section 34171 shall be excluded from the
enforceable obligations payment schedule and be removed from the last
schedule adopted by the redevelopment agency under Section 34169
prior to the successor agency adopting it as its enforceable
obligations payment schedule pursuant to this subdivision. The
enforceable obligation payment schedule may be amended by the
successor agency at any public meeting and shall be subject to the
approval of the oversight board as soon as the board has sufficient
members to form a quorum.
(2) The Department of Finance and the Controller shall each have
the authority to require any documents associated with the
enforceable obligations to be provided to them in a manner of their
choosing. Any taxing entity, the department, and the Controller shall
each have standing to file a judicial action to prevent a violation
under this part and to obtain injunctive or other appropriate relief.
(3) Commencing on May 1, 2012, only those payments listed in the
Recognized Obligation Payment Schedule may be made by the successor
agency from the funds specified in the Recognized Obligation Payment
Schedule. In addition, commencing May 1, 2012, the Recognized
Obligation Payment Schedule shall supersede the Statement of
Indebtedness, which shall no longer be prepared nor have any effect
under the Community Redevelopment Law.
(4) Nothing in the act adding this part is to be construed as
preventing a successor agency, with the prior approval of the
oversight board, as described in Section 34179, from making payments
for enforceable obligations from sources other than those listed in
the Recognized Obligation Payment Schedule.
(5) From February 1, 2012, to July 1, 2012, a successor agency
shall have no authority and is hereby prohibited from accelerating
payment or making any lump-sum payments that are intended to prepay
loans unless such accelerated repayments were required prior to the
effective date of this part.
(b) Maintain reserves in the amount required by indentures, trust
indentures, or similar documents governing the issuance of
outstanding redevelopment agency bonds.
(c) Perform obligations required pursuant to any enforceable
obligation.
(d) Remit unencumbered balances of redevelopment agency funds to
the county auditor-controller for distribution to the taxing
entities, including, but not limited to, the unencumbered balance of
the Low and Moderate Income Housing Fund of a former redevelopment
agency. In making the distribution, the county auditor-controller
shall utilize the same methodology for allocation and distribution of
property tax revenues provided in Section 34188.
(e) Dispose of assets and properties of the former redevelopment
agency as directed by the oversight board; provided, however, that
the oversight board may instead direct the successor agency to
transfer ownership of certain assets pursuant to subdivision (a) of
Section 34181. The disposal is to be done expeditiously and in a
manner aimed at maximizing value. Proceeds from asset sales and
related funds that are no longer needed for approved development
projects or to otherwise wind down the affairs of the agency, each as
determined by the oversight board, shall be transferred to the
county auditor-controller for distribution as property tax proceeds
under Section 34188.
(f) Enforce all former redevelopment agency rights for the benefit
of the taxing entities, including, but not limited to, continuing to
collect loans, rents, and other revenues that were due to the
redevelopment agency.
(g) Effectuate transfer of housing functions and assets to the
appropriate entity designated pursuant to Section 34176.
(h) Expeditiously wind down the affairs of the redevelopment
agency pursuant to the provisions of this part and in accordance with
the direction of the oversight board.
(i) Continue to oversee development of properties until the
contracted work has been completed or the contractual obligations of
the former redevelopment agency can be transferred to other parties.
Bond proceeds shall be used for the purposes for which bonds were
sold unless the purposes can no longer be achieved, in which case,
the proceeds may be used to defease the bonds.
(j) Prepare a proposed administrative budget and submit it to the
oversight board for its approval. The proposed administrative budget
shall include all of the following:
(1) Estimated amounts for successor agency administrative costs
for the upcoming six-month fiscal period.
(2) Proposed sources of payment for the costs identified in
paragraph (1).
(3) Proposals for arrangements for administrative and operations
services provided by a city, county, city and county, or other
entity.
(k) Provide administrative cost estimates, from its approved
administrative budget that are to be paid from property tax revenues
deposited in the Redevelopment Property Tax Trust Fund, to the county
auditor-controller for each six-month fiscal period.
