Bill Text: CA SB438 | 2021-2022 | Regular Session | Introduced

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Bill Title: Redevelopment: enforceable obligations: City of Atascadero.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2021-08-26 - August 26 hearing: Held in committee and under submission. [SB438 Detail]

Download: California-2021-SB438-Introduced.html

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CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill

No. 438

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Introduced by Senator Laird
(Coauthor: Assembly Member Cunningham)

February 16, 2021

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An act to add Section 34177.9 to the Health and Safety Code, relating to community redevelopment.

LEGISLATIVE COUNSEL'S DIGEST

SB 438, as introduced, Laird. Redevelopment: enforceable obligations: City of Atascadero.

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 defines “enforceable obligation” for these purposes to include, among other things, loans of moneys borrowed by the redevelopment agency. Existing law also provides that agreements, contracts, or arrangements between the city, county, or city and county that created the redevelopment agency and the former redevelopment agency are invalid and not binding on the successor agency, and are not enforceable obligations, with certain exceptions, including for loan agreements entered into within 2 years of the formation of the redevelopment agency. Under existing law, a successor agency may enter or reenter into agreements with the city, county, or city and county that formed the redevelopment agency, subject to the approval of the oversight board, as provided.

This bill, notwithstanding the above-described provisions, would deem a loan agreement entered into between a redevelopment agency and the City of Atascadero between January 1, 1999, and January 1, 2003, inclusive, to be enforceable obligations for these purposes and provide that such a loan agreement binds the successor agency.

This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Atascadero.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 34177.9 is added to the Health and Safety Code, to read:

34177.9.

 Notwithstanding subdivision (d) of Section 34171 or Section 34178, a loan agreement entered into between a redevelopment agency and the City of Atascadero between January 1, 1999, and January 1, 2003, inclusive, shall be deemed to be an enforceable obligation for purposes of this part and shall bind the successor agency.

SEC. 2.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique fiscal circumstances in the City of Atascadero relating to loans made by the city to its former redevelopment agency.