(l) (1) Before each six-month fiscal period, prepare a Recognized
Obligation Payment Schedule in accordance with the requirements of
this paragraph. For each recognized obligation, the Recognized
Obligation Payment Schedule shall identify one or more of the
following sources of payment:
(A) Low and Moderate Income Housing Fund.
(B) Bond proceeds.
(C) Reserve balances.
(D) Administrative cost allowance.
(E) The Redevelopment Property Tax Trust Fund, but only to the
extent no other funding source is available or when payment from
property tax revenues is required by an enforceable obligation or by
the provisions of this part.
(F) Other revenue sources, including rents, concessions, asset
sale proceeds, interest earnings, and any other revenues derived from
the former redevelopment agency, as approved by the oversight board
in accordance with this part.
(2) A Recognized Obligation Payment Schedule shall not be deemed
valid unless all of the following conditions have been met:
(A) A draft Recognized Obligation Payment Schedule is prepared by
the successor agency for the enforceable obligations of the former
redevelopment agency by March 1, 2012. From October 1, 2011, to July
1, 2012, the initial draft of that schedule shall project the dates
and amounts of scheduled payments for each enforceable obligation for
the remainder of the time period during which the redevelopment
agency would have been authorized to obligate property tax increment
had such a redevelopment agency not been dissolved, and shall be
reviewed and certified, as to its accuracy, by an external auditor
designated pursuant to Section 34182.
(B) The certified Recognized Obligation Payment Schedule is
submitted to and duly approved by the oversight board.
(C) A copy of the approved Recognized Obligation Payment Schedule
is submitted to the county auditor-controller and both the Controller'
s office and the Department of Finance and be posted on the successor
agency's Internet Web site.
(3) The Recognized Obligation Payment Schedule shall be forward
looking to the next six months. The first Recognized Obligation
Payment Schedule shall be submitted to the Controller's office and
the Department of Finance by April 15, 2012, for the period of
January 1, 2012, to June 30, 2012, inclusive. Former redevelopment
agency enforceable obligation payments due, and reasonable or
necessary administrative costs due or incurred, prior to January 1,
2012, shall be made from property tax revenues received in the spring
of 2011 property tax distribution, and from other revenues and
balances transferred to the successor agency.
(m) Continue to oversee the development and construction of any
regional transportation project of the former redevelopment agency.
SEC. 3. 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 ensure the fiscal integrity of the state, to protect
the health and safety of successor agencies, and to complete regional
transportation projects and improve public infrastructure in
California, it is necessary for this act to take effect immediately.
SEC. 2. Part 1.95 (commencing with Section
34198) is added to Division 24 of the Health and Safety Code, to
read:
PART 1.95. CITY OF MONROVIA REGIONAL TRANSPORTATION PROGRAM
CHAPTER 1. APPLICATION OF THIS PART
34198. Notwithstanding any other law, the Monrovia Redevelopment
Agency shall be exempt from Part 1.8 (commencing with Section 34161),
Part 1.85 (commencing with Section 34170), and any other conflicting
law.
34198.1. This part shall become operative only if Part 1.8
(commencing with Section 34161), Part 1.85 (commencing with Section
34170), or any substantially similar legislative enactments are
operative.
CHAPTER 2. CONTINUED EXISTENCE OF THE MONROVIA REDEVELOPMENT
AGENCY
34198.2. Because of the unique transportation obligations of the
Monrovia Redevelopment Agency, notwithstanding Part 1.8 (commencing
with Section 34161), Part 1.85 (commencing with Section 34170), or
any other law, the Monrovia Redevelopment Agency may continue to
exist and carry out the provisions of the Community Redevelopment Law
(Part 1 (commencing with Section 33000)).
SEC. 3. The Legislature finds and declares that
due to unique circumstances regarding regional transportation
projects in the City of Monrovia, a general statute cannot be made
applicable within the meaning of Section 16 of Article IV of the
California Constitution. Therefore, the special legislation contained
in Sections 1 and 2 of this act is necessarily applicable only to
the City of Monrovia.
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 ensure the fiscal integrity of the state, to protect
the health and safety of the community in the City of Monrovia, and
to complete a regional transportation project and improve public
infrastructure in Los Angeles County, it is necessary for this act to
take effect immediately.